FINANCE MINISTER'S SPEECH DATED 7-5-2012 ON FINANCE BILL, 2012 : Part 4

Customs and Central Excise

16. A related proposal that has attracted public attention is the imposition of Central Excise duty on unbranded precious metal jewellery at the rate of 1%. Madam Speaker, I would like to reiterate that the levy was well-intentioned and introduced not so much for raising revenue as for rationalization and movement towards GST. However, the outpouring of sentiment both within and outside the House indicates that we are not ready for it. As such, the Government has decided to withdraw the levy on all precious metal jewellery, branded or unbranded, with effect from 17^th March, 2012.

17. The House would recall that certain amendments were proposed in the Customs and Central Excise Law in respect of the classification of offences as cognizable and non-bailable. In response to concerns expressed by Members that the proposal regarding grant of bail only after hearing the public prosecutor is too harsh, I propose to omit this provision entirely. In addition, only serious offences under the customs law involving prohibited goods or duty evasion exceeding Rs.50 lakh, shall be cognizable. However, all these offences shall be bailable.

18. There are a few other proposals relating to rationalization and adjustment of central excise and custom duties which I will place before the House while replying to the debate.

Service Tax

19. As Hon'ble Members are aware, taxation of services has undergone a paradigm shift with the introduction of a Negative List. This initiative has been widely welcomed.

20. The negative list has been drawn keeping in view the federal nature of the polity. Some of the States, through the Empowered Committee of State Finance Ministers, have expressed their concerns. I have decided to address their concerns by making changes in the definition of "service" which will exclude the activities specified in the Constitution as "deemed sale of goods". The definition of "works contract" has also been enlarged to include movable properties.

21. Exemption for specified services relating to agriculture in the Negative List has also been extended to agricultural produce enlarging the scope of the entry.

22. There are some other minor changes in the definitions based on the widespread feedbacks and suggestions that we have received from various stakeholders and are specified in the revised draft.

23. Notifications to give effect to these changes would be issued in due course and laid on the table of the House.

I would now like to hear the views of my colleagues from both sides of the House on the Budget proposals.

FINANCE MINISTER'S SPEECH DATED 7-5-2012 ON FINANCE BILL, 2012 : Part 3

11. It has been proposed in the Finance Bill that any consideration received by a closely held company in excess of the fair market value of its shares would be taxable. Considering the concerns raised by 'angel' investors who invest in start-up companies, I propose to provide an enabling provision in the Income Tax Act for exemption to a notified class of investors.

12. In order to augment long-term low cost funds from abroad for the infrastructure sector, Finance Bill proposes a lower rate of withholding tax of 5% for funding specific sectors through foreign borrowings. To further facilitate access to such borrowings, I propose to extend the lower rate of withholding tax to all businesses. This lower rate of tax would also be available for funds raised through long term infrastructure bonds in addition to borrowing under a loan agreement.

13. The Reserve Bank of India is formulating a scheme for subsidiarisation of Indian branches of foreign banks to ring fence Indian capital and Indian operations from economic shocks external to the Indian economic scenario. To support this effort, I propose to provide tax neutrality for such subsidiarisation.

14. The Finance Bill proposes that every transferee of immovable property (other than agricultural land), at the time of making payment for transfer of the property, shall deduct tax at the rate of 1% of such sum. I have received a number of representations pointing out the additional compliance burden this measure would impose. I, therefore, propose to withdraw this provision for levy of TDS on transfer of immovable property.

15. To curb the flow of unaccounted money in the bullion & jewellery trade, the Finance Bill proposes the collection of tax at source (TCS) by the seller at the rate of 1 per cent of the sale amount from the buyer for all cash transactions exceeding Rs.2 lakh. Responding to the representations made by the jewellery industry that this would cause undue hardship, I propose to raise the threshold limit for TCS on cash purchases of jewellery to Rs.5 lakh from the present Rs.2 lakh. The threshold limit for TCS on cash purchase of bullion shall be retained at Rs.2 lakh. However, it is being clarified that bullion will not include any coin or other article weighing 10 gms or less.

FINANCE MINISTER'S SPEECH DATED 7-5-2012 ON FINANCE BILL, 2012 : Part 2

6. To provide more time to both taxpayers and the tax administration to address all related issues, I propose to defer the applicability of the GAAR provisions by one year. The GAAR provisions will now apply to income of Financial Year 2013-14 and subsequent years.

7. Hon'ble Members are aware that a provision in the Finance Bill which seeks to retrospectively clarify the provisions of the Income Tax Act relating to capital gains on sale of assets located in India through indirect transfers abroad, has been intensely debated in the country and outside. I would like to confirm that clarificatory amendments do not override the provisions of Double Taxation Avoidance Agreement (DTAA) which India has with 82 countries. It would impact those cases where the transaction has been routed through low tax or no tax countries with whom India does not have a DTAA .

8. The retrospective clarificatory amendments now under consideration of Parliament will not be used to reopen any cases where assessment orders have already been finalized. I have asked the Central Board of Direct taxes to issue a policy circular to clearly state this position after the passage of the Finance Bill.

9. Currently, long term capital gain arising from sale of unlisted securities in the case of Foreign Institutional Investors is taxed at the rate of 10% while other non-resident investors, including Private Equity investors are taxed at the rate of 20%. In order to give parity to such investors, I propose to reduce the rate in their case from 20% to 10% on the same lines as applicable to FIIs.

10. To promote further depth of the capital markets through listing of companies, I propose to extend the benefit of tax exemption on long term capital gains to the sale of unlisted securities in an initial public offer. For this purpose, I propose to provide the levy of Securities Transaction Tax (STT) at the rate of 0.2 per cent on such sale of unlisted securities.

FINANCE MINISTER'S SPEECH DATED 7-5-2012 ON FINANCE BILL, 2012 : Part 1

Madam Speaker,

I presented the Budget for the year 2012-13 on 16^th of March, 2012. Since then I have received a large number of suggestions both from within the House and outside. Most of these pertain to tax proposals and range from seeking modification of some proposals to reconsideration or review of certain others. Requests have also been received for granting some fresh reliefs. I express my sincere gratitude to everyone for the interest they have shown in appraising my Budget proposals. I appreciate the valuable suggestions they have made and understand the concerns they have expressed.

2. While I propose to address some of these through amendments to the Bill, a number of concerns relating to indirect taxes can be addressed through notifications. I shall now take up the significant amendments to the Budget proposals.

