RAHUL SHARMA: May 2020

Sunday, May 31, 2020

Income-tax (12th Amendment) Rules, 2020

Publish Date : Friday, May 29, 2020

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Saturday, May 30, 2020

Sale proceeds on sale of rubber trees and timber cannot be brought to tax under Rule 7A

INCOME TAX : Rule 7A talks about computation of income derived from sale of centrifuged latex or cenex or latex based crepes, etc; said rule does not talk about taxability of income from sale of old rubber trees - Thus, sale proceeds on sale of rubber trees and timber cannot be brought to tax under Rule 7A of I.T. Rules

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HC quashes order of MSME Council for reference of Indian Oil Corporation Ltd.’s matter to arbitration

COMPANY LAW/MSMED ACT : Where petitioner IOL terminated contract awarded to respondent as it entered into sub-contract without prior consent of petitioner in contravention of terms of contract and pursuant to an application filed by sub-contractor Council constituted under MSME Development Act, 2006 referred matter to arbitration, it was held that there was no privity of contract between petitioner and sub-contractor and, therefore, there was no liability of petitioner to make payment to sub-con

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194627/hc-quashes-order-of-msme-council-for-reference-of-indian-oil-corporation-ltd-’s-matter-to-arbitration.aspx

HC couldn’t have reversed acquittal of convict u/s 138 without giving him an opportunity of hearing: SC

FEMA, BANKING & INSURANCE : Where appellant-accused did not appear in appeal before High Court in cheque bounce case, High Court should have taken assistance of amicus curiae; High Court erred in reversing acquittal of appellant without affording any opportunity to appellant

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000189151/hc-couldn’t-have-reversed-acquittal-of-convict-us-138-without-giving-him-an-opportunity-of-hearing-sc.aspx

On cheque dishonour, question of usage of blank cheque with wrongful intention was to be dealt only during trial: HC

FEMA, BANKING & INSURANCE : Where cheque issued to respondent-advocate by petitioner was dishonoured, question as to whether cheque was issued towards discharging legal liability of petitioner or respondent used blank cheque signed by petitioner with wrongful intention to be dealt only during trial and, thus, process issued to petitioner for offence under section 138 by Trial Court could not be interfered

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Friday, May 29, 2020

Income-tax (11th Amendment) Rules, 2020

Publish Date : Thursday, May 28, 2020

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Notification No. 28/2020 [F. No. 300196/16/2019-ITA-I] / SO 1658(E)

Publish Date : Wednesday, May 27, 2020

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Notification No. 27/2020 [F. No. 300196/26/2018-ITA-I] / SO 1659(E)

Publish Date : Wednesday, May 27, 2020

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No embargo to declare income under diff. head subsequently if it was declared under wrong head in prior year: ITAT

INCOME TAX : If either the assessee has offered income or the Assessing Officer in the earlier assessment year has assessed the income under particular head which originally was assessable under different head, i.e., capital gain even though the same was liable to be assessed under the head business or profession, then there is no embargo either on Assessing Officer or on the assessee to show income or loss under head business or profession in subsequent year.

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On cheque dishonour, question of usage of black cheque with wrongful intention was to be dealt only during trial: HC

Merely having common directors is not basis to suggest collusion in bidding process, rules CCI

COMPETITION LAW : Mere commonality of directors or ownership of participating firms, in itself, is not sufficient to record any primafacie conclusion about bid rigging in absence of any material indicating collusion amongst such bidders while participating in a tender. Thus, merely having common directors cannot be basis to suggest collusion in bidding process.

from www.taxmann.com Latest Case Laws https://ift.tt/2M8t335

A body substantially financed by Cos. owned by State Govt. is covered under definition of ‘public authority’: HC

COMPANY LAW : Section 2(h) would be applicable only if a body is owned, controlled or substantially financed, directly or indirectly by funds provided by appropriate Government; petitioners who were substantially financed by companies owned by State Government could be said to be covered by definition of 'public authority' under section 2(h)(d)(i)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194626/a-body-substantially-financed-by-cos-owned-by-state-govt-is-covered-under-definition-of-‘public-authority’-hc.aspx

CBDT notifies new Form 26AS; widen its scope to include info. received under DTAA/TIEA

The CBDT has notified new Rule 114-I which prescribes uploading of annual information statement in Form 26AS in the registered account of assessee. A new Form 26AS has been notified for reporting of information related to TDS/TCS, specified financial statements, payment of taxes, demand & refund, pending & completed proceedings & any info. in relation to sub-rule(2) of 114-I which includes info. received under agreement referred to in section 90 or 90A

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Thursday, May 28, 2020

Remuneration to be paid to an eligible Fund Manager under section 9A of the Income-tax Act, 1961

Publish Date : Wednesday, May 27, 2020

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Finance Minister formally launches facility for instant allotment of PAN through Aadhaar

The Finance Minister, Smt. Nirmala Sitharaman formally has launched the facility for instant allotment of PAN on May 28, 2020. The facility is available for those PAN applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar. The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost. Earlier, its ‘Beta version’ was started on e-filing website on 12 Feb 2020 on trial basis by the Dept.

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SetCom cannot accept calculations made by applicant without any deliberation: Madras HC

INCOME TAX : Where the revenue has challenged order passed by Settlement Commission on application filed by applicant on the ground that there was shortfall in payment of tax on admitted liability by applicant, since arithmetic of transactions disclosed before Settlement Commission do not add up and clearly shows that there were large scale suppressions resorted to by applicant and said calculations have been accepted without any deliberation by Settlement Commission, it is clear that applicant

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Mere extension of an agreement for appointment of distributor isn’t considered as unfair business practice: CCI

COMPETITION LAW : Informant alleged that OP-1 Directorate of State Lotteries appointed OP-2 as as sole and exclusive distributor/promoter of lotteries in State without inviting any public tender and such agreement was extended from time to time, while, in fact, OP-1 decided to float a tender long back, which came to be litigated before High Court and due to pendency of writ petition and other factors, tendering process could not be implemented, no case of contravention of provisions of Act was m

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194612/mere-extension-of-an-agreement-for-appointment-of-distributor-isn’t-considered-as-unfair-business-practice-cci.aspx

DOE’s direction to Govt. employees only to use services of Govt Cos. for booking air tickets didn’t violate S. 3(1)

COMPETITION LAW : Where Office memorandum was issued by DOE directing Government employees to exclusively utilize services of two Government companies for booking air tickets to exclusion of other travel agents, no contravention of section 3(1) could be alleged

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194607/doe’s-direction-to-govt-employees-only-to-use-services-of-govt-cos-for-booking-air-tickets-didn’t-violate-s-31.aspx

Appropriate officer to assess taxpayer is AO having jurisdiction over area in which business is carried on

INCOME TAX : Where assessee was residing at Madurai, Tamil Nadu prior to assessment year 2011-12 and no return of income was filed during his stay at Madurai as he had not earned any taxable income in that period and from assessment year 2010-11 onwards, assessee shifted to Shimoga, Karnataka, carrying on business there and returns of income were filed from assessment year 2012-13 till date at Shimoga, appropriate officer to assess assessee would be officer at Shimoga and not Madurai even though

from www.taxmann.com Latest Case Laws https://ift.tt/2M2V1wY

No sec. 271AAA penalty where assessee had admitted undisclosed income and discharged tax and interest thereon

INCOME TAX : Where Assessing Officer levied penalty under section 271AAA upon assessee company for not substantiating manner in which undisclosed income was earned, since director of assessee company had made statement that undisclosed income was earned out of booking/selling shops and assessee had also paid due tax along with interest on said income, impugned penalty was unjustified

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Appropriate officer to assessee taxpayer is AO having jurisdiction over area in which business is carried on

Compounding of offence u/s 276C(1) is permissible on payment of 100% of tax sought to be evaded: HC

INCOME TAX : Where assessee had filed an application for compounding of offence punishable under section 276C(1), compounding of offence under section 276C(1) would be permissible on payment of 100 per cent of tax sought to be evaded and not 100 per cent of amount sought to be evaded

from www.taxmann.com Latest Case Laws https://ift.tt/2M9jwZe

CBDT notifies certain entities for exemption under section 10(46)

The Central Board of Direct Taxes (CBDT) has notified ‘Cochin Special Economic Zone Authority’ and ‘Uttarakhand Environment Protection & Pollution Control Board’ for the purposes of the clause (46) of section 10 of the Income-tax Act, 1961.

