Notification u/s 138 of the Income Tax Act, 1961 in respect of Competition Commission of India

Publish Date : Thursday, July 30, 2020

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Losses already set off against profit of other business not to be reduced notionally while computing profit u/s 80-IA

INCOME TAX : Assessee, while determining eligible profit, is not required to notionally reduce losses arising from eligible business in earlier years already set off against other business of assessee in terms of sections 70, 71 and 72 prior to exercise of option of 'initial assessment year'; losses arising subsequent to earmarking of 'initial assessment year' would, however, continue to be governed by embargo placed in section 80-IA(5)

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HC directs RBI to enforce recovery package contained in its Circular giving relief to borrowers

FEMA, BANKING AND INSURANCE : Where in view of financial condition caused by N-Covid 19 to ease financial stress, RBI issued a Circular dated 27-3-2002 which contained detailed instructions as regards Regulatory Package permitting lending institutions to grant a moratorium of three months on payment of all term loan instalments falling due between 1-3-2020 and 31-5-2020,

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

Reassessment couldn’t be initiated on fact which was subject matter of consideration while passing assessment order

INCOME TAX: Where Assessing Officer sought to reopen assessment in case of assessee on ground that assessee had wrongly claimed deduction under section 80-IB(10) as completion certificate for project was not obtained on or before stipulated date, however, said fact was a subject matter of consideration by Assessing Officer while passing Assessment Order and no new reasons had been recorded prior to issuance of impugned notice, reopening of assessment on bald assertion that assessee had failed to

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193387/reassessment-couldn’t-be-initiated-on-fact-which-was-subject-matter-of-consideration-while-passing-assessment-order.aspx

AOP was liable to tax at MMR if income of its members during relevant year exceeded basic exemption limit: ITAT

Income Tax : Where assessee society, registered under Societies Registration Act, 1860, was holding status of AOP, in view of fact that income of its members during relevant year exceeded basic exemption limit, having regard to provisions of section 167B(2), income of assessee was liable to be taxed at maximum marginal rate

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ITAT remanded matter to for re-adjudication as CIT(A) summarily dismissed matter ex parte

INCOME TAX : Where Assessing Officer disallowed deduction under section 80P(2)(a)(i) and on appeal, Commissioner (Appeals) summarily dismissed matter ex parte observing that appellant had neither attended nor filed any clarification, matter was to be readjudicated

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ICAI issues FAQs on SEBI Settlement Scheme, 2020

The Securities Exchange Board of India has introduced a new scheme vide Public Notice dated 27th July, 2020 called Settlement Scheme (“the Scheme”) in terms of Regulation 26 of SEBI (Settlement Proceedings) Regulations 2018. For the purpose of clarity, the ICAI issues FAQs for stakeholders.

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Drawer of cheque not liable u/s 138 if cheque presented to drawee bank after period of expiry of its validity

FEMA, BANKING & INSURANCE : Where cheque was presented to drawee bank after period of expiry of its validity of three months, drawer could not have been summoned for offence punishable under section 138

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‘Palam Gas Service’ ruling requires no review; SC upholds TDS disallowance not confined to sum ‘payable’ only

INCOME TAX: Where assessee had entered into a contract with a cement factory to transport cement and for that assessee hired services of truck owners as sub-contractors, assessee would be liable to deduct tax at source under section 194C from payments made to truck owners

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195271/‘palam-gas-service’-ruling-requires-no-review-sc-upholds-tds-disallowance-not-confined-to-sum-‘payable’-only.aspx

​Notification No. 56/2020 [F. No. 370142/23/2020-TPL] / SO 2512(E)

Publish Date : Wednesday, July 29, 2020

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​Income-tax (18th Amendment) Rules, 2020

Publish Date : Tuesday, July 28, 2020

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Notice issued to authorised representative of assessee is deemed as notice issued to assessee

INCOME TAX: Where assessee filed writ petition challenging reassessment order on grounds that notice under section 148 was not served upon him, in view of fact that authorized representative appeared on behalf of assessee, therefore contention of assessee could not be countenanced in view of section 292BB

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Losses already set off against profit other business not to be reduced notionally while computing profit u/s 80-IA

INCOME TAX : Assessee, while determining eligible profit, is not required to notionally reduce losses arising from eligible business in earlier years already set off against other business of assessee in terms of sections 70, 71 and 72 prior to exercise of option of 'initial assessment year'; losses arising subsequent to earmarking of 'initial assessment year' would, however, continue to be governed by embargo placed in section 80-IA(5)

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

Notice issues to authorised representative of assessee is deemed as notice issued to assessee

INCOME TAX: Where assessee filed writ petition challenging reassessment order on grounds that notice under section 148 was not served upon him, in view of fact that authorized representative appeared on behalf of assessee, therefore contention of assessee could not be countenanced in view of section 292BB

from www.taxmann.com Latest Case Laws https://ift.tt/2X4WF7l

Petitioner to approach RoC for activation of DIN and DSC for filing of STK-2 to enable strike off of name of Co.

COMPANY LAW: Where petitioners did not intend to continue company, to file returns and make statutory uploadings of form STK-2 so as to enable a 'strike off' name of company, petitioners should approach ROC for activation of DIN and DSC and ROC should pass appropriate orders

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It is not necessary that materials before AO should conclusively prove that income had escaped assessment: ITAT

I. INCOME TAX: Where only during assessment of succeeding year, local authority intimated that Building Completion Certificate was not issued to housing project and further on verification Assessing Officer found that built-up area of certain flats was more than 1000 sq. ft., such information gathered subsequent to culmination of original assessment would be a bona fide reason to believe that income chargeble to tax had escapad assessment

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Suspension of appellant’s license was to revoked when appellant didn’t indulge in proprietary trades

COMPANY LAW/SEBI : Where appellant had not indulged in proprietary trades, however, was grossly negligent and allowed fraudulent transactions to be carried out by its client and thereby aided commission of fraudulent and manipulative trades, order of SEBI directing suspension of license of appellant for a period of three months was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000191613/suspension-of-appellant’s-license-was-to-revoked-when-appellant-didn’t-indulge-in-proprietary-trades.aspx

SVLDRS: Case to be considered afresh where assessee was denied benefit of scheme without fair opportunity of hearing

GST/EXCISE/ST/VAT : Where petitioner was denied benefit of scheme namely Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, without granting a fair opportunity of hearing, impugned order passed by issuing Form SVLDRS-3, was to be quashed and, matter was to be remanded back for disposal afresh

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Clarification on FRDI Bill

No decision taken to reintroduce the FRDI Bill

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Books of account couldn’t be rejected just because assessee didn’t maintain stock register

INCOME TAX: Mere fact of non-maintenance of stock register could not be basis for rejection of books of account

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195120/books-of-account-couldn’t-be-rejected-just-because-assessee-didn’t-maintain-stock-register.aspx

HC remanded matter to consider whether assessee’s question to jurisdiction would fall under sec. 124(2) or not

INCOME TAX: Proceedings initiated under section 148 shall be proceedings at stage of filing of return under section 139 and as per section 124(2), before assessment is made, Assessing Officer is required to record satisfaction regarding jurisdiction

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195123/hc-remanded-matter-to-consider-whether-assessee’s-question-to-jurisdiction-would-fall-under-sec-1242-or-not.aspx

Material and price sensitive events/information is to be disclosed even when one is in doubt: SAT

COMPANY LAW/SEBI : Where though Binding Implementation Agreement signed by authorized Executive Director of appellant ICICI Bank with dominant shareholders of Bank of Rajasthan was price sensitive and admittedly material to performance of appellant, but same was disclosed after delay of one trading day, penalty was to be imposed

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What is the due date for furnishing of TDS statement for Q1 of Financial Year 2020-21?

