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2016JANUARY

Dear friends,

After a month full of enthusiasm and a wonderful year of course, we move on to the next, without the loss of enthusiasm..!

Let's begin the year with all the Ignited Minds, who are ready to Explore the Unexplored..!

Yes friends, I am very happy to share this news with you that the National Convention for CA Students 2016 will be hosted by Pune branch of WIRC of ICAI jointly with Pune branch of WICASA of ICAI on 30th & 31st of this month at Mahalaxmi Lawns. The theme for this year is � 'EXPLORE THE UNEXPLORED'.

Friends, it is often said that the unexplored paths lead to undiscovered treasures, and yes we will now go forward and leave trails in all the unexplored paths. National Convention is a very big platform given by the Board of Studies to all of us to explore many unexplored things and experience many new things. It is a platform to perform in front of many eminent personalities & in a city like Pune, infront of such a huge crowd too..! All the details regarding the National

C o n v e n t i o n 2 0 1 6 a r e u p l o a d e d o n www.puneicai.org. Queries are also to be entertained at [email protected]

Best wishes,

Yours'

Vice-Chairman�s Communication

Managing Committee Members

Pune Branch of WICASA

CA. Anand JakhotiyaChairman

Mr. Vaibhav PingaleVice- Chairman

Ms. Anchila OzaSecretary

Mr. Anand GuptaTreasurer

CA. Radhesham AgrawalStudent Co-ordinator

Mr. Rupendra TholiyaJoint Secretary

Mr. Pravin BabbarJoint Editor

ICAI BHAWAN, Plot No. 8, Parshwanath Nagar, Munjeri, Opp. Kale Hospital, Bibwewadi, Pune - 411037. Tel: 020 24212251 / 52 | Web: www.puneicai.org | email: | Facebook: Pune [email protected]

Vaibhav PingaleVice-ChairmanPune Branch OfWICASA of ICAI

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�The world is too big to leave unexplored.�

Hello friends,

After almost a year, we are back with the National Convention in the end of this month. Friends, there are lots of new plans and things to do in the convention this year. All those who want to volunteer and be a part of the core committee can get in touch with anyone of us at the earliest.

Friends, as far as December was concerned, the major activity was the youth festival � YOUNGOTSAV � The Cultural Carnival. With your active participation and support it was a fantastic one with lots of enthusiasm and energy. Thanks a lot for your consistent and never ending cooperation.

We also had a Residential Refresher Course (RRC) to Matheran early last month which was again a memorable one. Also the Article Development Program was a huge success. Many students throughout the city attended the two day program and had an amazing experience.

Many educational visits were also organized and also one industrial one throughout the month. Many students actively participated and were proud to be a part of it. A seminar on IND AS was also conducted on 25th of last month for all the students. Also students grievance meeting was held on 26th at the Pune Branch in which maximum students

joined in.

An step towards Swatch Bharat Abhiyan was also take in last month.

I also invite all of you to the flat hoisting ceremony on 26th of this month, the Republic day at the Pune Branch at 8.30am

Yours'

Joint Secretary's Communication

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�Unexplored paths lead to undiscovered treasures.�

Rupendra TholiyaJoint Secretary Pune Branch OfWICASA of ICAI

Photo Gallery

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�If today were the last day of your life, would you want to do what you are about to do today?� � Steve Jobs

Stay Connected with Pune WICASA @ http://puneicai.org/studentsLike Facebook page � 'Pune WICASA' Email address: [email protected] on Whatsapp � 7588687692 / 7276725949

Residential Refresher Course (RRC) at Matheran on 12th & 13th December, 2015

Speakers: 1. Mr. Chaitanya Vakharia 2. Mr. Karan Chandwani

Educational visit to Sudit K. Parekh group at Baner - Pashan Link Road on 18th December, 2015

CA. Prakash Hamirwasia interacting with the students.

Educational visit to Janakalyan Rakhtapedhi at Swargate on 17th December, 2015

Dr. Barve of Janakalyan Rakhtapedhi interacting with the students.

Photo Gallery

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�I just wish the world was twice as big and half of it was still unexplored.� � David Attenborough


Articleship Development Program by CA. Dhruv Doshi & CA. Suchit Loya on 19th & 20th December, 2015

Educational visit to Vaikunth Mehta National Institute of Co-operative Management on 21st December, 2015

Educational visit to Kotak Mahindra Bank Ltd at Swargate on 23rd December, 2015

Seminar on IND AS by CA. Kusai Goawalaon 25th December, 2015

Celebrating YOUNGOTSAV � The Cultural Carnival on 26th & 27th of December, 2015

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�Do not follow where the path may lead. Go instead where there is no path and leave a trail.� � Ralph Waldo Emerson


Inspirational Seminar by CA. Ramnathan Iyer

Participant of Master Chef.

