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Wednesday, May 19, 2010

New Audit Classification Norms For Of Salary Earners And Urban Co-Op Credit Societies

DEAR MEMBERS,

 

The following updates are hosted on www.wirc-icai.org . 

 

 

  1. NEW NORMS FOR AUDIT CLASSIFICATION OF SALARY EARNERS CREDIT SOCIETIES
  2. NEW NORMS FOR AUDIT CLASSIFICATION OF URBAN CO-OP CREDIT SOCIETIES

 

 

Regards,
-------
CA.C.V.PAWAR
Member of Western India Regional Council of
Institute of Chartered Accountants of India
The Chairman,
Banking, Insurance and Pension Committee of WIRC of ICAI
0253-2319641. M-9423961209

Consolidation for Acceleration


ICAI: PARTNER IN
NATION BUILDING


For Members: To Join free sms group send sms "Join CANews1" (inverted comma is not required) from your mobile to 567678. To join an email group canews@googlegroups.com for members, send your email id (with introduction) to cvpawar@gmail.com

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Sunday, May 16, 2010

NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11


 

NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11

Form No.

Heading

Instructions

Notification

 

 

ITR-2

For Individuals and  HUFs not having Income from Business or Profession

ITR-2 - Instructions

ITR-3

For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship 

ITR-3 - Instructions

ITR-4

For individuals and HUFs having income from  a proprietory business or profession

ITR-4 - Instructions

ITR-5

For firms, AOPs and BOIs

ITR-5 - Instructions

ITR-6

For Companies other than companies claiming exemption under section 11 

ITR-6 - Instructions

ITR-7

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) 

ITR-7 - Instructions  

ITR-V

Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6  transmitted electronically without digital signature 

ITR-V – Instructions

Acknowledgment

  

  

 

 

 

 

 

Launch of e - Sahaayataa


In order to provide prompt services to the expanding base of members and students, the ICAI is launching its e-Sahaayataa service on June 1, 2010
 
The e-Sahaayataa shall act as the only e-channel for the entire base of members and students of the Institute and other stakeholders of the profession at large wherein all their queries/complaints/grievances pertaining to the day to day working shall be catered to and be resolved by ICAI within 3 - 7days from the date of entering such query/complaint/grievance. The main purpose of the e-Sahaayataa shall be to eliminate the operational bottlenecks and smoothen the flow of the education process of Chartered Accountancy.  Its primary goal shall be to provide timely services to all the stakeholders of the profession throughout the globe with a motto of zero tolerance for pendancy.
 
This is a major initiative of the ICAI wherein the complete history of the query/complaint/grievance from the date of entering it into the system till the date of resolving it shall be available for future reference. In the e-Sahaayataa service, the user has an option of reopening the query/complaint/grievance in case of dissatisfaction from the service provided.
 
I would like toconvey my compliments to CA. Sanjay K. Agarwal, Central Council Member under whose able & dynamic Co-ordinatorship the Institute shall be able to serve the members, students & other stakeholders of the profession with e-Sahaayataa. I must appreciate him for the conceptualization & execution of the project e-Sahaayataa.    
 
The demo version of the e-Sahaayataa has been uploaded on the ICAIs website (http://www.icai.org/help/) till May 20, 2010 for your valuable inputs and suggestions for improvement. You may pen down your inputs at esahaayata@icai.org. After incorporating such inputs and suggestions, the e- Sahaayataa shall be officially launched and be fully ope! rational on June 1, 2010. 

 
Thanking You,
 
CA. Amarjit Chopra
President, ICAI

Tuesday, May 11, 2010

NEWS, INFORMATION...

FINANCE BILL, 2010 BECOMES AN ACT

The Finance Bill, 2010 was earlier passed by the Lok Sabha followed by its
passage by the Rajya Sabha. The Finance Bill, 2010 has been assented to by
the Hon'ble President on 8-5-2010 as Act No. 14 of 2010. With this, the
Budgetary exercise is over for the F.Y. 2010-2011

Highlight of Amendment to Finance Bill 2010

Æ Service tax relief to construction sector: Abatement hiked from 67% to
75% + exemption granted to travel by air from North-Eastern sector +
exemption to modular skill development bodies under 'vocational institute'
service

Æ FM reduces excise duty on hand-rolled cheroot (bidis) + excise duty
exemption given to paper and paper board materials + excise duty on waste
paper reduced to 4% + MRP scheme extended to excavators, rollers and tunnel
boring machines + BCD reduced to 5% for 11 basic drugs and exempt them from
excise duty

Æ Conversion into LLP: Transfer of shares exempted from capital gains tax

Æ FM says he has written letters to 65 countries for amendment in DTAAs for
exchange of tax information; Switzerland, Bahamas and Bermuda agreed to do
needful

