MCA issues guidelines for funding for research studies on Corporate Governance

The Ministry of Corporate Affairs (MCA) has issued guidelines for funding for research studies on Corporate Governance. The primary objective of the scheme is to better utilise the repository of corporate sector data available with the Ministry under the MCA21 e-governance system, explore and expand the scope of utilization of MCA-21 Database, formulate research studies.

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Sum paid as guarantee money to PILCOM taxable though it wasn’t connected to cricket matches played in India: SC

INCOME TAX: Appellant Committee (PILCOM) was formed by Cricket Control Boards/Associations of three countries viz. Pakistan, India and Sri Lanka, for purpose of conducting World Cup Cricket tournament for year 1996 in these three countries

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194463/sum-paid-as-guarantee-money-to-pilcom-taxable-though-it-wasn’t-connected-to-cricket-matches-played-in-india-sc.aspx

AO can withhold Vodafone’s refund without processing ITR till AY 2017-18; SC affirms HC’s ruling

INCOME TAX: In respect of assessment years ending on 31-3-2017 or before, if a notice was issued in conformity with requirements stated in section 143(2), it would not be necessary to process refund under section 143(1); insofar as returns filed in respect of assessment years commencing on or after 1-4-2017,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194462/ao-can-withhold-vodafone’s-refund-without-processing-itr-till-ay-2017-18-sc-affirms-hc’s-ruling.aspx

Drawings & specifications imported for post-importation activities not to be included in value of imported goods: SC

GST/EX/ST/VAT: Where Steel Authority of India Limited entered into a contract with overseas consortia for import of certain items and as per contract, consortia was to supply equipments as well as certain basic designs and specifications, since, subject drawings and specifications did not relate to equipments imported and was meant for post importation activities and there was no condition laid down that import of equipments were to be supplemented by post-importation work,

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No additions u/s 153A if no new & incriminating material was found post assessment search

INCOME TAX : Where assessee had already filed original return of income accompanied with Profit and Loss Account, Balance Sheet and such assessment had completed prior to date of search and no assessment was abated, as no new/incriminating material was unearthed during course of search, no addition could be made u/s 153A

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Jewellery with purchase proof not to be included while calculating permissible limit as set by CBDT’s instruction

INCOME TAX : If acquisition of jewellery is explained with proof, said quantity to be allowed separately over and above weight of jewellery allowed in CBDT Instruction No. 1916, dated 11-5-1994

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193823/jewellery-with-purchase-proof-not-to-be-included-while-calculating-permissible-limit-as-set-by-cbdt’s-instruction.aspx

No timeframe to be imposed for goods taken from carrier for being delivered to carrier for inter-state sale: SC

GST: As a condition of giving benefit of Section 6(2) of Central Sales Tax Act, 1956, tax authorities cannot impose a limit or timeframe within which delivery of respective goods has to be taken from a carrier when goods are delivered to a carrier for transmission in course of inter-state sale. Thus, circulars providing that retention of goods by transporter beyond time stipulated i.e., 30 days would imply that constructive delivery of goods has been made by transporter to consignee were invalid

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Sum received from other partners for reduction in profit-sharing ratio not taxable as capital gains

INCOME TAX : Compensation received by a partner from other existing partners for reduction in profit sharing ratio would not tantamount to Capital Gains chargeable to tax under section 45(1)

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Medical Oxygen IP & Nitrous Oxide IP are medicines covered entry 88 of APVAT Act, 2005

EX/ST/VAT/ANDHRA PRADESH VAT ACT: Medical Oxygen IP and Nitrous Oxide IP are medicines used for or in the diagnosis, treatment, mitigation or prevention of any disease or disorder in human being falling within ambit of section 3(b)(1) of Drugs and Cosmetics Act, 1940 and are consequently covered under entry 88 of Schedule IV of the Andhra Pradesh Value Added Tax Act, 2005 and rate of tax to be levied on them is 4 per cent/5 per cent

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No disallowance of bad debts written off merely because notice couldn’t be served upon to a few random debtors

INCOME TAX : Where assessee had written off certain amount against irrevocable debts, since assessee had placed on record complete details of all debtors, merely because notice could not be served upon randomly selected six debtors, same could not a ground to disbelieve existence of all debtors so as to consider them as bogus, thus, impugned amount was to be allowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193918/no-disallowance-of-bad-debts-written-off-merely-because-notice-couldn’t-be-served-upon-to-a-few-random-debtors.aspx

ITAT dismissed stay of demand appeal as assessee failed to prove financial difficulties faced by it

INCOME TAX : Demand consequent upon addition made under section 68 could not be stayed where no case had been made by assessee for stay of demand on all grounds of prima facie case, balance of convenience, irreparable loss and financial difficulties

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Gain to Co. arising from sale of agricultural land not taxable under MAT provisions: ITAT

INCOME TAX : Gain arising to a company from sale of agricultural land could not be taxed under section 115JB

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​Corrigendum to Circular No. 9/2020 regarding Further clarification on provisions of the Direct Tax Vivad se Vishwas Act, 2020

Publish Date : Monday, April 27, 2020

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​Order under section 119 of the Income-tax Act, 1961 regarding reporting requirement under clause 30C and clause 44 of the Form 3CD

Publish Date : Friday, April 24, 2020

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Deposit in partner’s capital a/c can’t be subject to sec. 68 additions in hands of firm: HC

INCOME TAX: Where partners of assessee-firm were all identifiable and separately assessed to tax and they had shown sufficient agricultural income in their personal returns of past years which had been accepted by department as such, source of investment by those partners in assessee firm having been explained, no addition could be made in hands of firm

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194434/deposit-in-partner’s-capital-ac-can’t-be-subject-to-sec-68-additions-in-hands-of-firm-hc.aspx

Assessee couldn’t be termed as mutual concern if one member was controlling interests of others members

INCOME TAX: Where assessee was incorporated with approval of Secretariat for Industrial Assistance for purpose of economisation of cost of advertising and promotion of member companies, to be operated on a non-profit basis on principles of mutuality but it accepted contributions both from members and non-members and one member was vested with powers to control functioning and interests of other members,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194422/assessee-couldn’t-be-termed-as-mutual-concern-if-one-member-was-controlling-interests-of-others-members.aspx

RBI announces Rs 50,000 crore liquidity facility to ease pressure on mutual funds

In order to ease liquidity pressures on mutual funds, the Reserve Bank of India has announced a Special Liquidity Facility of 50,000 crore for Mutual Funds. Under this facility, the RBI will provide funds to banks at lower rates and banks can avail of funds for exclusively meeting the liquidity requirements of mutual funds.