As the prescribed due date for furnishing of TDS statement for the Quarter 1 of the Financial Year 2020-21 is around the corner, that is, July 31, 2020, there is a chaos to know about the applicable due date. Whether it will be the original due date of 31-07-2020 as per Rule 31A or 31-03-2021, the due date extended for all compliances (falling between 20-03-2020 to 31-12-2020) by the Notification No. 35/2020, dated 24-06-2020. We have tried to solve this controversy in this write-up

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​Amendment of rule 37AA, Form 27EQ​

Publish Date : Friday, July 24, 2020

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Co Society and its members are distinct persons; Membership fee is Consideration under GST: MH AAR

GST : Activities of applicant, a co-operative housing society, such as obtaining conveyance from builder, managing, maintaining and administering property of society, raising funds for achieving objects of society, undertaking and providing any social, cultural or recreational activities, can be considered as rendering of 'supply' of services to its members under section 7

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No sec. 263 revision if reassessment proceedings were dropped by AO after taking one of possible views

INCOME TAX : Where Assessing Officer after making due enquiries found assesee's claim for exemption of income as correct and, thus, dropped reassessment proceedings, since view taken by him was one of possible views, impugned revisional order passed under section 263 was to be set aside

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Holding period for purpose of capital gains to be reckoned from date of allotment of flat: ITAT

INCOME TAX: Holding period for purpose of capital gains has to be reckoned from date of allotment of flat and not date of possession of flat

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

‘Computerised Patta’ showing land as wet land to be deemed as agricultural land: Madras HC

INCOME TAX: Where assessee sold agricultural land and claimed capital gain from sale as exempt, since Tahsildar while submitting report to Assessing Officer had enclosed copies of computerised patta, which showed that land was wet land and deemed to be agricultural land, merely because an agriculture activity could not be done on said land for various reasons including natural causes, it was not cease to be an agricultural land, thus,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000192971/‘computerised-patta’-showing-land-as-wet-land-to-be-deemed-as-agricultural-land-madras-hc.aspx

​Corrigendum​

Publish Date : Wednesday, July 22, 2020

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ITAT allows exemption to Tata Trust for sum spent on CBDT-approved foreign universities

INCOME TAX : Where assessee claimed exemption of income applied outside India for educational purpose under section 11(1)(c), in view of fact that assessee had specific approval from CBDT for said purpose, claim so raised was to be allowed

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ITAT rightly disallowed Set-off of business loss against salary income; unabsorbed losses to be carry forwarded

INCOME TAX: As per provision of section 71(2A) and explanatory memorandum to Finance Act, 2004 amending provision of section 71(2A) w.e.f 01.04.2005, losses under head income from business or profession, including unabsorbed depreciation, if any cannot be set off against income assessable under head salaries

from www.taxmann.com Latest Case Laws https://ift.tt/30KdVzD

Order to freeze respondent’s Bank account couldn’t’ be passed without direction u/s 132(3) of 1961 Act

FEMA : Where investigating officer in exercise of power under section 37(3) directed a bank that respondent should not be allowed to operate his bank account as said account was suspected to be involved in a case under Act, in view of fact that an order under section 132(3) of 1961 Act putting a restraint on operation of account of respondent was not at all passed, impugned direction was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195131/order-to-freeze-respondent’s-bank-account-couldn’t’-be-passed-without-direction-us-1323-of-1961-act.aspx

ITAT confirms Rs 196 crores addition for deposits made in SWISS a/c as assessee didn’t sign ‘Consent Waiver’

INCOME TAX: Where assessee was beneficial owner of deposits in foreign bank accounts and declined to sign consent waiver so as to enable Income-tax Department to obtain all necessary details from said account, additions in respect of assessee's foreign bank account was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195135/itat-confirms-rs-196-crores-addition-for-deposits-made-in-swiss-ac-as-assessee-didn’t-sign-‘consent-waiver’.aspx

HC attaches assets of claim-petitioner for execution of decree against judgment debtor by lifting corporate veil

COMPANY LAW : Where directors of claim petitioner company and judgment debtor were common, a case was made out by decree holder to execute decree by attachment sale of assets of claim petitioner applying principle of lifting of corporate veil, property owned by claim petitioner company was definitely liable to be attached for realisation of decree debt legally obtained by decree holder, a customer

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ITAT remanded matter to determine whether closely held Co. received share application money exceeding FMV from NR

INCOME TAX: In order to invoke provisions of section 56(2)(viib) in case of company in which public are not substantially interested, it is essential that amount in excess of face value of share to be issued is received from a resident

from www.taxmann.com Latest Case Laws https://ift.tt/2D32Q4v

Special Liquidity Scheme for NBFCs and HFCs: Implementation Status

Special Liquidity Scheme for NBFCs and HFCs: Implementation Status

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Notification u/s 138 (1)(ii) of the Income-tax Act, 1961 under PM-KISAN Yojana​

Publish Date : Tuesday, July 21, 2020

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​Tender Notice for Annual Maintenance Contract of Air Conditioners, Delhi

Publish Date : Tuesday, July 21, 2020

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Govt. tightens bidding norms for border countries

The Government of India today amended the General Financial Rules 2017 to enable imposition of restrictions on bidders from countries which share a land border with India on grounds of defence of India, or matters directly or indirectly related thereto including national security.

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Mere public announcement of existence of legal right in form of ownership of brand name doesn’t amount to abuse u/s 4

COMPANY LAW : A mere public announcement of existence of legal right in form of ownership of a brand name by opposite party does not amount to 'abuse' within meaning of section 4 and, therefore, no competition concern can be said to have arisen in such a case

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195121/mere-public-announcement-of-existence-of-legal-right-in-form-of-ownership-of-brand-name-doesn’t-amount-to-abuse-us-4.aspx

Mandatory certification prescribed by NHAI for service providers to participate in tender process wasn’t unfair: CCI

COMPETITION LAW: NHAI engaged in economic activities like development, maintenance and management of national highways, etc. is covered within definition of 'enterprise'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195122/mandatory-certification-prescribed-by-nhai-for-service-providers-to-participate-in-tender-process-wasn’t-unfair-cci.aspx

HC dismissed appeal as ITAT’s finding that building was completed within required time u/s 80-IB was finding of fact

INCOME TAX : Where Tribunal allowed claim of assessee under section 80-IB(10) finding that building in question was completed within stipulated time, said finding being a finding of fact and revenue not having questioned that this finding was incorrect and had also not questioned veracity of completion/occupation certificate produced before Tribunal, appeal against order of Tribunal would not be maintainable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194284/hc-dismissed-appeal-as-itat’s-finding-that-building-was-completed-within-required-time-us-80-ib-was-finding-of-fact.aspx

ITAT remanded matter to determine whether closely help Co. received share application money exceeding FMV from NR

INCOME TAX: In order to invoke provisions of section 56(2)(viib) in case of company in which public are not substantially interested, it is essential that amount in excess of face value of share to be issued is received from a resident

from www.taxmann.com Latest Case Laws https://ift.tt/3f3Z2xr

​Notification u/s 138 of the Income-tax ACt,1961 in respect of Intelligence Bureau, Cabinet Secretariat, National Investigation Agency and Narcotics Control Bureau​

Publish Date : Tuesday, July 21, 2020

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Executing separate deed of covenant for non-compete not sham transaction: Apex Court

INCOME TAX: Amount received by assessee as non-competition fee on executing deed of covenant was not taxable under section 28(ii); it was exempt as capital receipt

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SLP dismissed against ruling allowing refund to Vodafone as it can’t be retained merely on likelihood of demand

INCOME TAX: SLP dismissed against High Court ruling that admitted refund amount could not have been retained by revenue authorities on ground that department may have a future demand against assessee arising out of pending assessment orders

