CA Online

The Bombay High Court last week ruled that expenses incurred by a professional going abroad for treatment of eye is not eligible for income tax deduction. The assessee in this case, Dhimant Thakar vs CIT, was a lawyer and he argued that good vision was important for pursuing his profession. His claim for the assessment year 1986- 87 was rejected by the revenue authorities. His appeal was also rejected by the Commissioner of Income Tax ( Appeals) who observed that if the logic of the lawyer was stretched, it would mean that even expenditure incurred on food to preserve oneself should be treated as allowable under Section 37( 1) of the Income Tax Act as being incurred for business or profession. On appeal, the high court upheld the view of the authorities observing that “ eyes are essential not only for the purpose of business or profession but for purposes other than these which are so many. It is therefore clear that the said expenditure as claimed by the professional is not in the n

Changes in the legal system are essential for India to attract foreign investment. Foreign companies are often reluctant to invest here because of the perception that the Indian legal system does not give sufficient protection to foreign investment. Indian Arbitration and Conciliation Act, 1996 is often criticised as unhelpful to international parties. The Arbitration and Conciliation ( Amendment) Ordinance, 2015 is likely to address delays to arbitration- related proceedings in Indian courts. It includes a vast range of new statutory provisions, including the option for tribunals to award compound interest, the imposition of time limits on awards, and the opening up of arbitration to foreign law firms. However, one has to realistically accept that the standing of India as a reputable seat for international arbitration and litigation is not very high for other reasons, too, prompting parties to turn to neighbouring centres such as Hong Kong and Singapore. The real issue the gov

If an arbitrator nominated by the contesting parties withdraws from the proceedings, the court can select a substitute arbitrator of its own choice. “It is the courts duty to give effect to the policy of law, that is to promote efficacy of arbitration,” the Supreme Court has stated in its judgment, Shailesh vs Mohan. In this case, the parties selected a retired judge of the Supreme Court from a panel of names but she resigned midway. The parties could not agree on a new name and the matter went back to the Bombay high court. It substituted one of its retired judges in her place. This was opposed by one of the parties, which argued that once the arbitrator withdraws, the agreement ended and the court could not name another. Rejecting this argument, the Supreme Court stated that under Section 15( 2) of the Arbitration and Conciliation Act, when the mandate of an arbitrator terminates, a substitute arbitrator “ shall” be appointed. Arbitration must go on. For example, in a family disput

Its circulars prescribe threshold limits, due sanction from senior officers, procedures to be followed, monitoring disciplines and procedure for withdrawal of complaints The Central Board of Excise and Customs ( CBEC) has revised the monetary limits for arrest and its guidelines for prosecution in matters relating to offences punishable under Customs, Central Excise and Service Tax laws. Its circulars ( dated October 23) prescribe threshold limits, due sanction from senior officers, procedures to be followed, monitoring disciplines and procedure for withdrawal of complaints. In Customs matters, the CBEC says arrest in respect of an offence should be effected only in exceptional situations. These include unauthorised importation under baggage rules where the value of the goods involved is Rs.20 lakh or more; smuggling of highvalue goods such as precious metals, restricted items or prohibited items; wilful mis- declaration in description of goods, concealment of goods, where the va

Updates Of the Day 1.ICAI Election Procedure - Each voter has only one vote for election to the council and one vote for election to the regional council. The voter, in order to cast his vote, shall place on his ballot paper the No. 1 (in arabic or roman numerals, or in words) against the name of the candidate for whom he desires to vote, and may, in addition, place on his ballot paper the number 2, or numbers 2 and 3, or the numbers 2, 3 and 4 and so on opposite the names of other candidates in the order of his preference. 2.UCO Bank invites applications from Chartered Accountants for employment in bank for 100 posts. Last date to submit application is 20th November 2015. 3.Modified version of AOC -4 is available on portal by which if intimation of appointment of auditor is not required under section 139 (5)(6)(7) then entering the SRN Z99999999 will work. 4.Last date of filing MCA forms AOC-4 (XBRL and non-XBRL) and MGT-7 have been extended till 30th November 2015 without additi

Draft aviation policy proposes incentives to cut cost of flying; levy to help raise Rs.1,500 crore a year, compensate airlines for losses on flights to cities that have little or no air connectivity The government has proposed a 2% levy on domestic and international plane tickets to subsidize airlines so that they connect small and remote cities, and enable millions more to travel by air in the world’s fastest growing aviation market. A draft aviation policy unveiled on Friday said the levy, which would be imposed with effect from 1 April 2016, would help raise Rs.1,500 crore a year. The proceeds will help compensate airlines for losses on flights to cities that have little or no air connectivity. HT Mint, New Delhi, 31st Oct. 2015 

The Reserve Bank of India (RBI) will start issuing sovereign gold bonds on November 26, 2015, with a tenor of eight years and an interest rate of 2.75 per cent, the finance ministry said in a statement. The bonds will be open for public subscription from November 5- 20, it added. “Government of India, in consultation with RBI, has decided to issue sovereign gold bonds. The bonds will be sold through banks and designated post offices. The borrowing through issuance of the bond will form part of market borrowing programme of government of India,” the ministry said. According to Sudheesh Nambiath, lead analyst ( precious metals demand), GFMS Thomson Reuters, South Asia and UAE, the scheme has been planned well, keeping longterm investors’ interest in mind. “ The pricing mechanism is attractive, giving time for decision making to invest at appropriate price levels. Investor response is going to be phenomenal given that it is agood alternative to holding physical gold at home, given