The Institute of Chartered Accountants of India
VASAI BRANCH OF WIRC
T
E
A
M
NEWSLETTER
Together Everyone Achieve More
www.vasai-icai.org
January-February 2015
Happy
Mahashivratri
k
HappyMa ar
San ranti
Happy
Republic
Day
PHOTO - GALLERY
Glimpses of Mega Members Conference on 21st & 22nd December 2014
L-R : CA. Sumeet Doshi (Committee Member), CA. K. B. Kothari (Committee Member), CA. Dayaram Paliwal (Chairman- Vasai Branch of WICASA),
CA. Preksha Jain (Secretary & Treasurer-Vasai Br.), CA. Tarun Ghia (CCM), Chief Guest CA. Kamlesh Vikamsey (Past President-ICAI), CA. Kishor
Vaishnav (Chairman- Vasai Br.), CA. Anil Bhandari (Chairman-WIRC), CA. Umesh Mestry (Vice Chairman-Vasai Br.), CA. Shruti Shah (Secretary-WIRC),
CA. Ramanand Gupta (Immediate Past Chairman-Vasai Br.), CA. Vimal Agarwal (Committee Member- Vasai Br.) at the dais.
Chief Guest CA. Kamlesh Vikamsey (Past President-ICAI), CA. Tarun Ghia (CCM), CA. Anil Bhandari (Chairman-WIRC), CA. Shruti Shah( Secretary-WIRC),
CA. Kishor Vaishnav (Chairman-Vasai Br.) & Managing Committee Team and various eminent dignitaries at Inauguration Session
Our Speakers for Mega Members Conference 2014
CA. Bhupendra Shah
CA. Dhinal Shah
CA. Mayur Chokshi
2
Jan-Feb 2015
CA. Rakesh Upadhay
CA. Pankaj Ghadiali
CA. Ramnath Iyer
CA. Sanjeev Lalan
CA.Atul Bheda
CA. Sunny Bilaney
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
CHAIRMAN’S COMMUNICATION
Saffron – Strength and Courage …. The
White middle band for Peace and Truth
… The Green – for Fertility, Growth
and Auspiciousness …
Branch also completed two jointly
programme with Thane Branch on
Seminar on Project Finance and
Cricket Tournament.
My India , My Pride – Vande Mataram …
Happy Republic Day
Branch also conducted various events for Students such as Career Counselling
and Joint Seminar with S N College on area of opportunities with
CA Professions. Sports Competition Indoor & Outdoor Games
at Vasai Hostel, One Day Seminar on Accounting Standard-12 &
Wealth Tax & Education visit at Yogathon and many more.
Wish You a Great, Prosperous, Blissful,
Healthy, Bright, Delightful, Energetic
and Extremely Happy, Happy New
Year 2015, Happy Makar Sankranti, Happy Mahashivratri &
Shivaji Maharaj Jayanti.
In a landmark visit, US President Barack Obama and PM Narendra
Modi sealed on many important deals and committed that the two
nations will be partners in economic progress. The two leaders
put the civil nuclear deal to work, took defence cooperation up
another notch, besides US endorsing India for a permanent seat
on the UN Security Council.
In the year 2014, Vasai Branch had organized a number of
7HFKQLFDODQGVRFLDOHYHQWVIRUWKHEHQHÀWRI WKH0HPEHUV
Particularly in the month of December, we had organized a number
of programs to assist Members to enhance their knowledge.
Branch had successfully completed Mega Members Conference
2014 organised jointly with WIRC on the theme ‘Global
Challenges & Opportunities before CA Profession’ wherein 200
plus member gathered. I would like to thank our Chief Guest,
CA Kamlesh Vikamsey, Past President, ICAI, for having graced
this Conference. Members appreciated his expert insight and
applicable information on global opportunities. I also thankful
to CA. Anil Bhandari & his Team for continuous support and
Guidance to made this event a successful.
%UDQFK DOVR VXFFHVVIXOO\ FRPSOHWHG WK %DWFK RI &HUWLÀFDWH
Course on Concurrent Audits of Banks, we are thankful to Internal
Audit Standard Board Committee for giving us an opportunities
to host this course at Vasai Branch. CA. Shriniwas Joshi, Central
Council Member & Vice Chairman of IASB Committee who
enlighten participants on subject knowledge and importance of
Banks Audit.
We are pleased to inform you that Vasai Branch of WIRC
submitted its Yearly Activity Report to ICAI & WIRC before
deadline. Hoping for this year also Vasai Branch will elect as
Best Branch & Best WICASA. Branch conducted various
activities throughout the year for Members, Students & Societies
(please refer Major Highlights on Page No. 4 & 5.)
Forthcoming Programmes
I am please to inform you that Vasai Branch is supporting to
Committee for Members in Industry in organizing Campus
3ODFHPHQW IRU 1HZO\ 4XDOLÀHG &KDUWHUHG $FFRXQWDQWV ZKHUHLQ
Orientation Program schedule on 8th Feb and Campus Interview
on 13th & 14th Feb 2015.
To cheer up the mood of the members from the stressful
Professional Environment of today, the branch has taken the
initiative in organizing some social events like Grand Cricket
Tournament 2015 for Members, Students with other department
like Police Department, Press, Doctors, Corporators & Advocates.
Public Meeting on Union Budget 2015 and Seminar on Women
Day schedule in the month of March.
I congrats to all Final Students those who cleared in their exams
and become member of CA Parivar and those who have not
cleared, never lose hope, try for better efforts and prepare in next
exam.
“Success is walking from failure to failure with no loss of
enthusiasm.”