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195197/slp-dismissed-against-ruling-allowing-refund-to-vodafone-as-it-can’t-be-retained-merely-on-likelihood-of-demand.aspx

Petition seeking refund of deposit with Co. rejected as matter was pending disposal in criminal proceedings

COMPANY LAW : Petition filed under section 74(3), seeking refund of amount deposited with respondent company for purchase of flat could not be entertained where said issue was already pending disposal in criminal proceedings as well as proceedings under Consumer Protection Act

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Hindustan Composites Ltd. held guilty of unfair trade practice for cartelising in composite brake blocks market

COMPETITION LAW: Where OPs had indulged in cartelisation in Composite Brake Blocks market in India by means of directly or indirectly determining prices, allocating markets, co-ordinating bid response and manipulating bidding process, which had an appreciable adverse effect on competition within India, they were guilty of contravention of provisions of section 3

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​Notification of Sovereign Wealth Fund under section 10(23FE) of the Income-tax Act, 1961

Publish Date : Wednesday, July 22, 2020

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Notification No. 50/2020 [F. No. 300196/74/2018-ITA-I] / SO 2403(E)

Publish Date : Tuesday, July 21, 2020

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AO couldn’t change method of accounting consistently followed by assessee to determine income on estimate basis

INCOME TAX : where assessee, engaged in construction of flats, was consistently following completed contract method of accounting and said method had been accepted by revenue authorities in past, there was no justification on part of Assessing Officer to change same and to determine income of assessee on estimate basis in assessment year in question

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195078/ao-couldn’t-change-method-of-accounting-consistently-followed-by-assessee-to-determine-income-on-estimate-basis.aspx

Amendment to Sec. 115BBE restricting set off losses against deemed income could not be applied retrospectively

INCOME TAX: Amendment made by Finance Bill, 2016 to provisions of section 115BBE providing that no set off of any loss shall be allowed to assessee against deemed income under sections 68, 69, 69A to 69(2) could not be applied retrospectively

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HC directed dept. to consider TDS claim based on manual Form 16A as deductor didn’t generate Form 26A

INCOME TAX : Where bank/deductor, instead of generating form 26A, issued Manual Form 16A to assessee evidencing TDS towards tax paid for interest amount, assessee was to be directed to approach department by making application enclosing Form 16A and department would consider claim of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194281/hc-directed-dept-to-consider-tds-claim-based-on-manual-form-16a-as-deductor-didn’t-generate-form-26a.aspx

Time limit for passing arbitral award and for completion of statement of claim and defence extended till further order

COMPANY LAW : Time limit for passing arbitral award and for completion of statement of claim and defence extended till further order

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No abuse of dominant position by PayU payments in relevant market of e-payment in India: CCI

COMPETITION LAW : Existence of prima facie abusive conduct under section 4(2) is a prerequisite to order an investigation, hence, where informant filed information alleging that OPs had become dominant in relevant market for 'e-payments gateway in India', however, no evidence had been furnished in relation to abuse of dominant position by OPs, information was to be closed forthwith

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Reassessment initiated on the basis of audit objection justified as AO failed to taxed interest income

INCOME TAX : Where Assessing Officer worked out profit on basis of contract/sub-contract income but failed to add interest income shown in books as other income, subsequently, on basis of audit objection, Assessing Officer was justified in invoked section 147/148 and reassessing 'interest income'

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ICAI issues Technical Guide on easy Incorporation of Companies SPICE+

ICAI through its Corporate Laws & Corporate Governance Committee (CL&CGC) has released this “Technical Guide on Incorporation of Companies through SPICE+” to provide detailed guidance on the procedural aspects of this integrated form for the benefit of all the members and other stakeholders. This Technical Guide has been designed and developed in an easy to understand language and is quite comprehensive which elaborates detailed process to incorporate a company through SPICE+

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CBDT and CBIC have signed a new MoU for data exchange

The CBDT and CBIC have signed an MoU for data exchange. This MoU supersedes the MoU signed between CBDT and CBEC in year 2015. In addition to regular exchange of data, both wings of Ministry of Finance would exchange with each other, on request and spontaneous basis, any information available in their respective databases which may have utility for the other.

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HC directed authorities to pass rectification application as assessee was entitled for substantial tax refund

HC directed authorities to pass rectification application as assessee was entitled for substantial tax refund

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Criminal proceedings can’t be stayed under section 391(6) of 1956 Act as ‘civil proceedings’ alone can be stayed: HC

COMPANY LAW : Criminal proceedings cannot be stayed under section 391(6) of 1956 Act as 'civil proceedings' alone can be stayed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194805/criminal-proceedings-can’t-be-stayed-under-section-3916-of-1956-act-as-‘civil-proceedings’-alone-can-be-stayed-hc.aspx

No infirmity in AO’s action to tax sum received on account of family arrangement u/s 28

INCOME TAX: Where assessee filed a writ petition against an order of Income Tax Officer bringing an amount received by assessee on account of family arrangement/re-arrangement under section 28(ii)(a), since Income Tax Officer had not acted without jurisdiction, writ court should not interfere with impugned order, thus, impugned writ petition could not be entertained

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193185/no-infirmity-in-ao’s-action-to-tax-sum-received-on-account-of-family-arrangement-us-28.aspx

Consumer Protection Act, 2019 comes into force w.e.f. 20.07.2020

The Consumer Protection Act, 2019 (‘Act’) comes in to force from today i.e. 20th July 2020. Act includes establishment of the Central Consumer Protection Authority (CCPA) and rules for prevention of unfair trade practice by e-commerce platforms. The Union Minister for Consumer Affairs, Food &Public Distribution Shri Ram Vilas Paswan briefed the media today on the Act via vide conferencing.

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Clarification in relation to notification issued under clause (v) of proviso to section 194N of the Income-tax Act, 1961 (the Act) prior to its amendment by Finance Act, 2020 (FA, 2020)

Publish Date : Monday, July 20, 2020

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Notification No. 49/2020 [F.No.300196/43/2019-ITA-I] / SO 2380(E)

Publish Date : Friday, July 17, 2020

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Foreclosure charges are damages & not consideration; No Service Tax: CESTAT Chennai (LB)

GST/EXCISE/ST/VAT: Foreclosure charges collected by banks and non-banking financial companies on premature termination of loans are not leviable to service tax

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

CG to establish Central Consumer Protection Authority under Consumer Protection Act

The CG has issued the Consumer Protection Authority (Allocation and Transaction of Business) Regulations, 2020 wherein provisions related to procedure for transactions and allocation of business, manner and form, Affixation of common seal, reimbursement, and effect of any irregularity and so on have discussed in details. The norms are yet to be notified

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Obsolete stocks of laptops & motherboards which couldn’t be sold is allowable as expenditure: Bombay HC

INCOME TAX: Obsolete stock which was not disposed off or sold was allowable as expenditure under section 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193609/obsolete-stocks-of-laptops-motherboards-which-couldn’t-be-sold-is-allowable-as-expenditure-bombay-hc.aspx

Committee established under Bar Council to safeguard interest of advocates eligible for exemption u/s 12A & 80G

INCOME TAX: Advocate welfare fund trustee committee established under Bar Council of Delhi being engaged in safeguarding rights, privileges and interest of advocates, its dominant purpose is advancement of general public utility within meaning of section 2(15)

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ITAT wasn’t justified in allocating R&D exp. to another unit if no products were manufactured by such unit

INCOME TAX: Where no product was manufactured by another unit of assessee company, engaged in business of manufacture and export of pharmaceuticals, Tribunal was unjustified in allocating research and development expenditure to said unit of assessee when no such products were manufactured in said unit of assesssee during relevant year

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193190/itat-wasn’t-justified-in-allocating-rd-exp-to-another-unit-if-no-products-were-manufactured-by-such-unit.aspx

CG notifies Consumer Protection Authority (Allocation and Transaction of Business) Regulations, 2020

The CG has notified the Consumer Protection Authority (Allocation and Transaction of Business) Regulations, 2020 wherein provisions related to procedure for transactions and allocation of business, manner and form, Affixation of common seal, reimbursement, and effect of any irregularity and so on have discussed in details.

