Author: yazdi

Relief for 50 non-residental societies

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Supreme court rejects I-T department’s claim, gives relief to 50 non-residential societies in Mumbai

In a major relief to over 50 societies of the non-residential premises in Mumbai, the Supreme Court has struck down the Income Tax Department’s claim of tax which they collect as charges for non-occupancy, transfer, common amenity fund and certain other charges.

The Income Tax Department had appealed against the Bombay High Court dismissing its claim over such receipts as being taxable as business income, generating profit and surplus having an element of commerciality. Societies like Mittal Tower Premises, Mittal Court Prem-ises, Venkatesh Premises, Sea Face Park Society New Maker Chamber had claimed that their receipts were exempt from income tax based on the doctrine of mutuality.

In a judgment delivered on Monday, the bench of Justices Rohinton Fali Nariman and Navin Sinha dismissed the Income Tax Department, upholding the Bombay High Court’s verdict that its claim was based on the notification issued by the state government on 09.08.2001 under the Maharashtra Cooperative Societies Act, 1960 is applicable only to cooperative housing societies and has no application to a premises society which consists of the non-residential premises. It also noted that there was no profit motive or sharing of profits among the members as the surplus was used for providing better facilities to the members.

The Income Tax Department had based its case on the ground that receipt of non-occupancy charges by the society from its members beyond 10% of service/maintenance charges permissible under the notification dated 09.08.2001 stands excluded from the principle of mutuality and was taxable. The order was upheld by the Commissioner of Income Tax (Appeals) but struck down by the Income Tax Appellate Tribunal holding that the said notification did not apply to premises society. The High Court even set aside the finding that payment by the transferee member was taxable. The respondent societies’ case was that the charges collected by them were for general maintenance a the premises and other facilities and general amenities to the members and the fact that the members who were not self-occupying may have to pay at a higher rate was irrelevant so long as the receipts were utilised for the benefit of the members as a class.

http://www.freepressjournal.in/mumbai/supreme-court-rejects-i-t-departments-claim-gives-relief-to-50-non-residential-societies-in-mumbai/1237135

Click Here for the full judgement

Insurer must alert client in case of premium default

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Background: LIC ties up with employers so that employees can opt for insurance coverage under the Salary Savings Scheme. Who is liable if an employee’s premium is not remitted by the employer to LIC?

Case Study: Nagu Gouda worked as assistant teacher at a school under the Karnantaka government’s block education officer (BEO). He took a policy of Rs 1.25 lakh under LIC’s Salary Saving Scheme, which provided that the employer would deduct and remit monthly premium to LIC.

The last premium was remitted in August 2009. Later, Gouda took ill and was on leave without pay. So premium could not be deducted. Gouda died on July 20, 2010. His widow, Seeta, made a claim under the policy, but LIC refused, saying the policy had lapsed due to unpaid premium.

Seeta filed a complaint in the district forum against LIC and the BEO that the employer couldn’t remit premium as Gouda was on leave without pay and Gouda should’ve been told to pay instead of letting the policy lapse. She alleged that failure to intimate Gouda to pay was ‘deficiency in service’.

LIC said Gouda’s premium for last 10 months was not remitted by the BEO or by Gouda. It said the policy had lapsed and the claim was rightly repudiated. LIC sought dismissal of the complaint.

The district forum held LIC and the BEO jointly and severally liable to settle the claim. It ordered payment of the sum assured with accrued bonus and 9% interest.

LIC challenged this order, but its appeal was dismissed by Karnataka State Commission. LIC approached the National Commission and contended that Gouda alone was responsible for failure to remit premium, and that the BEO as employer could not be held liable as Gouda had opted for premature retirement on June 30, 2010. LIC also said that Gouda had given that he would be responsible for consequences of non-payment of premium.

The National Commission observed that LIC and the employer have a duty to inform the employee.

By its order, the National Commission said there was deficiency in service Thus, he ordered holding the employer and LIC jointly liable to settle the claim was upheld.

Conclusion: The employer and LIC have to inform the insured about default in payment of premium under Salary Savings Scheme.

(The author’s e-mail is jehangir.gai.columnist@ outlook.in)

Jehangir B Gai

https://timesofindia.indiatimes.com/mumbai/insurer-must-alert-client-in-case-of-premium-default/articleshow/63163131.cms

Hint of new Aadhaar deadline?

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The Centre on Tuesday assured the Supreme Court that the government was open to extending beyond March 31 the deadline for linking Aadhaar cards with bank accounts and mobile phones.

“We have extended the deadline in the past too. We can do it again. Let’s see how the hearing proceeds. If required, we can do it again,” attorney-general K.K. Venugopal told a five-judge constitution bench.

