A CASE COMMENT ON The Commissioner of Income, Mumbai v Manjula J. Shah - Free Essay Example

The Commissioner of Income, Mumbai V/s. Manjula J. Shah BRIEF SUMMARY OF FACTS: In the assessment year 2004-2005, the assessesà ¢Ã¢â€š ¬Ã¢â€ž ¢ total income was Rs.20, 92,400/-. A return of income was filed which included long term capitall gains which inturn arose from the sale of a flat bearing No.1202-A at Chaitanya Towers, Prabhadevi, Mumbai. The flat in question was initially purchased by the daughter of the assesse on 29/1/1993 at a cost of Rs.50, 48,350/-. The assesse dated 1/2/2003 then acquired ownership of the flat by way of gift deed and thus paid no amount towards the transfer of the flat to the daughter. On 30/6/2003, the assesse sold the said capital asset for a total consideration of Rs.1,10,00,000/- and offered the long term capital gains to tax. The assesse argued that the asset which was acquired by her, and subsequently sold by her in the same year, the gains arising from it should be taken as long term instead of short term gain, as argued by the Revenue. The gain should be adjudged on the basis of indexed cost of acquisition minus t he consideration received by her. The A.O. argued under Explanation (iii) to Section 48 of the Act, the indexed cost of acquisition has to be determined with reference to the cost inflation index for the first year in which the asset was first held by the assesse. The A.O. stated that the asset was first held by the assesse for the first time in 2003 and not in 1993. The decision was appealed by the assesse, CIT(A) allowed the claim of the appellant, that decision was further appealed by Revenue, but the ITAT agreed with the decision of the CIT(A). Revenue has challenged the decision of the ITAT. CONTENTIONS BY THE ASSESSE REVENUE: Revenue argued that under explanation (iii) to Section 48 the indexed cost of acquisition has to be determined with reference to the first year in which the capital asset was held by the assesse. In the instant case, the capital asset was first held by the assesse on 1/2/2003. Therefore, the ICoA (Indexed Cost of Acquisition) must be calculated on the basis of 2002-03. It was argued by the Revenue there is deeming fiction contained in Explanation 1(i)(b) to Section 2(42A) of the Act and therefore we cannot apply that language in contrast to the specific language of clause (iii) of the Explanation to Section 48 of the Act. The object of the provision, i.e. Explanation 1(i) (b) to Section 2(42A) is for determine whether a particular asset is long-term or short-term, it is not there to be applied in determine the ICoA. Revenue argued that the provision to determine ICoA is explanation (iii) to Section 48. In the case of DCIT V/s. Kishore Kanungo[1], decided at Mumbai Bench of the ITAT wherein it has been held that under Explanation (iii) to Section 48, the ICoA has to be calculated with reference to the CII (cost inflation index) for the first year in which the asset was held by the assesse and not with reference to the CII (cost inflation index) for the first year in which the asset was held by the previous owner. In an SC Case of CIT V/s. Anjum M.H. Ghaswala Ors[2], the court held where the language of a statute is clear and unambiguous, one has to apply the literal interpretation and not the purposive interpretation. The Assesse argued that for the calculation of ICoA, the date of first holding of asset be taken as 29/1/1993 and not 1/2/2003, as she has received the property through gift and a bare reading of section 49 makes clear that for the purpose of calculating ICoA, the time period of holding will include the time period for which the previous owner of the property held the assets in question. JUDGEMENT BY THE COURT ITà ¢Ã¢â€š ¬Ã¢â€ž ¢S ANALYSIS: The only question before the court was that when one computes capital gains that arise on the transfer of capital assets acquired under a gift, whether the assesse will be evaluated on the indexed cost for acquisition which was for the previous owner when he first held the assets or when the assesse became the owner of the assets, in the case the assets is acquired by the assesse as a gift from the previous owner. Under Section 45 of the Act, the gain that arise from any transaction of transfer of capital asset can be classified into either long-term or short term capital gain. Short term capital asset is defined under Section 2(42A) and long term capital asset, as defined under Section 2(29A) of the Act. Under Section 47(iii) of the Act states that when a capital assets is given by gift or will, it will not be regarded as transfer and therefore no short-term or long-term gain would have said to be arisen form the said transaction. In the present case, the flat was first a cquired by the daughter of the assesse on 29/1/1993, the same flat was given by the daughter to the mother by gift on 2/1/2003 without consideration. The assesse sold the flat within 36 months, and under normal course she would have been liable to pay short term capital gain, but explanation 1(i)(b) to Section 2(42A) of the Act saves her, and classifies her asset as long term capital asset. Revenueà ¢Ã¢â€š ¬Ã¢â€ž ¢s main contention was that when the ICoA is calculated as per explanation (iii) to Section 48 of the Act, the first year of holding should be FY 2002-03 and in view of the first year of holding the CII should be taken of the year FY 2002-03. The court found no merit in the above argument and stated that it is undisputed that the ICoA has to be determined on the basis of first year in which the asset was à ¢Ã¢â€š ¬Ã…“held by the assesseà ¢Ã¢â€š ¬Ã‚ . The term à ¢Ã¢â€š ¬Ã‹Å"held by the assesseà ¢Ã¢â€š ¬Ã¢â€ž ¢ has not been defined under Section 48. So we ref er to the definition clause of the IT Act, i.e. under explanation 1(i) (b) to Section 2(42A) states that the period for which an asset is held by an assesse under a gift, the term of the previous owner holding shall also be included. So, by applying the provision of under explanation 1(i) (b) to Section 2(42A), the asset is deemed to be held from 29/1/1993 Revue argued that the deeming provision must not be considered for calculating ICoA, as it is intended to differentia only between long-term and short-term capital gain. The court held that when the law-makers have made the deeming provision to tax the gains arising on transfer of a capital asset acquired under a gift or will and the capital gains under Section 48 of the Act has to be computed by applying the deemed fiction. The Court held that when explanation 1(i)(b) to Section 2(42A) , Section 48 and Section 49 of the Act, are read together and not in isolation with each other, it becomes clear that the object of the statue is not only to tax capital gain from transfer of capital assets but also to tax the transfer of capital assets acquired under gift or will. The court held that it cannot ignore the provisions of Section 2 and apply the provisos of Section 48, doing that would defeat the entire purpose of the act. Section 2 of the act states that unless the context otherwise requires, the provisions of the Act have to be construed as provided under Section 2 of the Act. If the court ignores the meaning under section 2 and doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t take its support in constructing the meaning of Section 48 then gains that arise from gift or will cannot be taxed as capital gain in any case, and that will be contrary to what the legislature has intended. So the court was of the view that the arguments by the revenue are in contravention to the legislative intent and this cannot be accepted under any circumstances. The said circular states that if indexation is linked to the holdin g of the asset and if Section 49(1) applied then, period of holding has to take into account the period of holding of the previous owner, and then only the object of indexation will be achieved. The court held that ITAT was correct in holding the period of holding to include the period in which previous owner first held the asset and not the year in which the assesse became the owner of the asset. cASE COMMENT ON The Commissioner of Income, Mumbai V/s Manjula J. Shah [1] (2006) 102 ITD 437 (Mum), [2] 252 ITR 1 (S.C.),

Feasibility Study on Setting Up an Environmental Laboratory

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Marketing Strategy The marketing strategy is the core of the main strategy and shall emphasize on: High value, high quality services and Building a relationship oriented business with our target market great focused on municipalities, industries, project manager, researchers, and the Federal, state and local government organization and agencies as key initial markets. Financial Summary Summary of start-up cost; Cost (N) Total of Office Equipment 2,558,750 Total for Apparatus, Instruments and Reagents 10,420,300 Total Start-up Basic Salary 695,000 Accreditation 550,000 Capital Equipment Total 14,224,050 Total Balance = Start-Up Fund – Total Capital Equipment= 775,950 Projected Cash Flow Summary | Year 1 | Year 2 | Year 3 | INFLOWS | 1,268,880 | 1,688,700 | 3,625,376 | TOTAL INFLOW | 1,268,880 | 1,688,700 | 3,625,376 | OUT FLOWS | | | | Equipment, Building etc. including start-up costs | 1,207,580 | | | Direct analysis cost | 301,800 | 1,050,600 | 1,496,720 | Selling amp;general admin. | 37,500 | 375,500 | 585,888 | TOTAL OUTFLOW | 1,546,880 | 1,426,100 | 2,082,608 | NET CASH FLOW | 278,000 | 332,525 | 677,535 | OPENING BALANCE | 278,000 | 332,525 |Show MoreRelatedFeasibility Study on Setting Up an Environmental Laboratory9668 Words   |  39 PagesFEASIBILITY STUDY FOR THE ESTABLISHMENT OF STOOK ENVIRONMENTAL SERVICES COMPANY BY KAYODE, STEPHEN OLUWATOBI 166277 A SEMINAR SUBMITTED TO THE DEPARTMENT OF CHEMISTRY, UNIVERSITY OF IBADAN, IBADAN IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF SCIENCE (ENVIRONMENTAL CHEMISTRY AND POLLUTION CONTROL) M.Sc. 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Code of ethics Essay Example For Students

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Not Since free essay sample

Frigid air stings my lungs as I gasp for breath. The water viciously thrashes and pulls me down to claim my life. My arms and legs won’t move on my command and I feel cold pulsing through my body. All I see is darkness, and it feels so lonely. â€Å"Do you have everything?† my Mom asked as she hugged me goodbye. â€Å"Yes, I do. Love you, bye.† I hugged her back, squeezing even tighter than she did. The smell of her minty hair product also bid me farewell, leaving her scent lingering in my nostrils. My Mom hates camping. That’s why she and my father stayed home the whole week that we were gone. Camping is for the rest of my family, which includes my Grandma, two brothers, Kyle and Kevin, and my cousins, Elizabeth and Pete. We always park our old pop-up camper and pitch our tents by this rather large rock on the Bay of Vermillion Lake. We will write a custom essay sample on Not Since or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The rock is about the size of a small garage and protrudes into the vast lake. It has little baby rocks in the water surrounding it, perfect for jumping back and forth on. Our names are still visible, only covered in a light layer of dirt and moss, where we carved them in years ago among others. This rock was the best place for catching crayfish, with the exception of the two parallel docks next to the beach. After a long first day of swimming at the beach, it was time to say goodnight. I always loved swimming because I was good at it. I had mermaid-like features; holding my breath for an insanely long time and swimming fast. I would even beat both of my older brothers in competitions. Both of my parents were pretty lucky to have such a talented daughter. â€Å"Get dried off, and come eat!† my grandma’s voice echoed the entire sandy beach. For dinner, my grandma made her famous mashed potatoes, with pink cranberry fluff for dessert. Afterward, my brothers, cousins and I were told to get cleaned up. We all headed to the shower houses to wash off the day’s fun, and to get ready for bed. I had packed my favorite pink fluffy pajamas with purple dots. They were so thick and warm, not even a cool night could reach me. On the walk back to the camper, we were all quiet; tired from the sun and the warm food in our bellies. â€Å"Race you to the end of the dock and back† my cousin Pete challenged me. I was not going to back down from a race, especially one against a boy. After counting down from three, we were off. We both ran on the parallel docks. Pete took the left one, and I ran on the right dock. While running, I remembered this is where I lost it. It was a mood ring, shaped like a heart, and changed colors like the sky. I even paid extra to have my name stamped on the inside. While crayfish hunting, I laid the ring down next to me, safely in the middle a dock panel. I must have bumped it because I distinctly remember the noise it made when it hit the water. Coming to a halt at the end of the dock, I turned around and saw that Pete was slightly ahead of me. Picking up my speed, I began to catch up with him while suddenly I lost my footing in one of the cracks. The water felt so cold. A sharp jolt paralyzed me. I couldn’t move. The weight of the water in my pajamas was pulling me down. I couldn’t catch my breath. Everything started to go dark. All of a sudden, I started to rise out of the water. My cousin Pete and my brothers were struggling to pull me back up onto the dock. We made our way back to the camper. The cooling night felt like a bitter winter against my wet skin. My tears were almost frozen against my cheeks. My grandma pulled me in close, her hug sending a warm wave through my entire body. She later sent me back to the shower house. I cleaned up and put a fresh pair of pajamas on. A few days later my mom arrived to pick my brothers and me up. I told her about the traumatizing event and cried some more. She comforted me. I haven’t been camping since. Although I havent been camping since then, I learned a very important lesson that fateful day. No one is invincible. I, Sarah, the strongest swimmer in my family, needed to be rescued from drowning. This almost paradoxical event serves to illustrate two major points. First, it shows that even in our strongest and most gifted areas of life, we can all fall down at some point, needing someone to pick us back up. I should not have needed rescuing from the watery lake, but I did. Secondly, There are few illustrations that show the value of family greater than this. I literally was minutes from death and would have died had my family not been there to save me. Even though my family can drive me nuts at times, I love them and am grateful for them. No matter where we go in life, family will always be with us.