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CG establishes Central Consumer Protection Authority under Consumer Protection Act

The Central Government hereby established the Central Consumer Protection Authorityas a body corporate by the said name having perpetual succession and a common seal, with power, subject to the provisions of the Act and the rules and regulations made thereunder, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.

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Department of Consumer Affairs notifies Consumer Protection (E-Commerce) Rules, 2020

The Department of Consumer Affairs notified Consumer Protection (E-Commerce) Rules, 2020 wherein provisions related to duties of e-commerce entities, liabilities of market place e-commerce, duties of seller and so on have discussed in details.

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No rectification if disputed issue having two possible opinions settled through Finance Act amendments

INCOME TAX: It was a highly debatable issue whether in pre-amendment provisions of section 54F i.e. in assessment year 2011-12 and earlier, word 'assessee' meant an individual only or it also included an 'HUF' who can claim deduction under section 54B; powers under section 154 could not be exercised to diallow claim of HUF, when issue was already examined by Assessing Officer in scrutiny assessment proceedings

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

ITAT upholds validity of reassessment as assessee was one of beneficiaries of bogus share transactions

INCOME TAX-I : Where assessee declared long term capital gain arising from sale of shares as exempt under section 10(38), in view of fact that there were certain entry operators providing accommodation entries in respect of bogus share transactions and assessee was one of beneficiaries, Assessing Officer was justified in reopening assessment

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

SVLDRS: Defaulted ST Amt. written in a letter to applicant’s vendor can’t be treated as amount determined for scheme

GST/EXCISE/ST/VAT : Where there was no final quantification or determination of tax liability yet and only a preliminary figure was estimated during pendency of enquiry when Sabka Viswas Scheme was introduced, petitioner's application under said scheme could not be admitted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195008/svldrs-defaulted-st-amt-written-in-a-letter-to-applicant’s-vendor-can’t-be-treated-as-amount-determined-for-scheme.aspx

Resale of scrap purchased from railway not usable due to its breakage or wear & tear is subject to TCS: ITAT

INCOME TAX: Scrap sold by railway being certainly not usable due to its breakage or wear and tear and TCS being paid on its purchase by assessee, same would be subjected to TCS during resale

from www.taxmann.com Latest Case Laws https://ift.tt/2OvRGb5

‘NPCI’ not hit by proviso to sec. 2(15) on administering payment settlement system for general public

INCOME TAX: Where clearing functions of RBI were divested to assessee and its primary objective was to administer payment settlement system for larger benefit of general public and not to run clearing system in a commercial manner or on a commercial basis, assessee's activities were charitable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195052/‘npci’-not-hit-by-proviso-to-sec-215-on-administering-payment-settlement-system-for-general-public.aspx

HC restrained bank from classifying educational society account as NPA as per moratorium allowed by RBI

FEMA, BANKING & INSURANCE : Where on account of lockdown and directive issued by State Government, petitioner-society was prevented from demanding due fees from students, in view of RBI's regulatory package declaring 90 days moratorium period, respondent-bank was to be restrained from declaring petitioner's loan accounts as NPA during lockdown period

from www.taxmann.com Latest Case Laws https://ift.tt/2ZGC6zT

Scrap sold by railway not usable due to its breakage or wear & tear is subject to TCS: ITAT

INCOME TAX: Scrap sold by railway being certainly not usable due to its breakage or wear and tear and TCS being paid on its purchase by assessee, same would be subjected to TCS during resale

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

No abuse of dominance by pharma-Co. as there were a number of other pharma-Cos. having higher sales than OP

COMPETITION LAW : Where informant drug dealer merely asserting that OP imposed unfair conditions in dealing with it, however, sales data across pharmaceutical companies showed that there were a number of pharmaceutical companies have higher sales than OP and as such OP did not seem to enjoy dominant position, 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/393mFo8

‘Development Right’ is business asset; no capital gain arises on sum received on its transfer: ITAT

INCOME TAX : Where, assessee, a civil contractor, transferred development rights of a property to a builder and received part payment for same, provisions of section 2(47)(v) would not apply to said transaction as same were applicable only in case of capital assets held by assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195042/‘development-right’-is-business-asset-no-capital-gain-arises-on-sum-received-on-its-transfer-itat.aspx

Dealy in filing complaint u/s 138 allowed as complainant didn’t receive any info from post office about legal notice

FEMA, BANKING & INSURANCE : Delay caused in filing complaint under section 138 on account of non-receipt of information from post office regarding service of legal notice to accused was to be regarded as a sufficient cause and, thus, impugned order passed by Trial Court dismissing said complaint on ground of limitation was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195039/dealy-in-filing-complaint-us-138-allowed-as-complainant-didn’t-receive-any-info-from-post-office-about-legal-notice.aspx

HC quashed order as rectification application was dismissed without even affording hearing opportunity to assessee

INCOME TAX : Where assessee's rectification application was dismissed in a mechanical manner without even affording an opportunity of hearing to assessee, in such a situation, assessee was not to be relegated to avail alternative remedy of filing appeal rather, impugned order was to be set aside and matter was to be remanded back to respondent no. 1 for disposal afresh in accordance with law

from www.taxmann.com Latest Case Laws https://ift.tt/30ufTnR

Assessee can’t file rectification application to claim deduction which is debatable in nature

INCOME TAX: Where assessee-company omitted to claim deduction under section 54B on account of interest paid on loan, since allowability of deduction under section 43B on account of interest payment was a debatable issue and it required further investigation, said omission to claim deduction in original return was not a mistake coming within purview of section and in case of such omission only remedy available was under section 139(5)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194175/assessee-can’t-file-rectification-application-to-claim-deduction-which-is-debatable-in-nature.aspx

Process of converting raw ‘Urad’ into ‘Urad Dal’ is manufacturing; Sec. 80-IA deduction available: HC

INCOME TAX: Process of converting raw urad into urad dhal is a manufacturing activity undertaken by assessee and therefore, assessee would be entitled to deduction under section 80-IA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193627/process-of-converting-raw-‘urad’-into-‘urad-dal’-is-manufacturing-sec-80-ia-deduction-available-hc.aspx

AO is required to supply only documents relied upon while serving SCN and not all documents at preliminary stage: SAT

COMPANY LAW/SEBI: Assessing Officer is required to supply documents relied upon while serving show cause notice, however, there is no duty cast upon Assessing Officer to disclose or provide all documents in his possession at preliminary stage, especially when such documents are not being relied upon

from www.taxmann.com Latest Case Laws https://ift.tt/32oiSjW

Notification No. 48/2020 [F. No.225/115/2020-ITA.II]

Publish Date : Tuesday, July 14, 2020

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Notification No. 47/2020 [F.No.300196/13/2019-ITA-I] / SO 2327(E)

Publish Date : Monday, July 13, 2020

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Notification No. 46/2020 [F.No.300196/07/2020-ITA-I] / SO 2326(E)

Publish Date : Monday, July 13, 2020

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AO cannot change valuation method adopted by assessee while determining fresh valuation of shares

INCOME TAX: To determine fair market value of share allotted in lieu of purchase consideration payable for an acquired asset, an assessee has two choices - He may adopt either NAV method or DCF method; Assessing Officer can determine fresh valuation but cannot change method of valuation opted by Assessee

from www.taxmann.com Latest Case Laws https://ift.tt/30cXYBD

HC quashed stay application disposed of by blindly following CBDT Circular No. 6 of 2016

