CA Online

The Land Acquisition Act is about 120 years old, and the proposed new one is mired in controversy, but it seems there are issues of interpretation yet to be settled by the Supreme Court. Last week, a two- judge bench delivered a split verdict on the question of interest on solatium in the case of land acquisitions, and the question has been referred to a larger bench. This means that the final word of the court on this two- decade old case will not come for years, going by the enormous backlog. In this case, Periyar and Pareekanni Rubbers Ltd vs state of Kerala, the company was aggrieved by the denial of interest payable on the component of solatium. It argued that the denial and its approval by Kerala High Court were illegal. One judge asked the government to pay interest but the other judge expressed his “ respectful disagreement” with that order, leading to the request to the Chief Justice to set up a larger bench. Meanwhile, the CJ’s court is currently struggling with hundreds of

The Securities and Exchange Board of India has asked listed companies to inform stock exchanges at least two working days in advance about board meetings on proposals related to buyback of securities, voluntary delisting and fund raising. Hindustan Times, New Delhi, 19th Sept. 2015

Govt says existing tax regulations for gold holdings will apply to the gold monetization scheme as well Gold deposits over 500gm, not explained by known source of income, will attract income tax under the gold monetization scheme, the government in an internal note dated 15 September that was released on Friday. It is likely to discourage large depositors with undisclosed source of income but will encourage small depositors as it brings clarity on the tax implications of the scheme. It is in line with the government’s intent to ensure the scheme does not facilitate conversion of black to white money. Banks will not be allowed to use the gold deposits to meet their statutory liquidity ratio and cash reserve ratio requirements as proposed by the earlier draft. The finance ministry, in a recent circular, said the existing income-tax regulations for gold holdings will apply to the gold monetization scheme as well. A certain amount of the gold holdings as explained by known sour

Instruction No 11/2015 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North Block, IT (A-II) Division New-Delhi, dated the 16th of September, 2015 Subject:  Reference to Transfer Pricing Officer in Specified Domestic transaction cases reg .- Clarifications have been sought from the Board as to which authority will function as Transfer Pricing Officer (‘TPO’) for the purposes of determining Arms Length Price (‘ALP’) in respect of Specified Domestic Transactions (‘SDTs’) as per the provisions of section 92CA of the Income-tax Act, 1961(‘Act’). 2. The Board has considered the matter and it is hereby clarified that such cases involving SDTs shall continue to be handled by the TPOs working under the Commissioner (Transfer-Pricing). The Board, under section 120 of the Act, has already issued Notification No.(s)  58 & 59/2014 (F.No.  187/29/2014/ITA.I) dated 03.11.2014 effect. 3. This may be brought to the no

To ease the registration process of the micro, small and medium enterprises (MSMEs), the government would soon notify a simple online registration system, MSME secretary Anup K Pujari said on Friday. The “one page” registration system “will be called Udyog Aadhaar Memorandum,” he said on the sidelines of a MSME summit organised by industry body Ficci. The notification is awaiting the approval of the law ministry. Under this platform the establishments will have to self-certify details of their existence, bank account, business activity, and employment and ownership. This one page form will replace the cumbersome Enterprise Memorandum (EM) I and EM II forms, that exists now. Hindustan Times, New Delhi, 19th Sept. 2015

Markets regulator Sebi has notified new norms that will dilute its chairmans powers on conduct of search and seizure of defaulters properties, with permission for such operations being required from a special court. Under the new norms, Sebi will have to seek permission from special courts to conduct search and seizure operations, as against earlier regulations that had provided the capital markets regulator chief to directly authorise such actions. These regulations would be called the Securities and Exchange Board of India (Procedure for Search and Seizure) Repeal Regulations, 2015. The move comes following demands that the greater powers need to be balanced with necessary safeguards. The Sebi Chairman was earlier authorised to conduct search and seizure operations against suspected entities, but the new notification provides that permission for such actions would need to be obtained from a Magistrate or Judge of a designated court. Business Standard, New Delhi, 19th Sept.

1.  CIT duly empowered to decline request for waiver of interest u/s. 234C of the Income Tax Act – [The Fertilizers and Chemicals Travancore Ltd. vs. DCIT (Kerala High Court)] 2. Refund of excess salary which was granted in earlier years is deductible because the assessee is under legal obligation to repay the amount. Ahmadabad Tribunal -Vrajeshwari Parikh. 3.  State governments not competent to levy VAT on MRP - High Court of Patna- Mapra Laboratories Pvt. Ltd. vs. CV. 4.  The Employees Provident Fund Organisation (EPFO) increased the maximum amount assured under its deposit linked insurance to Rs.6 lakh. 5.  Reserve Bank of India relaxed norms for banks to grant certain loans to their chief executives and directors. 6.  Finance Minister unveils guidelines of 'Gold Monetization Scheme' and 'Gold Bond Scheme'. 7.  The office of Regional Director, North, MCA working from Ground Floor, A-14, PDIL Bhawan, Sector-1, NOIDA has been shifted to B-2 Wing, 2nd Floor