Statutes Happenings- 16-November-2009

Comprehensive information on newest indian statutes happenings including off line and on line regarding direct tax laws, securities laws,fema,service tax and other judicial rules with

Online PR News – 16-November-2009 – – Case Laws-Corporate Laws -From sc/hc

Applicability of section 5 of Limitation Act, 1963 to a company appeal - The time limit prescribed under section 10F of the Companies Act, 1956 to file an appeal from the order of the Company Law Board is absolute and unextendable by Court under section 5 of the Limitation Act - Smt. Hetal Alpesh Muchhala v. Adityesh Educational Institute [COMPANY APPLICATION NO.843 OF 2009 IN COMPANY APPEAL (L) NO.48 OF 2009 IN PETITION NO.44 OF 2007 AND PETITION NO.45 OF 2007]

Direct Tax Laws -From Itat

Larger Bench of ITAT on allowability of deduction u/s 80-IA qua projects undertaken by a civil contractor - The use of word “developing’ in juxtaposition to infrastructure facility in section 80-1A(4) indicates that what is eligible for deduction under this sub-section is the profits and gains derived from the development of infrastructure facility and not something de hors it; so in order to be eligible for deduction the development should be that of the infrastructure facility as a whole and not a particular part of it; it may be possible that some part of development work is assigned by the developer to some contractor for doing it on his behalf; that will not put the doer of such work into the shoes of a developer; therefore, a mere contractor cannot be conferred with the benefit as provided in section 80-IA - B. T. Patil & Sons Belgaum Construction Pvt. Ltd. v ACIT [ITA Nos. 1408 & 1409/PN/2003]

From sc/hc

Date from which limitation period provided u/s 154(7) of IT Act, 1961 is to be reckoned - Once an appeal against the order passed by an authority is preferred and is decided by the appellate authority, the order of the said authority merges into the order of the appellate authority; with this merger, order of the original authority ceases to exist and the order of the appellate authority prevails; the limitation for the purpose of section 154(7) is to be counted from the date of this order of CIT (A) and not the date of original order of assessment - CIT v. Tony Electronics Ltd. [ITA No. 196 of 2009]

Treatment to be given to payment of royalty to foreign collaborators for providing technical services - When the payment is not because of ‘transfer” of technology, but for providing “technical services”, the payment of royalty, which is a continuous process, should be treated as revenue expenditure - Climate Systems India Ltd. v. CIT [ITA No. 44 of 2009]

Allowability of provision for warranty charges - Since the policy and principles with respect to provisions for warranties which are made by the assessee-company is not simply an ad hoc method without any scientific basis, the assessee is entitled to make provision for the warranty charges holding the same to be definite business liability allowable as a deduction - CIT v. Ericssion Communciations Pvt. Ltd. [ITA Nos. 843, 696, 714 & 721 of 2007 & 733/2008]

Deductibility of tax at source on demurrage charges payable to a foreign shipping company - CIT v. Orient (Goa) Pvt. Ltd. [Tax Appeal No. 7/2005]

Meaning of expression ‘industrial undertakings’ for purpose of section 35D of IT Act, 1961 - Those undertakings would qualify as ‘industrial undertakings’ which are involved in ‘manufacturing activity’; the activity of construction can, by no stretch of imagination, be treated as manufacturing activity as it does not amount to manufacture or production of an article or a thing - Ansal Housing & Construction Ltd. v. CIT [ITA Nos. 1261,1278,1287 & 1402 of 2008]

Corporate Laws

Section 210A of the Companies Act, 1956 – Constitution of National Advisory Committee on Accounting Standards – Notified committee – Amendment in Notification No. S.O.1800 (E), dated 21-7-2009 - Notification No. S.O.2851(E), dated 6-11-2009

Direct Tax Laws

Section 132 of the Income-tax Act, 1961 – Search and seizure – Empowerment of authorities to - Notification No. 82/2009/F.NO.142/23/2009-SO(TPL)(Pt.), dated 11-11-2009

Securities Laws

Facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure - Circular No. SEBI /IMD/CIR No.11/183204/2009, dated 13-11-2009

SEBI (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2009 - Amendment in regulations 3,7,11 and 14 - Notification No. LAD-NRO/GN/2009-10/20/182131, dated 6-11-2009

Service Tax

Service tax exemption to manufacturers of parts of cycles or sewing machines - Notification No. 42/2009-Service Tax, dated 12-11-2009

Information regarding registration database of Service Tax assessees required for updating under ACES - Trade Notice No. 7/2009-10, dated 1-10-2009

Streamlining of work distribution in Mumbai Service Tax Commissionerate based on name of assessee - Trade Notice No. 2/2009, dated 25-9-2009

Instruction regarding judgement of Delhi High Court in respect of Service Tax on “Renting of immovable property” - Instruction (F.No 336/10/2009-TRU), dated 15-7-2009

Visit For More Information -

Taxmann Technologies (P) Ltd.
10/43 West Punjabi Bagh
New Delhi - 110026