CBDT extends time limit for compulsory selection of returns for complete scrutiny to 31-10-2020

Considering the difficulties faced due to COVID-19 pandemic and PAN migration related issues, the CBDT has extended the date for selection of cases for compulsory scrutiny on the basis of the parameters prescribed in the CBDT Circular No. 225/126/2020/ITA-II, dated 17-9-2020, from 30-09-2020 to 31-10-2020

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Holding of seminar by trust isn’t a business activity if it was held with sole intent of attaining object of trust

INCOME TAX : Where assessee-trust, set up to address national issues relating to real estate sector, earned revenue from activities of holding conventions, exhibitions etc., since activities that were carried out by assessee were with sole intent of attaining object for which trust was established, activities of assessee would not be hit by exclusion carved out in definition of 'charitable purpose' in section 2(15) and as such, assessee was eligible for exemption under section

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196067/holding-of-seminar-by-trust-isn’t-a-business-activity-if-it-was-held-with-sole-intent-of-attaining-object-of-trust.aspx

STCG losses rightly disallowed as assessee invested only in high risk stocks of Co. with no business activities

INCOME TAX : Where assessee was not a regular investor in shares and had invested only in high risk stocks of obscure companies with no business activity or asset which were identified as 'Penny Stocks', Assessing Officer had correctly concluded that assessee had entered into a pre-arranged sham transaction so as to convert unaccounted money into accounted money in guise of capital loss; alleged short term capital loss was rightly disallowed

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Bombay HC set aside reassessment initiated by AO on mere change of opinion

INCOME-TAX : Where assessee during assessment submitted that it had transferred equity shares of ZEE to its related entity at nil consideration to consolidate onshore media assets including shares of listed companies and requested to treat said transfer as gift not liable to tax under section 45 and Assessing Officer passed assessment order accepting said claim but after more than four years,

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Sum paid to BMC for increasing floor space index is not a commercial right and should be added in cost of building

INCOME TAX: Assessee paid a premium to Government of Maharashtra and BMC in lieu of grant of additional FSI. With grant of additional FSI, assessee got permission to increase size of total building by constructing additional floors or additional building to extent of FSI available and claimed depreciation on same at 25 per cent claiming it to be a business/commercial right. However,

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Trade credit can’t be equated with usance period on credit availed by Indian importer from Indian Bank

FEMA, BANKING & INSURANCE : Where petitioner-importers situated in India had availed credit facilities from respondent bank which was not an overseas bank but a bank situated in India and petitioner filed writ petition stating that petitioners were entitled to an extension of usance period of Letter of Credit Facility sanctioned to petitioners from 180 days to 270 day by seeking to equate Trade Credit with usance period,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196177/trade-credit-can’t-be-equated-with-usance-period-on-credit-availed-by-indian-importer-from-indian-bank.aspx

30 FAQs on new provision requiring collection of TCS on sale of goods

With effect from 01-10-2020, the Finance Act, 2020 inserted Sub-Section (1H) in Section 206C. In this article, we have covered all Frequently Asked Questions (FAQs) about the requirement to collect TCS on sale of goods with effect from 01-10-2020.

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CBDT further extends due date for filing of ITR for Assessment year 2019-20 to 30-11-2020

Considering the difficulties being faced by taxpayers due to the Covid-19 pandemic, the CBDT has further extended the due date for filing of revised and belated Income tax return for Assessment year 2019-20 from 30-09-2020 to 30-11-2020.

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ITAT referred matter to larger bench to examine meanings of 'paid' appearing in Article 11 of India-Cyprus DTAA

INTERNATIONAL TAXATION : Matter referred to Larger Bench to examine connotations of expression 'paid' appearing in article 11 as in various decisions of Tribunal, there was no discussion about connotations of expression 'paid' and these decisions simply proceed on basis that since expression 'paid' is used in article 11(1) of India Cyprus tax treaty, taxability of interest can only be on cash basis

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The Code on Social Security, 2020 gets assent of the President

Parliament has received the assent of the President on the 28th September, 2020 The Code on Social Security, 2020. The objective of the Code is to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors and for matters connected therewith or incidental thereto.

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President gives assent to the Occupational Safety, Health And Working Conditions Code, 2020

Parliament has received the assent of the President on the 28th September, 2020 on the Occupational Safety, Health and Working Conditions Code, 2020. The objective of the Code is to consolidate and amend the laws regulating the occupational safety, health and working conditions of the persons employed in an establishment and for matters connected therewith or incidental thereto.

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President nods to the Banking Regulation (Amendment) Act, 2020

The President has given his assent to The Banking Regulation (Amendment) Act, 2020. The Amendment Act brings the cooperative bank under the supervision of the RBI. It further allows RBI to initiate a scheme for reconstruction or amalgamation of a bank without placing it under moratorium.

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President gives assent to the Industrial Relations Code, 2020

Parliament has received the assent of the President on the 28th September, 2020 on the Industrial relation Code, 2020. The objective of the Industrial relation Code, 2020 to consolidate and amend the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes and for matters connected therewith or incidental thereto.

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CBI investigation was justified in case involving fraudulent deals along with default in repayment of loans: HC

FEMA, BANKING & INSURANCE : Where petitioners availed huge loans which were outstanding and entered into fraudulent deals and fabrication of records, petitioner's case was not merely a civil case but was to be investigated by CBI for offences under IPC and section 13 of Prevention of Corruption Act

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The Epidemic Diseases (Amendment) Act, 2020 is effective from Apr 22, 2020

The Epidemic Diseases (Amendment) Act, 2020 is effective from Apr 22, 2020. The Amendment Act aims to provide protection to health care service personnel, their living premises as well as their workplaces against any act of violence during the course of a pandemic.

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President give assent to the Industrial Relations Code, 2020

Parliament has received the assent of the President on the 28th September, 2020 on the Industrial relation Code, 2020. The objective of the Industrial relation Code, 2020 to consolidate and amend the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes and for matters connected therewith or incidental thereto.

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SC dismissed SLP filed against ruling setting aside additions as no incriminating material found during search

INCOME TAX: Where High Court upheld Tribunal's order setting aside addition made by AO under section 153A on ground that said addition was not based on any incriminating material found during course of search, SLP filed against said order was to be dismissed due to low tax effect

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SC dismissed SLP against ruling wherein reassessment was set-aside by holding that it was change of opinion

INCOME TAX : Where Assessing Officer initiated reassessment on ground that during assessment under section 143(3) loss on sale of stores was wrongly allowed as business loss, but Tribunal set aside reassessment holding it to be change of opinion and Tribunal’s order was upheld by High Court, SLP against High Court’s order was to be dismissed

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Penalty was to be reduced as trade beyond threshold was due to communication gap with broker:SAT

COMPANY LAW : Where it was alleged that appellant, Senior Vice President and Company Secretary of company, traded beyond threshold limit of 5000 shares of company without obtaining pre-clearance mandated under Model Code of Conduct for Prevention of Insider Trading while appellant explained communication gap between him and broker resulting in meagre profit, penalty of Rs. 12 lakhs to be reduced to Rs. 2 lakhs

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Payment of Subscription or membership fee to club on behalf of employees is deductible exp.

INCOME TAX : Where assessee as a guarantor of its JV company GPEL, had to pay certain amount to banks and financial institutions as one time settlement on account of inability of GPEL to pay off its debts, since truthfulness of entries was not doubted and it was not a case of syphoning of money through fictitious entries, assessee's claim for business loss in respect of amount paid was to be allowed

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President gives assent to the Taxation and Other Laws (Relaxation and Amendment of certain provision

The Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020, has received the assent of the President. The Act makes necessary amendments and inserts new provisions to enforce all the announcements made in the Ordinance and through press release during the last couple of months. Further, various new provisions have been inserted to enlarge the scope of faceless proceedings.

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​Guidelines under section 194-O(4) and section 206C(1-I) of the Income-tax Act, 1961​

Publish Date : Tuesday, September 29, 2020

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Key takeaways from the Companies (Amendment) Act, 2020

The Government had introduced the Companies (Amendment) Bill 2020 in the Lok Sabha on March 17, 2020 and now the bill has been passed in the both houses of the Parliament. The key objective of the Amendment Act, 2020 is to decriminalise various offences, to declog National Company Law Tribunal (NCLT) Act

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Sec 10A relief available if there was no need for full-fledged infrastructure facility to set-up an independent unit

INCOME TAX : Where assessee claimed exemption under section 10A in respect of its new unit, since assessee was engaged in site development of software program and programs were delivered at premise of client at work site in foreign country and activities of assessee finally culminated at work site of clients outside India and there was no need for full fledged infrastructure facility in India, thus, industrial undertaking of assessee was independent of all undertakings which it already possessed

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RTC couldn’t be considered as conclusive evidence to prove that assessee’s land was agricultural land

INCOME TAX : Where assessee claimed proceeds from sale of an agricultural land as exempt, since RTC produced by assessee could not prove that land sold by assessee was agricultural land and if any crop was grown upon it during year, further, assessee had neither claimed any expenses incurred in carrying out agricultural operations nor there was any evidence of agriculture produce having been sold by assessee, land could not be considered as agricultural land and same was to be treated as a capit

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195974/rtc-couldn’t-be-considered-as-conclusive-evidence-to-prove-that-assessee’s-land-was-agricultural-land.aspx

Sum paid to research association to be claimed as revenue exp. if assessee didn’t fulfil conditions for Sec. 35

INCOME TAX : Where assessee gave up its claim of deduction under section 35(1)on account of scientific expenses paid to a research association as admittedly conditions required for claiming such expenditure under said section was not satisfied by assessee, since there was no dispute that said expenditure was incurred in ordinary course of business, Tribunal was right in allowing alternate claim of assessee toward scientific expenses under section 35(1) as revenue expenditure under section 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196144/sum-paid-to-research-association-to-be-claimed-as-revenue-exp-if-assessee-didn’t-fulfil-conditions-for-sec-35.aspx

Excess interest earned is taxable as other source income if borrowed funds used for non-business purpose

INCOME TAX : Where assessee firm utilised its interest bearing funds for overdrawing of capital by its partner, rate of interest received by assessee firm from its partner, which was in excess as in comparison to rate on which funds were raised/borrowed by firm from third parties, same was liable to be assessed as income of assessee firm from "other sources"

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Key takeaway from the Companies (Amendment) Act, 2020

The Government had introduced the Companies (Amendment) Bill 2020 in the Lok Sabha on March 17, 2020 and now the bill has been passed in the both houses of the Parliament. The key objective of the Amendment Act, 2020 is to decriminalise various offences, to declog National Company Law Tribunal (NCLT) Act

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President gives assent to two Acts relating to Medical Central Council and Homoeopathy Central Counc

The President has approved of two Acts replacing Ordinances related to the Central Council of Homoeopathy and the Indian Medicine Central Council. The Amendment Acts empower the Central Government to supersede Central Council and Constitute Board of Governors and give directions on policy and administrative matters.