Direct Taxes

3. I thank the members of the Standing Committee for examining the Direct Taxes Code Bill (DTC) and making valuable suggestions. Some of the proposals in the DTC such as removal of the cascading effect of the Dividend Distribution Tax, allowing Venture Capital to invest in all sectors, introduction of Advance Pricing Agreements and raising the threshold limit for audit and presumptive taxation to Rs. 1 crore which have been endorsed by the Standing Committee, have already been included in the Finance Bill. However, I could not consider all the recommendations of the Committee as the Report was received on 9^th of March, after most of the proposals of the Finance Bill, 2012 had been finalized.

4. In addition, certain provisions relating to a General Anti-Avoidance Rules (GAAR) have also been proposed in the Finance Bill, 2012. After examining the recommendations of the Standing Committee on GAAR provisions in the DTC Bill 2010, I propose to amend the GAAR provisions as follows:

 (i)  Remove the onus of proof entirely from the taxpayer to the Revenue Department before any action can be initiated under GAAR.

(ii)  Introduce an independent member in the GAAR approving panel to ensure objectivity and transparency. One member of the panel now would be an officer of the level of Joint Secretary or above from the Ministry of Law.

(iii)  Provide that any taxpayer (resident or non-resident) can approach the Authority for Advance Ruling (AAR) for a ruling as to whether an arrangement to be undertaken by her is permissible or not under the GAAR provisions.

5. To provide greater clarity and certainty in the matters relating to GAAR, a Committee has been constituted under the Chairmanship of the Director General of Income Tax (International Taxation) to give recommendations for formulating the rules and guidelines for implementation of the GAAR provisions and to suggest safeguards so that these provisions are not applied indiscriminately. The Committee has already held several rounds of discussion with various stakeholders including the Foreign Institutional Investors. The Committee will submit its recommendations by 31^stMay 2012.

Proposed changes in Finance Bill, 2012

1) Withdrawal of TDS on purchase of Immovable Property

2) Retrospective amendment to Sec. 9 not applicable where assessment order already passed

3) GAAR : Provisions postponed, now effective from 01-04-2014

4) GAAR : Provisions as to onus of proof shifted to revenue

5) GAAR : Advance Ruling applicable to GAAR cases

6) GAAR : Constitution of approving panel changed

7) STT on sale of unlisted securities at 0.2%

8) No excise duty on purchase of jewellery upto Rs. 5 lakhs

Nursing Home - When would it be a business or a profession

Even if a doctor carries out his activities on a large scale by hiring other doctors in his nursing home, his activity will be 'profession' and not 'business' unless he becomes a passive entrepreneur in relation to services. The fact that physicians/doctors have been hired is not relevant. What is relevant and crucial is the nature of the services rendered by them (hired doctors), whether facilitative or substantially so, or on independent, standalone basis, or substantially so. It is only in the latter case that the nursing home acquires the character of a business enterprise -SUNIL CHANDAK v. ITO [2012] 21

'Double deduction' admissible to trust in respect of capital expenditure - Chennai ITAT

Section 11 provides that the income of the Trust is to be computed on commercial basis, i.e., as per normal accounting principles. Normal Accounting Principles clearly provide for deducting depreciation to arrive at income. Therefore capital expenditure as well as depreciation is to be considered as application of Income for the purpose of Section 11 - GKR CHARITIES v. DDIT [2012] 21

CBDT clarifies "Vodafone was warned"

Opposing the contention of the Vodafone that Income-tax Department didnâ?Tt warn the Vodafone about the possible tax burden from the Vodafone-Hutch deal, the CBDT has issued a press release and clarified that:

a) A notice had been issued to the parties asking for the relevant details about the transactions;

b) Subsequently, a notice was issued on 23rd March, 2007, in which it was clearly mentioned that the capital gains arising from the said transaction were chargeable to tax in India;

c) It was further mentioned that in case parties to the transaction proposed to advance any other view, they were at liberty to approach the Assessing Officer;

d) It was also explained that the payer (Vodafone Group) as well as the payee (Hutchison Telecom Group) could make an application to the AO under sections 195(2) and 197, respectively, for determining the exact tax liability arising from the said transaction.

The CBDT emphasized that Vodafone could not say that it had received no communication from the tax department, about the chargeability of the transaction to tax in India.

Prosecuting director in cheque bouncing case, without arraigning the issuer-company, is unjustified

In case of dishonour of cheques issued by the company, prosecution under section 141 of the Negotiable Instrument Act, 1882 against directors (vicarious liability) is possible subject to arraigning of company as an accused. If directors are prosecuted without arraigning of company as an accused, prosecution order against directors is liable to be quashed.

However, directors can be proceeded against with or without arraigning company as an accused where company cannot be arraigned as accused due to some legal impediment which attracts lex non cogit ad impossiblia rule (law does not recognize that which is impossible) - ANEETA HADA v. GODFATHER TRAVELS & TOURS (P.) LTD. [2012] 21

CLB members suffering from 'copy and paste' disease: Calcutta HC

Calcutta High Court has passed strictures against CLB members for 'copy and paste disease', 'non-application of mind' and criticizing of 'outsourcing of judicial work' to tribunals manned by bureaucrats and non-judicial members. The High Court, on the ruling pronounced by CLB, held that:

a) Various paras of the impugned CLB judgment appear to have been physically lifted from a previous decision of the same member of the CLB which was taken up on appeal before the Delhi High Court which set aside the judgment and order;

b) The impugned judgment portrayed a total non-application of mind and still worse - DHARAM GODHA v. UNIVERSAL PAPER MILLS LTD. [2012] 21

Retirement benefits from foreign employer received by 'Not Ordinarily Resident' employee not taxable in India

Payment received by assessee towards retirement benefit/severance/vacation engagement from the 'Non Resident' employer based in USA on termination of its employment in USA cannot be taxed in India as the status of the assessee during the year in question was that of 'Not Ordinary Resident'.

In other words, where the recipient employee is 'Not Ordinarily Resident' in India, in terms of proviso to section 5(1)(c), read with section 9(1)(ii), the retirement benefit received for the services rendered outside India cannot be taxed in India - CIT v. ANANT JAIN [2012] 21

Notional interest on loan given to non-resident AE taxable under transfer pricing provisions

The Mumbai Tribunal in the instant case held that the lending or borrowings between two associated enterprises comes within the ambit of international transaction and whether the same is at arm's length price has to be considered. The question of rate of interest on the borrowings is an integral part of arm's length price determination in this context.

Therefore, in case interest-free loan is given to the non-resident associated enterprise, the provisions of transfer pricing regime shall be applied and the notional interest on such loan shall be taxable in the hands of the lender -TATA AUTOCOMP SYSTEMS LTD. v. ACIT [2012] 21

SC: Benami transactions also cover a transaction where part of the consideration is paid by some other person

The Supreme Court held that even if a part of the consideration for the property had been paid/provided by the person in whose name the property was purchased, the transaction would be a 'benami transaction' as per section 2(a) of the Benami Transactions (Prohibition) Act,1988 ('the 1988 Act'). It is not necessary that entire consideration should be paid /provided by another person(s) before a transaction can be termed as benami transaction.

