AMERICAN HOTEL & LODGING ASSOCIATION EDUCATIONAL INSTITUTE Versus CBDT & OTHERS - 2008 TMI - 4477 - SUPREME COURT OF INDIA
Income Tax - Appellant was a non-profit organization set up in USA. It had a branch office in India, to collect data and fees which was thereafter remitted to USA. It was allowed exemption u/s 10(22) upto 31.3.1998 before omission. Appellant made an application for exemption u/s 12(23C) but CBDT refused on the ground that the income is not being used in India. SC held that CBDT may put the condition as it may deem fit but can not reject the application on the ground that income is not applied in India.
COMMISSIONER OF INCOME-TAX Versus SHREE PIPES LIMITED - 2008 TMI - 4461 - RAJASTHAN HIGH COURT
Income Tax - Appellant, sick unit – under rehabilitation scheme, interest was waived by BIFR – assessee writes off its liability towards internet in account books & got deduction – AO is not justified in making additions considering it as cessation/remission of liabilities – AO is not justified in invoking sec. 41(1) – Tribunal was right in holding that section 41(1) can’t be invoked in respect of the amount which the assessee paid as commission and written off in the books of account of the profit & loss
COMMISSIONER OF INCOME-TAX Versus V. R. VENKATACHALAM - 2008 TMI - 4460 - MADRAS HIGH COURT
Income Tax - Documents seized from premises of assessee & his business associates – addition made to income of assessee as unexplained peak investment with the association of persons, viz., M.G. Enterprises - AO failed to correlate those documents to amount of addition - by relying on an affidavit of M.G. Enterprises, held that MGE alone was liable to explain the source & the addition made in the hands of the assessee has to be deleted – AO is directed to enquire against the AOP, who had denied the receipt
M. SHIVANNA AND ANOTHER Versus DEPUTY COMMISSIONER OF INCOME-TAX - 2008 TMI - 4459 - KARNATAKA HIGH COURT
Income Tax - Application, seeking stay of impugned demand notice was rejected – respondent being the statutory authority has to pass an order exercising the power, as envisaged under the statute & after affording reasonable opportunity to petitioners – held that quasi-judicial authorities has to proceed strictly in compliance with principles of natural justice & to pass a speaking order – impugned communications-cum-order can’t be sustained – rejection of application without assigning reason was not valid
COMMISSIONER OF INCOME-TAX Versus SANJAY K. SARAWAGI - 2008 TMI - 4458 - BOMBAY HIGH COURT
Income Tax - Appellant, Dept. is seeking condonation of 150 days in filing appeal – plea that delay was due to restructuring of the Department, is not a reasonable cause for delay – above is a routine and stereotype reason furnished by the Revenue in almost all the applications for condonation of delay though restructuring of the Department has actually taken place in the year 2001 whereas this appeal is filed in the year 2003 – merely on the ground of restructuring delay cannot be condoned
SHARDA CHITRA MANDIR Versus INCOME-TAX OFFICER - 2008 TMI - 4457 - ALLAHABAD HIGH COURT
Income Tax - Grant-in-aid received by the appellant to promote the construction of new and permanent cinema halls in backward areas as per the Government policy dated July 21, 1986 – revenue receipt or capital receipt– revenue plea that subsidy is post-construction, therefore, it should not be treated as capital receipt, is not acceptable – in view of decision in case of Kalpana Palace v. CIT [2005] 275 ITR 365, money received by the appellant will be treated to be capital receipt and not revenue receipt
POWER PETRO PRODUCTS LTD. Versus ASSISTANT COMMISSIONER OF INCOME-TAX - 2008 TMI - 4456 - MADRAS HIGH COURT
Income Tax - Cash credit – Assessing Officer was of the view that the assessee was not able to prove the genuineness of the deposit and brought the sum of Rs. 2,75,000 to tax – third party denied the payment made towards share capital – no material to prove the case has been placed by assessee – Tribunal has also confirmed the additionss – not find any question of law – appeal is dismissed
Commissioner of Income Tax, Hisar Versus Pandit Shanti Sarup - 2008 TMI - 4455 - HIGH COURT PUNJAB AND HARYANA
Income Tax - Interest on enhanced compensation would not accrue till the issue of enhanced compensation is finally decided - thereafter on attaining the finality of determination of enhanced compensation by the Court, the interest accrued to the assessee has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the court on the time basis – revenue’s appeal dismissed - no substantial question of law survives for our consideration
CIT` Versus TERNA SHETKARI SAHAKARI SAKHAR KARKHANA LTD. - 2008 TMI - 4454 - BOMBAY HIGH COURT
Income Tax - State Advise Price fixed by the State Govt. doesn’t contain any direction to deduct the cost of the binding materials from the SAP - rebate was not mandatory – It is not in dispute that the assessee has made payments to members and non members as per the SAP fixed by the State Govt., hence it cannot be said that the payments made was in excess of the Sugarcane (Control) Order & consequently making addition on that ground does not arise – revenue’s appeal dismissed
COMMISSIONER OF INCOME-TAX Versus MANJARA SHETKARI SAHAKARI SAKHAR KARKHANA LTD. - 2008 TMI - 4453 - BOMBAY HIGH COURT
Income Tax - Assessee, Co-operative Sugar Factory - assessee purchased sugarcane at a price fixed by the State Govt which was higher than statutory minimum price (SMP) – plea of revenue that differential amount between State govt. price & SMP is nature of distribution of profit, is not acceptable – assessee have to pay state advices price – Sec. 40A(2) not applicable to cooperative society - Khodki charges was not Bonus & these are incurred for the business purposes so allowable as business expenditure
COMMISSIONER OF INCOME-TAX Versus FEDERAL BANK LTD. - 2008 TMI - 4452 - KERALA HIGH COURT
Income Tax - Assessee, banking Co. – interest on govt. securities - Merely because the assessee has declared it as amount receivable in the course of time, it does not mean that interest on income had in fact accrued to the assessee – only real income is assessable under the Act - Though interest due or receivable is assessable under the mercantile system, since the interest on securities involved in this case, was neither received nor receivable during the previous year, such interest cannot be assessed
DR. MISS CHANDRAWATI Versus COMMISSIONER OF INCOME-TAX - 2008 TMI - 4451 - ALLAHABAD HIGH COURT
Income Tax - Applicant claimed depreciation on building of nursing home @ of 20 %., the rate applicable to a hotel as nursing home is providing lodging to the patients – held that nursing home could not be treated as a hotel allowed the depreciation only @ of 10 % - Tribunal has declined to permit the applicant to raise the additional ground. The discretion exercised by the Tribunal cannot be said to be based on irrelevant material or consideration, hence question no. 1 doesn’t arise
MIDLAND RUBBER AND PRODUCE COMPANY LTD. Versus STATE OF KERALA - 2008 TMI - 4445 - KERALA HIGH COURT
Income Tax - Loss was occasioned to petitioner due to damage to the stock of rubber latex & a claim for insurance was made in Nov. 1992 – insurance amount was received during the period of A.Y. 1994-95 – in view of section 4(2)(ii), contention raised by the petitioner that the amount received as insurance claim could be related only to 1992-93 and not to the agricultural income of 1994-95 is liable to be rejected – contentions raised by the petitioner are devoid of merits & they are accordingly rejected
ALL GUJARAT FEDERATION OF TAX CONSULTANTS AND OTHERS Versus UOI AND OTHERS - 2008 TMI - 4444 - GUJARAT HIGH COURT
Income Tax - Petitioner has prayed that not.762(E) dated May 14, 2007, introducing new forms for the purpose of filing tax returns be quashed & petitioners be permitted to file returns in “Saral” form – assessee contended that new forms are complicated - about 6,77,330 taxpayers out of about 25 lakhs, have already filed their returns so it is difficult to accept the contention of petitioner – dept is directed to accept the return forms which are submitted by the taxpayers, subject to the genuine difficulty
AAN AAM PROP. Versus COMMISSIONER OF INCOME-TAX - 2008 TMI - 4388 - PUNJAB AND HARYANA HIGH COURT
Income Tax - On receipt of information that income in the form of investment in construction of building and installation of plant and machinery had escaped assessment, a notice was issued to the assessee on February 14, 1980 - filed return on November 3, 1984 – allegation of escapement of income was found correct – delay of 56 months in filing return after the notice u/s 148 – assessee even did not respond to SCN issued u/s 271(1)(a) - penalty under section 271(1) (a) is imposable
Monday, July 7, 2008
Service Tax Case Laws
Service Tax - 2008 - TMI - 4479 - HIGH COURT OF GAUHATI - Applicability of Service Tax on the business of development and sale of immovable properties, i.e., real estates - whether the appellant has been working, as a "service provider", for those persons with whom the petitioner-company enters into agreements and constructs flats for the purpose of sale to those with whom such agreements are entered into - HC held that department is binding by the circular issued by board. HC further held that, the activity in question is not subject to service tax.