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Bilateral Netting of Qualified Financial Contracts Act, 2020 receives assent of the President

The President has approved of the Bilateral Netting of Qualified Financial Contracts Act, 2020. The objective of Act is to ensure financial stability and promote competitiveness in Indian financial markets by providing enforceability of bilateral netting of qualified financial contracts and for matters connected therewith or incidental thereto.

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President nods to FCRA (Amendment) Act, 2020

The President has given his assent to the Foreign Contribution Regulation (Amendment) Act, 2020. The objective of the Amendment Act is to enhance transparency and accountability in receipt and utilization of foreign contribution. The Act prohibits “public servants” and “corporations owned or controlled by the government” from accepting funds from abroad. Reduces administration expenses of NGO from 50% to 20%, mandates Aadhaar details of the office-bearers of NGOs for registration.

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Parliament passes Companies Amendment Bill, 2020; decriminalizes 48 sections of Cos. Act

In a bid to promote ease of doing business in India, the Parliament has passed Companies Amendment Bill 2020, which will decriminalise various offences under 48 sections of the companies act 2013.

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No Sec. 194A TDS was required if interest paid to persons who were duly admitted as members of Co-operative bank

INCOME TAX: Where assessee co-operative bank made payment of interest to HUF and unregistered firms, since both of these entities were 'members' of assessee admitted by way of an application made by them to bank and then passing a resolution to extent of their admission as members of bank in its board of directors meeting, no deduction of tax at source was to be made under section 194A on such payments of interest

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Only those exp. which was proved to be incurred relating to earning of exempt income to be disallowed

INCOME TAX : In terms of section 14A, only expenditure, which was proved to be incurred in relation to earning of tax free income, could be disallowed and such provision could not be extended to disallow expenditure, which was assumed to have been incurred for earning tax free income. To apply provisions of section 14A, Assessing Officer should have recorded a finding as to how sub-section (1) of section 14A would stand attracted.

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Provisions of SARFAESI Act do not apply to any security interest created in an agricultural land: Bombay HC

FEMA/BANKING/INSURANCE : Provisions of SARFAESI Act do not apply to any security interest created in an agricultural land, however, question as to whether suit land is an agricultural land needs to be decided in suit, since one party affirms same and other denies it; and this question can be decided only on evidence; stage of order 7 rule 11 of Code of Civil Procedure is not a proper stage to receive such evidence and decide issue

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Discount offered by ‘Tata Sky’ to distributors & subscribers can’t be considered as discount for Sec. 194H TDS

INCOME TAX : Where assessee, engaged in business of providing DTH services, sold set top Box (STB) & hardware and recharge coupon vouchers to distributors at a discounted rate and also provided also provided certain discount/bonus or credits to customers/subscribers for taking subscription directly from company's website, discount so offered could not be considered as commission and, hence, not liable for deduction of tax at source under provisions of section 194H

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195973/discount-offered-by-‘tata-sky’-to-distributors-subscribers-can’t-be-considered-as-discount-for-sec-194h-tds.aspx

Essential Commodities (Amendment) Act empowers Govt. to control trade, and commerce in certain commo

The Essential Commodities (Amendment) Act, 2020 has approved by the Govt., which allows the central government to regulate the supply of certain food items only under extraordinary circumstances (such as war and famine). Stock limits may be imposed on agricultural produce only if there is a steep price rise.

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Govt. notifies Jammu and Kashmir Official Languages Act, 2020

The Govt. has given its approval the Jammu and Kashmir Official Languages Act, 2020. The Act to provide for the languages to be used for the official purposes of the Union territory of Jammu and Kashmir and for matters connected therewith

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Govt. approves two Acts to empower, protect, promote trade and commerce for farmers

The Govt. has approved the farmers’ produce trade and commerce (promotion and facilitation) Act, 2020 and the farmers (empowerment and protection) agreement on price assurance and farm services Act, 2020. The Acts shall provide for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price.

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Writ petition under article 226 of constitution wasn’t maintainable against NCLT, rules Kerala HC

COMPANY LAWS : Where interim order passed by NCLT challenged in writ petition was not an administrative order passed by NCLT, Writ Court could not proceed to entertain writ petition under Article 226 of Constitution against said order; where dispute between company and its shareholders is purely a civil dispute, remedy under Article 226 is available against a State or authority or instrumentality of State, falling within ambit of definition "State" under Article 12 of Constitution

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196098/writ-petition-under-article-226-of-constitution-wasn’t-maintainable-against-nclt-rules-kerala-hc.aspx

Notification No. 81/2020 [F.No.279/Misc./66/2014-SO-ITJ(Pt.)]/ SO 3309(E)

Publish Date : Friday, September 25, 2020

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Notification No. 80/2020 [F.No.279/Misc./66/2014-SO-ITJ(Pt.)]/ SO 3308(E)

Publish Date : Friday, September 25, 2020

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Notification No. 79/2020 [F. No.187/2/2019-ITA-I]/ SO 3304(E)

Publish Date : Friday, September 25, 2020

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Notification No. 78/2020 [F. No. 187/4/2020 ITA -I] / SO 3303(E)

Publish Date : Friday, September 25, 2020

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Notification No. 77/2020 [F.No. 370142/33/2020-TPL] / SO 3297(E)

Publish Date : Friday, September 25, 2020

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Faceless Appeal Scheme, 2020​

Publish Date : Friday, September 25, 2020

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Tax rate cannot be challenged in a Court of law unless it is confiscatory in nature: Delhi HC

GST : Rate of tax could not have been challenged in a Court of law unless it was abundantly confiscatory in nature Thus, where nothing had been argued out about how present rate of GST on masks and sanitizers was confiscatory in law, merely, because petitioner felt that GST rate applied on masks and sanitizers was excessive, this could not be a reason for issuing a writ of mandamus and directing respondents to reduce tax on said commodities

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Sec. 14A disallowance valid as assessee couldn’t substantiate fact that non exp. was incurred to earn exempt income

INCOME TAX : Where assessee-company claimed that no expenditure was incurred to earn exempt income and section 14A disallowance was not called for, but it could not substantiate that fact before lower authorities and it was found that there was substantial increase in investment and value of assets of assessee, Assessing Officer was justified in making disallowance under section 14A read with rule 8D

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196097/sec-14a-disallowance-valid-as-assessee-couldn’t-substantiate-fact-that-non-exp-was-incurred-to-earn-exempt-income.aspx

Govt. notifies amendment Act to cut down salaries of MPs by 30% for 1 year commencing from Apr 1, 20

The Ministry of Law and Justice has notified the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2020 whereby the salary payable to Members of Parliament shall be reduced by 30% for a period of one year commencing from the 1st April, 2020, to meet the exigencies arising out of Corona Virus (COVID-19) pandemic.

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Mere debiting amount by way of journal entry will not attract deemed dividend provisions

INCOME TAX : For invoking provisions of section 2(22)(e), there must be a payment by way of advance or loan, hence, where this vital aspect was missing in case of assessee as neither there was any payment nor company made any advance or loan to assessee, thus debit balance worked out by assessee company will not fall within ambit of provisions of section 2(22)(e) and thus are not applicable in case of assessee

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Govt. notifies Salary, Allowances and Pension of members of Parliament (Amendment) Act, 2020

The Ministry of Law and Justice has notified the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2020 whereby the salary payable to Members of Parliament shall be reduced by thirty % for a period of one year commencing from the 1st April, 2020, to meet the exigencies arising out of Corona Virus (COVID-19) pandemic.

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CBDT authorises ACIT/DCIT (NeAC) as prescribed authority to issue scrutiny notice w.e.f. 13-08-2020

In exercise of powers conferred under section 143(2) read with rule 12E, the CBDT has authorised the Assistant Commissioner/Deputy Commissioner of Income-tax (National e-Assessment Centre) having his headquarters at Delhi, as the prescribed Income-tax authority for the purpose issuance of notice under section 143(2) for scrutiny assessment with effect from 13-08-2020.

