Publish Date : Thursday, January 31, 2019
from RSS FEED for Income Tax India : Communications http://bit.ly/2MMqJOI
Thursday, January 31, 2019
Notification No. 8/2019 [F.No.225/344/2018/ITA-II]
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Centralised Verification Scheme, 2019
Income-tax (15th Amendment) Rules, 2019
SC quashes Rule framed by Madras HC for lawyers as it was ultra vires to Advocates Act
Advocates Act : Where High Court of Madras inserted Rule 14A to rule 14D in Rules of High Court of Madras, 1970 under section 34(1) of the Advocates' Act, 1961empowering High Court to debar an Advocate from practicing, it was held that High Court is not authorized by the provisions of the Advocates Act to frame such rules. Section 34 does not confer such power of debarment by way of disciplinary methods or disciplinary inquiry as against an advocate as that has to be dealt with by the Bar
from www.taxmann.com Latest Case Laws http://bit.ly/2BbgezV
from www.taxmann.com Latest Case Laws http://bit.ly/2BbgezV
ITAT allows Sec. 54F relief on purchase of semi-finished apartment
IT: Where assessee entered into agreement with a builder for purchase of semi finished apartment within period prescribed under sec. 54F, his claim for deduction could not be rejected merely because said builder failed to complete construction within prescribed time limit
from www.taxmann.com Latest Case Laws http://bit.ly/2RtCwlD
from www.taxmann.com Latest Case Laws http://bit.ly/2RtCwlD
No denial of Sec. 11 relief if cancelled registration of Gujarat Cricket Association was duly restored
IT : Where assessee cricket association was denied benefit of section 11 on ground that registration granted to assessee had been cancelled, however, in view of fact that regsitartion had been restored vide order passed by coordinate bench, applicability of section 11 would follow
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ALP of management services unit charges paid to AE not to be taken as nil if services weren't duplicitous in nature
IT/ILT: Where TPO determined ALP of amount paid by assessee as management services unit charges to its AE at nil on ground that those services were duplicative in nature, in view of fact that payment of said charges was distinct and, huge sales volume could not be achieved by assessee without aid of support staff provided by AE, impugned order passed by TPO was to be set aside
from www.taxmann.com Latest Case Laws http://bit.ly/2GcK8qM
from www.taxmann.com Latest Case Laws http://bit.ly/2GcK8qM
The Companies Act, 1956 stands repealed w.e.f. January 30, 2019: MCA
The MCA has announced January 30, 2019 as the date on which provisions of Section 465 of the Companies Act, 2013 would come into force. Section 465 relates to the repealing of the Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961. The MCA has partially enforced provision of Section 465 in so far those relate to the Companies Act, 1956 only, i.e., the Registration of companies (Sikkim) Act 1961 will continue to remain in force.
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No reassessment on change of opinion that assessee had violated provisions of section 269SS
IT: Where AO initiated reassessment proceedings after expiry of four years from end of relevant assessment year on ground that assessee had accepted loan, deposits etc. of Rs. 20 thousand or more in cash in violation of provisions of section 269SS, since there was no ommission or failure on part of assessee to disclose fully and truly all material facts at time of original assessment, impugned reassessment proceedings deserved to be set aside
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from www.taxmann.com Latest Case Laws http://bit.ly/2CTZWLM
Basic Customs Duty Slapped on Mobile Phone Parts to Boost Make in India
Govt may Not Push for Changes in Board-Level Panels of RBI
ICICI Bank board under fire for giving clean chit to Chanda Kochhar
General Budget, err... no it´s interim
Applicant could not challenge land taken over by Official Liquidator on basis of bogus sale deed: Delhi HC
CL: Where pursuant to winding up order passed in case of respondent company, Official Liquidator took over possession of certain land which was challenged by applicant herein on ground that it had already purchased said land from respondent earlier by executing a registered sale deed, in view of fact that person who signed sale deed was not authorised by respondent-company to sell land in question and, moreover, proof of making payment of sale consideration to respondent-company was sketchy and
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Goods destroyed during transit from factory to SEZ unit, eligible for remission of excise duty: CESTAT
GST/Excise/ST/VAT : Where assessee, a manufacturer, had cleared goods involving central excise duty, following export/ARE 1 procedure, to a SEZ unit and said goods transported through truck destroyed en-route as a result of accident, assessee was eligible to remission of duty involved on goods destroyed during transit from its factory to SEZ unit
from www.taxmann.com Latest Case Laws http://bit.ly/2Tq0kso
from www.taxmann.com Latest Case Laws http://bit.ly/2Tq0kso
‘Real Estate Regulatory Authorities’ notified under section 10(46)
The Central Board of Direct Taxes (CBDT) has notified ‘Real Estate Regulatory Authorities’ for the purposes of the clause (46) of section 10 of the Income-tax Act, 1961.
from taxmann.com News https://www.taxmann.com/topstories/222330000000017796/‘real-estate-regulatory-authorities’-notified-under-section-1046.aspx
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CBDT notifies new Centralised Verification Scheme for issue of notice and processing of info. u/s 13
The Central Board of Direct Taxes (CBDT) has notified Centralised Verification Scheme, 2019 for the purpose of issuance of notice and for processing of information or document for the purpose of section 133C. The new scheme is introduced in suppression of its earlier scheme.
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CBDT redefines income-tax authority for purpose of section 133C
The Central Board of Direct Taxes (CBDT) has substituted Rule 12D of the Income-tax Rules, 1962 which defines the prescribed income-tax authority under section 133C. The new rule provides that the prescribed income-tax authority under section 133C shall be an income-tax authority not below the rank of Assistant Commissioner of Income-tax. Earlier, the authority was Principal Director General or Director General or Principal Director or Director, as the case may be.
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No notional interest additions if amount given by assessee to AE to enter into business transactions on its behalf
Tribunal was justified in rejecting oppression plea as asset belonging to co. couldn't be countenanced in law: NCLAT
Wednesday, January 30, 2019
Date of allotment of flat to be constructed by DDA to be deemed as purchase date for computing capital gain tax
IT : CBDT in its circular No.471 dated 15-10-1986 has clarified that when an assessee purchases a flat to be constructed by Delhi Development Authority (D.D.A.) for which allotment letter is issued, date of such allotment would be relevant date for purpose of capital gain tax as date of acquisition. Further, it has been clarified by circular dated 16-12-1993 that if terms of schemes of allotment and construction of flats/houses by cooperative societies or other institutions are similar to those
from www.taxmann.com Latest Case Laws http://bit.ly/2D3KwEX
from www.taxmann.com Latest Case Laws http://bit.ly/2D3KwEX
ITAT deleted separate ALP computation on realization of sale proceeds from AE with extended credit period
Secured creditor can file a winding up petition even after obtaining decree from DRT: SC
CL : Secured creditor can file a winding up petition even after such secured creditor has obtained a decree from the Debts Recovery Tribunal ["DRT"] and a recovery certificate based thereon. Since winding up proceeding under the Companies Act, 1956, is not "for recovery of debts" due to banks, the bar contained in Section 18 read with Section 34 of the Recovery of Debts Act would not apply to winding up proceedings under the Companies Act ,1956
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Venture Cap Body Asked to State No.of Startups that Got Angel Tax Notice
NCLT Dismisses Ruias’ Proposal to Settle Essar Debt
Tax sleuths have seized benami assets worth Rs. 6.9k cr to date
AO's jurisdiction couldn't be challenged just because assessee was having head office at other jurisdiction
IT: Where in case of assessee-company having registered office at Mumbai and a branch office at Indore, ITO, Indore, issued a notice under section 143(2), in view of fact that assessee was filing e-returns from inception in Indore and, moreover, it had accepted jurisdiction of Assessing Officer at Indore in earlier assessment years, objection raised by assessee that jurisdiction in its case lay in State of Maharashtra, was rightly rejected by Chief Commissioner
from www.taxmann.com Latest Case Laws http://bit.ly/2HH35Ef
from www.taxmann.com Latest Case Laws http://bit.ly/2HH35Ef
Tuesday, January 29, 2019
Profits derived from hedging contracts of purchase of raw materials are eligible for sec. 80-IB deduction
IT: Where assessee, engaged in business of production of L-Menthol, which was eligible for deduction under section 80-IB, entered into forward contracts to hedge itself against huge price fluctuations in prices of raw material, since assessee entered into such contracts only for purpose of making its business more profitable, said activity was to be regarded as a part of assessee's manufacturing activity and, thus its claim for deduction under section 80-IB in respect of profits derived from hed
from www.taxmann.com Latest Case Laws http://bit.ly/2RoxhDz
from www.taxmann.com Latest Case Laws http://bit.ly/2RoxhDz
ITAT couldn't decide an appeal merely making observation that facts didn't require any further deliberation
ITAT allows Sec. 11 relief to Gujarat Cricket Association as it existed solely for promoting cricket
IT : Where objects of various cricket associations in Gujarat clearly demonstrated that they existed and operated purely for purpose of promoting cricket i.e. an object of general public utility and these objects had nothing to do with any trade, commerce or business and profit earning was not predominant purpose of associations, proviso to section 2(15) could not have been invoked to decline benefit of sections 11 and 12
from www.taxmann.com Latest Case Laws http://bit.ly/2WowTc4
from www.taxmann.com Latest Case Laws http://bit.ly/2WowTc4
Date of allotment of flat to be constructed by DDA to be deemed as purchase date for sec. 54F relief
IT : CBDT in its circular No.471 dated 15-10-1986 has clarified that when an assessee purchases a flat to be constructed by Delhi Development Authority (D.D.A.) for which allotment letter is issued, date of such allotment would be relevant date for purpose of capital gain tax as date of acquisition. Further, it has been clarified by circular dated 16-12-1993 that if terms of schemes of allotment and construction of flats/houses by cooperative societies or other institutions are similar to those
from www.taxmann.com Latest Case Laws http://bit.ly/2DEZ1jY
from www.taxmann.com Latest Case Laws http://bit.ly/2DEZ1jY
Hindrance to RP’s Work will be Treated as ‘Contempt of Court’
Many Companies still to Induct Woman Independent Director
Applicant couldn't be discharged from charges as he played an active role in diverting funds received by co.
