ICAI News - Exams' Results

Results of Final (Old & New) Course Examinations held in November, 2010 and Information Systems Audit – Assessment Test and CPT Examination held in December, 2010 are likely to be declared on 21st January, 2011 at around 2.00 PM.-(18-12-2010)

---

CIT Vs. Hotel Blue Moon, (SC) Feb2010

Issue of notice u/s143(2) within prescribed time for purpose of block assessment under chapter XIV-B is mandatory prerequisite for assessing undisclosed income detected during search conducted u/s132.
CIT Vs. Hotel Blue Moon, (SC) Feb2010

Income Tax - PGBP CaseLaw

Where non-operating P&M is part of block of assets&said block of assets is used,depreciatn is to b allowed on non-operatingP&M
CIT Vs.Bharat Alumunium(DEL)2009

Admin's Note to All the Members !!

Dear All Members!
We have received many queries regarding new way of sending SMS.
BL is just a code of SMS Service Provider. Its not anyone's name.
Adarsh Agrawal (Admin)

Download Page has been updated

Dear Member !
Now u can get Study Material,RTP,Suggested Answers,Compilatn, Supplemntry StudyMat, MockTestPapers, Selected Case Laws, Notificatn &Circulars at Download section of http://shayvidz.blogspot.com/
So Follow us on blog..
Mail us ur queries, suggestions etc at shayvidz@gmail.com
Send ON SHAYVIDZ UrName at +919827880009

Income Tax - Case Law - April 2010

Rejection of application u/s197byAO results in an order as required u/s264&hence,revisional power vested in Commissionr u/s264 wud b attracted
L&T Vs ACIT(Bom)

Income Tax - Case Law - Aug2010

If assessee entered into forward contract to sell foreign currency at agreed price at a future date beyond last date of FY,then loss (if any) to assessee on a/c of evaluation of contract on last date of FY,would b allowable u/s28(i) of Income Tax Act
DCIT Vs.Bank of Bahrain&Kuwait,Aug13,2010 [MUM-ITAT(SB)]

ICAI News

The Articleship Stipend has been doubled by the ICAI Council. They have forwarded their recommendations for increase of Stipend to the Govt, and now it is awaiting Govt Approval :- Amarjeet Chopra

Excise Law

Credit is availble in respect of Steel Plates&MS channels used in fabricatn of chimney of Diesel Generating  Set,as capital goods
Raj.Spinning(SC)

Income Tax - TDS

if assessee made TDS in last month ofP.Y.&deposited be4 due date of filing ROI u/s139(1), deduction is to be allowed
Bapushaeb Nanasaheb Dhumal Vs. ACIT 2010

ICAI News

The Articleship Stipend has been doubled by the ICAI Council. They have forwarded their recommendations for increase of Stipend to the Govt, and now it is awaiting Govt Approval :- Amarjeet Chopra

ExciseNotificatn19.10.2010

All goods ofCETA,1985 if supplied to UnitedNations/InternationalOrganisation4their official use, have been exempted from ExciseDuty

Income Tax - TDS

If payer defaulted in making TDS on pmt to NR,then NR is liable to pay tax;however ques of pmt of AdvanceTax doesnt arise
DIT Vs.JacabsCivil Inc(DEL)

Vodafone Essar Cellulr Ltd Vs ACIT (KER.)

Charges recvd 4supply of SIM Card & Recharge coupons are not amount4services rendered but for sale of goods
Vodafone Essar Cellulr Ltd Vs ACIT (KER.)

We are back with SMS Updates

Coin has been tossed & now b positive4results. SHAYVIDZ is back with SMS updates in better way.
Send ON SHAYVIDZ (Ur Name) to +919827880009 to Join us

Admin's Announcement

Dear All Members!
As u know that Exam Fever has already been started,so v hv decided2gv a small break2our sms updates till 22nd Nov.All da Best
Adarsh Agrawal

Exams Exams Exams !!!

Exams Exams !!
These Life Making15days have gr8 power.Every hour,every minute can gv u extra marks.Leave everything just for15days..Study Study Study!!