INCOME TAX: Matter was to be remanded back for disposal afresh where stay application was disposed of by blindly following Circular No. 6 dated 29-02-2016, and without even giving an opportunity of hearing to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3gYq0Yv

Company permitted to revise Board’s report on fulfilling requisite conditions: NCLT

COMPANY LAW: Where petitioner had fulfilled requisite conditions to seek revision of Board's report petitioner was permitted to revise Board's report, as sought for, with a direction to follow all extant provisions of section 135 and Company (CSR) Rules, 2014

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193323/company-permitted-to-revise-board’s-report-on-fulfilling-requisite-conditions-nclt.aspx

CCI’s appeal against order on supplying non-confidential documents of investigation was to be dismissed : HC

COMPETITION LAW: In view of statement made by CCI in earlier order that it was ready to furnish all documents of investigation available with it to respondent, except for those with respect to which a party had claimed confidentiality, without it being treated as a precedent, no case for interference was made out

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193317/cci’s-appeal-against-order-on-supplying-non-confidential-documents-of-investigation-was-to-be-dismissed-hc.aspx

HC set-aside attachment order passed requiring 20% of tax demand as assessee was already granted stay of demand

INCOME TAX : Where assessee was granted stay of demand on payment of 20 per cent of disputed tax demand and thereafter an attachment order was passed in terms of section 226(3) so as to insist assessee to pay such 20 per cent of tax demand, impugned attachment order would result in denial of benefit originally conferred upon assessee of allowing stay on payment of 20 percent of tax, therefore, impugned order of attachment was unjustified and same was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/304ED5y

ITAT rightly held that gain from sale of land as capital gain income as assessee didn’t conduct any other activity

INCOME TAX : Where assessee had not conducted any other activity other than holding land as investment, finding recorded by Tribunal that transaction of sale of land was a capital transaction and income therefrom had to be treated as long-term capital gain and not business income was neither perverse nor arbitrary

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194246/itat-rightly-held-that-gain-from-sale-of-land-as-capital-gain-income-as-assessee-didn’t-conduct-any-other-activity.aspx

Refund can’t be retained on likelihood of demand; refund of Rs. 833 crore to be granted to ‘Vodafone-Idea’

I. INCOME TAX: Admitted refund amount cannot be retained on ground that department may have a future demand against assessee arising out of pending assessment orders

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195019/refund-can’t-be-retained-on-likelihood-of-demand-refund-of-rs-833-crore-to-be-granted-to-‘vodafone-idea’.aspx

Mumbai ITAT quashed assessment done in name of ‘Satyam Computer’ as Co. got merged with ‘Tech Mahindra’

INCOME TAX: Where after merger with company T, company S became non-existent, assessment done subsequently in hands of company S was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195009/mumbai-itat-quashed-assessment-done-in-name-of-‘satyam-computer’-as-co-got-merged-with-‘tech-mahindra’.aspx

Opportunity of being heard to be given to directors before deactivation of their DINs: HC

COMPANY LAW: An opportunity of hearing has to be given to directors prior to deactivation of their DINs, even in respect of defaulting company

from www.taxmann.com Latest Case Laws https://ift.tt/3910cbp

ITAT remanded matter to verify whether interest subsidy on loan taken to set-up P&M was capital receipt

INCOME TAX: If interest subsidy received by assesee under Technology Upgradation Fund Scheme had been utilised by assessee for purpose of meeting interest liability on loans and advances taken by it to set up its plant and machinery, subsidy incentive could be considered as a capital receipt not chargeable to tax

from www.taxmann.com Latest Case Laws https://ift.tt/2CusO0H

Appeal against disgorgement order rejected as appellant colluded with his business connect to make wrongful gains

COMPANY LAW/SEBI : Appeal against disgorgement order passed against appellants for having made wrongful gain by selling shares of PSTL in collusion with one 'N' was to be dismissed, as appellant had admitted of having business relations with 'N' and in appeal filed by 'N' before Tribunal, 'N' had been found guilty of causing false media report and causing rise in price of scrip

from www.taxmann.com Latest Case Laws https://ift.tt/3j02E6G

Dispute as to inheritance of shares is eminently a civil dispute which couldn’t be decided in proceedings u/s 241/242

COMPANY LAW: Dispute as to inheritance of shares is eminently a civil dispute which could not be decided in proceedings under section 241/242 and respondent himself having chosen to avail remedy of civil suit, as such filing of an application under sections 241 and 242 after that was nothing but an afterthought and could not be permitted to continue

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195027/dispute-as-to-inheritance-of-shares-is-eminently-a-civil-dispute-which-couldn’t-be-decided-in-proceedings-us-241242.aspx

Compliant filed u/s 138 was dismissed as complainant didn’t comply with pre-condition before presenting cheque

FEMA, BANKING & INSURANCE: Complaint filed by complainant under section 138 for dishonour of cheque issued by accused was to be dismissed as precondition to be complied with before presentation of cheque had not been complied with by complainant

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193005/compliant-filed-us-138-was-dismissed-as-complainant-didn’t-comply-with-pre-condition-before-presenting-cheque.aspx

One-time relaxation for Verification of tax-returns for the Assessment years 2015-16, 2016-17, 2017-18, ​​2018-19 and 2019-20 which are pending due to non-filing of ITR-V form and processing of such returns

Publish Date : Monday, July 13, 2020

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Aatma Nirbhar Bharat Package – Progress So Far

Aatma Nirbhar Bharat Package – Progress So Far

from taxmann.com News https://www.taxmann.com/topstories/222330000000020769/aatma-nirbhar-bharat-package-–-progress-so-far.aspx

Application for stay of demand couldn’t rejected without considering plea of financial hardship

INCOME TAX: Where Assessing Officer disposed off application for stay of demand filed by assessee by way of passing a cryptic non-speaking order holding that assessee must immediately pay 20 per cent of tax demand, since impugned order did not deal with aspects of prima facie case, financial stringency and balance of convenience, same was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194262/application-for-stay-of-demand-couldn’t-rejected-without-considering-plea-of-financial-hardship.aspx

Sec. 45(2) not applicable if land received upon partition of HUF was held as stock-in-trade by joint family

INCOME TAX : Where assessee, engaged in real estate business, received certain land as stock in trade in partition of joint family property and, thus, there was no conversion of capital asset into stock in trade, provisions of section 45(2) did not apply to assessee's case

from www.taxmann.com Latest Case Laws https://ift.tt/38SGRZL

Interest on loan couldn’t be disallowed if interest free advances were made out of interest free funds

INCOME TAX: Where both interest-free and interest bearing funds were available with assessee, it is to be presumed that investments were made out of interest-free fund

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194285/interest-on-loan-couldn’t-be-disallowed-if-interest-free-advances-were-made-out-of-interest-free-funds.aspx

CBDT relaxes timeline for processing of non-scrutiny ITRs filed upto AY 2017-18 with refund claim

The Central Board of Direct Taxes (CBDT) has relaxed the time framed prescribed under second proviso to Section 143(1) to provide that all validly filed Income-tax returns up to Assessment Year 2017-18 with refund claims can be processed, with prior approval of Pr. CCIT/CCIT, by October 31, 2020. The board has also specified returns where such relaxation shall not be available.