CL: Where charges under sections 24 and 27 were framed against applicant, who was working as Chartered Accountant of company 'WWML' on account of its failure to repay amount accepted from depositors, in view of fact that applicant had played an active role in flats purchased by company from amount of deposits received from public and, moreover, he had got transferred amount of investors from account of directors in name of his father and wife, his application seeking discharge was rightly reject
from www.taxmann.com Latest Case Laws http://bit.ly/2G5DZMY
from www.taxmann.com Latest Case Laws http://bit.ly/2G5DZMY
No attribution of profits was required if reimbursement to Indian entity was made at arm's length price
Sec. 10(23C) exemption available, though other institutions run by trust didn't fulfil prescribed requirement
IT: Exemption under section 10(23C)(iiiab) is not relatable to individual institution run under common umbrella of a Trust and, thus, if assessee trust satisfies statutory requirement of section 10(23C)(iiiab), exemption provision would apply, irrespective of fact that in isolated cases of a few institutions run by trust, said requirement is not fulfilled
from www.taxmann.com Latest Case Laws http://bit.ly/2FVif7m
from www.taxmann.com Latest Case Laws http://bit.ly/2FVif7m
Govt. notified enforcement date for Requisitioning and Acquisition of Immovable Property (Amendment)
The Central Government has appointed 28th January, 2019 as the date of enforcement for Requisitioning and Acquisition of Immovable Property (Amendment) Act, 2018. The said Act allows Central Governmet to re-issue the notice of acquisition to ensure that the owner or any other person who is interested in the property gets an opportunity to be heard.
from taxmann.com News http://bit.ly/2HzxIeR
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Official assignee is required to compute tax and file ITR in status of ‘artificial juridical person’
The Central Board of Direct Taxes (CBDT) has clarified that Official Assignee, who realizes property of the insolvent and allocated it amongst the creditors of the insolvent, is require to file Income-tax return in the ITR form applicable to ‘artificial juridical person’ separately of each of the estate of the insolvent.
from taxmann.com News https://www.taxmann.com/topstories/222330000000017768/official-assignee-is-required-to-compute-tax-and-file-itr-in-status-of-‘artificial-juridical-person’-cbdt.aspx
from taxmann.com News https://www.taxmann.com/topstories/222330000000017768/official-assignee-is-required-to-compute-tax-and-file-itr-in-status-of-‘artificial-juridical-person’-cbdt.aspx
Monday, January 28, 2019
Clarification regarding liability and status of Official Assignees under the Income tax Act
HC slams AO for issuing reassessment notice relying on overruled judgment
RBI may Release NPA Data to Show Effect of Feb 12 Diktat
ITdept action may delay Siddhartha´s stake sale
ITdept action may delay Siddhartha´s stake sale
Commission paid to NR agents to carry out activities outside India not taxable in India
IT/ILT : Where assessee had paid commission to non-resident foreign agents who were carrying out activities outside India and non-resident agents did not have any permanent establishment in India, said payment was neither taxable, nor could be treated as FTS
from www.taxmann.com Latest Case Laws http://bit.ly/2B7WXiJ
from www.taxmann.com Latest Case Laws http://bit.ly/2B7WXiJ
Sec. 54F relief couldn't be denied if inspector of dept. had duly verified construction of new house
IT: Where assessee had sold an agricultural land and utilised sale consideration for construction of new residential house and claimed deduction under section 54F, since both Assessing officer and Commissioner (Appeals) had agreed to fact that Inspector had visited site and had reported that new house was constructed, exemption under section 54F could not be denied simply because bills and vouchers were not produced
from www.taxmann.com Latest Case Laws http://bit.ly/2MykNbM
from www.taxmann.com Latest Case Laws http://bit.ly/2MykNbM
Proceedings against non-executive directors were quashed as they weren't responsible for conducting affairs of co.
FEMA & BANKING: Where proceedings under section 141 were initiated against petitioners i.e. directors of company 'A', for issuing cheques which got dishonoured, in view of fact that petitioners were non-executive directors not responsible for day to day affairs of company 'A', proceedings initiated against than deserved to be quashed
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from www.taxmann.com Latest Case Laws http://bit.ly/2DBA2xJ
Friday, January 25, 2019
Sec. 41(1) couldn't be triggered just because debt had become time barred: HC
IT: Where Tribunal allowed assessee's claim for bad debts taking a view that in view of amendment made with effect from 1-4-1989, assessee had to only write off debts as irrevocable in its account and was not required to prove that they had become bad, impugned order passed by Tribunal did not require any interference
from www.taxmann.com Latest Case Laws http://bit.ly/2FOKmVF
from www.taxmann.com Latest Case Laws http://bit.ly/2FOKmVF
ITAT quashed ad-hoc determination of ALP by TPO instead of following prescribed method
IT/ILT : TPO is bound to determine ALP by following one of methods prescribed under section 92C(1), however, where TPO had not followed any prescribed methods and made transfer pricing adjustment by estimating man hours and cost of service per hour, ad-hoc determination of arms length price by TPO under section 92 would not be susatainable
from www.taxmann.com Latest Case Laws http://bit.ly/2RNWnBa
from www.taxmann.com Latest Case Laws http://bit.ly/2RNWnBa
No notional interest as inter-co. receivables weren't treated as international transactions during AY 2010-11
IT/ILT: Where TPO made addition of notional interest to ALP in respect of delay in realisation of payment from AE, in view of fact that in terms of agreement, there was no condition to charge any interest for delayed payments by AEs, impugned addition deserved to be set aside
from www.taxmann.com Latest Case Laws http://bit.ly/2Dw65PC
from www.taxmann.com Latest Case Laws http://bit.ly/2Dw65PC
Unutilised amount on prepaid card at year end to be treated as advance by telecom service provider: HC
IT: Where assessee was engaged in business of providing telecom services to both prepaid and postpaid subscribers, unutilized amount on prepaid card at end of year was to be treated as advance in balance-sheet and recognized as a revenue receipt in subsequent year, when talk time was actually used or was exhausted
from www.taxmann.com Latest Case Laws http://bit.ly/2FKimm9
from www.taxmann.com Latest Case Laws http://bit.ly/2FKimm9
Waiver under one time settlement disclosed in audit report to be considered while computing book profits
IT: Where waiver of principal and interest under one time settlement with lender was disclosed in 'Notes' to Auditors Report, it was obligatory on part of Assessing officer to have considered same while determining 'book profit' under section 115JB
from www.taxmann.com Latest Case Laws http://bit.ly/2CKR1fC
from www.taxmann.com Latest Case Laws http://bit.ly/2CKR1fC
Sec. 50C couldn't be applied if 'Jantri Value' of land wasn't higher than sale price agreed to by parties: ITAT
Sebi slaps Rs. 25 lakh fine on 3 firms for share manipulation
NCLAT dismisses plea against conversion of public co. to private Co as it wasn’t in contravention of the Act
CL : Where appellant a shareholder of respondent company, filed instant appeal against order passed by Tribunal whereby prayer of respondent to change its status from public to private company was accepted, in view of fact that there was nothing on record to suggest that conversion would not be in interest of company and it was in contravention of any of provisions of Act, instant appeal was to be dismissed
from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000185432/nclat-dismisses-plea-against-conversion-of-public-co-to-private-co-as-it-wasn’t-in-contravention-of-the-act.aspx
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No case of anti-competitive Act was made out against OP due to absence of collusive bidding in tender
Competition Act: Where in a tender floated by informant, bid of OP4 was not considered and authorized representative of OP4 alleged that same would cause collusive bidding as OP-1 to OP-3 belonged to same group, however, there was nothing on record to suggest collusive bidding by OP-1 to OP-3, further, OP4 was ousted from bidding process due to its inability to meet pre-qualification requirement, no case of contravention of provisions of section 3 was made out against OPs
from www.taxmann.com Latest Case Laws http://bit.ly/2AZNI40
from www.taxmann.com Latest Case Laws http://bit.ly/2AZNI40
Solitary instance of sale of all property couldn't be termed as adventure in nature of trade
IT: Where assessee held land for a considerable period of time, almost 12-15 years prior to its sale and there was no specific sale in contemplation at time of purchases, solitary transaction of sale for profit alone could not have been considered to be an adventure in nature of trade
from www.taxmann.com Latest Case Laws http://bit.ly/2DxCA04
from www.taxmann.com Latest Case Laws http://bit.ly/2DxCA04
Thursday, January 24, 2019
SEBI asks commodity exchanges to align trading and delivery lot size
The market regulator, SEBI had observed that the stock exchanges keep differential trading lot size and delivery lot size for some commodity derivatives contract. Therefore, it has been directed commodity exchanges to align trading lot size with delivery lot size to remove barriers
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SEBI issues clarifications on Depositories and Participants regulations
Stock Exchanges, Depositories, Public Financial Institution and Public Sector Banks had sought clarifications from SEBI with regard to applicability of Regulation 24(9) of SEBI (D&P) Regulation, 2018. In this regard, SEBI has clarified that a recognized clearing corporation shall not be considered as Depository Participant for the purpose of Regulation 24(9).