Check List for Exams

CheckList4exam
AdmitCard,WristWatch,Penset,Calc,ruler,stappler,Vehicle/conveyance,SOS medicines if needed,WaterBottle etc.
Completely equipped b4fight

Exam Tips

*Never start ans with "Yes/No" unless u 100%sure
*6 avg ans will gv u more marks than 5 best ans
*attempt all questions
*dont loose confidence

Admin Wishes u a very very very Smiling Diwali..

Dear All Members!
SHAYVIDZ Family wishes u a very very Smiling Diwali.May u be blessed with Degree of CA,health,wealth & lots of SMILES.
Adarsh Agrawal

Recent Case Laws - PGBP

Manufctrer ofTextileGoods purchasd windmill.Additionl dep u/s32(1)(iia)allowed bcoz in act,no such condition of nexus2business
CIT Vs VTM Ltd2009(Mad)

Recent Case Laws - PGBP

Manufctrer ofTextileGoods purchasd windmill.Additionl dep u/s32(1)(iia)allowed bcoz in act,no such condition of nexus2business
CIT Vs VTM Ltd2009(Mad)

Recent Case Laws - PGBP

Manufctrer ofTextileGoods purchasd windmill.Additionl dep u/s32(1)(iia)allowed bcoz in act,no such condition of nexus2business
CIT Vs VTM Ltd2009(Mad)

Recent Case Laws - Capital Gain & MAT

LTCG,except 10(38),wont b excluded frmIncome4Book Profit u/s115J,even when exemption u/s54E/54EC has been claimed
N.J.Jose and Co. P.Ltd Vs ACIT (Ker.)

Recent Case Laws - Assessment Procedure TDS

If TDS not deposited on time,then intt u/s201(1A).No intt u/s234A,234B,234C can b claimed from DeducteeEmployee
CIT Vs.Emilio Ruiz Berdejo 2010(Bomb.)

Recent Case Laws - PGBP

Exp after setting up business but bfore commencement of business wud b deductible as RevenueExp
CIT Vs.Hughes Escorts Communication Ltd.2009(Del.)

Recent Case Laws - Capital Gain

Application money forfeited due to non pymnt of bal share allotment money.Its extinguishment of right.hence STCL.
DCIT VsBPL SanyoFinanceLtd 2009(Kar.)

Admin Announcement

V hv completd all amendmnts ofIncmTx relevnt4CAexams Nov2010
All sms r available@http://shayvidz.blogspot.com
Your Queries, suggestions, doubts are invited..
mail us at shayvidz@gmail.com
Now v wil send u important caselaws

Finance Act 2009

S147:AO may assess/re-assess any income which comes2his notice subsequent to proceedings. Not reqd to record reasons4the same while issuingNoticeU/s148

Finance Act 2009

S271(1)(C):InaccuratIncome shown inReturn filed b4 date of search shal b deemed concealment evenif disclosed in return filed on or after dt of search.

Finance Act 2009

From19.08.2009,ONLY BASIC RATE i.e.No TDSofEC,SHEC except-
*Salary toResidnt
*AnyPyment to NON-Residnt
Note-TDS ofSurchrg reqd only if pmt toForeignCo

Finance Act 2009

201:No order shal b passd4default ofNon-deductn ofTaxfromRESIDENT after
*2yrs frm end ofFYin whichStatementU/s200 is filed
OR
*4yrs frm end of FY in which pymnt is made

Finance Act 2009

S246A&S253:Against order ofAO followng instructions ofDRP,the appeal SHALL lie directly to ITAT¬ toCIT(A)
S281B:Period ofStayByCourt shal b excluded

Finance Act 2009

S144C:if AO want2make assessmnt prejudicial 2assessee in relation2TrfPricingAdj,thenAO SHALL refer case2DRP
S131:DRP hv all powers ofCalling books etc.