Whole team of Pune WICASA behind the event

Honorable Chief Guest MLA Jagdish Mulik

Photo Gallery

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�In any field, find the strangest thing and then explore it.� � John Archibald Wheeler


Volleyball match being played on the occasion of sports tournament organized in the last week of December

Grievance cell meeting for students was arranged on 26th December, 2015

wherein Mr. H.M. Jorapur, the Deputy Secretary of ICAI was the speaker

Industrial Visit to 'Electrica India Engineering Pvt Ltd' was organized on 29th December, 2015

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�We have to establish our credentials as an explorocracy; so to survive and rule ourselves, we have to explore.� � China Mieville


Upcoming Events & Activities - January 2016

Date Event Faculty / Chief Guest Venue Time

Fees

- Scholarship for minority students - Visit

www.puneicai.org - -

8th to 29th January

Live online monitoring sessions for all levels of CA Course

- Visit www.puneicai.org - -

23rd JanuarySeminar on 'How to get best out of your articleship'

CA. Pankaj Mandhane

ICAI Bhawan, Bibvewadi 9am to 10.30am NA

23rd to 26th January

Inter Firm Cricket Tournament 2016 -

Katariya Cricket Ground,

Mukundnagar9am to 11pm Visit

www.puneicai.org

26th January

Flag hoisting ceremony on the occasion of Republic Day - ICAI Bhawan,

Bibvewadi 8.30am NA

30th & 31st January

National Convention � 'Explore the Unexplored' - Visit

www.puneicai.org - -

For registration and more details, visit www.puneicai.orgKeep yourself updated by pressing the like button of �Pune Wicasa� on Facebook.

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�There's never a chance that we'll run out of things to explore.�

Correctness of law laid down by Bombay High Court in Ace Builder 281 ITR 210 that deduction u/s 54EC is available to short-term capital gains computed u/s 50 doubted by Tribunal

Name: Dushyant DhakeRegistration no.: WRO0310556

ITO vs. Legal Heir of Shri Durgaprasad Agnihotri (ITAT Mumbai)

Correctness of law laid down by Bombay High Court in Ace Builder 281 ITR 210 that deduction u/s 54EC is available to short-term capital gains computed u/s 50 doubted by Tribunal

A) Facts of the case:

1. Assessee is an individual engaged in the business of photography

2. Assessee also earned long term capital gain, which was claimed exempt under section 54EC

3. The assessee made investment of Rs. 25,50,000 in capital gain bonds of National Highway Authority of India and claimed exemption under section 54EC of the Act against the aforesaid capital gain earned.

4. The Assessing Officer denied the benefit of exemption under section 54EC on the ground that the shop was a depreciable asset and the resultant gain was a short term capital gain whereas the exemption under section 54EC was available only on long term capital gain (LTCG).

5. The learned CIT(A) allowed the claim of the assessee

B) Contentions of Appellant:

1. The building having been held for a period in excess of three years, it would by definition qualify to be a long-term capital asset (LTCA) u/s.2(29A), and the capital gain arising on its transfer eligible for exemption u/s. 54EC.

C) Contention by Revenue:

1. The Assessing Officer was justified in rejecting the claim of the assessee in-as-much as the capital gain on the sale of shop, a depreciable asset, is deemed as a short-term capital gain (STCG) u/s.50, while exemption u/s. 54EC is allowed only on LTCG, i.e., which is, by definition, not STCG.

D) Ruling of Honorable ITAT/Court:

1. The capital asset sold by the assessee during the year is a shop, comprising of land (or rights therein) as well as building or the super-structure thereon, which are separate and distinct assets under the Act

2. By virtue of the deeming provision of section 50, cost of a long- term capital asset (LTCA), i.e., as per section 2(29A), where depreciable, forming part of a block assets on which depreciation stands claimed, the capital gain on its transfer would have to be computed in terms thereof, i.e. by treating the WDV of the relevant

block of assets (or, as the case may be, the relevant asset) as its cost of acquisition.

3. The second deeming per the provision of section 50 is qua the nature of such capital gains, i.e., as capital gains arising from the transfer of a STCA. Section 54EC is available on capital gain arising on the transfer of a LTCA, i.e., which is not a STCA by definition. The same shall, therefore, not apply to capital gains computed u/s.50.

4. By definition a capital expenditure, depreciation, which is amortization of the cost over a definite period is allowed as expenditure where the asset is employed for the purposes of business or profession, toward recouping its' cost, so as to make available the necessary funds with the business for the replacement of the asset at the end of its' useful life, enabling the business to in the process, maintain the capital of the firm.