However, the transaction in the instant case was saved from the mischief of Sec. 4 of the 1988 Act by reason of the same falling under the exception provided in Sec. 4(3)(b) i.e. the parties were closely related to each other, lend considerable support to the case of the respondents and the appellant held the tenancy rights and the ostensible title to the suit property in a fiduciary capacity vis-à-vis his siblings. - MARCEL MARTINS v. M. PRINTER [2012] 21

For a contribution to be a 'Voluntary contribution' and to avail exemption u/s 11(1)(d), identity of donors need to be established

To avail exemption under section 11(1)(d) in respect of Voluntary contributions made with a specific direction that they shall form part of the corpus of the trust/institution, identity of donor(s) must be established. If identity of donors not established, there is no question of the donations having been received with such a direction - ITO v. SMT. VIDYAWANTI LABHURAM FOUNDATION FOR SCIENCE RESEARCH & SOCIAL WELFARE [2012] 20

TCS should be treated on par with TDS and credit for TCS to be given from assessed tax for calculation of interest u/s 234B

Collection of tax at source by the seller is similar to deduction of tax at source by the payer. Such tax collection at source is paid to the government on behalf of the purchasers of these goods.

Thus, such tax collected at source is to be treated on par with tax deducted at source and therefore, credit for TCS should be given from tax on assessed income to compute shortfall in payment of advance tax and for calculation of interest under section 234B - ITO v. LAKSHMI SRINIVASA WINES, NALGONDA [2012] 20

Kerala High Court: Prohibit cash dealings in major transactions - Central Government's attitude criticized

The High Court held that unless prohibition is introduced against cash dealings, black money generation and circulation cannot be controlled because the disincentives on cash dealings contained under the various provisions of the Income Tax Act have failed to achieve the objective.

The High Court lamented on that: "Unfortunately, the response of the Central Finance Ministry is not at all encouraging inasmuch as Government wants status quo to continue to the detriment of the economic interest of the country and the people as a whole. Our limitations while exercising appellate jurisdiction under section 260A of the Act inhibit us from initiating any proceedings or issuing directions against the Central Government. However, we express our anguish at the attitude of the Central Government to have created this vicious situation and allowed the same to continue." - CIT v. P.D. ABRAHM [2012] 20

Period of holding for computing capital gains to include both-dates of acquisition and transfer, fraction of day not to be excluded

In the instant case, the High Court held that it will not be appropriate to exclude or include any day of the holding for the purpose of computing the period of holding. The date on which the asset is acquired is not to be excluded because the holding starts from the said date. Neither is the date of sale/transfer to be excluded. Thus, if an asset is held for 12 months/36 months and is sold the very next day after the period of 12/36 months is over, the asset would be treated as a long term capital asset. Further, there is nothing in the said section to show and hold that the time period would not include fraction of a day - BHARTI GUPTA RAMOLA v. CIT [2012] 20

High Court on categorization of a lease into finance lease and operating lease

The High Court held that the question, whether an agreement is finance lease or operating lease, cannot be decided by merely looking at the title of the agreement itself or the nomenclature given to the said agreement. The terms and conditions mentioned in the agreement may be relevant but the surrounding circumstances as well as the type and nature of the asset has to be taken into account.

Therefore, the categorization of finance lease or operating lease is to be decided by taking into account not only terms of the agreement but also surrounding circumstances as well as the type and nature of the asset - CIT v. INSTALMENT SUPPLY LTD. [2012] 20

Block of assets mechanism does not require sorting of assets division-wise or unit-wise, even if accounts are maintained that way

Sec. 2(11) [which defines 'block of assets'] and Appendix-I of the Income-tax Rules, 1962 [which prescribes the rates of depreciation] makes no distinction between different units or different type of businesses. In other words, it does not stipulate that each unit or division of assessee has to be separately accounted for and shown as a separate block of assets.

In the instant case, the paper division of the assessee, which was sold off itself, constituted a separate and an independent block of assets. The High Court held that assets falling in a block of assets which belong to a division or unit sold off by assessee would not be deemed to belong to a separate block of assets for application of section 50 - CIT v. ANSAL PROPERTIES & INFRASTRUCTURE LTD. [2012] 20

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Friday, April 27, 2012

1. Rate of exchange of conversion of each of the foreign currency with effect from 1st May, 2012 - Ntf. No. 38/2012- Customs (N.T.) Dated: April 26, 2012

2. Block assessment - Penalty u/s 158BFA -whether mandatory or discretionary - HC

3. Denial of waiver of interest, levied under Section 234A, B and C of the Income Tax Act - HC

4. Disallowance of Rs.1,78,562 being prior period adjustments - The entire dispute thus hinges on the question as to the previous year in which liability to pay has crystallized and there is no dispute about admissibility of the claim per se - Tri

5. Import of old, used and discarded rubber tyres – Department enhanced value of tyres, imposition of redemption fine in lieu of confiscation and penalty - Tri

6. Valuation of imported goods - MRP based valuation or transaction value - CVD - Tri

7. Whether the respondents were doing any service for the prospective buyers or were doing the construction activity for themselves - Tri

8. Claim of refund rejected on the ground that according to the Clause 2(f) of Notification No.17/2009-ST, dt.7.7.09 - Tri

9. Classification - MVAT - Whether the product, nutralite table margarine, manufactured by the respondent-assessee is a vegetable oil covered under Schedule C, entry 100 or Schedule C, entry 102 or not - HC

10. Invoking the provisions of section 50B to sale of assets of the M Seal Division of the Appellant - assessee contented that it was an itemized sale - Slump sale - Tri

11. Assessee in default - TDS u/s 194J - Trust directly makes payments to various hospitals as per the MOUs it entered with such hospitals. - Tri

12. Deduction u/s 80IB - Date of commencement of manufacturing activity - - HC

13. Deduction u/s 80-I - denial of deduction u/s 80-I(9) - Close relations between the assessee - company and the foreign buyer - burden of proof - Deduction u/s 10A read with section 80-I(9) - maintenance of separate books - HC

14. Disallowance u/s 40(a)(ia) - Sub contractor - Non deduction of TDS under Section 194C - hiring charges - tippers and excavators- Tri

15. MAT - 115JB - AO has powers to go behind the accounts and see whether same have been prepared in accordance with the requirements of Part II and Part III of Schedule VI of the Companies Act, 1956. - Tri