Finance Act 2009

S132:scope enlarged.Additional&JointDir/Commsnr can also authorise Search&Seizure if empowered byCBDT
S293C:GeneralPower2withdraw the given approvals

Finance Act 2009

S90:gvs power2CG4entering intoDTAAwithSpecifiedTERRITORIES OutsideINDIA also,earlier ForeignCountries only
2(29BA)definitn ofManufacture:same as in IDT

Finance Act 2009

92C:ActualTransctnPrice(ATP)shal b tkn whr diffrnc btwn arithmatc mean ofArm'sLengthPrice&ATPdoesnt exceed5%ofATP
92CB:empowrs board2makeSafeHarborRule

Prep Strategy for CA Final Students

PrepStrategy4Finalist
*PGBP-16Marks
*Assesmnt ofVariousTypes ofPerson-16M
*AssesmntProcedure-16M
*Amenmnts+caselaws-20M
*WealthTax-10M
*MicsTopics-22M

SHAYVIDZ Admin Msg

Admin announcmnt forPCC/IPCC Students
*amndmnts r over(next sms onwards only forFinalist)
*Do read supplmntry study mat ofICAI
*Do read 35AD,56(2),80IB

Notification

e-Intrmedary shall
*hv PAN&ClassII DigtlSignCertfct
*properly secure confidntl info of assessee
*hv necssry archival,retrievl&securtypolicy
*No default

Notification

W.r.t.139(1B),qualifctn of e-ReturnINTERMEDIARY
it must b pub sectrCompnyORcompny hvngNtWrth of1croreORfirm ofCA/CS/AdvctOR CA/CS/AdvctOR DDOofGovtDept

Notification

Salary
New rule for Taxability of Motor Car Benefits-Rule 3(2)(A) Partly use
Exp-employer1800pm/2400pm
Exp-employee600pm/900pm
+900pm for Chauffeur

Finance Act 2009

*S208limit increasd4liab of AdvncTax frm5000to10000
*S200A procssng ofTDSReturn same asProcsng ofITRu/s143(1)
*ZeroCouponBond cn b issued bySchedldBnk

Finance Act 2009

*Valid declaration u/s197A requires PAN of payee on it
*Application by institutions4approval of exemption u/s10(23) now can b made upto30thSep ofA.Y.

Finance Act 2009

*Valid declaration u/s197A requires PAN of payee on it
*Application by institutions4approval of exemption u/s10(23) now can b made upto30thSep ofA.Y.

Finance Act 2009

S206AA:ifPayee not furnishesPAN,den hisTDSrate wl b highr of
*rate mentiond inSection
*rate of Finance Act
*@20%
If incorrectPAN,den presumed as No PAN

Finance Act 2009

Sec80G-Approval 1ce granted will continue2b valid in perpetuity w.e.f.1.10.2009.
Approvals expiring bfore1.10.2009will hv2b renewed only once.

Finance Act 2009

Sec194-I TDS w.e.f. 01.10.2009
*for use of P&M-2%
*for use of Land,Building,F&F-10%

Finance Act 2009

Sec194C TDSonPymnt2ResiContractor
*now no diff betwn contrct/subcontrct
*TDS@1%if paid to indl/HUF &2%for others
*No TDS if pmt2transportr gvs hisPAN

Finance Act 2009

*LLP
S140:sign on ROI byDesignatedPartnr/anyPartnr
S167C:Partnrs vl b jointly&sevrly liable4pymnt of tax unless proved othrwise

Finance Act 2009

Sec2(15):nw charitble purpose include preservtn of envirnmnt eg watrshed,forest,wildlife etc&preservtn of monumnts/places/objects ofart/historic intt

Finance Act 2009

Sec115BBC amended : now anonymous donation is not taxable upto *5%of total donation recd
OR
*1lac
W.e.higher.