Service Tax - 2008 - TMI - 4478 - HIGH COURT OF ANDHRA PRADESH - Applicability of Service tax on Works Contract - Appellant sought to declare the circular no. 98/1/2008 St dated 4-1-2008 ultra virus the Finance Act, 1994. In the circular it is said that contracts executed prior to 1.6.2006 shall be taxable under the old respective categories. Appellant wants to pay tax on the works contract under the new provision 65(105)(zzzza) - HC has granted interim relief to the petitioner to pay service tax under new category subject to further orders.
Service Tax - 2008 - TMI - 4449 - CESTAT, Delhi - Applicability of Service Tax on services provided by private companies relating to generation, supply, distribution etc. on behalf of state power board (state governments, i.e. Madhya Pradesh Electricity Board) to the consumers - Demand was raised to the tune of Rs. 67,28,53,038/-. CESTAT has found that prima fascia the service is taxable under the category of "Business Support Service" and ordered to deposit Rs. 5 crore and stay granted for the balance demand from pre-deposit
Service Tax - 2008 - TMI - 4478 - HIGH COURT OF ANDHRA PRADESH - Applicability of Service tax on Works Contract - Appellant sought to declare the circular no. 98/1/2008 St dated 4-1-2008 ultra virus the Finance Act, 1994. In the circular it is said that contracts executed prior to 1.6.2006 shall be taxable under the old respective categories. Appellant wants to pay tax on the works contract under the new provision 65(105)(zzzza) - HC has granted interim relief to the petitioner to pay service tax under new category subject to further orders.
Service Tax - 2008 - TMI - 4449 - CESTAT, Delhi - Applicability of Service Tax on services provided by private companies relating to generation, supply, distribution etc. on behalf of state power board (state governments, i.e. Madhya Pradesh Electricity Board) to the consumers - Demand was raised to the tune of Rs. 67,28,53,038/-. CESTAT has found that prima fascia the service is taxable under the category of "Business Support Service" and ordered to deposit Rs. 5 crore and stay granted for the balance demand from pre-deposit
Useful Web Sites
Finance.
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Encyclopedia
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Photography
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Literature
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Books.
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www.bookstudio.com
www.booktalk.com
www.finsights.com
www.walletwatch.com
www.moneycontrol.com
www.myiris.com
www.stockmarkit.com
www.economywatch.com
www.equitymaster.com
www.indiainfoline.com
www.sharebazaar.com
www.kotakstreet.com
www.5paisa.com
www.indiabulls.com
www.dhan.com
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www.paisapower.com
www.nyse.com
www.nasdaq.com
www.nse-india.com
www.sebi.com
www.khel.com
www.pcquote.com
www.stockmaster.com
www.xe.net/currency
www.motilaloswal.com
www.mutualfundsindia.com
www.rrfinance.com
www.sharekhan.com
www.rupeesaver.com
www.ingsavingtrust.com
www.icicidirect.com
www.unittrustofindia.com
www.licmutual.com
www.bajajcapital.com
www.kotakmahindra.com
www.ebizbirlaglobal.com
www.creditcapitalamc.com
Encyclopedia
www.encyclopedia.com
www.encarta.msn.com
www.britannica.com
www.ntreasearch.com
www.go.grolier.com
www.kids.infoplease.com
www.letsfindout.com
www.stars.com
www.boatshowusa.com
www.encyclozine.com
www.libraryspot.com
www.shotokai.cl
www.emulateme.com
www.wikipedia.org
Photography
www.photographyreview.com
www.agfaphoto.com
www.indiaphotography.com
www.masters-of-photography.com
www.photodisc.com
www.indialight.com
www.photoindia.com
www.photocentreindia.com
www.onlinephotography.com
www.photographymuseum.com
www.photoresource.com
www.sightphoto.com
www.kodak.com
www.digital-photography.org
www.photolinks.net
www.thephotosite.com
www.arteffects.com
Literature
www.vrindaindia.com
www.amedeo.com
www.litrature.org
www.iranonline.com
www.afganonline.com
www.ethiopiaonline.com
Books.
www.amazon.com
www.merikitaab.com
www.barnesandnoble.com
www.mozzie.com
www.idgbooks.com
www.ingrambook.com
www.ambook.org
www.bookwire.com
www.booktv.com
www.bestbookbuys.com
www.bigbook.com
www.1stbooks.com
www.borders.com
www.bookbrowser.com
www.bookweb.org
www.abebook.com
www.worldbooknetwork.com
www.vintage-books.com
www.bookstudio.com
www.booktalk.com
Tuesday Quotes
“Always make your absence felt in a way that somebody misses you ,but let not your absence be so long that somebody starts to live without you.”