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SAT reduces penalty as appellant-promoters acquired shares and made public belatedly due to technical issue

COMPANY LAW/SEBI: Where penalty was imposed upon appellant for violation of provisions of regulation 3(2) read with regulation 13(1) of SAST Regulations, 2011, as it acquired shares of two promotores without making any public announcement, in view of fact that appellant had made announcements belatedly after five days, thus it being a technical breach, quantum of penalty was to be reduced

from www.taxmann.com Latest Case Laws https://ift.tt/38KE2db

A partnership firm having only four members could not have been converted into a company: HC

COMPANY LAW: Part IX of Companies Act, 1956 requires seven or more persons for converting a partnership Firm into a Company, thus where there were only four members in partnership Firm it could not have been converted into a company

from www.taxmann.com Latest Case Laws https://ift.tt/3gJ5rPB

AO cannot initiate reassessment to re-look into claim which was already allowed during original assessment

INCOME TAX: Where claim of assessee for long term capital gains had been allowed in assessment order based on true and full disclosure of all material by assessee, Assessing Officer could not have had a re-look into said issue pursuant to notice issued under section 148

from www.taxmann.com Latest Case Laws https://ift.tt/3ee7Ikb

ALP to be determined at rate of 3% and 1% respectively towards old guarantees new guarantees issues during year

I TRANSFER PRICING: Where there was no cost incurred to provide corporate guarantee, ALP in respect of old guarantees was to be determined at 3 per cent and in respect of fresh guarantees issued during year, ALP should be determined at 1 per cent

from www.taxmann.com Latest Case Laws https://ift.tt/2W4ulS6

Sum from relinquishment of rights under an agreement is chargeable under head capital gains

INCOME TAX : Income from relinquishing rights under an agreement should be assessed under the head income from capital gains

from www.taxmann.com Latest Case Laws https://ift.tt/2ClUS6a

Cabinet approves proposal to extend EPF contribution by Govt. till August

The Union Cabinet has given its approval for extending the contribution both 12% employees' share and 12% employers' share under Employees Provident Fund, totaling 24% for another 3 months from June to August, 2020, as part of the package announced by the Government under Pradhan Mantri Garib Kalyan Yojana (PMGKY)/ Aatmanirbhar Bharat in the light of COVID-19, a Pandemic.

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Cabinet approves of capital infusion for the three Public Sector General Insurance Companies: MoF

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the capital infusion for an overall value of Rs.12,450 crore; (including Rs. 2,500 crore infused in FY 2019-20) in the three Public Sector General Insurance Companies (PSGICs) namely Oriental Insurance Company Limited (OlCL), National Insurance Company Limited (NICL) and United India Insurance Company Limited (UIICL) but of which Rs.3,475 crore will be released immediately.

from taxmann.com News https://ift.tt/2O73vUH

CBDT enabled the online facility to check applicable rate of TDS in case of cash withdrawal

The CBDT has introduced a functionality on the e-filing platform to enable the banking company or a co-op. bank or a post office to check whether person withdrawing cash is falling within the proviso to Section 194N or not

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AMP transaction couldn’t be treated as international transaction in absence of any agreement for incurring such exp.

TRANSFER PRICING : Where royalties were paid not only for patent but also for a basket of services and it is not a case of TPO that royalty paid was without any use of brand names and further in TP study, royalty payments were found to be at arm's length, no disallowance could be made

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194873/amp-transaction-couldn’t-be-treated-as-international-transaction-in-absence-of-any-agreement-for-incurring-such-exp.aspx

Case referred to President of ITAT to decide whether amendment to Sec. 25(2A) is directory or mandatory in nature

INCOME TAX : Regarding effect of amendment made in first proviso to section 254(2A) on powers of Tribunal under section 254(1) to grant stay, two very important issues of far reaching consequence arose for consideration; application was to be referred to Larger Bench

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

Madras HC denied repeated adjournment in intra-court appeal as dispute required no further hearing

INCOME-TAX : Where after search was conducted, cases of related asessees were transferre, repeated adjournment in intra-Court appeal against transfer denied as dispute required no further hearing

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

Mother’s property cannot be attached for tax recovery if it was transferred through will before arising of demand

INCOME TAX : Where revenue attached certain properties belonging to petitioner's late mother so as to recover tax demand from petitioner on premise that said properties being inherited from his mother belonged to assessee in his individual capacity, since petitioner's mother had already made a Will and transferred said property to a trust much before such tax demand arose and, thus, said property did not belong to petitioner, impugned attachment order was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194273/mother’s-property-cannot-be-attached-for-tax-recovery-if-it-was-transferred-through-will-before-arising-of-demand.aspx

Reassessment notice issued to non-existing company to be quashed as it doesn’t amount to procedural violation

INCOME TAX : Where Assessing Officer issued notice under section 148 to non-existing company, it was a substantive illegality and not procedural violation of nature adverted to in section 292-B, hence, not curable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194298/reassessment-notice-issued-to-non-existing-company-to-be-quashed-as-it-doesn’t-amount-to-procedural-violation.aspx

Lower authorities were justified in allowing Sec. 10B deduction as same wasn’t claimed inadvertently in ITR

INCOME TAX: Where assessee inadvertently omitted to make claim for deduction under section 10B in respect of two 100 per cent Export Oriented Undertakings, however, all necessary facts for claiming deduction under section 10B were already on record, Commissioner (Appeals) in exercise of his plenary/co-terminus powers, as well as Tribunal, ought to have entertained claim

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194326/lower-authorities-were-justified-in-allowing-sec-10b-deduction-as-same-wasn’t-claimed-inadvertently-in-itr.aspx

​Notification of Harmonised Master List of Infrastructure Sub-sectors for the purposes of section 10(23FE) of the Income-tax Act, 1961​

Publish Date : Monday, July 6, 2020

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No concealment penalty can be imposed in case where income of assessee is determined on estimate basis

INCOME TAX : When income of assessee is determined on estimate basis then no penalty under section 271(1)( c) can be imposed for concealment and furnishing inaccurate particulars of income

from www.taxmann.com Latest Case Laws https://ift.tt/2O3lv2l

MD of Co. was guilty of violating Section 10(6) of FEMA for failing to take delivery of goods kept in warehouse

FEMA, BANKING & INSURANCE : Where goods were imported by company but kept in warehouse as company failed to take delivery of goods, penalty had rightly been imposed upon appellant managing director for contravention of section 10(6) of FEMA Act and,

from www.taxmann.com Latest Case Laws https://ift.tt/38xL9Wq

No SLP against ruling allowing relief u/s 14A as no investment was made out of interest bearing funds

INCOME TAX : Where High Court upheld Tribunal's order allowing partial relief to assessee under section 14A by taking a view that no investment was made by assessee in shares and securities out of interest bearing funds, SLP filed against said order was to be dismissed due to low tax effect

from www.taxmann.com Latest Case Laws https://ift.tt/2O81J5H

No deemed dividend if assessee transferred his shareholding before date of advancement of loan: ITAT

INCOME TAX : Where Assessing Officer made addition to assessee's income by invoking provisions of section2(22)(e) on ground that assessee was holding more than ten percent shareholding in both lender and borrower companies, in view of fact that as per annual return filed before ROC, assessee had already transferred its shareholding in borrower company to lender company before advancement of loan out of surplus funds, impugned addition was to be deleted

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

No reassessment to treat LTCG on sale of shares as bogus if full details were provided during scrutiny assessment

INCOME TAX : Validity of reassessment proceedings could not be upheld on ground that assessee earned bogus long term capital gain on sale of shares when assessee gave full details of its share transactions carried out in relevant year at time of completing assessment under section 143(3)

from www.taxmann.com Latest Case Laws https://ift.tt/38yTE3r

LPG sold to Commercial Customers taxable at 18% and for Domestic Customers at 5%

LPG Bottling Company is liable to pay 18 per cent (9 per cent SGST + 9 per cent CGST) on LPG sold to their Domestic Customers for period upto 24.01.2018; and 5 per cent (2.5 per cent SGST + 2.5 per cent CGST) with effect from 25.01.2018 onwards

from www.taxmann.com Latest Case Laws https://ift.tt/2Z80NF3

No SLP against ruling allowing relief u/s 14A as that no investment was made out of interest bearing funds