Finance Act 2009 - important amendment

SHAYVIDZ
Very impNew/Amended BIG Sections
*35AD,73A,28,50B &Explntn13toSec43(1)
*GiftTax-56(2)(vii),49(4),50C
*80IB
*80A
*2(15)
But these cnt b explained in SMS

Finance Act 2009

*Employer'sContri toSAF above1Lac=Perq
*ESOP: Perq=FMV on ExrciseDt-AmtPaid byEmployee
*10(10C) Vs S-89:if exmptn claimd u/s10(10C),then NO RELIEFu/s89

Finance Act 2009

ElectoralTrust
*2(22AAA)madeByCG,aprvdByCBDT
*13B-Incm ofET=exmpt,if95%of(C/y+PastYrs)incm distrbutd2PoliticlParties
*80GGB&80GGC-Dedctn of donatn toET

Finance Act 2009

S-80CCD:dedctn of amt(max10%ofGTI)depositd in notifiedNPS
*Amt recd bk frmNPST-taxble4indl/nominee.
*NotTaxable if invested in AnnuityPlan in SAME F.Y.

Finance Act 2009

NPS Trust
S10(44):Incm of NPST exempt
S115-O(1A):if Dividend to NPST,then DDTax nil for this
S80CCD: [in next SMS]
S197(1E):No TDS on pymt to NPST

Finance Act 2009

LibertyIndia(SC)
Xport incntv CCS,DutyDrwbck shall nt b formpart of"Prfit ofBusnes of undrtkng"So nt dedctble u/s10A,10AA,10B,80IA,80IB,80IC,80ID,80IE

Finance Act 2009

Sec40A(3)&(3A)amended. Pymt to TRANSPORTER of GOODS above 35000/- othrwise than a/c payee chq/DD/BnkDrft shall be disallowd. Pymt to others-20,000/-

Finance Act 2009

*MAT Credit u/s115JAA-now10yrs
*Sec10BA-notAvlble frmAY10-11
*Sec10A&10B-extnded uptoAY11-12
*Sec80DD&80U-SevrDisab now 1lac frm 75k
*Sec80E-VocatnlStudies included

Finance Act 2009

Remuneration toPartners allowd u/s40(b)revised
*on 1st 3lacs of B.P. or in case of loss-1.5lacs or 90%of B.P. w.e.h.
*on bal B.P.-60%
LLP-all provisions are same as PartnrshpFirm

Finance Act 2009

Intt of Compnstn/EnhncdCompntn
S145A-Taxable in yr of Receipt
S56(2)(viii)txble u/H IOS
S57-50%Dedcn & no other dedcn
Imp-this is only for INTEREST

Finance Act 2009

S36(1)(viii)ded in redpct of special resrv creatd by SPECIFIED ENTITYengagd in providing LongTrm financ4constrn/purchse ofResiHouse inIndia.NwNHB covrd

Finance Act 2009

Explntn7toS43(6)
(Assessees ofRule7A,7B&8)Dep shall b allowd frm composite income i.e.Agri incm&BGBP.Dep so allowd shall b reducd frmWDVofBlock ofAsset

Finance Act 2009

*Surchrge is applicable to companies only if TI EXCEEDS 1crore.
*Rate of MAT u/s115JB is increased from 10% to 15%

Finance Act 2009

*WealthTax MinExmptnLimit 30lacs
*FBT abolished w.e.f. A.Y.2010-11.. Hence income head Salary become important for nov2010 exam
*TDS topic is also imp

Finance Act 2009

MinExmptnLimit
indl&HUF-1.6lacs
ResiWomen-1.9lacs
ResiSeniorCtzn-2.4lacs
Surchrge:only for domestic company10%of TI & foreign company2.5% of TI if total income EXCEEDS 1crore
Cost Inflation Index-632

Finance Act 2009

MinExmptnLimit
indl&HUF-1.6lacs
ResiWomen-1.9lacs
ResiSeniorCtzn-2.4lacs
Surchrge:only for domestic company10%of TI & foreign company2.5% of TI if total income EXCEEDS 1crore
Cost Inflation Index-632

SHAYVIDZ Admin Msg

From today onwards we r going2send all amendments of IncomeTax applicable for Nov2010 exams.
1. FinanceAct2009(FA09)
2. Notifications upto 30.04.2010

Case Laws for November 2010 Exams

Select Cases in Direct and Indirect Taxes 2009

Additional Legal Decisions Relevant for November 2010 Examination

Case Laws 2010

• Direct Taxes
  
  
• Indirect Taxes

Wealth Tax - Valuation Officer

New Jurisdiction of Valuatn Officer
*Upto NtWlth of 40Lacs-Assistnt V.O.
*upto 300Lacs-V.O.
*ABOVE 300Lacs-District V.O.