Æ FM hikes export duty on raw cotton from Rs 2500 to Rs 10,000 per tonne

Æ FM extends Sec 35AD benefits to hospitals of at least 100 beds anywhere
in India and housing scheme for slum re-development

Æ Budget passage is preponed; FM moves amendments; Lok Sabha all set to
vote this evening

Insurance Premium paid by partnership firm on Keyman Insurance Policy is
allowed as expenditure of the firm: Bombay HC


MUMBAI, APR 23, 2010: CIT(A) allowing the Insurance Premium paid on Keyman
Insurance Policy as expenditure. The ITAT had held that the expenditure
incurred by the assessee, who is a partnership firm, in paying the premium
for a Keyman Insurance Policy obtained by the firm on the life of its
partner must be regarded as expenditure incurred wholly and exclusively for
the business of the firm.


Keyman Insurance Policy". The Explanation to Clause 10D defines what is
meant by a Keyman Insurance Policy thus :


Keyman Insurance Policy" means a life insurance policy taken by a person on
the life of another person who is or was the employee of the first mentioned
person or is or was connected in any manner whatsoever with the business of
the first mentioned person."


Keyman Insurance Policy forms a part of the total income and is liable to be
offered to tax. For the purposes of Clause 10D , a Keyman Insurance Policy
is a life insurance policy taken by a person on the life of another person
who is or was the employee of the person who subscribes to the policy of
insurance or is or was connected in any manner whatsoever with the business
of the subscriber to the policy. In other words, a Keyman Insurance Policy
for Clause 10D is not confined to a policy taken by a person on the life of
an employee, but also extends to an insurance policy taken with respect to
the life of another who is connected in any manner whatsoever with the
business of the subscriber.


Keyman Insurance Policy is allowable as business expenditure.


Keyman Insurance Policy is to protect the business against a financial
setback which may occur, as a result of a premature death, to the business
or professional organization. There is no rational basis to confine the
allowability of the expenditure incurred on the premium paid towards such a
policy only to a situation where the policy is in respect of the life of an
employee. A Keyman Insurance Policy is obtained on the life of a partner to
safeguard the firm against a disruption of the business that may result due
to the premature death of a partner. Therefore, the expenditure which is
laid out for the payment of premium on such a policy is incurred wholly and
exclusively for the purposes of business.

High Powered Committee Set up by The ICAI

Apr 30, 2010 ICAI

The Government has informed the Parliament that the Institute of Chartered
Accountants of India (ICAI) in terms of Section 17(2) of the Chartered
Accountants Act, 1949 constituted a fact finding Committee called High
Powered Committee to look into the entire gamut of financial reporting,
accounting, auditing aspects with regard to Satyam fiasco and suggest
changes wherever required for the purpose of making appropriate
recommendations to Government, SEBI and other regulators. Giving this
information in reply to a question in the Lok Sabha, the Minsiter for
Corporate Affairs, Shri Salman Khurshid told the House that the fact finding
process is on.

Shri Khurshid also informed that ICAI has sought following details from
around 150 firms of Chartered Accountants registered with it on the
following:

i. Agreement/contract with the multinational entity.

ii. Terms and conditions for usage of name of multinational entity.

iii. Arrangement for sharing of fees/profit with other Indian CA firms with
similar/identical name and with the multinational entity.

iv. Arrangement for sharing of human resources and infrastructure with other
Indian CA firms with similar/identical name and with the multinational
entity.

v. Details of remittances made to and received from the multinational
entity.

vi. Copy of Partnership deed of the CA firms registered with ICAI with
similar/identical name, as in vogue in the last five years.

vii. Income-tax assessment orders for the last 3 years in respect of the CA
firms registered with ICAI with similar/identical name. If assessment orders
have not been received, then to submit computation of income and copies of
returns.

viii. Copies of letterheads and visiting cards generally used.

At present, the aforementioned details are not available on the database of
the ICAI, since these have not been called for in the past. These details
have now been called for as the Committee has felt that the same would
enable it to reach an appropriate conclusion.


CA.RAJU SHAH

Sunday, May 9, 2010

ITR (TRIB) VOL 3 : PART 2

ITR'S TRIBUNAL TAX REPORTS (ITR (TRIB))

Volume 3 : Part 2 (Issue dated : 10-5-2010)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

Advance tax --Interest payable by assessee--Assessee under bona fide belief that income not chargeable to tax in India--Interest cannot be levied under section 234B--Income-tax Act, 1961, s. 234B-- Royal Jordanian Airlines v. Deputy Director of Income-tax, International Taxation (Delhi) . . . 181

Business expenditure --Disallowance--Administrative expenses--Disallowance based on comparison with other assessment years--Not valid method of addition--Deletion justified--Income-tax Act, 1961-- Susee Auto Plaza P. Ltd. v. Addl. CIT (Chennai) . . . 166

