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PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 1
E-NEWs Letter November
2015
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 2
Chairman Speech
Greeting from Pimpri Chinchwad Branch of WIRC
of ICAI!!!
I am sure that the Diwali Celebration would had set you all a lot of
enjoy & bliss. It is the festival of great joy and enthusiasm. The
spiritual significance of this festival indicates the victory of light over
darkness. It is the mark to us to begin with a new flinch to the
business of the New Year.
The Students of ICAI has the tough role as they are in examination at
the time of Diwali fest. I personally think that if we have to achieve
something we should be focus about it and there is striking line Haile
Gebrselassie Once you have commitment, you need the discipline and
hard work to get you there. Pimpri Chinchwad Branch Managing
Committee Members wishes you all the best of luck who are
struggling, working very hard for your future.
Branch witnessed very well programmed for the members & our
students. We are conducting Certificate Course on Indirect Taxes from
21st Nov’2015 to 16 Jan’2016 I here request members to take the benefit
for future perspective. There are various seminars Workshop for
members & Students in the month of Nov & Dec’2015.
I have these words of famous Shri Buddha “We are shaped by our
thoughts, we become what we think. When the mind is pure, joy
follows like a shadow that never leaves”.
CA.Prasadh Saraaf
Chairman
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 3
Table of Contents
Sr No
Particulars Page No
1 Chairman Communiqué 2
2 Index 3 3 Office Bearers 2015-16 4 4 Updates/notifications/Circulars/Legal
Decision
5-11
5 Forth Coming Events 12
6 Event 13-15 7 ITT/OP/GMCS – I&II/CPT Mock Test 16
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 4
MANAGING COMMITTEE MEMBERS
( Year 2015-16 )
CA.Prasadh Saraaf
Chairman
CA.Suhas Gardi
Vice Chairman
CA.Maheshwar Marathe
Secretary & Treasurer
CA.Baban Dangale
Immediate Past Chairman
CA.Manojkumar Agarwal
Past Chairman
CA.Kishor Gujar
Managing Committee
Member
CA.Santosh Sancheti
Managing Committee Member
CA.Pankaj Patni
Managing Committee Member
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 5
Nov 2015 CBDT Invites Suggestions From Public On Issues In ICDS
Requiring Guidance And Clarification
The CBDT has issued a press release dated 26.11.2015 pointing out that after
notification of ICDS, it has been brought to the notice of the CBDT by the
stakeholders that certain provisions of ICDS may need further clarification/
guidance for proper implementation. These implementation issues raised by the
stakeholders have been referred to an expert committee comprising of
departmental officers and professionals and the committee is currently examining
these issues. The CBDT has stated that in order to issue a comprehensive
guidance/clarification on this matter, the stake holders and general public are
requested to bring out issues/points which in their opinion would require further
clarification/guidance for proper implementation of the provisions of the ICDS.
These issues/points may be submitted by 15th December, 2015 at the email
address (dirtpl3@nic.in) or by post at the stated address
Dept Complies With High Court Directives & Sets Out Detailed
Procedure For Filing Appeals and Effective Representation In the
Delhi High Court
In National Petroleum Construction Company Vs. DIT in ITA Nos.
143, 144, 533/2013 and 795/2014, the Delhi High Court in its order dt.
13.08.2015, dt. 20.08.2015 and 28.09.2015 directed the Income Tax
Department to formulate and implement a standard operating
procedure on the following three issues:
(i) Issue No.1:- A mechanism should be put in place for immediate
and seamless transfer of cases from one standing counsel to another
so that unnecessary adjournments are not sought by the counsels on
the ground of lack of formal order of allocation, want of instructions or
papers. The lTD to ensure that in none of the matters there is a
situation where (a) there is no one appearing for the lTD (b) even if
they are, they have neither instructions nor papers. It will be
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 6
responsibility of the lTD to ensure that the standing counsel who have
been assigned the cases have the complete records. It should not be
an excuse for Standing Counsel of the lTD to take adjournment on the
ground that they have no instructions or that they do not have the
case papers.
CBDT Warns Top-Brass Of Adverse Action If They Don’t Pass S.
12AA Orders Within Time Limit
The CBDT has issued Instruction No. 16 of 2015 dated 06.11.2015 in which it
has taken a stern view of the fact that the time limit of six months specified in s.