16. The economic reasons for insertion of Sec. 10(33) of the Act clearly shows that the source viz., transfer of capital asset being units of US 64 itself that has been excluded by the will of the Legislature and not the capital gain alone.- Tri

17. Search and seizure - Claim of interest under section 132B(4) - The petitioner claims that an amount of Rs. 1,60,000 seized from him was neither appropriated nor treated as advance tax -HC

18. Eligibility of refund under Notification No.41/2007-ST, dt.06.10.2007 -Port services, Terminal Handling Charges, CHA services, GTA services, Wharfage charges -Tri

19. Polymer Modified Bitumen (PMB) and Crumbled Rubber Modified Bitumen (CRMB) cannot be treated as Bituminous mixtures falling under Chapter sub-heading No.27150090 - Tri

20. Claim of interest on refund as Rule 5 of CCR, 2002 - Tri

Beneficial provisions of Treaty and Act to be compared for each source of income and not in aggregate

As per the provisions of section 115A(1)(b), the rate of tax on royalty payments in connection with the agreements entered into before 1-6-2005 is 20% and the tax agreements entered into on or after 1-6-2005 is 10%. These tax rates have been prescribed separately under sub-clause (A) and sub-clause (B). Each of these sub-clauses is mutually exclusive and independent of each other.

A foreign company has to, therefore, compute tax on its income under each of the above sub-clause (i.e. each source of income) separately as per the provisions of the Act or the Treaty, whichever is more beneficial. Therefore, it is not correct to compare the tax on royalty income as per the Act and as per the Treaty on an aggregate basis - IBM WORLD TRADE CORPORATION v. DDIT [2012] 20

Update on tax and management

1. Benefit of deferment of tax - When soft drink manufactures are put in the negative list, it would indeed be surprising not to have liquor in the negative list, no fault can be found with the notification issued by the State including liquor in the negative list with retrospective effect - HC

2. Depreciation - Reclassification - Tri

3. Determination of monetary limit for filing appeal before tribunal - merely on the ground that even if the Assessing Officer's order is restored, the net result would be a negative income, the issue cannot be treated to be one of academic interest - -HC

4. Deduction u/s 10A/10B - sections 10A/10B having no definition of the expression "profits of the business" - Tri

5. Classification of 'Composite absorbent material composed of celllulosic material (pulp) bonded/treated with polymeric absorbing material and additives with pre-made laminate of non-wovens' - Tri

6. Refund of service tax paid - Notification No. 14/2004, dated 10-9-2004 - Tri

7. Whether the Modvat/Cenvat credit on the inputs in process and in finished products is liable to be reversed/paid back when the final product becomes exempt from payment of duty - HC

8. The supplies made to SEZ are held to be "export", the application of provisions of Cenvat Credit Rules for recovery of amounts on goods supplied to SEZ units in terms of Rule 6 of CCR, 2002 / CCR, 2004 does not arise - Tri

9. Addition in respect of the gift received as unexplained cash credits as well as non-genuine - HC

10. Curtailing benefits and privileges conferred under the Foreign Trade Policy - Circular M.F. (D.R.) No. 58/2004-Cus., dated 21-10-2004 - star export house -HC

11. CENVAT credit for cellular telephone service - Meaning and scope of the term capital goods - (i) antenna, (ii) tower and parts thereof and (iii) green shelter (same as PFB) - Tri

12. Cenvat credit - whether the appellant is eligible to take credit for the full amount of tax paid on the commission paid to the Agents and for the full amount of tax paid on insurance premium paid - Tri

13. Construction of Dam or not - principal contractor as well as the sub-contractor, are denying the liability of Service Tax on the services which have been rendered by them - Tri

14. MRP bases valuation under section 4A -Charging Optional Service Charges (OSC in short) and “Rust Proof Protection Charges (RPP in short) over and above the MRP -Tri

15. Exemption/deduction u/s 10B - extended period of ten years - meaning and scope of the term undertaking - Tri

16. Once a relinquishment of title to the goods is made by the assessee then the said goods become the property of the Department and as a consequence of which no duty is payable by the importer. - HC

17. DEPB scheme - Revision in DEPB rates -Doctrine of promissory estoppel -respondent is entitled to DEPB rate as in the policy with effect from 15th April, 1998 @ 20% applicable to the woven jackets without any value cap. as existing before revision - HC

18. Inclusion in Assessable value - turn over tax is a permissible deduction - tax paid or payable on the goods shall not form part of the transaction value for the purpose discharge of excise duty liability -Tri

19. Reversal of cenvat credit - payment of duty on value addition on the inputs received by the appellant amounts to reversal of the CENVAT credit as - Tri

20. The carpets which are non-woven carpets with base/ground fabric of jute and exposed surface consisting of polyester/polypropylene fibre, are classifiable as “other carpets” under sub-heading 5703.90 - Tri

21. Land is not a depreciable asset and hence can not form part of block of assets u/s 50 - investment eligible for exemption u/s 54EC

22. Amended provisions of sec. 40(a)(ia) w.e.f. 1.4.2010 with retrospective effect - No disallowance if the TDS is paid on or before the due date specified in sec. 139(1)

23. Article 13 of the DTAC between India and France - Services rendered on marketing, strategy and training to optimize sales techniques come within the purview of consultancy services.

24. File applications for 53 SEZ ports codes -reg. - Cir. No. 59 (RE-2010) /2009-14 Dated: April 24, 2012

25. External Commercial Borrowings (ECB) for Civil Aviation Sector - Cir. No. 113 Dated: April 24, 2012

26. Alterations in the Schedule XIV of the Companies Act, 1956 in respect of Intangible Assets - Ntf. No. F. No.17/292/2011 CL-V Dated: April 17, 2012

27. Delegation of specified powers and functions to Senior Vice President and Vice Presidents of various Zones of Tribunal with immediate effect -Supersession of Order No. VI(A)/2006, dated 20-9-2006 - Ntf. No. VI(A) - AD(AT)/2010, Dated: October 19, 2010

28. Under Section 4 of the Special Economic Zones Act, 2005 - Set up a Sector Specific Special Economic Zone for Free Trade and Warehousing Zone at Village Dhrub, Taluka Mundra, district Kutch in the State Gujarat M/s. Adani Ports and Special Economic Zone Limited - Ntf. No. S.O. 583(E) Dated: March 26, 2012

29. U/s. 4 of the SEZ Act, 2005 - Set up a sector specific Special Economic Zone for handicraft sector within the village limits of Kalwara of Tehsil-Sanganer in the District of Jaipur, in the State of Rajasthan. - Ntf. No. S.O. 632(E) Dated: March 28, 2012

30. Addition of kerosene oil in the exceptions mentioned in respect of petroleum products in the Notification No.F.7 (433)/Policy-II/VAT/2012/1464, dated 23.03.2012. - Ntf. No. No.F.7(433)/Policy-II/VAT/2012/011-22 Dated: April 12, 2012

Rent income received from commercial complex

Income from a market complex constructed for commercial exploitation is taxable as business income and not as income from house property.

