Visit For Latest Updates, Notifications & Study Material of the Programmes

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1 Price 2/- (for members only) CITC NEWS The Chamber of Tax Consultants Vol. XIV No. 8 For private circulation only June, 2014 Visit For Latest Updates, Notifications & Study Material of the Programmes NOTICE OF THE ANNUAL GENERAL MEETING Notice is hereby given that the Eighty Seventh Annual General Meeting of THE CHAMBER OF TAX CONSULTANTS will be held at Terrace Hall, West End Hotel, New Marine Lines, Mumbai on Friday, 4th July, 2014 at 4.30 p.m. to transact the following business: AGENDA 1. To consider the Annual Report of the Managing Council for the year To consider and adopt the audited accounts for the year ended 31st March, To appoint auditors for the year and fix their honorarium. 4. To declare results of the election of President and thirteen Members of the Managing Council. 5. To transact any other business with permission of the Chair. Place : Mumbai Dated : 16th April, 2014 Notes: FOR AND ON BEHALF OF THE MANAGING COUNCIL Forthcoming Programmes Committee Date Pg. Nos. Sd/- HITESH SHAH HINESH DOSHI Hon. Jt. Secretaries Office: 3, Rewa Chambers, 31, New Marine Lines, Mumbai As per the decision taken at 85th Annual General Meeting, Annual Report would be circulated in electronic form only. It would also be available on the Chamber s website after 9th June, Any member desiring physical copy can send written request and get it collected from Chamber s office after 9th June, Alternatively, they can also send written request for sending it by post or courier. 2. If there is no quorum by 4.30 p.m., the meeting will be adjourned for half an hour and the members present at such adjourned meeting shall form the quorum. 3. The members are requested to send their queries, in writing, if any, on the Statements of Accounts and Annual Report for the year to the Hon. Jt. Secretaries at least four days before the day of the Annual General Meeting. Intensive Study Group on Direct Taxes Direct Taxes (Only for ISG Members) Notice of Election Study Group Meeting (Only for SG Members) Study Circle & Study Group th Residential Conference on International Taxation, 2014 International Taxation 19 to Study Course on The Companies Act, 2013 Corporate Members & 12, 13, 24, 27 & Allied Laws Transfer Pricing Study Circle Meeting International Taxation FEMA Study Circle International Taxation Last Week of June Notice of The Annual General Meeting CTC - Online Payment for Membership Renewal and Events 2 Renewal Notice Unreported Decisions, June President : Yatin Desai (Tel.: ) Vice President : Paras Savla (Tel.: ) Hitesh Shah (Tel.: ) Hinesh Doshi (Tel.: ) Hon Jt. Secretaries Avinash Lalwani (Tel.: ) Hon. Treasurer 1

2 NOTICE OF ELECTION To The Members, The Chamber of Tax Consultants, Mumbai The election of the President and Thirteen Members of the Managing Council for the ensuing year shall take place on Saturday, 14th June, 2014 at the Office of the CTC, 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai Nominations in the prescribed form should be filed so as to reach the office of the CTC not later than 6.00 p.m. on Tuesday, 3rd June, The nomination forms shall be available at the CTC office from Tuesday, 20th May, FOR AND ON BEHALF OF THE MANAGING COUNCIL Sd/- Sd/- Place: Mumbai HITESH R. SHAH / HINESH R. DOSHI Dated: 16th April, 2014 Hon. Jt. Secretaries Office : 3, Rewa Chambers, 31, New Marine Lines, Mumbai Notes: 1. Only Ordinary and Life Members are eligible to vote at the election. 2. A Member who has completed at least two full years as a member shall be entitled to contest the election for Managing Council or to propose or second a candidate for the election. Each member can propose not more than three candidates. 3. Members in arrears of membership subscription shall not be entitled to contest the election or to propose or second any candidate for the election or to vote at the election. 4. Withdrawal of nomination for the elections can be made by the candidate on or before 6.00 p.m. on Friday, 6th June, If elections are required to be held, the names of the valid candidates shall be intimated through the website of the Chamber as well as through the Notice Board at the Chamber s office. The Members are requested to check through these mediums. 