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Subsequent notifications did not take away any vested right conferred under earlier notifications:SC

EX/ST/VAT: Where Government of India announced an Incentive Scheme for setting up New Industries in earthquak hit Kutch district by issuing Exemption Notification No. 39/2001-CE, dated 31.07.2001 and subsequently with intention to provide excise duty exemption only in respect of genuine manufacturing activities carried out in these areas, issued Notification No. 16/2008-CE, dated 27.03.2008 which did not take away any vested right conferred under earlier notifications/policies,

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SC upholds constitutional validity of Sec. 43B allowing deduction of leave encashment on payment basis

INCOME TAX: An employer seeking deduction from tax liability in advance, in name of discharging the liability of leave encashment, without actually extending such payment to employee and when time for such payment arises upon retirement (or otherwise) of employee, employer may simply refuse to pay. It is this mischief clause (f) of section 43B seeks to subjugate; thus, same is constitutionally valid

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Bank is under legal obligation to handover original documents to appellant after completion of auction sale: SC

FEMA, BANKING & INSURANCE : Where auction sale stood concluded and followed by issuance of sale certificate in favour of appellant being highest bidder, Bank was under legal obligation to handover title deeds or original documents to appellant for completion of formalities of sale, hence, DRT ought to have allowed application filed by Bank for return of original documents

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Humanitarian Act of ITAT; Stayed demand recovery so that salaries could be paid during COVID-19

INCOME TAX: Where assessee-builder had already paid his entire tax liability, in view of Covid 19 pandemic, a stay on collection/recovery of outstanding demands relating to interest and penalty was to be granted on condition that amount available to assessee would first be used for making payments of wages/salaries payable to labourers/employees and balance amount would be used for purpose of carrying out construction activity in partially completed building as necessary for providing quarantine

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IRDAI issues report on obligation of Insurer in respect of Motor Third Party Insurance business

The IRDAI has issued report of the working group to revisit the IRDAI (obligation of insurer in of motor third party insurance business), regulations, 2015 wherein procedure, formula and recommendations have been discussed.

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SLP filed having low tax effect was to be dismissed as withdrawn: SC

INCOME TAX : SLP dismissed as withdrawn due to low tax effect against High Court ruling that ALV of flats built by assessee, engaged in construction business, lying unsold, is assessable as income from house property

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Petitioner was allowed to operate bank accounts attached for recovery subject to setting aside a sum of Rs. 5 lakh

Income Tax: Where during pendency of appeal along with stay application, revenue authorities issued notices for recovery and had attached bank accounts of petitioners, in view of prevailing COVID-19 pandemic in country, interest of justice would be sub-served by directing banks of petitioners to allow petitioners to operate bank accounts subject to bankers' of petitioner setting aside a sum of Rs. 5 lakhs

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HC allows petitioners to operate attached bank accounts after setting apart demand amount in separate FD A/c

Income Tax : Where during pendency of appeal along with stay application, revenue authorities issued notices for recovery and had attached bank accounts of petitioners, as an interim measure given COVID-19 pandemic situation in country, banks of petitioners were to be directed to allow petitioners to operate bank accounts subject to bankers' of petitioner setting aside amount demanded in recovery notice

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Sec. 68 additions to be deleted if assessee offered explanation on cash credit during penalty proceedings: SC

INCOME TAX: Where Assessing Officer during assessment for assessment year 1998-99 made additions of Rs. 2.26 lakhs to income of assessee treating said amount as cash credits under section 68 as said credits were shown in name of 15 persons and no proof/evidence had been produced by assessee with respect to income of creditors and source of income, however,

from www.taxmann.com Latest Case Laws https://ift.tt/2xNZ64Q

Sum paid towards ‘toll free telephone charges’ amounts to royalty; liable for Sec. 194J TDS

INCOME TAX : Where assessee made payments towards toll free telephone charges for toll free telephone number provided by telecom operators whereby charges for calls made by consumers to toll-free number were borne by assessee, payment made by assessee for such services amounted to royalty under section 9(1)(vi) and assessee was liable to deduct TDS under section 194J on same

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194010/sum-paid-towards-‘toll-free-telephone-charges’-amounts-to-royalty-liable-for-sec-194j-tds.aspx

SEBI proposes to relax norms on pricing of preferential issues in Companies having stressed assets

The SEBI has observed that listed companies facing financial stress are generally in need of fund infusion to tide over the stress situation. Such listed companies face certain difficulties in raising capital through the conventional means. Moreover, listed cos. having “stressed assets” experience progressive fall in their share price. Therefore, SEBI has issued consultation paper on pricing of Preferential Issues and exemption from open offer for acquisitions in Cos. having Stressed Assets.

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Govt. brings ordinance to protect health workers against violence, prescribes 7 yrs jail for attacki

The Government has brought an ordinance to end violence against health workers. Any violence against health worker will carry imprisonment for a period of 6 months to 7 years if found guilty. The Government has amended the Epidemic Disease Act, 1897, and now assaults on healthcare workers will be considered as cognizable and non-bailable offence.

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Bombay HC quashes SFIOs complaint against Deloitte, upheld Constitutional validity of S. 140(5) of Cos. Act

Company Law: Section 140(5) does not violate Article 14 of Constitution by singling out CAs for a harsher treatment while leaving out Directors of Company or its office bearers; it neither allows pick and choose between CAs and Directors of Company or its office bearers nor is it arbitrary as it contains procedural safeguards

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No additions merely on assumptions that cash deposited by assessee was bribe received by him in ‘Vyapam case’

INCOME TAX: Where Assessing Officer made certain addition as unexplained credit under section 68 which was amount of cash deposited in bank account held in name of assessee, since said cash deposit was maturity proceeds of hundis during year which were made out of unaccounted surrendered income offered to tax in return of income for impugned assessment year,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194377/no-additions-merely-on-assumptions-that-cash-deposited-by-assessee-was-bribe-received-by-him-in-‘vyapam-case’.aspx

MCA extends timeline for Name Reservation and Re-submission for Cos. and LLP’s due to COVID-19 pande

In view of the situation arising due to COVID-19 pandemic , the Ministry of Corporate Affairs (MCA) has extended timeline for Name Reservation and Re-submission for Companies & LLP’s by 20 days. As per norms, e-form INC-4 –Application for Name Change (to be filed within 60 days) now, names expiring any day between 15.03.2020 to 03.05.2020 would be extended by 20 days beyond 03.05.2020, clarifies MCA

from taxmann.com News https://www.taxmann.com/topstories/222330000000020632/mca-extends-timeline-for-name-reservation-and-re-submission-for-cos-and-llp’s-due-to-covid-19-pandemic.aspx

Assessee created under Gujarat TPUD Act developing area of State in phased manner held as charitable activities

INCOME TAX : Where assessee, a regulatory body, was created under Gujarat Town Planning and Urban Development Act, 1976 for proper development of specified area in State in a phased and planned manner, preparation and implementation of development measures, surveying for development of areas and land acquisition, managing urban development schemes, working for water systems, sewage and other facilities and services,