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Wednesday, May 27, 2020

Circular No. 16/2019

Publish Date : Friday, August 7, 2020

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No abuse of dominant position by SBI-bank in e-auction process for realizations of secured assets: CCI

COMPETITION LAW : Where informant filed information alleging that it had taken secured loan from OP-1 bank and ,on account of its failure to repay said loan ,when it became NPA and, thus, while carrying out e-auction process ,officers of OP-1 bank had used their dominant position in collusion with other opposite parties in contravention of provisions of sections 3 and 4,which resulted in denial of market access of potential buyers ,

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AO rightly disallowed interest exp. as there was no commercial expediency to advance funds to sister concern

INCOME TAX : Where assessee had not led any evidence to show commercial expediency to advance funds to sister concerns and in addition to this, also failed to file cash flow statement to show that own funds were advanced to sister concerns, Assessing Officer had rightly disallowed interest expenses incurred on advancement of loans to sister concerns on account of commercial expediency

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HC remanded matter back to decide issue of allowing exp. incurred on website improvement by ‘Rediff.com’

INCOME TAX : Where Tribunal held that amount spent on improvement of website was revenue expenditure even though said project was later on abandoned, in view of fact that prima facie, there was no issue of abandonment of project Tribunal case law as that relied upon by Commissioner (Appeals), issue to be re-adjudicated

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000190761/hc-remanded-matter-back-to-decide-issue-of-allowing-exp-incurred-on-website-improvement-by-‘rediff-com’.aspx

Disputing stamp duty valuation adopted by AO first time before CIT(A) is valid: ITAT

INCOME TAX: Assessee had purchased immovable property and there was a difference of value as disclosed by assessee and adopted by Stamp Valuation Authority and assessee had not objected before Assessing Officer regarding valuation adopted by Stamp Valuation Authority but first time made objection before Commissioner (Appeals) regarding valuation of property. Whether since Commissioner (Appeals) has coterminous powers with Assessing Officer, he ought to have referred matter for valuation to Depar

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Exp. incurred on advertisement & publicity after getting ‘Film Certificate’ allowable as deduction u/s 37

INCOME TAX : Where invoking Rule 9A of IT Rule, Assessing Officer disallowed advertisement and publicity expenses incurred after date of certification of film, Tribunal was justified in allowing same by holding that amount not allowable under rule 9A may be allowed under section 37

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000190351/exp-incurred-on-advertisement-publicity-after-getting-‘film-certificate’-allowable-as-deduction-us-37.aspx

HC remanded matter back to decided issue of allowing exp. incurred on website improvement by ‘Rediff.com’

INCOME TAX : Where Tribunal held that amount spent on improvement of website was revenue expenditure even though said project was later on abandoned, in view of fact that prima facie, there was no issue of abandonment of project Tribunal case law as that relied upon by Commissioner (Appeals), issue to be re-adjudicated

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000190761/hc-remanded-matter-back-to-decided-issue-of-allowing-exp-incurred-on-website-improvement-by-‘rediff-com’.aspx

Tuesday, May 26, 2020

CCI dismisses complaint of alleged unfair business practices against Eicher Polaris and others

COMPETITION LAW : Informant had filed information against OP, manufacturer of a Personal/Multi Utility Vehicle i.e. MULTIX alleging violation of provisions of sections 3 and 4 on ground that genuine spare parts of MULTIX vehicles manufactured by OP as well as technological information, diagnostic tools and software programs required to maintain, service and repair such technologically advanced automobiles had not been made freely available in open market and same could only be carried out at wor

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DGFT could not deny advance authorization benefit provided by FTP on export of jewellery, gold medals & coins: HC

EXCISE & CUSTOMS : Where Foreign Trade Policy (2015-2020) expressly provides for advance authorization in case of export of items such as gold jewellery, including partly processed jewellery and articles including medallions and coins, act of Director General of Foreign Trade excluding 'Gold Medallions and Coins' or 'Any Jewellery manufactured by fully mechanized process' from benefit of advance authorization amounts to amendment of Foreign Trade Policy which was beyond its power,

from www.taxmann.com Latest Case Laws https://ift.tt/3d3Abth

No denial of Sec. 54B exemption if certificate issued by Revenue Dept. provided that sold land was agricultural land

INCOME TAX : Where assessee had furnished copy of agricultural income certificate issued by Department of Revenue of State Government as per concerned State's prescribed rules and regulations which evidenced that only agricultural income was derived from land sold, in absence of any challenge, presumption of correctness was to be attached with agriculture income and since assessee had purchased new agricultural land much prior to due date of filing return under section 139,

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

Co. and its directors can’t be prosecuted for cheque dishonouring after company has been declared as sick company

FEMA, BANKING & INSURANCE : Company and its directors can not be proceeded against for having committed an offence punishable under section 138 after company has been declared a sick company

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000189423/co-and-its-directors-can’t-be-prosecuted-for-cheque-dishonouring-after-company-has-been-declared-as-sick-company.aspx

Monday, May 25, 2020

Action of AO seizing ‘Cocaine’ during search proceedings valid though he wasn’t authorised person under NDPS Act

INCOME TAX : Where during Income-tax search and seizure proceedings, Assessing Officer stumbled upon contraband substance, it did not amount to seizure under Narcotic Drugs and Psychotropic Substances Act, 1985 and thus it could not be that search and seizure operation by officer was not empowered or authorized under NDPS Act and was without mandate of law

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194605/action-of-ao-seizing-‘cocaine’-during-search-proceedings-valid-though-he-wasn’t-authorised-person-under-ndps-act.aspx

No Sec. 54F relief if construction was done on residential house exclusively owned by father & not by HUF

INCOME TAX : Assessee claimed deduction under section 54F of Rs. 23.76 lakhs as said amount was stated to be incurred in construction of residential house, however, assessee himself explained that said house was owned by his father who inherited same through Will and there was a probate order from Court. Ownership of house through Will by father of assessee proves fact that such residential house was exclusively owned by father of assessee and not a HUF property.