The facts of the case are that the bank took cognizance of the commercial viability of the project to grant loan, partners pooled their resources to repay the loan and assessee let out the property to the commercial organizations for earning income. In this case the Tribunal held that the income is taxable as income from business and not income from house property - NARAYAN MARKET COMPLEX v. ITO [2012] 20

Wednesday, April 25, 2012

Highlights

1. Appointment of Common Adjudicating Authority. - Ntf. No. 36 / 2012 - Customs (N.T.) Dated: April 23, 2012

2. Seeks to amend Notification No.12/97-Customs (N.T.) - Inland Container Depots for loading and unloading of goods .. -Ntf. No. 35 / 2012 - Customs (N.T.) Dated: April 23, 2012

TMI - Update - Newsletter - Monday, April 23, 2012

Highlights

1. Order - DVAT Rules, 2005 - Extension of time limit prescribed in sub-rule (4) of Rule 26 - Cir. No. F.3(277)/Policy/VAT/2012/30-40 Dated: April 19, 2012

2. Order - DVAT, 2004 - Direction to deposit the due tax in respect of each quarter within 21 days of the conclusion of the quarter - Cir. No. F.3(11)/P-II/VAT/Misc/2005/02-10 Dated: April 12, 2012

3. External Commercial Borrowings (ECB) Policy – Refinancing / Rescheduling of ECB. - Cir. No. 112 Dated: April 20, 2012

4. External Commercial Borrowings (ECB) Policy – Liberalisation and Rationalisation. - Cir. No. 111 Dated: April 20, 2012

5. Exim Bank's Line of Credit of USD 15 million to the Government of the Republic of Togo. - Cir. No. 110 Dated: April 20, 2012

Franchisee arrangement for coaching classes does not attract TDS u/s 194C

The contract envisaged by the section 194C would be one under which one person merely renders certain services to the other person for consideration. It would not be possible to view the franchisee agreement as a contract for carrying out any work by the franchisee.

The franchisee arrangement consists of mutual obligations and rights. The essence of such contract is one under which the trade name or reputation or knowhow belonging to the assessee is permitted to be made use of by the franchisees in different places for a monetary consideration. Therefore, in case of franchisee arrangements, there would not be any obligation to deduction tax under section 194C CIT v. CAREER LAUNCHER INDIA LTD [2012]

general reserve in the balance sheet of amalgamated

In case of amalgamation, the general reserve in the balance sheet of amalgamated coming on account of revaluation of assets of amalgamating company, cannot be said to be created out of appropriation of profits or debit in profit and loss account. Therefore, the amount which was never routed through or debited to profit & loss account, could not be considered for purpose of determination of book profits under clause (b) of Explanation 1 to section 115JB - ITO v. UNITED ESTATE (P.) LTD. [2012] 20

CASE LAWS : Central Excise - TMI - 212700 - Tri

M/s MSN Intermediates Ltd. Versus CCE Ahmedabad-I - (CESTAT, AHMEDABAD)

Stay Petition for waiver of pre-deposit on differential duty on the goods imported - department foregone the duty liability as appellant has not reported the export obligation and has not used the said goods in the manufacturing of the goods - claim of the appellant was verified by the Revenue which indicates that the appellant had exported the goods either through the merchant exporter or through another 100% EOU – Held that:- The issue of non-fulfillment of export obligations has to be considered from the factual matrix of the export, hence the issue needs to be re-considered by the adjudicating authority in its proper perspective - set aside order and to re-consider the issue afresh.

CASE LAWS : Service Tax - TMI - 212716 - Tri

COMMISSIONER OF CENTRAL EXCISE, LUDHIANA Versus SUVIDHA FINANCE - (CESTAT, NEW DELHI)

Refund of service tax paid - first Appellate Authority who granted relief to the Respondent on the ground that the Respondent was a sourcing agent to the bank and such service being taxable with effect from 10-9-2004, but the Respondent was not liable to Service Tax. - Notification No. 14/2004, dated 10-9-2004 - held that:- Nowhere the Respondent has pleaded that it was collaborator to the financing bank to serve clients of the Bank concerned. - the moment service was provided by the Respondent to the funding bank service of the bank begins to serve clients of the later. - no tripartite agreement was executed among the Respondent, financing bank and the borrower, nor there is any letter of appointment in that regard. There is no role of the Respondent to discharge any obligation to the prospective borrowers of the Bank. Therefore the material fact suggests that there was no provision of service to third party by the Respondent on behalf of the financing bank. The first Appellate order proceeded under misconception of law misconstruing the notification benefit. - Decided against the assessee - refund rejected.

CASE LAWS : Income Tax - TMI - 212706 - Tri

Siemens Information Systems Ltd. Versus Deputy Commissioner of Income-tax, Circle 7(2) - (ITAT MUMBAI )

Deduction u/s 10A/10B - Tribunal not allowed the deduction under sections 10A/10B on Rs. 14,31,96,372/- representing the amount of depreciation, which was not claimed but allowed by the AO while computing deduction - held that:- all expenses and allowances, deductible or not deductible, covered under these sections starting from 30 and ending with 43D have to be necessarily given full effect to for the purposes of computing income from business under section 28. The income so determined, in the absence of any definition of profits of business given in section 10A, shall constitute 'profits of the business'. As section 32 granting depreciation is included in sections 30 to 43D, there is no reason for excluding it for the purposes of computing the profits of the business of the undertaking.

Assessee contended that the judgment of Indian Rayon Corpn. Ltd. (2003 -TMI - 11904 - BOMBAY High Court) should not be applied to section 10A because that judgment deals with deduction u/s 80HHC - held that:- The contention of the assessee would have merited acceptance if cognizance of the judgment in Indian Rayon Corpn. Ltd.'s (2003 -TMI - 11904 - BOMBAY High Court) had been taken while interpreting section 80HHC. Since we are concerned with sections 10A/10B having no definition of the expression "profits of the business", there is no scope for arguing that the judgment in the case of Indian Rayon Corpn. Ltd. (supra) is not applicable which, in fact, has interpreted the expression "profits of the business" in the context of section 80HH without there being any specific definition of it.

