Monday-10-August-2009-Statutory Happenings

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Online PR News – 10-August-2009 – – Case Laws-Corporate Laws -From Sc/Hc

Maintainability of a writ petition on ground of availability of alternative remedies under SEBI Act, 1992 - It cannot be laid down as a proposition of law that once a petition is admitted, it could never be dismissed on the ground of alternative remedy; therefore, the High Court can entertain the plea whether the writ is maintainable on the ground of availability of alternative remedy, even after the writ petition was admitted and rule nisi was ordered - N. Narayanam v. SEBI [WP (MD) NO. 6090 OF 2009 AND M. P. (MD) NO. 1 OF 2009]

Direct Tax Laws - From Itat

Taxability of compensation received for requisition of land and building - The compensation received for requisition of the land and building by the West Bengal State Government under the provisions of the West Bengal Land (Requisition and Acquisition) Act, 1948 does not have any element of income for tax either under the head of capital gain or other heads of the Income-tax Act, 1961 - DCIT v. Udhava Das Fomra [ITA Nos. 1107 to 1112/Mds/2008]

TDS liability on upfront fee payable under a lease/licence agreement - If the person responsible for paying or crediting an amount, which is an income in the hands of the payee, then he is required to deduct tax at source irrespective of the fact that the same may be assessable in a different assessment year as compared to the assessment year in which such entry is being made; having regard to the definition of rent given in section 194-I of the Income tax Act, 1961 upfront fee is rent on which tax is required to be deducted at source under section 194-I - TRO (TDS) v. Bharat Hotels Ltd. [ITA No. 1084 to 1087/Bang./2008]

Gratuity - It is not correct to say that provision made by assessee in accounts for purposes of making contributions to approved gratuity fund should be allowed under section 40A(7)(b)(i), despite fact that there was no incremental liability towards gratuity due for assessment year under consideration - Rajalakshmi Mills Ltd. v. Income-tax Officer - [2009] 31 SOT 353 (CHENNAI)(SB) [IT APPEAL NO. 1074 (MAD.) OF 1987]

Section 80-IB deductions - Tax incentive by way of deduction under section 80-IB(10) is predominantly for purpose of augmenting affordable dwelling units and it must be interpreted in that light - Brahma Associates v. Joint Commissioner of Income-tax (OSD) - [2009] 119 ITD 255 (PUNE)(SB) [IT APPEAL NOS. 1417 (PUNE) OF 2006 AND 5, 111, 113, 164, 165 (PUNE) OF 2007, 349, 1193 (PUNE) OF 2008, 3365 AND 4465 (MUM.) OF 2007]

From Sc/Hc

HUFs - When a person is assessed in status of an HUF, it shall be deemed to have remained as an HUF for purpose of assessment of tax under Act, unless there is a finding of partition in terms of provisions of section 171(3) in respect of properties of such HUF - Gaurikanta Barkataky v. Commissioner of Income-tax - [2009] 181 TAXMAN 316 (GAUHATI) [IT APPEAL NOS. 67 TO 70 OF 2003 AND 12 OF 2004]

Service Tax -From Cestat

Consulting engineer - Where assessee had developed a project, namely, ‘Gramdoot project’ for providing e-governance and rural governance in rural India and Under an agreement, it sold said project to ‘A’ Ltd., since agreement between assessee and ‘A’ Ltd. was for transfer of technology and not for providing any technical know-how service, demand by treating assessee as provider of consulting engineering service, was not sustainable - Aksh Optifibers Ltd. v. Commissioner of Central Excise - [2009] 21 STT 252 (NEW DELHI - CESTAT) [FINAL ORDER NO. ST/333 OF 2008 APPEAL NO. ST/72 OF 2006]

From Sc/Hc

Penalty under section 76 - Even though there is no provision under section 76 to reduce penalty, it does not mean that Appellate Court is not vested with power to reduce penalty, if discretion is not exercised by original authority judiciously - Commissioner of Central Excise v. Vishwanatha Karkera - [2009] 21 STT 213 (KAR.) [CENTRAL EXCISE APPEAL NO. 74 OF 2006]

Corporate Laws

Companies Bill, 2009 - Bill No. 59 of 2009

Direct Tax Laws

Visit For More Information-

Notification No. 26/2009[F.No. NC-274/04/2009] S.O. 763(E), dated 18-3-2009


Memorandum of Instructions governing money changing activities - A.P. (DIR Series) Circular No. 06/A.P. (FL/RL Series) Circular No. 01, dated 3-8-2009

Insurance Laws

Audit of Investment Risk Management Systems & Process, Internal/Concurrent Audit - Circular Ref No. INV/CIR/023/2009-10, dated 4-8-2009

Securities Laws

Interpretative circular under regulation 5 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997 - Applicability of provisions of regulation 11 (2) thereof, as amended on October 30, 2008 - Circular No. CFD/DCR/TO/Cir-01/2009/06/08, dated 6-8-2009


Norms for building infrastructure in the non-processing area of SEZ - Instruction No. 30, dated August, 2009