Sunday, July 6, 2008
Computer Shortcut Keys
BASIC SHORTCUT KEYS
Alt + F File menu options in current program
Alt + E Edit options in current program
F1 Universal help (for all programs)
Ctrl + A Select all text
Ctrl + X Cut selected item
Shift + Del Cut selected item
Ctrl + C Copy selected item
Ctrl + Ins Copy selected item
Ctrl + V Paste
Shift + Ins Paste
Home Go to beginning of current line
Ctrl + Home Go to beginning of document
End Go to end of current line
Ctrl + End Go to end of document
Shift + Home Highlight from current position to beginning of line
Shift + End Highlight from current position to end of line
Ctrl + f Move one word to the left at a time
Ctrl + g Move one word to the right at a time
MICROSOFT® WINDOWS® SHORTCUT KEYS
Alt + Tab Switch between open applications
Alt +Shift + Tab Switch backwards between open
applications
Alt + PrintScreenCreate screen shot for current program
Ctrl + Alt + Del Reboot/Windows® task manager
Ctrl + Esc Bring up start menu
Alt + Esc Switch between applications on taskbar
F2 Rename selected icon
F3 Start find from desktop
F4 Open the drive selection when browsing
F5 Refresh contents
Alt + F4 Close current open program
Ctrl + F4 Close window in program
Ctrl + PlusKeyAutomatically adjust widths of all columns
in Windows Explorer
Alt + Enter Open properties window of selected icon
or program
Shift + F10 Simulate right-click on selected item
Shift + Del Delete programs/files permanently
Holding Shift During BootupBoot safe mode or bypass system files
Holding Shift During BootupWhen putting in an audio CD, will prevent
CD Player from playing
WORD® SHORTCUT KEYS
Ctrl + A Select all contents of the page
Ctrl + B Bold highlighted selection
Ctrl + C Copy selected text
Ctrl + X Cut selected text
Ctrl + N Open new/blank document
Ctrl + O Open options
Ctrl + P Open the print window
Ctrl + F Open find box
Ctrl + I Italicize highlighted selection
Ctrl + K Insert link
Ctrl + U Underline highlighted selection
Ctrl + V Paste
Ctrl + Y Redo the last action performed
Ctrl + Z Undo last action
Ctrl + G Find and replace options
Ctrl + H Find and replace options
Ctrl + J Justify paragraph alignment
Ctrl + L Align selected text or line to the left
Ctrl + Q Align selected paragraph to the left
Ctrl + E Align selected text or line to the center
Ctrl + R Align selected text or line to the right
Ctrl + M Indent the paragraph
Ctrl + T Hanging indent
Ctrl + D Font options
Ctrl + Shift + F Change the font
Ctrl + Shift + > Increase selected font +1
Ctrl + ] Increase selected font +1
Ctrl + Shift + < Decrease selected font -1
Ctrl + [ Decrease selected font -1
Ctrl + Shift + * View or hide non printing characters
Ctrl + f Move one word to the left
Ctrl + g Move one word to the right
Ctrl + h Move to beginning of the line or paragraph
Ctrl + i Move to the end of the paragraph
Ctrl + Del Delete word to right of cursor
Ctrl + Backspace Delete word to left of cursor
Ctrl + End Move cursor to end of document
Ctrl + Home Move cursor to beginning of document
Ctrl + Space Reset highlighted text to default font
Ctrl + 1 Single-space lines
Ctrl + 2 Double-space lines
Ctrl + 5 1.5-line spacing
Ctrl + Alt + 1 Change text to heading 1
Ctrl + Alt + 2 Change text to heading 2
Ctrl + Alt + 3 Change text to heading 3
F1 Open help
Shift + F3 Change case of selected text
Shift + Insert Paste
F4 Repeat last action performed (Word 2000+)
F7 Spell check selected text and/or document
Shift + F7 Activate the thesaurus
F12 Save as
Ctrl + S Save
Shift + F12 Save
Alt + Shift + D Insert the current date
Alt + Shift + T Insert the current time
Ctrl + W Close document
EXCEL® SHORTCUT KEYS
F2 Edit the selected cell
F5 Go to a specific cell
F7 Spell check selected text and/or document
F11 Create chart
Ctrl + Shift + ; Enter the current time
Ctrl + ; Enter the current date
Alt + Shift + F1 Insert new worksheet
Shift + F3 Open the Excel® formula window
Shift + F5 Bring up search box
Ctrl + A Select all contents of worksheet
Ctrl + B Bold highlighted selection
Ctrl + I Italicize highlighted selection
Ctrl + C Copy selected text
Ctrl + V Paste
Ctrl + D Fill
Ctrl + K Insert link
Ctrl + F Open find and replace options
Ctrl + G Open go-to options
Ctrl + H Open find and replace options
Ctrl + U Underline highlighted selection
Ctrl + Y Underline selected text
Ctrl + 5 Strikethrough highlighted selection
Ctrl + O Open options
Ctrl + N Open new document
Ctrl + P Open print dialog box
Ctrl + S Save
Ctrl + Z Undo last action
Ctrl + F9 Minimize current window
Ctrl + F10 Maximize currently selected window
Ctrl + F6 Switch between open workbooks/windows
Ctrl + Page up & Page Down Move between Excel® worksheets in the
same document
Ctrl + Tab Move between two or more open Excel® files
Alt + = Create formula to sum all of above cells
Ctrl + ‘ Insert value of above cell into current cell
Ctrl + Shift + ! Format number in comma format
Ctrl + Shift + $ Format number in currency format
Ctrl + Shift + # Format number in date format
Ctrl + Shift + % Format number in percentage format
Ctrl + Shift + ^ Format number in scientific format
Ctrl + Shift + @ Format number in time format
Ctrl + g Move to next section of text
Ctrl + Space Select entire column
Shift + Space Select entire row
Ctrl + W Close document
OUTLOOK® SHORTCUT KEYSTLOOK® SHORTCUT KEYS
Alt + S Send the email
Ctrl + C Copy selected text
Ctrl + X Cut selected text
Ctrl + P Open print dialog box
Ctrl + K Complete name/email typed in address bar
Ctrl + B Bold highlighted selection
Ctrl + I Italicize highlighted selection
Ctrl + U Underline highlighted selection
Ctrl + R Reply to an email
Ctrl + F Forward an email
Ctrl + N Create a new email
Ctrl + Shift + A Create a new appointment to your calendar
Ctrl + Shift + O Open the outbox
Ctrl + Shift + I Open the inbox
Ctrl + Shift + K Add a new task
Ctrl + Shift + C Create a new contact
Ctrl + Shift+ J Create a new journal entry
WINKEY SHORTCUTS
WINKEY + D Bring desktop to the top of other windows
WINKEY + M Minimize all windows
WINKEY +SHIFT + MUndo the minimize done by WINKEY + M
and WINKEY + D
WINKEY + E Open Microsoft Explorer
WINKEY + Tab Cycle through open programs on taskbar
WINKEY + F Display the Windows® Search/Find feature
WINKEY +CTRL + FDisplay the search for computers window
WINKEY + F1 Display the Microsoft® Windows® help