12AA(2) of the Income-tax Act 1961 for passing an order granting or refusing
registration under s. 12AA are not being adhered to by the Commissioners of
Income Tax (Exemptions). The CBDT has directed the Chief Commissioners to
monitor that the Commissioners are adhering to the time limit and to take suitable
administrative action in the case of laxity
Important Notification/Circulars
Imp Notification By Central Government Of ‘Tolerance Range’ For
Transfer Pricing Cases For AY 2015-16
The Ministry of Finance has issued a Notification dated 29.10.2015 in which it is
stated that where the variation between the arm’s length price determined under
section 92C and the price at which the international transaction or specified
domestic transaction has actually been undertaken does not exceed one percent
of the latter in respect of wholesale trading and three percent of the latter in all
other cases, the price at which the international transaction or specified domestic
transaction has actually been undertaken shall be deemed to be the arm’s length
price for Assessment Year 2015-2016
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 7
CIT vs. Five Vision Promoters Pvt. Ltd
(Delhi High Court) COURT: Delhi High Court
SECTION(S): 68
DATE: November 27, 2015 (Date of pronouncement)
DATE: November 29, 2015 (Date of publication)
AY: 2007-08, 2008-09
S. 68 (share capital): (i) It is a fallacy to assume that a company which has not commenced business
has unaccounted money, (ii) Fact that investors have a common address is not relevant, (iii) Fact
that shares were subsequently sold at reduced rate is not relevant
There is a basic fallacy in the submission of the Revenue about the precise role of the
Assessee, Five Vision. The broad sweeping allegation made is that “the Assessee being a
developer is charging on money which is taken in cash”. This, however, does not apply to
the Assessee which appears to be involved in the construction of a shopping mall. In fact
for the AYs in question, the Assessee had not commenced any business. The construction
of the mall was not yet complete during the AYs in question. The profit and loss account
of the Assessee for all the three AYs, which has been placed on record, shows that only
revenue received was interest on the deposits with the bank. Assessee is, therefore, right
in the contention that the basic presumption of the Revenue as far as the Assessee is
concerned has no legs to stand. Correspondingly, the further allegation that such ‘on
money’ was routed back to the mainstream in the form of capital has also to fail
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 8
Shamsher Singh Verma vs. State of Haryana
(Supreme Court)
COURT: Supreme Court
SECTION(S): S 3 of Indian Evidence Act
DATE: November 24, 2015 (Date of pronouncement)
DATE: November 29, 2015 (Date of publication)
AY: -
S. 3 of Indian Evidence Act: A "Compact Disc" (CD) is a "document" and is admissible as evidence
In view of the definition of ‘document’ in Evidence Act, and the law laid down by this
Court, as discussed above, we hold that the compact disc is also a document. It is not
necessary for the court to obtain admission or denial on a document under sub-section (1)
to Section 294 CrPC personally from the accused or complainant or the witness. The
endorsement of admission or denial made by the counsel for defence, on the document
filed by the prosecution or on the application/report with which same is filed, is sufficient
compliance of Section 294 CrPC
Hero Cycles (P) Ltd vs. CIT (Supreme
Court) COURT: Supreme Court
SECTION(S): 36(1)(iii)
DATE: November 5, 2015 (Date of pronouncement)
DATE: November 26, 2015 (Date of publication)
AY: 1988-89
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 9
S. 36(1)(iii): Law on when interest expenditure on loans diverted to sister concerns and directors can
be allowed as business expenditure explained
Once it is established that there is nexus between the expenditure and the purpose of
business (which need not necessarily be the business of the assessee itself), the Revenue
cannot justifiably claim to put itself in the arm-chair of the businessman or in the position
of the Board of Directors and assume the role to decide how much is reasonable
expenditure having regard to the circumstances of the case. It further held that no
businessman can be compelled to maximize his profit and that the income tax authorities
must put themselves in the shoes of the assessee and see how a prudent businessman
would act. The authorities must not look at the matter from their own view point but that
of a prudent businessman
DCIT vs. Zuari Estate Development &
Investment Co Ltd (Supreme Court) COURT: Supreme Court
SECTION(S): 143(1), 147, 148
DATE: April 17, 2015 (Date of pronouncement)
DATE: November 26, 2015 (Date of publication)
AY: 1991-92
S. 143(1)/ 147: As a s. 143(1) intimation is not an assessment, there is no question of "change of
opinion" by the AO
Can it be said that any “assessment” is done by them? The reply is an emphatic “no”. The
intimation under Section 143(1)(a) was deemed to be a notice of demand under Section
156, for the apparent purpose of making machinery provisions relating to recovery of tax
applicable. By such application only recovery indicated to be payable in the intimation
became permissible. And nothing more can be inferred from the deeming provision.
Therefore, there being no assessment under Section 143(1)(a), the question of change of
opinion, as contended, does not arise
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 10
Spentex Industries Ltd vs. CCE (Supreme
Court) COURT: Supreme Court
SECTION(S): 119
DATE: October 6, 2015 (Date of pronouncement)
DATE: November 23, 2015 (Date of publication)
AY: -
CBDT & Govt are bound by their own interpretation of a statutory provision. Principle of
"contemporanea expositio" explained. The word "or" can be interpreted as "and" if the former
leads to unintelligible and absurd results
It is to be borne in mind that it is the Central Government which has framed the Rules as
well as issued the notifications. If the Central Government itself is of the opinion that the
rebate is to be allowed on both the forms of excise duties the government is bound
thereby and the rule in-question has to interpreted in accord with this understanding of the
rule maker itself. Law in this respect is well settled and, therefore, it is not necessary to
burden this judgment by quoting from various decisions
State Bank of Patiala vs. CIT (Supreme
Court) COURT: Supreme Court
SECTION(S): 2(7) of the Interest-tax Act
DATE: November 18, 2015 (Date of pronouncement)
DATE: November 20, 2015 (Date of publication)
S. 2(7) Interest-tax Act: Right to charge overdue interest on discounted Bills of Exchange is not
“interest” as it does not arise on account of delay in repayment of any loan or advance. The right
arises on account of default in the payment of amounts due under a discounted bill of exchange
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 11
Section 2(7) itself makes a distinction between loans and advances made in India and
discount on bills of exchange drawn or made in India. It is obvious that if discounted bills
of exchange were also to be treated as loans and advances made in India there would be
no need to extend the definition of “interest” to include discount on bills of exchange.