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​Clarifications on provisions of the Direct Tax Vivad se Vishwas Act, 2020​

Publish Date : Wednesday, April 22, 2020

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HC restrains invocation of bank guarantee till one week post-date of lockdown i.e., 03-05-2020

Company Law/Arbitration Act: Where petitioner filed petition under section 9 of Arbitration Act seeking interim protection by way of restraining respondent from invoking bank guarantee issued in its favour for contract entered between petitioner and respondent for integrated development of fields,

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Sum paid to cab owners for hiring cabs to provide transportation services to customers liable for Sec. 194C TDS

INCOME TAX: Where assessee hired cabs from cab owners and provided transportation services to its customers and made payments to these cab owners on account of hire charges from amount received by it from its customers, assessee was entitled to deduct TDS on said payment under section 194C

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Undisclosed cash receipt was allowed to be telescoped against the hundi loans given by assessee: ITAT

INCOME TAX: When there was a maturity of hundi as well as investment in hundis normal corollary would be that amount invested was out of money received from maturity of hundis; telescoping of maturity amount being undisclosed cash receipts from undisclosed hundi loans was to be allowed

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Sec. 142A couldn’t be invoked to determine FMV of land without assigning reasons for rejecting declared value

INCOME TAX : Power to make reference under section 142A is restricted to matters concerning sections 69, 69A or 69B and since subject matter of examination in said sections is understatement in value of investments acquired during year, reference under section 142A could not have been made for finding out extent of alleged overstatement in value of investment

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000192689/sec-142a-couldn’t-be-invoked-to-determine-fmv-of-land-without-assigning-reasons-for-rejecting-declared-value.aspx

SEBI along with MCA proposes plans to permit the auditors of listed co. to operate from 20 April, 20

Considering it to be a difficult task on part of auditors and taking a note of recent Home Ministry notification exempting the certain categories of workers from central lockdown, the market regulator SEBI has written to Ministry of Corporate Affairs (MCA) to take up the matter of permitting the auditors of listed companies to operate from April 20, 2020 with the Ministry of Home Affairs.

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Sum received from tenant for not letting out vacant units of property is taxable as income from other source

INCOME TAX : Where assessee let out two units of its property and, further, entered into an option agreement with tenant with a covenant that other two units of property would not be let out to third party without consent of tenant for a period of 9 months and received a compensation for same, such amount received by assessee was assessable as income from other sources and not as income from house property

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MCA and SEBI seek essential service status for auditors of listed companies

In order to deal with matter related to auditor of listed companies, the market regulator, SEBI has written to the Ministry of Corporate Affairs to take up the matter of permitting auditors of listed companies to operate from April 20, 2020 with the Ministry of Home Affairs.

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Section 84A of the Gujarat VAT Act extending period of limitation of cases in VAT is constitutionally invalid: HC

EX/ST/VAT/Gujarat VAT Act: Section 84A of Gujarat VAT Act inserted with retrospective effect from 1-4-2006 is declared as ultra vires and beyond legislative competence of State Legislature under Entry 54 of List II of Seventh Schedule to Constitution of India and is also declared to be violative of Article 14 of Constitution of India on ground of being manifestly arbitrary, unreasonable and oppressive

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Income from sale of agricultural land was business income if assessee was dealing in sale/purchase of properties

INCOME TAX : Where assessee-firm, constituted for carrying on business of buying, developing and selling properties, purchased agricultural land and sold same after certain time, income derived on purchase and sale of agricultural land formed income from business

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No Sec. 10(23AA) relief to ‘State Army Wives Welfare Association’ as it wasn’t established by armed forces of union

INCOME TAX : State Army Wives Welfare Association, not being established by armed forces of union and income earned by it not being on behalf of any regimental fund or non-public fund established by armed forces of union, could not be allowed exemption under section 10(23AA)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193386/no-sec-1023aa-relief-to-‘state-army-wives-welfare-association’-as-it-wasn’t-established-by-armed-forces-of-union.aspx

Indexation benefit is available from year in which land acquired if capital gain tax was paid on its previous sale

INCOME TAX : Where a land owned by a company was revalued in year 2005-06 to market price and sold to assessee company during assessment year 2011-12 and capital gains tax on consideration was paid by said company and assessee had further revalued & aid land in financial year 2010-11 and sold said land in assessment year 2014-15, indexed cost of acquisition for purpose of calculating capital gain tax earued by assessee on sale of land was to be calculated from year 2011-12 and not from year 2004

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Govt. tweaks FDI norms; bars automatic investment in Indian Cos. from neighbouring countries

The DPIIT has amended the FDI norms due to COVID-19 pandemic to protect any opportunistic takeover by from China. In this regard, it has been specified that an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.

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Matter rightly remanded back to consider sworn statement of director of donee Co. to allow deduction of donation: HC

INCOME TAX: Where assessee claimed deduction under section 35(1)(ii) in respect of donation made to an organization and Assessing Officer based on statement of director that organization returned donation to assessee after deducting commission disallowed claim and Tribunal held that assessee was entitled to deduction, but it went further and based on statement of director remanded matter to Assessing Officer to ascertain means of assessee and actual amount paid and decide issue afresh,

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Penalty on receiving cash deposits justified if assessee hadn’t got registration to Act as banking or finance Co.

INCOME TAX : Assessee's contention of ignorance of provisions or lack of banking facilities in area, etc., could not be accepted as reasonable cause for accepting deposits in cash exceeding prescribed limit when admittedly assessee was doing large scale finance business dealing with public

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193411/penalty-on-receiving-cash-deposits-justified-if-assessee-hadn’t-got-registration-to-act-as-banking-or-finance-co.aspx

Delhi HC upheld ITAT's order allowing deduction for director's commission by following the principle of consistency

INCOME TAX : Where assessee, a private limited company, paid certain amount as commission and ex gratia to one of its directors, who was holding 24 per cent shares in company, and Assessing Officer invoking provisions of section 36(1)(ii) disallowed said amount and Tribunal deleted such disallowance on plea that identical expenditure stood allowed in preceding years as also in succeeding assessment years, order passed by Tribunal was correct

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RBI reduces reverse repo rate by 25 basis points from 4.0% to 3.75%

In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed rate reverse repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 4.0 per cent to 3.75 per cent with immediate effect. The policy repo rate remains unchanged at 4.40 per cent, and the marginal standing facility rate and the Bank Rate remain unchanged at 4.65 per cent.

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RBI reduces reverse repo rate by 25 basis points from 4.0 per cent to 3.75 per

In order to encourage banks to deploy these surplus funds in investments and loans in productive sectors of the economy, it has been decided to reduce the fixed rate reverse repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 4.0 per cent to 3.75 per cent with immediate effect. The policy repo rate remains unchanged at 4.40 per cent, and the marginal standing facility rate and the Bank Rate remain unchanged at 4.65 per cent.