WINKEY + R Open the run window
WINKEY +Pause /BreakOpen the system properties window
WINKEY + U Open utility manager
WINKEY + L Lock the computer (Windows XP® & later
Alt + F File menu options in current program
Alt + E Edit options in current program
F1 Universal help (for all programs)
Ctrl + A Select all text
Ctrl + X Cut selected item
Shift + Del Cut selected item
Ctrl + C Copy selected item
Ctrl + Ins Copy selected item
Ctrl + V Paste
Shift + Ins Paste
Home Go to beginning of current line
Ctrl + Home Go to beginning of document
End Go to end of current line
Ctrl + End Go to end of document
Shift + Home Highlight from current position to beginning of line
Shift + End Highlight from current position to end of line
Ctrl + f Move one word to the left at a time
Ctrl + g Move one word to the right at a time
MICROSOFT® WINDOWS® SHORTCUT KEYS
Alt + Tab Switch between open applications
Alt +Shift + Tab Switch backwards between open
applications
Alt + PrintScreenCreate screen shot for current program
Ctrl + Alt + Del Reboot/Windows® task manager
Ctrl + Esc Bring up start menu
Alt + Esc Switch between applications on taskbar
F2 Rename selected icon
F3 Start find from desktop
F4 Open the drive selection when browsing
F5 Refresh contents
Alt + F4 Close current open program
Ctrl + F4 Close window in program
Ctrl + PlusKeyAutomatically adjust widths of all columns
in Windows Explorer
Alt + Enter Open properties window of selected icon
or program
Shift + F10 Simulate right-click on selected item
Shift + Del Delete programs/files permanently
Holding Shift During BootupBoot safe mode or bypass system files
Holding Shift During BootupWhen putting in an audio CD, will prevent
CD Player from playing
WORD® SHORTCUT KEYS
Ctrl + A Select all contents of the page
Ctrl + B Bold highlighted selection
Ctrl + C Copy selected text
Ctrl + X Cut selected text
Ctrl + N Open new/blank document
Ctrl + O Open options
Ctrl + P Open the print window
Ctrl + F Open find box
Ctrl + I Italicize highlighted selection
Ctrl + K Insert link
Ctrl + U Underline highlighted selection
Ctrl + V Paste
Ctrl + Y Redo the last action performed
Ctrl + Z Undo last action
Ctrl + G Find and replace options
Ctrl + H Find and replace options
Ctrl + J Justify paragraph alignment
Ctrl + L Align selected text or line to the left
Ctrl + Q Align selected paragraph to the left
Ctrl + E Align selected text or line to the center
Ctrl + R Align selected text or line to the right
Ctrl + M Indent the paragraph
Ctrl + T Hanging indent
Ctrl + D Font options
Ctrl + Shift + F Change the font
Ctrl + Shift + > Increase selected font +1
Ctrl + ] Increase selected font +1
Ctrl + Shift + < Decrease selected font -1
Ctrl + [ Decrease selected font -1
Ctrl + Shift + * View or hide non printing characters
Ctrl + f Move one word to the left
Ctrl + g Move one word to the right
Ctrl + h Move to beginning of the line or paragraph
Ctrl + i Move to the end of the paragraph
Ctrl + Del Delete word to right of cursor
Ctrl + Backspace Delete word to left of cursor
Ctrl + End Move cursor to end of document
Ctrl + Home Move cursor to beginning of document
Ctrl + Space Reset highlighted text to default font
Ctrl + 1 Single-space lines
Ctrl + 2 Double-space lines
Ctrl + 5 1.5-line spacing
Ctrl + Alt + 1 Change text to heading 1
Ctrl + Alt + 2 Change text to heading 2
Ctrl + Alt + 3 Change text to heading 3
F1 Open help
Shift + F3 Change case of selected text
Shift + Insert Paste
F4 Repeat last action performed (Word 2000+)
F7 Spell check selected text and/or document
Shift + F7 Activate the thesaurus
F12 Save as
Ctrl + S Save
Shift + F12 Save
Alt + Shift + D Insert the current date
Alt + Shift + T Insert the current time
Ctrl + W Close document
EXCEL® SHORTCUT KEYS
F2 Edit the selected cell
F5 Go to a specific cell
F7 Spell check selected text and/or document
F11 Create chart
Ctrl + Shift + ; Enter the current time
Ctrl + ; Enter the current date
Alt + Shift + F1 Insert new worksheet
Shift + F3 Open the Excel® formula window
Shift + F5 Bring up search box
Ctrl + A Select all contents of worksheet
Ctrl + B Bold highlighted selection
Ctrl + I Italicize highlighted selection
Ctrl + C Copy selected text
Ctrl + V Paste
Ctrl + D Fill
Ctrl + K Insert link
Ctrl + F Open find and replace options
Ctrl + G Open go-to options
Ctrl + H Open find and replace options
Ctrl + U Underline highlighted selection
Ctrl + Y Underline selected text
Ctrl + 5 Strikethrough highlighted selection
Ctrl + O Open options
Ctrl + N Open new document
Ctrl + P Open print dialog box
Ctrl + S Save
Ctrl + Z Undo last action
Ctrl + F9 Minimize current window
Ctrl + F10 Maximize currently selected window
Ctrl + F6 Switch between open workbooks/windows
Ctrl + Page up & Page Down Move between Excel® worksheets in the
same document
Ctrl + Tab Move between two or more open Excel® files
Alt + = Create formula to sum all of above cells
Ctrl + ‘ Insert value of above cell into current cell
Ctrl + Shift + ! Format number in comma format
Ctrl + Shift + $ Format number in currency format
Ctrl + Shift + # Format number in date format
Ctrl + Shift + % Format number in percentage format
Ctrl + Shift + ^ Format number in scientific format
Ctrl + Shift + @ Format number in time format
Ctrl + g Move to next section of text
Ctrl + Space Select entire column
Shift + Space Select entire row
Ctrl + W Close document
OUTLOOK® SHORTCUT KEYSTLOOK® SHORTCUT KEYS
Alt + S Send the email
Ctrl + C Copy selected text
Ctrl + X Cut selected text
Ctrl + P Open print dialog box
Ctrl + K Complete name/email typed in address bar
Ctrl + B Bold highlighted selection
Ctrl + I Italicize highlighted selection
Ctrl + U Underline highlighted selection
Ctrl + R Reply to an email
Ctrl + F Forward an email
Ctrl + N Create a new email
Ctrl + Shift + A Create a new appointment to your calendar
Ctrl + Shift + O Open the outbox
Ctrl + Shift + I Open the inbox
Ctrl + Shift + K Add a new task
Ctrl + Shift + C Create a new contact
Ctrl + Shift+ J Create a new journal entry
WINKEY SHORTCUTS
WINKEY + D Bring desktop to the top of other windows
WINKEY + M Minimize all windows
WINKEY +SHIFT + MUndo the minimize done by WINKEY + M
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269SS of Income Tax Act 1961
ACCEPTANCE OF LOAN OR DEPOSIT OF MONEY
Q1. What is the definition of the words Loans or Deposit?