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Sony India Pvt. Ltd. is not dominant in market of distribution and sale of car audio products in India: CCI

COMPETITION LAW : Where there were number of other competing players such as Pioneer, JBL, JVC, Kenwood, Bose, Panasonic etc., OP-Sony did not enjoy a position of strength, which enable it to operate independently of competitive forces prevailing in distribution and sale of car audio products in India or to affect its competitors or consumers or market in its favour and,

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Assessee liable to pay service tax only on service component of works contract: HC

EX/ST/VAT: In a case of works contract, component of gross turnover in respect of which assessee has paid taxes under local Act with which it is registered as works contractor is excluded from service tax. Thus, in a contract of retreading of tyres, it can not be said that there is no sale or deemed sale of parts or other materials used in the execution of the contract. As a result, in such a case, it is not the entire gross value of service rendered that is liable to service tax, but,

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Property attached under PMLA to be released when appellant undertook to pay alleged sum to ED and issued cheques

FEMA, BANKING & INSURANCE : Where proceedings under sections 5 and 8 had been initiated against appellant on ground that he and his family members were beneficiaries of certain value of proceeds of crime and accordingly provisional order of attachment was passed since appellant undertook to pay alleged sum to ED in installments and issued cheques also, attached properties of appellant to be released

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Appellant who was discharged from PMLA case should wait outcome of the SC’ order against SLP filed by ED

FEMA, BANKING & INSURANCE : Where a complaint was filed against appellant under PMLA and High Court discharged appellant from PMLA case since SLP filed by ED against High Court's order was pending before Supreme Court, Appellate Tribunal, PMLA should await outcome of order of Supreme Court

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000190638/appellant-who-was-discharged-from-pmla-case-should-wait-outcome-of-the-sc’-order-against-slp-filed-by-ed.aspx

Saturday, May 23, 2020

ITAT quashes ex-cricketer Srikanth’s tax planning; sale of shares by minor sons clubbed in his income

INCOME TAX : Where in a company assessee's minor sons held 99% shares and assessee held only 125 shares, when entire shareholding was sold, sale proceeds would belong to minor sons of assessee and same was required to be brought to tax by invoking provisions for clubbing income of minors

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194582/itat-quashes-ex-cricketer-srikanth’s-tax-planning-sale-of-shares-by-minor-sons-clubbed-in-his-income.aspx

Attachment order didn’t require any interference as appellant couldn’t prove that seized amount wasn’t untainted

FEMA, BANKING & INSURANCE: Where appellant had failed to discharge burden of proving that amount which was seized from his possession was not proceeds of crime or untainted amount as required under section 24, impugned provisional attachment order did not require any interference

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000186683/attachment-order-didn’t-require-any-interference-as-appellant-couldn’t-prove-that-seized-amount-wasn’t-untainted.aspx

Friday, May 22, 2020

RBI announces nine additional measures for strengthening the Economy

RBI announces nine additional measures for strengthening the Economy

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Notification No. 26/2020 [F.No.300196/9/2019-ITA-I] / SO 1563(E)

Publish Date : Thursday, May 21, 2020

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HC refuses to interfere with order of CCI of investigation against Mahyco Monsanto Biotech in sale of Bt. cotton seeds

COMPETITION LAW : Where CCI held that OP-MMBL held a dominant position in relevant market of provision of Bt. Cotton Technology in India as well as downstream market of manufacture and sale of Bt. Cotton seeds in India and ordered investigation against OP for charging excessive and unfair prices for Bt. Technology,

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ITAT restored Sec. 12AA registration of ‘VMRDA as it wasn’t engaged in commercial activities

INCOME TAX : Where assessee Visakhapatnam Metro Region Development Authority was a Government institution carrying out activities such as sale of lands by public auction, entering into joint development agreement for construction of commercial complexes, houses and malls for public utility services for furtherance of objects, and department did not place any material to show that assessee was engaged in commercial activity,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194378/itat-restored-sec-12aa-registration-of-‘vmrda-as-it-wasn’t-engaged-in-commercial-activities.aspx

It is doubtful if AA has power to extend freezing order for further 9 months u/s 17 of PMLA: Appellate Tribunal PMLA

FEMA, BANKING & INSURANCE: It was doubtful as to whether Adjudicating Authority had power to extend freezing order for a further period of 8 months in view of prescribed period of time stipulated in section 20

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Order of seizure under PMLA can’t be retained from date of seizure after expiry of 180 days unless extended by AA

FEMA, BANKING & INSURANCE : Order of seizure cannot be retained from date of seizure after expiry of 180 days unless said order of retention is extended by Adjudicating Authority

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000186111/order-of-seizure-under-pmla-can’t-be-retained-from-date-of-seizure-after-expiry-of-180-days-unless-extended-by-aa.aspx

Cabinet approves of additional fund of up to Rs. 3 lakh crores through 'Emergency Credit Line Guaran

To enable additional funding of up to Rs. three lakh crore to eligible MSMEs and interested MUDRA borrowers by way of “Emergency Credit Line Guarantee Scheme. Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. three lakh crore to eligible MSMEs and interested MUDRA for borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility,

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It is doubtful if AA has power to extend freezing order for further 9 month u/s 17 of PMLA: Appellate Tribunal PMLA

Thursday, May 21, 2020

Amendment of the Income-tax Rules, 1962 to provide for Safe Harbour Rules

Publish Date : Wednesday, May 20, 2020

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Revised FAQs on LLP settlement Scheme, 2020 and Cos. Fresh Start Scheme

The MCA has provided a one time opportunity to the LLPs and company to make their default good by filing pending documents. Now, the ICAI has revised the FAQs on LLP settlement Scheme, 2020 and Cos. Fresh Start Scheme

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Application for waiver of pre-deposit of part of penalty allowed as it would have caused undue hardship to appellant

FEMA/BANKING/INSURANCE: Where appellant had prima facie demonstrated that there had been no violations of provisions of FEMA, Rules, Regulations and Master Circular in respect of right to sell online ad space for Google and undue hardship would be caused to appellant if they were made to make a deposit of any part of penalty, waiver of pre-deposit of penalty amount to be granted

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HC sets aside tribunal’s impugned order as respondent couldn’t prove repayment of debt against cheques issued

FEMA, BANKING & INSURANCE: Where cheque issued to appellant for repayment of loan by respondent-accused was dishonoured and respondent failed to prove repayment of said loan subsequently, Trial court erred in holding that commission of offence under section 138 was not proved by appellant

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000187609/hc-sets-aside-tribunal’s-impugned-order-as-respondent-couldn’t-prove-repayment-of-debt-against-cheques-issued.aspx

Amendments to sec. 153C would apply to search initiated on or 01-06-2015; HC quashes notices issued for beyond 6 AYs

INCOME TAX: In case, notices under section 153C have been issued for assessment years beyond six assessment years, such notices would be without jurisdiction

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Wednesday, May 20, 2020

Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

Publish Date : Wednesday, May 20, 2020

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Cabinet approves modifications in the existing "Partial Credit Guarantee Scheme (PCGS)"

Cabinet approves modifications in the existing "Partial Credit Guarantee Scheme (PCGS)"

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Cabinet approves issuance of the Jammu & Kashmir Reorganisation (Adaptation of State Laws) Second Or

Cabinet approves issuance of the Jammu & Kashmir Reorganisation (Adaptation of State Laws) Second Order, 2020

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Govt. approves of Special Liquidity Scheme for NBFCs/HFCs to address their Liquidity Stress

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Ministry of Finance to launch a new Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to improve liquidity position of the NBFCs/HFCs.

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Cabinet nods to "Scheme for formalisation of Micro Food Processing Enterprises

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to a new Centrally Sponsored Scheme - "Scheme for Formalisation of Micro food processing Enterprises (FME)" for the Unorganized Sector on All India basis with an outlay of Rs.10,000 crore. The expenditure will be shared by GOI and the States in ratio of 60:40.