--Winston Churchill
Branch also completed other programme such as Seminar on
Project Finance, Intensive Course on Companies Act, Service
Tax & Mvat, Residential Refresher Course at Mohili Meadows
Resort jointly with Vasai Virar CPE Study Circle & Celebrated 9th
Branch Annual Day.
With Warm Regards
CA Kishor Vaishnav
MANAGING COMMITTEE
CA. Dayaram Paliwal
WICASA-Chairman
CA. Vimal Agarwal
Committee Member
Vice-Chairman
CA. Ramanand Gupta
Imm. Past Chairman
CA. Sumeet Doshi
Committee Member
Secretary & Treasurer
CA. K. B. Kothari
Committee Member
CA. Shruti Shah
WIRC-Nominee
CA. Kishor Vaishnav
Chairman
CA. Umesh Mestry
CA. Preksha Jain
EDITORIAL BOARD
Editor : CA. Kishor Vaishnav
z
Joint Editor : CA. Vimal Agarwal
CA. Unmesh Narvekar, z CA. Haresh Mehta, z CA. Pramod Dhamankar, z CA. Hemant Shah, z CA. Haresh Kenia, z CA. Lalit Munoyat,
Kamal Dhareva, z CA. Preeti Agarwal, z CA. Rajesh Utkur, z CA. Sanjay Paharia.
z CA.
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
Jan-Feb 2015
3
MAJOR HIGHLIGHTS OF THE YEAR 2014
MAJOR ACTIVITIES BY VASAI BRANCH FOR MEMBERS, STUDENTS & SOCIETY
We contributed in our best way to achieve the vision of our Visionary Leader of ICAI and WIRC. During the Year we
have conducted 147 Activities for Members, Students, & Society.
Activities For Members
Programme Conducted Jointly with Committee of ICAI & WIRC
1.
2.
3.
4.
7.
8.
9.
10.
7th IRRC programs at Tashkent jointly with Committee for Members in Industry with overwhelming response of 50
participants on 12th to 17th August 2014.
Mega Members Conference jointly with WIRC with participants of 203 plus Members across Maharashtra & Gujarat.
Conference was held at Green Court Club, Mira Road on 20th & 21st Dec’ 2014.
First time Vasai Branch organized Campus Placement Programme jointly with Committee for Members in Industry
– ICAI ZKHUHLQ6L[W\6HYHQ1HZO\TXDOLÀHG&$0HPEHUVSDUWLFLSDWHG'HORLWWH+DVNLQV6HOOV//3)LUP-RLQWIRU
Interview for Members.
Two Investor Awareness Programme under the guidance of Committee of Financial Markets & Investor Protections.
&HUWLÀFDWH&RXUVHRQ,QGLUHFW7D[HVMRLQWO\ZLWK Indirect Taxes Committee with the participated of 21 Members.
2QH+XQGUHGWK7KLUW\)LUVW%DWFKRI WKH&HUWLÀFDWH&RXUVHRQ&RQFXUUHQW$XGLWRI %DQNVMRLQWO\ZLWKInternal Audit
Standards Board with 60 participants.
Seminar on Income Tax Act jointly with Continuing Professional Education Committee with the participated of 72
Members.
Five Days Workshop on Companies Act 2013 jointly with Corporate Laws & Corporate Governance Committee with
participated on 91 Members.
One Day Awareness Programme on Financial Reporting Practices jointly with Committee on Financial Reporting
Review Board of ICAI with overwhelming response on 131 participants.
One Day Programme on International Taxation jointly with Committee on International Taxation of ICAI with 102
participants.
Joint Programme with CA CPE Study Circle
1.
2.
3.
4.
5.
6.
7.
Residential Refresher Course was organised jointly with Bhayandar Study Circle at Matheran.
Residential Refresher Course was organised jointly with Vasai Virar Study Circle at Mohili Meadows Resort, Karjat.
Seminar on Bank Branch Audit jointly with Bhayandar Study Circle.
Seminar on Union Budget jointly with Bhayandar Study Circle.
Seminar on Union Budget jointly with Vasai Virar Study Circle.
Seminar on Tax Audit jointly with Bhayandar Study Circle.
Seminar on Tax Audit Report jointly with Vasai Virar Study Circle.
Others Important Programmes
1.
3.
4.
5.
6.
7.
8.
4
Felicitation of Hon’ble Vice President of ICAI, CA Manoj Fadnis on the occasion of Orientation Programme for Newly
Chartered Accountant & Seminar on Investor Awareness at Green Court Club, Mira Road at on 31st August 2014.
)HOLFLWDWLRQRI :,5&2IÀFH%HDUHUDQG7HDPRQWKHRFFDVLRQRI 2QH'D\$ZDUHQHVV3URJUDPPHRQ)LQDQFLDO5HSRUWLQJ
Practices at New Zaika, Mira Road (East) on 24th August, 2014.
First time, Vasai Branch organized CA Daud on 23rd February 2014 at Jesal Park Chowpatty, Bhayander (E) wherein 230
plus members participated.
Residential Refresher Course at Shirdi on 9th to 11th May 2014.
Felicitated Senior CA Members on the occasion of CA Days by gracious hands Shri. Narendra Mehta, President BJP Mira
Bhayander.
Throughout the year branch conducted Seminars/Conference-43, Workshop/Training Programs – 14, Information
7HFKQRORJ\3URJUDPV,QWHUQDWLRQDO5HVLGHQWLDO5HIUHVKHU&RXUVHDQG6WXG\&LUFOH0HHWLQJIRUWKHEHQHÀWRI Members. (Total Activity 91)
This year Branch successfully generated 20360 CPE Hours.
Supported to Thane Branch in organized joint programs – Seminar on Project Finance and Cricket Tournament.
Jan-Feb 2015
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
MAJOR HIGHLIGHTS OF THE YEAR 2014
Activities For Students
1.