6. If elections are not required to be held, due to any reason whatsoever, the same shall be intimated through the website of the Chamber as well as through the Notice Board at the Chamber s office. The Members are requested to check through these mediums. 7. The voting, if required, will commence at a.m. and end at 5.00 p.m. Dear Members, CTC - ONLINE PAYMENT FOR MEMBERSHIP RENEWAL AND EVENTS The Chamber in its march towards more and more use of technology, has activated the payment gateway module on its website for the use by the members. The payment gateway module will be activated in phases. At present Members can make payment on line for renewal of membership and programmes and events. We will activate more features in next phase. Members are requested to visit the website to make use of the payment gateway. Online Payment Gateway will be fine tuned continuously, as introduction of new features will require some changes. In case you face any problem while making the online payment, please do communicate to us to enable us to address the same. Thanks & Regards, For The Chamber of Tax Consultants Sd/- Hitesh R. Shah Hon. Jt. Secretary 2

3 CITC NEWS 8 TH RESIDENTIAL CONFERENCE ON INTERNATIONAL TAXATION, 2014 mbersyour e M r a or De k You fing n a h T We verhelm O nse. Respo 19TH JUNE, 2014 TO 22ND JUNE, 2014 INTERNATIONAL TAXATION COMMITTEE Limited Seats Available Chairman : Paresh Shah Vice-Chairman : Naresh Ajwani Convenors : Devendra Mehta, Rajesh L. Shah Conference Co-ordinators : Devendra Mehta, Rajesh L. Shah and Rutvik Sanghvi International Taxation is on the cusp of a sea-change in terms of its scope & enforcement. The application of General Anti-Avoidance Rules; proposed action by OECD under BEPS project; landmark decisions in taxation of IPRs & Transfer Pricing and recent changes in regulatory and tax laws related to FDI will require all of us to have a relook at the fundamental ground rules in International Taxation. The Committee has planned its 8th Annual Residential Conference on International Taxation to focus on these key changes from 19th June to 22nd June, 2014 at the Novotel Hyderabad Convention Centre. The hotel features all daydining & speciality restaurants, spa fitness centre. The Hotel is connected to South Asia s finest convention centre Hyderabad International Convention Centre offering state of the art exhibition, meeting and convention services. Overlooking a lake, the hotel is set in 15 acres of landscaped grounds and is strategically located in HITEC city, Hyderabad s IT and Business district. Group Discussion Faculties Case Studies on taxability of EPC contracts and related issues of AOP, Consortium, offshore services and presumptive tax provisions including Sections 44BBB, 44DA & 44BB Dr. Anita Sumanth, Advocate Structuring of FDI Interplay with other laws CA Anup P. Shah Case Studies on International Taxation and Transfer Pricing CA H. Padamchand Khincha Brains Trust On Practical Issues in International Taxation Chairman CA K. C. Devdas Brains Trustees Mr. Nitesh Joshi, Advocate & CA Jayesh Sanghvi Emerging controversies in Taxation of Software, IPRs & E-Commerce (Tax and Non-Tax Issues) Mr. Arvind Datar, Sr. Advocate International Tax structuring under GAAR and other Anti Abuse Provisions including OECD s BEPS action plan Way Forward CA Shefali Goradia Recent issues, trends and jurisprudence in Transfer Pricing Indian & Global perspective CA Vijay Iyer Papers for Presentation Conference Fees For Members of CTC For Non-Members of CTC ` 13,750 + ` 1,700 (S. Tax) = ` 15,450/- ` 14,750 + ` 1,823/- (S. Tax)= ` 16,573/- Fees for Non-Residential Delegates (Enrolment Open) ` 5,618/- (Fees ` 5,000 + Service - ` 618/-) (Includes Course Material and Lunch on 20th/21st /22nd June, 2014) 3

4 Notes: 1. Conference will start at 2.30 pm on 19th June preceded by lunch from 12 noon onwards. It will end on 22nd June by 2.00 p.m. followed by lunch. Hyderabad Airport is about 45 minutes to 1 hour from the Hotel. Participants are requested to book their tickets accordingly. The delegates are requested to make their own arrangements to reach the conference venue. Cab facilities are available at the Hyderabad Airport. Drop facility to Airport/Railway station will be available on last day of the conference, i.e., on 22nd June, Conference fee is inclusive of 3 Nights 4 Days accommodation on double occupancy basis in Standard AC Room, including meals for all 4 days, course materials, and use of certain hotel facilities on complementary basis. 3. In case of cancellation, no refund request shall be entertained, except under genuine unavoidable circumstances, subject to the approval of the International Tax Committee. 4. For enrolment please contact Mr. Hitesh Shah at the CITC Office at / Interested members may download the form from the Chamber s Website or may collect it from the Chamber s office and send it along with the cheque in favour of The Chamber of Tax Consultants. Outstation members are requested to send the DD/at par cheque. INTENSIVE STUDY GROUP ON DIRECT TAXES (ONLY FOR ISG MEMBERS) Day & Date Time Speaker Topics : Wednesday, 11th June, 2014 : 6.00 p.m. to 8.00 p.m. : Mr. Rahul Hakani, Advocate : Recent Important Decisions under Direct Taxes Venue : Kilachand Hall, 2nd Floor, IMC, Churchgate, Mumbai The decisions for the meeting will be circulated by to all the ISG members in due course. Members are requested to study decisions before the meeting so that optimum use can be made of the discussion at the meeting. Your active participation in the meeting is desired for the success of the programme. ISG Chairman DIRECT TAXES COMMITTEE : Ajay Singh Vice Chairman : Ketan Vajani Convenors Advisor : Bhavik Shah Dinesh Poddar : Dr. K. Shivaram STUDY GROUP MEETING (ONLY FOR SG MEMBERS) Day & Date Subject Speaker Time Venue SG MEETING : Monday, 16th June, 2014 : Recent Judgments under Direct Taxes : Shri Keshav Bhujle, Advocate : 6.15 p.m. to 8.00 p.m. STUDY CIRCLE & STUDY GROUP COMMITTEE Chairman : Haresh Kenia Vice Chairman : Dilip Sanghvi Convenors : Dinesh Shah Paras S. Savla Varsha Galvankar Advisor : Hiro Rai : Conference Room, Consultair Invesments Pvt. Ltd., 20 Down Town, Cambata Bldg., 2nd Floor, S/W Wing, (above Café Coffee Day), Eros Theatre Building, Near Shivsagar Restaurant, 42, M. Karve Road, Churchgate, Mumbai Note : During the Course of the meeting, 5 to 10 minutes will be devoted for discussion on Understanding a Latin legal-term. Study Circle & Study Group Committee, is initiating to briefly explain the meaning of certain Latin legal terms, which are frequently referred in Judicial Pronouncements. Each meeting will have an analysis of one or two such terms, and a reference to the judicial pronouncements where these terms have been referred. It is felt that, though members may be aware of such terms, however, a brief discussion on the same would enable the members to have better understanding and rationale for use of such terms. 4

5 STUDY COURSE ON THE COMPANIES ACT, 2013 STUDY COURSE With the enactment of substantial provisions of the Companies Act, 2013 (the Act) and notification of Rules under various chapters with effect from 1st April, 2014, the Ministry of Corporate Affairs has now crossed the substantial journey to reach the destination of implementation of long awaited law for the Corporate World in India. It is now for the companies and professionals to take this journey forward and ensure implementation of the Act as intended. CORPORATE MEMBERS COMMITTEE Chairman : Vipul Choksi Vice Chairman : Hasmukh Dedhia Convenors : Neha Gada, Mitesh Majithia Advisor : Bhavesh Vora Course Co-ordinator : Kaushik Jhaveri ALLIED LAWS COMMITTEE Chairman : Ashok Sharma Vice Chairman : Jagdish Punjabi Convenors : Ashok Manghnani Vijay Kewalramani Advisor : Pravin Veera After successful completion of the Workshop on the Companies Act, 2013 in the month of March, 2014, the Corporate Members Committee and Allied Laws Committee of the Chamber of Tax Consultants have organised this Programme to have indepth understanding of the provisions of the Act with Rules and to understand the implementation process. The programme is intended to benefit the Members including Corporate Members, Chartered Accountants, Advocates and Company Secretaries, Corporate Executives and other Professionals. The programme is spread across 10 sessions on five half days. Details of the programme are as under: Day, Date & Time : Thursday 12th June, p.m. to 8.00 p.m. Friday 13th June, p.m. to 8.00 p.m. Tuesday 24th June, p.m. to 8.00 p.m. Friday 27th June, p.m. to 8.00 p.m. Saturday 28th June, a.m. to 1.30 p.m. Venue : Conference