Clause (i) of sub-section (6) makes it clear that in computing the total income of the assessee for the eleventh year (i.e. after the expiry of the benefit u/s 10A for the first ten assessment years), depreciation u/s.32 shall be computed on the written down value of the fixed assets as reduced by the full amount of depreciation allowable for the ten relevant assessment years from the actual cost of the assets. Further, clause (iv) makes it clear that the written down value of any asset used for the business of the undertaking in the eleventh year shall be computed as if the assessee had claimed and had been actually allowed the deduction in respect of depreciation for each of the relevant assessment years. We are unable to either expressly find or infer from the language of subsection (6) that in the first ten relevant assessment years, the assessee has a choice to claim or skip depreciation and if he chooses to dispense with the depreciation, then to compute the profits of business and the resultant deduction on the amount of profit before depreciation.

The profits of the business for all the years in the first block need to be computed by considering that any expenditure or allowance which contributed to the earning of income and is permissible u/ss 28 to 43D, must be allowed. If that is the position, then it is difficult to accept that the assessee should be allowed to compute profits of business during the currency of the years of deduction u/s 10A without reducing the amount of depreciation. - the ld. CIT(A) has taken an unimpeachable view in echoing the action of the AO in deducting depreciation of Rs. 14.31 crore and odd from the profits of business for the purposes of computing deduction under sections 10A/10B. - Decided against the assessee.

CASE LAWS : Income Tax - TMI - 212712 - Tri

Deputy Commissioner of Income-tax, Circle 1(2), Hyderabad Versus Coromandal Bio Tech Industries (I.) Ltd. - (ITAT HYDERABAD)

Depreciation claim - company incorporated to carry on the business of Aqua Farms and Shrimp Farming -name changed and the assessee entered the business of handling transportation – return filed declaring loss – AO disallowed and added back the depreciation claim on ponds and plant & machinery discontinued long back - assessment reopened u/s 147 - disallowing the depreciation observing that for claiming depreciation, the assessee should not only own the assets, but also the assets should be put to use in the relevant assessment year – Held that:- As long as an asset forms part of the block of assets and the block continues to exist, provisions of S.50 do not come into play and depreciation has to be allowed on that portion of the WDV of the assets which have been scrapped, after reducing the scrap value from the block of assets - 'block assets' depreciation on ponds and plant & machinery which are forming part of the block of assets has to be allowed as deduction – in favour of assessee.

CASE LAWS : Income Tax - TMI - 212713 - HC

Commissioner of Income Tax Cent.III Chennai. Versus M/s.Fuller KCP Limited - (MADRAS HIGH COURT)

Tribunal held that the re-assessment was bad in law and beyond the time for the assessment years 1988-89 to 1990-91 - Held that: - the returns filed for the assessment years were in accordance with the provisions of the Act and the technical knowhow fees were also clearly disclosed while arriving at the net profits under the Companies Act as well as in its computation of income filed along with the returns of income-in the absence of any material to revise the assessment by taking recourse to Section 147, the reopening of the assessment was bad in law – no ground warranting reopening and there are no materials placed before this Court to disturb the findings of the Tribunal - against revenue

Relief under Section 35AB – Held that: - Definition of "paid" as appearing under Section 43(2) as referring to amount actually paid or "payable" according to the method of accounting upon the basis on which the profits and gains are computed under the head of profits and gains in business or profession, the assessee having the account on mercantile basis and hence, allowed the claim on merits - the assessee admittedly maintaining its account on mercantile basis the contention of the assessee on the applicability of the definition of "paid", as appearing in Section 43(2) is accepted – against revenue.

CASE LAWS : Income Tax - TMI - 212714 - HC

Tulsi Food Products Versus DCIT - (Allahabad High Court )

Return filed u/s 139(1) - notice issued u/s 143(2)/115WE(2) - assessee pleaded as per amended proviso to Section 143(2) no notice under Section 143(2)(ii) shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished - Writ petition – Held that:- if there are two interpretations then the interpretation favorable to assessee will have to be adopted as per the ratio laid down in the case of CIT vs. Shaan Finance (P) Ltd (1998 -TMI - 5659 - SUPREME Court ) - Though the subject of the charge is the income of the previous year, the law to be applied is that in force in the assessment year – twelve moths' period from the end of the month in which the return was filed, expires in 31st July, 2008, so a notice was supposed to be served maximum on/or before 1st August, 2008, but it was given on 26.09.2008 - in favour of assessee.

CASE LAWS : Income Tax - TMI - 212715 - Tri

Income Tax Officer Versus Shri Yasin Moosa Godil, - (ITAT, Ahmedabad)

Addition to income u/s 50C – Assessee booked under-constructed flat - Rs.50, 000/- payable at the time of booking and the balance payable in installments all before taking possession– cancelation of the booking due to non delivery - tri party registered sales deed executed between the appellant, the builder and the new buyer – Held that:- triparty registered sale agreement for transfer of the said flat wherein the appellant as the vendor was to transfer all his rights, title and interest in the said flat to the buyer and the was to give the possession of the said flat which was originally agreed to be allotted to the appellant - provisions of section 50C of the I. T. Act are applicable in the case of an assessee when he transfers a capital asset – upheld conclusion arrived at by CIT (A) – against revenue.

CASE LAWS : VAT and Sales Tax - TMI - 212719 - HC

VRV Foods Ltd. Versus State of Himachal Pradesh and Ors. - (Himachal Pradesh High Court )

Benefit of deferment of tax - retrospective amendment in H. P. General Sales Tax (Deferment of Tax) Scheme, 2005 - petitioner-company was registered under this Scheme for the grant of benefit of deferment - petitioner challenged this order and according to the petitioner, once the petitioner-company had expanded its unit and was given benefit of deferment scheme, the State was estopped from withdrawing this benefit from the petitioner - State on the other hand is that there was a mistake in the original negative list attached to the notification. According to the State, liquor industry is not one of those industries to which such benefit has to be given – Held that:- stand of the State that by mistake, liquor industry was not included in the negative list appears to be correct, substantial material on record to show that the State had put in the negative list industries like the tobacco industry and even soft drink manufacturers. When soft drink manufactures are put in the negative list, it would indeed be surprising not to have liquor in the negative list, no fault can be found with the notification issued by the State including liquor in the negative list with retrospective effect, petition which is accordingly rejected. 

Banking : Bank Rate

Banking : Bank Rate

Circular DBOD.No.Ret.BC.96 /12.01.001/2011-12, dated 19-4-2012

As announced in the Monetary Policy Statement 2012-13, the Bank Rate stands adjusted by 50 basis points from 9.50 per cent to 9.00 per cent with effect from April 17, 2012.

2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annexure.

3. Please acknowledge receipt.

Annexure

Penal Interest Rates which are linked to the Bank Rate

Item	Existing Rate	Revised Rate (Effective from April 17, 2012)
Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfalls).	Bank Rate plus 3.0 percentage points (12.50 per cent) or Bank Rate plus 5.0 percentage points (14.50 per cent).	Bank Rate plus 3.0 percentage points (12.00 per cent) or Bank Rate plus 5.0 percentage points (14.00 per cent).