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Only income which is in violation of Sec. 13 would be subject to maximum marginal rate: ITAT

INCOME TAX: Once there was a violation of section 13(1)(c) or section 13(1)(d) by a trust registered under section 12AA, then entire income of trust was not chargeable to tax at maximum marginal rate (MMR) and its only that part of income which had violated said sections would suffer MMR as per proviso to section 164(2)

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No denial of trust registration just because ‘Rajasthan Nursing Council’ charged fees to render statutory functions

INCOME TAX: Where assessee council was a statuary authority established under Rajasthan Nursing Council Act, 1964 to provide for registration of nurses, midwives, health visitors and auxiliary nurse-midwives in State, activities of assessee were qualified activities of general public utility and, thus, fall under charitable activities as defined under section 2(15) and it was to be granted registration section 12AA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195723/no-denial-of-trust-registration-just-because-‘rajasthan-nursing-council’-charged-fees-to-render-statutory-functions.aspx

Writ is not maintainable if assessee didn’t exhaust available statutory remedy of filing appeal

INCOME TAX : Where Income-tax Officer treated cash deposited by assessee in saving bank account during demonetization period as unexplained money of assessee but there was no explanation for source and nature of cash deposited and assessee filed writ petition which was dismissed by Single Judge holding that assessee should file statutory appeal before appellate authority, since Act provides effective and sufficient forum for any aggrieved party to work out their remedy, writ appeal filed by asse

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196054/writ-is-not-maintainable-if-assessee-didn’t-exhaust-available-statutory-remedy-of-filing-appeal.aspx

Rental income eligible for Sec. 11 exemption if same was used by trust towards its object: Madras HC

INCOME TAX : Where assessee-trust engaged in running educational institutions, earned income from letting out of community hall, Kalyana Mandapam and Gnanvapi and utilized surplus income from letting out for objects of trust i.e. running educational institution and providing medical relief to poor, assessee-trust is entitled to exemption under section 11

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Name appearing in purchase deed won’t establish assessee as owner of residential house for computing sec. 54F relief

INCOME TAX : Where Assessing Officer disallowed exemption under section 54F to assessee on ground that assessee was owner of two other residential properties along with one purchased by him out of consideration from sale of shares, in view of facts that one of those properties was a commercial property and that other residential property was fully owned by wife of assessee and merely name of assessee was included in purchase deed, assessee was to be allowed exemption under section 54F

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195631/name-appearing-in-purchase-deed-won’t-establish-assessee-as-owner-of-residential-house-for-computing-sec-54f-relief.aspx

Notification No. 75/2020 [F. No. 370142/8/2020-TPL] / GSR 574(E)

Publish Date : Tuesday, September 22, 2020

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No reassessment to disallow interest exemption if AO duly allowed it on direction of CIT(A)

INCOME TAX : Where assessee-bank offered to tax entire interest receipt from money advanced as credit without claiming any exemption under section 10(15) as details were not fully collected and when said details were received from other branches, same were submitted during assessment but AO denied said exemption to assessee and, it approached Commissioner (Appeals) who gave direction to Assessing Officer to allow exemption which was allowed accordingly,

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No sec. 263 revision if view taken by AO was a plausible view: HC

INCOME TAX : Where Assessing Officer held that expenditure incurred by assessee-company, engaged in business of computer software development and services, in foreign currency on traveling, professional charges and on-site service charges which were for development of software at client's site outside India was not to be excluded from export turnover for purpose of deduction under section 10A, since view taken by Assessing Officer was a plausible view and same could not said to be erroneous,

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Lok Sabha passes FCRA (Amendment) Bill, 2020

The Lok Sabha has given its accent to the Foreign Contribution Regulation (Amendment) Bill, 2020. The Bill proposes to include “public servants” and “corporations owned or controlled by the government” among the list of entities who are not eligible to receive funds from abroad. In addition, Aadhaar numbers of the office-bearers of NGOs will be mandatory for registration.

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NCLT's order rejecting Co.'s plea for capital reduction was quashed as Co. had duly complied with requirements u/s 66

COMPANY LAW : Where there was an 'inadvertent typographical error' figuring in extract of 'Minutes of Meeting' characterizing 'special resolution' as 'unanimous ordinary resolution' and appellant company had tacitly admitted its creeping in of typographical error in extract of minutes, taking into consideration stand of Registrar of Companies that appellant/Company had filed special resolution with it, which satisfies requirement of section 66 of the Companies Act, 2013,

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Advance ruling application accepted manually due to limitations in electronic filing system of application: DL HC

GST : Where assessee due to problems in electronic system of department was unable to file application online to seek advance ruling, Competent Authority was to be directed to entertain physical application of assessee to seek advance ruling

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No penalty if it was not mentioned in notice that assessee had concealed income or finished inaccurate details

INCOME TAX : Where in notice issued under section 271(1)(c) there was no mention that assessee had concealed income or furnished inaccurate particulars of income, order imposing penalty under section 271(1)(c) was to be quashed

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Lok Sabha passes 3 codes for path breaking historic labour reforms in the Country

The Minister of State for Labour & Employment, while responding to the debate in the Lok Sabha, has stated that the three Bills introduced in the House for historic labour reforms in the country, will prove to be a Game Changer in the labour welfare reforms covering more than 50 crores organized and unorganized workers in the country. This also includes gig, platform and also opens up the doors for social security to those in the self-employment sector.

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Hon'ble President nods to the Institute of Teaching and Research in Ayurveda Act, 2020

The President has given its assent to the Institute of Teaching and Research in Ayurveda Act, 2020. The objective of the Act is to provide for the establishment of an Institute of Teaching and Research in Ayurveda and to declare it as an Institution of national importance for the promotion of quality and excellence in education, research and training in Ayurveda and allied disciplines and for matters connected therewith or incidental thereto.

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Freezing of bank account under Customs beyond 1 year is not permissible where investigation is initiated under GST

GST/ST/VAT/EX : Where investigation under Central Goods and Services Tax Act was pending against assessee-company, impugned order of freezing bank account of assessee passed by Deputy Commissioner of Customs (Preventive) in view of investigation initiated against assessee by Anti-Evasion Wing of Central Goods and Services Tax, was unjustified and same was to be set aside

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

Freezing of bank account under Customs beyond 1 year is not permissible where investigation is initiated under GST

GST/ST/VAT/EX : Where investigation under Central Goods and Services Tax Act was pending against assessee-company, impugned order of freezing bank account of assessee passed by Deputy Commissioner of Customs (Preventive) in view of investigation initiated against assessee by Anti-Evasion Wing of Central Goods and Services Tax, was unjustified and same was to be set aside

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

Vacant land couldn’t be treated as residential house while determining eligibility of Sec. 54F exemption

INCOME TAX: Where assessee was denied benefit of deduction under section 54F on ground that assessee owned more than two residential houses, other than new asset on date of transfer of original asset, since properties were in fact not residential houses owned by it and assessee had only given lease of vacant land and obtained rent for land and not for any building, and thus, assessee did not own more than one residential house, other than new asset on date of transfer of original asset,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195632/vacant-land-couldn’t-be-treated-as-residential-house-while-determining-eligibility-of-sec-54f-exemption.aspx

Provision of Sec. 40(a)(i) is not applicable on depreciation as it is a statutory deduction & not outgoing exp.

TRANSFER PRICING : Where assessee was engaged in providing Business Process Outsourcing, a company engaged in engineering design services which fell within ambit of Knowledge Process Outsourcing requiring high skill sets was incomparable to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/2ZYg3nS

IFSCA Committee submits interim report on development of international retail business: MoF

The International Financial Services Centres Authority (IFSCA) Expert Committee on international retail business development in the IFSC has submitted its interim report to the Chairperson of the IFSCA. The interim report covers a number of suggestions aimed at swift and efficient development of international retail businesses in the IFSC, and focuses mainly on the banking vertical.

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Govt. notifies National Commission for Homoeopathy Act, 2020

The Ministry of Law and Justice has notifies that the National Commission for Homoeopathy Act, 2020 in order to provide for a medical education system that improves access and affordable medical education, ensures availability of adequate and high quality homoeopathy medical professionals in all parts of the country.

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Lok Sabha introduces Foreign Contribution Regulation (Amendment) Bill, 2020

The Lok Sabha has introduced the Foreign Contribution Regulation (Amendment) Bill, 2020. The Bill proposes to include “public servants” and “corporations owned or controlled by the government” among the list of entities who are not eligible to receive funds from abroad. In addition, Aadhaar numbers of the office-bearers of NGOs will be mandatory for registration.

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HC denies bail to petitioner accused of fabricating entries for commission

COMPANY LAW : Where it was found during investigation that in connivance and in conspiracy with 'A' company and for helping them in embezzling cash; which was in hands of "A" Company, petitioner and his company provided fake and antedated bills and invoices, without actually supplying any material due to which A company swindled an amount of about Rs.90 Crores of public money, whereas petitioner got about 22 lakhs as commission through fabricating entries,

from www.taxmann.com Latest Case Laws https://ift.tt/3cj0BaV

Setting up of Industries by Foreign Companies

Setting up of Industries by Foreign Companies

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Promotion of FDI

Promotion of FDI

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No proportionate disallowance of interest exp. without proving that part borrowed sum not used for business purpose

INCOME TAX : Where all requisite conditions for allowance of interest are fulfilled, it is not open to revenue to make a part disallowance, unless there is a positive finding recorded that a part of amount borrowed is not used for purpose of business

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

Govt. introduces the FCRA (Amendment) Bill, 2020 in Lok Sabha; seeks to make FCRA laws more stringen

The Lok Sabha has introduced the Foreign Contribution Regulation (Amendment) Bill, 2020. The Bill proposes to include “public servants” and “corporations owned or controlled by the government” among the list of entities who are not eligible to receive funds from abroad. In addition, Aadhaar numbers of the office-bearers of NGOs will be mandatory for registration.