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Cabinet approves of additional fund of up to Rs. 3 lakh crores through 'Emergency Crdit Line Guarant

No time limit is prescribed u/s 206C(1A) to make declaration in Form 27C collected from buyers

INCOME TAX : For availing benefit of not collecting tax at time of sale of goods aimed for specified purposes, a verified declaration in prescribed Form should be provided by buyers to seller; however, no time limit is prescribed for furnishing such declarations

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Golf Course developed on land to be considered as ‘Plant & Machinery’; eligible for depreciation: ITAT

INCOME TAX : Depreciation was to be allowed on cost of golf course developed on land by considering same as "plant and machinery"

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194562/golf-course-developed-on-land-to-be-considered-as-‘plant-machinery’-eligible-for-depreciation-itat.aspx

Tuesday, May 19, 2020

Assessee is entitled to defend CIT(A)’s order before ITAT on all grounds though no cross objections were filed: HC

INCOME TAX : Where assessee succeeded before CIT(A) in ultimate analysis and was, thus, not an aggrieved party, in Revenue's appeal, ITAT committed a mistake by not permitting assessee (respondent before it) to support final order of CIT(A) by assailing findings of CIT(A) on issues that had been decided against him

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194569/assessee-is-entitled-to-defend-cita’s-order-before-itat-on-all-grounds-though-no-cross-objections-were-filed-hc.aspx

HC dismissed interim bail plea of Religare Enterprises promoter on Covid19 ground

FEMA, Banking & Insurance : Where complaint was filed by Directorate of Enforcement that petitioner who was promoter of Religare Enterprises (REL) was allegedly involved in acquisition and utilization of proceeds of crime generated out of the criminal activity and its projection as untainted property and had, thus, committed an offence of money laundering in terms of Section 3 of PMLA Act, 2002,

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

Promoters weren’t PAC as they didn’t participate in acquisition of shares by other promoters without public offer

SEBI : Where two promoters of company acquired additional shares of company without making any public announcement of an offer for acquiring shares of company, in view of fact that other promoters did not participate in acquisition of shares, they were not person acting in concert with those two promoters who acquired additional shares

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193303/promoters-weren’t-pac-as-they-didn’t-participate-in-acquisition-of-shares-by-other-promoters-without-public-offer.aspx

No violation of Sec. 3 in absence of any material record to indicate concert among bidders

COMPETITION LAW : Where OP bidders quoted identical prices in a tender floated by informant for procurement of cloth cotton pagdi and mattress but there went no materials on record suggesting or indicating concert among these parties to submit identical bids, same was not in violation of section 3

from www.taxmann.com Latest Case Laws https://ift.tt/3e04260

Invitation for subscription of redeemable preference shares to less than 50 persons was not public issue

COMPANY LAW : Where invitation was made by management of company to selected persons for subscription or purchase of redeemable preference shares by less than fifty persons, same was private issue and not a public issue

from www.taxmann.com Latest Case Laws https://ift.tt/2Zfk3kb

Replacement of damaged parts of plant and machinery was revenue exp. if no new asset came into existence

INCOME TAX : Expenditure incurred on replacement of damaged parts of plant and machinery would be revenue expenditure

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

No waiver of Sec. 234B/234C interest if advance tax wasn’t paid on undisclosed income admitted during survey: HC

INCOME TAX : Where pursuant to survey conducted upon assessee, it admitted an undisclosed income, however, no advance tax was paid on said admitted income, assessee could not claim waiver of interest under sections 234B and 234C

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193367/no-waiver-of-sec-234b234c-interest-if-advance-tax-wasn’t-paid-on-undisclosed-income-admitted-during-survey-hc.aspx

Monday, May 18, 2020

‘Digital Content’ developed by assessee which would be used in films is intangible asset; eligible for dep. @25%

INCOME TAX: Where assessee developed 'digital content/animation software' utilized in multimedia and entertainment industry which are stored in hard disc of computer, this digital content was a copyrighted intangible asset to be used in various films etc. and, therefore, assessee was eligible for depreciation at rate of 25 per cent

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194544/‘digital-content’-developed-by-assessee-which-would-be-used-in-films-is-intangible-asset-eligible-for-dep-25.aspx

Key highlights of Fifth tranche of measures announced by the Finance Minister

The Finance Minister, Smt. Nirmala Sitaraman in a press conference held on 17.05.2020 has announced series of measures in order to get back the economy in track. Now, Finance Minister has come up with Fifth trance of economic measures which are primarily focused on ease of doing business of companies andmatters relating to Insolvency and Bankruptcy Code.

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

Unexplained credit found in books of account chargeable to tax in previous year to which it relates: HC

INCOME TAX : Where Assessing Officer invoking provisions of section 68 added outstanding sundry credit balance found in account books of assessee for financial year 2006-07 to income of assessee for assessment year 2009-10, aforesaid credit balance could not be brought to tax as income of assessee for assessment year 2009-10

from www.taxmann.com Latest Case Laws https://ift.tt/3g2jUqf

Saturday, May 16, 2020

‘Digital Content’ developed by assessee which would be used in various films is intangible asset; eligible for dep.

Time limit prescribed u/s 11-B of Central Excise Act applicable for claiming refund of accumulated CENVAT credit: HC

EX/ST/VAT : In respect of refund claims made under rule 5 of CENVAT Credit Rules, 2004 provisions of section 11-B of Central Excise Act, 1944 would be squarely applicable. Thus, refund applications filed under CENVAT Credit Rules, 2004 cannot be without limitation or time prescribed under section 11-B of Central Excise Act

from www.taxmann.com Latest Case Laws https://ift.tt/2X1JN0P

Delhi HC orders extension of all interim orders till 15-6-2020

EXTENSION OF INTERIM ORDERS : In view of outbreak of COVID-19, Court took suo motu cognizance of the extraordinary circumstances on 25-3-2020 and passed certain directions. In continuation of said order, it is ordered that in all matters pending before High Court and Courts subordinate to High Court, wherein interim orders issued were subsisting as on 15-5-2020 and expired or will expire thereafter, same shall stand automatically extended till 15-6-2020 or until further orders

from www.taxmann.com Latest Case Laws https://ift.tt/2X0eWBP

No infirmity in referring matter to TPO if assessee wrongly reported higher value of transaction in Form No. 3CEB

No penalty could be levied if notice didn’t clearly include reasons for initiation of penalty proceedings

INCOME TAX: Where from show-cause notice issued by Assessing Officer under section 274 it was not clear whether he had levied penalty for concealment of income or furnishing inaccurate particulars of income, penalty order passed under section 271(1)(c) in pursuance of said notice had rightly been set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193458/no-penalty-could-be-levied-if-notice-didn’t-clearly-include-reasons-for-initiation-of-penalty-proceedings.aspx

Friday, May 15, 2020

AO can’t make Sec. 14A disallowance in absence of any exempt income earned during the year: ITAT

INCOME TAX : Where assessee had not earned any tax exempt income in relevant previous year, no disallowance under section 14A could have been made

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194551/ao-can’t-make-sec-14a-disallowance-in-absence-of-any-exempt-income-earned-during-the-year-itat.aspx

Name of struck off company can be restored to recover statutory dues or taxes on undisclosed income

COMPANY LAW : In order to recover statutory dues and taxes on undisclosed income of struck off company and to recover revenue from transactions of struck off company by ITO, name of struck off company can be restored in Register of companies

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

HC remanded matter as assessee failed to produce evidence to claim that sold asset was part of stock-in-trade