SECTION 50 OF INCOME TAX

	Section 50 would not be applicable to capital assets, if depreciation thereon was never allowed to the assessee
	If the assessee had not claimed depreciation on any capital asset, which was not in use, he could not be burdened with the provisions of section 50. As the basic requirement for the applicability of section 50 is that the assets should form part of the block of assets in respect of which depreciation had been allowed under the Act. In the absence of any depreciation being allowed to the assessee in the any of the previous years, deeming provisions of section 50 cannot be invoked - CIT v. SANTOSH STRUCTURAL & ALLOYS LTD. [2012] (Punj. & Har.)

Union Budget 2012-13 : Highlights

There are many high points of budget which has been proposed for the year 2012-2013. All the points of the Union Budget made for  upcoming accounting year has been presented by Finance Minister of India, Pranav Mukherjee, on 16^th March 2012. Highlights of the proposed budget have been mentioned here.

Now more people will be relieved from the burden of paying tax on their income. This is because limit of  tax exemption  has been increased from Rs 180000 to Rs 200000. This means that individuas whose income lies between 2-5 Lakhs will pay  10% and 5-10 Lakhswill pay 20% as tax. Adding to it, individuals whose income is more than 10 Lakhs rupees will need to pay 30 per cent of their income as Income Tax . At the same time, interest up to Rs 10000 in Savings Bank Account has been exempted from tax. Many luxurious goods have been proposed to cost more. This includes large cars, imported jewellery and imported bicycles. Cigarettes and bidis have also been included in this list. However, it has been proposed that silver jewelry may have higher demand as it will be relatively cheaper. There is no change in certain tax rate like corporate tax but rate of excise duty, service tax rate has been raised to 12 per #162 which was previously 10. Therefore, it can be concluded that more emphasis has been given on high class people for paying tax than middle class people.  

More money has been expected to be collected by the government this year. GDP growth rate for 2012-2013 pegged at 7.6% and Rs 30000 crore has been targeted to be raised from disinvestment. Adding to it, higher tax rate revenue has been targeted and expenditure on subsidy is also to be checked. More amount of money will be provided for capitalization of public sector banks and financial institutions as Rs 15888 crore has been budgeted.

Turnover limit for compulsory tax audit for SMEs has been raised from 60 Lakhs rupees to Rs. 1 crore. This will be a relief for certain sectors. This includes sectors such as mining, railways, roads, civil aviation, agriculture, infrastructure and manufacturing. Agriculture has been favored by the budget as farmers will be provided interest subvention for short-term loan at 7% and 3% additional for prompt paying. At the same time, agricultural credit has been raised to Rs 575000 crore.

Budget of total expenditure has been presented as Rs 1490925 crore; plan expenditure has increased 18% when compared to that of previous year’s budget. It is proposed as Rs 521025 crore. On the other hand, non-plan expenditure has been budgeted as Rs 969900 crore. Thus, net tax to be collected this year is being estimated as Rs 771071 crore, non tax revenue has been estimated as Rs 164641 crore and capital receipts has been estimated as Rs 41650 crore. 193407 crore rupees have been proposed to be allotted for defense services.

Exempted Income from Income Tax (Sec.10)

The following incomes are exempt from  tax : 