Income Tax - Income from Salary

New rule for taxability of Motor Car Benefits-Rule 3(2)(A) Partly use
Exp-employer1800pm/2400pm
Exp-employee600pm/900pm
+900pm for Chauffeur

Income Tax - Assessment Procedure

Only 139(1) or 142(1) can be revised. 139(4) cant be revised.
KUMAR JAGDISH CHANDRA SINHA (SC)

ICAI News - Admit Card of November 2010 Exams

Examination to be held in November2010
Admit Card is available on http://icai.nic.in/admit.php
IMPORTANT NOTE - Only Three attempts to download admit card.

Income Tax - PGBP

For applicability of S-41(4),the assessee who claimed the deduction of bad debt and the assessee who recovers the bad debt must b same.
P.K.KAIMAL

Income Tax - PGBP

Intt on loan taken for pymt of Income Tax is not allowable since pymt of iTax is personal liability.
East India Parmaceuticals Works Ltd.1997 (SC)

Income Tax - PGBP

PGBP
Co.borrowed money&loaned to director without intt. Intt on borrowed money will b disallowed.if bank loan@13%&loan2dir@3%then10%intt disallowed.

Companies Act - Directors

CLSP Final
S-260 AdditnlDirector
*overrides S-255,258&259
*App byBOD,if empowered by AOA
*Period-upto nextAGM
*MaxStrngth-Counted

Bulk SMS, MMS ban extended till October 4th, 2010

We are not able to send SMS Updates because :-

 
New Delhi, Oct 1 (IANS) The government Friday extended the ban on bulk Short Message Services (SMS) and Multi-media Messaging Services (MMS) in the country for another three days till Oct 4.
 
The ban is to make sure that peace is maintained after the controversial Ayodhya verdict.
The ban on bulk SMS, which is mainly used for marketing, has affected various information-based services such as SMS alerts on cash withdrawal and debit card spending, balance enquiry and transaction details, share-trading alerts and SMS-based Internet banking.
 
It has resulted in inconveniences to those air and rail travellers as they are unable to get updates on travel details.
 
Earlier, the ban was till Sep 24 to check the spread of rumours or hateful messages, which was later extended till Sep 30 again after the Supreme Court deferred the Ayodhya verdict for a week. It was again extended by a day to Oct 1.

Memorandum of Association - 6

Sec-13 Capital Clause

*States Authorised/Nominal/Regd Capital
*Divided into ES/PS
*Break Up - No.of Shares & FaceValue per share
*CapClause prescribes Maximum Capital
*No restriction in law for Max Limit
*UnLtd - Capital Clause in AOA

CA FINAL - Companies Act - Director

S-265 Right of Person to Stand for Directorship

*Not Applicable to R/D but applicable in case of re-appointment of MD, Additional Director,Director U/s 262
*Propose by himself or member
*14Days Notice + Rs.500/- (money will be refunded if candidate is elected & appointed)
*Company to member >=7Days
*Advertisement in two newspapers

CA FINAL - Companies Act - Director

S-265 Right of Person to Stand for Directorship

*Not Applicable to R/D but applicable in case of re-appointment of MD, Additional Director,Director U/s 262
*Propose by himself or member
*14Days Notice + Rs.500/- (money will be refunded if candidate is elected & appointed)
*Company to member >=7Days
*Advertisement in two newspapers

No Change in the Schedule of the Chartered Accountants Examinations, November 2010 – (21-09-2010)

September 21, 2010

Enquiries are being received about possible change in the schedule of the Chartered Accountants examinations to be held from November 8th to 22nd, 2010 due to the forthcoming Elections to the Legislative Assembly in the State of Bihar.

