Wednesday, September 4, 2013

Municipal Administration Department - Guwahati Assam - Empanelment



Last Date : 20/09/2013

Expression of Interest for for Selection of Chartered Accountants firms for the Statutory Audit of

Accounts of Swarna Jayanti Sahari Rojgar Yojana (SJSRY), for the Financial year 2012-13

Address: Municipal Administration Department - Guwahati Assam



State Aids Control Society - Chandigarh Punjab - Empanelment


Last Date : 20/09/2013

Call for Expressions of Interest: Chartered Accountant Firms for the Internal Audit of NGOs & Peripheral Units under Chandigarh State AIDS Control Societies

Address: Project Director, Chandigarh State AIDS Control Society, International Hostel, Madhya Marg, Near PGI, Sector 15 A, Chandigarh,

Phone: 0172-2544589



Central Cottage Industries Corporation of India Ltd. - Empanelment


Last Date : 21/09/2013

Maintenance of Accounts department at its branch office Chennai from eligible Firms of Chartered Accountants

Address: Shri.M.Anantharaj, Addl.Gen.Manager Central Cottage Industries Corporation of India Ltd., 672 Anna Salai, Nandanam, Temple Tower, Chennai – 600 035.


Uttarakhand Cooperative Dairy Federation - Empanelment


Last Date : 21/09/2013

1. Construction of Cement Concrete Road, building, 2. Empanelment of chartered accountant for UCDF & Milk Union. 3. Empanelment of Architect for drawing & design of building. 4. Empanelment of Agencies for advertisement & Art work design.


Address: Uttarakhand Cooperative Dairy Federation Haldwani Uttaranchal

S. 37(1) – ESOP


Accounting principles have absolutely no role to play in the matter of determination of total income under the Act. If an accounting principle is referred to by the higher judiciary, then there is an underlying presumption that such accounting principle is in conformity with and not in conflict with the taxation principle. The essence of the matter is that taxation principles are to be followed. If an accounting principle is in conformity with the mandate of taxing principle and reference is made to such accounting principle while deciding the issue, it does not mean that the accounting principle has been followed. It simply means that the taxation principle has been followed and the accounting principle, which is in line with such taxation principle, has been simply taken note of. If however, an accounting principle runs counter to the taxation principle, then there is no prize for guessing that it is only the taxation principle which shall prevail.

The discount under ESOP is in the nature of employees cost and is hence deductible during the vesting period w.r.t. the market price of shares at the time of grant of options to the employees. The amount of discount claimed as deduction during the vesting period is required to be reversed in relation to the unvesting/lapsing options at the appropriate time. However, an adjustment to the income is called for at the time of exercise of option by the amount of difference in the amount of discount calculated with reference the market price at the time of grant of option and the market price at the time of exercise of option. No accounting principle can be determinative in the matter of computation of total income under the Act.


Biocon Ltd. v. DCIT [2013] 35 taxmann.com 335 (Bangalore - Trib.) (SB)

S. 271(1)(c) – laws on levy penalty explained



In the case of initiation of penalty proceedingsduring the course of appeal or revision proceedings, theauthority who has to be satisfied is the authority in whoseproceedings the issue is examined and not any otherauthority. The levy of penalty has also to be done by thesame officer. It is only when the authority is satisfied thatnon-disclosure of income or furnishing inaccurateparticulars was with the intention of evading tax, then itamount to concealment, it amounts to furnishing inaccurateparticulars. Then, at his discretion, he may impose penaltyas provided under the Act.

If the Assessing Officer has not recorded any satisfaction or has not issued any direction to initiate penalty proceedings, in appeal, if the appellate authority records satisfaction, then the penalty proceedings have to be initiated by the appellate authority and not the Assessing Authority.