	Section
1. Agricultural income	10(1)
2. Payments received from family income by a member of a HUF	10(2)
3. Share of profit from a firm	10(2A)
4. Interest received by a non-resident from prescribed securities	10(4)
5. Interest received by a person who is resident outside India on amounts credited in the “Non-resident (External) Account”	10(4)
6. In the case of an Indian citizen or a person of Indian origin who is a non-resident, the interest from notified Central Govt. Securities  [i.e.,national savings certificates,  VI and VII Issues] if such certificates are subscribed in foreign currency or other foreign exchange remitted from outside through official channels.	10(4B)
7. Leave travel concession provided by an employer to his Indian citizen employee	10(5)
8. Tax paid by employer of non-resident Indian technician	10(5B)
8A. value of concessional passage money received by a foreign national employee from his employer	10(6)(I)
9. Remuneration received by foreign diplomats of all categories	10(6)
10. salary received by a foreign citizen in India as an employee of a foreign enterprise provided his stay in India does not exceed 90 days	10(6)(VI)
11. Salary received by a non-resident foreign citizen as a member of ship`s crew provided his stay in India does not exceed 90 days	10(6)(VIII)
12. Remuneration received by a non-resident foreign national, of a foreign Government deputed in India for training in a Government establishment or public sector undertaking.	10(6)(XI)
13. Tax paid on behalf of foreign companies	10(6A)
14. Tax paid by Government or an Indian concern in the case of a non-resident/foreign company	10(6B)
15. Income arising to notified foreign companies from services provided in or outside India in projects connected with the security of India	10(6C)
16. Foreign allowance granted by the Government of India of its employees posted abroad	10(7)
17. Remuneration received from a foreign Government by an individual who is in India in connection with any sponsored co-operative technical assistance programme with a foreign Government and the income of the family members of such employee	10(8) and (9)
18.  Remuneration/fees received by non-resident consultants and their  employers	10(8A) and (8B)
19. Death-cum-retirement gratuity	10(10)
20. Computed value of pension (See Para 8, point 11 of table) and any payment received by way of commutation of pension by an individual out of annuity  plan of LIC or any other insurer from a fund set up by that corporation or insurer	10(10A)
21. Leave Salary	10(10AA)
22. Retrenchment compensation	10(10B)
23. Compensation received by victims of Bhopal gas leak disaster.	10(10BB)
24. Compensation from the Central Government or a State Government or a local authority received by an individual or his legal heir on account of any disaster, applicable from the assessment year 2005-06.	10(10BC)
25. Compensation received from a public sector company at the time of voluntary retirement or separation	10(10C)
26. Tax on perquisite paid by employer	10(10CC)
27. Any sum (including bonus) on life insurance policy (not being a Keyman insurance policy)	10(10D)
28. A Accumulated balance due and becoming payable to an employee from a recognized provident fund to the extent it is provided.	10(12)
29. Amount from an approved superannuation fund to legal heirs of the employee	10(13)
30. House rent allowance subject to certain limits	10(13A)
31. Special allowance granted to an employee	10(14)
32. Income received by a public financial institution as exchange risk premium in certain cases	10(14A)
33. Interest from certain exempted Securities	10(15)
34. Payment made by an Indian company, engaged in the business of operation of an acquire an aircraft on lease from a foreign Government or foreign enterprise.	10(15A)
35. Scholarship granted to meet the cost of education.	10(16)
36. daily allowance of a member of parliament or State Legislature (entire amount is exempt), and any other allowance subject to certain conditions	10(17)
37. Rewards given by the Central or State Government for literary scientific or artistic work or attainment or for service for alleviating the distress of the poor, the weak and the ailing, or for proficiency in sports and games or gallantry awards approved by the Government	10(17A)
38. pension and family of gallantry award winners	10(18)
38A. Ex gratia payments made by the Central Government consequent on the abolition of privy purse	10(18a)
39. Family pension received by family members of armed forces	10(19)
40. Notional property income of any one place occupied by a former ruler	10(19A)
41. Income of local authorities	10(20)
42. Any income of housing boards constituted in India for planning, development or improvement of cities, towns or villages	10(20A)
43. any income of an approved research association	10(21)
44.  Income of a notified news agency (i.e., PTI for the assessment years 1994-95 to 2002-03 and UNI for the assessment years 1994-95 to 2002-03)	10(22B)
45. Any income (other than interest on securities, income from property, income received for rendering any specific services and income by way of interest or dividends) of approved professional bodies	10(23A)
46. Any income received by any person on behalf of any Regimental Fund or non-public fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependents	10(23AA)
47. Any income of the pension fund set up by LIC or any other insurer approved by the Controller of Insurance or insurance Regulatory and development Authority	10(23AAB)
48. Income of funds established for the welfare of employees	10(23AAA)
49. Any income (other than business income) of a trust or a society approved by khadi and Village Industries Commission	10(23B)
50. Income of an authority whether known as Khadi and Village Industries Board or by any other name for the development of Khadi and Village industries	10(23BB)
51. Income arising to anybody or authority established, constituted or appointed under any enactment for the administration of public, religious or charitable trusts or endowments or societies for religious or charitable purposes	10(23BBA)
52. Income of the European Economic Community derived in India by way of interest, dividends or capital gains in certain cases under the European Community International Institutional Partners Scheme, 1993	10(23BBB)
53. Any income of SAARC fund for Regional projects	10(23BBC)
54. Any income of Secretariat of Asian Organization of Supreme Audit Institutions	10(23BBd)
55. Income of North-Eastern Finance Corporation	10(23BBF)
56. Income of Central Electricity Regulatory Commission	10(23BBG)
57. income received by any person on behalf of specified national funds, approved public charitable institutions, educational institute and hospital	10(23C)
58. Income of a Mutual Fund set up by a public sector bank or public financial institution	10(23D)
58A. Income of the notified Exchange Risk Administration Fund, (i.e., Exchange Risk administration fund set up by IDBI, IFCI and ICICI or set up by the Power Finance Corporation Ltd.)	23(23E)
59. Income if investor protection Fund Trust	10(23EA)
60. Income of Credit Guarantee Fund Trust	10(23EB)
61. Income of investor Protection Fund by way of contributions from commodity exchange and the members thereof	10(23EC)
62. Income by way of dividends and long-term capital gains of venture capital funds and venture capital companies	10(23F)
63. Income by way of dividend or long-term capital gain of venture capital fund/undertaking	10(23FA)
64. Income of venture capital fund/venture capital company	10(23Fb)
65. Dividend  interest, etc. of an infrastructure capital fund	10(23G)
66. Income by way of interest on securities property income and income from other sources of a registered trade union or an association of registered trade unions	10(24)
67. Any income received by a person on behalf of statutory provident fund, recognized provident fund, approved superannuation fund, approved gratuity fund and approved coal-mines provident fund	10(25)
68. Income of employees` State Insurance Fund	10(25A)
69. Income of a member of a scheduled tribe, residing in Nagaland, Manipur, Tripura, Arunachal Pradesh, Mizoram and Ladakh which accrues/arises to him from any source in the said area or any income by way of dividend and interest on securities	10(26)
70. Any income accruing or arising to any resident of Ladakh from any source therein or out of India up to the assessment year 1988-89, provided that such person was resident in Ladakh in the previous year relevant to the assessment year 1962-63.	10(26A)
70A. Any income of an individual, being a Sikkimese, which accrues or arises from any source in the State of Sikkim or by way of dividend or interest o securities applicable from the assessment year 1990-91.	10(26AAA)
70B. Any income of an agricultural produce marketing committee/board constituted under any law for the purpose of the marketing of a agricultural produce	10(26AAB)
72. Income of National Minorities development and Finance Corporation	10(26BB)
73. Income of ex-serviceman	10(26BBB)
74. Income of a co-operative society formed for promoting interest of members of scheduled castes/tribes	10(27)
75. Income of certain Commodity Boards/Authorities	10(29A)
76. Subsidy from the Tea Board for replanting or replacement of tea bushes or for rejuvenation or consideration of areas used for cultivation of tea in India	10(30)
77. Subsidy received by planters	10(31)
78. Income of minor child up to Rs. 1, 500 in respect of each minor child whose income is includible under section 64(1A)	10(32)
79. Capital gains of transfer of US 64 [See Para 50.9]	10(33)
80. Dividend on or after April 1, 2003 from domestic companies	10(34)
81. Interest on units of a Mutual Fund on or after April 1, 2003	10(35)
82. Capital gains on transfer of listed equity shares [See Para 50.9]	10(36)
83. capital gains on compensation received on compulsory acquisition of urban agriculture land.	10(37)
84. Long-term capital gains on transfer of securities not chargeable to tax in cases covered by transaction tax	10(38)
85. Income of an international sporting event	10(39)
86. Grant by subsidiary company	10(40)
87. Capital gain in the above case	10(41)
88. Income of certain bodies	10(42)
89. Any income received by an individual as a loan, either in lump sum or in installments in a transaction of reserve mortgage, applicable from the assessment year 2008-09	10(43)
89A. Any income received by any person for, or on behalf of the New Pension System Trust [clause (44) applicable from the assessment year 2009-10].	10(44)
Notified allowance /perquisites given to the chairman, a retired Chairman or any other member or retired member of the Union Public Service Commission [clause (45) applicable from the assessment year 2008-09 onwards].	10(45)
Any specified income arising to a notified body/authority/board/trust/commission with the object of regulating/administration any activity for the benefit of general public [clause (46) applicable from the assessment year 2012-13].	10(46)
Any income of an infrastructure debt fund set up in accordance with notified guidelines [clause (47) applicable from the assessment year 2012-13].	10(47)
90.  Any income of a political party by way of interest on securities, property income, income from other sources of income by way of political contributions	13A
91. Voluntary contribution received by an electoral trust if a few conditions are satisfied [Sec. 13B, applicable from the assessment year 2010-11]	13B