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Property acquired prior to commission of scheduled offence or introduction of PMLA cannot be attached

FEMA, Insurance and Banking: Property acquired prior to commission of scheduled offence i.e. criminal activity or introduction of PMLA cannot be attached unless property obtained or acquired from scheduled offence is held or taken outside country.

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Seeking benefit of ‘Direct Tax Dispute Resolution Scheme, 2016’ after delay of more than 3 years not allowed: HC

INCOME TAX : Where instant petition filed by assessee seeking benefit under Direct Tax Dispute Resolution Scheme, 2016, suffered from laches/delay of more than 3 years, same was to be dismissed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000191205/seeking-benefit-of-‘direct-tax-dispute-resolution-scheme-2016’-after-delay-of-more-than-3-years-not-allowed-hc.aspx

ITAT was right in allowing deduction of commission paid to director following previous year assessments of assessee

INCOME TAX : Where assessee, a private limited company, paid certain amount as commission and ex gratia to one of its directors, who was holding 24 per cent shares in company, and Assessing Officer invoking provisions of section 36(1)(ii) disallowed said amount and Tribunal deleted such disallowance on plea that identical expenditure stood allowed in preceding years as also in succeeding assessment years, order passed by Tribunal was correct

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Schools running with no free education or scholarship were to be held established with profit motive: Madras HC

INCOME TAX : Where only source of income for schools run by assessee - trust was fees collected from students and no free education or scholarship was provided, such schools were to be held established with profit motive

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RBI notifies terms, conditions and procedural guidelines under Sovereign Gold Bond Scheme

The Government of India has vide its Notification No F.No4.(4)-B (W&M)/2020 dated April 13, 2020 announced the Sovereign Gold Bond Scheme 2020-21, Series I, II, III, IV, V, VI. Under the scheme there will be a distinct series (starting from Series I) for every tranche. Now, the Reserve Bank of India has issued terms & conditions for issuance of bonds and operational and procedural guidelines for guidance to the Receiving Offices

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RBI notifies terms and conditions and procedural guidelines under Sovereign Gold Bond Scheme

The Government of India has vide its Notification No F.No4.(4)-B (W&M)/2020 dated April 13, 2020 announced the Sovereign Gold Bond Scheme 2020-21, Series I, II, III, IV, V, VI. Under the scheme there will be a distinct series (starting from Series I) for every tranche. Now, the Reserve Bank of India has issued terms & conditions for issuance of bonds and operational and procedural guidelines for guidance to the Receiving Offices

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AO couldn’t insist Bank to remit tax dues of assessee until he disposed of application seeking stay on recoveries

INCOME TAX : Where Assessing Officer issued a notice to assessee's bank requiring it to remit income tax dues of assessee; whereas before issuing of impugned notice assessee had made an application to Assessing Officer seeking a stay on recoveries, Assessing Officer was to be directed to dispose of assessee's application expeditiously and until said application was disposed of, he would not insist upon compliance with impugned notice

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193904/ao-couldn’t-insist-bank-to-remit-tax-dues-of-assessee-until-he-disposed-of-application-seeking-stay-on-recoveries.aspx

Expert committee for valuation professionals submits report to FinMin along with draft ‘Valuers Bill

The Committee of Experts which was appointed to examine the need for an institutional framework for regulation and development of valuation professionals has presented this report to the Ministry of Finance, Government of India. The report is accompanied by a draft of ‘Valuers Bill, 2020

from taxmann.com News https://www.taxmann.com/topstories/222330000000020622/expert-committee-for-valuation-professionals-submits-report-to-finmin-along-with-draft-‘valuers-bill-2020’.aspx

MHA issues consolidated revised guidelines on measures to be taken for containment of COVID-19

The Ministry of Home Affairs (MHA) has released fresh guidelines for the COVID-19 lockdown, which has been extended till May 3. Additional public activities will be allowed from April 20, like agriculture, horticulture activities and procurement of the same. The guidelines mandate closing of some Central, State Government offices, commercial, private establishments, industrial establishments and all transport services.

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Provision of Sec. 194C not applicable if rights to sell, transfer & convey area of complex assigned to third party

INCOME TAX: Where assessee had entered into agreements with owners of land for construction of complex and it was to be allotted some area in complex and it was given full liberty to thereafter sell, transfer and convey area in favour of third party and it had assigned its rights in favour of one 'P', since neither assessee nor 'P' could be styled as contractors, section 194C was not attracted in subject case

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Kerala HC directed assessee to file additional memorandum of grounds as appeal filed by it was defective

INCOME TAX : Where assessee aggrieved by order of Assessing Officer filed appeal and stay petition before Commissioner (Appeals) and said authority dismissed appeal stating that appeal was defective and defects were not cured, assessee was to be directed to file additional memorandum of grounds of appeal as well as stay petition before Commissioner (Appeals), who would consider them and pass order on stay petition

from www.taxmann.com Latest Case Laws https://ift.tt/3a8LZrT

Service of allotment of specified area for extraction of minerals is classifiable under SAC 997337

GST : Where the Government had allotted specified areas to Garhwal Mandal Vikas Nigam (GMVN) to extract accessory minerals (sand, gravel, boulders) from the same and GMVN further allotted said work to the applicant against some consideration and GMVN is paying prescribed fee as royalty to the Government from said consideration, services rendered by GMVN to the applicant is covered under heading No 997337 under serial No. 257 of annexure appended to Notification No. 11/2017- Central Tax (Rate),

from www.taxmann.com Latest Case Laws https://ift.tt/2RzTnG6

Authority to consider assessee request of refund of IGST paid on exports but failed to mention in shipping bills: HC

GST/EXCISE/ST/VAT : Where assessee had exported goods after payment of IGST and it filed writ petition stating that Competent Authority was not responding to request with regard to sanction of refund of IGST paid in connection with goods exported, i.e., zero rated supply, said authority was to be directed to look into matter and take appropriate decision

from www.taxmann.com Latest Case Laws https://ift.tt/2RCiybd

HC upholds recovery proceedings against ‘Jindal Ltd’ as genuineness of loan transaction was in serious dispute

INCOME TAX : Where proof of identity of loan depositors, capacity of creditors to advance loans and genuineness of transaction was in serious dispute, assessee's writ challenging recovery and collection of tax was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194343/hc-upholds-recovery-proceedings-against-‘jindal-ltd’-as-genuineness-of-loan-transaction-was-in-serious-dispute.aspx

​Clarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No. 2) Act, 2019

Publish Date : Monday, April 13, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/2RvCaO3

​Clarification in respect of option under section 115BAC of the Income-tax Act, 1961

Publish Date : Monday, April 13, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/2xseJ1n

Re-Run of the Classical System of Taxing Dividends in the hands of Recipients, like the Re-Run of “t

Amid this unprecedented health emergency like situation, caused due to the unfortunate COVID-19 outbreak, it has become essential for all of us to remain safe within the confines of our homes, and in order to facilitate and encourage such confinement in our homes, the DD National has started the re-broadcasting of the classical epic of the 1987-88, “the Ramayana”, which has again become so popular among the masses, that the TRP of the Doordarshan Channel has again increased manifolds.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020619/re-run-of-the-classical-system-of-taxing-dividends-in-the-hands-of-recipients-like-the-re-run-of-“the-ramayana”.aspx

Equalisation levy - A smooth sail or rough waters

The International tax laws designed for ‘brick and mortar’ enterprises appear to have not kept-up with technology. The traditional nexus rules based on physical presence which helped to eliminate double taxation for tangible business models, have been found wanting with increased economic digitalization.