2.
4.
5.
6.
7.
8.
9.
10.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Branch successfully conducted Regional Conference for CA Students 2014 jointly with WIRC at Venkatesh Hall, Bhayandar
(East) on 2nd & 3rd August 2014.
Branch conducted Residential Refresher Course at Mahabaleshwar on 14th to 15th June 2014.
)RUWKHEHQHÀWRI 6WXGHQWV%UDQFKVWDUWHG'LVWULEXWLRQFHQWUHDW9DVDL%UDQFK3UHPLVHVIRU&37,3&&)LQDO6WXGHQWV
First time Branch organized Garba Dhoom celebration on 4th October 2014 at Mhatrewadi Ground, Bhayandar (E)
792 Students successfully completed their ITT training from ITT Center of Branch during the years.
870 Students successfully completed Orientation Course from Branch during the year.
1862 Students successfully completed GMCS-I Course from Branch during the year.
319 Students successfully completed GMCS-II Course from Branch during the year.
138 Students successfully completed Old GMCS course from Branch during the year.
Branch has conducted crash courses for IPCC and Final Students.
%UDQFKRUJDQL]HGYDULRXVVHPLQDUOHFWXUHVIRUWKHEHQHÀWRI 6WXGHQWV7RWDO$FWLYLW\
)HOLFLWDWLRQSURJUDPVIRU1HZO\TXDOLÀHG&$VRQWK0DUFKWK1RYHPEHU
Branch successfully organized an event of Youth Festival to encourage the students’ caliber in other activities.
Branch also emphasizes on Students’ talent education by organizing the activities like School Level Debate Competition
& Quiz Elocution.
Branch also conducted Mock Test for CPT, IPCC & Final Students.
Branch conducted Indoor & Outdoor games for Students such as Cricket match etc.
Branch is successfully running E-Library & Reading Room Facility for students.
Branch also conducted Motivational Lectures for Students.
Branch conducted Joint Seminar with Rajput University, S N Colleges & Madurai Kamaraj University.
Branch conducted Yogathon Challenges – An Art of Living on 14th Dec 2014 at DKS Vasai Hostel, Evershine,
Vasai Road (E).
Branch also conducted Educational Visit and Industrial Visit on important place such as Bombay Stock Exchanges, Vasai
Janta Sahakari Bank, Income Tax, Iskon Temple, Keshav Shrusti-Uttan and many more.
Activities For Society
1.
Campaign by Vasai Branch jointly with Jesal park Residence Association on 23rd November 2014 join hands in Swachh
Bharat Abhiyan at Jesal Park, Bhayandar(E) more than 300 Members participated and requested people to keep their
society and surroundings clean.
2.
Three Blood donations Camp jointly with Lions Club, JCF & Vishwa Hindu Parisad during the year.
3.
Friendly Cricket Tournament organised in between Doctors, Advocates, Police Department, News Reporters and CA
Members on 9th February 2014.
4.
First time, Vasai Branch organized CA Daud on 23rd February 2014 at Jesal Park Chowpatty, Bhayandar(E) wherein 230
plus CA Members & CA Students participated.
5.
Branch Organised Tax Awareness Program for common Public jointly with JCF on 13th July 2014.
6.
Free Distribution of Books among the children’s of Adivasi School on 7th July, 2014.
7.
Food, Clothes Distributed to Under Privileged & Old Age Home on 27th July, 2014 at Father Wadi, Vasai Road( W).
%UDQFKFRQGXFWHGYDULRXV&DUHHU&RXQVHOLQJIRUWKHEHQHÀWRI 6WXGHQWVZLWKWKHKHOSRI HIÀFLHQWIDFXOW\
9.
Two Investor Awareness Programs held during the year at Mira-Road & Bhayander
10. Around 40 Tree Planted at Jesal park Chowpatty, Bhayander (East) in the presence of Ms. Suman Kothari-Mira Bhayander
Corporator.
11. Branch organized Three Union Budget Meetings for Public Awareness.
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
Jan-Feb 2015
5
FORTHCOMING PROGRAMMES
FORTHCOMING PROGRAMMES FOR MEMBERS
Date
Seminar on
Timings
Venue
Speakers
Co-ordinators
8th Feb 2015
Orientation Programme for
1HZO\4XDOLÀHG&$
(Campus Placement)
_
GCC Club,
Mira Road (East)
_
CA. Preksha Jain
CA. Ramanand Gupta
CA. Dayaram Paliwal
CA. Sumeet Doshi
9029877140
9322231113
9820331010
9896525956
_
_
13th & 14th Feb
2015
Campus Interview For for
1HZO\4XDOLÀHG&$
9.30 a.m.
to 5.30 p.m.
GCC Club,
Mira Road (East)
_
CA. Umesh Mestry
CA. Preksha Jain
CA. Vimal Agarwal
CA. K B Kothari
9320473468
9029877140
9320617447
9594196090
_
_
20th &
21st Feb 2015
Cricket Tournament between 8.00 a.m.
CA Members, Students, Police to 5.30 p.m.
Department, Press Reporters,
Doctors, Corporators
Indralok Phase-II
Ground,
Bhayandar(E)
_
CA. Umesh Mestry
CA. Preksha Jain
CA. Dayaram Paliwal
CA. Ramanand Gupta
CA. Vimal Agarwal
CA.K B Kothari
CA. Sumeet Doshi
CA. Unmesh Narvekar
9320473468
9029877140
9820331010
9322231113
9320617447
9594196090
9896525956
9821236179
` 1000/per team
_
FORTHCOMING PROGRAMME OF VASAI VIRAR CPE STUDY CIRCLE
Date
Seminar on
Timings
Venue
Speakers
7th Feb. 2015
Investment Perspectives in
Mutual Funds
4.00 p.m. to
7.00 p.m.
