N K GOEL AND BROS.

COST INFLATION INDEX FOR FY 2013-14 The cost inflation index for the financial year 2013-14 has been notified by notification no. 40 dated 6th of June 2013 at 939 .  What is Cost Inflation Index (CII) It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75 per cent of average rise in the consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year.Therefore, if we consider that price of a capital asset has risen in tandem with base price rise, then if one want to sell an asset and replace it, the cost allowed even after indexation will be lesser than the price payable for new asset. However, in case of many capital asset the price rise is lesser than market price and in many cases it is higher. How does CII help in capital gains...

Effective date 01/06/2013 What to do Deduct tax @1% When While making payment of consideration to seller of property Which Property An immovable property the total consideration for which exceeds Rs.50,00,000/- (Rupees Fifty Lakhs) Exemption No TDS while dealing in RURAL Agricultural Land Person Selling prop. Must be a Resident Person Purchasing Can be any person PROCEDURE TO BE FOLLOWED Compliance of Rule/ Section Procedure Sec 194 I A At the time of payment (full or part payment) ,or crediting the amount to the account of seller whichever is earlier deduct tax @ 1% Rule 30 (2A) Rule 30 (6A) Rule 31A (4A) ·          Person purchasing property ·          To pay TDS,  within seven days from ·    ...

CIT vs. Kichha Sugar Company Ltd (Uttarakhand High Court) “ Due date ” in s. 36(1)(va) for payment of employees’ Provident Fund, ESIC etc contribution should be read with s. 43B(b) to mean “ due date ” for filing ROI The assessee collected employees’ Provident Fund contribution for payment to the provident fund authorities. However, the amount was not paid to the provident fund authorities within the “ due date ” specified in the Provident Fund Act though it was paid before the due date of filing the return of income. The AO assessed the amounts received as income u/s 2(24)(x) but refused to allow a deduction u/s 36(1)(va) on the ground that the amounts were not paid within the prescribed “ due date “. The CIT(A) and Tribunal allowed the assessee’s claim for deduction u/s 43B(b). The Department filed an appeal in the High Court claiming that s. 43B did not apply to employees’ contribution. HELD by the High Court dismissing the appeal:        ...

Crystal Phosphates Ltd vs. ACIT (ITAT Delhi) S. 143(3) assessment void if case picked up contrary to CBDT’s Scrutiny Guidelines  For AY 2006-07, the assessee filed a ROI declaring income of Rs. 3.97 crore. ·          The case was selected for scrutiny under clause 2(v)(b) of the Scrutiny Guidelines issued by the CBDT. ·          The said clause of the Scrutiny Guidelines provided that a case had to be selected for compulsory scrutiny if an addition/ disallowance of Rs. 5 lacs or more was pending in appeal before the CIT(A) and such identical issue also originated in the year under consideration. The assessee claimed that as this condition stipulated in the Scrutiny Guidelines was not satisfied, the AO had no jurisdiction to select the case for scrutiny . The AO & CIT(A) rejected the claim . On appeal by the assessee to the Tribunal, HELD allowing the appeal : The CBDT’s instructions ...

Kunal Surana vs. ITO (ITAT Mumbai) Requirements of a valid affidavit in support of delay condonation application set out The assessee filed an appeal before the CIT(A) which was delayed by 4 months. The delay was explained to have been caused by the fact that the assistant of the Authorized Representative kept the papers in a drawer and overlooked them till a penalty notice was received. The CIT(A) declined to condone the delay and dismissed the appeal. The assessee filed an appeal before the Tribunal and also filed an affidavit of the Authorized Representative in support of the application for condonation of delay. HELD by the Tribunal dismissing the application and the appeal: The affidavit produced by the AR is not a valid affidavit because 1.   there is no verification appended on it and 2.   there is no mention as to which of the paras are true to the knowledge of the deponent and 3.   which of the paras of the affidavit are true to his belief. 4....

Background :  The Finance Act, 2013 has provided “Amnesty Scheme for Non Filers and Stop Filers”. Purpose of this scheme  :-To encourage voluntary compliance and broaden the taxbase.  Section 94 to 104 of Chapter VI of Finance Act, 2013 provides legal backing to this Amnesty Scheme. Chapter VI of Finance Act, 2013 1. Section 94 Short title 2. Section 95 Definitions 3. Section 96 Person who may make declaration of tax dues 4. Section 97 Procedure for making declaration and payment of tax dues 5. Section 98 Immunity from penalty, interest and other proceeding. 6. Section 99 No refund of amount paid under the Scheme 7. Section 100 Tax dues declared but not paid 8. Section 101 Failure to make true declaration 9. Section 102 Power to remove difficulties 10. Section 103 Power to remove difficulties 11. Section 104 Power to make rules Notification no. 10/2013; dated 13.05.2013  The above notification brings into action the proposed Amnesty Scheme...