Indeed, this matter is no longer res integra. The Karnataka High Court’s view is directly
contrary to the view of this Court in CIT v. Sahara India Savings & Investment Corpn.
Ltd., (2009) 17 SCC 43, and, therefore, cannot be countenanced. “Loans and advances”
has been held to be different from “discounts” and the legislature has kept in mind the
difference between the two. It is clear therefore that the right to charge for overdue
interest by the assessee banks did not arise on account of any delay in repayment of any
loan or advance made by the said banks. That right arose on account of default in the
payment of amounts due under a discounted bill of exchange.
Andaman Timber Industries vs. CCE
(Supreme Court) COURT: Supreme Court
DATE: September 2, 2015 (Date of pronouncement)
DATE: November 16, 2015 (Date of publication)
Failure to give the assessee the right to cross-examine witnesses whose statements are relied up
results in breach of principles of natural justice. It is a serious flaw which renders the order a nullity
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 12
Forth Coming Events...
SR NO
DATE SEMINAR DETAILS Speakers
1 29.11.2015 HOW to face Cpt Examination CA.Mahesh Khandekar
2 19.12.2015
Half day Seminar on “Precaution & Compliances under MVAT Law” 1. Issues in MVAT Audit. 2.MVAT AUDIT Procedural Changes
Adv.Mahesh Bhagwat
3 26.12.2015 6 CPE SEMINAR ON “INTERNAL FINANCIAL CONTROLS Under COMPANY’S ACT & Subsidy Schemes ,Professional Ethics, Code of Conduct & Peer Review” 1. “Internal Financial Controls Under Company’S Act. 2. Subsidy Schemes for Manufacturing & IT Units by government of Maharashtra. 3.Professional Ethics, Code of Conduct & Peer Review
1. CA Aditya Kulkarni
2. CA. Amey Shah 3. CA..Chandrashekhar
Vaze
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 13
Events..
Certificate Course on Indirect Taxes from 21st Nov’15-16 Jan’16
Program:-Lighting of Lamp at Investor Awareness programme Held on 21
st Nov’15.
L to R:- CA.Kishor Gujar Professional Devlopment Committee of ICAI,CA.R P.Chanchalani
Speaker,CA.Prasadh Saraaf Chairman of Pimpri Chinchwad Branch,CA.Baban Dangale Immediate
Past Chairman.
CPT MOCK TEST of November batch 29.11.2015
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 14
How To Face CPT Exam
Speaker CA. Mahesh Khandekar
Felicitating CPT Faculty for conducting CPT Crash Course
CA.Ayush Sancheti &
CA.Atishay Jain guiding students of CPT Crash Course
Branch Head Ms.Pratima Bhise felicitating CA. Ayushi Sancheti
Faculty of CPT Crash Course
Branch Head Ms.Pratima Bhise felicitating CA. Ayushi Sancheti
Faculty of CPT Crash Course
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 15
Diwali Dhanteras Pooja at Branch on 7.11.2015
CA.Prasadh Saraaf doing Diwali Puja at Dhanteras
On the eve Building was decorated with Lightening & Lighting lamp.
Diwali Melawa Eve celebration with Lightening lamp
diyas & Rangoli Design on 7.11.2015.
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 16
PIMPRI CHINCHWAD BRANCH OF WIRC OF ICAI NOVEMBER E – NEWS LETTER 2015 17
DETAILS OF ITT BATCHES CONDUCTED DURING THE YEAR 2015
SR NO Month START DATE END DATE BATCH NO. NO OF STUDENTS
14 Nov'15 18.11.2015 16.12.2015 1115122 25
15 Nov'15 18.11.2015 16.12.2015 1115123 23
16 Nov'15 30.11.2015 29.12.2015 1115126 19
DETAILS OF ORIENTATION BATCHES CONDUCTED DURING THE YEAR 2015
SR. NO.
Month START DATE END DATE BATCH NO NO OF STUDENTS
13 Nov-15 17.11.2015 27.11.2015 62 28
14 Nov-15 27.11.2015 2.12.2015 63 23
DETAILS OF GMCS I BATCHES CONDUCTED DURING THE YEAR 2015
SR. NO.
Month START DATE END DATE BATCH NO NO OF STUDENTS
13 Nov-15 17.11.2015 27.11.2015 62 28
14 Nov-15 27.11.2015 2.12.2015 63 23
Pimpri Chinchwad Branch of WIRC of ICAI
Mock Test Series
CPT Mock Test Sr.No Detail Date of CPT Mock Test No. of
Students Venue
9 CPT 29.11.2015 36 ICAI Bhawan Pimpri Chinchwad Branch of WIRC of ICAI