Hotel Kubera-Veg Treat,
Opp. Parvati Theatre,
Vasai Road (W)
Mr. Gavi H.
Fees
Co-ordinators
CA. Xavier M. Rajan
CA. Jagadeesh Devadiga
CA. Anadi Bhase
9371720027
9422475945
9890121996
CPE
Fees
CPE
Non member
` 600/-
3 Hrs
Campus Placement Programme
February - March 2015
For Newly Qualified Chartered Accountants
The Institute of Chartered Accountants of India (ICAI) has achieved recognition as a premier
accounting body not only in the country but also globally for its FRQWULEXWLRQLQWKH¿HOGRIHGXFDWLRQ
SURIHVVLRQDOGHYHORSPHQWPDLQWHQDQFHRI high accounting and auditing standards. The Committee
for Members in Industry (CMll) of ICAI has been successfully organizing Campus Placement
3URJUDPPHVIRUWKH1HZO\4XDOL¿HG&KDUWHUHG$FFRXQWDQWVDQGLVSOHDVHGWR announce the next
&DPSXV3ODFHPHQW3URJUDPPHWRUHFUXLW1HZO\4XDOL¿HG CAs During February - March 2015.
Sl No.
1.
2.
3.
4.
5.
6.
6
Centre
Baroda, Coimbatore & Ernakulam
Bhubaneswar, Chandigarh, Kanpur & Vasai
Indore, Nagpur, Navi Mumbai &Thane
Ahmedabad & Jaipur
Pune
Mumbai & New Delhi
7.
Bangalore,Chennai & Kolkata
8.
Hyderabad
Jan-Feb 2015
Dates
12th – 13th February, 2015
13th – 14th February, 2015
16th – 17th February, 2015
18th – 19th February, 2015
19th – 20th February, 2015
16th, 17th, 18th , 19th , 20th, 21st &
23rd March, 2015
18th, 19th, 20th, 21st, 23rd & 24th
March, 2015
19th, 20th, 21st, 23rd & 24th March,
2015
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
DIRECT TAXES – LAW UPDATE
— Compiled by — Haresh P. Kenia
|e-mail:[email protected] |9821351838

Percentage of Government grant for
FRQVLGHULQJ XQLYHUVLW\ KRVSLWDO HWF DV ÀQDQFHG
by Government for the purpose of section
10(23C). [ 370 ITR (ST.)
@7KH&%'7YLGH1RWLÀFDWLRQ1R62(GDWHG
gives Income Tax (13th Amendment) Rules, 2014. It amends
Income Tax Rules, 1962 and inserts rule 2BBB. Rule 2BBB gives the
percentage of government grant for considering university, hospital
HWF DV VXEVWDQWLDOO\ ÀQDQFHG E\ WKH JRYHUQPHQW IRU WKH SXUSRVH
of section 10(23C) of the Income Tax Act for the purpose of sub
clause (iiiab) and (iiiac). It provides that if the government grant to
such university and other educational institution, hospital and other
institution exceeds 50% of the total receipts including any voluntary
contribution of such institution during the relevant previous year,
WKHQLWZLOOEHWUHDWHGDVÀQDQFHGE\WKHJRYHUQPHQW

*XLGHOLQHV IRU QRWLÀFDWLRQ RI D VHPL FRQGXFWRU ZDWHU
IDEULFDWLRQ PDQXIDFWXULQJ XQLW DV VSHFLÀHG EXVLQHVV XV
35AD. [370 ITR (ST.)
Resident undertaking transaction of Rs. 100 Crore can apply
before AAR to determine his tax liability. [369 ITR (ST.) 7]
7KH FHQWUDO JRYHUQPHQW YLGH QRWLÀFDWLRQ QR 62( GDWHG
20/11/2014 and in exercise of the power conferred u/s. 245N(b)
LLD RI WKH ,QFRPH 7D[ $FW KHUHE\ VSHFLÀHV D UHVLGHQW LQ
relation to his tax liability arising out of one or more transactions
valuing Rs. 100 crore or more in total which has been undertaken or
proposed to be undertaken, being such class of person, as applicable
for the purpose chapter XIX – B of the said Act.
Income Tax Settlement Commission (ITSC) – CBDT
FODULÀFDWLRQRQ&LUFXODU1RRI GDWHG>
ITR (ST.)1]
Chapter XIX-A of the Income Tax Act, 1961, contains provisions
relating to settlement of cases by the Income Tax Settlement
Commission (ITSC). The provisions contained in the said Chapter
were amended by the Finance Act, 2007 and a Revised Settlement
Scheme was put in place. Explanatory Circular No. 3 of 2008, dated
12th March, 2008 issued by the CBDT, vide Para 61 (comprising subparas 61.1 to 61.17) deals with the Revised Settlement Scheme.
Para 61.2 of Circular No. 3 of 2008 reads :
&%'7&LUFXODU²86RI WKH,QFRPH7D[$FW>,75
(ST.) 9]
“61.2 Under the existing provisions, an assessee may make an
application to the Commission at any stage of the proceedings in his
case pending before any income tax authorities. After 31st May, 2007,
an assessee can make an application to the Commission only during
WKH SHQGHQF\ RI WKH SURFHHGLQJV EHIRUH WKH $VVHVVLQJ 2IÀFHU ,W
LVIXUWKHUFODULÀHGWKDWDVLQFHLQWLPDWLRQXQGHUVHFWLRQLV
QRWDQDVVHVVPHQWRUGHUWKHUHZLOOEHQREDULQÀOLQJDQDSSOLFDWLRQ
for settlement subsequent to receipt of an intimation under section
143(1). It is not material whether time limit for issue of notice under
section 143(2) has expired or not; (b) the assessment shall be deemed
to have been completed only on the date of service of assessment
order to the applicant.”
The CBDT vide Circular No. 17 of 2014 dated 10/12/2014 deals
with guidelines for the Income Tax deduction from salaries u/s.
192 of the Income Tax Act and contains the rate of deduction of
Income Tax from the payment of income chargeable under the
head “Salaries” during the F.Y. 2014-15 and explains certain related
provision of the Act and Income Tax Rules, 1962. One may refer to
the above magazine for full text of the circular.
It has been inadvertently stated in Para 61.2 of Circular No. 3 of
2008 that the assessment shall be deemed to have been completed
only on the date of service of assessment order to the applicant. This
statement is not in consonance with the provisions contained in the
Explanation to clause (b) of section 245A of the Income Tax Act
which, inter alia, provides that a proceeding for the assessment of
any assessment year shall be deemed to have concluded on the date
on which the assessment is made.
Form of
application for obtaining and advance ruling [369
In view of the above, para 61.2 of Circular No. 3 of 2008 is replaced
with the following with effect from the 1st day of June, 2007:
7KH &%'7 YLGH 1RWLÀFDWLRQ 1R 62( GDWHG gives Income Tax (12th Amendment) Rules, 2014. It amends Rule
44E of Income Tax Rules which provides for form of application
for obtaining an advance ruling. The newly amended rule provides
for payment of prescribed fees for an application u/s. 245N(b) of
the Income Tax Act. It inserts new Form 34DA being form of
application by resident applicant referred to section 245N(b) (iia)
seeking advance ruling u/s. 245Q (1) of the Income Tax Act, 1961
in relation to a transaction undertaken or proposed to be undertaken
by him.
“61.2 Under the existing provisions, an assessee may make an
application to the Commission at any stage of the proceedings in his
case pending before any income tax authorities. After 31st May, 2007,
an assessee can make an application to the Commission only during
WKH SHQGHQF\ RI WKH SURFHHGLQJV EHIRUH WKH $VVHVVLQJ 2IÀFHU ,W
LV IXUWKHU FODULÀHG WKDW D VLQFH LQWLPDWLRQ XQGHU VHFWLRQ LV
QRWDQDVVHVVPHQWRUGHUWKHUHZLOOEHQREDULQÀOLQJDQDSSOLFDWLRQ
for settlement subsequent to receipt of an intimation under section
143(1). It is not material whether time-limit for issue of notice under
section 143 (2) has expired or not; (b) the assessment shall be deemed
to have been completed on the date on which the assessment order
is passed.”
@7KH&%'7YLGH1RWLÀFDWLRQ1R62(GDWHG
gives Income Tax (14th Amendment) Rules, 2014. It amends Income
Tax Rules and inserts new rule 11-OB. The Rule 11-OB prescribed
WKHJXLGHOLQHVIRUQRWLÀFDWLRQRI DVHPLFRQGXFWRUZDWHUIDEULFDWLRQ
PDQXIDFWXULQJXQLWDVVSHFLÀHGEXVLQHVVXV$',WSURYLGHVIRU
QHZ)RUP&6EHLQJDSSOLFDWLRQIRUQRWLÀFDWLRQRI DVHPLFRQGXFWRU
ZDWHUIDEULFDWLRQPDQXIDFWXULQJXQLWDVVSHFLÀHGEXVLQHVVXV$'
ITR (ST.) 2]
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
Jan-Feb 2015
7
RECENT CASE LAWS & –
OTHER DEVELOPMENT/AMENDMENTS
— Compiled by — CA. Hemant R. Shah |
e-mail: [email protected] |9869011148
HIGH COURT DECISIONS
1) Donaldson India Filters Systems Pvt.
Ltd. vs. DCIT (Delhi High Court)
Section 147: Assessment cannot be reopened in the
absence of “fresh material”
Undoubtedly, Explanation-1 to section 147 indicates that
mere production of account books or other evidence
EHIRUHWKH$VVHVVLQJ2IÀFHU$2ZRXOGQRWQHFHVVDULO\
amount to disclosure of the material information by
WKH DVVHVVHH %XW WKHQ WKH H[SODQDWLRQ FODULÀHV WKH
said general refrain by the words “not necessarily”.
Therefore, the burden is equally placed on the AO to
exercise due diligence in examining the record (account
books or evidence) produced before him in the light
of declarations made in the return or responses (to the
notices, questionnaire etc.). As has been noted above, the
sine quo non for action U/s 147 is gathering or availability
of some “tangible material” requiring the matter to be reopened;
The Order passed by the AO extracted above unmistakably
shows that even at that stage it had no fresh material
available to it so as to exercise the jurisdiction available
U/s 147/148. It was, thus, taking a fresh call on the subject
of assessment of income (i.e. re-assessment), drawing
conclusions and inferences from the same very material
that had been scrutinized in the original assessment
proceedings. The case at hand is concededly not covered
by other exceptions as indicated by 2nd & 3rd proviso or
explanation to Section 147.