Donations to charitable institution --Special deduction--Approval of institution--Renewal--Trust established for carrying out medical and educational charitable activities but constructing building and letting it out to educational institution for carrying out its educational activities--Not part of charitable activity--Denial of renewal justified--Income-tax Act, 1961, ss. 12A, 80G-- D. R. Ranka Charitable Trust v. Director of Income-tax (Exemptions) (Bangalore) . . . 151

Penalty --Acceptance or repayment of deposits exceeding prescribed limit otherwise than by account payee cheque--Finance company--Deposits at doorstep of customers--No bank account of depositor--No banking facility in village where depositors reside--Amounts collected on a bank holiday from depositors--Deposits received after banking hours--Explanation given "reasonable cause"--Period of three years from date of starting up of business would be reasonable period for business exigencies--Income-tax Act, 1961, ss. 271D, 271E, 273B-- CIT (Deputy) v. Emeskay Financial Services Ltd. (Visakhapatnam) . . . 134

Presumptive taxation --Non-resident--Business of operating aircraft--Special provision for computing income under section 44BBA--Scope of section 44BBA--Section 44BBA is a machinery provision--Assessee incurring loss--No income can be computed under section 44BBA--Income-tax Act, 1961, s. 44BBA-- Royal Jordanian Airlines v. Deputy Director of Income-tax, International Taxation (Delhi) . . . 181

Reassessment --Notice--Notice after four years--Reassessment on basis of facts already on record--No failure to disclose material facts--Reassessment invalid--Income-tax Act, 1961, ss. 147, 148-- CIT (Asst.) v. Praveen Industries Pvt. Ltd. (Delhi) . . . 154

Search and seizure --Assessment--Sale of two-wheelers by assessee-company--Allegation of excess collection of amount towards registration of vehicles--Materials relating to sale of four wheelers belonging to group company found--Assessment based on presumption not permissible--Books of account of assessee neither rejected nor found defective--No evidence relatable directly with assessee's case found--Addition to be deleted--Income-tax Act, 1961, ss. 132, 143(3), 153C-- Susee Auto Plaza P. Ltd. v. Addl. CIT (Chennai) . . . 166

----Block assessment--Block assessment of third person--Condition precedent --Assessing Officer of searched person should record his satisfaction that undisclosed income found during search belonged to such person--No satisfaction recorded--Block assessment invalid--Income-tax Act, 1961, s. 158BD-- CIT (Deputy) v. Flair Builders P. Ltd . (Delhi) . . . 158

Unexplained expenditure --Burden of proof of actual expenditure on Department--Addition on account of lower expenses in new unit compared with old unit--Addition based on hypothetical computation and not on any evidence to show that assessee has incurred expenses in new unit which are not accounted--Not sustainable--Income-tax Act, 1961, s. 69C-- CIT (Asst.) v. Shahzad Lookman Qadir (Mumbai) . . . 177

Words and phrases --"Satisfaction"-- CIT (Deputy) v. Flair Builders P. Ltd. (Delhi) . . . 158

 

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Income-tax Act, 1961:

S. 12A --Donations to charitable institution--Special deduction--Approval of institution--Renewal--Trust established for carrying out medical and educational charitable activities but constructing building and letting it out to educational institution for carrying out its educational activities--Not part of charitable activity--Denial of renewal justified-- D. R. Ranka Charitable Trust v. Director of Income-tax (Exemptions) (Bangalore) . . . 151

S. 44BBA --Presumptive taxation--Non-resident--Business of operating aircraft--Special provision for computing income under section 44BBA--Scope of section 44BBA--Section 44BBA is a machinery provision--Assessee incurring loss--No income can be computed under section 44BBA-- Royal Jordanian Airlines v. Deputy Director of Income-tax, International Taxation (Delhi) . . . 181

S. 69C --Unexplained expenditure--Burden of proof of actual expenditure on Department--Addition on account of lower expenses in new unit compared with old unit--Addition based on hypothetical computation and not on any evidence to show that assessee has incurred expenses in new unit which are not accounted--Not sustainable-- CIT (Asst.) v. Shahzad Lookman Qadir (Mumbai) . . . 177

S. 80G --Donations to charitable institution--Special deduction--Approval of institution--Renewal--Trust established for carrying out medical and educational charitable activities but constructing building and letting it out to educational institution for carrying out its educational activities--Not part of charitable activity--Denial of renewal justified-- D. R. Ranka Charitable Trust v. Director of Income-tax (Exemptions) (Bangalore) . . . 151

S. 132 --Search and seizure--Assessment--Sale of two-wheelers by assessee-company--Allegation of excess collection of amount towards registration of vehicles--Materials relating to sale of four wheelers belonging to group company found--Assessment based on presumption not permissible--Books of account of assessee neither rejected nor found defective--No evidence relatable directly with assessee's case found--Addition to be deleted-- Susee Auto Plaza P. Ltd. v. Addl. CIT (Chennai) . . . 166