INCOME TAX : Where petitioners claimed that they had converted their immovable property into stock in trade but inadvertently showed profit or sale of said property as capital gain instead of business income and filed petition under section 264, since they failed to produce books of account/ledgers nor balance sheets along with their application under section 264 regarding conversion of said property, interests of justice would require that petitioners should be given an opportunity to produce

from www.taxmann.com Latest Case Laws https://ift.tt/3cxVR0g

Non-specific reply to AO’s query revealed complexity in accounts; initiation of special audit justified

INCOME TAX: Where on queries raised by Assessing Officer regarding several issues such as interest passed on to clients, TDS deductions on advances made to a company for construction, reduction in profit ratio of sales turnover, etc., assessee failed to furnish necessary details and reconcile books of account, and several replies of assessee to queries of Assessing Officer revealed complexity in accounts of assessee, impugned notice for special audit under section 142(2A) was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193482/non-specific-reply-to-ao’s-query-revealed-complexity-in-accounts-initiation-of-special-audit-justified.aspx

No infirmity if real estate developer changes its method of accounting in view of revised AS-7: HC

INCOME TAX : Where for previous year, revenue had accepted method of accounting followed by assessee-real estate developer and in light of ICAI guidance note of AS-7 as applicable to real estate developers, assessee itself had changed its method of accounting for subsequent year from Project Completion Method to Percentage Completion Method, in view of fact that effect was revenue neutral in assessment year in question, no addition could be made

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

Thursday, May 14, 2020

Key highlights from second tranche of measures taken in today’s press conference held by the Finance

On May 13, 2020, the Finance Minister had announced first set of measures of the Special relief package focusing primarily on MSMEs, NBFCs, Housing Finance Banks, Power Discoms etc. Now today on May 14, 2020, the Finance Minister, Mrs. Nirmala Sitharaman has come up with second tranche of measures to revive the economy which mainly focus to aid distressed migrant workers, Marginal Farmers, Middle class families by providing measures for affordable housing, street vendors etc.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020659/key-highlights-from-second-tranche-of-measures-taken-in-today’s-press-conference-held-by-the-finance-minister.aspx

No reassessment if disputed amount was subject matter of block assessment u/s 158BC: HC

INCOME TAX : Where reopening notice was issued against assessee on ground that cash of certain amount found on premises of assessee was to be treated as unexplained cash credit, since there was full disclosure about such amount by assessee during original scrutiny assessment and further said amount was also subject matter of block assessment under section 158BC, impugned reassessment notice was unjustified

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

If reassessment notice was set-aside due to technical defects; AO can reissue notice after removing such defects

INCOME TAX: Where reassessment notice issued on ground of failure of assessee to disclose investment in shares and immovable property was set aside by Commissioner (Appeals) on technical grounds that reassessment was completed without complying with mandatory requirement of section 143(2) and not on merits, fresh reopening notice issued on similar grounds which formed basis for first reassessment notice was justified

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

Charging full excise duty & denying exemption on silicon manganese converted from manganese ore, not justified: SC

GST/Excise/ST/VAT : Where assessee, a 100 per cent Export Oriented Unit, entered into an agreement with one 'T' for conversion of Manganese ore/coke into prime Silicon Manganese and as per agreement 'T' was to supply to assessee Manganese Ore and Coke/Coal free of cost and rest of raw materials and consumables was to be used by assessee from its own purchases, since goods were manufactured wholly from raw materials produced or manufactured in India,

from www.taxmann.com Latest Case Laws https://ift.tt/2y1m6ND

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

INCOME TAX : SLP dismissed against High Court ruling due to low tax effect that where notice under section 143(2) was issued to assessee prior to filing of return of income, said notice being invalid, assessment order passed in pursuance of same deserved to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/369cuNH

Reduced rates of TDS/TCS applicable from 14-05-2020

In the press conference held on May 13, 2020 the Finance Minister, Smt. Nirmala Sitharaman, announced that the rates of TDS/TCS in respect of specified payments/receipts shall be reduced by 25%. The CBDT has issued press release, dated 13-05-2020 wherein it has notified the reduced rates of TDS and TCS which are applicable for the period from 14-05-2020 to 31-03-2021. Such reduced rates of TDS and TCS are provided in this article

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

Wednesday, May 13, 2020

Tentative Rates of TDS/TCS from 14-05-2020

In the press conference held on May 13, 2020 the Finance Minister, Smt. Nirmala Sitharaman, announced that the rates of TDS/TCS in respect of specified payments/receipts shall be reduced by 25%. This concession in the rate shall be available for the tax deducted or collected between 14-05-2020 till 31-03-2021. As the reduced rates shall come in force from tomorrow, that is, 14-05-2020, we have enumerated the tentative rates of TDS/TCS in the table.

from taxmann.com News https://ift.tt/3fUO3rI

List of measures focussing on ‘getting back to work’ as announced by Finance Minister

The Finance Minister, Smt. Nirmala Sitaraman in a press conference has announced various measures focused on Getting back to work i.e., enabling employees and employers, businesses, especially MSMEs, to get back to production and workers back to gainful employment

from taxmann.com News https://www.taxmann.com/topstories/222330000000020657/list-of-measures-focussing-on-‘getting-back-to-work’-as-announced-by-finance-minister.aspx

List of Direct-tax measures announced by the Finance Minister

The Finance Minister has announced several package for the Micro, Small and Medium Enterprises (MSME) sector to provide them some sort of relief under COVID-19 pandemic. A slew of measures have been announced by the FM which includes collateral-free automatic loan, revised definition of MSME, etc. The Finance Minister has also announced several relief under the Income-tax Act, which are given in this article

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

Key takeaways from Special package for MSMEs

The Finance Ministry, Smt. Nirmala Sitaraman in a press conference has announced various measures to support the business and MSME sector by providing special package and reliefs. The key announcement includes Collateral-free automatic loans for business, MSMEs, Expanding the scope of term MSME, equity infusion in MSMEs. Etc.The key highlights of the press conference have been summarised hereunder.

from taxmann.com News https://ift.tt/3bv4zLA

Kerala Tax on Paper Lotteries Act, 2005 is unconstitutional & invalid: HC

EX/ST/VAT/Kerala Lotteries Act : Kerala Tax on Paper Lotteries Act, 2005 is unconstitutional and invalid as State of Kerala lacks legislative competence to impose tax under impugned Act on state organised lotteries by deriving its source of power from Entry 62 of List II of the Constitution

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

Surcharge on sales tax and turnover tax is not a 'fee or charge'; no disallowance u/s 40(a)(iib): HC

INCOME TAX : Where State Government undertaking is engaged in wholesale and retail trade of beverages within State, levy of Gallonage Fee, Licence Fee and Shop Rental (kist) with respect to FL-9 licences granted with respect to wholesale of foreign liquor will clearly fall within purview of Section 40(a)(iib) and,

from www.taxmann.com Latest Case Laws https://ift.tt/2WTSv10

PM announces special economic package; comprehensive package of Rs 20 lakh crore

Prime Minister announced a special economic package and gave a clarion call for Atmanirbhar Bharat. He noted that this package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.

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

IRDAI amends regulation for health insurance

The IRDAI has amended the Insurance Regulatory And Development Authority Of India (Health Insurance) Regulations, 2016 whereby various provisions related to general provision, underwriting, group insurance and so on have been discussed.