TRIBUNAL DECISIONS
1) Schrader Duncan Limited vs. ACIT (ITAT
0XPEDL'DWHRI SURQRXQFHPHQW
,I WKH +LJK &RXUW DGPLWV WKH $SSHDO 8V $ LW
PHDQV WKDW WKH LVVXH LV GHEDWDEOH DQG SHQDOW\ 8V
271(1)(c) cannot survive:
Without going into much deliberation & merits of the
case, now question arises since the substantial question of
law “whether on the facts & the circumstances of the case
DQGLQODZWKH7ULEXQDOZDVMXVWLÀHGLQKROGLQJWKDWWKH
appellant was not entitled to claim the loss of Rs.6.34 crore
arising on conversion of UTI US 64 units in to 6.75% Tax
Free Bonds of UTI?” has been admitted by the Hon’ble
jurisdictional High Court, vide Order dated 19/09/2014,
now question arises whether penalty u/s 271(1)(c) of the
Act survives when the addition has become debatable? We
note that the Hon’ble jurisdictional High court vide order
dated 08/07/2014 in the case of &,7 YV 0V 1D\DQ
8
Jan-Feb 2015
Builders & Developers (ITA No.415/2012) held that no
penalty is imposable u/s 271(1)(c) of the Act. Likewise,
the Tribunal, in the case of 0V 1D\DQ %XLOGHUV Developers Pvt. Ltd. (ITA No.2379/Mum/2009) order
dated 18th March 2011, deleted the penalty. In another
case Advaita Estate Development (P.) Ltd. vs ITO (2013)
409 Taxman.com 142 (Mumbai-Trib.) vide order dated
27/08/2013 deleted the penalty. In view of these facts,
when the Hon’ble jurisdictional High Court has admitted
substantial question of law on the addition, it becomes
apparent that the addition so made has become debatable.
The penalty was imposed on the basis of addition so
made, therefore, when the addition on the basis of which
the penalty was imposed has become doubtful/debatable,
therefore, penalty imposed u/s 271(1)(c) of the Act
cannot survive. Respectfully following the Hon’ble
jurisdictional High Court, the appeal of the assessee is
allowed. However, it is made clear that if at any stage,
the order of the Tribunal on quantum addition is upheld
by the Hon’ble High Court, the Department is free to
proceed in accordance with law on penalty proceedings.
2) ADIT, International Taxation vs. Express Drilling
Systems LLC (ITAT Delhi)
Disallowance U/s 40(a)(ia) can not be made for
mere deduction of TDS under wrong section
IRUH[DPSOHGHGXFWHG8V&LQVWHDGRI VHFWLRQ
194J)
>,7$QR'HO'DWHWK-DQXDU\@
The provisions of section 40(a)(ia) of the Act has two
limbs one is where, inter alia, assessee has to deduct tax
and the second where after deducting tax, inter alia, the
assessee has to pay into Government Account. There is
nothing in the said section to treat, inter alia, the assessee
as defaulter where there is a short fall in deduction. With
regard to the short fall, it cannot be assumed that there is
a default as the deduction is not as required by or under
the Act, but the facts is that this expression, ‘on which
tax is deductible at source under Chapter XVII-B &
such tax has not been deducted or, after deduction has
QRW EHHQ SDLG RQ RU EHIRUH WKH GXH GDWH VSHFLÀHG 8V
139(1). Section 40(a)(ia) of the Act refers only to the duty
to deduct tax & pay to government account. If there is
any shortfall due to any difference of opinion as to the
taxability of any item or the nature of payments falling
under various TDS provisions, the assessee can not be
declared to be an assessee in default U/s 201 of the
Act and no disallowance can be made by invoking the
provisions of section 40(a)(ia) of the Act.

OTHER AMENDMENTS & DEVELOPMENTS:
1) CBEC has amended Rule 5A(2) of Service Tax Rules,
1994 to empower the Chartered Accountants and Cost
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
RECENT CASE LAWS & –
OTHER DEVELOPMENT/AMENDMENTS
Accountant for conducting service tax audits:
For granting such empowerment and for making some
other changes in the Service Tax Rules, 1994, in rule
5A, for sub-rule (2), the following sub- rule shall be
substituted, namely:“(2) Every assessee, shall, on demand make available to
WKH RIÀFHU HPSRZHUHG XQGHU VXEUXOH RU WKH DXGLW
party deputed by the Commissioner or the Comptroller
and Auditor General of India, or a cost accountant or
chartered accountant nominated under section 72A of
the Finance Act, 1994;(i) the records maintained or prepared by him in term of
sub-rule (2) of Rule 5;
(ii) the cost audit reports, if any, under section 148 of the
Companies Act, 2013 (18 of 2013); and
(iii) the income-tax audit report, if any, under section
44AB of the Income-tax Act, 1961 (43 of 1961), for
WKHVFUXWLQ\RI WKHRIÀFHURUWKHDXGLWSDUW\RUWKH
cost accountant or chartered accountant, within the
WLPH OLPLW VSHFLÀHG E\ WKH VDLG RIÀFHU RU WKH DXGLW
party or the cost accountant, as the case may be.”
The following changes have been taken place in the
aforementioned rule if comparison made with the old
provisions:
S.No. Particulars
1.
2.
Earlier
Provisions
2IÀFHUV
2IÀFHUV
Empowered authorized
under sub-rule
2. the audit
party deputed
by the
Commissioner
or the
Comptroller
and Auditor
General of
India
Cost audit
report
Not required
to be
furnished
Substituted
Provisions
2IÀFHUV
empowered
under sub-rule
2. or the
audit party
deputed by the
Commissioner
or the
Comptroller
and Auditor
General of
India
3. Cost
Accountant
or Chartered
Accountant
Cost audit
report may be
required to be
furnished
3.
Time
Limit for
submission
of
documents
Within
reasonable
time but not
exceeding 15
days
No time limit
specify
&ODULÀFDWLRQRQSURFHGXUHRI 6HUYLFHWD[UHIXQG
exemption to SEZ:
As per the existing provisions, Special Economic Zone
(SEZ) Unit or developer has to approach two authorities
i.e. the SEZ Authority and the Jurisdictional Service Tax
$XWKRULW\ IRU XSIURQW H[HPSWLRQ XQGHU 1RWLÀFDWLRQ
1R67 GDWHG -XO\ WKH 1RWLÀFDWLRQ DV
amended.