from taxmann.com News http://bit.ly/2HCH2ie
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Property purchase to be reckoned from original agreement date if deal delayed due to void compulsory acquisition
IT : Where purchase of property was delayed due to void compulsory acquisition by Appropriate IT Authority, date of purchase would relate back to original agreement, and not to date of execution of sale deed and benefit of cost indexation was to be provided from said date
from www.taxmann.com Latest Case Laws http://bit.ly/2FXYPxx
from www.taxmann.com Latest Case Laws http://bit.ly/2FXYPxx
Claim of sec. 54F deduction raised for first time before High Court couldn't be entertained
AO couldn't open reassessment merely relying upon audit objection regarding sec. 14A disallowance
No reassessment just to verify that info. received from VAT dept. related to hawala purchases; SLP dismissed
IT: SLP dismissed against High Court ruling that reassessment notice issued under section 148 just to verify information received by Assessing Officer from VAT Department relating to purchase made by assessee from hawala dealers, was not justified
from www.taxmann.com Latest Case Laws http://bit.ly/2FJoT09
from www.taxmann.com Latest Case Laws http://bit.ly/2FJoT09
SC Takes Dim View of MMT Fin Head Arrest Over Tax Arrears
Assessees Receive Notices for Missing Advance Tax Payments
Sebi provides clarity on norms for depository participants
New rule will give surplus reserves of Sebi, pension regulator to govt
SBI chief seeks Sebi´s views on Etihad bailout proposal for Jet
Purchasing car in name of trustee is in violation of sec. 13; HC ruled denial of exemption upto car amount
IT: Where funds of assessee-trust were utilized for purchase of car in name of its trustee, there was violation of section 13(2)(b), read with section 13(3); however, denial of exemption under section 11 should be limited only to amount which was diverted in violation of section 13(2)(b)
from www.taxmann.com Latest Case Laws http://bit.ly/2RMUhRM
from www.taxmann.com Latest Case Laws http://bit.ly/2RMUhRM
Provision for disqualification of directors is prospective and not retrospective: Gujarat HC
CL: Section 164(2) which had come into force from 1-1-2014 would have prospective and not retrospective effect and defaults contemplated under section 164(2)(a) with regard to non-filing of financial statements or annual returns for any continuous period of three financial years would be defaults to be counted from financial year 2014-15 only and not 2013-14
from www.taxmann.com Latest Case Laws http://bit.ly/2RKuR7C
from www.taxmann.com Latest Case Laws http://bit.ly/2RKuR7C
Assessee providing basic telecommunication services as BSNL franchisee was entitled to sec. 80-IA deduction
IT: Assessee, an authorised franchise of BSNL, operating telephone exchange and providing basic telecommunication services to its customers in pursuance of agreement entered into with BSNL was entitled to deduction under section 80-IA(4)(ii)
from www.taxmann.com Latest Case Laws http://bit.ly/2TeETKY
from www.taxmann.com Latest Case Laws http://bit.ly/2TeETKY
Assessee was eligible for dep. on royalty paid to Foreign Co. if same was treated as capital exp.
IT: Where in terms of collaboration agreement entered into with HMCL Japan, lump sum payment as well as royalty paid by assessee to HMCL for giving licence and technical assistance in order to manufacture and sale of automobiles were regarded as capital expenditure, assessee would be entitled to claim depreciation thereon
from www.taxmann.com Latest Case Laws http://bit.ly/2RP0fC1
from www.taxmann.com Latest Case Laws http://bit.ly/2RP0fC1
Liability of one unit can be discharged using entire Cenvat credit available with ISD: HC
GST/EXCISE/ST/VAT : Where assessee having unit at Pune and also at various other places was engaged in activity of providing information technology software services, coating services, etc. and it had utilized cenvat credit available at its Pune unit to discharge service tax payable on coating services at Pune, assessee was entitled to utilize cenvat credit available at its Pune unit to discharge service tax liability of Pune unit and in any event entire exercise would be of revenue neutral
from www.taxmann.com Latest Case Laws http://bit.ly/2CE9Jp8
from www.taxmann.com Latest Case Laws http://bit.ly/2CE9Jp8
Wednesday, January 23, 2019
Property purchased to be reckoned from original agreement date if deal delayed due to void compulsory acquisition
IT : Where purchase of property was delayed due to void compulsory acquisition by Appropriate IT Authority, date of purchase would relate back to original agreement, and not to date of execution of sale deed and benefit of cost indexation was to be provided from said date
from www.taxmann.com Latest Case Laws http://bit.ly/2R70LGc
from www.taxmann.com Latest Case Laws http://bit.ly/2R70LGc
No vested rights is taken away if exempted transactions were included in amended Benami Act: Delhi HC
Appellant/plaintiff claimed that though registered Sale Deed dated 26-11-2001 of suit property was in name of his wife and three sons, (Respondents) but since only appellant/plaintiff had paid entire sale consideration for purchasing suit property, therefore it was appellant/plaintiff who was actual owner of suit property. Hence, he filed plaint seeking reliefs of declaration, possession, use and occupation charges etc.
from www.taxmann.com Latest Case Laws http://bit.ly/2AYsDqu
from www.taxmann.com Latest Case Laws http://bit.ly/2AYsDqu
No sec. 69A additions in absence of proof that assessee had accepted on-money; SLP dismissed
IT: Where High Court upheld Tribunal's order deleting addition made by Assessing Officer under section 69A on ground that there was no reliable or independent evidence to come to conclusion that assessee had accepted on-money for sale of constructed properties, SLP filed against decision of High Court was to be dismissed
from www.taxmann.com Latest Case Laws http://bit.ly/2S21mgF
from www.taxmann.com Latest Case Laws http://bit.ly/2S21mgF
NCLT approves scheme of arrangement between Tata Teleservices and Bharti Airtel
CL : Composite scheme of arrangement between Tata Teleservices, Bharti Airtel and Bharti Hexacom(Petitioner companies) and their respective shareholders and creditors was to be sanctioned under sections 230 to 232 of the Companies Act, 2013 as memebrs and creditors of Petitioner Companies had accorded their approval to proposed Scheme, and further in view of affidavits filed by Regional Director, Northern Region, Ministry of Corporate Affairs, Income Tax Department and Department of Telecommunic
from www.taxmann.com Latest Case Laws http://bit.ly/2Dtt8dQ
from www.taxmann.com Latest Case Laws http://bit.ly/2Dtt8dQ
Now provision related to disclosure under Insider Trading is applicable to promoter group also: SEBI
Delhi HC upheld constitutional validity of Sec. 10(34) and Sec. 115BBDA
IT : Constitutional validity of section 10(34) and section 115BBDA is challenged on ground that section 115BBDA does not have any 'base', and it makes hostile discrimination between a resident assessee and a non-resident assessee, as provision only applies to a resident assessee
from www.taxmann.com Latest Case Laws http://bit.ly/2Tdcg0I
from www.taxmann.com Latest Case Laws http://bit.ly/2Tdcg0I
Only net profit embedded in unaccounted receipts could be taxed under section 69A: ITAT
IT: Where AO made addition to assessee's income under section 69A in respect of unaccounted receipts reflected in loose papers seized in course of search, in view of fact that assessee could not earn gross receipts without incurrence of expenditure, it was only net profit embedded in unaccounted receipts which deserved to be added to his taxable income
from www.taxmann.com Latest Case Laws http://bit.ly/2CCZ1z6
from www.taxmann.com Latest Case Laws http://bit.ly/2CCZ1z6
MCA specifies MSME Form I for furnishing half yearly return in respect of dues to Micro & Small ente
The Ministry of Corporate Affairs (MCA) has specified the e-form MSME Form I for furnishing half yearly return in respect of the amount of payment dues and the reason of the delay to Micro & Small enterprises. The e-form has to be filed by the company within 30 days from the date of publication of this notification.