Merely because theassessee accepted addition or deletion and did not challengethe assessment order by way of appeal, it cannot beconcluded that such addition or deletion amounts to concealment of income or furnishing of inaccurateparticulars. When a plea is taken that in order to avoidlitigation and purchase peace, the tax levied is paid withinterest, if the assessee is able to demonstrate his bona fidesand if the authority is satisfied about his bonafides, then thequestion of imposing penalty would not arise. Similarly, incases where though the tax was not actually due but still theassessee pays tax with a hope of claiming deductions in thesubsequent years, if the assessee is able to demonstratethere was no liability to pay tax at all, merely if assesseepays tax and he does not challenge order, that would notconstitute concealment of income so as to enable theauthorities to impose penalty.

Notice under Section 274 of the Act should specifically state the grounds mentioned in Section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of incorrect particulars of income. The standard proforma without striking of the relevant clauses will lead to an inference as tonon-application of mind.
The assessee should know the grounds which he has to meet specifically. Otherwise, principles of natural justice is offended. On the basis of such proceedings, no penalty could be imposed to the assessee.Taking up of penalty proceedings on one limb and finding the assessee guilty of another limb is bad in law


CIT v. Manjunatha Cotton and Ginning Factory ITA No.2564 of 2005, 2565 of 2005, 5020 of 2009, 5022 of 2009, 5023 of 2009, 5025 of 2009 & 5026 of 2009 (Karnataka High Court) order dated 13-12-2012.

Finmin working on bankruptcy law to fast-track recast of firms


A separate bankruptcy law may be on the cards. Finance minister P Chidambaram has recently flagged this idea to the chiefs of public sector banks, official sources said. The government reckons that a separate bankruptcy law/code and efficient bankruptcy courts would help fast-track restructuring/winding up of indebted companies and prevent deterioration of their assets. Replicating legislation and best-practices in countries like the US is what is aimed at. The Companies Bill, 2013, passed by Parliament recently, deals only with matters involving the formation of a company, its management, accounts and finance, corporate governance, investor protection and accountability issues, apart from matters related to insolvency. There are also a host of other laws, including SICA and Sarfaesi, which are relevant in this context.


Source : Financial Express

S. 2(15) – Charitable purpose is not affected on levy of fees


The ICAI does not carry on any business, trade or commerce. The activity of imparting education in the field of accountancy and conducting courses both at pre-qualification as well as post-qualification level are activities in furtherance of the objects for which the petitioner has been constituted. Activities of providing coaching classes or undertaking campus placement interviews for a fee are in relation to the main object of the petitioner which as stated earlier cannot be held to be trade, business or commerce. Accordingly, even though fees are charged by the petitioner institute for providing coaching classes and for holding interviews with respect to campus placement, the said activities cannot be stated to be rendering service in relation to any trade, commerce or business as such activities are undertaken by the petitioner institute in furtherance of its main object which as held earlier are not trade, commerce or business. It further held that ICAI providing funds to ICAI Accounting Research Foundation would not violate Section 13 of the Act


 Institute of Chartered Accountants of India v. DIT(E) [2013] 35 taxmann.com 140 (Delhi)

Need to tweak the law to ensure RBI autonomy: IMF


Backing the central bank’s case for autonomy, the International Monetary Fund said it would be beneficial to remove certain provisions in the existing laws to ensure independence of the Reserve Bank of India.In its financial sector assessment programme for the country, the Fund pointed out that the independence of the RBI is not enshrined in the law and there are some legal provisions that could seriously undermine its independence from the Government.“Legal provisions in the Banking Regulation Law and the Reserve Bank of India Act allow the Central Government to give directions to the RBI, to require it to perform inspections, to overrule decisions and to supersede the RBI Board.


Source: The Hindu Business Line
Related Posts Plugin for WordPress, Blogger...

Farm House Plots for Sale


11000 Sq.ft. developed / under development farm house plots for Sale at Morgaon (Supa) near Morgaon Ganesh Temple only for Rs.15 Lacs.... Contact; Atul Karnawat on 9823479955 or Saideep Bagrecha on 7757888883 / 9823979955