OECD releases outcome of
"Fast-Track review process" to assess transparency standards of
countries in the run-up to the G20 Summit scheduled on July 7-8; OECD
states that "The latest results of the Fast Track review show that
progress has now been made by most jurisdictions in meeting the
international tax transparency standards"; Only one jurisdiction,
Trinidad and Tobago, rated as “Non-Compliant” against the Exchange of
Information on Request (EOIR) standard, while six jurisdictions viz.
Anguilla, CuraƧao, Indonesia, Marshall Islands, Sint Maarten, and Turkey
have been rated as “Partially Compliant”; OECD Release says "In the
last 15 months, the significant changes made by jurisdictions towards
meeting the EOIR standard have led to upgrades in the overall ratings of
17 jurisdictions..."; Panama and the United Arab Emirates have
received upgraded rating of 'Largely Compliant'; OECD clarifies that the
outcome of the "fast-track review" is a provisional rating and
the jurisdictions which have received improved provisional ratings will
undergo a full peer review under the second round of reviews; India has
been rated as "compliant" while countries like Singapore,
Mauritius, Cyprus, Liechtenstein, Luxembourg have been rated as
"Largely Compliant" in the first round of Global Forum reviews;
NGO Tax Justice Network sharply criticises the OECD announcement as undermining
the progress that has been achieved over the last few years, terms it
" disheartening to see the OECD fall back into the old pattern of
creating ‘tax haven’ blacklists on the basis of criteria that are so weak as to
be near enough meaningless..."
Thursday 29 June 2017
Sunday 25 June 2017
Comparable sales instances of commercial properties is no deciding factor in determining valuation of residential flat: HC
THE ISSUE BEFORE THE COURT IS - Whether comparable sales instances of commercial properties can be a deciding factor in determining valuation of a residential flat. NO is the verdict.
Facts of the case:
The Revenue preferred the present appeal challenging the order, whereby the ITAT had deleted the addition made by AO u/s 69B of I-T Act, of Rs.1,06,18,870/- ignoring the comparable prevailing rates of the properties of the same locality and the valuation report of the said property obtained from the DVO as per Section 55A.
On appeal, the HC held that,
++ it has been observed by the Tribunal that the comparable sales instances produced on record are of commercial properties and the property in question is a residential flat. The explanation given by the assessee has been considered by the Tribunal. The assessee has given explanation that after 1981, the said property was lying vacant, the property was ill-reputed inasmuch as the Municipal Corporation had issued notice u/s 52 of the MRTP Act for illegal possession. The agreement of sale is also produced on record. The initial burden is upon the Revenue. The explanation given by the assessee is required to be considered objectively. Considering the explanation given by the assessee, the Tribunal has arrived at a reasonable and plausible conclusion
Saturday 17 June 2017
HC : Sandvik ratio applicable only to CBDT's 'wanton' delay, not for delayed refund claim
Meghalaya HC allows Sec.
244A interest on TDS refund to assessee-deductee (a co-operative bank)
for AYs 2000-01 to 2003-04, but rejects ‘interest on interest’ claim; With
respect to TDS on assessee’s interest income wrongly deducted by certain
Central, State organisations (despite being exempt u/s. 80P), assessee made TDS
refund claim with interest before CBDT u/s. 119(2)(b) which was rejected; HC
allows assessee’s interest on refund claim u/s. 244A relying on SC ruling
in Tata Chemicals Ltd. and P&H HC ruling in National Horticulture Board,
but holds that in view of Sec. 244A(2), interest be allowed from the date
of making petition to CBDT and not before; Referring to factual matrix, HC
holds that “the delay in claiming refund, from the date it should have been
claimed for the relevant AYs and until 26.02.2008 (i.e date of filing petition
before CBDT) for each of the four AYs, is squarely attributable to the
petitioners alone”; HC further rejects assessee’s compensation
claim in the form of 'interest on interest', distinguishes its reliance on SC
ruling in Sandvik Asia Ltd., notes that assessee therein was made to wait for
refund of interest for decades and was hence greatly prejudiced for inordinate
delay on the part of the Revenue; Notes that in present case, the initial
long delay (prior to making application before CBDT) was attributable to the
petitioners themselves, further observes that " the question is as to
whether the present one had been a case of wanton or intentional inaction on
the part of the respondents to the extent that further compensation in the form
of interest over interest be allowed? In our view, the answer is in the
negative."; With respect to assessee’s TDS refund claim, HC
allows the same despite non-verification from concerned deductors relying on
Allahabad HC ruling in Rakesh Kumar Gupta , takes note of the TDS certificates
submitted by assessee.:HC
Saturday 3 June 2017
Deduction of Interest expense under income tax.
Deduction of expenses incurred for
earning business income is spelt out in the Sections 30 to 36 of Income Tax
Act, 1961. Under Section 36 of Income Tax Act, 1961, there are number of
deductions available subject to the conditions laid down. In this discussion,
we would take up Section 36(1)(iii) of the Income Tax Act, 1961 and analyse the
provision therein from all facets, which will make us understand the deduction
in a comprehensive way. In the vortex of legal pronouncements, we will analyse
few case laws as well, which throw light on the grey areas that are not
captured or construed in the tax legislation.
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