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

SEBI reduces penalty as Co. couldn’t produce 20 yrs documents due to change in entire management

SEBI : Where SEBI conducted an investigation into affairs of appellant company and sought certain information and documents which appellant failed to produce, thus, SEBI issued penalty of Rs. 30 lakh on appellant, in view of fact that documents were sought in 2017 for period much prior to 2012 which was not available to appellant particularly when appellant had completely new management and, thus, penalty amount was to be reduced

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193515/sebi-reduces-penalty-as-co-couldn’t-produce-20-yrs-documents-due-to-change-in-entire-management.aspx

Matter remanded to decide whether sale of family property was taxable in hands of assessee or in hands of HUF

INCOME TAX: Where capital gain on sale of a family property was taxed in hands of assessee in individual capacity without deciding fundamental issue whether property was of HUF or of assessee in individual capacity, said issue was remanded for fresh decision

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

Oppression plea dismissed as petitioners failed to prove that affair of Co. were conducted in prejudicial manner

COMPANY LAW : Where petitioner shareholders of company failed to make out case that affairs of company were conducted in a manner prejudicial or oppressive to petitioners or to company, oppression and mismanagement petition filed by them was to be dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/3fGR7HD

Tuesday, May 12, 2020

NBFC financing ‘Fastway’ for purchase of STBs was loan though title of asset was retained by NBFC as security

INCOME TAX : Where assessee, a channel broadcaster, entered into arrangement termed as lease agreement with NBFC for purchasing STBs wherein lessor-NBFC had only to finance purchase with assessee-lessee selecting STBs, using for STBs life-time, paying back entire cost over lease tenure, exercising all ownership rights and bearing risks and lessee had no option to terminate lease or return asset before end of lease term, such arrangement was neither lease, nor hire purchase agreement, but loan/fi

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194511/nbfc-financing-‘fastway’-for-purchase-of-stbs-was-loan-though-title-of-asset-was-retained-by-nbfc-as-security.aspx

No deemed dividends if assessee didn’t receive any benefit from loan transactions occurred between investee Cos

INCOME TAX: Where petitioner had received no loan from company in which he had more than 10% shareholding, nor did amount advanced by said loan giver company to concerns in which also petitioner had substantial interest, was out of accumulated profits of loan giver company, reassessment after 4 years was to be held without due application of mind

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194389/no-deemed-dividends-if-assessee-didn’t-receive-any-benefit-from-loan-transactions-occurred-between-investee-cos.aspx

Single member bench can clarify orders passed by Division Bench under relevant provisions of Benami property Act

COMPANY LAW : A Single Member Bench can clarify orders passed by Division Bench under relevant provisions of Act in given facts and circumstances of case and also by following doctrine of necessity

from www.taxmann.com Latest Case Laws https://ift.tt/35SMiXk

Interest exp. not allowable if assessee deliberately discounting LC to bore interest burden of sister concern

INCOME TAX : Where assessee had deliberately reduced its taxable income through discounting letter of credit against sale bills issued to sister concern instead of collecting proceeds and bore interest burden of sister concern, said arrangement could not be considered as business prudence and deduction claimed by assessee on account of interest paid to bank and also to its creditors was not allowable under section 36(1)(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/2WneA94

Sum collected from students for development of school building not taxable if same was kept in separate a/c

INCOME TAX : Annual development fees collected by assessee-society from students for development of school building and purchase of capital assets and kept in separate account solely for said purpose, could not be treated as income or revenue receipt for purpose of section 11

from www.taxmann.com Latest Case Laws https://ift.tt/2X1qTaz

Making disallowances which weren't subject matter of remand proceedings is unjustified: HC

INCOME TAX : Where Tribunal set aside an order passed by AO holding that he ought not to have proceeded by determining assessee's income at higher amount on presumption basis under section 44AD and remanded matter to AO directing assessee to justify its case on lower rate of profit in accordance with its books of account but AO passed an order assessing income at higher amount after making certain disallowances/additions, since AO by its impugned order had created absolutely new liability for as

from www.taxmann.com Latest Case Laws https://ift.tt/35RDuRn

Monday, May 11, 2020

Notification No. 24/2020 [F. No. 176/8/2017/ITA-I] / SO 1434(E)

Publish Date : Friday, May 8, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/3co9Vtk

No additions on basis of search proceeding carried out in case of third party without providing hearing opportunity

INCOME TAX : Where in course of search proceedings carried out in case of one "A", Assessing Officer made addition to assessee's income under section 68 in respect of share capital received by them on two basis, firstly, "A" had admitted that he was running a bogus company through which amount in question was given and secondly,

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

Making disallowances which weren't subject matter of remand proceedings in unjustified: HC

Reopening of assessment in absence of any failors on part of assessess to disclose all material facts was unjustified

INCOME TAX : Where Assessing Officer sought to reopen assessment in case of assessee on ground that it was a beneficiary of entries from a transaction with two entry operators and their sister concerns, however assessee in response to notice under section 133(6) had informed that they had no transaction with both entry operators and were not aware of their sister concerns, re-opening of assessment was not justified

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

No sec. 14A disallowance in absence of any exempt income earned duting the year: HC

INCOME TAX : When no expenditure was incurred by assessee in earning dividend income, no disallowance could be made under section 14A

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

Name of company was to be restored from Registrar of cos. as it had assets and liabilities

COMPANY LAW : Where appellant-company was able to satisfy that it was in operation when its name was struck off by respondent-RoC from its register and it had certain assets and liabilities, which necessitated and justified restoration of its name in register of companies, name of appellant-company was to be restored in register of companies under section 252

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

No section 68 additions if assessee proved that amount introduced as capital or premium belongs to assessee itself

INCOME TAX : Where Assessing Officer made an addition on account of bogus purchases on basis of statement of managing director of assessee-company during search, however, entire purchase and sale transactions were duly recorded in regular books of account of all parties concerned and were routed through regular banking channels and, since no incriminating documents were found in course of search, impugned addition was to be deleted

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

Only reasonable profit from bogus purchases to be added to income of assessee: Bombay HC

INCOME TAX : Where assessee had declared certain purchases to be made during year and Assessing Officer added entire quantum of purchases to income of assessee on plea that purchases were bogus purchases and Tribunal held that only reasonable profit at rate of 5 per cent on purchases should be added back to income of assessee, Tribunal was justified in its view

from www.taxmann.com Latest Case Laws https://ift.tt/3cygs4s

Friday, May 8, 2020

Clarification in respect of residency under section 6 of the Income-tax Act,1961

Publish Date : Friday, May 8, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/3bhs7DA

AO couldn't invoke rule 8D if entire investments were made out of interest free own funds

INCOME TAX : Where in case of assessee, entire investment in assets yielding exempt income had been made out of interest free own funds, then no disallowance would be called for under rule 8D(2)(ii) and Assessing Officer would not be required to look into apportionment of expenses towards dividend income from shares held as stock in trade

from www.taxmann.com Latest Case Laws https://ift.tt/3dptvp4

Second hand gold jewellery purchased from unregistered person can be valued as per marginal scheme in GST

GST: Where applicant is in business of sale of used (second hand goods) gold jewellery, it is held that valuation of second hand gold jewellery which are purchased from individuals who are not registered under GST and there is no change in form and nature of such goods can be made as prescribed under rule 32(5) of CGST Rules and in case applicant purchases second hand jewellery from registered person,

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

Purchase of plant for mining of limestone which shall be used as raw material is capital expenditure