As per the explanation in section 269SS loan or deposit mean loan or deposit of money.
Q2. From whom loans and deposit can be accepted?
Though there is no such restriction under the IT Act, 1961 but restrictions have been imposed by the RBI for different persons. For companies also restrictions have been imposed under the Companies Act.
Q3. Who are exempted from section 269SS?
The following persons are exempted:
Government
Any Banking Company, Post office Savings Bank or Co-operative Bank,
Any Corporation established by a Central, State or Provincial Act,
And Government Company, as defined u/s 617 of Companies Act, 1956.
Other notified institutions, and
In a case, where the depositor and the acceptor, both are having agricultural income, and neither have any taxable income
Q4. How much loan or deposit of money can be accepted in cash?
Loan or deposit upto Rs 20,000/- can be accepted from one person as per provisions of section 269SS of the Income Tax Act, 1961. But care should be taken that the amount being taken now together with the earlier accumulated balance (including interest) should also not exceed Rs.20,000/ -.
Q5. What if loan is taken violating the above conditions of section 269SS of the Income Tax Act,1961 ?
Penalty equal to amount of loan or deposit accepted in cash may be imposed under section 271D of the Income Tax Act, 1961.
Q6. Where the assessee receives deposit of Rs.20,000/- or more as an agent, will the provisions of section 269SS apply?
If a person receives any deposit of Rs.20,000/- as an agent or servant and not on his own behalf, the provision of Sec 269SS does not apply (ACIT v Sahara Indai[2006] 100 ITD 93(Luck.)).
Q7. What if an assessee takes Rs 15,000/- each in cash from two persons and there is no earlier balance of these persons?
There is no violation of section 269SS of the Income Tax Act,1961 in such a case .
Q8. What if an assessee takes loan in cash from one person of Rs.15,000/- by cheque and Rs.15,000/- in cash?
If the asseesse takes the cash loan first and cheque say next day , then as on date of accepting the loan in cash it does not exceed Rs.20,000/- there is no violation of section 269SS of the Income Tax Act, 1961.
Q9. Can an assessee accept loan or deposit of money exceeding the limits laid down in section 269SS of the Income Tax Act, 1961 by book transfer entry or by bearer cheque or self cheque or any other mode other than account payee cheques?
No, the only mode prescribed in section 269SS of the Income Tax Act, 1961 is Account Payee Cheque or Account Payee Bank Draft.
Q10. If an assessee gives loan to a person exceeding Rs.20,000/- in cash or otherwise than account payee cheque, is the assessee violating the provisions of section 269SS of the Income Tax Act ,1961.?
No, the provisions of section 269SS is applicable to person accepting the loan or deposit of money. It does not affect the person giving the loan.
Q11. Where the assessee does not comply with the provisions 269SS can he be excused from penalty under section 271D?
Section 273B says if the assessee proves that there was reasonable cause for failure to comply with provisions of section 269SS , no penalty under section 271D is imposable.
Q12. When a cause can be said to reasonable cause?
According to Kalakrithi v. ITO [2002] 253 ITR 754 (Mad.) reasonable cause is:
The words “reasonable cause” in section 273B must necessarily have a relation to the failure on the part of the assessee to comply with the requirement of the law which he had failed to comply with. In case of delay in compliance, the cause shown must be for the whole of the period of the delay and not merely for a part thereof. If the cause shown is such as to explain the delay as a whole and constitutes a good reason for the non-compliance, no penalty would be leviable. However, in cases where the cause shown is such as to explain a part of the delay, or the cause shown is only to mitigate the gravity of the non-compliance, such a cause cannot be extrapolated and treated as being a good cause for the whole of the period of the delay in its entirety. All or nothing, the proposition canvassed by the petitioner would be detrimental to assessees themselves if the choice placed before the Commissioner in all cases were to be that he should set aside all penalties the moment he finds that there is a cause, though not fully satisfactory, but which may be accepted in part which may justify a grant of a partial relief. If the commissioner were to be compelled to grant relief in whole even where the cause shown is not such as to explain in full the delay or the gravity of the non-compliance, the Commissioner would be compelled to reject and deny all relief. A construction which would preserve the exercise of the power in favour of the assessee in circumstances which warrant it is to be preferred to a construction which would result in the likelihood of denial of relief
According to Azadi Bachao Andolan v. Union of India [2001] 252 ITR 471 (Delhi) reasonable cause is:
Reasonable cause as applied to human action, is that which would constrain a person of average intelligence and ordinary prudence. The expression ‘reasonable’ is not susceptible of a clear and precise definition; for an attempt to give a specific meaning to the word ‘reasonable’ is trying to count what is not number and measure what is not space. It can be described as rational according to the dictates of reason and is not excessive or immoderate. The word ‘reasonable’ has in law the prima facie meaning of reasonable with regard to those circumstances of which the actor, called on to act reasonably, knows or ought to know. Reasonable cause can be reasonably said to be a cause which prevents a man of ordinary prudence and average intelligence, acting under normal circumstances, without negligence or inaction or want of bona fides
Q13. The assessee had accepted Loan exceeding Rs.20,000/- in cash and the Assessing Officer has initiated penalty proceedings .What is the remedy available with the assessee?
The assessee will have to move to the Assessing Officer with a prayer for dropping of Penalty proceedings. Depending on facts of the case the assessee will have to prove that there was reasonable cause for failure to comply with provisions of section 269SS. The assessee will need to furnish evidences in support of his contentions also. If the Assessing Officer is satisfied with the submission, he may drop the penalty proceedings.
Some of the circumstances under which judiciary has treated the cause as reasonable cause and cancelled the penalty imposed are as follows. The assessee will have to go through the full facts of the case to find out if facts of his case are similar, to rely upon the judgment as covered. If the facts are somewhat similar, the judgment may be relied upon for its persuasive effect.
13.1 Bonafide belief that the transaction would not violate section 269SS. And the transactions are proved to be genuine
Ratttan Singh Maan Singh v. CIT (1995) 127 Taxation 89 (Asr-Trib)
Harpal Singh Jaswant Singh V. ITO (1995) 126 Taxation 12 (Asr-Trib)
CIT Vs. Avet Chemicals (P) Ltd (2007) 288 ITR 310 (P&H)
ITO vs. Shri Babulal Singhvi (2000) 15 DTC 324 (Jodhpur Trib)
Choudhury Co Bhujiyawala v.ITO (2004) 89 TTJ (Jodhpur Trib) 357
CIT vs Saini Medical Store (2005) 276 ITR 79 (P & H )
3.2 Cash loan from agriculturists who were illiterate and were not having bank accounts.
ITO vs. Ganesh Wooden industries (2003) 174 Taxation 76 (Ahd-Trb)
13.3 Sale proceeds of agriculturists kept by Kaccha Arahtiya on bonafide belief that circular no 556 dt 25-2-1990 permits it .