It is clarified that the election schedule for Bihar Assembly Elections (as notified on 6th September, 2010 by the Election Commission of India) is not clashing the Chartered Accountants examinations scheduled in the State of Bihar. Accordingly there is no change in the schedule of the Chartered Accountants examinations to be held during 8th – 22nd November, 2010 from 2.00 PM to 5.00 PM (IST).

Further please note that there will be no change in the examination schedule in the event of any day of the examination schedule being declared a Public Holiday by the Central Government or any State Government.

( G.Somasekhar) Additional Secretary (Exams)

Memorandum of Association - 5

OBJECT CLAUSE
Main Objects -Starts just after Incorp
Ancillary Objects -To Achieve Main Object
Other Objects - which wil be started in future. SR or OR+CG

LIABILITY CLAUSE
-Applies for Limited Companies i.e. liability of Member's is limited

Memorandum of Association - 4

ObjectClause
S-13
*3Division of Object Clause -Main Objects, Incidental/ancillary Objects, Other Objects
*act beyond Object Clause - i.e. Ultravirus - that act will be void
*Drafting should be - Not Illegal, Not against Act&PublicPolicy, Clear&Certain

Clubbing of Income 3

Clubbing of Income

For the purpose of clubbing of income u/s 64,the relationship between individual & spouse should subsist both at the time of transfer & at the time of accrual of income.
Philip John Plasket Thomas

Clubbing of Income 2

Clubbing of Income
Agriculture Income of minor son of the assessee has to be included in income of assessee for determining rate of income tax applicable to the assessee.
SURESH CHAND TALERA Vs. UOI (MP)

Clubbing of Income 1

Clubbing of Income

Assessee is entitled for exmption u/s 54 even if new house is acquired in name of spouse which was assessed in hands of assessee.
V.Natrajan(Mad.)

CA Final Companies Act Sec 275; 277; 278

SHAYVIDZ

Co.Act CA Final
S-275,277,278

275-Dirctrship in Max 15Co.

277-if already15&app in othr co.-vacate<15D,othrws new app bcms void. If already in=<14&app in so many co that total>15,thenALL new app void if nt vacate<15D beyond15

278-Not counted in15-PvtCo,Unltd Co.,S-25 Co,Alternate Dir u/s313

ICAI News : Revised Structure of Question Papers for Nov 2010

ICAI News 10Sep2010
Revised Pattern of QuesPapers Nov2010 PCE,IPCE & Final..
*1QuesCompulsory
*1Choice in other ques
*1 internal choice in one ques

Revised Structure of Question Papers for November, 2010 Examination - (10-09-2010)

Memorandum of Association - 3

Law
Name Clause S-13,25,20,147
S-13:Ltd/PvtLtd word
S-25:Non-applicability
S-20:Name not identical/nearly resembles wid Existing Co/regd TM.. & follow Emblem n Names(Prevention of Improper Use)Act1950
S-147 Name outside office,on common seal,on official doc.

Memorandum of Association - 2

Law
S-14 Format of MOA
Co. Ltd by Sh. - Table B
GuarnteeCo.+No Shr/Cap - Table C
GuarnteeCo.+Shr/Cap - Table D
UnLtd.Co. - Table E

Memorandum of Association - 1

Law
S-13 Contents of MOA
I.Name Clause,
II.R.O. Clause
III.Object Clause
IV.Liab. Clause
V.Capital Clause
VI.Declaration / Subscription clause

Verification Status May-2010 Examinations - 08-09-2010

• PCE – May, 2010
  
  
• PE-II – May, 2010
  
  
• IPCE/ATE - May, 2010
  
  
• FINAL & FINAL (New Course) - May, 2010

Change in Examimation Timing Nov-2010

SHAYVIDZ
ICAI Announcement 08-09-2010
Change in Exams Timing Nov-2010 PCE, IPCE, Final old & new.
Now 02.00PM to 05.00PM (IST)..
Check Change of Examination Timings for November-2010 Examinations - (08-09-2010) 
Check here for other News ICAI, ICSI News