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MCA-21 Initiative Towards E- Governance & Ease of Doing Business

Ministry of Corporate affairs (MCA 21) is continuously working towards achieving the E-Governance Model. To strengthen Compliance Governance, Ministry is trying to set up E - Governance model with an aim to facilitate world class governance of corporates. MCA has taken various steps to transform regulatory environment for easy compliance.

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Validity of TDS Provision on Cash Withdrawals from Bank

In this write-up, an attempt has been made to find out whether the provisions contained in section 194N of the Income-tax Act, 1961 (the Act) providing for deduction of tax at source in respect of cash withdrawal from banks etc. is valid and permissible within the scheme of the Act or not.

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Supreme Court dismissed SLP as withdrawn due to low tax effect against HC’s ruling

INCOME TAX : SLP dismissed as withdrawn due to low tax effect against High Court ruling that where assessee had received share application money and produced documents to establish genuineness of parties such as PAN of all creditors along with confirmation, their bank statements showing payment of share application money, merely because those persons had not appeared before Assessing Officer would not negate case of assessee so as to invoke section 68

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193548/supreme-court-dismissed-slp-as-withdrawn-due-to-low-tax-effect-against-hc’s-ruling.aspx

Interpretation of the phrase “may be taxed”: Waiting for finality

One of the main purposes of a Double Taxation Avoidance Agreements (DTAA) is to avoid double taxation. This is made clear in the preamble, itself, which states that the treaty partner countries are entering in the agreement to avoid double taxation and to prevent fiscal evasion.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020607/interpretation-of-the-phrase-“may-be-taxed”-waiting-for-finality.aspx

Applicability of equalisation levy and section 194-O in an e-commerce transaction

The Finance Act, 2020 introduced a new Section 194-O in the Income-tax Act, 1961 (‘I-T Act’) to require an e-commerce operator to deduct tax at source from the sum paid or payable to the e-commerce participants. The Finance Act, 2020 also made amendments to the Chapter-VIII of the Finance Act, 2016 to extend the provisions of Equalisation Levy to the e-commerce supplies.

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TDS on Cash Withdrawals 194N – Clarifications Required on Crucial Issues

THE FINANCE ACT, 2020, received the assent of the President on the 27th March, 2020 substituted the following in place of the existing provisions of section 194N, which was introduced as a deterrent for cash transactions.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020602/tds-on-cash-withdrawals-194n-–-clarifications-required-on-crucial-issues.aspx

Withholding tax provisions applicable on shipping Co. to apply if payment is being made to agent of NR ship owner

INCOME TAX : Where assessee had paid export freight to a shipping agent of non-resident ship owner or charter without deduction of tax at source, provisions of section 172 would be applicable in instant case and provisions of section 194C or section 195 which provide for deduction of tax at source shall not be applicable

from www.taxmann.com Latest Case Laws https://ift.tt/3ebHikk

Retrospective operation of Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)

In our Last Article reported in (2019)108 Taxmann.com 235 (Article) the authors had discussed the concept of Benami Transactions, the amendments introduced by the Benami Transaction (Prohibition) Amendment Act, 2016 (BTP Amendment Act) w.e.f 01’st November 2016 and the possible legal challenges to the Amended PBPT Act (Act).

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Analysing MCA’s framework for conducting members’ meetings through audio-visual means

Under the Companies Act, 2013 (the Act), there is a provision for conducting board meeting through video-conferencing (VC) or other audio-visual means (OAVM). However, there is no provision under the Act that allows conducting of members meeting through VC or OAVM. In view of current extra-ordinary circumstances due to the pandemic caused by COVID-19 that requires social distancing, MCA has issued a framework for conducting members’ meeting through VC or OAVM.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020599/analysing-mca’s-framework-for-conducting-members’-meetings-through-audio-visual-means.aspx

HC directed AO to grant refund as there was no reason forthcoming from him for delayed processing of ITR

INCOME TAX : Where no reason was forthcoming from revenue for delay in processing refund claim of assessee and undue hardship was suffered by assessee only because tax authorities were not discharging their duties, tax authorities were directed to process return of income as expeditiously as possible and pay refund to assessee if any due

from www.taxmann.com Latest Case Laws https://ift.tt/3e6flKL

Operation Clean Money (OCM)/Demonetisation Cases & Vivad Se Vishwas Scheme 2020

To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand-rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016.

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Forwarding copy of notice to assessee after effecting recovery proceedings couldn’t be held as legal: HC

INCOME TAX : Mere forwarding of a copy of notice, after effecting recovery, will not in any way serve object underlying legislative intent in introducing sub-section (ii) of section 226(3)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193592/forwarding-copy-of-notice-to-assessee-after-effecting-recovery-proceedings-couldn’t-be-held-as-legal-hc.aspx

Commercial principles to be applied for adjustment of brought forward loss against current year inco

The aim of any businessman is to earn profits. However, if by misfortune or by any recession in worldwide economy or by any epidemic, the businessman incurs loss from his business, then he must have an opportunity to adjust this loss against his income in the current year against any other source of income which is not prohibited against such adjustment and should be permitted to carry this loss forward and adjust likewise in later years against income of that year.

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Understanding New Equalisation Levy & TDS on e-Commerce Transactions with Practical Illustrations

With the expansion of information and communication technology, the supply and procurement of digital goods and services have undergone exponential expansion everywhere, including India. The digital economy is growing at a faster rate than the global economy as a whole.

from taxmann.com News https://ift.tt/2Vgz1To

HC upholds constitutional validity of Sec. 234E imposing fee for late filing of TDS/TCS statements

A provision can be held unconstitutional only when the legislature was incompetent to bring out the legislation or that it offends some provision of the Constitution or when it is manifestly arbitrary. The Madras High Court held Section 234E is meant to ensure that assessee files the statement in time, so that the Department can process it without any delay. Nothing was shown as to how the Section was manifestly arbitrary for it to be struck down.