ITO vs. Bharadiya Trading Company (2003) 85 ITD 42 (Pune-Trib)
13.4 Cash Loan taken on account of extreme exigencies and compulsions of the business. Genuiness of transacions not in doubt.
Mrs Rupali R. Desai v. Addl CIT (2004) 88 ITD 76 (Mum-Trib)
13.5 Cash deposits accepted under compelling circumstances .
ITO vs Akik Tiles (P) Ld (2005) 96 TTJ (Ahd-Trib) 670
13.6 No bank account of the depositor and ignorance of law and no advise from counsel
ITO vs. Prbhulal Sahu (2006) 99 TTJ 177 (Jd_trib)
13.7 Mere genuineness of transaction is not reasonable cause
Thenamal Chajjer v. Joint CIT (2005) 96 ITD 210 (Chennai Trib)
Kans Raj & Sons V ITO (2005) 92 TTJ (Asr Trib) 931
Q14. What is the remedy if the penalty is imposed by the Assessing Officer?
The assessee will have to file an appeal before CIT(A) against the order of penalty by the Assessing Officer. The appeal is to filed within 30 days of the receipt of the order.
Q15. Whether reasonable cause is to be stated before AO or it is to be proved?
Mere statement about reasonable cause is not sufficient. You must prove the facts stated before AO while pleading existence of reasonable cause. Existence of reasonable cause is to be proved.
15.1 Penalty is inevitable if reasonable cause not established
ACIT vs Jabalpur Hospital & Research Centre (p) Ltd (2006) 103 TTJ (jab Trib) 536
15.2 Necessity for the purpose of businseness not proved and loan not recorded in books.Penalty leviable.
Thennamal Chajjer Vs. JCIT (2005) 96 ITD 210 (chen –trib)
Q16. Where peak balance of deposits is added as income, whether penalty for accepting deposits in cash can be levied?
In Rajesh Paradasani v ITO ( ITA No. 125/Ind/2004) it was held that in such case penalty u/s 271D can not be imposed.
Q17. Whether Share application money attracts provisions of section 269SS?
In Balotia Engineering Works (P) Ltd v CIT (2005) 6 (I) ITCL 418 (Jhar HC) it was held that section 269SS is applicable to Share Application money also.
Q18. Whether acknowledgment of debt by passing journal entry violates section 269SS?
In Sunflower Builder (P) Ltd vs CIT (1997) 61 ITD 227 (Pune Trib) it was held that acknowledgment of debt by contra entry does not violate section 269SS , because there is no loan or deposit of money.
Q19. In a case where the amount of deposit is treated as income by AO, whether penalty u/s 271D can be levied?
When the AO is saying that it is income, with the same breath he can not say that is loan . So no penalty u/s 271D can be levied in such cases.
Diwan Enterprises Vs CIT (2000) 246ITR 571(Del) , ACIT vs. M.L.Vijay (2000) 16 DTC 542 (Jb-Trib) , ITO vs Sunil M Kashliwal (2003) 80 TTJ (Pune Trib) (TM)
Q20. Whether partner can contribute to the firm otherwise than by cheque?
The amount deposited by partner to the firm as Capital Contribution is not Loan or deposit of money. As such section 269SS is not applicable.
Q21. Whether accepting deposits by transfer voucher of bank violates section 269SS?
In ACIT vs Jag Vijay Auto Finance (P) Ltd (2000) 68 TTJ (jb Tib) 44 it was held that deposits by transfer voucher of bank is not violation of section 269SS .
Q1. What is the definition of the words Loans or Deposit?
As per the explanation in section 269SS loan or deposit mean loan or deposit of money.
Q2. From whom loans and deposit can be accepted?
Though there is no such restriction under the IT Act, 1961 but restrictions have been imposed by the RBI for different persons. For companies also restrictions have been imposed under the Companies Act.
Q3. Who are exempted from section 269SS?
The following persons are exempted:
Government
Any Banking Company, Post office Savings Bank or Co-operative Bank,
Any Corporation established by a Central, State or Provincial Act,
And Government Company, as defined u/s 617 of Companies Act, 1956.
Other notified institutions, and
In a case, where the depositor and the acceptor, both are having agricultural income, and neither have any taxable income
Q4. How much loan or deposit of money can be accepted in cash?
Loan or deposit upto Rs 20,000/- can be accepted from one person as per provisions of section 269SS of the Income Tax Act, 1961. But care should be taken that the amount being taken now together with the earlier accumulated balance (including interest) should also not exceed Rs.20,000/ -.
Q5. What if loan is taken violating the above conditions of section 269SS of the Income Tax Act,1961 ?
Penalty equal to amount of loan or deposit accepted in cash may be imposed under section 271D of the Income Tax Act, 1961.
Q6. Where the assessee receives deposit of Rs.20,000/- or more as an agent, will the provisions of section 269SS apply?
If a person receives any deposit of Rs.20,000/- as an agent or servant and not on his own behalf, the provision of Sec 269SS does not apply (ACIT v Sahara Indai[2006] 100 ITD 93(Luck.)).
Q7. What if an assessee takes Rs 15,000/- each in cash from two persons and there is no earlier balance of these persons?
There is no violation of section 269SS of the Income Tax Act,1961 in such a case .
Q8. What if an assessee takes loan in cash from one person of Rs.15,000/- by cheque and Rs.15,000/- in cash?
If the asseesse takes the cash loan first and cheque say next day , then as on date of accepting the loan in cash it does not exceed Rs.20,000/- there is no violation of section 269SS of the Income Tax Act, 1961.
Q9. Can an assessee accept loan or deposit of money exceeding the limits laid down in section 269SS of the Income Tax Act, 1961 by book transfer entry or by bearer cheque or self cheque or any other mode other than account payee cheques?
No, the only mode prescribed in section 269SS of the Income Tax Act, 1961 is Account Payee Cheque or Account Payee Bank Draft.
Q10. If an assessee gives loan to a person exceeding Rs.20,000/- in cash or otherwise than account payee cheque, is the assessee violating the provisions of section 269SS of the Income Tax Act ,1961.?
No, the provisions of section 269SS is applicable to person accepting the loan or deposit of money. It does not affect the person giving the loan.
Q11. Where the assessee does not comply with the provisions 269SS can he be excused from penalty under section 271D?
Section 273B says if the assessee proves that there was reasonable cause for failure to comply with provisions of section 269SS , no penalty under section 271D is imposable.
Q12. When a cause can be said to reasonable cause?