5. Income, by definition, is accretion to capital, so that only the excess, i.e., over cost, including the cost of depletion of capital, would be income, both in economic and accounting theory. The charge of depreciation, thus, has a sound basis thereto, well accepted in taxing statutes.

6. WDV of the relevant (block of) asset, representing its un- depreciated or the unutilized life/value, is taken as its cost of acquisition for the purpose of computation of capital gains in as- much as it is only this, depreciated asset, that stands transferred, fetching a value corresponding with its' balance life.

7. This would, in our view, also explain or bring forth the prescription of a separate computation mechanism for capital gain on transfer of capital assets that are depreciable (per s. 50), and also not extending thereto the indexation benefit, to adjust for the inflation factor, per s. 48, for such assets even where held for long-term.

8. Deduction u/s.54EC to be available on the capital gains computed u/s.50 of the Act.

9. Revenue's appeal stands dismissed.

E) Key Take Away

a. Correctness of law laid down by Bombay High Court in Ace Builder 281 ITR 210 that deduction u/s 54EC is available to short- term capital gains computed u/s 50 doubted by Tribunal


Lateral thinking is the ability to use your imagination, creativity, perception, concepts to look at a problem in a fresh way and come up with a new solution.

Simplest way to describe lateral thinking is to say, �you cannot dig hole in a different place by digging the same hole deeper.� This emphasizes the searching for different approach and different ways of looking at things � Explained by Edward de Bono the pioneer of Lateral thinking in his best seller �Serious Creativity�

�We assume certain perceptions, certain concepts and certain boundaries,� �Lateral thinking is concerned not with playing with the existing pieces but with seeking to change those very pieces.� It's the art of reframing questions, attacking problems sideways. They way a computer hacker would think.

Lateral thinking has very much to do with perception. In lateral thinking we seek to put forward different views, process same information in different ways.

In the above given picture our traditional logics restricts us to think that if a question is asked as 2+2 = practically all will answer as 4, similarly 3+3 = 6 and 7+7 = 14, but if the same problem is asked with different perception 2+2 can make a shape of fish, 3+3 can make a shape of 8 and 7+7 can make a triangle.

In line with above illustration, an excellent example as given by Edward de Bono helps us to understand how limited and traditional our perception is. Rajiv, is offered a choice of 2 coins by his friends. There is

a Rs. 1 coin and a smaller Rs. 2 coin. His friends consider him very stupid for not knowing that the smaller coin is twice as valuable. Whenever they want to make fool of Rajiv, they offered a usual choice of coins. He always takes the Rs. 1 coin and never seems to learn.

One day an adult who observes this transaction takes Rajiv to one side and advises him that the smaller coin is actually worth more than the bigger coin, even though it may seem otherwise. Rajesh listens politely then says, �I know that. But how often would they have offered me the choice. One day an adult who observes this transaction takes Rajiv to one side and advises him that the smaller coin is actually worth more than the bigger coin, even though it may seem otherwise. Rajesh listens politely then says, �I know that. But how often would they have offered me the choice if I had taken the Rs. 2 coin the 1st time.

The trouble for most of us is that even if we're �creative,� our default setting is �linear thinking.�

Before the Earth was a sphere, it was flat. Before it revolved around the sun, the universe revolved around it. Before Einstein's relativity we had only Newton's gravity.

Normal logic is concerned with, which is developed through experience, traditional tested method, A rock logic has oftenly been associated with traditional perception, thinking. Traditional thinking & perception restricts us, blocke us in traditional way of looking things. Lateral thinking is very much concerned with alternatives, what can be, what might be, other possibilities. A water logic as contrast to rock logic has no boundaries, which depend upon circumstances and conditions.

In an interview with Edward D Bono - said

"Studies have shown that 90% of error in thinking is due to error in perception. If you can change your perception, you can change your emotion and this can lead to new ideas. Logic will never change emotion or perception."

With a perception we do not see the world as it is but as we perceive it, the patterns of perception have been built up by a particular time sequence of experience. We perceive the world in terms of established patterns that are triggered by what is now in front of us.

A child looking at a passing cloud my find it as a shape of house or plane or any object as he perceives it but for another child it may be like any other object or just a passing cloud.

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�I couldn't wait for success, so I went ahead without it.� � Jonathan Winters

Lateral Thinking Name: CA. Sagar [email protected]


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�Replace fear of the unknown with curiosity.�

Creative ZoneCA Students with other extraordinary talents

Name: Richa BansalRegistration no.: WRO0436478


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