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CIT couldn’t cancel trust’s registration just by referring to amended provision of Sec. 2(15)

INCOME TAX: Power of cancellation of registration can be exercised by Commissioner, where Commissioner is satisfied that activities of trust or institution are not genuine or are not being carried out in accordance with objects of trust or institution and this process has to be initiated strictly in accordance with provisions under section 12AA(3)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193580/cit-couldn’t-cancel-trust’s-registration-just-by-referring-to-amended-provision-of-sec-215.aspx

Madras HC granted interim stay on demand subject to deposit of further sum by assessee

INCOME TAX: Where Assessing Officer had disallowed assessee's claim for exemption under section 10(38) and raised demand of Rs. 61.99 lakhs and Appellate Commissioner confirmed impugned order and Tribunal, on further appeal, dismissed stay petition of assessee, since assessee had already deposited a sum of Rs. 15.71 lakhs out of demand of Rs. 61.99 lakhs, he was to be directed to deposit a further sum of Rs. 15 lakhs and on such deposit there shall be an order of interim stay

from www.taxmann.com Latest Case Laws https://ift.tt/2xTKoc1

Govt. issues ordinance to cut salaries of MPs by 30% to meet exigencies arising out of Covid-19 pand

The Govt. has issued ordinance to amend Salary, Allowances & Pension of members of Parliament Act, 1954 whereby new sub-section has been inserted which states that the salary payable to members of parliament shall be reduced by 30% for a period of 1 year commencing from April 1, 2020 , to meet the exigencies arising out of Corona Virus pandemic.

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Delhi HC quashed reassessment initiated to treat unpaid loan as notional income under section 56

INCOME TAX : Where Assessing Officer sought to reopen assessment in case of assessee on ground that certain loan amount was outstanding and same was liable to be added to income of assessee as notional income under section 56, however, reasons were completely silent as to how provisions of section 56 were attracted in respect of outstanding liability of loan even if it remained unpaid and there being no material to justify reopening of assessment, proceedings were to be quashed and set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3eanQof

IRDAI issues FAQs on Settlement options under Unit Linked life insurance plans

Taking into account the volatility of markets and to protect the interests of policyholders, the IRDAI has allowed Life Insurance companies to offer settlement options to policyholders whose Unit Linked life insurance policies are maturing upto May 31, 2020. In order to answer various questions that may arise in the minds of policyholders as well as general public, Frequently Asked Questions have been issued.

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HC remanded matter to decide genuineness of exp. claimed as demurrages for delay in execution of projects

INCOME TAX : Where assessee was engaged in business of real estate development, etc. and it claimed project expenses under head demurrages for delay in execution of project to tune of Rs. 54 lakhs and Assessing Officer disallowed claim and Tribunal doubted genuineness of entry made in books of account by assessee to tune of Rs. 54 lakhs and confirmed order of Assessing Officer, since revenue had disputed genuineness of entry made in books of account,

from www.taxmann.com Latest Case Laws https://ift.tt/39YvnDj

Plea of considering criteria laid down by Circular not acceptable as it cannot have any primacy over Court’s ruling

INCOME TAX : Circulars issued by a Government department cannot have any primacy over decision of jurisdictional High Court, hence plea of assessee of considering criteria laid down by CBDT circular 133/6 of 2007 dated 9-5-2007 over ruling of High Court in Mavilayi Service Co-operative Bank Ltd. v. CIT 2019(2) KHC 287, while ascertaining whether a co-operative society is conducting banking business so as to dis-entitle it for deduction under section 80P(4) could not have been allowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193125/plea-of-considering-criteria-laid-down-by-circular-not-acceptable-as-it-cannot-have-any-primacy-over-court’s-ruling.aspx

ITAT rightly deleted sec. 68 additions as asseessee discharged its onus of proving credit worthiness of creditors: HC

INCOME TAX: Where first appellate authority had returned a clear finding of fact that assessee had discharged its onus of proving identity of creditors, genuineness of transactions and credit worthiness of creditors which finding of fact stood affirmed by Tribunal and revenue had not been able to show any perversity in aforesaid findings of fact by authorities below, Tribunal was right in holding that no addition could be made under section 68

from www.taxmann.com Latest Case Laws https://ift.tt/3aPi4pX

COVID 19: A Disruptive Virus

Coronavirus (COVID-19), a global pandemic has caused a massive disruption across the globe not only on the health and safety of the mankind but on the economy and commerce of the world. An unprecedented lockdown is likely to have an equally unprecedented impact on psychological impact on people and on businesses.

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When is the New Personal Tax Regime u/s 115BAC Beneficial? An In-depth Break-Even Point Analysis

The new FY 2020-21 corresponding to the AY 2021-22, has already started w.e.f 1.4.2020. So, it is very essential on our part to be equipped and ready with an informed, wise and timely decision concerning the opting or not of the new personal tax regime u/s 115BAC of the Income Tax Act, 1961.

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SC issues guidelines for functioning of Courts through video conferencing during Covid-19 pandemic

Faced with unprecedented and extraordinary outbreak of a pandemic, it is necessary that Courts at all levels respond to call of social distancing and ensure that Court premises do not contribute to the spread of virus. This is not a matter of discretion but of duty. Taking cognizance of the measures adopted by this court and by the High Courts and District Courts, it is necessary for this Court to issue directions by taking recourse to the jurisdiction conferred by Article 142 of Constitution.

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Applicability of the Finance Bill 2020 on travel companies

The Finance Bill introduced a new Section (194-O) which requires every e-commerce operator to deduct 1% as tax while making payment to ecommerce participant. The same needs to be deducted at the earlier of credit or payment to the ecommerce participant.

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SC issues guidelines for functioning of Courts through videoconferencing during Covid-19 pandemic

Faced with unprecedented and extraordinary outbreak of a pandemic, it is necessary that Courts at all levels respond to call of social distancing and ensure that Court premises do not contribute to the spread of virus. This is not a matter of discretion but of duty. Taking cognizance of the measures adopted by this court and by the High Courts and District Courts, it is necessary for this Court to issue directions by taking recourse to the jurisdiction conferred by Article 142 of Constitution.

from taxmann.com News https://ift.tt/2JMR2U1

Subsidy received for repayment of term loans undertaken for setting up new unit was non-taxable capital receipt

INCOME TAX: Where assessee received subsidy for repayment of term loans for technology upgradation undertaken for setting up new unit, said subsidy was towards capital stream and, consequently, was not taxable

from www.taxmann.com Latest Case Laws https://ift.tt/3bU0IIp

Analysis of tax issues arising in Joint Development of Property

Joint development is a popular method of development of property. Here, an owner of a site with (an) existing house(s) built on it and a builder/developer come together to enter into an arrangement to develop a property jointly. The land is provided by the owner. The developer provides his expertise and spends money in developing the project and the constructed flats are divided between them in a pre-determined way.

