Legal News & Views

Guidelines would apply to:- SEBI Registered Intermediaries: Stock Brokers through Recognized Stock Exchanges Depository Participants (DPs) through Depositories  Mutual Funds (MFs)  Association of Mutual Funds in India (AMFI)  Portfolio Managers (PMs)  KYC Registration Agencies (KRAs)  Alternate Investment Funds (AIFs)  Collective Investment Schemes (CIS)  Investment Advisers (IAs)  SEBI Master Circular No. CIR/ISD/AML/3/2010 dated December 31, 2010 has mandated all registered intermediaries to obtain, as part of their Client Due Diligence policy, sufficient information from their clients in order to identify and verify the identity of persons who beneficially own or control the securities account. The beneficial owner has been defined in the circular as the natural person or persons who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted, and includes a person who exercises ultimate effective control over a l

1) CIT vs. MAK Data Ltd (Delhi High Court) January 29th, 2013 S. 271(1)(c): Surrender of income without explanation attracts penalty A survey u/s 133A was conducted on the assessee’s premises in the course of which certain documents belonged to certain entities who had applied for shares in the assessee company were found. The AO called upon the assessee to prove the nature and source of the monies received as share capital, the creditworthiness of the applicants and the genuineness of the transactions. The assessee offered Rs. 40.74 lakhs as income from other sources “to avoid litigation and to buy peace“. It was made clear that in making the surrender, there was no admission of concealment. The AO completed the assessment by adding the said sum and levied penalty u/s 271(1)(c) for furnishing inaccurate particulars of income u/s 271(1)(c). This was upheld by the CIT(A) though reversed by the Tribunal (included in file) on the ground that there was no material to show any concealm

The people behind wikipedia has complied an interesting list of scandals in India which a friend brought to my attention. As mentioned there - " This is an  incomplete list , which may never be able to satisfy particular standards for completeness." So, the following is a  list of alleged scams and scandals in  India  since independence. These include political, financial, corporate and others. Entries are arranged in reverse chronological order by year.  The year is the one in which the alleged scam was first reported or came into knowledge of public. Scam and get it!!! 2012 ·          Granite scam in Tamil Nadu   - Loss of about   Rs. 16,000   crore   ( US$ 2.91 billion). [42]   At present the matter is under the scanner of investigating / intelligence agencies of India. ·          Maharashtra Irrigation Scam   – Loss of about   Rs. 72,000   crore   ( US$ 13.1 billion). [43]   At present the matter is under the scanner of investigating / intelligence