INCOME TAX : Where High Court upheld Tribunal's order allowing partial relief to assessee under section 14A by taking a view that no investment was made by assessee in shares and securities out of interest bearing funds, SLP filed against said order was to be dismissed due to low tax effect

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

No SLP against HC’s ruling directing revenue to file appeal in Competent Court of jurisdiction

INCOME TAX : Where High Court disposed of revenue's appeal by directing revenue to file same in Competent Court of jurisdiction, SLP filed against said order was to be dismissed due to low tax effect

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000192924/no-slp-against-hc’s-ruling-directing-revenue-to-file-appeal-in-competent-court-of-jurisdiction.aspx

SAT sets aside penalty for violation of PFUTP regulations as appellant were trading in scrip in normal way

COMPANY LAW/SEBI: Where appellants were trading in scrip in a normal way and it was because of scrip itself being attractive through various public announcements that increase in volume of trading and rise in prices had occured, imposition of penalty on appellants for alleged violation of PFUTP Regulations was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2Z3GQyV

Writ against declaration of ‘wilful defaulter’ rejected as decision was yet to be confirmed by review committee: HC

FEMA, BANKING & INSURANCE : Where Wilful Defaulter Identification Committee of bank declared petitioner 'Wilful Defaulters' which was yet to be confirmed by Review Committee, before which petitioner had a remedy in law as well as on facts, writ petition would fail

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194967/writ-against-declaration-of-‘wilful-defaulter’-rejected-as-decision-was-yet-to-be-confirmed-by-review-committee-hc.aspx

Know the changes introduced in new TDS Returns

To incorporate the impact of recent changes made by the Finance Act, 2020, the CBDT has notified the amendment to Rule 31A and Annexure to Form 26Q and Form 27Q vide Income-tax (16th Amendment Rule), 2020. A summary of the changes introduced in the form for filing of TDS Statement and Rule 31A are explained in the this article.

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Sale of wind mills was slump sale if assessee was computing income & expenditure separately for such windmills

INCOME TAX : Wind mills for which income and expenditure could be separately ascertained, constituted separate undertaking;on its sale along with assets and all liabilities, capital gains was to be computed as a slump sale under section 50B (2)

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

ITAT quashed re-assessment as it was completed by AO without issuing scrutiny notice u/s 143(3)

INCOME TAX : Where Assessing Officer did not issue notice under section 143(2) before completing assessment under section 143(3), read with section 147, assessment so framed was bad in law and deserved to be quashed

from www.taxmann.com Latest Case Laws https://ift.tt/3f3MzKR

RBI issues discussion paper on ‘Governance in commercial Banks’

With an objective to improve the quality of financial intermediaries, the Reserve Bank of India (RBI) has released a discussion paper on ‘Governance in Commercial Banks in India' for public comments. The objective of the discussion paper is to align the current regulatory framework with global best practices

from taxmann.com News https://www.taxmann.com/topstories/222330000000020752/rbi-issues-discussion-paper-on-‘governance-in-commercial-banks’.aspx

ITAT allowed loss on sale of cashew kernels as lower price was charged in conformity with commercial practice

INCOME TAX : Where Assessing Officer noticing that assessee sold cashew kernels to its sister concerns at value much lower than cost of production disallowed loss incurred by assessee on such sales, since transactions entered into by assessee with its sister concerns were genuine and bona fide and price charged by assessee from its sister concerns were in conformity with normal commercial practice whereby assessees got huge order in large quantities with timely recovery of debts,

from www.taxmann.com Latest Case Laws https://ift.tt/31IIhom

​Amendment of rule 31A, Form 26Q & 27Q

Publish Date : Friday, July 3, 2020

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

No prima facie case of abuse of dominance was made out against OP as it wasn’t dominant in relevant market

COMPETITION LAW : If OP was not dominant player in relevant market and was only one of players in field having lesser resources and smaller volume as compared to other developers, competition concerns raised by informants under section 4 were unfounded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194648/no-prima-facie-case-of-abuse-of-dominance-was-made-out-against-op-as-it-wasn’t-dominant-in-relevant-market.aspx

ITAT slams AO for giving only a few extracts instead of supplying full details of reasons recorded for reassessment

INCOME TAX : While initiating reassessment proceedings, Assessing Officer is supposed to provide complete details of reasons recorded and not merely few extracts of said reasons so that assessee can prepare its defence effectively against proposed reopening of assessment

from www.taxmann.com Latest Case Laws https://ift.tt/2NWJbp0

No capital gains tax in hands of assessee if sale deeds became invalid due to dishonour of post-dated cheques

INCOME TAX: Where assessee entered into two sale deeds for sale of its lands, however sale transactions could not materialize as post dated cheques issued in discharge of consideration had been dishonored, thus, no transfer of land having taken place and no real income having arisen to assessee, assessee would not be exigible to capital gains tax

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

No SLP against HC’s ruling that share application money received from Co. wasn’t loan for invoking Sec. 22(2)(e)

INCOME-TAX : Where High Court upheld Tribunal's order holding that amount received as share application money from companies in both of which assessee had beneficial interest, was not loan and advance for purposes of invoking section 2(22)(e) SLP filed against said order was to be dismissed due to low tax effect

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000192836/no-slp-against-hc’s-ruling-that-share-application-money-received-from-co-wasn’t-loan-for-invoking-sec-222e.aspx

SC dismissed SLP filed against ruling deleting concealment penalty as it was levied after expiry of limitation period

INCOME TAX : Where High Court upheld Tribunal's order deleting penalty imposed on assessee under section 271(1)(c) on basis that it was levied after expiry of limitation period prescribed under section 275(1)(a), SLP filed against said order was to be dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/2VKI404

Govt. to levy interest@1 % p.m. on delayed payments in Government e-marketplace

In order to improve the discipline and timeliness of payments to vendors, especially MSMEs, the government decided to levy a 1% interest per month on late payments for purchases made on the government e-marketplace (GeM). The charge of the interest shall be prorated for the period of delay. The amount collected shall be deposited in an account maintained by GeM. The levy of interest in delayed payment will be applicable for all procurements made from 01.10.2020.

from taxmann.com News https://ift.tt/2D3s7eN

SEBI extends time limit for filling FY 19-20 financials till 31 July 2020

In view of dealing with the hampered situation of businesses in this epidemic situation of COVID- 19, Securities Exchange Board of India (SEBI) decided to extend the time limit for filling financials of listed entities for F.Y. 19-20 upto 31 July 2020. Earlier, SEBI had given time to file the financials by 30 June 2020 vide circular dated 19 March 2020.

from taxmann.com News https://ift.tt/31NDJge

ITAT slams AO in denying deduction of interest on loan though assessee set-up its business during relevant year

INCOME TAX : Where assessee, engaged in real estate business, having taken huge amount of loan, entered into development agreement for development of a township, it could be concluded that assessee set up its business during relevant year and, thus, assessee's claim for deduction under section 36(1)(iii), was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/2VHgz7G

CMSS didn’t’ abuse dominance by introducing WHO-prequalified certification in tender for purchase of anti-TB drugs

COMPETITION LAW: Where condition of WHO-pre-qualified certification introduced by OPs in tenders for purchase of anti-TB drugs and HIV drugs was a globally accepted standard of quality and did not appear to be unfair/discriminatory, information filed against OPs alleging abuse of dominant position was to be dismissed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193504/cmss-didn’t’-abuse-dominance-by-introducing-who-prequalified-certification-in-tender-for-purchase-of-anti-tb-drugs.aspx

‘Efficiency Gain’ amount disposal at DERC couldn’t be added to income of ‘Tata Power-DDL’: Delhi HC

INCOME TAX : Where assessee company, engaged in business of distribution of electricity in Delhi, had no right to appropriate efficiency gain amount and said amount was at disposal of Delhi Electricity Regulatory Commission (DERC), said amount could not be included in business profit of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194311/‘efficiency-gain’-amount-disposal-at-derc-couldn’t-be-added-to-income-of-‘tata-power-ddl’-delhi-hc.aspx