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Corona Crisis: Developments in Insolvency and Bankruptcy Laws to Save Debt-Laden Companies

The changing market dynamics, from crashing stock markets to restaurants, airlines and businesses shutting down, the Coronavirus (“Covid-19”) has hit almost every sector. The pandemic has not only caused global business disruption by halting the international trade, it has also caused major economic unrest affecting the small companies and organizations that were already struggling with financiers and creditors to repay their debts.

from taxmann.com News https://ift.tt/2JKfWDL

Gujarat HC quashes reassessment as there was no failure on part of assessee to disclose material facts

INCOME TAX : Where Assessing Officer completed assessment of assessee under section 143(3) and later reopened same for reason that income during year had escaped assessment and issued notice under section 148 beyond period of four years, since in facts of case there was hardly anything on record to indicate that there was failure on part of assessee to disclose truly and fully all material facts and also there was no tangible material available for purpose of issuing notice for reopening beyond

from www.taxmann.com Latest Case Laws https://ift.tt/3dVH0Oh

Double Taxation of Employer’s Contribution in NPS (National Pension Scheme) by the Finance Act, 2020

Contribution in NPS (National Pension Scheme) account of the employee is includible in the taxable income of an employee-assessee as ‘salary’ and even thereafter, by the Finance Act, 2020, an amendment has been made in the definition of ‘perquisite’ so as to include such contribution therein also in certain circumstances.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020571/double-taxation-of-employer’s-contribution-in-nps-national-pension-scheme-by-the-finance-act-2020.aspx

Offer of unsecured fully Convertible debentures couldn't be considered as private placement SAT

COMPANY LAW/SEBI : Where offer of unsecured Fully Convertible Debentures (FCDs) was made only to shareholders of company and none else, it was not a private placement

from www.taxmann.com Latest Case Laws https://ift.tt/2yDhoWp

Need to issue clarification for deduction of tax from salaries where employee opts for Section 115BA

The Finance Act, 2020 has inserted a new section 115BAC giving an option to individuals and HUF to opt for lower rate of tax and forgo various exemptions and deductions including standard deduction. This option can be exercised by such individual or HUF at the time of filing the return. However, this has created a dilemma for the employer who has to deduct tax at source under Section 192 on month to month basis at the average rate of tax computed on the basis of rates in force.

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MCA-CMS : Way of Dealing

In the year 2019, Ministry of Corporate Affairs has launched new monitoring system – ‘Ministry of Corporate Affairs-Compliance Monitoring System’ (‘MCA-CMS’), which is a step taken by the MCA towards the adoption of Artificial Intelligence and to deal with matters of non-compliance more effectively and expediently.

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ITAT allowed cash exp. incurred at quarry site as there was no banking facility available

INCOME TAX : Where expenses in cash were incurred by assessee at quarry site, where there was no banking facility they will be covered by clause (g) of rule 6DD and accordingly provisions of section 40A(3) shall not be applied to said expenses

from www.taxmann.com Latest Case Laws https://ift.tt/2UZcWsp

Rectification of Mistake - Some Issues

In Income Tax Act there are various section which are frequently being used by the assesse and assessing officer in their day to day working but still assesse and department is not consensus on various points of various section. Section 154 titled as “RECTFICATION OF MISTAKE” is also one of those section of the Income Tax act.

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Extension for Annual General Meeting- Does National Company Law Tribunal Have the power?

Annual General Meeting (AGM) a company has to conduct one within a time span of 6 from the closure of the financial year end and for the newly incorporated entities it is 9 months from the closure of their financial year.

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Intimation of defect in return : Whether a condition precedent u/s 139(9)

Section 139(9) of the Income Tax Act, 1961 inserted by the Finance Act (No.2) of 1980 with effect from 01st September, 1980 deals with the provisions pertaining to defective returns and the established procedure encompassing the remedial measure by virtue of which the defects so pointed out can accordingly be rectified by the assessee to the satisfaction of the assessing authority or the authority designated under the Centralized Processing of Return Scheme, 2011 duly notified in this regard.

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Relaxation of limitation period under Fiscal laws, a bold step towards fighting Corona Pandemic

With COVID-19 cases on the rise in India, the nation has started witnessing second-round effects of the virus spread: a complete halt to economic activity. Consequently, clampdowns are increasing both within and outside India, which would curtail consumer mobility and lead to deferral of spending. Business reducing for airlines, hotels, malls, multiplexes and restaurants, is foreseen. In the services sector,

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Supreme Court quashes reassessment notice as revenue failed to show non-disclosure of facts by NDTV

The Supreme Court has quashed reassessment notice issued on assessee-NDTV on reasoning that revenue has failed to show non-disclosure of facts by assessee. The Apex Court held that assessee had fully and truly disclosed all material facts necessary for its assessment and, therefore, the revenue cannot take benefit of the extended period of limitation.

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ICAI issues FAQs on ‘Company Fresh Start Scheme, 2020’

The Ministry of Corporate Affairs had issued a Circular 12/2020 dated March 30, 2020, in order to facilitate the companies registered in India to make a fresh start on a clean slate through fresh Scheme, 2020. In this regard, ICAI has issued FAQs on such scheme.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020559/icai-issues-faqs-on-‘company-fresh-start-scheme-2020’.aspx

ICAI revises FAQs on 'LLP Settlement Scheme, 2020'

In order to support and enable Limited Liability Partnerships (LLPs) registered in India to focus on taking necessary measures to address the COVID-19 threat and to reduce the compliance burden, the MCA made certain modifications to General Circular No 06/2020 dated March 04,2020 issued for LLPs. In this regard, the ICAI has also decided amend the FAQs issued for LLPs.

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TCS on Sale of Goods Section 206c(1H) - Judicial Review

Clause 84 Widening the scope of section 206C to include TCS on foreign remittance through Liberalised Remittance Scheme (LRS) and on selling of overseas tour package as well as TCS on sale of goods over a limit.

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Penalty to be levied only when it is proved that income was concealed or inaccurate particular was furnished: HC

INCOME TAX : Burden of proof in penalty proceedings vary from that in assessment proceedings and findings in assessment proceedings would not automatically be adopted in penalty proceedings; in penalty proceedings revenue authorities have to arrive at independent finding related to 'concealment of income' or 'inaccurate particular'

from www.taxmann.com Latest Case Laws https://ift.tt/3dP3ali

Bombay HC quashes order proposing conduct of special audit as AO didn't give hearing opportunity to assessee

INCOME TAX : Assessing Officer is required to give pre-decisional hearing to assessee before making order proposing conduct of special audit under section 142(2A); in absence of pre-decisional hearing decision to have special audit would be invalid

from www.taxmann.com Latest Case Laws https://ift.tt/2X5ieFC

Companies (Amendment) Bill, 2020: Delegation, Relaxation and Decriminalization

Last year, the Government of India constituted the Company Law Committee comprising representatives from Ministry, industry chambers, professional institutes and legal fraternity to examine and make recommendations on various provisions and issues pertaining to implementation of the Companies Act, 2013 [Order F.NO. 2/1/2018-CL-V dated 18 September 2019].