According to Kalakrithi v. ITO [2002] 253 ITR 754 (Mad.) reasonable cause is:
The words “reasonable cause” in section 273B must necessarily have a relation to the failure on the part of the assessee to comply with the requirement of the law which he had failed to comply with. In case of delay in compliance, the cause shown must be for the whole of the period of the delay and not merely for a part thereof. If the cause shown is such as to explain the delay as a whole and constitutes a good reason for the non-compliance, no penalty would be leviable. However, in cases where the cause shown is such as to explain a part of the delay, or the cause shown is only to mitigate the gravity of the non-compliance, such a cause cannot be extrapolated and treated as being a good cause for the whole of the period of the delay in its entirety. All or nothing, the proposition canvassed by the petitioner would be detrimental to assessees themselves if the choice placed before the Commissioner in all cases were to be that he should set aside all penalties the moment he finds that there is a cause, though not fully satisfactory, but which may be accepted in part which may justify a grant of a partial relief. If the commissioner were to be compelled to grant relief in whole even where the cause shown is not such as to explain in full the delay or the gravity of the non-compliance, the Commissioner would be compelled to reject and deny all relief. A construction which would preserve the exercise of the power in favour of the assessee in circumstances which warrant it is to be preferred to a construction which would result in the likelihood of denial of relief
According to Azadi Bachao Andolan v. Union of India [2001] 252 ITR 471 (Delhi) reasonable cause is:
Reasonable cause as applied to human action, is that which would constrain a person of average intelligence and ordinary prudence. The expression ‘reasonable’ is not susceptible of a clear and precise definition; for an attempt to give a specific meaning to the word ‘reasonable’ is trying to count what is not number and measure what is not space. It can be described as rational according to the dictates of reason and is not excessive or immoderate. The word ‘reasonable’ has in law the prima facie meaning of reasonable with regard to those circumstances of which the actor, called on to act reasonably, knows or ought to know. Reasonable cause can be reasonably said to be a cause which prevents a man of ordinary prudence and average intelligence, acting under normal circumstances, without negligence or inaction or want of bona fides
Q13. The assessee had accepted Loan exceeding Rs.20,000/- in cash and the Assessing Officer has initiated penalty proceedings .What is the remedy available with the assessee?
The assessee will have to move to the Assessing Officer with a prayer for dropping of Penalty proceedings. Depending on facts of the case the assessee will have to prove that there was reasonable cause for failure to comply with provisions of section 269SS. The assessee will need to furnish evidences in support of his contentions also. If the Assessing Officer is satisfied with the submission, he may drop the penalty proceedings.
Some of the circumstances under which judiciary has treated the cause as reasonable cause and cancelled the penalty imposed are as follows. The assessee will have to go through the full facts of the case to find out if facts of his case are similar, to rely upon the judgment as covered. If the facts are somewhat similar, the judgment may be relied upon for its persuasive effect.
13.1 Bonafide belief that the transaction would not violate section 269SS. And the transactions are proved to be genuine
Ratttan Singh Maan Singh v. CIT (1995) 127 Taxation 89 (Asr-Trib)
Harpal Singh Jaswant Singh V. ITO (1995) 126 Taxation 12 (Asr-Trib)
CIT Vs. Avet Chemicals (P) Ltd (2007) 288 ITR 310 (P&H)
ITO vs. Shri Babulal Singhvi (2000) 15 DTC 324 (Jodhpur Trib)
Choudhury Co Bhujiyawala v.ITO (2004) 89 TTJ (Jodhpur Trib) 357
CIT vs Saini Medical Store (2005) 276 ITR 79 (P & H )
3.2 Cash loan from agriculturists who were illiterate and were not having bank accounts.
ITO vs. Ganesh Wooden industries (2003) 174 Taxation 76 (Ahd-Trb)
13.3 Sale proceeds of agriculturists kept by Kaccha Arahtiya on bonafide belief that circular no 556 dt 25-2-1990 permits it .
ITO vs. Bharadiya Trading Company (2003) 85 ITD 42 (Pune-Trib)
13.4 Cash Loan taken on account of extreme exigencies and compulsions of the business. Genuiness of transacions not in doubt.
Mrs Rupali R. Desai v. Addl CIT (2004) 88 ITD 76 (Mum-Trib)
13.5 Cash deposits accepted under compelling circumstances .
ITO vs Akik Tiles (P) Ld (2005) 96 TTJ (Ahd-Trib) 670
13.6 No bank account of the depositor and ignorance of law and no advise from counsel
ITO vs. Prbhulal Sahu (2006) 99 TTJ 177 (Jd_trib)
13.7 Mere genuineness of transaction is not reasonable cause
Thenamal Chajjer v. Joint CIT (2005) 96 ITD 210 (Chennai Trib)
Kans Raj & Sons V ITO (2005) 92 TTJ (Asr Trib) 931
Q14. What is the remedy if the penalty is imposed by the Assessing Officer?
The assessee will have to file an appeal before CIT(A) against the order of penalty by the Assessing Officer. The appeal is to filed within 30 days of the receipt of the order.
Q15. Whether reasonable cause is to be stated before AO or it is to be proved?
Mere statement about reasonable cause is not sufficient. You must prove the facts stated before AO while pleading existence of reasonable cause. Existence of reasonable cause is to be proved.
15.1 Penalty is inevitable if reasonable cause not established
ACIT vs Jabalpur Hospital & Research Centre (p) Ltd (2006) 103 TTJ (jab Trib) 536
15.2 Necessity for the purpose of businseness not proved and loan not recorded in books.Penalty leviable.
Thennamal Chajjer Vs. JCIT (2005) 96 ITD 210 (chen –trib)
Q16. Where peak balance of deposits is added as income, whether penalty for accepting deposits in cash can be levied?
In Rajesh Paradasani v ITO ( ITA No. 125/Ind/2004) it was held that in such case penalty u/s 271D can not be imposed.
Q17. Whether Share application money attracts provisions of section 269SS?
In Balotia Engineering Works (P) Ltd v CIT (2005) 6 (I) ITCL 418 (Jhar HC) it was held that section 269SS is applicable to Share Application money also.
Q18. Whether acknowledgment of debt by passing journal entry violates section 269SS?
In Sunflower Builder (P) Ltd vs CIT (1997) 61 ITD 227 (Pune Trib) it was held that acknowledgment of debt by contra entry does not violate section 269SS , because there is no loan or deposit of money.
Q19. In a case where the amount of deposit is treated as income by AO, whether penalty u/s 271D can be levied?
When the AO is saying that it is income, with the same breath he can not say that is loan . So no penalty u/s 271D can be levied in such cases.
Diwan Enterprises Vs CIT (2000) 246ITR 571(Del) , ACIT vs. M.L.Vijay (2000) 16 DTC 542 (Jb-Trib) , ITO vs Sunil M Kashliwal (2003) 80 TTJ (Pune Trib) (TM)
Q20. Whether partner can contribute to the firm otherwise than by cheque?
The amount deposited by partner to the firm as Capital Contribution is not Loan or deposit of money. As such section 269SS is not applicable.
Q21. Whether accepting deposits by transfer voucher of bank violates section 269SS?
In ACIT vs Jag Vijay Auto Finance (P) Ltd (2000) 68 TTJ (jb Tib) 44 it was held that deposits by transfer voucher of bank is not violation of section 269SS .
Important Sections of Companies Act 1956
Some Important Sections Related with Audit
224. Appointment and remuneration of auditor.
224A Auditor not to be appointed except with the approval of the company by special resolution in certain cases.
