Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ACCOUNTING STANDARDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT Audit :: ACCOUNTING STANDARD :: cpt :: VAT RATES :: Central Excise rule to resale the machines to a new company :: empanelment :: form 3cd :: list of goods taxed at 4%
« General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

I-T dept cant tax research work
July, 25th 2009

The Bombay High Court, in a recent order, came down heavily on the Income-Tax Department, which unilaterally injected an application for exemption for scientific and industrial research, without seeking guidance of experts on the matter. Tax authorities do not have the jurisdiction to decide on the issues pertaining to scientific research, according to a division bench of the HC comprising FI Rebello and JH Bhatia.

The observation was made while deciding on an appeal filed by Mumbai-based Indian Planetary Society (IPS), which claims to carry out planetary research, astrophysics, solar physics etc. IPS moved the HC, after the I-T Department declined to approve the body even after being accorded the status of Scientific and Industrial Research Organisation (SIRO), by the Department of Scientific & Industrial Research of the ministry of science & technology.

The division bench pointed out that since the tax authorities do not have the required expertise to evaluate scientific research activities, it should have sought the advise of experts in the field before coming to a conclusion that a particular body has been genuinely carrying out the research activity. Any decision on such matters, taken without the guidance of experts in the filed, would be vitiated, the HC observed.

The tax authorities did not furnish any reasons for rejecting the application. It merely said IPS did not meet the requirements under Section 35 (1) (11) of the I-T Act, which deals with deductions for expenditure incurred on scientific and industrial research. The communication from CBDT to the IPS reads, The basic requirement under Section 35 (1) (11) of the I-T Act undertaking adequate scientific research activity is not fulfilled.

The division bench held that CBDT, which has the officers of the Income-Tax Department, is hardly an authority to decide whether an organisation is actually doing the scientific research or not. The HC pointed out that it is the central government which has the authority on such matters. The court also pointed out that recognition by the ministry of science and technology entails IPS to customs & excise deduction.

The HC further held that the authority to grant permission to such an organisation is of the Government of India and not CBDT. Nothing has been shown before us to show that, CBDT under the business rules of the Government of India, has been allowed to discharge functions of the government under Section 35 (1) (11).

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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