Room, 20 Down Town, Cambata Building (Eros Cinema Building), 2nd Floor, West Wing, 42 M. Karve Road, Churchgate, Mumbai (Above Café Coffee Day - Entrance near Shiv Sagar Restaurant) Fees : For Members = ` 3,000/- + ` 371/- (ST) = ` 3,371/- For Non-members ` 4,000/- + ` 494/- (ST) = ` 4,494/- Sr.No. Subject Topics Speaker Thursday, 12th June, Incorporation Process Incorporation process and procedure for Private / Public Limited companies/ One Person Company / Companies with Charitable Objects etc. (Section 8 Company) 2 Private Companies, One Person Companies, Small Companies and Section 8 Companies 3 Action plan and transitional provisions under the Act 4 Management, Administration and General Meetings 5 Roles and Responsibilities of Director, Independent Director, Managing Director and Key Managerial Personnel and Board Procedure - Session I 6 Roles and Responsibilities of Director, Independent Director, Managing Director and Key Managerial Personnel and Board Procedure - Session II Provisions relating to Private Companies, One Person Companies, Small Companies and Section 8 Companies changes as compared to the Companies Act, Exemptions and privileges to these companies Inaugural Session CS Janak Pandya CA Sanjeev Shah Driving force for conversion of a Private Limited company to LLP Friday, 13th June, 2014 Action and precaution to be taken made consequent to enactment of the CS Mahavir Lunawat Act. Amendments to be carried out in various documents, approvals to be obtained and additional compliances to be carried out under the Act. Some of the new concepts introduced in the Act. Provisions relating to Acceptance of Deposit and Private Placement. Provisions relating to Management & Administration and General Meeting, CS Rishikesh Vyas Changes as compared to the Companies Act, 1956 and steps needed to be taken for transition. Tuesday, 24th June, 2014 Provisions relating to appointment of Directors, meeting of Board, roles CS Savithri Parekh and responsibilities of the Directors & Managerial Personnel and Board procedure. Appointment and Remuneration of the Managerial Personnel. Changes in these provisions as compared to the Companies Act, Provisions relating to Independent Directors. Their roles and responsibilities vis-à-vis provisions of the Listing Agreement. Friday, 27th June, Accounts and Audit Provisions relating to Financial Statement, Consolidation, Audit and Auditor. 8 Related Parties Transactions Definition of Related Party, provisions relating to Related Parties transactions with special emphasis on Accounting Standard and provisions under the Listing Agreement. 9 Corporate Social Responsibility 10 Penalties, Prosecution, Class Action Suits and other penal provisions Provisions relating to Loans, Advances and Deposits Saturday, 28th June, 2014 CSR provisions in detail, Industry Practice and journey ahead. Provisions relating to penalties and prosecution with respect to Directors, Officers and Professionals. Provisions relating to Class Action Suits. CA Mukund M. Chitale, Former President ICAI CA P. R. Ramesh CA Himanshu V. Kishnadwala CA Rakesh Agarwal, Vice President, Reliance Industries Ltd. Mr. Sanjay Buch, Solicitor and Advocate Interested members may download the form from the Chamber s Website or may collect it from the Chamber s office and send it along with the cheque in favour of The Chamber of Tax Consultants. Outstation members are requested to send the DD/ at par cheque. 5

6 Dear Member, RENEWAL NOTICE SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR It s our privilege to have been of service to you over the years. We truly appreciate and value your association. It s time to renew annual membership and subscription of The Chamber s Journal, Study Group and Study Circle Meetings and other subscription of the Chamber of Tax Consultants ( The Chamber ). The renewal fees for Annual Membership, Study Group and Study Circle and Other Subscription for the financial year was due for payment on 1st April, We thank you for your subscription. Your involvement is important and very much appreciated. Thanking you, For the Chamber of Tax Consultants Avinash B. Lalwani Hon. Treasurer Fees Service Tax & Cess* Total 1. Membership Renewal Fees (for 1 year) ` 1,900/- ` 235/- ` 2,135/- (Including Chambers Journal) 2. The Chamber s Journal Subscription ` 900/- ` 900/- (For Life Members ) 3. The Chambers Journal Subscription ` 1,800/- ` 1,800/- (For Non-Members) 4. Associate Membership ` 2,000/- ` 247/- ` 2,247/- 5. Student Membership ` 250/- ` 31/- ` 281/- 6. The Chamber s Journal Subscription ` 700/- ` 700/- (For Students ) 7. Study Group (Direct Taxes) ` 2,200/- ` 272/- ` 2,472/- 8. Study Circle (Direct Taxes) ` 1,500/- ` 186/- ` 1,686/- 9. Study Circle (Indirect Taxes) ` 1,200/- ` 148/- ` 1,348/- 10. Study Circle (International Tax) ` 1,500/- ` 186/- ` 1,686/- 11. Study Circle (Allied Laws) ` 1,200/- ` 148/- ` 1,348/- 12 Self Awareness Series ` 600/- ` 74/- ` 674/- 13. Intensive Study Group on Direct Tax ` 1,500/- ` 186/- ` 1,686/- 14. Intensive Study Group on ` 2,000/- ` 247/- ` 2,247/- International Taxation 15. All Study Circle & Study Group Meetings ` 11,700/- Less : 10% Discount ` 1,170/- ` 10,530/- ` 1,303/- ` 11,833/- (*) ( Sr. Nos. 7 to 14 ) 16. Study Circle (Sr. Nos. 8 and 11) ` 2,200/- ` 272/- ` 2,472/- (Direct Tax & Allied Laws Combined) Notes: 1. Payments should be made by Account Payee Cheque/Demand Draft in favour of THE CHAMBER OF TAX CONSULTANTS. Outstation members are requested to send payments only by Demand Draft or At Par Cheque 2. A consolidated Cheque/Draft may be sent for all payments. 3. Please also update your Mobile number & Address to ensure receipt of regular updates on activities of the Chamber. 4. Please send the below perforated portion duly filled with latest details along with payment. 5. Please write your full name on the reverse of Cheque/DD. 6. Kindly pay your membership fees by 30th April, 2014 for uninterrupted service of the Chamber s Journal. 7. Subscribers opting to make payment through NEFT, are requested to the acknowledge copy of payment made together with their name, mobile numbers to the Chamber s office, so as to give correct credit to subscribers account. 8. Members are requested to download the Renewal Form from Chamber s website. 9. Renewal Notices are already sent separately and members are requested to fill up the same and send it to the Chambers office along with the cheque. 1. Now Members can make payment online for Renewal of Membership and Programmes and Events. Members are requested visit the website for further details. 2. The details of NEFT payment is as under: In Favour of : The Chamber of Tax Consultants Name of the Bank : Axis Bank, New Marine Lines Branch, Mumbai A/c No. : IFSC Code Account Type : UTIB : Savings Account 6

7 UNREPORTED DECISIONS JUNE 2014 By Shri Ajay Singh, Advocate & CA Ashok Sharma 1. Sec. 254(2): Rectification of mistake Mistake in recording facts Ultimate conclusion arrived by Tribunal is based on wrong recording of facts Order liable to be recalled The Learned Third Member observed that the decision of the Tribunal in sustaining penalty rested on two considerations, one turned out to be factually incorrect. Thus decision of the Tribunal was influenced partly by the incorrect fact. If a factual aspect which is of immense importance on the ultimate decision has not been understood correctly, it is likely to prejudice the ultimate decision of the Bench. In such a situation, it is a duty rather than prerogative of the Bench to recall its order based on such incorrect assumption of fact and thereafter order fresh hearing so that a correct decision can be arrived at based on the correct factual and legal position. M/s. Amzel Ltd. vs. ACIT-6(1) MA No. 583/Mum/2012 dated (Third Member) (Mumbai ITAT), (source: ) 2. Sec. 148 r.w.s. 150: Reopening of assessment Based on Tribunal finding or direction in respect of any other year or period - Beyond six years Not valid During the year ending , (A.Y ) the assessee had entered into a Development agreement. The building was to be completed within 21 months (A.Y ). However the Original Agreement was not materialised and was supplemented by Second agreement prepared on (i.e. A.Y ). The Assessing Officer had assessed the capital gain in A.Y On appeal to Hon ble ITAT the assessee appeal was allowed and held that the amount assessed as capital gains was not liable to be taxed in A.Y In order to dispose of the appeal the Hon ble ITAT incidentally observed that the capital gain should have been assessed in A.Y The Assessing Officer issued notice under Section 148 dated on basis of the observation