The bench, headed by Chief Justice of India Dipak Misra, is dealing with a slew of petitions challenging the constitutional validity of the Aadhaar law.

The attorney-general gave the assurance during the closing hours of the day’s hearing in response to pleas made by senior advocates who felt the hearing might extend beyond March 31.

Although not officially stated, there are indications that the deadline could be extended till May 31 or even beyond as the hearing of the case may go on for another month. Thereafter, such benches usually reserve the judgment. The verdict may be pronounced a month later or in July after the summer vacation.

https://www.telegraphindia.com/india/hint-of-new-aadhaar-deadline-213837?ref=hm-ft-stry-2

Policy to scrap 15 yrs old vehicles almost finalised

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India will soon come out with a policy to scrap vehicles that are more than 15 years old, Union Minister Nitin Gadkari said today.

The policy aims at curbing rising vehicular pollution in the country.

“We have almost finalised the scrapping policy for vehicles with NITI Aayog,” the road and transport minister said.

Vehicles completing 15 years or more would be scrapped, the minister said without giving more details.

Gadkari said India is bound to become the hub for the automobile industry and the prices were bound to be cheaper as scrap could be used for the production of auto parts among other things.

“Raw material for vehicles will be cheap … plastic, rubber, aluminium and copper – all generated from scrap will be used for auto parts generation besides other things,” the minister said.

Earlier, the Road, Transport and Highways Ministry had sent a concept note on Voluntary Vehicle Fleet Modernisation Programme (V-VMP) to the Committee of Secretaries on creating an ecosystem for voluntary scrapping and replacement of old polluting vehicles.

Gadkari had earlier said that the PMO is keen on the proposal and once it is implemented, pollution would be checked considerably as 65 per cent of the pollution is caused by heavy vehicles that are more than 15 years old.

As per an earlier proposal, a relief of about Rs 5 lakh was to be provided to people who purchase a new commercial vehicle of about Rs 15 lakh, if they surrender their over 15-year old commercial vehicles.

https://timesofindia.indiatimes.com/business/india-business/policy-to-scrap-15-yrs-old-vehicles-almost-finalised-gadkari/articleshow/62931701.cms

 

CALCULATION OF CONSTRUCTION AREA, CONSIDERING CARPET AREA ACCORDING TO RERA ACT

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Outward No: Ka.15/Circular/RERA/
Carpet Area/3.
Office of the Inspector General
of Registration & Stamp Controller,
Maharashtra State, Pune-1.
Date : 02/01/2018.

Circular

Sub:– Guidelines No. 5 for Mumbai City and Guidelines No.4 For rest of Maharashtra

1.2 ratio has been mentioned in guidelines no.5  for Mumbai City and No.4 for rest of Maharashtra  in respect of calculating built up area from carpet area in the guidelines with annual valuation rate table.

The Maharashtra Real Estate Regulatory. Authority has issued Circular No.4/2017, Dt. 14/6/2017 regarding calculation of carpet area under Section 2(k) of Real Estate (Regulation & Development). With it they have given illustrative sketches regarding which area to be included in carpet and which not to be included. -Accordingly  it is necessary to include area of inner walls of the flat in carpet area. It is mentioned that area  covered by the external walls, and similarly–areas  under services shafts,  exclusive balcony or verandah area and exclusive open terrace area shall not be included. Incidental to said changes individual memorandums and also memorandums from CREDAI regarding making changes in valuation guidelines were received.  Therefore it is necessary.to make changes in the ratio calculating carpet area from built area. Thus, following changes have been made in guidelines no.5 for Mumbai City and guidelines no.4 for rest of Maharashtra.

CarpetArea/Built up Area :-  

  1. The rate mentioned in annual, valuation rate are of built up area. If documents mentioned Carpet area, then valuation should be made by drawing built up area as follows :

Built up area = 1.1 x Carpet area or Carpet area = Built up area / 1.1

However if there is any other mentioned other than Carpet area and if the said area is more than Carpet area x 1.1 then, valuation should be made by considering the area mentioned in the documents. However in the case of open   parking, terrace and balcony, only mentioned area should be considered.

  1. Valuation of closed balcony adjacent to the flats/offices/shops/industrial properties should be made with sales price of the respective use of concerned annual valuation rate table.
  2.  If open balcony adjacent to the Flats/ Offices/ Shops/Industrial use is shown in documents and plans with it , then its.valuation should be made at the rate of 40% of the sale price of respective use shown in annual valuation rate          according to Instruction No.15 for Mumbai and Instruction No. 14 for rest of Maharashtra.
  3. Hereinbefore since area under all walls in the flats sold was not incorporated in carpet area, for the sale/agreement of such resale flats, earlier 1.2 ratio should be used for calculating built up area according to carpet area with balcony area.  However if there is mention of built up area or saleable area except carpet area in the document, then that area should be considered directly. The ratio 1.2 should not be applied to it.