S. 143(3) --Search and seizure--Assessment--Sale of two-wheelers by assessee-company--Allegation of excess collection of amount towards registration of vehicles--Materials relating to sale of four wheelers belonging to group company found--Assessment based on presumption not permissible--Books of account of assessee neither rejected nor found defective--No evidence relatable directly with assessee's case found--Addition to be deleted-- Susee Auto Plaza P. Ltd. v. Addl. CIT (Chennai) . . . 166

S. 147 --Reassessment--Notice--Notice after four years--Reassessment on basis of facts already on record--No failure to disclose material facts--Reassessment invalid-- CIT (Asst.) v. Praveen Industries Pvt. Ltd. (Delhi) . . . 154

S. 148 --Reassessment--Notice--Notice after four years--Reassessment on basis of facts already on record--No failure to disclose material facts--Reassessment invalid-- CIT (Asst.) v. Praveen Industries Pvt. Ltd. (Delhi) . . . 154

S. 153C --Search and seizure--Assessment--Sale of two-wheelers by assessee-company--Allegation of excess collection of amount towards registration of vehicles--Materials relating to sale of four wheelers belonging to group company found--Assessment based on presumption not permissible--Books of account of assessee neither rejected nor found defective--No evidence relatable directly with assessee's case found--Addition to be deleted-- Susee Auto Plaza P. Ltd. v. Addl. CIT (Chennai) . . . 166

S. 158BD --Search and seizure--Block assessment--Block assessment of third person--Condition precedent--Assessing Officer of searched person should record his satisfaction that undisclosed income found during search belonged to such person--No satisfaction recorded--Block assessment invalid-- CIT (Deputy) v. Flair Builders P. Ltd . (Delhi) . . . 158

S. 234B --Advance tax--Interest payable by assessee--Assessee under bona fide belief that income not chargeable to tax in India--Interest cannot be levied under section 234B-- Royal Jordanian Airlines v. Deputy Director of Income-tax, International Taxation (Delhi) . . . 181

S. 271D --Penalty--Acceptance or repayment of deposits exceeding prescribed limit otherwise than by account payee cheque--Finance company--Deposits at doorstep of customers--No bank account of depositor--No banking facility in village where depositors reside--Amounts collected on a bank holiday from depositors--Deposits received after banking hours--Explanation given "reasonable cause"--Period of three years from date of starting up of business would be reasonable period for business exigencies-- CIT (Deputy) v. Emeskay Financial Services Ltd. (Visakhapatnam) . . . 134

S. 271E --Penalty--Acceptance or repayment of deposits exceeding prescribed limit otherwise than by account payee cheque--Finance company--Deposits at doorstep of customers--No bank account of depositor--No banking facility in village where depositors reside--Amounts collected on a bank holiday from depositors--Deposits received after banking hours--Explanation given "reasonable cause"--Period of three years from date of starting up of business would be reasonable period for business exigencies-- CIT (Deputy) v. Emeskay Financial Services Ltd. (Visakhapatnam) . . . 134

S. 273B --Penalty--Acceptance or repayment of deposits exceeding prescribed limit otherwise than by account payee cheque--Finance company--Deposits at doorstep of customers--No bank account of depositor--No banking facility in village where depositors reside--Amounts collected on a bank holiday from depositors--Deposits received after banking hours--Explanation given "reasonable cause"--Period of three years from date of starting up of business would be reasonable period for business exigencies-- CIT (Deputy) v. Emeskay Financial Services Ltd. (Visakhapatnam) . . . 134

-CA.RAJU SHAH

.

__,_._,___

Monday, May 3, 2010

Multipurpose Empanelment Form for the year 2010-11

DEAR MEMBERS,

 

The MEF form for year 2010-11 is hoisted on www.meficai.org . 

 

Last date for submission of applications on the website www.meficai.org is 15th June, 2010.(5.30 P.M.)

 

 

 

Regards,
-------
CA.C.V.PAWAR
Member of Western India Regional Council of
Institute of Chartered Accountants of India
The Chairman,
Banking, Insurance and Pension Committee of WIRC of ICAI
0253-2319641. M-9423961209

Consolidation for Acceleration


ICAI: PARTNER IN
NATION BUILDING

For Members: To Join free sms group send sms "Join CANews1" (inverted comma is not required) from your mobile to 567678. To join an email group canews@googlegroups.com for members, send your email id (with introduction) to cvpawar@gmail.com

For Students: To join free CA Students sms group , send sms "Join CAStudent1" from your mobile to 567678.
To join an email group castudentnews@googlegroups.com for CA Students, send your email id to cvpawar@gmail.com

For latest Updates visit Blogspot : http://canews1.blogspot.com