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Key highlights of the FCRA (Amendment) Bill, 2020

The Government has introduced the Foreign Contribution (Regulation) Amendment Bill 2020 in the Lok Sabha on September 21, 2020 with twin objective to make the FCRA law more stringent.

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HC remanded matter for reconsideration as assessee produced relevant evidence to justify genuineness of creditors

INCOME TAX : Where addition under section 68 was made in hands of assessee as it had failed to satisfy authority with regard to genuineness of creditors , since it had produced relevant evidence before High Court, it would be just and appropriate to direct Assessing Officer to reconsider matter afresh by considering said evidence

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Lok Sabha introduces FCRA (Amendment) Bill, 2020; seeks to make FCRA laws more stringent

The Lok Sabha has introduced the Foreign Contribution Regulation (Amendment) Bill, 2020. The Bill proposes to include “public servants” and “corporations owned or controlled by the government” among the list of entities who are not eligible to receive funds from abroad. In addition, Aadhaar numbers of the office-bearers of NGOs will be mandatory for registration.

from taxmann.com News https://ift.tt/3mF7yrG

Lok Sabha introduces Foreign Contribution Regulation (Amendment) Bill, 2020

The Lok Sabha has introduced the Foreign Contribution Regulation (Amendment) Bill, 2020. The Bill proposes to include “public servants” and “corporations owned or controlled by the government” among the list of entities who are not eligible to receive funds from abroad. In addition, Aadhaar numbers of the office-bearers of NGOs will be mandatory for registration.

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SPICe+ Portal deployed by MCA

SPICe+ Portal deployed by MCA

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President nods to Aircraft (Amendment) Act, 2020

The President has given its approval to the Aircraft (Amendment) Act, 2020. The Aircraft (Amendment) Act 2020 proposed to convert aviation agencies like the Directorate General of Civil Aviation (DGCA), Bureau of Civil aviation security (BCAS) and Aircraft Accident Investigation Bureau (AAIB) into statutory bodies. Moreover, the new Act, 2020 will attract hefty penalty on wrongdoers.

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No Sec. 40A(3) disallowance if bank account of payee was not operational due to attachment order passed by ESI dept.

INCOME TAX : Where assessee had entered into agreement with a company for conversion work on job work basis and paid conversion charges in cash as bank account of said company could not be operated because of order of attachment passed by ESI department, assessee was entitled to exemption under rule 6DD in respect of payment made in cash and thus, no disallowance under section 40A(3) was called for

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Product ‘Fly Ash Bricks’ are classified under tariff item 68159910, taxable @ 18% GST: Guj. AAR

GST : Product 'fly ash bricks' manufactured and supplied by assessee would be classifiable under tariff item no. 68159910 and applicability of GST rate on said product would be 12 per cent GST (6 per cent SGST + 6 per cent CGST) upto 14-11-2017 and 18 per cent GST (9 per cent SGST + 9 per cent CGST) with effect from 15-11-2017 as per Notification No. 01/2017 - Central Tax (Rate) dated 28-6-2017 (as amended from time-to-time) issued under CGST Act

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195863/product-‘fly-ash-bricks’-are-classified-under-tariff-item-68159910-taxable-18-gst-guj-aar.aspx

No disallowance for cash payment if bank account couldn’t be operated due to attachment order passed by ESI dept.

INCOME TAX : Where assessee had entered into agreement with a company for conversion work on job work basis and paid conversion charges in cash as bank account of said company could not be operated because of order of attachment passed by ESI department, assessee was entitled to exemption under rule 6DD in respect of payment made in cash and thus, no disallowance under section 40A(3) was called for

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195931/no-disallowance-for-cash-payment-if-bank-account-couldn’t-be-operated-due-to-attachment-order-passed-by-esi-dept.aspx

Madras HC remanded matter following subsequent ruling of SC as SetCom cannot rectified its order

INCOME TAX : Where assessee had not offered income at first instance but only after search under section 132 offered additional income and subsequently filed settlement application, and Settlement Commission granted waiver of interest, but subsequently, rectified order rejecting waiver of interest and directed that interest under section 234B shall be charged up to date of order under section 245D(4),

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

Extension of limitation period on account of COVID-19 wouldn’t apply to statutory period for condoning delay: SC

COMPANY LAW : Where appellant got certified copy of NCLT's order on 19-12-2019 but filed appeal against that order on 20-7-2020, rejection of appellant's application for condonation of delay in filing appeal as well as appeal was justified as what was extended by Supreme Court in view of COVID-19 pandemic in Cognizance for Extension of Limitation,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195964/extension-of-limitation-period-on-account-of-covid-19-wouldn’t-apply-to-statutory-period-for-condoning-delay-sc.aspx

Student skill assessment services provided to Edu. Inst. are services in relation to conduct of Exam: Exempt from GST

GST : Where applicant is providing a program ASSET (Assessment of Scholastic Skills Through Educational Testing) to schools for purpose of assessment, educational assessment examination (ASSET) with its variants provided by applicant to school/educational organization is service provided in relation to conduct of examination of students which is exempted from payment of GST under Sl. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate),

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LLP must meet minimum net worth criteria for becoming an “Angel Investor": SEBI clarifies

The SEBI through informal guidance has clarified that the LLP and its partners are distinct persons. Therefore, LLP should meet the minimum net worth criteria of INR 10 crore even if its partners qualifies as an angel investors in their individual capacity.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020921/llp-must-meet-minimum-net-worth-criteria-for-becoming-an-“angel-investor-sebi-clarifies.aspx

Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 introduced in Lo

The Finance Minister, Smt. Nirmala Sitharaman has introduced the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 in the Lok Sabha. The bill seeks to amend various sections of the Income-tax Act.

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Petitioners not being directors of Co. on date of commission of offence not liable for cheque dishonouring

FEMA, BANKING & INSURANCE : Section 141 of Negotiable Instruments Act envisages vicarious liability on part of Directors or other persons, mentioned therein, of company who were in charge of and responsible for conduct of affairs of company at time of commission of offence. A person would be vicariously liable for commission of offence under section 138 of NI Act by company only in event conditions laid down in section 141 in NI Act are satisfied Thus,

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Provisions of Sec. 50C not applicable if development rights contributed as capital in AOP

INCOME TAX : Provisions of section 50C could not be applicable if development rights in respect of buildings contributed as capital contribution to AOP

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

Rules for E-Commerce Entities Under Consumer Protection Act

Rules for E-Commerce Entities Under Consumer Protection Act

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LLP must meet minimum net worth criteria for becoming an “Angle Investor": SEBI clarifies

The SEBI through informal guidance has clarified that the LLP and its partners are distinct persons. Therefore, LLP should meet the minimum net worth criteria of INR 10 crore even if its partners qualifies as an angel investors in their individual capacity.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020921/llp-must-meet-minimum-net-worth-criteria-for-becoming-an-“angle-investor-sebi-clarifies.aspx

Trust handling NPAs can’t be held as AOP if there wasn’t concerted efforts by beneficiaries to earn income jointly

INCOME TAX : Assessee-trust set up by Asset Reconstruction Co. (India) in pursuance to SARFAESI Act and RBI Guidelines for purpose of liquidating/recovering NPAs acquired from banks Assessing Officer had held that assessee was an Association of Persons(AOP) and not a trust and brought to tax entire surplus in income and expenditure account

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195937/trust-handling-npas-can’t-be-held-as-aop-if-there-wasn’t-concerted-efforts-by-beneficiaries-to-earn-income-jointly.aspx

No sec. 69A additions if assessee had sufficient fund from past years incomes for making investment

INCOME TAX : Where during year, assessee had returned income of Rs. 2 lakhs (approx.) and purchased agricultural land for Rs. 40 lakhs and Assessing Officer noted that agricultural income was meagre and assessee could not prove immediate source of investment in purchase of land and he treated said investment as unexplained, since income/saving of assessee for last 4 years i.e. income from sale of crop and income from sale of vegetable and lahsun,

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Writ plea filed against SBI for not allowing a disqualified director to operate bank a/c was to be dismissed: HC

COMPANY LAW : Where writ petition was filed against communication received from SBI in which newly appointed director of company was not allowed to operate bank account since she was declared disqualified along with other directors due to non-filing of audited financials of company with Register of Companies,

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

CIT(E) couldn’t denied sec. 80G application due to non-filing of P&L a/c if accounts of trust was under preparation

INCOME TAX : Where Commissioner (Exemption) denied benefits under section 80G to assessee company, registered under section 12AA, for reason that assessee failed to produce any evidence about having incurred any expenditure in its financial statements towards charitable object of company, since when Commissioner (Exemption) rejected assessee's application under section 80G,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195773/cite-couldn’t-denied-sec-80g-application-due-to-non-filing-of-pl-ac-if-accounts-of-trust-was-under-preparation.aspx

No deduction if employee's contribution to ESI deposited after due dates specified under relevant statutes

INCOME TAX : Where assessee employer failed to deposit an amount towards employee contribution on account of ESI with concerned department on or before due date prescribed in law and Assessing Officer by invoking provisions of section 36(1)(va) read with section 2(24)(x) made addition of aforesaid amount to income of assessee, impugned addition made to income of assessee was justified

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

Govt. allows up to 74% FDI in defence sector under automatic route

The Govt. of India has permitted Foreign Direct Investment (FDI) in defence sector up to 74 % under Automatic route. However, if FDI in defence sector above 74 per cent can be approved under automatic route. This would be subject to access to modern technology or for 'other reasons' that needs to be recorded. Until now, 49 % of FDI were allowed under automatic route.