,Q RUGHU WR UHPRYH WKH GLIÀFXOWLHV WKH 0LQLVWU\ RI Finance, Department of Revenue vide Instruction F.No.
%758GDWHG1RYHPEHUKDVFODULÀHG
that SEZ units and developers may route their application
for issuance of authorization by the Department through
WKHVSHFLÀHGRIÀFHURI 6(=LQVWHDGRI VXEPLWWLQJGLUHFWO\
to the Department. Similarly SEZ units and developers
may also route quarterly statement in Form A-3 through
WKH VSHFLÀHG RIÀFHU LQ WKH 6(= ,W KDV EHHQ IXUWKHU
FODULÀHGWKDWWKH1RWLÀFDWLRQGRHVQRWSXWDQ\UHVWULFWLRQ
in this regard.
)1R%758'DWHGWK1RYHPEHU
3) TDS on Salary for Assessment Year 2015-16
CBDT has released Circular No.: 17/2014 Dated 10th
December, 2014. Circular contains the rates of deduction
of income-tax from the payment of income chargeable
under the head ‘Salaries’GXULQJWKHÀQDQFLDO\HDU
15 and explains certain related provisions of the Act and
Income-tax Rules, 1962 (hereinafter the Rules). Circular
helps employer to correctly deduct TDS on Salary of its
employees for Financial year 2014-15 or A.Y.2015-16 and
it also helps salaried assessees to correctly calculate his/
her tax liability. Circular explain provisions related to all
components of Salary and their taxability- which includes
DOORZDQFHV SHUTXLVLWHV UHWLUHPHQW EHQHÀWV DQG RWKHU
EHQHÀWV
4) Online facility to provide response against
outstanding Income Tax demand:
The facility to provide response against outstanding tax
demand is made available to the assessee in the e-Filing
portal. After Login on KWWSVLQFRPHWD[LQGLDHÀOLQJ
gov.in, select e-File then select Response to
Outstanding Tax Demand and the most appropriate
options may be selected to provide response.
Three types of responses can be submitted by the
options available:
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
Jan-Feb 2015
9
RECENT CASE LAWS & –
OTHER DEVELOPMENT/AMENDMENTS
D 'HPDQG LV FRUUHFW ,I \RX FRQÀUP ´GHPDQG LV
correct” then you cannot “disagree with the demand”
5) Format of Audit Engagement Letter for Audit of
Financial Statements under the Companies Act, 2013
(b) Demand is partially correct: If this option is chosen,
you are required to specify amount which is correct
The Auditing and Assurance Standards Board (AASB) is
issuing the following illustrative formats for engagement
letter for audit of Financial Statements under the
Companies Act, 2013 and the Rules thereunder. These
illustrative formats were approved by the Council of the
Institute of Chartered Accountants of India (ICAI) at
its Meeting held in November 2014. These illustrative
formats would be added to the Appendix 1 of Standard
on Auditing (SA) 210, ‘Agreeing the Terms of Audit
Engagements’, issued by ICAI.
(c) Disagree with Demand: If this option is chosen, you
are required to select one of the following reasons
and provide requisite details:
(i)
Demand Paid: provide challan payment details
LL 'HPDQG DOUHDG\ UHGXFHG E\ UHFWLÀFDWLRQ
provide details of the Order
(iii) Demand reduced by Appellate Order: provide
Order details
LY $SSHDOÀOHG3URYLGHGHWDLOV
Y 5HFWLÀFDWLRQ5HYLVHG 5HWXUQ ÀOHG SURYLGH
details
YL 5HFWLÀFDWLRQ ÀOHG ZLWK $VVHVVLQJ 2IÀFHU
provide application details
(vii) Others: write reasons
6) Ministry has brought out amendments relating to
Corporate Social Responsibility and consolidation
RI ÀQDQFLDO VWDWHPHQWV IRU FRPSDQLHV KDYLQJ IRUHLJQ
subsidiaries. Also certain procedural amendments relating
to resignation of foreign director and publishing E-form
(AOC-5) for intimating Registrar regarding the address
where books of accounts are maintained, have been
introduced.
Ten Million a Minute Contest
Team of 4 comprising of A Chartered Accountant-cum-entrepreneur from Vasai Branch of WIRC and 3 IIT Bombay
students-cum-entrepreneurs who became the winners of “Ten Million a Minute Contest” at the Entrepreneurship
Summit 2015 held at IIT Bombay and received an initial funding of INR 1 million from various angel investors.
+HDUWLHVW &RQJUDWXODWLRQ WR RXU 1HZO\ 4XDOLÀHG &$ 1LGKL .RWKDUL DQG .XGRV WR KHU IRU UHGHÀQLQJ :RPHQ
Entrepreneurial Roles and giving a new outlook to the Chartered Accountant Profession.