from taxmann.com News http://bit.ly/2sJfOfr
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Taxman Lists Non-filers who Carried Out High-Value Transactions in FY19
CBDT Nullifies Notification on Exempting Share Transfers
MCA amends Companies (Prospectus and Allotment of securities) Rules, 2014
The Ministry of Corporate Affairs (MCA) has amended the Companies (Prospectus and Allotment of securities) Rules, 2014 wherein it has been specified that the provision related to issue of securities in dematerialized form shall not apply to unlisted public company which is Nidhi Company, Govt. company and Wholly owned subsidiary.
from taxmann.com News http://bit.ly/2T8nV0x
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Trust entitled to accumulate income upto 15% of receipts without considering exp. incurred on its object
Non-compete fee received from purchaser of trademark is not taxable under GST: HC
GST/EXCISE/ST/VAT: Where assessee having registered office in Kerala had sold its trademark to one 'W' having registered office at Bangalore and agreement was executed at Ahemedabad and Assessing Authority assessed non-competition fee received by assessee from 'W' as local sale, there was no sale of goods in said transaction
from www.taxmann.com Latest Case Laws http://bit.ly/2sE0516
from www.taxmann.com Latest Case Laws http://bit.ly/2sE0516
Society constituted with anaesthesia specialist doctors not to be considered benefiting only one branch of medicine
IT: Where assessee society was constituted to bring doctors, dealing in anaesthesia speciality, together for purpose of inter alia development of medical science, publication of research magazine, to promote research and practical work and to organise seminars etc., it could not be said that society was constituted for benefit of only one branch of medicine i.e. anaesthesia, and not for purpose of benefitting entire medical fraternity and, therefore, assessee was to be granted benefit of registr
from www.taxmann.com Latest Case Laws http://bit.ly/2Mp6NRM
from www.taxmann.com Latest Case Laws http://bit.ly/2Mp6NRM
CBDT identifies ITR non-filers; asks them to file ITR or submit online response within 21 days
The Central Board of Direct Taxes (CBDT) has identified several potential non-filers who have carried out high value transactions in Financial Year 2017-18 but haven't filed Income-tax return. Non-filers were identified through Non-Filers Monitoring System (NMS) by using data analytics. Non-filers are requested to file ITR or submit online response within 21 days.
from taxmann.com News http://bit.ly/2FJDI2Z
from taxmann.com News http://bit.ly/2FJDI2Z
SEBI revises format of Monthly Cumulative Report
As per the existing provision, a mutual fund scheme is permitted to invest certain percentage of its AUM in schemes of same mutual fund or other mutual fund. So, in order to avoid such investments being considered by both the investee and investing scheme, the market regulator, SEBI has revised the format of monthly cumulative report and clarified that the investing scheme shall exclude the same while reporting the data on AUM in the MCR.
from taxmann.com News http://bit.ly/2RXNt3e
from taxmann.com News http://bit.ly/2RXNt3e
Writing off dues of foreign company without involving shareholders tantamounted to oppression
CL : Where respondent No. 2 had written off dues recoverable by respondent company from Diaster Inc. of USA which was family held company managed by respondent No. 2 and had excluded his brother i.e., appellant, from management and affairs of respondent company although he held more than 50 per cent shares in company, action of respondent was oppressive of appellant-shareholders and respondent was guilty of oppression and mismanagement
from www.taxmann.com Latest Case Laws http://bit.ly/2W6rGWl
from www.taxmann.com Latest Case Laws http://bit.ly/2W6rGWl
Writing off dues of foreign company without involving shareholders tantamounted to oppressive
CL : Where respondent No. 2 had written off dues recoverable by respondent company from Diaster Inc. of USA which was family held company managed by respondent No. 2 and had excluded his brother i.e., appellant, from management and affairs of respondent company although he held more than 50 per cent shares in company, action of respondent was oppressive of appellant-shareholders and respondent was guilty of oppression and mismanagement
from www.taxmann.com Latest Case Laws http://bit.ly/2S05XA6
from www.taxmann.com Latest Case Laws http://bit.ly/2S05XA6
Tuesday, January 22, 2019
Views expressed in Circular 10/2018 (subsequently withdrawn) were contrary to legislative intent: CB
The Central Board of Direct Taxes (CBDT) has issued another circular to clarified that any view expressed in the circular no. 10/2018, which was subsequently withdrawn, shall be considered to have never been expressed by the board. The CBDT has decided that the view expressed in said circular that sec. 56(2)(viia) won’t apply to fresh issuance of shares would not be a correct approach and it would be contrary to provisions and legislative intent.
from taxmann.com News http://bit.ly/2CFC2Dp
from taxmann.com News http://bit.ly/2CFC2Dp
No need to launch prosecution proceedings just because stay petition of assessee was dismissed by ITAT: HC
IT : Where during pendency of assessee's appeal before Tribunal, his stay petition was dismissed and thereupon AO initiated prosecution proceedings under section 276C for non-payment of determined tax, in view of fact that assessee was agitating his case before Tribunal, which was final fact-finding body, there was no necessity to launch prosecution hurriedly because law of limitation under section 468 Cr. P.C. for criminal prosecution was excluded by Economic Offences (Inapplicability of Limita
from www.taxmann.com Latest Case Laws http://bit.ly/2R9Ja0o
from www.taxmann.com Latest Case Laws http://bit.ly/2R9Ja0o
Society constituted with anaesthesia specialist doctors couldn't be considered for benefit of only anaesthesia
IT: Where assessee society was constituted to bring doctors, dealing in anaesthesia speciality, together for purpose of inter alia development of medical science, publication of research magazine, to promote research and practical work and to organise seminars etc., it could not be said that society was constituted for benefit of only one branch of medicine i.e. anaesthesia, and not for purpose of benefitting entire medical fraternity and, therefore, assessee was to be granted benefit of registr
from www.taxmann.com Latest Case Laws http://bit.ly/2DqdpMS
from www.taxmann.com Latest Case Laws http://bit.ly/2DqdpMS
Reassessment notice in name of deceased person can't be treated as valid by invoking provision of sec. 292BB
IT : Where notice seeking to reopen assessment was issued in name of deceased assessee, since she could not have participated in reassessment proceedings, provisions of section 292BB were not applicable to assessee's case and as a consequence, impugned reassessment proceedings deserved to be quashed
from www.taxmann.com Latest Case Laws http://bit.ly/2RJ2ZRg
from www.taxmann.com Latest Case Laws http://bit.ly/2RJ2ZRg
Intangible assets being licenses, permits & business approvals purchased in slump sale eligible for dep.
There’s a Devil in Angel Tax
Unpaid security deposit to acquire leasehold premises is not debt u/s 2(g) of the RDDBFI Act
Growth much below potential, hit by revenues and capital expenditure
No sec. 40A(3) disallowance if taxable income of assessee was computed by applying gross profit rate
CBDT issues corrigendum on Circular on TDS from salary for FY 2018-19
No further RBI’s approval required for opening branch office in India if already approved by Govt.