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Sum paid to employees which was duly recorded in ‘Register of wages of person employed’ couldn’t be questioned

INCOME TAX : Where addition was made in hands of assessee engaged in hospitality business on ground that bogus expenditure was claimed towards service charges paid to its employees, since assessee submitted that as tips were given to room boys and they alone benefitted, other employees raised objection and a settlement was arrived at between employees and assessee regarding payment of service charges and he had produced annual accounts, statement of income,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195891/sum-paid-to-employees-which-was-duly-recorded-in-‘register-of-wages-of-person-employed’-couldn’t-be-questioned.aspx

Lok Sabha passes Banking Regulation (Amendment) Bill, 2020

Lok Sabha has consented to the Banking Regulation (Amendment) Bill, 2020 The bill seeks to amend section 45 of the Act in order to address the potential disruptions in the financial system by providing for the Reserve Bank of India to prepare a scheme for the reconstruction or amalgamation of the banking companies without the necessity of first making an order of moratorium

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Trust liable to pay tax on anonymous donation though it had applied 85% of such donation for object of trust

INCOME TAX : For availing exemption u/s 11 etc., an assessee needs to separately pass the test u/s 115BBC subject to the exceptions If a particular receipt turns out to be anonymous donations,

from www.taxmann.com Latest Case Laws https://ift.tt/3hD0KH9

AO to reopen cases of subsequent AYs if assessee claimed of paying taxes in subsequent years on sale of power units

INCOME TAX : Where assessee engaged in generation of power prayed for deletion of impugned additions made under normal provisions of Act as well as under section 115JB on ground that receipts from sale of power to Tamilnadu Generation and Distribution Corporation had been subjected to tax in subsequent year, Assessing Officer was to be directed to reopen assessments from years 2010-11 to 2014-15 on this issue alone and examine whether assessee had paid taxes on these receipts,

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Subsequent legislation to be applied retrospectively if previous one had any omission/ambiguity etc.: SC

GST/EXCISE/ST/VAT : DTA sales pertaining to excisable goods made in conformity with conditions of EXIM policy are exigible to excise duty, but once there is contravention of condition(s) of EXIM policy, irrespective of goods produced being excisable or non-excisable, benefit under exemption Notification No. 123/94CUS., is unavailable and in such a situation, very goods would become liable to imposition of customs duty as if being imported goods

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HC directs respondent to reactivate DIN of petitioner to enable filing of annual return and to discharge duties

COMPANY LAW: Where petitioners who were treated as disqualified directors under section 164(2)(a) sought direction to use their Director Identification Number (DIN) and Digital Signature Certificate for purpose of filing their return, respondents were directed to reactivate Director Identification Number (DIN) of petitioners and Digital Signature Certificate to enable petitioners to file necessary annual return and also to discharge their statutory obligations

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Commission paid to agent who provided assistant in sale of house allowable as deduction while computing capital gain

INCOME TAX: Where assessee sold a residential house acquired by it from her grandmother in 2008 through a registered gift deed, computation of indexation cost of acquisition of property in question so as to compute capital gains arose to assessee on its sale was to be computed by taking year of acquisition as 1988 i.e when property was acquired by previous owner (grandmother of assessee) and not from year when property was gifted to assessee i.e. 2008

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Provisions of Sec. 50C not applicable on sale of development rights

INCOME TAX : Provisions of section 50C could not be applicable to sale of development rights in respect of buildings

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

Competition Commission of India dismisses antitrust complaint against Amazon

COMPETITION LAW : Where informants alleged unfair and anti-competitive practices by OP-1, Amazon Seller Services (P.) Ltd., OP-2, Amazon Export Sales LLC and OP-3, Cloudtail India and their affiliate entities, however, there were multiple players operating in relevant market for services provided by online platforms for selling fashion merchandise in India and it did not appear that any one platform was occupying a dominant position in relevant market,

from www.taxmann.com Latest Case Laws https://ift.tt/3mqXa6D

Transfer of business under scheme of arrangement approved by HC isn’t slump sale: Madras HC

INCOME TAX : Transfer of assessee's non-transmission and distribution business in exchange of issuance and allotment of equity shares under a scheme of arrangement approved by High Court is not a slump sale exigible to capital gain tax under section 50 as transfer pursuant to approval of scheme of arrangement is not a contractual transfer but a statutorily approved transfer and cannot be brought within definition of word 'sale'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195870/transfer-of-business-under-scheme-of-arrangement-approved-by-hc-isn’t-slump-sale-madras-hc.aspx

SetCom can’t declare application invalid citing non-disclosure of full & true income if issue needs to be settled

INCOME TAX : Section 245D(2C) does not spell out an adjudicatory process and procedure to be adopted by Settlement Commission is summary in nature Therefore, if in opinion of Settlement Commission, based on report, issue needs to be adjudicated, the application can not be declared as invalid and each case which comes before Commission has to be decided on own facts Where applicant,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195887/setcom-can’t-declare-application-invalid-citing-non-disclosure-of-full-true-income-if-issue-needs-to-be-settled.aspx

Proceeding under CIS norms was not to be quashed where major questions were yet to be decided in trial: HC

COMPANY LAW: Where questions whether petitioners had complied with CIS Regulations on or before date mentioned in Regulations and whether offence was compoundable or not were questions to be decided in trial by putting forth evidence, proceedings under complaint filed by SEBI for non-compliance of CIS Regulations was not to be quashed; petition to quash complaint dismissed

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No ST on Commission/agency fee remitted to agents abroad for chartering out & handling vessels outside India

GST/EXCISE/ST/VAT: Commission or agency fee remitted to agents abroad for chartering out and handling of vessels outside India is exempt

from www.taxmann.com Latest Case Laws https://ift.tt/3c5vW0o

Tax authorities cannot issue command demanding release of cash deposited by police in criminal court

INCOME TAX: Where money had been seized by police from a person and deposited in criminal court, appropriate remedy open to Income Tax Officer was to apply under section 226(4) for payment of money towards tax and other amounts due and not to issue any command to Court demanding release of cash

from www.taxmann.com Latest Case Laws https://ift.tt/2ZCiaO3

Notification No. 74/2020 [F. No. 178/42/2017-ITA-1] / SO 3122(E)

Publish Date : Friday, September 11, 2020

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HC remanded matter as ITAT deleted additions without assigning any valid reason

INCOME TAX: Where Assessing Officer disallowed payments made by assessee towards transportation charges for transporting mineral and Commissioner (Appeals) also upheld same for reason that no confirmations about such payments were received from transport contractors and also no relevant materials were produced by assessee so as to prove that mineral was actually transported and, thus, said payment could not be allowed under section 37(1), however,

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Change of method for valuing stock is valid if method was as per AS prescribed by ICAI

INCOME TAX: Where assessee during relevant year changed method of valuing finished stock from 'market value' to 'cost or market value whichever was lower' method, since changed method of valuing stock was as per AS prescribed by ICAI, it could be said that change in method of valuing finished stock was bona fide and assessee had rightly applied said method to its closing stock of finished goods and that same was to be applied for valuation of opening stock for that year, however,

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Order passed following Sec. 263 revision not valid if such revisional proceedings was no more in existence

INCOME TAX: Where section 263 order was no more in existence, order passed by Assessing Authority in accordance with directions issued by Commissioner under section 263 would be infructuous

from www.taxmann.com Latest Case Laws https://ift.tt/3mkwh49

Another writ petition not maintainable if cause of action which was available during earlier petition wasn’t claimed

INCOME TAX: Where, though cause of action was available to petitioner at earlier point of time, to claim interest at rate of 9 per cent on FDs kept with bank, after date of maturity till date of transfer of amount, petitioner not having claimed same in earlier writ petition, petitioner was estopped from filing second writ petition on same cause of action Bank also could not be said to have unlawfully enriched itself by withholding petitioner's FDs amount, as it had paid applicable rate of 4 per

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195648/another-writ-petition-not-maintainable-if-cause-of-action-which-was-available-during-earlier-petition-wasn’t-claimed.aspx

Striking off of a Co.’s name by RoC without recording his satisfaction u/s 248(6) couldn’t be interfered with :HC

COMPANY LAW : Whether where appellant company was aggrieved as his name had been struck off by Registrar of Companies without recording his satisfaction in terms of section 248(6), just because there may be a mistake in order impugned or a different view was possible could not be good grounds for interference with under Article 227 of Constitution, despite existence of an alternative remedy of appeal

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195824/striking-off-of-a-co-’s-name-by-roc-without-recording-his-satisfaction-us-2486-couldn’t-be-interfered-with-hc.aspx

SEBI issues Consultation Paper on format for business responsibility and sustainability reporting

The Market Regulator, SEBI has come up with Consultation Paper on format for business responsibility and sustainability reporting which shall be applicable to the top 1000 listed entities by market capitalization. It is also proposed that to begin with, the new format will be adopted by such top listed entities on a voluntary basis for the financial year 2020-21.

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Banking Regulation (Amendment) Bill, 2020 proposes scheme for reconstruction of banking companies

The bill seeks to amend section 45 of the Act in order to address the potential disruptions in the financial system by providing for the Reserve Bank of India to prepare a scheme for the reconstruction or amalgamation of the banking companies without the necessity of first making an order of moratorium

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Lok Sabha introduces two bills to empower, protect, promote trade and commerce for farmers

The Lok Sabha has introduced the farmers’ produce trade and commerce (promotion and facilitation) bill, 2020 and the farmers (empowerment and protection) agreement on price assurance and farm services bill, 2020. The bills shall provide for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative pric

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Violation of provisions of Company Law by the Companies

Violation of provisions of Company Law by the Companies

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HC stops trial against petitioners in cheque dishonouring case as they were not directors at time of issue of cheque

FEMA, BANKING & INSURANCE : Where on date offence under section 138 was deemed to have been committed due to dishonour of cheque dated 22-10-2018, petitioners were not Directors in accused no. 1 company and they could not be held responsible for conduct of its affairs and for that matter, for issuance and dishonour of cheques under reference Hence, if criminal proceeding was allowed to proceed against petitioners, it would amount to abuse of process of Court resulting in prejudice to petitioners

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Banking Regulation (Amendment) Bill, 2020 proposes scheme for reconstruction of banking company

The bill seeks to amend section 45 of the Act in order to address the potential disruptions in the financial system by providing for the Reserve Bank of India to prepare a scheme for the reconstruction or amalgamation of the banking company without the necessity of first making an order of moratorium

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Salary and Pension of Members of Parliament (Amendment) Bill, 2020 seeks to reduce salary by 30%

The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill 2020 which seeks to replace the Salary, Allowances and Pension of Members of Parliament (Amendment) Ordinance, 2020 (Ord. 3 of 2020) provides for amendment of section 3 of the said Act by inserting a new sub-section (1A) therein, to provide that the salary payable to Members of Parliament under sub-section (1) shall be reduced by 30%. for a period of one year commencing from 1st April, 2020.

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Lok Sabha introduces two bill for farmers

The Lok Sabha has introduced the farmers’ produce trade and commerce (promotion and facilitation) bill, 2020 and the farmers (empowerment and protection) agreement on price assurance and farm services bill, 2020. The bills shall provide for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative pric

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Factoring Regulation (Amendment) Bill proposes to reduce time period for satisfaction of charge

The Factoring Regulation (Amendment) Bill, 2020, has introduced in lok sabha. The bill seeks to amend sub-section (1) of section 19 to reduce the time period for registration of invoice and satisfaction of charge upon it, in order to avoid possibility of dual financing; and also to insert a new sub-section (1A.) in that section to allow the concerned Trade Receivables Discounting System to register charge with the Central Registry on behalf of the factors using the platform.

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Essential Commodities (Amendment) Bill, 2020: Lok Sabha

Due to COVID19 pandemic, the economy had been adversely affected leading to unemployment and slowdown. The agriculture sector has the potential of making significant contribution to economic growth and therefore, to boost immediate investment in this sector. Therefore, the Essential Commodities (Amendment) Bill, 2020 seeks to amend the act and proposes to introduce provision related the supply of such agricultural foodstuff as are notified by the Govt.

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Bilateral Netting of Qualified Financial Contracts Bill, 2020 introduced in Lok Sabha

The Lok Sabha has introduced Bilateral Netting of Qualified Financial Contracts Bill, 2020. The objective of bill is to ensure financial stability and promote competitiveness in Indian financial markets by providing enforceability of bilateral netting of qualified financial contracts and for matters connected therewith or incidental thereto.

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Source of fund from which exp. is incurred is not relevant while allowing deduction for business purposes: SC

INCOME TAX: Where disbursements of grants was held to be core business of appellant corporation, expenditure incurred in course of business and for purpose of business would naturally be an allowable deduction under section 37(1) Source of funds from which expenditure is made is not relevant It is also not really relevant as to whether expenditure is incurred out of corpus funds or from interest income earned by appellant corporation Further, merely because grants benefit a third party,

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

Interest paid to creditor deductible from FDs interest as it was made out of surplus arose from restructuring process

INCOME TAX : The purpose of expenditure is relevant in determining the applicability of section 57(iii) and purpose must be making and earning income Where, as per scheme of arrangement approved by High Court, assessee was utilized as special purpose vehicle for purpose of distribution of surplus after clearance of debts of a company, since process of settlement was continuing, surplus was deposited as fixed deposit in banks which earned interest,

from www.taxmann.com Latest Case Laws https://ift.tt/3bU7rn5

Lok Sabha introduces Assisted Reproductive Technology (Regulation) Bill, 2020

Lok Sabha has introduced Assisted Reproductive Technology (Regulation) Bill, 2020. The bill is for the regulation and supervision of the assisted reproductive technology clinics and the assisted reproductive technology banks, prevention of misuse, safe and ethical practice of assisted reproductive technology services and for matters connected therewith or incidental thereto.

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In a writ jurisdiction, HC can’t decide medium though which hearing to be conducted by NCLT rules, Gujarat HC

COMPANY LAW : Appellant company had argued that virtual proceedings in NCLT, Ahmedabad were unstable and full of technical snags, hence writ in nature of mandamus or any other writ /order/direction be issued to NCLT, Ahmedabad, to conduct proceedings in all applications by physical hearing as and when same is permitted by NCLT, Delhi Principal Bench, State of Gujarat and other authorities in light of COVID-19 pandemic

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195622/in-a-writ-jurisdiction-hc-can’t-decide-medium-though-which-hearing-to-be-conducted-by-nclt-rules-gujarat-hc.aspx

An appeal at instance of ex-Director of company in liquidation would not be maintainable, rules Delhi HC

COMPANY LAW : Though an erstwhile shareholder of a company in liquidation is entitled to appeal but not ex-Director and since appellant in affidavit has described himself as ex-Director, even though appeal contains an averment that he holds 75 per cent of shares of company in liquidation, appeal would not be maintainable

from www.taxmann.com Latest Case Laws https://ift.tt/3k8PKD3

Gauhati HC directs defaulting directors to make representation before RoC for restoration of DIN and DSC

COMPANY LAW: Petitioners appeared in list of defaulting directors who were identified and not filed financial statement for three years

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

Appeal filed without paying tax not valid if assessee didn’t prove that it had wrongly computed income in ITR

INCOME TAX : As per section 249(4) unless and until assessee has paid income tax due on income returned by him, no appeal under Chapter XX will be admitted and Statute neither gives any discretion to appellate authority to entertain an appeal nor extend time for paying self assessment tax, except in respect of cases falling under section 249(4)(b) in terms of proviso under said section

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195674/appeal-filed-without-paying-tax-not-valid-if-assessee-didn’t-prove-that-it-had-wrongly-computed-income-in-itr.aspx

Qualifying remand to be avoided when questions of law raised by both revenue as well as assessee

INCOME TAX : Where Tribunal while remitting back issue of section 14A disallowance had directed Assessing Officer to consider assessee's own fund, i.e., capital and reserves as available for investment, which yields exempted income and thereafter to apply formula in rule 8D and also exclude investments in subsidiaries, Tribunal, having chosen to remand matter to Assessing Officer for a fresh consideration,

from www.taxmann.com Latest Case Laws https://ift.tt/2FiTqU0

Notification No. 73/2020 [F. No. 300196/36/2017-ITA-I] / SO 3088(E)

Publish Date : Thursday, September 10, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/2Rfri6v

Department of Economic Affairs issues FAQs on Indian Stamp Act, 1899

In order to provide clarity to the stakeholders, the Department of Economic Affairs has issued FAQs on Indian Stamp Act, 1899 amendments and rules made thereunder.

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Join the Panel Discussion on ‘Faceless Assessment’ – Experts and CBDT to discuss all important issue

The All India Federation of Tax Practitioners National Tax Conference (AIFTP) is organizing a panel discussion on 12-09-2020 (Saturday) from 11:00 am to 1:30 pm to discuss the important issues relating to ‘Faceless Assessment’. Click on read more to get more information

from taxmann.com News https://www.taxmann.com/topstories/222330000000020898/join-the-panel-discussion-on-‘faceless-assessment’-–-experts-and-cbdt-to-discuss-all-important-issues.aspx

In a write jurisdiction, HC can’t decide medium though which hearing to be conducted by NCLT: Rules Gujarat HC

COMPANY LAW : Appellant company had argued that virtual proceedings in NCLT, Ahmedabad were unstable and full of technical snags, hence writ in nature of mandamus or any other writ /order/direction be issued to NCLT, Ahmedabad, to conduct proceedings in all applications by physical hearing as and when same is permitted by NCLT, Delhi Principal Bench, State of Gujarat and other authorities in light of COVID-19 pandemic

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195622/in-a-write-jurisdiction-hc-can’t-decide-medium-though-which-hearing-to-be-conducted-by-nclt-rules-gujarat-hc.aspx

Notification No. 72/2020 [F. No.178/111/2009-ITA-1]/ SO 3035(E)

Publish Date : Tuesday, September 8, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/32hJMJO

Assessee was entitled to receive interest on delayed payment of interest on refund under section 244A

INCOME TAX : Interest on delayed refund becomes part of principle amount and, thus, delayed interest includes interest for not refunding principle amount as well as interest on delayed refund

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

Land can’t be held as agricultural land if it is too small for carrying out agricultural operations: ITAT

INCOME TAX : Assessee sold land/property, but capital gain on same had not been disclosed in return of income Assessee took a stand that property was an agricultural land and therefore was not a capital asset and capital gain on sale of agricultural land was not exigible to tax

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195762/land-can’t-be-held-as-agricultural-land-if-it-is-too-small-for-carrying-out-agricultural-operations-itat.aspx

No abuse of dominance by Yamaha due to presence of other players in market for manufacture and sale of scooters:CCI

COMPETITION LAW : Where informant filed information against OP - Yamaha alleging abuse of dominant position due to sudden termination of long-standing dealership of Informant by Yamaha and appointment of another dealer in its place in Jodhpur,

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

NBCC appointed by SC to complete projects of Amarpali group couldn’t be dragged into litigations by existing buyer

COMPANY LAW/RERA : NBCC having been appointed by Supreme Court as a Project Management Consultant for completion of various stalled projects of Amrapali Group, it could not have been dragged into litigations filed by existing home buyers, or any interested party before any Court/Commission or Authority

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195392/nbcc-appointed-by-sc-to-complete-projects-of-amarpali-group-couldn’t-be-dragged-into-litigations-by-existing-buyer.aspx

Kaoline coated paper further coated with aluminium is classifiable under tariff item 48101390: CESTAT

GST/EXCISE/ST/VAT : Kaoline Coated Paper subjected to coating of aluminium is classifiable under Heading No. 48101390

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

Search action can’t be kept in abeyance for long if nothing was searched by dept. from date of its authorization

INCOME TAX : Department could not keep search action in abeyance for a long period of almost one year from date of last authorisation more so, when after a period of one year nothing was searched but only prohibitory order passed one year back was converted into deemed seizure

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195435/search-action-can’t-be-kept-in-abeyance-for-long-if-nothing-was-searched-by-dept-from-date-of-its-authorization.aspx

Interest paid on borrowings used to acquire inventory of land was allowable deduction

INCOME TAX: Interest paid on borrowed funds which were used for acquisition of land which was an inventory was allowable under section 36(1)(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/35tN7rc

No other investigating agency shall investigate a case which is already assigned by Govt. to SFIO under Cos. Act: HC

COMPANY LAW : Section 210 of the Companies Act, 2013 deals with power of Central Government to order investigation into affairs of company under circumstances enumerated in said section by Inspectors to be appointed by Central Government. Section 212 deals with investigation into affairs of company by Serious Fraud Investigation Office (SFIO). A reading of section 212 makes it clear that without prejudice to section 210, where Central Government,

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

Application before AAR is valid if scrutiny notice issued to assessee was on different issue

INCOME TAX : A question cannot be said to be pending under clause (i) of proviso to section 245R(2) upon issuance of a mere notice under section 143(2) especially when it has been issued in a standard pre-printed format and questions raised before Authority for Advance Ruling do not appear to be forming subject matter of said notice

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

Application before AAR can be filed even if scrutiny notice is issued to assessee

INCOME TAX : A question cannot be said to be pending under clause (i) of proviso to section 245R(2) upon issuance of a mere notice under section 143(2) especially when it has been issued in a standard pre-printed format and questions raised before Authority for Advance Ruling do not appear to be forming subject matter of said notice

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

Timeline for holding AGM for F.Y. 2019-20 extended till December 31st from September 30th, 2020: MCA

A big Relief is given by Ministry of Corporate Affairs (MCA) to around 12 lakhs companies today by extending the timeline for holding Annual General Meeting till December 31st from September 30th. Therefore, the MCA issued directions to RoCs to issue orders without filing of formal application and payment of fee. Even applications already filed but not approved or rejected are also covered for this relief.

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Demand notice issued for recovery of refund granted to assessee being erroneous, stayed, until further orders

GST/EXCISE/ST/VAT : Matter listed on 8-9-2020 to determine as to whether proposition of law laid down in subsequent decision of Supreme Court would render refunds made to assessee of EC and SHEC due to exemption in excise duty, erroneous and consequently,

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

Matter remanded back to adopt stamp duty value of property as on date of execution of sale deed for capital gains

INCOME TAX : As per proviso to section 50C, with effect from 1-4-2003, stamp duty value of property on date of execution of agreement to sell should be adopted instead of value on date of execution of sale deed, for determination of capital gains

from www.taxmann.com Latest Case Laws https://ift.tt/2Ff4uRX

Management fee earned by assessee which was incidental to export business was eligible for sec. 10A relief

INCOME TAX: Where assessee company was a 100 percent Export Oriented Unit (EOU), engaged in business of assembling and exporting valves, management fee earned by assessee in nature of export services which was incidental to business of export of valves would partake character of profit and gain from business and assessee was to be allowed exemption under section 10A on same

from www.taxmann.com Latest Case Laws https://ift.tt/2GFE10h

Key highlights from Resolution Framework for Covid-19 related Stress

The ‘Expert Committee on resolution framework for Covid-19 related stress’ set up by Reserve Bank of India has come up with the resolution framework for those sectors, businesses which have majorly impacted on account of COVID-19 pandemic. The objective of resolution framework is to provide one time one-time restructuring for stressed assets without downgrading the asset quality from standard to sub-standard.

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HC directs assessee to follow manual procedure to claim TDS refund in case of technical glitches on TRACES portal

INCOME TAX: Where assessee filed an instant writ petition seeking a direction to revenue to remove technical glitches and enable TRACES portal so that assessee could file its refund application for excess tax deduction at source (TDS) deposited by it, since in impugned case scrutiny and verification of TDS amount paid had to be manually done according to established procedure, assessee was to be directed to follow said procedure forthwith and once assesee follow aforesaid procedure,

from www.taxmann.com Latest Case Laws https://ift.tt/3lUQ4qG

AO couldn’t force assessee to choose a particular method for determining FMV as per rule 11UA

INCOME TAX: As per rule 11UA(1)(c)(b), it was prerogative of assessee to estimate fair market value of shares issued by it adopting one method out of two methods i.e. discounted cash flow method or book value method and that revenue authorities could not force assessee to adopt particular method for valuing fair market value of share

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195475/ao-couldn’t-force-assessee-to-choose-a-particular-method-for-determining-fmv-as-per-rule-11ua.aspx

Rectification order can be passed when there is mistake apparent from record: Allahabad HC

GST/EXCISE/ST/VAT: Rectification under section 74 can only be for a defect apparent on face of record which is to be rectified and authority cannot rewrite order, hence, where Tribunal did not find mistake apparent on face of record to rectify it and assessee failed to produce relevant documents and to appear in adjudication proceedings to make out a case, order passed by Competent Authority, dismissing application under section 74 was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3i975eH

Non-profit entity awarded contract by RBI to construct museum not eligible for Sec. 11 benefit

INCOME TAX : Where assessee, a non-profit entity, was awarded a contract of construction of a museum by RBI, since assessee was to execute work as directed by RBI as a contractor in lieu of money, actual work not being charitable in nature, asessee was not eligible for section 11 benefit

from www.taxmann.com Latest Case Laws https://ift.tt/3jZ60Gu

No concealment penalty as assessee didn’t suppressed facts if he offered only part of sale consideration to tax

INCOME TAX: Where assessee sold a plot of land and received sale consideration in three instalments and during relevant assessment year, assessee offered to tax only amount of consideration which was received during previous year, since assessee had declared full facts and sale agreement at first instance and assessee had never suppressed any material fact from revenue,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195503/no-concealment-penalty-as-assessee-didn’t-suppressed-facts-if-he-offered-only-part-of-sale-consideration-to-tax.aspx

No disallowance on account of unverified exp. if additions were based on past profits trends

INCOME TAX : Where assessee-contractor made payment to sub-contractors for project of road laying in power plant and, assessing authority disallowed entire payment as all sub-contractors were not produced upon issuance of summons, since all contractors had furnished their statements along with return of income except two sub-contractors and assessee to buy peace and avoid litigation offered 10 per cent of total expenditure incurred towards sub-contractors, no further disallowance was called for

from www.taxmann.com Latest Case Laws https://ift.tt/2R1LokD

Narration used in loan extracts in audit report not final proof to hold that loan wasn’t agricultural in nature: ITAT

INCOME TAX : Where Assessing Officer denied assessee's claim of deduction under section 80P for reason that assessee was essentially doing business of banking and disbursement of agricultural loans by it was only minuscule as per narration in loan extracts in audit reports, since narration in loan extracts in audit reports by itself may not be conclusive to prove whether loan was agricultural or non-agricultural,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194436/narration-used-in-loan-extracts-in-audit-report-not-final-proof-to-hold-that-loan-wasn’t-agricultural-in-nature-itat.aspx

Bank Audit: RBI revised the Long Form Audit Report (LFAR); applicable from F.Y. 2020-21

The Reserve Bank of India (RBI) has revised the Long Form Audit Report (LFAR) vide notification dated 5 September, 2020 which shall be applicable for Bank Audits from F.Y. 2020-21 onwards. The changes in new LFAR, 2020 have been made in respect of requirements for Statutory Central Auditor, Branch Auditor, Specialized Branches and Large/ Critical/ Irregular accounts for branch auditors.

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CCI closes case of price parallelism in tender floated by BPCL for procuring LPG cylinders

COMPETITION LAW: Where there was allegation of cartelization by manufacturers of 14.2 kg. LPG cylinders in response to e- tender floated by BPCL and there was a finding of price parallelism by some of parties in investigation report, case was to be closed considering nature of market as disclosed in Rajasthan Cylinders and Containers Ltd. v. Union of India [2018] 98 taxmann.com 6 (SC)

from www.taxmann.com Latest Case Laws https://ift.tt/357Ein1

No further disallowance if assessee agreed for 10% additions to avoid litigation for some unverified exp.

INCOME TAX : Where assessee-contractor made payment to sub-contractors for project of road laying in power plant and, assessing authority disallowed entire payment as all sub-contractors were not produced upon issuance of summons, since all contractors had furnished their statements along with return of income except two sub-contractors and assessee to buy peace and avoid litigation offered 10 per cent of total expenditure incurred towards sub-contractors, no further disallowance was called for

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

TDS disallowance under section 40(a)(ia) to be made even on sum which wasn’t payable at year end

INCOME TAX : Where assessee did not deduct TDS on amount paid on account of shipment charges to a company during year under consideration, Assessing Officer had rightly made disallowance under section 40(a)(ia) of 30 per cent of said expense

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194433/tds-disallowance-under-section-40aia-to-be-made-even-on-sum-which-wasn’t-payable-at-year-end.aspx

10% embargo on payment of interest wasn’t applicable if refund arising due to self-assessment tax before 01-06-2016

INCOME TAX: Provisions of section 244A(1)(a) clearly lay down that where refund arising out of pre-paid taxes such as TCS/TDS/Advance Tax is less than 10 per cent of tax no interest is allowable. Proviso to section 244A(1)(a) which restricts interest on amount, if refund is less than 10 per cent of tax as determined under sub-section (1) to section 244A is applicable and has to be considered for computational purpose of interest computable for refund payable under section 244A(1)(a) However,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195711/10-embargo-on-payment-of-interest-wasn’t-applicable-if-refund-arising-due-to-self-assessment-tax-before-01-06-2016.aspx

GoI issues guidelines on prevention of misleading and due diligence for endorsement of advertisement

Under the Consumer Protection Act, 2019 (Act 35 of 2019), the Central Consumer Protection Authority (CCPA) is empowered to issue necessary guidelines to prevent unfair trade practices and protect consumers’ interest. Accordingly, draft guidelines for prevention of misleading advertisements and necessary due diligence for endorsement of advertisements are proposed to be notified by the CCPA for public comments.

from taxmann.com News https://ift.tt/356yJoD

Silicone Insole & Heel Cushion are parts of footwear, classifiable under Heading 6406 attracting 18% GST

GST: Silicone Insole and Heel Cushion are classifiable under Heading No. 6406 [Parts of footwear ; removable in-soles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof] as parts of footwear and, hence, do not qualify to be termed as footwear having a retail sale price not exceeding Rs.1000 per pair,

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

Capital contribution by partners can’t treated as interest free funds if firm paying interest on it

INCOME TAX : In case of bogus purchases ad hoc addition cannot be made rather same has to be made to extent of difference between gross profit rate on genuine purchases and gross profit rate on hawala purchases

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195418/capital-contribution-by-partners-can’t-treated-as-interest-free-funds-if-firm-paying-interest-on-it.aspx

Capital contribution by partners aren’t treated as interest free funds if firm paying interest on it

INCOME TAX : In case of bogus purchases ad hoc addition cannot be made rather same has to be made to extent of difference between gross profit rate on genuine purchases and gross profit rate on hawala purchases

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195418/capital-contribution-by-partners-aren’t-treated-as-interest-free-funds-if-firm-paying-interest-on-it.aspx

‘Ambulance’ is classifiable under Heading No. 8702: CESTAT, Chandigarh

GST/EXCISE/ST/VAT : Ambulance supplied by assessee would be classifiable under Heading No. 8702

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194970/‘ambulance’-is-classifiable-under-heading-no-8702-cestat-chandigarh.aspx

Spare parts welded into seat frame are integral part of seats of motor vehicles, classifiable under Heading 94019000

GST/EXCISE/ST/VAT : Where child parts imported by assessee were integral parts of seats of motor vehicles and not like accessories fitted in motor vehicle, they would be appropriately classifiable under CETH 9401 90 00 of Customs Tariff Act

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

SC allows telecom companies to pay AGR dues arising from use of spectrum within 10 years in equal installments

COMPANY LAW/INDIAN TELEGRAPH ACT : Where there were huge arrears on telecom companies concerning spectrum licence, telecom companies were to be allowed to pay Adjusted Gross Revenue (AGR) charges within a period of ten years in equal yearly instalments and for demand raised by Department of Telecom in respect of AGR dues determined by instant Court, there shall not be any dispute raised by any Telecom Operator and there shall not be any reassessment Further,

from www.taxmann.com Latest Case Laws https://ift.tt/2Z3itB4

Companies Fresh Start Scheme, 2020 –One time last opportunity to get rectify non-compliances

The MCA on 30th March 2020 launched a compliance relaxation scheme namely, Companies Fresh Start Scheme, 2020. The Scheme was formulated to provide opportunities to companies to make good of any filing default, and make a fresh start as a fully legally compliant entity.

from taxmann.com News https://www.taxmann.com/topstories/222330000000020879/companies-fresh-start-scheme-2020-–one-time-last-opportunity-to-get-rectify-non-compliances.aspx

No section 194N TDS if cash withdrawn isn’t income of account holder: Madras HC

INCOME TAX : Having regard to the overall scheme of the chapter XVII and particularly, by reading Section 194N along with Section 201 of the Act, it can be safely concluded that if the sum received by the assessee will not be an income at his hands, then, the question of deduction under Section 194N of the Act will not arise

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195673/no-section-194n-tds-if-cash-withdrawn-isn’t-income-of-account-holder-madras-hc.aspx

Clock is ticking as deadline approaches for availing benefits under LLP Settlement Scheme 2020

In order to reduce the compliance burden of LLPs during the Covid-19 pandemic, the Ministry of Corporate Affairs had issued the LLP Settlement Scheme, 2020 on March 04, 2020 providing one time opportunity to LLPs to make good non-compliances.

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

No section 194N TDS if cash withdrawn isn’t income of accountholder: Madras HC

INCOME TAX : Having regard to the overall scheme of the chapter XVII and particularly, by reading Section 194N along with Section 201 of the Act, it can be safely concluded that if the sum received by the assessee will not be an income at his hands, then, the question of deduction under Section 194N of the Act will not arise

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195673/no-section-194n-tds-if-cash-withdrawn-isn’t-income-of-accountholder-madras-hc.aspx

Excess CST paid on account of denial of Form ‘C’ is allowed as refund to buyer: GUJ HC

GST/EXCISEZ/ST/VAT : Where assessee, a manufacturer of cement, was registered under Central Sales Tax Act in State of Rajasthan and Competent Authority of State of Rajasthan wrongly refused to issue Form 'C' to assessee for purchase of diesel at concessional rate of 2 per cent and thereupon seller, who was located in Gujarat,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195426/excess-cst-paid-on-account-of-denial-of-form-‘c’-is-allowed-as-refund-to-buyer-guj-hc.aspx

No penalty to be imposed for violation of anti-profiteering provisions from 1-7-2017 to 30-6-2018: NAA

GST: Penalty proceedings initiated against builder for not passing on benefit of ITC to buyers of flats in contravention of provisions of section 171(1) were to be set aside as penalty provisions came into existence from 1-1-2020 and, were not in existence when builder had violated provisions of section 171(1)

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

Business loss can be set off against dividend income received from specified foreign company

INCOME TAX : There is no provision in section 115BBD to eliminate dividend income received from specified foreign company before setting off of loss

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

Govt. bans 118 Chinese mobile apps including PUBG amid border conflict with China

The Central Government has banned 118 Chinese mobile apps, including the popular game PUBG. The apps have been banned by the Ministry of Electronics and Information and Technology as "they are engaged in activities prejudicial to sovereignty and integrity of India, defence of India, security of State and public order. This move will safeguard the interests of crores of Indian mobile and internet users.

from taxmann.com News https://ift.tt/2ETt8Ho

Amendment to Sec. 115BBE restricting set off losses against deemed income is applicable prospectively: Madras HC

INCOME TAX: Amendment brought in sub-section (2) of section 115BBE by Finance Act, 2016, whereby set off of losses against income referred to in section 68 was denied, would be effective from 1-4-2017

from www.taxmann.com Latest Case Laws https://ift.tt/3lGx7bd

Shading net fabric used for protecting crops is classified under tariff item 60059000: CESTAT, Bangalore

GST/EXCISE/ST/VAT : Shading net fabric manufactured out of tapes of less than 5 mm width made from HDPE Granules and used for protecting crops from birds would be classifiable under Heading No. 6005 90 00

from www.taxmann.com Latest Case Laws https://ift.tt/3gR6OeH

Notification No. 71/2020 [F. No. 225/136/2020-IT A.II]

Publish Date : Monday, August 31, 2020

from RSS FEED for Income Tax India : Communications https://ift.tt/3lHBuD4

No sec. 80-IB deduction towards flats whose completion certificate wasn’t obtained from concerned authority

INCOME TAX : In order to get deduction under section 80-IB(10) after completion of project, completion certificate has to be obtained from concerned authority i.e. Municipal Corporation

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194461/no-sec-80-ib-deduction-towards-flats-whose-completion-certificate-wasn’t-obtained-from-concerned-authority.aspx

Rejection of bail application of accused on ground of COVID-19 not arbitrary, petitioner was entitled to seek bail: HC

FEMA, INSURANCE & BANKING : Where petitioner committing offences under PMLA sought for interim bail on ground of prevalence of COVID-19 but same was rejected by High Powered Committee, decision of High Powered Committee was not arbitrary and petitioner was entitled to seek bail in terms of Cr. P.C., 1973

from www.taxmann.com Latest Case Laws https://ift.tt/32ICr5d

SC remanded matter of valuation of excisable goods to Comm. for re-adjudication on basis of principles cited by it

GST/EXCISE/ST/VAT: Supreme Court remanded question of valuation of excisable goods for purpose of charging duty for fresh consideration on basis of principles enumerated by it in cases where assessment year was prior to 1-7-2000 and in cases post 1-7-2000 when section 4 of Central Excise Act was amended

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No sec. 80-IB deduction in respect flats whose completion certificate wasn’t obtained from concerned authority

INCOME TAX : In order to get deduction under section 80-IB(10) after completion of project, completion certificate has to be obtained from concerned authority i.e. Municipal Corporation

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000194461/no-sec-80-ib-deduction-in-respect-flats-whose-completion-certificate-wasn’t-obtained-from-concerned-authority.aspx