INCOME TAX : Interest paid by assessee-company, engaged in manufacturing of fertilizers and cement, on loan borrowed for setting up of argon gas plant, being paid for business purpose, was to be allowed as revenue expenditure even when said plant was not put to use during assessment year under consideration

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

HC justified reassessment notice as Co. invested huge amount info assessee's Co. wasn't carrying regular business

INCOME TAX : Where reassessment notice was issued on basis of information received from DIT (Investigation) that a parent company of assessee at Singapore had made an investment of huge amount in assessee company but said investing company did not appear to be carrying out any regular business activities and was floated to act as a conduit to funnel funds into Indian companies, impugned notice was justified

from www.taxmann.com Latest Case Laws https://ift.tt/2yCEv3H

Kerala HC directed CIT(A) to consider pending rectification application as AO initiated recovery proceedings

INCOME TAX : Where assessee claimed deduction under section 80P and both Assessing Officer and Commissioner (Appeals) disallowed deduction and assessee aggrieved by order of Commissioner (Appeals) file application for rectification of mistake and in meanwhile Assessing Officer initiated steps to recover disputed tax from assessee, Commissioner (Appeals) was to be directed to consider application of assessee without much delay

from www.taxmann.com Latest Case Laws https://ift.tt/2YIRGe7

HC justified additions as 'Suzlon' failed to deposit employee's contribution towards PF and ESI within time

INCOME TAX : Where assessee had not deposited employees' contributions towards PF and ESI amounting Rs. 15.20 lakhs within prescribed period in law and Assessing Officer by invoking provisions of section 36(1)(va) read with section 2(24)(x) made addition of aforesaid amount to income of assessee, impugned addition made to income of assessee was justified

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

Thursday, May 7, 2020

Income-tax (8th Amendment) Rules, 2020

Publish Date : Wednesday, May 6, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/2SJrL1Q

CCI issues advisory to businesses in time of COVID-19

The Competition Commission of India (CCI) has issued an advisory to businesses in the time of COVID-19 pandemic. It has been evident that COVID - 19 has caused disruptions in supply chains, including those of critical healthcare products and other essential commodities/ services. To cope with significant changes in supply and demand patterns arising out of this extraordinary situation, businesses may need to coordinate certain activities, by way of sharing data on stock levels,

from taxmann.com News https://ift.tt/3fzbhn9

High Court cannot entertain writ against assessment order being challenged in appeal beyond limitation period: SC

EX/ST/VAT: Where, on finding that assessee failed to submit Form F to tune of turnover reported in Central Sales Tax return, assessment order was passed by Assistant Commissioner raising demand of 76.73 lakhs against turnover of Rs. 3.44 crores, since High Court quashed said assessment order impressed by fact that assessee had already deposited 12.5 of additional amount in terms of previous order passed by it without examining finding of Appellate Authority,

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

Second hand gold jewellery purchased from unregistered person can be valued as per margin scheme in GST

Word ‘Assessable’ inserted u/s 50C w.e.f. 01-10-2009 has no retro-effect: Delhi ITAT

INCOME TAX/ILT: The word "assessable " inserted in section 50C with effect from 01-10-2009, is prospective in nature and, thus, where assessee sold her immovable property by way of agreement to sell dated 01-04-2009, provisions of section 50C were not applicable and, in such circumstances, deemed sale consideration as per stamp valuation authorities could not be invoked for determining long term capital gain arising from sale of said property

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194491/word-‘assessable’-inserted-us-50c-w-e-f-01-10-2009-has-no-retro-effect-delhi-itat.aspx

No addition in case of unabated assessment if no incrimination material was found during search proceedings

INCOME TAX : In case of unabated assessment of an assessee, no addition is permissible in order under section 153A unless it is based on any incriminating material found during course of search. Where none of the documents found in course of search initiated in year 2015-16 for assessment year 2011-12 in case of assessee-company, even remotely suggest that source of investment made in assessment year remained unexplained and I no incriminating material was found during search against said invest

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

No infirmity if rectification order isn’t passed within 6 months as ITAT has power to extend such limitation period

INCOME TAX : Where assessee or Assessing officer brings to notice of Tribunal an error apparent on face of record in its order within limitation period, in such a case, if Tribunal is unable to pass order under section 254 (2) with in prescribed time period, neither assesee nor revenue should suffer on that account as time period can be extended beyond period of six months in such a case

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193314/no-infirmity-if-rectification-order-isn’t-passed-within-6-months-as-itat-has-power-to-extend-such-limitation-period.aspx

No sec. 41(1) additions in respect of waiver of loan by Maharashtra Govt.: HC

INCOME TAX: Section 41(1) will not apply to waiver of loan as waiver of loan does not amount to cessation of trading liability

from www.taxmann.com Latest Case Laws https://ift.tt/35I0LFA

Wednesday, May 6, 2020

Recovery process u/s 13 of SARFAESI Act applies to Co-op/multi-State co-op banks: SC

FEMA, BANKING & INSURANCE: Recovery procedure prescribed under section 13 of SARFAESI Act is applicable to Cooperative banks registered under State legislation and multi-State cooperative banks and Parliament has legislative competence to provide additional procedures for such recovery (viz. amending SARFAESI Act)

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

No sec. 41(1) additions in respect of waiver of loan by Maharashtra Govt.: HC – SICOM

INCOME TAX: Section 41(1) will not apply to waiver of loan as waiver of loan does not amount to cessation of trading liability

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194484/no-sec-411-additions-in-respect-of-waiver-of-loan-by-maharashtra-govt-hc-–-sicom.aspx

Price parallelism in absence of other evidence in itself is not sufficient to launch a full-fledged probe: CCI

COMPETITION ACT : Price parallelism, in absence of other evidence, in itself, may not be sufficient to launch a full fledged investigation, hence, where informant had provided information with regard to price parallelism in respect of two bidders, however, no material was brought on record by informant suggesting or indicating concert amongst them to submit such bids, conduct of bidders could not be said to be in contravention of Act and therefore information was to be closed

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

Investigation into affairs of Co. only on basis of irregularities in financial statements couldn’t be ordered: NCLT

COMPANY LAW: Without circumstances suggesting that business of company was being conducted in a fraudulent manner with intent to defraud creditors, investigation into affairs of said company only on basis of irregularities in financial statements, could not have been ordered

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193846/investigation-into-affairs-of-co-only-on-basis-of-irregularities-in-financial-statements-couldn’t-be-ordered-nclt.aspx

Tuesday, May 5, 2020

Granting of co-developer status to successful bidder by SEZ-Board can’t be challenged by defaulting Co.

FEMA, BANKING & INSURANCE: Company 'Dahej SEZ', a developer of Special Economic Zone (SEZ) executed co-developer agreement in favour of company 'Cambay' and allotted subject plot in said SEZ to 'Cambay' for development, operation and maintenance of hospitality project - 'Cambay' availed financial assistance from SIDBI for development of said project - When 'Cambay' defaulted in repayment, SIDBI initiated action under SARFAESI Act and thereafter,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194469/granting-of-co-developer-status-to-successful-bidder-by-sez-board-can’t-be-challenged-by-defaulting-co.aspx

RBI issues addendum to Guidance Note on Audit of Banks

The RBI has issued addendum to guidance note on Audit of Bank wherein provision related to rescheduling of payments of term loans and working capital, Easing working capital, applicability of circular and so on have been discussed.

from taxmann.com News https://ift.tt/35w3bqJ

HC waives off Sec. 234A/B/C interest for subsistence of winding up order considering financial weakness of Co.

