Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT Audit :: form 3cd :: ACCOUNTING STANDARDS :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4%
« News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

Speed money is undisclosed income indeed, says court
October, 03rd 2006
Improper payments or speed money is a common phenomenon and, practically unavoidable facet of Indian business. However, Income of Tax Appellate Tribunal (ITAT) has adjudged such payments to be treated as undisclosed income. Assessee company Ganges Lines Pvt Ltd is acts as agents of foreign shipping companies. During a search operation, it was found that the company had been paying speed money to various government officials and public authorities, accounted in accounts under heads like miscellaneous, expenses, sundry expenses. Foreign travel expenses of its directors were also held to be personal in nature and accordingly, the same was also treated as undisclosed income. The CIT(A) upheld the speed money payment as undisclosed income of the assessee company. But he deleted the addition of foreign travel expenses from the computation of undisclosed income. When the case reached ITAT, it observed that speed money payments were accounted for by the assessee under normal heads of expenses like sundry expenses, miscellaneous expenses. Also, the real nature and character of those payments of speed money was brought to the notice in the course of search. Therefore, debiting those expenses in the books of account and claiming as expenses and reflecting in the statements accompanying regular returns does not exonerate the assessee from the lapse of undisclosed. Hence the said addition is confirmed. The foreign travel expenses of the director were already available in regular books of account and scrutinised by the AO. Also, no fresh materials were collected in the course of search operations for the same. Thus, foreign travel expenses could not be treated as part of undisclosed income. Duty-free licences Various Exports promotion schemes under the EXIM Policy have generated a lot of legal disputes. Apex court settled one such dispute where it held that duty-free import licenses are transferable. Denial of permission from Directorate General of Foreign Trade (DGFT) for transferability of advance licenses for export after fulfillment of stipulated obligations was the cause of the case. Petitioner (Baraka Overseas Traders) had obtained three advance licenses for export of Fresh Frozen Sea foods including Shrimps and PUDs from the Regional Office of DGFT in Hyderabad under EXIM Policy of 1997-2002. Against all the three advance licenses, the appellant filed three separate applications for an endorsement of transferability, which the DGFT refused. Under the Scheme for Duty Exemption Endorsement in the EXIM POLICY for the year 1997 - 2002, the advance licenses carry certain export obligations, and for certain goods the standard input and output norms (SION) for import and export for the grant of the duty-free licenses have been fixed, while for some other goods the norms have not been fixed. The petitioner had applied for licenses under the no norms category and the said licenses were granted by the Licensing Committee. The HC observed that norms did exist for the export product Frozen Marine Products/Frozen Meat packed in packing material made out of LDPE/HDPE/PP Card Board other than Ivory Board, and hence the appellant should have applied in the norms category and not the no norms category. However, the apex court observed that there is no dispute about whether the advance licenses were issued under the norms category or no norms category, in either case the said licenses were transferable under the EXIM POLICY 1997-2002. The only difference between the norms category and no norms category as per clause 7.4 of the Duty Exemption Scheme is that where the SION norms have been published the application is to be given to the Licensing Authority, and where they have not been published the application is to be given to the committee which functions as a recommending authority to the licensing authority. The Supreme Court held that the view taken by the high court as well as the DGFT was clearly erroneous in law. If a license is granted to someone certain rights accrue to the licence holder, and deprivation of such right without a hearing is violation of natural justice, said the court.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions