Tuesday, December 13, 2016

Banks to request customers to indicate old and new currency in deposit slips: FinMin

Maintenance of records regarding deposit of old demonetized currency and new currency is essential both in the bank record as well as the customer’s record. Though most banks providing correct information to the customers yet to ensure that it is done in 100% of cases without fail, all the bank branches in the country be alerted to reflect correctly the cash deposit in old and new currency and inform the customers about the same. Thus, the Government has directed banks to display a prominent sign requesting their customers to fill-up deposit slips clearly indicating old and new currency and the denomination of notes.

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Mere increase in sales due to acceptance of digital payment won’t trigger reassessment of past years

Recent initiatives of the Government to curb the black economy in the country has encouraged people to shift towards digital mode of payment while making financial transactions. By adopting digital mode of payment, no financial transactions would remain undisclosed and consequently an enhanced turnover of business might get reflected in the books of accounts.

Thus, the CBDT has clarified that mere increase in turnover, because of use of digital means of payment or otherwise, in a particular year cannot be a sole reason to believe that income has escaped assessment in earlier years. Hence, Assessing Officers are advised not to reopen past assessments in cases merely on the ground that the current year's turnover has increased.

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Publication would have profit element which would be missing on reproduction of work by Teacher: HC

Copyright Act: Publication need not be for the benefit of or available to or meant for reading by all the members of the community. A targeted audience would also be a public. But, a publication would have the element of profit, which would be missing in the case of reproduction of work by teacher to be used in the course of instruction while imparting education to pupils. - [2016] 76 taxmann.com 157 (Delhi)

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New institute formed by Praveen Sharma for CA/CS aspirants doesn’t amount to cartelization: CCI


a) Mr. Praveen Sharma and Mr. R.K. Mehta, renowned faculty, were running coaching classes for CA/CS aspirant under the Faculty Arrangement Agreement (‘FAA’) with coaching Institute ‘ETEN CA’. They shared all the confidential information under the agreement with each other.

b) ETEN CA alleged that Mr. Praveen Sharma and Mr. R.K. Mehta made certain illegal demands and threatened to discontinue ongoing batches if their demands were not fulfilled.

c) Further, it alleged that Mr. Praveen sharma had starteda new coaching institute in the name of ‘Adline Ventures’ and Mr. R.K. Mehta and others as faculty members were appointed in this new institute

d) ETEN CA filed complaint with CCI that Mr. Praveen Sharma and other faculty members abused their dominant position by influencing the students and misusing the confidential information provided by ETEN CA. Further, it alleged that they indulged in anti-competitive agreement by cartelizing and adopting unfair trade practices.

The Competition Commission held as under:

1) Many other coaching centers such as CA club India, J.K. Shah Classes, Institute of grooming, etc., were also providing similar online and offline coaching services for CA/CS aspirants. With the presence of other players in the market, it did not appear that Adline Ventures enjoyed a dominant position.

2) Further, new entity (i.e., Adline Ventures) formed for competing with ETEN-CA doesn’t amount to cartelization as Mr. Parveen Sharma and other faculty members used their experience and expertise to operate their own business in the area of providing coaching classes. - [2016] 76 taxmann.com 140 (CCI)

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Latest updates from RBI

1. Unchanged Repo Rate: On the basis of an assessment of the current and evolving macroeconomics situation, the monetary policy committee of RBI has decided to keep the policy repo rate unchanged at 6.25 %. [Press Release : 2016-2017/1442, Dated 07-12-2016]

2. Relaxed norms for card payment: RBI has decided to relax authentication norms for card payment up to Rs. 2000. [Circular no. DPSS.CO.PDNo.1431/02.14.003/2016-17, Dated 06-12-2016]

3. Additional Point of Sale Terminals: To expand the digital payments eco-system and facilitate the move towards cashless transactions, the Govt. has directed banks to install an additional one million Point of Sale terminals by March 31, 2017. [Press Release, Dated 06-12-2016]

4. Re-activate Dormant bank account: Many customer are approaching banks for reactivation of dormant bank account. Thus, RBI has directed bank to follow the due-diligence procedure while re-activating dormant account of the customers. [Circular no. DBR.AML.BC.No.44/14.01.001/2016-17, Dated 06-12-2016]