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SEBI extends timelines for submission of public comments on four consultation papers

The market regulator, SEBI had issued various consultation papers for public comments. Due to Covid -19 pandemic, the timelines for submission of public comments for the consultation paper has been extended to April 30, 2020.

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The Personal Data Protection Bill, 2019: India’s Data Protection regime

Most people in India haven't accessed the web through a computer. In fact, their encounter with the web is merely through smartphones. As India’s consumers lap Internet services, social media and other apps, they gladly submit their personal details to service providers in exchange for free of charge use of their services. And these details are usually stored on servers outside India’s boundaries, which worried the govt of India.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020553/the-personal-data-protection-bill-2019-india’s-data-protection-regime.aspx

Penalty to be levied only when it is proved that ‘income concealment’ or ‘inaccurate particular’ was furnished: HC

INCOME TAX : Burden of proof in penalty proceedings vary from that in assessment proceedings and findings in assessment proceedings would not automatically be adopted in penalty proceedings; in penalty proceedings revenue authorities have to arrive at independent finding related to 'concealment of income' or 'inaccurate particular'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193127/penalty-to-be-levied-only-when-it-is-proved-that-‘income-concealment’-or-‘inaccurate-particular’-was-furnished-hc.aspx

Bombay HC quashes order proposing conduct of special audit as AO did give hearing opportunity to assessee

INCOME TAX : Assessing Officer is required to give pre-decisional hearing to assessee before making order proposing conduct of special audit under section 142(2A); in absence of pre-decisional hearing decision to have special audit would be invalid

from www.taxmann.com Latest Case Laws https://ift.tt/2JyMRLo

Government provides relief for third party Motor Insurance & Health policy holders in the light of C

Government provides relief for third party Motor Insurance & Health policy holders in the light of COVID-19 lockdown

from taxmann.com News https://ift.tt/2UyR0pc

COVID-19: Impact on M&A deals

Although it began as another epidemic such as the 2009 H1N1 flu pandemic and the 2013 Western Africa Ebola virus, the impact of COVID-19 has rippled around the world, affecting the supply chains of major industries. Business leaders across the globe are struggling to predict and accurately assess the impact of COVID-19 on their businesses, market situations and people.

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Ordinance 2020: Deduction under Section 80G in respect of contribution to ‘PM CARES Fund’

The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) has been set up by the Central Government on 28-03-2020 following the COVID-19 pandemic in India. The fund will be used for combating the Coronavirus outbreak and similar pandemic like situations in the future. To encourage donations to PM CARES Fund, the Government has amended Section 80G to provide 100% deduction in respect thereof.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020548/ordinance-2020-deduction-under-section-80g-in-respect-of-contribution-to-‘pm-cares-fund’.aspx

Ordinance 2020: New due dates for compliances under the Income-tax Act

Amid COVID-19 outbreak, the Finance Minister held a press conference to announce various measures to address the concerns relating to statutory and regulatory compliance. To give effect to such announcement, the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 has been promulgated by the President of India. In this article, we have tried to explain all the impact of this Ordinance and the revised due dates for most common compliances.

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Ordinance 2020: New interest rates on delayed payment of taxes

It has been provided in the Ordinance 2020 that any delay in payment of tax which is due for payment from 20-03-2020 to 29-06-2020 shall attract interest at the lower rate of 0.75% for every month or part thereof if same is paid after the due date but on or before 30-06-2020.

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Ministry of Finance issues FAQs on RBI’s moratorium on EMI

Last week, the Reserve Bank of India has announced a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities. Now, The Indian Banks Association has answered a list of Frequently Asked Questions about the technicalities of the moratorium.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020543/ministry-of-finance-issues-faqs-on-rbi’s-moratorium-on-emi.aspx

Article 142, A Kamadhenu - from which unlimited powers “should” flow to the Supreme Court

The government has been critical & unappreciative of the hon’ble Supreme Court, being granted by the Constituent Assembly (ie the framers & founding fathers of the Constitution) wide powers “to do complete justice”, vide Article 142 of the Constitution. It requires the Supreme Court to restrict itself to the existing law; it recommends imposition of checks and balances;

from taxmann.com News https://www.taxmann.com/topstories/222330000000020542/article-142-a-kamadhenu-from-which-unlimited-powers-“should”-flow-to-the-supreme-court.aspx

HC directed ITAT to consider assessee’s application seeking leave to produce additional evidence

INCOME TAX: Where Tribunal had treated certain amount expended by assessee as unexplained expenditure and it had not even considered assessee's application seeking leave to produce additional evidence at stage of appeal, Tribunal was to be directed to consider assessee's application and thereafter decide appeal

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193701/hc-directed-itat-to-consider-assessee’s-application-seeking-leave-to-produce-additional-evidence.aspx

Procedure to be adopted when NRI is the seller/transferor of a residential property/land

Non-resident Indians (NRIs) by and large want to discharge their tax liabilities on time but sometimes either the NRIs or purchasers of properties from them land themselves at the receiving end not entirely for fault on the part of either of them.

from taxmann.com News https://ift.tt/3dE5hZ4

Scheme of Arrangement - Power of the ‘sanctioning court’

Power of the sanctioning court in the Scheme of Arrangement was again discussed in the recent case of Joint Commissioner of Income Tax (OSD), Circle (3)(3)-1, Mumbai v. Reliance Jio Infocomm Ltd. In the light of the recent decision, an academic analyses is made on authority/jurisdiction of the sanctioning court in an application for approving the scheme of arrangement.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020539/scheme-of-arrangement-power-of-the-‘sanctioning-court’.aspx

Suspension of sentence stands vacated due to non-compliance of condition of deposit stipulated under NI Act

FEMA, BANKING & INSURANCE : Court which has suspended sentence on a condition can very well hold that suspension of sentence stands vacated due to non-compliance of condition of suspension

from www.taxmann.com Latest Case Laws https://ift.tt/2w4hDZH

Govt. brings Ordinance to extend various time limits under Taxation and Benami Acts

In order to give effect to the announcement made the Finance Minister on statutory and regulatory compliance matters across sectors due COVID-19 outbreak, the Govt. has brought in an Ordinance which provides to extension of various time limits under the Taxation and Benami Acts. The Ordinance allow amends section 80G of Income-tax Act to allow 100% deduction if donation made towards PM CARES Fund.

from taxmann.com News https://ift.tt/3dGOq8d