of ITAT order. On appeal challenging the reopening of assessment the Tribunal held: The observation of the Tribunal for the purpose of deleting the addition in respect of the A.Y cannot be treated to be a finding for reopening the A.Y as the appeal for said assessment year has not been before the Tribunal for adjudication. The observation of the Tribunal that the case of the assessee is to be brought to tax for assessment year and not assessment as done by the assessing officer is incidental for holding the addition made in the year is not justifiable and the same cannot be the basis for having recourse to section 150 of the Act by holding it as finding or direction. Section 150(1) is an exception which brings within its ambit only such cases where reopening of the proceedings may be necessary to comply with an order of the higher authority. Since the observation of the Tribunal that the case of the assessee is to be brought to tax for assessment year , does not require compliance by the authorities below so far as the assessment year is concerned, taking recourse to section 150 of the Act by holding the same as finding of the Tribunal is not legally tenable. Shri Anil Suri v/s. ITO 11(1)(3); A.Y , ITA No. 1640/Mum/2010; dated (Mumbai ITAT), (source: ) 3. Secs. 80-IB(10) Deduction SRA project Proviso - Notification Retrospective effect Entitled to project started in earlier years Assessee had developed a Housing Project at Dharavi, which is a Slum Rehabilitation Project (SRA), as approved by the Government of Maharashtra. One of the conditions laid down u/s. 80-IB(10) is the project size should be more than one acre. However, by Finance Act (No.2) 2004, the legislature has removed the restriction of the project size by a proviso in case of SRA project only. It was submitted that the proviso was inserted to make the provision workable and avoid the difficulty. The proviso was inserted to cure the defect. Subsequently vide notification dated and notification dated 5th January 2011 the SRA projects had been notified by the board. On appeal the Tribunal held: The projects of the assessee are under the slum rehabilitation scheme framed by the State Government of Maharashtra which has been notified by the board notification. The proviso in question has been inserted to relax the condition provided under clauses (a) & (b) of section 80-IB(10) and not for adding any new condition which is otherwise not required for housing projects for availing the benefit of deduction u/s. 80-lB(10). The assessee project is entitled to the benefit of proviso and eligible for deduction. Ramesh Gunshi Dedhia vs. Income Tax Officer Ward 21(1)(2), ITA No. 54/Mum/2012, dated , A.Y.: (Mumbai ITAT) (Source: ) 4. Secs. 48 & 49 Surrender of Tenancy rights Builder allotted Ownership flat Cost of acquisition The assessee had shown sale of flat. The cost of acquisition of the property has been taken by the assessee at ` 3,64,000. The flat which has been sold was allotted to the assessee on , as an alternate accommodation for surrendering her tenancy rights in the old structure by the builder. In lieu of the surrender of the tenancy rights, the builder had offered two flats on ownership basis as permanent alternate accommodation. The AO rejected the assessee s contention and held that under section 48, only the amount actually incurred wholly and exclusively in connection with the transfer of capital asset and the actual cost of acquisition of the asset can be allowed to be deducted from the full value of consideration. On appeal the Tribunal held: It is now quite settled that for the purpose of cost of acquisition under sections 48 and 49, the tenancy rights is to be taken into consideration. This is evident from sub section (2) of section 55. The builder has given the alternate flat to the assessee only by virtue of surrender of tenancy rights by the assessee. Had there been no tenancy rights, the builder would have not offered any flat to the assessee, on ownership basis. Thus, it is a valuable right on which cost of acquisition has to be determined. It is not a case that the cost of acquisition cannot be determined in lieu of the surrender of tenancy right at all. Once the cost of acquisition is determinable, the benefit of such acquisition has to be given while computing the tax on capital