Ronger Essays

Ronger Essays Ronger Essay Ronger Essay The Business School and the University regards as a very serious matter the action of a student who acts dishonestly or improperly, including plagiarism or cheating, in connection with his or her academic work. Under University Regulation 6. 1. 1 Plagiarism is defined as The presentation of the works of another person / other persons as though they are ones own by failing to properly acknowledge that person / those persons. Plagiarism may take many forms including: direct copying of sentences, paragraphs or other extracts from someone elses published work (including on the Internet and in software) without acknowledging the source; paraphrasing someone elses words without acknowledging the source; using facts, information, ideas, concepts or diagrams derived from a source without acknowledging them; producing assignments which should be the students own independent work, in unauthorized collaboration with and/or using the work of other people (e. . A student or tutor, or working in pairs or groups and producing similar assignments on individual assessment tasks not referencing accurately (e. G. To citing correctly the work you have actually read) and later using other students work (e. G. Taking discs, picking up others marked assignments) recycling your own work / assignments or double dipping (e. G. E-submitting whole or significant parts of assignments across units, across years or across courses) th e Internet for sale) which is intended for submission for assessment, or which has already been submitted, so that it can be copied in part or whole and handed in by another student as that students own work. Students are warned against making assignments etc. Available to others, as they then could be regarded as a contributor to plagiarism and may be penalized as if they themselves had committed an act of plagiarism. Students are expected to be proficient with referencing and must always acknowledge any sources for work that is not their own. Inadequate referencing of cited materials is considered to be plagiarism. Details of referencing can be found on the following University web address: http://queering. Ballard. Du. AU/gasp/student/ learning_support/generalized/chic. HTML or Ballard. Du. U/current-students/learning-and-study/student-learning- skills/resources/downloads/avoiding-plagiarism Students Statement I have read and understood the information provided on this assignment cover sheet relating to plagiarism and other unacceptable behavior and therefore declare that the attached work is entirely my own, except where work quoted is duly acknowledged in the text, and that this work has not been submitted for assessment in any other course or program. Signature Date c CROSS provider NO. 30TH

Inflation Control by Government of UK Essay Example | Topics and Well Written Essays - 2500 words

Inflation Control by Government of UK - Essay Example This heaving inflation delayed diverted central banks plus stalled them from lessening interest rates to assist in relieving the credit crunch. In spite of all of the above during January, the depression was expected. The predictions for 2009 are bleak: Alistair Darling declared of late that the government had misjudged the severity of it. On the other hand, a more positive school of reflection says that the nastiest of the depression perhaps might be over. I would like to take this opportunity to thank my professor for all the support, assistance and advice all along. I would also like to thank my family and friends, who also encouraged me and motivated me at every step. This report helped get into the crux of the issue, i was also able to analyze the situation from the government and the Publics perspective. The world economy has been considerably exaggerated by the monetary crisis plus analysis are the nastiest given that the Great Depression. Already, the largest developed countries, notably those where the crisis originated, have entered into recession. Drop over to the supplementary countries was primarily minute; however a lot of bussing economies are currently facing it tough. The suppositions regarding a decoupling of these economies have without a doubt demonstrated off beam. 1.1 The emergent countries: These emerging countries too are facing the influences of the calamity, which will interrupt moreover in a lot cases overturn the accomplishment of the Millennium Development purposes, together with the civilized work for all. This is of fastidious concern provided that, even during the pre calamity phase, the development outlines within specific areas, particularly within the United Kingdom, making way towards the insignificant decline within poverty. The civilized living also working state of affairs still remain out of acess for a lot of individuals .Most significantly, the crisis has made it right through the valid economy by resources of three equally strengthening diffusion channels, explicitly: the restricted accessibility of credit for the working capital, trade funding and feasible investments within the real economy , implying the credit crunch ; vigilant cost decisions, leaning towards the minor side of the yield, service and costs, in turn distressing assurance amongst th e customers and

Analysis of Cash Flow for a Small Business Assignment

Analysis of Cash Flow for a Small Business - Assignment Example Wallick (2009) on the other had states that in bigger businesses, there is a clear difference between EBIT and cash flow. The standard formula for EBIT that is applicable here is EBIT = Revenue – Operating Expenses (Investopedia). In the case of Charles, the various expenses, depreciation, and income had been given for the two years he was in business. Secondly Charles’ concern is his not generating enough income after investing two years in the business and he is contemplating to take a job that would pay him $40,000. Since he was in business for only two years and the second year was better than the first, the first area to look at will be the yearly percentage increase on Charles’ income and the following calculation will show that. The above calculation shows he had attained an increase of 160% commission growth in one year, because his client list has been growing. When that is the case, the likelihood is he will be getting more clients for the following year or at least he can retain a good portion of the existing client base, as long as he is in business. This will create three possible future scenarios where he might lose more or less than 10% of his commission if things start to go bad; he could earn the same amount of commission if the client list does not grow, or he could repeat the previous feat of 160% growth rate or even better. If he accepts the offer at the investment company that pays him $40000 before tax and other deductions, by simply deducting the applicable expenses assuming that they will remain the same, at least for the first year considering that there is only one more year to go for the deprecation, the outcome will be the following. The $18500 is better than the $16000 he will get if his commission income had decreased by only 10% and as the percentage of loss increases, it will end up making the $40000 a better offer. However, if his commission remained the