Govt. amends the FEM (Establishment in India a branch office or liaison office or a project office or any other place of business) Regulations, 2016. Proviso to Regulation 5(c) has been substituted providing that RBI’s approval is not required if Govt. approval by the concerned Ministry has already been granted for opening branch office or liaison office or project office by a person resident outside relating to four sectors viz. Defence, Telecom, Private Security and Information Broadca
from taxmann.com News https://www.taxmann.com/topstories/222330000000017701/no-further-rbi’s-approval-required-for-opening-branch-office-in-india-if-already-approved-by-govt.aspx
from taxmann.com News https://www.taxmann.com/topstories/222330000000017701/no-further-rbi’s-approval-required-for-opening-branch-office-in-india-if-already-approved-by-govt.aspx
HC quashes initiation of reassessment on Bharti Infratel as it made full disclosure of demerger deal
IT : Company BAL transferred its passive telecom infrastructure asset having WDV Rs. 5,739 crores to assessee, a wholly owned subsidiary, for Nil value, under scheme of arrangement approved by High Court - These assets were immediately re-valued at Rs. 8218 crores - Difference between two figures of Rs. 8218.12 crores and Rs. 5739.60 crores was taxed in hands of BAL - Immediately thereafter assessee transferred these assets to a third party - Assessing Officer held that re-assessment in case of
from www.taxmann.com Latest Case Laws http://bit.ly/2FR9nys
from www.taxmann.com Latest Case Laws http://bit.ly/2FR9nys
Non-adjudication of objections raised by assessee would render consequential actions/orders by AO illegal: HC
IT: Where Assessing Officer did not adjudicate objection raised by assessee as to assumption of jurisdiction under section 148 on ground that it was not feasible to pass speaking order on objections and passed impugned order of assessment, assessment order and consequent actions would be illegal
from www.taxmann.com Latest Case Laws http://bit.ly/2S1kfAp
from www.taxmann.com Latest Case Laws http://bit.ly/2S1kfAp
Sell of IT products such as printers, computers, projectors, etc., shall attract 12.5% Maharashtra VAT: HC
GST/EXCISE/ST/VAT : Where assessee was engaged in business of importing and selling electronic and Information Technology products such as printers, computers, projectors, etc., multi functional printers sold by it would not be classifiable under Sr. No. 3/Heading No. 84.71 of Notification No. VAT-1505/CR-116/ Taxation-1, dated 1-4-2005 issued under Entry No. 56 of Schedule 'C' of Maharashtra VAT Act and liable to tax at rate of 12.5 per cent
from www.taxmann.com Latest Case Laws http://bit.ly/2HrmiK9
from www.taxmann.com Latest Case Laws http://bit.ly/2HrmiK9
Monday, January 21, 2019
Corrigendum
ICSI issues guidance note on Dividend
The Institute of Company Secretaries of India (ICSI) has issued guidance note of Dividend. This Guidance note sets out the explanations, procedure and practical aspects in respect of the provisions contained in Secretarial Standard – 3 to facilitate compliance thereof by the stakeholders.
from taxmann.com News http://bit.ly/2R3YX0D
from taxmann.com News http://bit.ly/2R3YX0D
Threshold limit for sec. 194-IA TDS not to be checked by referring to amount mentioned in sale deed
IT: Where assessee purchased an immovable property alongwith three other members of family for Rs. 1.50 crores, in view of fact that share of each co-owner came to Rs. 37.50 lakhs which was under threshold limit prescribed by section 194-IA, assessee was not required to deduct tax at source while making payment in question
from www.taxmann.com Latest Case Laws http://bit.ly/2FOrUvx
from www.taxmann.com Latest Case Laws http://bit.ly/2FOrUvx
CIT wasn't justified in refusing deduction if employee's contribution to PE made before due date of ITR filing: HC
IT: Where assessee filed a revision petition raising claim for deduction of employees contribution to PF which was erroneously not claimed in return of income, in view of fact that all payments towards employee's contribution to PF had been made before due date of filing of return, Commissioner was not justified in refusing to entertain assessee's claim on merits
from www.taxmann.com Latest Case Laws http://bit.ly/2FMkNnf
from www.taxmann.com Latest Case Laws http://bit.ly/2FMkNnf
Prosecution SCN’s are being issued only in case TDS defaults of more than Rs. 5 lakh; CBDT clarifies
In response to the media news regarding issue of prosecution notices to small companies for TDS default, the Central Board of Direct Taxes (CBDT) has clarified that Mumbai Income TDS dept. has issued prosecution show cause only in a limited number of big cases where more than Rs. 5 lakh of tax was collected as TDS from employees etc and yet the same wasn't deposited with the dept. in time.
from taxmann.com News https://www.taxmann.com/topstories/222330000000017699/prosecution-scn’s-are-being-issued-only-in-case-tds-defaults-of-more-than-rs-5-lakh-cbdt-clarifies.aspx
from taxmann.com News https://www.taxmann.com/topstories/222330000000017699/prosecution-scn’s-are-being-issued-only-in-case-tds-defaults-of-more-than-rs-5-lakh-cbdt-clarifies.aspx
No sec. 194J TDS on amount reimbursed to affiliated colleges for conducting examination: HC
IT: Where assessee-University conducted examinations through various colleges affiliated to it, in absence of any material to establish that affiliated colleges/centres were rendering services of professional or technical nature in matter of conducting University's examination, Tribunal did not commit any error in holding that tax was not deductable on such reimbursement of expenses incurred by colleges/centres under section 194J
from www.taxmann.com Latest Case Laws http://bit.ly/2Cup9fm
from www.taxmann.com Latest Case Laws http://bit.ly/2Cup9fm
HC Quashes I-T Dept Move to Reassess Bharti Infra’s Past Income Beyond 4 Yrs
CBDT: Mumbai I-T TDS Office Issued Prosecution Show Cause Only in Big Default Cases
CBDT Asks Tax Officials to Speed Up Withdrawal of Appeals Cases
SLD dismissed against HC's ruling allowing sec. 11 relief taking view that rent paid to trustee wasn't excessive
IT : Where High Court upheld Tribunal's order that rent paid by assessee-trust to a trustee for using land and building was not excessive and, thus, exemption could not be denied to assessee under section 11 by invoking provisions of section 13(1)(c), SLP filed against said order was to be dismissed
from www.taxmann.com Latest Case Laws http://bit.ly/2T3JoYz
from www.taxmann.com Latest Case Laws http://bit.ly/2T3JoYz
ITAT had power to consider application for recall of an order if appeal was decided ex-parte
Delay in filing appeal to be condoned if identical issues were pending in earlier assessment years
IT: Where High Court refused to condone delay in filing appeal on ground that appeals on identical issues for earlier years were pending before Court and, thus, assessee was under a bona fide belief that relief, if any, granted in those appeals pending before Court would enure to his benefit for subject assessment year as well, in view of fact that High Court had to decide question of law between parties in any case in respect of earlier assessment years, it should not have taken such a technica
from www.taxmann.com Latest Case Laws http://bit.ly/2sLpEgZ
from www.taxmann.com Latest Case Laws http://bit.ly/2sLpEgZ
Saturday, January 19, 2019
Sec. 80G renewal couldn't be rejected on ground that income of trust wasn't utilized for charitable purposes
IT: Where assessee's application for renewal of recognition under sec. 80G(5)(vi) was rejected on ground that its income was not being used for charitable purpose, since question of applicability of income of assessee can be gone into by assessing authority only at time of assessing income of assessee, impugned order deserved to be set aside.