gain. Thus, the market value of the said flat as on the date of its possession would be the cost of its acquisition and, accordingly, such cost deductible while computing income by way of capital gains. Mrs. Tauqeer Fatema Rizvi vs. ITO, ITA No. 8862/Mum/2011; dated ; A.Y (Mumbai ITAT), (source: ) 5. CIT vs. Bhogilal Ramjibhai Atara (2014) 222 Taxmann 313 Guj. Remission or Cessation of trading liability Assessing Officer found that creditors had no dealings with assessee and found that debts were outstanding since several years and applied Sec. 41(1) and added amount in income of assessee as deemed income. Tribunal deleted addition. High Court held that section 41(1) would apply in a case where there has been remission or cessation of liability during the year under consideration. In the instant case both elements are missing. Therefore amount in question cannot be added back as a deemed income u/s. 41(1). High Court held that this is one of the strange cases where even if debt itself is found to be non genuine from the very inception at least in terms of sec.41(1) there is no case. Therefore the appeal filed by the revenue was dismissed. 7

8 Regd. No. MH/MR/South-133/ Registered with Registrar of Newspaper for India under R. No. MAHENG/1999/1376 FEMA STUDY CIRCLE INTERNATIONAL TAXATION COMMITTEE Chairman : Paresh Shah Vice Chairman : Naresh Ajwani Convenors : Devendra Mehta Rajesh L. Shah International Taxation Committee of The Chamber of Tax Consultants is pleased to announce formation of a new Study Circle called FEMA Study Circle. The Study Circle is aimed at in-depth analysis of Law, Procedure and jurisprudence with case studies. At least one meeting will be held in a month. Since Study Circle is expected to discuss various issues, the members are expected to: a) Have basic understanding of the FEMA. b) Take active part in the study, and c) Give presentation on the topics allotted to them either on their own or in group with other members of the Study Circle. The Co-ordinators for the Study Circle are Shri Devendra Mehta, Mr. Kartik Badiani & Shri Shreyas Shah. The mentors for this Study Circle is Shri Naresh Ajwani, Shri Anup Shah and Shri Manoj Shah, who has also assured that they will continuously guide the course of the discussion of the Study Circle. First Study Circle meeting will be planned during the last week of JUNE The members can join the Study Circle by making a payment of ` 3,371/- (` 3,000/- + Service Tax ` 371/-) for the period June, 2014 to May, 2015 at the Chamber s office. Interested members please download the Enrolment Form from Chamber s website or may collect it from Chamber s office and send it along with the cheque. Outstation members are requested to send DD/at Par Cheque. TRANSFER PRICING STUDY CIRCLE MEETING (Only for Transfer Pricing Study Circle Members) Dear Members, FEMA STUDY CIRCLE Next meeting of Transfer Pricing Study Circle will be held as under: Day & Date : Thursday, 26th June, 2014 Time : 6.15 p.m. to 8.00 p.m. Venue : Kilachand Hall, 2nd Floor, IMC, Churchgate, Mumbai Topic : Methods of Computing ALP under Transfer Pricing Group Leaders : CA Kinjal Shah and CA Kirit Dedhia This meeting is in continuation of earlier meeting held on 23rd April, Please bring the notes distributed at the last meeting. TP SC MEETING INTERNATIONAL TAXATION COMMITTEE Chairman : Paresh Shah Vice Chairman : Naresh Ajwani Convenors : Devendra Mehta Rajesh L. Shah Co-Ordinators : Vaishali Mane Arun Saripalli, Jigar Saiya Non-receipt of the CTC News must be notified within one month from the date of publication, which is 1st of Every Month. Printed by Shri Kishor Vanjara and published by him on behalf of The Chamber of Tax Consultants (owners), 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai and Printed at Finesse Graphics & Prints Pvt. Ltd.,309, Parvati Industrial Premises, Sun Mill Compound, Lower Parel (W), Mumbai and published at The Chamber of Tax Consultants (owners), 3, Rewa Chambers, 31, New Marine Lines, Mumbai Editor : Shri Kishor Vanjara Posted at Mumbai Patrika Channel Sorting Office Mumbai Date of Publishing 1st of Every Month Date of Posting : 1st & 2nd June, 2014 If undelivered, please return to : THE CHAMBER OF TAX CONSULTANTS To 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai Tel.: / Fax: office@ctconline.org Website: 8