10
Jan-Feb 2015
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
PHOTO - GALLERY
&HUWLÀFDWH&RXUVHRQ,QGLUHFW7D[HVKHOGRQWK2FWWRWK'HFDW%KD\DQGHU
Adv. Bharat Raichandani
Adv. Sushanth Murthy
CA Ashit Shah
CA. Archit Agarwal
CA. Bharat Gosar
CA. Girish Raman
CA. Govind Goyal
CA. Jayesh Gogri
CA. Keval Shah
(L-R) : CA. K. B. Kothari (Committee Memebr), CA. Jayesh Gogari (Speaker),
CA. Umesh Mestry (Vice-Chairman) CA. Vimal Agarwal (Committee Memebr),
CA. Kishor Vaishnav (Chairman Vasai Branch) addressing the participants
Participants
CA. Manish Gadia CA. Naveen Rajpurohit CA. Ravi Yanamandra CA. Sunil Gabhawala
Mr. J. N.Tiwari
CA. Vinod Awtani
CA.Rajiv luthia
Shri Bhupender Singh
WK%DWFKRI &HUWLÀFDWH&RXUVHRQ&RQFXUUHQW$XGLWVRI %DQNVKHOGRQWK'HFWRWK-DQDW0LUD5RDG(
(L-R) : CA. K. B. Kothari (Committee Member), CA. Umesh Mestry (Vice - Chairman), CA. Uday Kulkarni (Speaker), CA. Kishor Vaishnav
(Chairman - Vasai Br.), CA. Shriniwas Joshi (CCM & Vice Chairman-IASB), CA. Vimal Agarwal (Committee Member) & CA. Dayaram Paliwal
(WICASA Chairman) at the dais.
CA. Kishor Vaishnav
(Chairman Vasai Br.) presenting
Mementoe to CA. Shriniwas Joshi
(CCM & Vice Chairman-IASB)
Group Photo
CA. Dhananjay J. Gokhale
CA. Kuntal P. Shah.
CA. Uday Kulkarni
CA. Uday Sathaye
CA. Vinodchandra Vyas
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
Mr. R. H. Danane
Shri Pradeep Agrawal
Jan-Feb 2015
11
PHOTO - GALLERY
Career Counseling at S. N. College, Bhayander (East) held on 12th Dec 2014
Speakers
Joint Seminar with S. N. College, Bhayander (East) held on 12th Dec 2014
Yogathan held on 14th Dec 2014
12
Jan-Feb 2015
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
PHOTO - GALLERY
Sports Competition held on 21st to 25th Dec 2014
Industrial Visit at Police Department, Mira Road (East) held on 7th January 2015.
One Day Seminar on Accounting Standard 12 and Wealth Tax held on 28th Dec 2014
(L-R) : Ms. Aawad Bithu (Coordinator), Mr. Lalit Sharma (Treasurer),
CA. Shakuntla Chhangani (Speaker), Mr. Khushmat Jain (Branch Incharge) at the dais.
Ms. Pinky Mistry (Vice Chairperson Vasai WICASA) Presenting Mementoe to
CA. Bhanwar Borana (Speaker)
Speakers
Participants
CA. Shakuntla Chhangani
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
CA. Bhanwar Borana
Jan-Feb 2015
13
PHOTO - GALLERY
Intensive Course on Companies Act, Service Tax & Mvat held on 6th to 13th Dec 2014
Participants
(L-R) : CA. Manikyam Darisipudi, CA. Pramod Dhamankar (Speaker),
CA. Dayaram Paliwal (WICASA Chairman-Vasai Br.) at the dais.
Speakers
CA. Durgesh Kabra
CA. Jayesh Gogri
CA. Pramod Dhamankar
CA. Subhash Chhajed
CA. Sushrut Chitale
Seminar on Project Financing held on 14th Dec 2014
(L-R) : CA. K. B. Kothari (Committee Member), CA. Rajesh Sharma (Speaker),
CA. Kishor Vaishnav (Chairman), CA. Santosh Sharma (Coordinator) &
CA. Dayaram Paliwal (WICASA Chairman) addressing the participants.
Participants
Speakers
CA. Rajesh Sharma
Mr. Ramesh Kelkar
Shri Tarlochansingh Shri. Kalyanaraman
14
Jan-Feb 2015
(L-R) : CA. Preksha Jain (Secretary & Treasurer), Shri Tarlochansingh (Speaker),
CA. Dayaram Paliwal (WICASA Chairman), CA. Santosh Sharma (Coordinator) at the dais
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
PHOTO - GALLERY
Enabling Service Tax & GST Practice held on 16th to 21st January 2015
(L-R) : CA. Vimal Agarwal (Committee Member), CA. Ashit Shah (Speaker), CA. Kishor Vaishnav
(Chairman), CA. K. B. Kothari (Committee Member) & CA. Lalit Bajaj (Past Chairman) at the dais.
Participants
Speakers
CA. Ashit Shah
CA. Bharat Gosar
CA. Jayesh Gogri
CA. Kewal Shah
CA. Manish Gadia
Cricket Tournament with Police Department held on 3rd January 2015
Cricket Tournament Jointly with Thane Branch held on 29th December 2014
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter
Jan-Feb 2015
15
PHOTO - GALLERY
Celebration of Branch 9th Annual Day held on 21st December 2014
Editor: CA. Kishor Vaishnav Published by Vasai Branch of Western India
Regional Council of The Institute of Chartered Accountants of India and
printed at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est.,
Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 4036 4600
The views and opinions expressed or implied are those of the authors or
contribution and do not necessarily reflect those of Vasai Branch. Unsolicited
articles and transparencies are sent in at the owner’s risk and the publisher
accepts no liability for loss or damage. Material in this publication may not
be reproduced, whether in part or in whole, without the consent of Vasai
Branch.
DISCLAIMER: The Vasai branch is not in any way responsible for the result
of any action taken on the basis of the advertisement published in the
Newsletter. The members, however, may bear in mind the provision of the
Code of Ethics while responding to the advertisements.
Printed by Finesse • +91-22 4036 4600
16
Jan-Feb 2015
To
Undelivered please return to :
The Institute of Chartered Accountants of India,
Vasai Branch of WIRC
Address: Amruta Building, Indralok Phase-II,
New Golden Nest Road, Bhayander (East), Thane - 401 105.
Telephone: 6556 8900.
Email: [email protected]
Website: www.vasai-icai.org
The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter