FAQs on Income-tax Returns for Assessment Year 2020-21

The Central Board of Direct Taxes (CBDT) has notified 7 Income-tax Return (ITR) Forms applicable for the Assessment Year 2020-21. In this article, we have prepared 74 FAQs on filing of ITRs and bifurcated those into various categories. A few questions included in this article are (i) how to opt for lower tax regime? (ii) What would be residential status if NR couldn’t return left India due to COVID-19?

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SEBI refuses to extend Sept 1 deadline to move to new pledge & re-pledge system

The decision was taken after SEBI met with stockbrokers' association, depositories, and clearing corporations. The meeting was held to analyze readiness to implement the new norms.

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Interest earned on FD kept with bank for obtaining letter of credit was to be assessed as business income

INCOME TAX : Where assessee earned interest income from fixed deposit (FD) receipts with bank which were made by assessee in course of its trading business of import for purpose of re-­export, for obtaining letter of credit for its purchases, same was to be assessed as business income

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

Application rejected by SetCom on short payment tax not justified as there was computational diff.: Madras HC

INCOME TAX : Where Settlement Commission had rejected application of petitioner for assessment years (AY) 2011-12 to 2017-18 as 'invalid', on ground that there was short payment of tax, since there were computational differences that could well be reason for remittances falling short of required amounts and differences were quite insignificant in context of entirety of payment made, in interests of justice, petitioner's case should be considered on merits by Commission

from www.taxmann.com Latest Case Laws https://ift.tt/34J3gJc

Brokerage deducted by broker in INR from amt. payable to a foreign Re-insurance Co. qualifies as Export of Services

GST/EXCISE/ST/VAT : Where assessee, being a re-insurance broker, arranged for re-insurance for Indian insurers from appropriate reinsurers located abroad, and received from Indian insurance company entire amount due to overseas reinsurers, out of which they deducted their brokerage and remitted rest to overseas insurance company, amounts retained as brokerage were to be treated as receipts for export in foreign currency and therefore demand of service tax on such amounts would not be sustainable

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

Recompense amount retained by Port Trust out of Octroi charged is on account of sovereign privilege; ST not levied

GST/EXCISE/ST/VAT: Service tax demand on amount retained as recompense (3 per cent) by Mumbai Port Trust towards collection of octroi on entry of goods was to be set aside as collection of octroi was in pursuance of discharge of sovereign privilege

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MoF to review implementation of resolution framework for COVID-19 stress in bank loans

The Ministry of Finance has decided to review with the top management of Scheduled Commercial Banks and NBFCs, the implementation of the resolution framework for COVID-19 related stress in bank loans. The review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies

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Oil & Gas Industry: 'Gas connection charges' for SKID equipment recd. from consumers liable to ST-SC

GST/EXCISE/ST/VAT : Buyer of gas is as interested as seller in ensuring and verifying correct quantity of gas supplied through instrumentality of measurement equipment and pipelines, hence, supply of pipes and measurement equipment (SKID equipment) to regulate PNG is taxable under section 65(105)(zzzzj)

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Educational Charts would be classifiable under Heading No. 4911 99 90: CESTAT CHD

GST/EXCISE/ST/VAT: Educational Charts imported by assessee would be classifiable under Heading No. 4911 99 90

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Addition made on estimation basis under section 44AD without rejecting books of account is unjustified: ITAT

INCOME TAX : Where assessee's turnover exceeded Rs. one crore but it failed to get accounts audited under section 44AB, in such a case, Assessing Officer could make addition to assessee's income on estimation basis under section 44AD only after rejecting books of account and thereafter passing a best judgment assessment order under section 144

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​Corrigendum

Publish Date : Thursday, August 27, 2020

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​Corrigendum​

Publish Date : Thursday, August 27, 2020

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​Corrigendum​

Publish Date : Thursday, August 27, 2020

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Any member of a company can redress their relief in oppression & mismanagement case: NCLAT

COMPANY LAW: Any member of a company/holding shares in company can redress their relief in cases of oppression vide Chapter XVI of Companies Act, 2013

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No objections were received in ROC’s report; name of company was to be restored in register of companies

COMPANY LAW : Where appellant-company was able to satisfy that it was owner of property when its name was struck off by respondent-RoC from its register which it wants to utilize now to carry on its business activities and since no objection to restoration of name of appellant-company had been raised in report of RoC, name of appellant-company was to be restored in register of companies

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195384/no-objections-were-received-in-roc’s-report-name-of-company-was-to-be-restored-in-register-of-companies.aspx

EOGM of company to be held under supervision of officer appointed by Tribunal: NCLAT

COMPANY LAW : Where petition was filed alleging oppression and mismanagement in affairs of respondent-company to restrict holding of EOGM for removal of appellant from directorship but later both parties agreed to hold EOGM under chairmanship of special officer appointed by Tribunal, EOGM was to be held and objection that no resolution was to be passed removing director/appellant was devoid of any merit in view of power of company under section 169

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No ST on transportation charges separately billed by CHA on which recipient paid tax under RCM

GST/EXCISE/ST/VAT: Expenses which have been reimbursed by principals to assessee working as a pure agent, cannot be included in assessable value for charging service tax

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No ST on transportation charges separately billed by CHA on which recipient tax under RCM; No ST on reimbursements

GST/EXCISE/ST/VAT: Expenses which have been reimbursed by principals to assessee working as a pure agent, cannot be included in assessable value for charging service tax

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No substantial question of law arose from ITAT’s order allowing deduction u/s 80-IB following earlier year’s ruling

INCOME TAX : Where Assessing Officer denied deduction under section 80-IB on ground that area of two plots situated in two different streets, which assessee had considered as single project, constituted an area of less than 1 acre each when considered individually, but Tribunal had allowed deduction holding that it was done as a composite project at proposed site no substantial question of law arose for consideration

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194176/no-substantial-question-of-law-arose-from-itat’s-order-allowing-deduction-us-80-ib-following-earlier-year’s-ruling.aspx

SC upholds restriction imposed by CG to prevent panic disposal of moong, urad dal etc. by farmers below MSP

FEMA, BANKING & INSURANCE/GST : Notification S.O. Nos. 1478-E, 1479-E, 1480-E and 1481-E, dated 29-4-2019 and Trade Notice dated 16-4-2019 had been issued imposing restrictions to prevent panic disposal of moong, urad, toor dal and gram by farmers below minimum support price as prices of these items would come down due to increased import by industry at much lower price; these notifications were to be upheld

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Maize starch powder classifiable under chapter heading 1108: CESTAT BLR

GST/EXCISE/ST/VAT: Where assessee was engaged in manufacture of different varieties of Maize Starch Power (MSP) viz MSP (Regular Starch), MSP (Thin boiled Starch), MSP (Very Thin Boiled Starch), MSP (Pharma) and MSP (Food), said products would be classifiable under Heading No. 1108 12 00

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Exemption for captive consumption of manufactured goods isn't an absolute exemption; CCR can't denied

GST/EXCISE/ST/VAT : Where assessee had paid duty on goods manufactured without availing exemption under Notification No. 65/95 dated 16-3-1995, availment of cenvat credit by assessee during material periods was justified

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NCLAT refers matter back to AA to determine if amount deposited with builder would fell within term ‘deposits’

COMPANY LAW : Appeal filed by appellant seeking refund of amount deposited with respondent builder for purchase of flat was to be disposed of with a direction to Tribunal to determine as to whether amount so paid fell within meaning of term 'deposits' as mentioned under section 2(31)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194957/nclat-refers-matter-back-to-aa-to-determine-if-amount-deposited-with-builder-would-fell-within-term-‘deposits’.aspx

Scheme of business arrangement to acquire shares of another Co. can’t be termed as business of dealing in securities

INCOME TAX: Where assessee company claimed expenditure in respect of professional charges paid for investment advisory services and interest expenditure paid towards capital borrowed, since assessee was not carrying on any business during year and, thus, said professional fees was not paid in course of business activity and, further, interest expenditure was also not with respect to capital borrowed by assessee for purpose of business, such professional fees and interest paid could not be allowe

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194480/scheme-of-business-arrangement-to-acquire-shares-of-another-co-can’t-be-termed-as-business-of-dealing-in-securities.aspx

Loss on redemption of debentures couldn’t be disallowed if it was proved that borrowing was utilized for business

INCOME TAX: Whether once borrowing made through debentures and utilized for business had been established through agreements and correspondences and no contrary evidence had been placed, then claim of loss could not be rejected

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000190812/loss-on-redemption-of-debentures-couldn’t-be-disallowed-if-it-was-proved-that-borrowing-was-utilized-for-business.aspx

Only profit element embedded in bogus purchases made from hawala dealers to be treated as income of assessee

INCOME TAX : Where information was received by Assessing Officer to effect that eight parties from whom purchases were allegedly made by assessee engaged in job work of dying of fabrics were alleged hawala dealers who had issued bogus bills and he treated aforesaid amount as bogus purchases, since without purchase of materials,

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Civil Court not competent to try suit filed by respondent pertaining to issue of duplicate shares

COMPANY LAW : As per provisions of section 430, after constitution of Company Law Tribunal, Civil Court was not competent to try suit filed by respondent No.1 pertaining to issue of duplicate shares

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Granting of dealership is company’s prerogative and does not give rise to competition concern: CCI

COMPETITION LAW : Where informant filed information alleging that OP had not granted dealership in Hopi, Assam but at some other place contrary to its own advertisement, it was prerogative of company to determine place and number of dealers it wanted to appoint based on its commercial and business considerations and same did not give rise to any competition concern warranting an intervention by Commission

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195400/granting-of-dealership-is-company’s-prerogative-and-does-not-give-rise-to-competition-concern-cci.aspx

Reassessment notice can’t be challenged by filing writ petition if order has been already passed: HC

INCOME TAX : Where notices issued under section 148 had been challenged in writ petition on ground that assumption of jurisdiction under section 147 by ITO was ab initio void, since notices under section 148 had culminated into an order of assessment which could be assailed before appellate authority, said writ petition need not be entertained

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194199/reassessment-notice-can’t-be-challenged-by-filing-writ-petition-if-order-has-been-already-passed-hc.aspx

‘Doctrine of unjust enrichment’ doesn’t apply to fixed price contracts; Excess CST paid shall be refunded: GUJ HC

GST/EXCISE/ST/VAT : Where contract of supplier with recipient/customer for supply of goods was for fixed price irrespective of tax rate applicable, excess tax paid over and above stipulated rate would be refundable to supplier

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195379/‘doctrine-of-unjust-enrichment’-doesn’t-apply-to-fixed-price-contracts-excess-cst-paid-shall-be-refunded-guj-hc.aspx

Exp. incurred on implementation of software for smooth functioning of business was allowable as deduction

INCOME TAX-I : Expenditure incurred by assessee on implementation of software for smooth functioning of business, was to be allowed as deduction under section 37(1)

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SEBI issues FAQs on Portfolio Managers

The market regulator, SEBI has come up with FAQs on Portfolio Managers in order to provide more clarity. Portfolio manager is a body corporate, which, pursuant to a contract with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or funds of the client.

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Capital gain chargeable in year of receipt of compensation in case of compulsory acquisition of land: SC

INCOME TAX: Supreme Court affirms ruling of Punjab and Haryana High Court holding that capital gains arising out of land acquisition compensation were chargeable to income-tax under section 45 for previous year referable to date of award of compensation and not date of notification for acquisition

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Identity of payee Co. can’t be proved just by submitting affidavit signed by its directors to justify expenses

INCOME TAX : Where in course of reassessment proceedings, Assessing Officer disallowed business counseling charges paid to two companies, in view of fact that those companies were not traceable and their presence, infrastructure and nature of services rendered by them were also not proved at all, impugned disallowance was to be confirmed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195335/identity-of-payee-co-can’t-be-proved-just-by-submitting-affidavit-signed-by-its-directors-to-justify-expenses.aspx

Factual issue cannot be raised first time before ITAT if it never raised before AO during assessment

INCOME TAX : Where assessee challenged validity of assessment on ground that its name had been stuck off from Register of Companies before passing of assessment order, in view of fact that assessee voluntarily participated in assessment proceedings and did not bring aforesaid fact to notice of Assessing Officer, plea raised by assessee was to be rejected

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Credit co-operative society earning income from investments in banks not eligible to claim deduction u/s 80P

INCOME TAX : Interest which accrues on funds not required immediately by assessee-co-operative society for its business purpose and which have been only invested in specified securities as 'investment' cannot be said to be attributable either to activity mentioned in section 80P(2)(a)(i) or in section 80P(2)(a)(iii)

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Indian bank is not a service recipient of services provided by foreign bank for export remittance; No ST under RCM

GST/EXCISE/ST/VAT : Where appellant an Indian bank was providing banking services to importers/exporters by facilitating settlement of payment in connection with import and export of goods/services and there was no flow of consideration from appellant bank to foreign bank, appellant bank could not be said to be recipient of any service by foreign bank and, therefore, there would be no liability to pay service tax on a reverse charge mechanism

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No capital gains if possession of land wasn’t transferred due to termination of agreement to sell: ITAT

INCOME TAX I : While computing amount of disallowance under section 43B in respect of VAT and excise duty payable by assessee, revenue authorities were not justified in adding back closing balance of earlier year that was brought forward to tear under consideration

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195180/no-capital-gains-if-possession-of-land-wasn’t-transferred-due-to-termination-of-agreement-to-sell-itat.aspx

ITAT confirmed disallowance of business counseling charges as identity of payee companies weren’t proved

INCOME TAX : Where in course of reassessment proceedings, Assessing Officer disallowed business counseling charges paid to two companies, in view of fact that those companies were not traceable and their presence, infrastructure and nature of services rendered by them were also not proved at all, impugned disallowance was to be confirmed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195335/itat-confirmed-disallowance-of-business-counseling-charges-as-identity-of-payee-companies-weren’t-proved.aspx

Apex Court dismisses plea to transfer of funds from PM CARES to NDRF to fight COVID-19

COMPANY LAW/DISASTER MANAGEMENT ACT: NDRF a statutory fund is amenable to audit by Comptroller & Auditor General of India, whereas PM CARES Fund is a public charitable trust constituted after outbreak of COVID-19, hence nature of both being entirely different, no direction could be given to transfer funds collected in PM CARES Fund to NDRF

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Exp. incurred on awareness on agriculture is part of educational activity; Sec. 10(23C) exemption allowable

INCOME TAX : Where assessee trust formed for running educational institution, incurred expenses for awareness on agriculture, medical camps etc., said expenses could be regarded as part of educational activity and, thus, assessee's claim for exemption of income under section 10(23C)(vi) was to be allowed

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Exp. incurred in foreign currency not related to rendering services outside India to be included in export turnover

INCOME TAX : In case of assessee, a SEZ, while computing deduction under section 10AA, expenses incurred in foreign currency not meant for rendering any services outside India, could not be excluded from 'export turnover'

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No abuse of dominance by ‘Whatsapp’ on pre-installation of payment app: CCI

COMPETITION LAW: Where Informant a practicing advocate alleged that Facebook-owned WhatsApp abused its dominance in market for internet-based messaging application through smartphones to manipulate market for UPI enabled digital payment applications in its favour, however, there was neither any concrete allegation, nor any specific information to support competition concern of Informant; alleged contravention of provisions of section 4 not being made out, information was to be closed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195496/no-abuse-of-dominance-by-‘whatsapp’-on-pre-installation-of-payment-app-cci.aspx

Co-operative society is eligible for sec. 80P relief on interest from surplus parked in FDs

INCOME TAX : As far as deduction under section 80P(2)(d) is concerned, said provision does not make any distinction in regard to source of investment by co-operative society and, thus, in such a case, revenue is not required to look to nature of investment whether it is from surplus funds or otherwise

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CIT(A) can’t confirm penalty order mere on ground that submissions filed against it didn’t bear assessee’s signature

INCOME TAX : Commissioner (Appeals) could not confirm penalty order passed under section 271AAA merely on ground that written submissions filed against said order did not bear signature of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195322/cita-can’t-confirm-penalty-order-mere-on-ground-that-submissions-filed-against-it-didn’t-bear-assessee’s-signature.aspx

Customs Exemption: ‘Business Projectors’ compatible with multiple devices including computer eligible for exemption

GST/EXCISE/ST/VAT: Where Adjudicating Authority denied exemption claimed by appellant on basis of classification as business projectors under Heading No. 8528 6100 of First Schedule to Custom Tariff Act, 1975, order of Adjudicating Officer was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194972/customs-exemption-‘business-projectors’-compatible-with-multiple-devices-including-computer-eligible-for-exemption.aspx

Validity of order couldn’t be challenged if assessee voluntarily participated in assessment proceedings

INCOME TAX : Where assessee challenged validity of assessment on ground that its name had been stuck off from Register of Companies before passing of assessment order, in view of fact that assessee voluntarily participated in assessment proceedings and did not bring aforesaid fact to notice of Assessing Officer, plea raised by assessee was to be rejected

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195348/validity-of-order-couldn’t-be-challenged-if-assessee-voluntarily-participated-in-assessment-proceedings.aspx

Power of Arbitral Tribunal and CCI are not overlapping rules, Bombay High Court

COMPETITION LAW: While issues of contractual relief are within domain of Arbitral Tribunal, issues of violation of provisions of Competition Act are within exclusive domain of CCI; during pendency of proceeding before CCI, dispute regarding payment is arbitrable for reason that jurisdiction of CCI under Competition Act and jurisdiction of Arbitral Tribunal under an agreement are altogether different and distinct and are not overlapping

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Dividend Criteria for Equity Investment under 'Approved lnvestment

Dividend Criteria for Equity Investment under 'Approved lnvestment

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Sec. 36(1)(iii) disallowance valid as assessee failed to prove that interest free loan was for commercial purpose

INCOME TAX : Where Assessing Officer rejected assessee's claim for deduction under section 36(1)(iii) on ground that assessee had given interest free loan to its holding company, in view of fact that, assessee failed to prove that said loan was given for commercial purpose i.e. construction of residential project in joint venture with holding company, impugned disallowance was to be confirmed

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Sec. 41(1) cannot be invoked merely because liability remains outstanding for more than 3 years

INCOME TAX: Merely because liability had remained outstanding for more than three years and same was not written back in profit and loss account, application of provisions of section 41(1) could not be made to consider such liability as income for year under consideration without there being any remission or cessation of liability

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

Sec. 14A disallowance rightly enhanced by AO considering volume of investments in shares and dividend earned

INCOME TAX : Where Assessing Officer having regard to volume of investment in shares and quantum of dividend income earned thereon, invoked provisions of Rule 8D of 1962 Rules, read with section 14A and enhanced amount of disallowance for earning exempt income, disallowance so made was to be confirmed

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Sec. 41(1) cannot be invoked merely because liability is remained outstanding for more than 3 years

INCOME TAX: Merely because liability had remained outstanding for more than three years and same was not written back in profit and loss account, application of provisions of section 41(1) could not be made to consider such liability as income for year under consideration without there being any remission or cessation of liability

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No abuse of dominance by ‘Whatsapp’ on pre-installation of payment app: CCI

Where Informant a practicing advocate alleged that Facebook-owned WhatsApp abused its dominance in market for internet-based messaging application through smartphones to manipulate market for UPI enabled digital payment applications in its favour, however, there was neither any concrete allegation, nor any specific information to support competition concern of Informant; alleged contravention of provisions of section 4 not being made out, information was to be closed

from taxmann.com News https://www.taxmann.com/topstories/222330000000020850/no-abuse-of-dominance-by-‘whatsapp’-on-pre-installation-of-payment-app-cci.aspx

Filing of Form No. 62 by Amalgamated Co. is not mandatory to claim benefit of carry forward and set off of losses

INCOME TAX : In order to claim benefit of set-off of losses under section 72A, condition of filing Form No. 62 is only directory and non-compliance thereof would not disentitle assessee to claim carry forward losses to be set off against profits of company

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Shares received under amalgamation amounts to transfer; taxable as business profit if shares held as stock in trade

INCOME TAX : When assessee gets shares of amalgamated company in lieu of shares of amalgamating company, a 'transfer' does take place within meaning of section 2(47)

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

Invoking Section 50C provisions without referring matter to valuation officer not justified: ITAT

INCOME TAX : Where in respect of sale of property by assessee, Assessing Officer made addition to taxable income by invoking provisions of section 50C, in view of fact that valuation of property sold on basis of stamp duty valuation as on date of registration had been determined without referring matter to DVO, impugned addition made by Assessing Officer was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/32bKJ58

Rental income earned from leasing out properties in Software Technology Park liable to tax as business income

INCOME TAX : Where assessee developed software technology park and gave certain properties in said park on lease to different software companies, rental income earned by assessee from leased out properties was liable to tax as 'business income'

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Petition for reduction of share capital is to be allowed if all shareholders unanimously approve such reduction

COMPANY LAW : Where Articles of Association of company empowered it to reduce its share capital authorized by law by passing a special resolution and all shareholders had approved reduction including shareholders whose shares were being cancelled, petition for reduction of share capital was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/34h3TJR

SC admits revenue’s appeal questioning SetCom powers to entertain cases related to Black Money Act

INCOME TAX: Notice issued and accepted by respondents in SLP against impugned order of High Court holding that when order under section 245D came to be passed, respondents were not assessees as contemplated under Black Money Act; accordingly, provisions thereof did not apply to them and, therefore, undisclosed foreign income and assets of respondents had rightly been assessed under Income-tax Act

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195367/sc-admits-revenue’s-appeal-questioning-setcom-powers-to-entertain-cases-related-to-black-money-act.aspx

SEBI’s Consultation Paper on recalibration of threshold for Minimum Public Shareholding norms in CIR

The Market Regulator, SEBI has come up with consultation paper with an objective to seek comments / views from the public and market intermediaries on Recalibration of threshold for Minimum Public Shareholding norms (MPS) in companies which undergo Corporate Insolvency Resolution Process (CIRP) and seek relisting of its shares pursuant to implementation of the approved resolution plan.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020847/sebi’s-consultation-paper-on-recalibration-of-threshold-for-minimum-public-shareholding-norms-in-cirp-cases.aspx

SEBI releases consultation paper on Format for ‘Business Responsibility and Sustainability Reporting

The Market Regulator, SEBI has released for public consultation a new format for business responsibility and sustainability reporting, covering environmental, social and governance perspectives, which shall be applicable to the top 1,000 listed entities by market capitalization.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020846/sebi-releases-consultation-paper-on-format-for-‘business-responsibility-and-sustainability-reporting’.aspx

Process of sieving carried out to separate dust particles from raw material amounts to ‘manufacturing’

INCOME TAX : Process of sieving carried out by assessee in its SEZ unit in order to separate dust particles from raw material such as silicon, sand and waste before reselling same as semi finished product in market amounted to 'manufacturing' and, thus, assessee was eligible to claim exemption under section 10AA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195320/process-of-sieving-carried-out-to-separate-dust-particles-from-raw-material-amounts-to-‘manufacturing’.aspx

IRDAI issues report on Loss Prevention and Minimization in General Insurance Industry

The IRDAI has come up with report on loss prevention and minimization in general insurance industry wherein various provisions related to international experience, Indian experience, conceptualization of an organization for loss prevention and mitigation, loss prevention and minimization in property motor insurance and so on have discussed in details.

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Surrendering right over claiming Sec. 10(34) deduction can’t be a reason for not invoking provisions of Sec. 14A

INCOME TAX-I : Assessee could not claim that provisions of section 14A could not be invoked because it had surrendered its right over claiming deduction under section 10(34) in respect of dividend income earned on shares

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195284/surrendering-right-over-claiming-sec-1034-deduction-can’t-be-a-reason-for-not-invoking-provisions-of-sec-14a.aspx

Provisions of section 18 of SARFAESI are constitutionally valid: Madras High Court

COMPANY LAW/SARFAESI : In view of fact that pre-deposit provision i.e. second and third proviso in section 18 is applicable only to 'borrowers' as defined in Act and, moreover, DRAT is vested direction to reduce such pre-deposit to not less than 25 per cent of debt, said provision cannot be said to be arbitrary, onerous or unreasonable and, therefore, petition challenging constitutional validity of said provisions, was to be dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/327vcU2

SC directs constitution of High Powered Committee for release of prisoners on parole in view of COVID-19

COMPANY LAW/CONSTITUTION OF INDIA : SC directed constitution of High Powered Committee for release of prisoners on parole or interim bail in view of situation arising out of Corona virus (COVID-19)

from www.taxmann.com Latest Case Laws https://ift.tt/2Q2dRGC

Customs duty leviable where goods imported did not match with description of goods given under Exemption Notification

GST/EXCISE/ST/VAT: Where goods imported by appellant did not match with description of items in Sl. No. 22 of List 37 in Sl. No. 363A of Notification No. 21/2002 - Cus., dated 1-3-2002 as Skin barriers micropore surgical tapes, appellant was not eligible to avail benefit of exemption in terms of Notifications

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

Cash deposits to be treated as income if assessee didn’t produce material regarding source of deposits

INCOME TAX : Where assessee had failed to produce any material to authenticate his contention that cash deposits in his account were on account of sales being made by him from Kirana business, tax authorities were justified in making addition of unexplained cash entries in bank account in hands of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000193035/cash-deposits-to-be-treated-as-income-if-assessee-didn’t-produce-material-regarding-source-of-deposits.aspx

Apex Court dismisses plea to transfer of funds from PM CARES to NDRF to fight COVID-19

The Apex Court has dismissed petition that sought for transfer of funds collected under PM CARES Fund set up under COVID 19 relief to National Disaster Relief Funds (NDRF). The Court clarified that PM CARE is a public charitable trust and anyone can contribute into it but contribution received by a public trust like PM CARES cannot be transferred to fund like NDRF.

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​Amendment of Income-tax Rules, 1962 rules for providing conditions and guidelines for Pension Funds u/s 10(23FE) of the Income-tax Act, 1961- reg

Publish Date : Monday, August 17, 2020

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Apex Court dismisses plea to transfer of funds from PMCARES to NDRF to fight COVID-19

The Apex Court has dismissed petition that sought for transfer of funds collected under PM CARES Fund set up under COVID 19 relief to National Disaster Relief Funds (NDRF). The Court clarified that PM CARE is a public charitable trust and anyone can contribute into it but contribution received by a public trust like PM CARES cannot be transferred to fund like NDRF.

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Daughter has equal rights as son as coparcener of a Hindu Joint Family under Hindu Succession Act: SC

COMPANY LAW/SUCCESSION ACT: Daughter born before or after amendment of Hindu Succession Act, 1956 with effect from 9-9-2005 is coparcener of joint Hindu Family in same manner as son with same rights and liabilities and it is not necessary that father coparcener should be living as on 9-9-2005

from www.taxmann.com Latest Case Laws https://ift.tt/3ayaq3X

Provision of Sec. 47(v) applies even if certain shares of subsidiary Co. are held by nominees of holding Co.

INCOME TAX : Where assessee's claim for exemption of profit under section 47(v) in respect of sale of land to holding company was rejected on ground that certain shares of assessee company were held by nominees of holding company, in view of fact that nominees had no individual rights in said shares and those shares were held by them merely on behalf of holding company, impugned order rejecting assessee's claim was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3h8WwHJ

No concealment penalty if exemption wrongly claimed was withdrawn by assessee in assessment proceedings

INCOME TAX : Where assessee raised claim for exemption under section 10B bonafidely as there was confusion over admissibility of same on account of statement of Union Finance Minister, extending Sunset clause for exemption in question for 100 percent EOUs up to year 2015, in view of fact that said claim was subsequently withdrawn by assessee itself in assessment proceedings, it not being a case of furnishing inaccurate particulars of income,

from www.taxmann.com Latest Case Laws https://ift.tt/3g7IdBS

Imported camera capturing both still image & video, fall under tariff item 8525 8020, exempted from Customs duty

GST/EXCISE/ST/VAT : Imported camera having facility of digital still camera as well as capacity of capturing video fell under headings 8525, 8020 and are eligible to nil duty exemption under Notification No. 50/2017 Cus. dated 30-06-2017

from www.taxmann.com Latest Case Laws https://ift.tt/2E5xT0l

Partial Credit Guarantee Scheme 2.0 extended with greater flexibility to respond to emerging demands

The Partial Credit Guarantee Scheme (PCGS) 2.0 was launched on 20.05.2020 to provide Portfolio Guarantee for purchase of Bonds or Commercial Papers (CPs) with a rating of AA. It was envisaged to purchase Bonds/ CPs of Rs. 45,000 crore under PCGS 2.0 of which the maximum headroom permissible for purchase of Bonds/ CPs rated AA/AA- was 25% of the total portfolio i.e. Rs. 11,250 crore.

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MCI regulations not applicable to Pharmaceutical Cos; freebies to medical practitioners were allowable: ITAT

INCOME TAX: Where Assessing Officer during regular assessment, had consciously formed an opinion that out of sales promotion expenses incurred by assessee pharma company, only those expenses incurred for giving gifts to doctors were liable to be disallowed under section 37(1), reassessment proceedings initiated not on basis of any fresh tangible material or any new information was to be quashed for want of jurisdiction

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

Contrived loss allowed by ITAT on basis of material on records didn’t require any interference: HC

INCOME TAX : Where in block assessment proceedings Tribunal finding that assessee had already disclosed contrived loss by making necessary entries in its books of account, allowed assessee's claim for deduction of same, order so passed did not require any interference

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195314/contrived-loss-allowed-by-itat-on-basis-of-material-on-records-didn’t-require-any-interference-hc.aspx

Partnership firm ought to be made an accused in a cheque dishonour case involving a partnership firm: HC

FEMA, BANKING & INSURANCE: In a cheque dishonour case involving a partnership firm, complaint cannot be maintained against partners of firm without making partnership firm as an accused in complaint

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

No requirement of withholding tax while making payment of reimbursement of exp. incurred by AE outside India

TRANSFER PRICING : Where in respect of purchase of raw material from AE, TPO made certain addition to assessee's ALP by applying TNMM, in view of fact that assessee had not given full data in support of its contention that ALP was to be determined on basis of CUP method, impugned addition was to be deleted and, matter was to be remanded back for disposal afresh

from www.taxmann.com Latest Case Laws https://ift.tt/3g3ZQ5F

Sum received as security for providing corporate guarantee couldn’t be treated as deemed dividend

INCOME TAX : Where assessee received certain amount from subsidiary company as advance towards security for providing corporate guarantee, it could not be brought to tax as deemed dividend under section 2(22)(e)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195272/sum-received-as-security-for-providing-corporate-guarantee-couldn’t-be-treated-as-deemed-dividend.aspx

Juice of aloe vera & amla classifiable under heading 2009, while their powders are covered under heading 1309: CESTAT

GST/EXCISE/ST/VAT: Aloe vera juice and amla juice were classifiable under Heading No. 2009 being later entry of two headings i.e., Heading Nos. 1302 and 2009 and aloe vera powder and amla powder were classifiable under Heading No. 1309

from www.taxmann.com Latest Case Laws https://ift.tt/3awI1v9

SBI’s Rate of Interest as on 01-04-2020

To determine the value of the perquisite arising from such free or concessional loan, the Rate of Interest charged by the SBI, as on the first day of the relevant financial year, in respect of the similar loan is considered. The State Bank of India has released the Rate of Interest as on 01-04-2020 which is discussed in this article.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020836/sbi’s-rate-of-interest-as-on-01-04-2020.aspx

Notification No. 66/2020 [F. No. 187/3/2020-ITA-I] / SO 2758(E)

Publish Date : Thursday, August 13, 2020

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Notification No. 65/2020 [F. No. 187/3/2020-ITA-I] / SO 2757(E)

Publish Date : Thursday, August 13, 2020

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Notification No. 64/2020 [F. No. 187/3/2020-ITA-I] / SO 2756(E)

Publish Date : Thursday, August 13, 2020

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Notification No. 63/2020 [F. No. 187/3/2020-ITA-I] / SO 2755(E)

Publish Date : Thursday, August 13, 2020

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Notification No. 62/2020 [F. No. 187 /3 /2020- ITA-1] / SO 2754(E)

Publish Date : Thursday, August 13, 2020

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Notification No. 59/2020 [F. No 285/30/2019-IT (Inv.V) CBDT] / SO 2682(E)

Publish Date : Monday, August 10, 2020

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Notification No. 58/2020 [F. No. 370133/08/2020-TPL] / GSR 499(E)

Publish Date : Monday, August 10, 2020

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Tribunal empowered to refer matter to Central Govt. for investigation into affairs of corporate debtor: NCLAT

COMPANY LAW : In case an exfacie/primafacie case is made out, then, Tribunal is empowered to refer matter to Central Government for an investigation by inspectors into affairs of corporate debtor and upon such investigation, if any action is required to be taken and if Central Government subjectively opines that subject matter in issue needs an investigation, through Serious Fraud Investigation Office, it may proceed in accordance with law

from www.taxmann.com Latest Case Laws https://ift.tt/30V5Ol5

Director who resigned from Co. but failed to file necessary form with RoC would be treated as disqualified director

COMPANY LAW : Where Petitioner resigned from Board of Directors of company but failed to file necessary Form with Registrar of Companies, his prayer to restrain respondent-authorities from treating him as a disqualified director was to be rejected; since he was disqualified as a Director, he could not access website of Ministry of Corporate Affairs to file returns or forms as a Director of company

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

ITAT can’t conclude that exchange of asset vide settlement deed didn’t result in transfer without assigning reasons

INCOME TAX : Where Tribunal, without assigning any reasons, concluded that properties exchanged between assessee and his brother in terms of settlement deed did not attract provisions of section 2(47), matter was to be remanded back for disposal afresh

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195259/itat-can’t-conclude-that-exchange-of-asset-vide-settlement-deed-didn’t-result-in-transfer-without-assigning-reasons.aspx

Sec. 54 exemption is available even if sum wasn’t deposited in Capital Gain Scheme: ITAT

INCOME TAX : Where assessee had substantially complied with provisions of section 54(1) by purchasing new house property within prescribed time period, a mere non-compliance of procedural requirement under section 54(2) i.e. some delay in depositing amount in CGAS, could not stand in way of assessee in getting benefit under section 54

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195214/sec-54-exemption-is-available-even-if-sum-wasn’t-deposited-in-capital-gain-scheme-itat.aspx

Notification No. 61/2020 [F. No. 370149/154/2019-TPL] / SO 2746(E)

Publish Date : Thursday, August 13, 2020

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Notification No. 60/2020 [F.No. 370149/154/2019-TPL] / SO 2745(E)

Publish Date : Thursday, August 13, 2020

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Commission paid to directors for promoting sales allowable if it was in terms of board resolution: ITAT

INCOME TAX: If directors, in terms of Board resolution, were entitled to receive commission for rendering services to company and if it was in terms of employment on basis of which they had been rendering services, then such remuneration/commission would be part and parcel of salary

from www.taxmann.com Latest Case Laws https://ift.tt/33VMN43

Unexplained cash receipts cannot be set off with unaccounted cash payments in absence of any co-relation

INCOME TAX : Where there was no co-relation between unexplained cash receipts and unexplained investment of assessee-broker unearthed during course of search, assessee was not entitled to claim set-off of said income against unexplained investment made

from www.taxmann.com Latest Case Laws https://ift.tt/30TV0nj

AO to pass fresh order without getting influences by ITAT’s observation in case of open remand

INCOME TAX : Where assessee raised a plea that while remanding matter to assessing authority, Tribunal had given certain directions and its views about exchange fluctuations to be treated as speculative loss or business loss and, therefore, it was not an open remand which was likely to prejudice case of assessee, Assessing Officer was to be directed to pass fresh orders, uninfluenced by any observations made by Tribunal

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195274/ao-to-pass-fresh-order-without-getting-influences-by-itat’s-observation-in-case-of-open-remand.aspx

SVLDRS can’t be availed by filing returns manually which ought to be filed electronically within specified period

GST/EXCISE/ST/VAT : Where petitioner had not filed returns in electronic form within specified period, he could not file return in manual form for purpose of obtaining benefit of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195187/svldrs-can’t-be-availed-by-filing-returns-manually-which-ought-to-be-filed-electronically-within-specified-period.aspx

PM launches ‘Transparent Taxation – Honoring the Honest’ platform; introduced Taxpayers Charter

The Prime Minister of India, Shri Narendra Modi has launched platform for ‘Transparent Taxation – Honoring the Honest’ to carry forward the journey of direct tax reforms. The PM has unveiled Faceless assessments, Faceless appeals & Taxpayers Charter. The event has been witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountant’s associations and also eminent taxpayers, apart from the officers and officials of Income-tax Department.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020829/pm-launches-‘transparent-taxation-–-honoring-the-honest’-platform-introduced-taxpayers-charter.aspx

No repeated adjournments for orders or for pronouncement of judgment would be permissible even during lockdown: HC

INCOME TAX: Repeated adjournments for orders or for pronouncement of judgment where arguments have been heard and orders have been reserved would not be permissible even during lockdown

from www.taxmann.com Latest Case Laws https://ift.tt/31ItSa7

Charges paid by ‘Star India’ for placing signals on preferred band liable for Sec. 194C TDS

TRANSFER PRICING: Where assessee, acting as agent for advertising as well as for overseas media companies and carried all channel subscription business., paid certain amount towards brand license and claimed depreciation, in view of fact that said fee had been approved by RBI, therefore no disallowance of expenses could be made

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195147/charges-paid-by-‘star-india’-for-placing-signals-on-preferred-band-liable-for-sec-194c-tds.aspx

Data must be relating to same financial year in which international transaction were entered by tested party

TRANSFER PRICING: Data to be used for comparison should be data relating to same financial year in which international transaction were entered by tested party

from www.taxmann.com Latest Case Laws https://ift.tt/33NgRyI

ITAT quashed assessment order passed in name of Co. which was already amalgamated with another Co.

INCOME TAX: Where pursuant to scheme of amalgamation as approved by High Court, a company was merged with assessee company and amalgamating company was not in existence at time of conduct of assessment proceedings as well as on date of passing Assessment Order, Assessment Order passed in name of amalgamating company being void ab initio was to be set aside

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

‘Bar Council of Delhi’ engaged in advancement of general public utility; eligible for registration u/s 12AA & 80G

INCOME TAX: Where appellant, Bar Council of India was engaged in safeguarding rights, privileges and interest of advocates, thus, its dominant purpose being of advancement of general public utility, it would be entitled for registration under section 12AA and consequent exemption under section 80-G

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195228/‘bar-council-of-delhi’-engaged-in-advancement-of-general-public-utility-eligible-for-registration-us-12aa-80g.aspx

AO can’t withhold refund by issuing scrutiny notice without recording justifiable reasons: Delhi HC

INCOME TAX: Withholding of refund under section 241A, pursuant to notice under section 143(2), without recording justifiable reasons is not justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195270/ao-can’t-withhold-refund-by-issuing-scrutiny-notice-without-recording-justifiable-reasons-delhi-hc.aspx

Exp. incurred on renovation and repair of hotel rooms are revenue in nature; deduction allowable

INCOME TAX : Where assessee, running a hotel, incurred certain expenses on renovation and repair of hotel rooms, same was to be allowed as deduction under section 37(1)

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

HC allows sec. 54F relief even if sum wasn’t deposited in Capital Gain Scheme before due date of filing ITR

INCOME TAX: Where assessee invested sale proceeds of old asset in new property before due date of filing belated return and took possession within three years, she was entitled to exemption under section 54F though she had not invested sale proceeds in Capital Gain Account Scheme before due date of filing of return under section 139(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195246/hc-allows-sec-54f-relief-even-if-sum-wasn’t-deposited-in-capital-gain-scheme-before-due-date-of-filing-itr.aspx

No Sec. 263 revision just on probability and likelihood to find error in assessment order: ITAT

INCOME TAX: When confronted during assessment, assessee informed that a bank account was not reflected in his return and Assessing Officer assessed deposits pertaining to undisclosed business receipts/undisclosed turnover and computed income, revisional jurisdiction was not to be exercised

from www.taxmann.com Latest Case Laws https://ift.tt/2F11I2n

Writ filed against order of Commissioner (Appeal) demanding ST rejected as the order was appealable: Madras HC

GST/EXCISE/ST/VAT : Writ petition filed by assessee against order of Commissioner (Appeal) holding assessee liable to payment of service tax was rightly rejected as statutory remedy of appeal was available to assessee and question whether assessee would be liable for payment of service tax was a question of fact to be determined on strength of contract agreement

from www.taxmann.com Latest Case Laws https://ift.tt/3a5SqgN

Additional dep. on goodwill subsequent to amalgamation can be claimed during assessment if not made in ITR

TRANSFER PRICING: Company having super normal profits or highly unstable margins should not be ideally considered as good comparable

from www.taxmann.com Latest Case Laws https://ift.tt/3ig8MX9

Appeal to appellate tribunal from order of commission was to dismissed as being barred by limitation: NCLAT

COMPETITION LAW : Where appellant preferred appeal before Appellate Tribunal after 768 days of passing of impugned order by Commission and sought condonation of delay by exclusion of period of 693 days consumed in litigation before High Court, however, appellant had not been able to demonstrate a sufficient cause preventing him from preferring appeal within statutory period of 60 days, appeal was to be dismissed as being barred by limitation

from www.taxmann.com Latest Case Laws https://ift.tt/3ieMt4b

RBI provides additional monetary support to housing, rural and priority sectors

RBI provides additional monetary support to housing, rural and priority sectors

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Stale demand drafts not claimed by customers couldn’t be treated as income of bank: Madras HC

INCOME TAX: Amount of stale demand drafts not claimed by customers and which had become barred by limitation could not be treated as income of bank

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194220/stale-demand-drafts-not-claimed-by-customers-couldn’t-be-treated-as-income-of-bank-madras-hc.aspx

Stale deman drafts not claimed by customers couldn't be treated as income of bank: Madras HC

INCOME TAX: Amount of stale demand drafts not claimed by customers and which had become barred by limitation could not be treated as income of bank

from www.taxmann.com Latest Case Laws https://ift.tt/3fA0OXg

Mere non-disclosure of exempt income in ITR wouldn't amount to escaped income; SC dismissed SLP

INCOME TAX: SLP dismissed against High Court ruling that where gain from sale of shares by assessee was exempt from tax in terms of section 10(38), mere non- disclosure of such gain on sale of shares in return of income would not mean that capital gain from sale of shares had escaped assessment

from www.taxmann.com Latest Case Laws https://ift.tt/3gDuJ20

SC dismissed SLP as finding of AO was based on evidence detailed appreciation of evidence on record

INCOME TAX: SLP dismissed as withdrawn against High Court ruling that where Assessing Officer made addition to assessee's income on ground that there was mismatch between assessee's consumption of raw material and output of various drugs manufactured by assessee, in view of fact that finding of Assessing Officer was based on detailed appreciation of evidence on record, impugned addition was to be confirmed

from www.taxmann.com Latest Case Laws https://ift.tt/2DGm2oU

SLP agianst ruling deleting additions as no nexus between cogent materials between doc. seized and assessee

INCOME TAX: SLP dismissed against High Court ruling that where Assessing Officer made addition to assessee's income in respect of unexplained capital gain on transfer of shares on basis of documents seized during course of search of another person, since Assessing Officer failed to show nexus on basis of cogent material between documents seized and assessee, impugned addition was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/2EX7su0

Appeal to appellate tribunal from order of commission was to dismissed as being by limitation: NCLAT

COMPETITION LAW : Where appellant preferred appeal before Appellate Tribunal after 768 days of passing of impugned order by Commission and sought condonation of delay by exclusion of period of 693 days consumed in litigation before High Court, however, appellant had not been able to demonstrate a sufficient cause preventing him from preferring appeal within statutory period of 60 days, appeal was to be dismissed as being barred by limitation

from www.taxmann.com Latest Case Laws https://ift.tt/33yiq3u

Legal heir isn’t statutory obliged to intimate death of assessee; HC quashes notice issued to assessee

INCOME TAX : In absence of a statutory provision, a duty cannot be cast upon legal representatives to intimate factum of death of assessee to department and, thus, where Assessing Officer issued a notice to assessee under section 148 after his death and, in such a case, it could not have been validly served upon assessee, said notice being invalid, was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195163/legal-heir-isn’t-statutory-obliged-to-intimate-death-of-assessee-hc-quashes-notice-issued-to-assessee.aspx

RBI announces monetary policy; keeps repo rate unchanged at 4%

RBI has issued the Monetary Policy Statement, 2020-21, the policy repo rate under the liquidity adjustment facility (LAF) has been kept unchanged at 4.0 %. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 % and the MSF rate and the Bank Rate at 4.25 %. “These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 % within a band of +/- 2 %, while supporting growth.” Said RBI

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HC grants bail to promoter in absence of rationale to keep him in judicial custody

FEMA, BANKING & INSURANCE : Where applicant who was arrested by Enforcement Directorate for offence under section 3 on ground that he had misappropriated or 'siphoned-off' monies lent by REL to entities owned or controlled by him sought for bail, there being no rationale for continuing applicant's judicial custody as an under trial applicant was to be granted bail subject to certain stipulated restrictions

from www.taxmann.com Latest Case Laws https://ift.tt/2DoG0ow

Sec. 43CB providing POCM method for determining profit from construction contract is mandatory w.e.f. AY 2017-18

INCOME TAX : Provisions of section 43CB prescribing percentage completion method for determining profits and gains of a construction company are to be applied mandatorily with effect from 01-04-2017 i.e. assessment year 2017-18 onwards and, therefore, assessment completed in case of assessee, a construction company, on basis of project completion method in relevant assessment year could not be declared as invalid on aforesaid ground

from www.taxmann.com Latest Case Laws https://ift.tt/3ie5y6s

Notice rightly issued to non-ITR filer firm on basis of statement of partner that he received profit from it

INCOME TAX : Where, during search conducted upon a partner of assessee firm, Assessing Officer clearly recorded a satisfaction that a document was found which contained details with regard to sales, gross profit and net profit of assessee firm and, further, said partner had recorded a statement on oath that he had received profit from assessee firm, however, as on date of search, no return of income was filed by assessee,

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

Karnataka HC quashes writ petition as there is alternative remedy available for assessee

INCOME TAX: In existence of an alternative and efficacious remedy, it would be improper for a writ court to exercise its jurisdiction and, thus, question as to whether notice issued under section 147 is justified or not is a question of fact and as questions of fact cannot be gone into by a writ court, it would necessarily have to be considered by concerned authorities

from www.taxmann.com Latest Case Laws https://ift.tt/33rM5ep

SAT upheld penalty imposed upon broker for non-disclosure of transfer of its business to Group Co.

COMPANY LAW/SEBI: Where appellant stock broker did not make full disclosure of transfer of its business to a group company as required under clause 36 of Listing Agreement, appellant had violated clause 36 of Listing Agreement, read with section 21 of SCRA and penalty was to be imposed upon it

from www.taxmann.com Latest Case Laws https://ift.tt/3gvBCT3

Issue of shares to QIBs to be held as issue of shares to public; exp. incurred on it deductible u/s 35D

INCOME TAX : In case of public limited company, issue of shares to Qualified Institution Buyers ( QIB) would be regarded as issue of shares to 'public' and, thus, expenses incurred on said issue would be eligible for deduction under section 35D

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

HC directed to revoke attachment of bank account subject to deposit of 20% of tax demand

INCOME TAX : Where assessee had been granted stay of 80 per cent disputed demand subject to payment of 20 per cent demand, in view of fact that there had been atachment of bank account, attachment already resorted to would be limited to 20 per cent of demand

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

Part of exp. incurred on sold project which was spill over next year couldn’t be considered as prior period exp.

INCOME TAX-I : Where Assessing Officer made certain addition to assessee's income in respect of sale of property, in view of fact that said amount represented outstanding receivable from buyer in respect of property sold in earlier assessment year, impugned addition was to be deleted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195142/part-of-exp-incurred-on-sold-project-which-was-spill-over-next-year-couldn’t-be-considered-as-prior-period-exp.aspx

ITAT slams AO for not allowing benefit of Sec. 43(5)(e); loss due to suspension of NSEL operation was business loss

INCOME TAX: Where assessee was in business of commodity derivatives and revenue had also accepted income from transactions of assessee as business income and not as income from speculation for all earlier years, if owing to suspension of operations by NSEL, assessee could not recover amounts from brokers which were advanced for purchase of commodities, such loss was allowable under section 28

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Delhi HC quashed writ seeking stay on demand for tax recovery as assessee didn’t approached HC with clean hands

INCOME TAX: Where assessee had requested for stay on demand for recovery of tax under section 220 contending that prepaid taxes lying with revenue were higher as compared to 20 percent of disputed demand and interim stay was granted, but it was found that assessee itself computed book profit at Rs. 1127.45 crores and, thus ,would be liable to pay tax of Rs. 224.71 crores and this was minimum tax liability of assessee and, thus, assessee had not approached High Court with clean hands and,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195221/delhi-hc-quashed-writ-seeking-stay-on-demand-for-tax-recovery-as-assessee-didn’t-approached-hc-with-clean-hands.aspx

Sum not received from brokers due to suspension of operation by NSEL was allowable loss

INCOME TAX: Where assessee was in business of commodity derivatives and revenue had also accepted income from transactions of assessee as business income and not as income from speculation for all earlier years, if owing to suspension of operations by NSEL, assessee could not recover amounts from brokers which were advanced for purchase of commodities, such loss was allowable under section 28

from www.taxmann.com Latest Case Laws https://ift.tt/2BX6gpp

Courses approved by Directorate General of Shipping, covered in negative list, not leviable to ST: CESTAT, Bangalore

GST/EXCISE/ST/VAT : Subject courses had been approved by Director General of Shipping, Ministry of Surface Transport, Government of India, in consonance with provisions of the Merchant Shipping Act, 1958 - Whether courses assumed to be of statutory nature and hence, would qualify as being "recognised under the law" and consequently, eligible for claiming exclusion from levy of service tax both in 'pre-negative list' and 'negative list' service taxation regime

from www.taxmann.com Latest Case Laws https://ift.tt/2Xtq6QG

Amount received by Telecom operator for early termination of contract is consideration for supply of service: ECJ

GST/EX/ST/VAT/(EU): Amounts received by an economic operator in event of early termination, for reasons specific to customer, of a service contract requiring compliance with a tie-in period in exchange for granting that customer advantageous commercial conditions, must be considered to constitute remuneration for a supply of services for consideration

from www.taxmann.com Latest Case Laws https://ift.tt/2Dm2iaf

Director can be proceeded against for contravention FERA if he was in charge of company affairs

FEMA, BANKING & INSURANCE: Necessary ingredient for proceeding against a Director of a company for contravention of provisions of FERA, 1973 shall be that at time offence was committed, Director was in-charge of and was responsible to company for conduct of business of company

from www.taxmann.com Latest Case Laws https://ift.tt/3jZb7HG

Agricultural land not covered under ambit of Sec. 56(2)(vii)(b) if it is not capital assets u/s 2(14): ITAT

INCOME TAX: Agricultural land purchased by assessee was not governed by provisions of section 56(2)(vii)(b) since said land was not capital asset as per section 2(14) and hence, no addition could be made in hands of assessee

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

SLP granted against ruling that insurance Co. not liable to TDS on commission paid for receiving reinsurance premium

INCOME TAX: SLP granted against High Court ruling that prior to assessment year 2011-12, there was no provision which required revenue to disallow deduction of loss on sale of investment made by general insurance companies, hence same could not have been disallowed

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

SEBI issues one time settlement scheme, 2020

The Scheme proposes to provide a onetime settlement opportunity to the entities that have executed trade reversals in the stock options segment of BSE during the period from Apr 1, 2014 to Sep 30, 2015 against whom any proceedings are pending. Under the Scheme, the entities who have executed trade reversals on the stock options segment of BSE during the period from Apr 1, 2014 to Sep 30, 2015 against whom any proceedings are pending are eligible to avail the one time settlement opportunity.

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No reassessment on issues which were subject matter of proceedings under sections 143(3) and 263

INCOME TAX : Where Assessing Officer initiated reassessment proceedings on ground that assessee had raised excess claim of depreciation in respect of water supply and drainage system, in view of fact that said reason for reopening of assessment was subject matter of proceedings under section 143(3) and thereupon proceedings under section 263, once again, for very same reason, power under section 147 could not be invoked and, thus, impugned reassessment proceedings were to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/30j6bWi

Provisions of Sec. 164(2)(a) cannot be allowed to take a retrospective effect under the Cos. Act, 2013

COMPANY LAW : When disqualification clause was not attracted to directors of private companies under old 1956 Act, same cannot be allowed to take a retrospective effect under 2013 Act, when provision of section 164(2)(a) came into force only from 1-4-2014

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

Delay of 316 days in appealing against delist order without any sufficient clause for delay couldn’t be condoned

COMPANY LAW/SEBI : Application for condonation of delay of 316 days in filing appeal against order of being delisted from stock exchange, without showing any sufficient/plausible clause for delay would not be maintainable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000191646/delay-of-316-days-in-appealing-against-delist-order-without-any-sufficient-clause-for-delay-couldn’t-be-condoned.aspx