from www.taxmann.com Latest Case Laws http://bit.ly/2W2qrqW
from www.taxmann.com Latest Case Laws http://bit.ly/2W2qrqW
SC Notice to Centre on Voda Plea Seeking Rs. 5,000-Cr I-T Refunds
Govt to Further Ease Framework to Exorcise Angel Tax Demons
Softbank, The Carlyle Group seek CCI nod to invest in Delhivery
CCI clears Amazon Witzig bid to acquire Aditya Birla Retail
HC prevents AO from passing any further order until jurisdiction of TPO to examine referred transactions was decided
IT/ILT: Where assessee filed instant petition raising a plea that in terms of sub-section (2A) of section 92CA, jurisdiction of TPO to examine any transaction which came to his notice during course of proceedings though not referred to him under sub-section (1), was confined to an international transaction only, AO was to be prevented from passing any order until aforesaid issue was decided by court
from www.taxmann.com Latest Case Laws http://bit.ly/2FBQBMy
from www.taxmann.com Latest Case Laws http://bit.ly/2FBQBMy
Provisions of sec. 13(2)(c) couldn't be invoked in absence of findings that amount paid by trust was excessive
Friday, January 18, 2019
Sec. 14A disallowance couldn't exceed exempt income earned during the year : HC
No sec. 69C additions if assessee established identity of sellers and furnished payment details
IT: Where assessee had claimed expenses towards purchase of machineries from several parties and had filed copies of PAN cards of these parties so as to establish their identity and had also furnished relevant details regarding payments made against bills raised by such parties by way of account payee cheque after deduction of TDS, Assessing Officer was unjustified in making additions under section 69C treating such purchase of machineries to be bogus
from www.taxmann.com Latest Case Laws http://bit.ly/2RUg3Cu
from www.taxmann.com Latest Case Laws http://bit.ly/2RUg3Cu
Budget Likely to Raise MGNREGS Allocation by 9% to Rs. 60,000 crore
‘Angel Tax Sops May Not Apply to All Startups’
Kotak Bank’s Stake Dilution Case Deferred by Bombay HC
RBI’s Revised ECB Norms may Open Funding Doors for Firms
Cong Receives 1/5th of Funds BJP Gets from Donors: Audit
Budget content would be decided by economic realitites, says jaitley
Pay up Rs. 100 crore today or face seizure: NGT tells VW
Writ not maintainable if revenue clarified that income disclosed under PMGKY to be excluded from block assessments
IT: Where assessee filed a writ petition challenging notice issued under section 153A on ground that after deposit of amount of tax, surcharge and penalty under Pradhan Mantri Garib Kalyan Yojana, 2016, he was entitled for benefit of provisions of clauses 199-I and 199-J of PMGKY, 2016 in view of fact that grievance of assessee stood fully redressed in light of written instructions of revenue which stated that income which had been disclosed by him under PMGKY would be excluded from assessment o
from www.taxmann.com Latest Case Laws http://bit.ly/2FFa2D4
from www.taxmann.com Latest Case Laws http://bit.ly/2FFa2D4
Sec. 35AD deduction couldn't be denied if AO did not dispute operation of hotel during relevant year
IT: Where Assessing Officer rejected assessee's claim for deduction under section 35AD(5)(aa) on ground that assessee had obtained classification as a three star category hotel only during next assessment year, in view of fact that revenue had not disputed operation of new hotel from relevant financial year and, moreover, assessee had filed application for classification of hotel in three star category in assessment year in question itself, impugned order passed by Assessing Officer was to be se
from www.taxmann.com Latest Case Laws http://bit.ly/2W2zMPv
from www.taxmann.com Latest Case Laws http://bit.ly/2W2zMPv
Reassessment proceedings couldn't be quashed merely because AO supplied two sets of reasons to assessee
IT : Where assessee challenged validity of reassessment proceedings on ground that Assessing Officer had supplied two sets of reason, in view of fact that gist of reasons recorded in both sets of communications sent to assessee were same, assessee's objection was to be rejected and validity of reassessment proceedings deserved to be upheld
from www.taxmann.com Latest Case Laws http://bit.ly/2szZiym
from www.taxmann.com Latest Case Laws http://bit.ly/2szZiym
Exp. incurred by co-operative society in furtherance of its object was allowable deduction
IT/ILT : Where multi-State co-operative society was undertaking object of carrying-out social development activities for village poor by way of undertaking projects in forestry development, developing water harvesting systems and main objective of assessee was to carry-out social development and welfare activities and assessee had incurred expenditure for rural development, generation of additional employment, women’s empowerment and in development and construction of water reservoirs which was
from www.taxmann.com Latest Case Laws http://bit.ly/2syUrNW
from www.taxmann.com Latest Case Laws http://bit.ly/2syUrNW
Thursday, January 17, 2019
Start-up tax exemption procedure simplified; merchant banker valuation report withdrawn
The DIPP has substituted Para (4) of its earlier issued Notification no. GSR 364(e) which provides for conditions to be fulfilled by the start-up cos. and investors for claiming exemptions. The relaxations provided by the DIPP’s new notification, which shall be in force from January 16, 2019, are enumerated in subsequent paragraphs.
from taxmann.com News http://bit.ly/2VU5bnr
from taxmann.com News http://bit.ly/2VU5bnr
Income-tax Refund in ‘One Day’ might be a reality
With the introduction of new mechanism of integrated e-filing and centralized processing, it is estimated that the refunds will be processed within one day and would increase the compliance and transparency in the system.
from taxmann.com News https://www.taxmann.com/topstories/222330000000017667/income-tax-refund-in-‘one-day’-might-be-a-reality.aspx
from taxmann.com News https://www.taxmann.com/topstories/222330000000017667/income-tax-refund-in-‘one-day’-might-be-a-reality.aspx
ALV of house property computed on basis of Municipal value not to be substituted with expected rent: ITAT
IT: Where AO sought to reopen assessment after expiry of four years from end of relevant year on ground that assessee owned two house properties and, thus, one of said house property was to be treated as deemed let out and annual lettable value of said house property was to be determined as provided under section 23(1), since all relevant facts were brought on record at time of assessment, in view of proviso to sec. 147, impugned reassessment proceedings deserved to be set aside
from www.taxmann.com Latest Case Laws http://bit.ly/2RO2rJ7
from www.taxmann.com Latest Case Laws http://bit.ly/2RO2rJ7
Norms for investment and disclosure by mutual funds in derivatives: SEBI
IRDAI issues guidelines on International Financial Service Centre Insurance intermediary offices
IRDAI has issued the guidelines on Insurance Regulatory and Development Authority of India (International Financial Service Centre Insurance intermediary offices), 2019 with an aim to grant permission to intermediaries registered by the authority to undertake operation in International Financial Service Centre (IFSC) as the objectives of the IFSC.
from taxmann.com News http://bit.ly/2VY4g5h
from taxmann.com News http://bit.ly/2VY4g5h
RBI eases External Commercial Borrowings norms
MNCs in a Fix Over ‘Dual’ Tax Notices
CAIT Favours FDI Policy for Ecomm Covering Domestic Cos Too
Cabinet Approves Rs. 4,242-cr Project to Speed up ITR Processing to 1 Day
Angel Tax Won’t Haunt Startups Any Longer
Sidbi´s new venture capital fund to back late stage start ups
NCLT reserves order on freezing assets of former IL and FS execs
No sec. 36(1)(iii) disallowance as renovation of destroyed plant wasn't to be treated as 'acquisition of asset'
IT: Where assessee acquired loan for reconstruction or renovation of its existing cold storage which was destroyed by fire, such reconstruction or renovation could not be considered as 'acquisition of an asset', thus, interest paid on such loan could not be disallowed under section 36(1)(iii)
from www.taxmann.com Latest Case Laws http://bit.ly/2ssV3o4
from www.taxmann.com Latest Case Laws http://bit.ly/2ssV3o4
Govt. simplifies procedure for startups to seek exemption from sec. 56(2)(viib) applicability
The Department of Industrial Policy and Promotion (DIPP) has simplified the procedure for startups to claim exemption from the applicability of Section 56(2)(viib). The DIPP has substituted Para (4) of Notification no. GSR 364(e), issued on 11-4-2018, which provides for conditions to be fulfilled by Startups while claiming tax exemption.
from taxmann.com News http://bit.ly/2He2HwM
from taxmann.com News http://bit.ly/2He2HwM
Loading coal from pit-head into tippers and then its transportation classifiable under GTA service: CESTAT
GST/EXCISE/ST/VAT : Where assessee was engaged in loading coal from pit-heads into tippers by pay loaders and its transportation after weighment and then unloading at different places as per work orders, services provided by assessee classifiable under head 'goods transport agency service'
from www.taxmann.com Latest Case Laws http://bit.ly/2FwcSv8
from www.taxmann.com Latest Case Laws http://bit.ly/2FwcSv8
Wednesday, January 16, 2019
Transaction to be considered as slump sale, though no business liabilities were transferred on date of sale
Failure to prove that sum deposited in bank was from loan taken from creditors called for sec. 68 additions
Reassessment on ground that HSBC didn't carry out any banking activities in Mauritius was mere change of opinion
IT/ILT : Where assessee during scrutiny assessment claimed benefit of DTAA between India and Mauritius and Assessing Officer accepted such claim making specific mention in order of assessment holding that assessee is entitled to benefit of DTAA since assessee was carrying on bonafide banking activities in Mauritius, Assessing Officer could not have re-opened assessment and re-examined issue on ground that assessee did not carry out bonafide banking activities in Mauritius.