Duty drawback & Cash Compensatory assistance accrues only when same sanctioned by Custom Authorities

INCOME TAX - I: In case of exports income in form of duty drawback and cash compensatory assistance accrues only when same is sanctioned by custom authorities and not when assessee raises a claim in respect thereof

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

Sections 234B and 234C interest aren't leviable when taxes are payable under MAT provisions: Bombay HC

INCOME TAX - I: Surplus arising on repayment of deferred sales tax loan at NPV is a capital receipt not liable to tax under section 41(1)

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

Penalty imposed u/s 15HA for unfair trade practice was to be set aside due to inordinate delay of 7 yrs in issuing SCN

COMPANY LAW/SEBI: Where there was inordinate delay of more than seven years in issuing show-cause notice after preliminary investigation, penalty imposed on appellants under section 15HA on allegation of unfair trade practices was to be set aside

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

CIT has no power to grant extension of time to get books of account audited u/s 142(A)

INCOME TAX : Extension of time given by Commissioner in getting books of account audited under section142(2A) was illegal and, thus, assessment completed after due date was void ab initio

from www.taxmann.com Latest Case Laws https://ift.tt/38qvKXK

No assessee-in-default for not deducting tax at source if income of payee is exempt u/s 10: ITAT

INCOME TAX : Where assessee, engaged in work of storage and maintenance of warehouse for food grains procured by FCI, paid rent to a State Government Undertaking i.e. Krishi Upaj Mandi Samiti, whose income was exempt under section 10(26AAB), assessee could not be treated as assessee in default for not deducting tax at source under section 194-I while making said payment of rent

from www.taxmann.com Latest Case Laws https://ift.tt/38pSqHJ

CIT has no power to grant extension of time to get books of account audit u/s 142(A)

INCOME TAX : Extension of time given by Commissioner in getting books of account audited under section142(2A) was illegal and, thus, assessment completed after due date was void ab initio

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

Collective Investment Scheme floated by a private trust is illegal: SC

COMPANY LAW/SEBI: Collective investment scheme carried on by a private trust would be in teeth of statute, read with CIS Regulations and would, thus, be illegal

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

ITAT allowed deduction of commission not recovered by assessee providing accommodation entry to his clients

INCOME TAX: Where assessee for relevant year had estimated his undisclosed income to tune of Rs. 3 crore from his illegal activity of providing accommodation entry after survey on his premises but he could recover only Rs. 1.38 crore during relevant year, balance sum to be allowed as a deduction to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/31Csyao

No TDS requirement if interest payable to individuals on GFDA scheme floated by ‘Sahara’ didn’t exceed Rs. 2,500

INCOME TAX: Where assessee-company made provision of interest not on individual basis but made on lump- sum basis on total amount of deposit collected under GFDA scheme floated by it, since interest payable to individual account holder did not exceed Rs. 2,500 in a Financial year, assessee was not required to deduct tax at source

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194810/no-tds-requirement-if-interest-payable-to-individuals-on-gfda-scheme-floated-by-‘sahara’-didn’t-exceed-rs-2500.aspx

ITAT quashed assessment order as notice & questionnaire was issued by AO without examining ITR

INCOME TAX: Where without examining return, Assessing Officer issued notice under section 143(2)/142(1) and questionnaire in a mechanical manner and served these on spot, assessment order passed under section 143(3) was to be quashed

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

FAQs on Indian Stamp Act, 1899 Amendments and Rules made thereunder

The Govt. has come up with FAQs on Indian Stamp Act, 1899 Amendments and Rules made thereunder. The amendments have been carried out with respect to securities market transactions. The present system of collection of stamp duty on securities market transactions has led to multiple rates for the same instrument, resulting in jurisdictional disputes and multiple incidences of duty.

from taxmann.com News https://ift.tt/31CGyAI

Credit Fund Scheme For Micro And Small Enterprises- An Overview

Micro and Small Enterprises (MSEs) face the challenge of non- availability of timely and adequate credit at reasonable interest rate as banks perceive a high risk in lending to MSEs and insist on collaterals which are not easily available with these enterprises. In order to make collateral-free credit available to the MSE sector, the Government of India (GOI), on August 30, 2000, launched the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE), with effect from January 1, 2000.

from taxmann.com News https://ift.tt/2YSd2VY

Loan waived by State Govt. couldn’t be brought to tax u/s 28(iv) : HC

INCOME TAX : Waiver of loan cannot be brought to tax under Section 28(iv)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194951/loan-waived-by-state-govt-couldn’t-be-brought-to-tax-us-28iv-hc.aspx

​Income-tax (15th Amendment) Rules, 2020​

Publish Date : Tuesday, June 30, 2020

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

​Notification under proviso to section 9A(3) of the Income-tax Act, 1961​

Publish Date : Tuesday, June 30, 2020

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

​Income-tax (14th Amendment) Rules, 2020​

Publish Date : Monday, June 29, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/2Ajo7WA

SAT sets aside SEBI’s order that restrained appellant from accessing market based only on a prima facie suspicion

COMPANY LAW/SEBI : Where appellants being Key Managerial Persons of company had been involved in large scale diversion and misstatements of funds of company and thereby restrained from accessing securities market, in view of fact that individual role of appellants had not been examined, confirmatory order based on only a prima facie suspicion against appellants was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193301/sat-sets-aside-sebi’s-order-that-restrained-appellant-from-accessing-market-based-only-on-a-prima-facie-suspicion.aspx

ITAT allowed PWC’s FTC claim raised before AO subsequent to filing of return

INCOME TAX : Foreign tax credit, as per India USA-Treaty, is allowable to an assessee; claim raised before Assessing Officer for FTC paid subsequent to filing of return was to be allowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194861/itat-allowed-pwc’s-ftc-claim-raised-before-ao-subsequent-to-filing-of-return.aspx

Matter remanded to find out whether erstwhile Sec. 56(2)(vii)(b) can be invoked on purchase of agricultural land

INCOME TAX : Where assessee purchased agricultural land and Assessing Officer on basis of valuation report of Sub-Registrar made certain addition to purchase consideration under section 56(2)(vii)(b), matter was to be remanded back to Assessing Officer with a direction to find out as to whether agricultural land fell within meaning of capital asset under section 2(14)

from www.taxmann.com Latest Case Laws https://ift.tt/2ZoP17X

Amendments to the Indian Stamp Act, 1899 to come into force w.e.f July 1, 2020: MoF

In order to facilitate ease of doing business and to bring in uniformity of the stamp duty on securities, the Central Government, after due deliberations and consultations with the States, made amendments in the Indian Stamp Act, 1899. Now, the Amendments in the Indian Stamp Act, 1899 brought through Finance Act 2019 and Rules made thereunder will come into effect from 1 July, 2020.

from taxmann.com News https://ift.tt/2An2pkE

Sale of scrap not generated out of manufacturing activities isn't liable to TCS

INCOME TAX: Where assessee was only a dealer in scrap and scrap sold by assessee was not a result of manufacture or mechanical working of materials, assessee would not be liable to deduct TCS under section 206C

from www.taxmann.com Latest Case Laws https://ift.tt/38flnWZ

AO couldn’t reject books of account to estimate higher GP rate without providing hearing opportunity to assessee

INCOME TAX: Assessing Officer could not have rejected books of account of assessee and estimated gross profit at rate of 12 per cent of total sales turnover as against rate of 8.36 per cent without providing assessee an opportunity to present his claim

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194171/ao-couldn’t-reject-books-of-account-to-estimate-higher-gp-rate-without-providing-hearing-opportunity-to-assessee.aspx