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After the 2013 amendment to the Companies Act, a person who has attained 70 years may be appointed managing director by passing a special resolution. It shall be accompanied by an explanatory statement annexed to the notice for such motion justifying the position while deciding the case, Sridhar vs Ultramarine & Pigments Ltd. The joint director sought an injunction against the chairman & managing director continuing, since he was over 70 years. He was appointed before the amendment. The incumbent stated that the amendment could not be enforced retrospectively. The high court therefore explained that if he was already appointed prior to the amendment when he was below 70, “ the disqualification would operate automatically, subject to the provison i. e. special resolution being passed by the company.” Business Standard, New Delhi, 15th Feb. 2016

Aimed at further arming the taxman to go after those who do not file their income tax returns (ITRs), a new database of multiple addresses of such erring assessees has been set up by the department. A new technology enhancement by the systems wing of the department has been added to the ‘Non Filers Management System’ electronic database, the address used by a person or his associate in the ITR or Annual Information Return filed by him. Hindustan Times, New Delhi, 15th Feb. 2016

However, you might face some initial hurdles if you have an account with a bank not designated to offer this Did you face any hurdle while investing in a recent initial public offering ( IPO) stock issue? Did you have to go looking for a bank branch with the Application Supported by Blocked Amount (Asba) facility because your bank did not offer it? Or was your IPO application not processed due to signatures not matching? Or were you advised to invest through a brokerage that is the bank’s subsidiary instead of your regular brokerage? These are some of the initial hurdles a retail investor ( one who invests up to ? 2 lakh) might have faced while investing in IPOs through Asba. However, the process is set to get smoother, say experts. Asba is an online payment facility provided by some banks, wherein the application money is blocked and gets debited only after IPO allotment is made. It was initially introduced by the Securities and Exchange Board of India ( Sebi) in 2008 and was ma

After withdrawal of tax sops, they have ceased to be a success story for manufacturers Sriperumbudur in Tamil Nadu has been a nursery of sorts for the Special Economic Zones ( SEZs) in India. More multinational companies have set up their manufacturing base in and around these zones in Sriperumbudur, about 40 km south of Chennai, than in any other place in the country. In a way, this town was the country’s first brush with Make in India. Ironically, Sriperumbudur has also seen more companies shutting down than in any other place. The first big name to shut shop was Motorola. That was a beginning. Nokia followed suit. So did Siemens, Ericsson, Foxconn ( in its first India foray) and Flextronics. “The sentiment died out over the last four years. There wasn’t just one reason but it all summed up as complaints about the tough Indian regulatory regime,” says RSridhar, partner with Leapridge Advisers, a boutique chartered accountancy firm that walked with quite a few of these compa

Updates Of the Day 1.Today 15.02.2016 is the due date for e-payment of PF for the month of January, 2016 (No grace period of 5 days available). 2.Today 15.02.2016 is last day for issue of quarterly TDS certificate for the quarter ending in December, 2015 by government deductors. 3.Procedure: Change in Object Clause as per Companies Act’ 2013 4.Expenditure incurred by the assessee on issue of Foreign Currency Convertible Bonds (FCCB) is revenue expenditure allowable under section 37(1) of the I.T. Act. - Tribunal. (Gati Limited vs Income Tax Officer, Ward – 2 (2) Hyderabad - 2016 (2) TMI 404 – ITAT HYDERABAD) 5.The empanelment process of Chartered Accountant firms (firm) and Limited Liability Partnership firm (LLP) for allotment of audit of Public Sector Undertakings/Statutory Corporations for the year 2016-17. The desired firms were allowed to fill the online forms till 15.02.2016. 6.Interest subsidy for repayment of loan acquired for acquisition of capital assets, is capital r

Updates Of the Day 1.Transshipment of goods without charging duty: The fact that the goods cleared under transshipment permit are required for the intended purpose is clear from the facts that the essentiality certificate has been issued. Whether it is issued under Notification No. 17/2001 or 21/2002 is immaterial, benefit of notification cannot be denied – Tribunal. [M/s Frontier Aban Drilling (India) Ltd. vs Commissioner of Customs, Mumbai - 2016 (2) TMI 358 - CESTAT MUMBAI] 2.Import of medical equipment: As per the technical definition "Gastro Intestinal Video Endoscope", it is nothing but Gastroscope using video technology. The present equipment is based on wireless capsule and which covers not only throat but also entire gastro intestinal tract. Benefit of exemption allowed. – Tribunal. [Commissioner of Customs (Airport) Chennai vs Vishal Surgical Equipment Co. (P) Ltd. - 2016 (2) TMI 356 - CESTAT CHENNAI] 3.Admissibility of credit of service tax paid on input servi

In a bid to speed up recovery of money in the Rs.5,574crore NSEL payment case, government has decided on immediate auction of non-encumbered properties while urging the markets regulator the Securities and Exchange Board of India (Sebi) to take action against defaulting brokers. At a meeting chaired by Economic Affairs Secretary Shaktikanta Das, the Maharashtra government has been asked to take immediate action for auctioning the properties which do not have any encumbrance or have approval of the court. The Maharashtra government has also been asked to actively pursue with the MPID court to obtain early orders for auctioning of the remaining attached properties and also appoint a senior advocate for the same. The meeting reviewed the action taken and progress made on the recommendations made by the Special Team of Secretaries (STS) to ensure that there is no systemic impact of the NSEL crisis. The Ministry of Corporate Affairs has been advised to decide on the draft order of the prop