from www.taxmann.com Latest Case Laws http://bit.ly/2Rsw5E8
from www.taxmann.com Latest Case Laws http://bit.ly/2Rsw5E8
Co-operative society carrying on banking business not required to deduct tax u/s. 194A on interest paid to members: SC
IT: SLP dismissed against High Court ruling that where assessee, a co-operative society, carrying on banking business, paid interest income to members on time deposits, it was not required to deduct tax at source under section 194A by virtue of exemption granted vide clause (v) of sub-section (3) of section 194A
from www.taxmann.com Latest Case Laws http://bit.ly/2SVFLUv
from www.taxmann.com Latest Case Laws http://bit.ly/2SVFLUv
HC admits petitions challenging merger of Vijaya, Dena with BoB
HC confirmed sec. 69C additions as purchases were made from non-existent parties
IT: Where assessee accepted unsecured loans from three parties, in view of fact that assessee failed to prove creditworthiness of said parties and, moreover, amount had been deposited to bank accounts of those parties on same day when cheques were issued to assessee, impugned addition made under section 69A in respect of loan amount was to be confirmed
from www.taxmann.com Latest Case Laws http://bit.ly/2suTlCQ
from www.taxmann.com Latest Case Laws http://bit.ly/2suTlCQ
SEBI issues guidelines for public issue of units of InvITs and REITs
Serious injury caused to tax consultant of assessee was sufficient ground to condone delay in revision petition
IT: Where assessee filed an application seeking condonation of delay in filing revision petition on ground that its tax consultant was indisposed for about 6 to 7 months due to serious back injury, assessee's application was to be allowed and, matter was to be remanded back for disposal on merits
from www.taxmann.com Latest Case Laws http://bit.ly/2srDgh3
from www.taxmann.com Latest Case Laws http://bit.ly/2srDgh3
Tuesday, January 15, 2019
Declaration of moratorium will not cause stay of proceedings beneficial to corporate debtor: HC
IBBC : Interim order was passed by Appellate Tribunal under sections 241, read with section 242 of the Companies Act, 2013 which prohibited proceedings against IL&FS (corporate debtor) and its 348 Group Companies, which restrained any kind of recovery from IL&FS herein, but not proceedings beneficial to IL&FS, entitling it for recovering any amount from other parties
from www.taxmann.com Latest Case Laws http://bit.ly/2FtnZEP
from www.taxmann.com Latest Case Laws http://bit.ly/2FtnZEP
No denial of sec. 54 relief if builder failed to complete construction within 3 years: HC
IT: Where AO rejected assessee's claim for deduction under sec. 54 on ground that construction of new property was not completed within a period of three years as prescribed in section 54, in view of fact that delay was beyond control of assessee because construction was put up by builder, impugned order passed by Tribunal allowing assessee's claim was to be upheld
from www.taxmann.com Latest Case Laws http://bit.ly/2ANuZJ3
from www.taxmann.com Latest Case Laws http://bit.ly/2ANuZJ3
No sec. 263 revision if appeal against order of AO was pending before CIT(A): Madras HC
IT: Where assessee sold a property and invested sale consideration from same for purchase of another property and claimed exemption under section 54, however, Assessing Officer allowed exemption under section 54F instead of section 54, and, assessee filed an appeal against said order, since larger issue was pending before Commissioner (Appeals), Commissioner could not invoke jurisdiction under section 263 against said order of Assessing Officer on account of statutory bar
from www.taxmann.com Latest Case Laws http://bit.ly/2QR5Y4K
from www.taxmann.com Latest Case Laws http://bit.ly/2QR5Y4K
Reid and Taylor: NCLT Seeks Info on Investor’s Fin Health
After a Break of 6 Months, SAT Likely to Soon Start Clearing Cases
Non tax revenue target may fall short despite RBI interim payout
Penalty for late filing of ITR couldn't be deleted just because ITR of previous year was filed belatedly
IT: Whether penalty proceeding under section 272A(2(e) is a separate proceeding from assessment of income and, thus, once assessee, liable to file return under section 139(4A), failed to do so within prescribed time period, provisions of section 272A(2)(e) would attract automatically irrespective of income determined in course of assessment
from www.taxmann.com Latest Case Laws http://bit.ly/2AKYHhu
from www.taxmann.com Latest Case Laws http://bit.ly/2AKYHhu
Co. engaged in providing KPO services not to be taken as comparable if assessee was rendering ITES to AE
Highly technical service co. is not comparable to marketing support service provider
Benefit of vacancy allowance was available if assessee made appropriate efforts in letting out property: ITAT
IT : Where assessee intended to let out property and took appropriate efforts in letting property, however, due to fall in property prices failed to let out same year after year because of which property remained vacant, assessee was entitled to claim benefit under section 23(1)(c)
from www.taxmann.com Latest Case Laws http://bit.ly/2VSBhju
from www.taxmann.com Latest Case Laws http://bit.ly/2VSBhju
Monday, January 14, 2019
The President promulgates the Companies (Amendment) Ordinance, 2019
The Companies (Amendment) Ordinance, 2018 was promulgated by the President on November 02, 2018. And Companies (Amendment) Bill, 2019 to replace the 2018 Ordinance has been passed by the House of People on the January 04, 2019 and is pending with the Council of States. As the bill couldn’t be passed in Rajya Sabha and on January 21, 2019 it would have ceased to operate and Parliament is not in session therefore, the President promulgated the Companies (Amendment) Ordinance, 2019.
from taxmann.com News http://bit.ly/2TLeKmH
from taxmann.com News http://bit.ly/2TLeKmH
SEBI issues timelines for uniform membership structure in across equity cash and derivative segments
In order to implement uniform membership structure across segments, SEBI has provided that that membership structure as Trading Member, Self-clearing member (SCM) and professional clearing member as prevalent in equity derivative segment shall be implemented in cash segment w.e.f. April 01, 2019. The existing stock brokers in cash segment of a stock exchange were are registered as SCM/CM in derivatives segment shall automatically become SCM/CM in cash segment w.e.f. April 01, 2019.
from taxmann.com News http://bit.ly/2RS9Res
from taxmann.com News http://bit.ly/2RS9Res
NCLT Admits Insolvency Plea Against Parsvnath Landmark Developers
Substance of transaction was essential to treat a lease as finance lease or operating lease: HC
HC justified 50% disallowance as assessee failed to prove that promotion exp. was incurred for business purpose
IT: Where assessee claimed deduction in respect of business promotion expenses, in view of fact that assessee did not produce material and documents to show that said expenditure was incurred for business purpose, mere fact that payments were made through credit card would not be sufficient to prove their genuineness and, thus revenue authorities were justified in making disallowance of 50 per cent of expenses claimed as deduction
from www.taxmann.com Latest Case Laws http://bit.ly/2MaogNB
from www.taxmann.com Latest Case Laws http://bit.ly/2MaogNB
Share allotment under 'rights issue' not taxable u/s. 56(2)(vii)(c) if shareholders were relatives : ITAT
Govt. includes merchant exporters in interest equalisation scheme
Government decides to include merchant exporters also w.e.f. January 2, 2019 under the ongoing interest equalisation scheme for pre and post shipment rupee export credit and allow them interest equalisation at the rate of 3% on credit for export products covered under 416 tariff lines identified under the scheme.
from taxmann.com News http://bit.ly/2FAHsD9
from taxmann.com News http://bit.ly/2FAHsD9
Sec. 69C additions justified if assessee failed to provide stock registers; SC dismissed SLP
IT : Where High Court upheld Tribunal's order confirming addition made to assessee's income in respect of unaccounted business receipts having regard to fact that gross profit declared by assessee was much lesser than profit in said line of business and, moreover assessee had failed to provide stock register despite several opportunities, SLP filed against said decision was to be dismissed
from www.taxmann.com Latest Case Laws http://bit.ly/2D7tozl
from www.taxmann.com Latest Case Laws http://bit.ly/2D7tozl
Assignment of leasehold rights couldn't be held as transfer if agreement wasn't registered: ITAT
IT: Unless document is registered, it has no effect in law for purpose of section 53A of Transfer of Property Act 1882 and, therefore, where assessee received certain amount by virtue of an unregistered agreement of assignment of leasehold rights, no case of transfer of property was made out under section 2(47)(v)
from www.taxmann.com Latest Case Laws http://bit.ly/2CkNi8l
from www.taxmann.com Latest Case Laws http://bit.ly/2CkNi8l
Friday, January 11, 2019
Valuation done by DVO is binding on Assessing Officer: ITAT
Appeal to be admitted if defect of non-payment of tax is removed by assessee later on
IT : In terms of sub-section (4) of section 249, payment of tax is mandatory but requirement of paying such tax before filing appeal is only directory and, therefore, when defect in appeal, being non-payment of such tax, is removed, earlier defective appeal becomes valid
from www.taxmann.com Latest Case Laws http://bit.ly/2H6zqnQ
from www.taxmann.com Latest Case Laws http://bit.ly/2H6zqnQ
Interest couldn't be disallowed on mere presumption that assessee would earn tax-free dividend in future
IT: Where Tribunal rejected assessee's claim for deduction of interest on loan taken for acquiring control over two companies on ground that it would result in earning exempt dividend income, impugned order passed by Tribunal based on imaginary income and expenditure of subsequent year, was not sustainable
from www.taxmann.com Latest Case Laws http://bit.ly/2FjLyQB
from www.taxmann.com Latest Case Laws http://bit.ly/2FjLyQB
RBI to eye Dec qtr results before easing lending curbs on banks
ILandFS effect: Bandhan Bank sees provisions triple, NPAs spike in Q3
ITAT slams AO for making afresh sec. 153A assessments when no incriminating material was found during search
RBI reviews transitional arrangements under Basel III capital regulations
RBI has decided to defer the implementation of the last tranche of 0.625% of Capital Conservation Buffer from March 31, 2019 to March 31, 2020. Accordingly, minimum capital conservation ratio framework as applicable from March 31, 2018, and the same will also apply from March 31, 2019 till the Capital Conservation Buffer attains the level of 2.5% on March 31, 2020.