INCOME TAX : Where assessee was under a legal and financial disability for a long period due to subsistence of winding up order, no interest would be payable under sections 234A, 234B and 234C for aforesaid period

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

Directors who were in default while issue of redeemable preference share were liable to refund amount to investors

COMPANY LAW/SEBI: Where company OIL was engaged in fund mobilizing activity from public, through Offer of RPS and had contravened provisions of sections 56(1), 56(3), 2(36) read with 60, 73(1), 73(2), 73(3) of Companies Act, 1956, all Directors of OIL, at time of issuance of RPS, were officers in default and they would be jointly and severally liable to refund amounts collected from investors with interest at rate of 15 per cent per annum, for non-compliance of above mentioned provisions

from www.taxmann.com Latest Case Laws https://ift.tt/2WtBwm8

Monday, May 4, 2020

Suit seeking undivided share in predecessor’s property can’t be rejected outrightly u/s 4(3) of unamended Benami Act

INCOME TAX: Where appellants, successos-in-interest (widow and children) of deceased "A" , filed a suit for partition against respondents claiming that they were collectively entitled to one-tenth undivided share in suit property on ground that though said property was allotted in the name of respondent No. 1 (i.e. brother of deceased) but consideration for same was paid by father of the deceased, however,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194485/suit-seeking-undivided-share-in-predecessor’s-property-can’t-be-rejected-outrightly-us-43-of-unamended-benami-act.aspx

Petition filed u/s 241 by a non-member and non-shareholder of a Company is not maintainable: NCLT

COMPANY LAW : Where petitioner alleged that Articles of Association was illegally amended and some properties were sold away in respect of a charitable company, petition filed under section 241 was not maintainable as petitioner was neither a member nor a shareholder of said company

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

OP was not dominant in relevant market for supply of formalin as there were multiple suppliers in market

COMPETITION ACT : Where there were multiple players in market for supply of formalin and no purchaser was dependent on a single formalin supplier/seller, as purchaser could easily switch to another player without incurring significant cost, OP, formalin supplier was not dominant in relevant market and, thus, question of alleged abusive conduct by OP within meaning of provisions of section 4, did not arise

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

Saturday, May 2, 2020

Car mats not to be classified as parts and accessories of vehicles: SC

EX/ST/VAT: Textile floor coverings and car matting come within ambit of chapter heading 5703 90.90; HSN Explanatory Notes dealing with interpretation of rules specifically exclude "tufted textile carpets, identifiable for use in motor cars" from 87.08 and place them under heading 57.03 and once subject goods are found to come within ambit of chapter heading 5703 90.90,

from www.taxmann.com Latest Case Laws https://ift.tt/35rbsvL

Foreign travel exp. incurred for providing services outside India not to be included for computing deduction u/s 10A

INCOME TAX: Commissioner (Appeals) was justified in holding that expenditure incurred towards date link charges/telecommunication charges and foreign travel expenses attributable to delivery of computer software for providing technical services outside India was to be excluded both from export turnover and total turnover for purpose of computation of deduction under section 10A

from www.taxmann.com Latest Case Laws https://ift.tt/2YoV3GU

No reassessment if it was duly submitted by assessee that a few transactions might be in violation of Sec. 80-IB

INCOME TAX : In order to sustain a notice seeking to reopen assessment beyond normal period of 4 years, it is necessary for revenue to establish, at least, prima facie that there was failure to disclose fully and truly all material facts necessary for assessment for that assessment year by assessee

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

Scheme for revival and arrangement approved by majority of committee of creditors was to be allowed: HC

COMPANY LAW : Where majority of creditors of company have in their wisdom approved scheme for revival and arrangement, said scheme was to be approved

from www.taxmann.com Latest Case Laws https://ift.tt/2YwBug1

Friday, May 1, 2020

Interest accrued on grant received from Govt. for constructing houses for Police Officials not taxable

INCOME TAX: Where amount of interest which accrued on grants received by assessee-society from State Government for various purposes including construction of houses for police officials could be used only for that purpose and in event it could not be used for that purpose, same has to be refunded back to Government, assessee was not recipient of income arising on account of interest earned on deposits with banks

from www.taxmann.com Latest Case Laws https://ift.tt/3d9PYWT

Claim of employee in excess of limit prescribed by section 4 of Payment of Gratuity Act is not maintainable, rules SC

Company Law/Payment of Gratuity Act: If an employee is covered by provisions of Payment of Gratuity Act, gratuity of such employee has to be calculated in accordance with provisions of Act and while so calculating, not only basic principle available in Section 4(2) as to how gratuity is to be calculated must be applied but also ceiling which is part of Section 4(3) must also apply and, thus, claim made by employee in excess of limit prescribed by section 4 would not be maintainable

from www.taxmann.com Latest Case Laws https://ift.tt/35lcc5K

Withholding refund on account of cross verification beyond the prescribed period was illegal: HC

GST: Where assessee was engaged in manufacture of cement and cement products and Revenue confirmed levy of tax on packing material i.e. gunnies at basic rate of 8 per cent and levied additional tax of Rs. 28.10 lakhs, it was held that once Revenue admits receipt of Demand Drafts from assessee for said sum of Rs. 28.10 lakhs,

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

Petitioner couldn’t be entitled for full benefits out of transmission due to delay in approaching tribunal

COMPANY LAW: Where petitioner's father owned securities in R1 company and for 11 years petitioner had not informed about his father's death either to company or to its share transfer agent, mean while, company issued share certificate to other person having same name as of petitioner's father, petitioner could not be made to suffer a loss on account of respondent's action

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193388/petitioner-couldn’t-be-entitled-for-full-benefits-out-of-transmission-due-to-delay-in-approaching-tribunal.aspx

Sec. 69B additions couldn’t be made by presuming high purchase value of land on basis of amount of stamp duty paid

INCOME TAX: Where Commissioner invoked revision jurisdiction for reason that against consideration of Rs. 45.61 lakh paid by assessee, for purchase of land stamp duty of such higher amount of Rs. 22.90 lakh was paid, thus, it was to be presumed that value of property would be higher and there was an undisclosed investment made by assessee, as per section 69B, since no addition could be made under said section merely on basis of presumption, impugned revision was unjustified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193103/sec-69b-additions-couldn’t-be-made-by-presuming-high-purchase-value-of-land-on-basis-of-amount-of-stamp-duty-paid.aspx

Petitioner couldn’t be entitled for full benefits out n transmission due to delay in approaching tribunal

COMPANY LAW: Where petitioner's father owned securities in R1 company and for 11 years petitioner had not informed about his father's death either to company or to its share transfer agent, mean while, company issued share certificate to other person having same name as of petitioner's father, petitioner could not be made to suffer a loss on account of respondent's action

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193388/petitioner-couldn’t-be-entitled-for-full-benefits-out-n-transmission-due-to-delay-in-approaching-tribunal.aspx

Merely sole opinion of handwriting expert couldn’t be basis of registration of FIR: Apex Court

FEMA, BANKING & INSURANCE : Where on failure to execute sale deed, accused issued cheques for refund of amount paid by complainant for purchase of land but same was dishonoured, thus, complainant filed complaint under section 138, on contrary, accused placed reliance upon report of hand writing expert and filed FIR alleging that complainant had prepared fabricated receipts of cheques, in view of fact that on basis of sole opinion of handwriting expert, FIR ought not to be registered,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193428/merely-sole-opinion-of-handwriting-expert-couldn’t-be-basis-of-registration-of-fir-apex-court.aspx