The said Circular shall be came into force from the date of issue.

The copy of the said Circular is available on the web site www.igrmaharashtra.gov.in

(Anil Kavade)

Inspector General of Registration & Controller of Stamps, Maharashtra State, Pune.

Access to Justice and Public Interest Litigation

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The Asiatic Society of Mumbai

takes pleasure in inviting you and your friends to

the 25th Smt. Bansari Sheth Memorial Lecture

by

Mrs. Justice Sujata Manohar

Former Judge, Supreme Court of India

and

Former Chairperson, Board of Trustees of the Society,

on

‘Access to Justice and Public Interest Litigation’

on

Thursday, 8th March, 2018, at 5.30 p.m.

in the Durbar Hall of the Society.

Mr. Justice B.N. Srikrishna

Former Judge, Supreme Court of India

and

Former Chairperson, Board of Trustees of the Society,

 will preside.

Please join us for tea at 5.00 p.m.

         Dr. Meena Vaishampayan                                Prof. Vispi Balaporia

         Chairperson                                                        Hon. Secretary

         Endowment Lectures Committee

The Law of Registration

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THE LAW OF REGISTRATION
(As under Transfer of Property Act-1882 & Registration Act-1908)

SUBHAN BANDEADVOCATE
KADAPA
subhanbande@gmail.com

 

Registration Fee vs. Stamp Duty

  • ‘Registration fee’ is charged by the Government to keep a document in public records.
    • ‘Stamp duty’ is levied by the Government to raise revenue and to recognise a right.
    • The ‘Law of Registration’ in India is explained under…..
      • The Transfer of Property Act-1882
      •  The Registration Act-1908

To read the full details – Click Here

India has 35% chief ministers with criminal cases: ADR

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In India, around 35 per cent chief ministers have criminal cases against them and 81 per cent of the total are crorepatis, according to an ADR report released today.
The Association for Democratic Reforms (ADR) and National Election Watch (NEW) have analysed the self-sworn affidavits of current chief ministers (CMs) in state assemblies and Union territories across the nation.

These were the latest affidavits filed by them prior to contesting the elections.

“Out of the all 31 chief ministers analysed from state assemblies and Union territories, 11 (35 per cent) chief ministers have declared criminal cases against themselves,” the Association for Democratic Reforms (ADR) report noted.

Further, 26 per cent CMs have declared serious criminal cases, including related to murder, attempt to murder, cheating and dishonestly inducing delivery of property, criminal intimidation, among others.

Interestingly, as many as 25 CMs, or 81 per cent, are crorepatis, with two of them having assets to the tune of over Rs 100 crore. The average assets of CMs are worth Rs 16.18 crore.

https://timesofindia.indiatimes.com/india/india-has-35-chief-ministers-with-criminal-cases-adr/articleshow/62889962.cms

RBI cautions bank customers against fake website seeking confidential account info

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The Reserve Bank of India has cautioned citizens against a fake website which is fraudulently taking personal and confidential banking details of bank customers posing as the central bank.

The Reserve Bank of India has cautioned citizens against a fake website which is fraudulently taking personal and confidential banking details of bank customers posing as the central bank.

“It has come to the notice of the Reserve Bank of India that a fake website of the Reserve Bank of India has been created with the URL http://www.indiareserveban.org by some unknown person(s). The layout of the fake website is similar to the original RBI website,” RBI said in a statement on its website.

The official website of the RBI — India’s central bank — is https://www.rbi.org.in  and it holds no other website.

The home page of the fake website also contains a provision for “Bank verification with online account holders” which appears to have been created with a fraudulent intent of obtaining personal and confidential banking details of customers of banks, it added.

“The Reserve Bank of India clarifies that as India’s central bank, it does not hold any accounts for individuals and never asks for personal information such as bank account details, passwords, etc…

“The Reserve Bank cautions members of public that responding online on such websites could result in compromising crucial personal information that may be misused to cause financial and other loss to them,” the banking regulator clarified.

Over past years, RBI has been consistently alerting customers about the fake websites, emails asking to transfer funds or for bank account details in the name of a lottery, fictitious job offers in the name of RBI jobs, etc fraudulently luring and cheating customers and that one should not fall prey to it.

Further, members of public are also cautioned about existence of websites such as www.rbi.org, www.rbi.in etc. These URLs may appear similar to the website of RBI. However, these websites have no affiliation with the Reserve Bank of India. Members of public are advised to be cautious while accessing or when providing any information on such sites.

Beena Parmar
@BeenaParmar

http://www.moneycontrol.com/news/business/beware-rbi-cautions-bank-customers-against-fake-website-seeking-confidential-account-info-2503727.html