Statutes Monday-May-2009-05-11

India (SANEPR.com) May 14, 2009 -- Corporate Laws

Companies (Central Government’s) General Rules and Forms (Second Amendment) Rules 2009 - Substitution of Forms 19, 20, 20A, 44, 49 in Annexure ‘A’ - Notification No. G.S.R. 257(E), dated 17-4-2009

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Direct Tax Laws

1-Section 35(1)(ii) of the Income-tax Act, 1961 - Scientific research expenditure - Approved scientific research associations/institutions - Notification No. 38/2009, dated 28-4-2009

2-Section 35(1)(ii) of the Income-tax Act, 1961 - Scientific research expenditure - Approved scientific research associations/institutions - Notification No. 39/2009, dated 28-4-2009

3-Section 35(1)(ii) of the Income-tax Act, 1961 - Scientific research expenditure - Approved scientific research associations/institutions - Notification No. 40/2009, dated 28-4-2009

Fema

1-Foreign Exchange Management Acquisition and Transfer of Immovable Property in India (Amendment) Regulations, 2009 - Amendment in regulations 6 and 8 - Notification No. G.S.R. 299(E) NO. FEMA 186/2009-RB dated 3-2-2009

2-External Commercial Borrowings (ECB) Policy - Liberalisation - A.P. (DIR Series) Circular No. 64, dated 28-4-2009

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Securities Laws

1-Discussion paper on simplification and uniformity in the process of weeding out/rejection of applications in primary market transactions - Through use of Permanent Account Number (PAN) - Press Release, dated 5-5-2009

2-Section 4 of the Securities Contracts (Regulation) Act, 1956 - Grant of recognition to Stock Exchange - Renewal recognition to Gauhati Stock Exchange Limited, Gauhati - Notification No. LAD-NRO/GN/2009-10/03/16/330, dated 24-4-2009

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Case Laws

Direct Tax Laws

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From ITAT

Treatment of rental income from leased land - The provisions of section 22 of the Income-tax Act cannot be invoked on a lease of land; the provisions of section 27(iiib) of the Act will apply only when a building thereof is involved and assessee has any right in the said building or part thereon, to be considered as deemed owner - TCI Reality Pvt. Ltd. v. ITO ITA No. 651/Mum/2008

Allowability of deduction under section 10B of IT Act, 1961 - Interpretation of the words “manufacture or production” for the purpose of deduction under section 10B can not solely be decided on the statement of assessee’s employees alone - ITO v. E-Infochips Ltd. ITA No. 4005/Ahd/2003

Allowability of common expenses in computing profits and gains of an eligible business under section 80-IA/80-1B of IT Act, 1961 - All the expenses of the business, whether direct or indirect; project specific or common expenses, have to be considered for computation of the profits and gains of an eligible business - Nitco Tiles Ltd. v. DCIT ITA No. 5701/Mum/2007

From SC/HC

TDS under section 194C in case of clearing and forwarding agents - Commissioner of Income-tax v. Cargo Linkers - [2009"> 179 TAXMAN 151 (DELHI) IT APPEAL NO. 218 OF 2008

Scope of section 268A - Since section 268A, which authorises CBDT to issue orders, instructions or directions to income-tax authorities laying down monetary limits for purpose of filing appeals, was introduced with retrospective effect from 1-4-1999, all instructions, orders or directions issued by CBDT fixing monetary limits for filing appeals on or after 1-4-1999 must be treated as having been issued under section 268A(1) and must be deemed to have statutory effect - Commissioner of Income-tax, Chandigarh-II v. Oscar Laboratories (P.) Ltd. - [2009"> 179 TAXMAN 176 (PUNJ. & HAR.) IT APPEAL NO. 171 OF 2002

Wealth-tax returns - Section 14 casts an obligation statutorily upon every person, whose net wealth is assessable on valuation date, to file a return and it is not permissible, having regard to scheme and purpose underlying Act, for anyone to decide for himself or herself that his/her net wealth is below taxable limit and to work out himself or herself statutory deductions and to evade responsibility to file return - J. Jayalalithaa v. Assistant Commissioner of Wealth-tax, Central Circle (II)(2) - [2009"> 179 TAXMAN 212 (MAD.) CRL. O.P. NO. 27245 OF 2007, CRL. R.C. NO. 666 OF 2008 AND M.P. NO. 1 OF 2008


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Service tax

Leviability of service tax on promotion and marketing of lottery tickets - By inserting the Explanation appended to clause (19) of section 65 of the Finance Act, 1994, a new concept of imposition of tax has been brought in; but when a new type of tax is introduced or a new concept of tax is introduced so as to widen the net, it should not be construed to have a retrospective operation on the premise that it is clarificatory or declaratory in nature; therefore, the service tax, if any, on promotion and marketing of lottery tickets would be payable only with effect from May, 2008 and not with retrospective effect - Union of India v. Martin Lottery Agencies Ltd. Civil Appeal No. 3239 of 2009