225 Provisions as to resolutions for appointing or removing auditors
226. Qualifications and disqualifications of auditors
227. Powers and duties of auditors
228. Audit of accounts of branch office of company
229. Signature of audit report, etc.
230. Reading and inspection of auditor’s report
231. Right of auditor to attend general meeting
232. Penalty for non-compliance with sections 225 to 231
233. Penalty for non-compliance by auditor with sections 227 and 229
233A. Power of Central Government to direct special audit in certain cases
233B. Audit of cost accounts in certain cases
SECTION 226: - Qualification and Disqualification of Auditor
226 (1)
· Chartered Accountant with in the meaning of the Chartered Accountants Act, 1949
· a firm whereof all the partners practicing in India are qualified for appointment, as aforesaid, may be appointed by its firm name to be the auditors of a company in which case any partner so practicing may act in the name of the firm
226 (2)
· Not being in force
226 (3)
Disqualification of auditor
· a body corporate;
· an officer or an employee of the company;
· a person who is a partner, or who is in the employment of an officer or employee of the company;
· a person who is indebted to the company for more than Rs. 1,000 or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for more than Rs. 1000; and
· a person holding any security of that company.
226 (4)
· disqualified from acting as auditor of that company’s subsidiary or holding company or of any other subsidiary of the same holding company
226 (5)
· When the auditor appointed but later on he fails the requirement of sub section 3-4 then he will be automatically vacated.
SEC. 314 – A C.A is not disqualified if his relative or his employee works as a director, secretary or any other person. But the permission of CG is must
Sec. 224: - Appointment of Auditor
224 A
Cases when the auditor appointed by SPECIAL RESOLUTION
· A company in which 25% of the SUBSCRIBED CAPITAL
o A public financial institution (NABARD, ICICI, AVIC, HUDKO) or a government or the CG or any SG, or
o A financial or any other institution established by provincial or State Act in which a SG, holds not less than 51% SUBSCRIBED CAPITAL
o A nationalized bank or an GENERAL INSURANCE COMPANY
o Any combination of these.
· IN case of pass ordinary resolution than the appointment of auditor done by CG u/s 224 (3)
· 25% capital is considered as the Closing date of the register of members
224 (1)
Appointment by Shareholders
224 (1A)
Intimation of auditor to join the job or not in the form 23B
224 (1B)
Ceiling limit of the auditors
· Total 30 co. audits but not more than 20 public co. in which 10 co. does not have the share capital more than Rs. 25 Lakh.
224 (2)
No notice of the intended resolution to appoint some other person or persons in place of the retiring auditor was received by the company that could not be proceeded with due to death, incapacity or disqualification of the other person or persons.
224 (3)
Appointment by C.G
· In that case if auditor not appointed in A.G.M
· In that case when the co. passes the ordinary resolution whether he pass the special resolution u/s 224 A.
· Penalty is 5,000 rs. In case of default.
224 (5)
Appointment of First auditor
It can be appointed by the Board of directors within one month of the date of registration.
If fails to appoint it can be appointed in GENERAL MEETING*
first auditor doesn’t need to intimate.
224 (6)
Appointment in case of casual vacancy*
Other than resignation all the cause the appointment done by the BOARD OF DIRECTORS
In case of resignation the auditor appointed in GENERAL MEETING*.
SECTION. 619: - Auditor
224. Appointment and remuneration of auditor.
224A Auditor not to be appointed except with the approval of the company by special resolution in certain cases.
225 Provisions as to resolutions for appointing or removing auditors
226. Qualifications and disqualifications of auditors
227. Powers and duties of auditors
228. Audit of accounts of branch office of company
229. Signature of audit report, etc.
230. Reading and inspection of auditor’s report
231. Right of auditor to attend general meeting
232. Penalty for non-compliance with sections 225 to 231
233. Penalty for non-compliance by auditor with sections 227 and 229
233A. Power of Central Government to direct special audit in certain cases
233B. Audit of cost accounts in certain cases
SECTION 226: - Qualification and Disqualification of Auditor
226 (1)
· Chartered Accountant with in the meaning of the Chartered Accountants Act, 1949
· a firm whereof all the partners practicing in India are qualified for appointment, as aforesaid, may be appointed by its firm name to be the auditors of a company in which case any partner so practicing may act in the name of the firm
226 (2)
· Not being in force
226 (3)
Disqualification of auditor
· a body corporate;
· an officer or an employee of the company;
· a person who is a partner, or who is in the employment of an officer or employee of the company;
· a person who is indebted to the company for more than Rs. 1,000 or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for more than Rs. 1000; and
· a person holding any security of that company.
226 (4)
· disqualified from acting as auditor of that company’s subsidiary or holding company or of any other subsidiary of the same holding company
226 (5)
· When the auditor appointed but later on he fails the requirement of sub section 3-4 then he will be automatically vacated.
SEC. 314 – A C.A is not disqualified if his relative or his employee works as a director, secretary or any other person. But the permission of CG is must
Sec. 224: - Appointment of Auditor
224 A
Cases when the auditor appointed by SPECIAL RESOLUTION
· A company in which 25% of the SUBSCRIBED CAPITAL
o A public financial institution (NABARD, ICICI, AVIC, HUDKO) or a government or the CG or any SG, or
o A financial or any other institution established by provincial or State Act in which a SG, holds not less than 51% SUBSCRIBED CAPITAL
o A nationalized bank or an GENERAL INSURANCE COMPANY
o Any combination of these.
· IN case of pass ordinary resolution than the appointment of auditor done by CG u/s 224 (3)
· 25% capital is considered as the Closing date of the register of members
224 (1)
Appointment by Shareholders
224 (1A)
Intimation of auditor to join the job or not in the form 23B
224 (1B)
Ceiling limit of the auditors
· Total 30 co. audits but not more than 20 public co. in which 10 co. does not have the share capital more than Rs. 25 Lakh.
224 (2)
No notice of the intended resolution to appoint some other person or persons in place of the retiring auditor was received by the company that could not be proceeded with due to death, incapacity or disqualification of the other person or persons.
224 (3)
Appointment by C.G
· In that case if auditor not appointed in A.G.M
· In that case when the co. passes the ordinary resolution whether he pass the special resolution u/s 224 A.
· Penalty is 5,000 rs. In case of default.
224 (5)
Appointment of First auditor
It can be appointed by the Board of directors within one month of the date of registration.
If fails to appoint it can be appointed in GENERAL MEETING*
first auditor doesn’t need to intimate.
224 (6)
Appointment in case of casual vacancy*
Other than resignation all the cause the appointment done by the BOARD OF DIRECTORS
In case of resignation the auditor appointed in GENERAL MEETING*.
SECTION. 619: - Auditor
Monday Quotes
"Find some time for the dear ones in your life. Else one day you will find time but not the dear ones”
Friday, July 4, 2008
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I welcome all the those who love CA. Its a great profession .
We will share useful and knowledgeable material on this blog.
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