from taxmann.com News http://bit.ly/2CjF6F8
from taxmann.com News http://bit.ly/2CjF6F8
No question of law arose in deletion of sec. 14A disallowance on ground that no exempt income was earned
Rice Bucket Elevator & Rice Conveyor classifiable as rice mill machinery under Heading No. 8437
GST/IDT : Where assessee was engaged in manufacture of Rice Milling Machinery and Parts thereof like rice bucket elevator (grain discharger), rice conveyor (grain feeder), paddy cleaner, paddy husker, paddy separator, etc., 'rice bucket elevator' and 'rice conveyor' specifically manufactured as part of rice milling machinery along with other machinery of rice merited classification under Heading No. 8437
from www.taxmann.com Latest Case Laws http://bit.ly/2VHL8se
from www.taxmann.com Latest Case Laws http://bit.ly/2VHL8se
SLP granted against HC's ruling that advancement of computer communication in India was charitable in activity
IT: Where High Court upheld Tribunal's order holding that activity carried on by assessee to advance computer communication in India in all aspects with a view to promote rapid nationwide development of sector and to promote technological growth of country was charitable in nature, SLP filed against said decision was to be granted
from www.taxmann.com Latest Case Laws http://bit.ly/2RjX6cV
from www.taxmann.com Latest Case Laws http://bit.ly/2RjX6cV
Thursday, January 10, 2019
ALP of corporate guarantee couldn't be determined on basis of bank guarantee
Bank guarantee commission not liable to sec. 194H TDS: Bombay HC
IT: Bank guarantee commission is not in nature of commission paid to an agent but it is in nature of bank charges for providing one of banking service and, thus, while making payment of bank guarantee commission, requirement of deduction of tax at source under section 194H would not arise
from www.taxmann.com Latest Case Laws http://bit.ly/2H5aXiL
from www.taxmann.com Latest Case Laws http://bit.ly/2H5aXiL
Sec. 80G approval couldn't be denied just because trust had spent insignificant amount during the year
IT: Where assessee-trust had claimed approval under section 80G(5)(vi), since neither Commissioner (Exemption) had recorded any finding nor revenue had brought to fore, any breach of conditions enumerated in clauses (i) to (v) of section 80G(5) by assessee, approval under section 80G(5)(vi) could not be denied merely because donations made by assessee-trust were of insignificant amount
from www.taxmann.com Latest Case Laws http://bit.ly/2CZmaNt
from www.taxmann.com Latest Case Laws http://bit.ly/2CZmaNt
Strict Bank Rules Force Changes in Diamond Trade Practices
RBI Assures It’s Ready to Help NBFCs if Needed
Payment Firms Look to Cash in on RBI’s Tokenisation Note
Central banks betting big on gold amid global uncertainty
IndusInd Bank´s net profit hit by ILandFS provisioning
Banks charging more interest on loans, NBFCs tell RBI guv
No reassessment on change of opinion that unutilized CENVAT credit was to be included in valuing closing stock
ITAT couldn't allow sec. 80-IB deduction without discussing on objection raised by AO
IT: Where Assessing Officer rejected assessee's claim for deduction under sec. 80-IB on ground that there was no net profit from eligible unit, Tribunal could not pass order allowing assessee's claim without discussing reason as assigned by Assessing Officer for rejecting assessee's claim
from www.taxmann.com Latest Case Laws http://bit.ly/2STuNi4
from www.taxmann.com Latest Case Laws http://bit.ly/2STuNi4
Sec. 68 additions justified as assessee failed to prove that sum deposited in bank was from sale of silver utensils
IT: Where assessee challenged addition made to its income under section 68 in respect of amount deposited in bank contending that said amount came from sale of wearing apparel and traditional silver utensils, since there was no evidence and material to establish sale or inheritance, etc., impugned addition made by authorities below was to be confirmed
from www.taxmann.com Latest Case Laws http://bit.ly/2FiRXeH
from www.taxmann.com Latest Case Laws http://bit.ly/2FiRXeH
Wednesday, January 9, 2019
Liaison Office in GE India rightly held as PE as it had authority to conclude contract on behalf of GE overseas
IT : Where assessee, U.S. company and a part of GE group, had set up a liasion office in India with permission of RBI to act as a communication channel, but survey conducted at LO's premises revealed that assessee was doing core marketing and sales activities, since GE carries out, i.e. manufacture and supply of highly specialized and technically customized equipment and the "core activity" of developing the customer (identifying a client), approaching that customer,
from www.taxmann.com Latest Case Laws http://bit.ly/2QwX2S0
from www.taxmann.com Latest Case Laws http://bit.ly/2QwX2S0
Delhi HC justified initiation of special audit of 'Patanjali Ayurveda' due to complexity in accounts
IT: Where Assessing Officer had carefully outlined salient aspects in accounts and returns of assessee that needed to be looked into and made impugned order directing special audit and assessee had not alleged any mala fides, impugned order directing special audit was justified
from www.taxmann.com Latest Case Laws http://bit.ly/2Rm1YhX
from www.taxmann.com Latest Case Laws http://bit.ly/2Rm1YhX
SC Seeks Details of CBDT Circular in Gandhis’ Case
Assets worth Rs. 6kcr detected under foreign blackmoney law
RBI sets up panel under Nilekani to boost digital payments
FINANCE MINISTRY TURNS DOWN SEBI PLAN TO DO AWAY WITH DRR
RBI asks banks to treat crisis-hit ILandFS loans as non-performing assets
Sum paid to Swiss Co. for testing services not taxable as FTS in absence of any transfer of technology
IT/ILT : Where assessee made payment to a Swiss based entity for testing services without deduction of tax at source, in view of fact that services were simply testing services which did not involve any transfer of technology, it was to be held that assessee did not have any tax withholding obligations from payments made to Swiss entity and accordingly there could have been no disllowance under section 40(a)(i) for non-deduction of tax at source under section 195
from www.taxmann.com Latest Case Laws http://bit.ly/2RCi7io
from www.taxmann.com Latest Case Laws http://bit.ly/2RCi7io
Govt. re-constitutes steering committee of National Foundation for Corporate Social Responsibility
Government constitutes steering committee of National Foundation for Corporate Social Responsibility (NFCSR) to prepare a roadmap, oversee the functioning and steer the activities of NFCSR for providing policy inputs and policy advocacy in the area of CSR. The NFCSR will continue to be housed and managed by the Indian Institute of Corporate Affairs which will provide logistics, managerial and secretarial support to the Steering Committee.
from taxmann.com News http://bit.ly/2RCC1tx
from taxmann.com News http://bit.ly/2RCC1tx
Pendency of suit over same matter between parties would be bar to grant relief under Cos. Act: HC
Tuesday, January 8, 2019
Cash-starved NBFCs, HFCs raise Rs 73,000 cr in Q3 by securitising SME loans
No sec. 40A(3) disallowance if it was mandatory to purchase material in cash to complete construction in time
IT : Where assessee developer made payments exceeding Rs. 20,000 for purchase of construction materials on bank holidays, since assessee being developer was bound to complete work in a time bound manner and construction activities were carried out continuously even during holidays, therefore, assessee was required to procure materials on public holidays to avoid break in process of construction, said payments could not be disallowed under section 40A(3)
from www.taxmann.com Latest Case Laws http://bit.ly/2Fi0uxM
from www.taxmann.com Latest Case Laws http://bit.ly/2Fi0uxM
Good Credit Growth to Help Banks’ Nos
RBI KYC Deadline may Punch a Hole in Wallet Cos’ Plans
Grocery Brands Fear New Ecomm Rules may Upset their Growth Cart
Centre could raise sugar MSP 10% to Rs 32 a kilo, but there is a caveat
MSMEs demand a time period for loan sanctions and relaxed norms
Centre likely to allow oil PSUs to bring in private players
NCLT to decideon Essar Steel Asia´s bid by month end
Direct tax collection rises 13.6% to Rs 7.43 trn in Apr-Dec, refunds up 17%
Reassessment valid if it was found on examination of special audit report that bogus exp. was claimed; SLP dismissed
IT: SLP dismissed against High Court ruling that where on examination of special audit report, filed after passing of original assessment order, it was found that claims made by assessee towards placement fees paid to its subsidiaries, advertisement expenses and donations paid to a charitable trust under section 80G were prima facie bogus as assessee could not substantiate their genuineness by providing relevant documents and evidences, reassessment notice on basis of said report was justified
from www.taxmann.com Latest Case Laws http://bit.ly/2SIcJrh
from www.taxmann.com Latest Case Laws http://bit.ly/2SIcJrh
ALP of warranty exp. couldn't be taken as nil merely on ground that there was no need to incur said exp.
IT/ILT-I: Where assessee reimbursed expenses incurred by its AE on providing warranty services, however, TPO determined ALP of said charges at nil on ground that there was no need to incur said expenses, since necessity of incurring expenses is beyond scope of tax authorities, impugned order passed by TPO was to be set aside
from www.taxmann.com Latest Case Laws http://bit.ly/2QwIrWu
from www.taxmann.com Latest Case Laws http://bit.ly/2QwIrWu
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