RAHUL SHARMA: December 2020

Thursday, December 31, 2020

No reassessment proceedings beyond 4 years merely on basis of audit objections : Madras HC

INCOME TAX : Where there was no failure on part of assessee and it had disclosed relevant facts, merely on basis of audit objection or change of opinion, reassessment could not be made beyond period of four years from end of relevant assessment year

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

Interest rates of Small Savings Schemes for 4th quarter of FY 2020-21 remain unchanged

The Ministry of Finance vide an office memorandum on 30-12-2020 had stated that Interest rate for Small Savings Schemes for the fourth quarter of financial year 2020-21 starting 01.01.2021 would remain unchanged from those notified for the third quarter (01.10.2020 to 31.12.2020) of financial year 2020-21

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Burden is on accused to rebut presumption of existence of legally enforceable debt or liability u/s 139 of NI Act : HC

FEMA, BANKING & INSURANCE : There is always a presumption in favour of complainant that there exists a legally enforceable debt or liability and thereby burden is on accused to rebut such presumption by leading cogent evidence either oral or documentary

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

Wednesday, December 30, 2020

IFSCA permits banking units to transfer assets through any internationally recognised risk participa

The International Financial Services Centres Authority (IFSCA) has allowed Banking Units (BUs) to transfer assets to/from other financial institutions, persons resident in India and persons resident outside India through any internationally recognised standard risk participation agreement.

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AA was directed to recompute Interest on delayed payment only on unpaid dues : Kar. HC

GST/EXCISE/ST/VAT : Where assessee to have benefit under Service Tax Voluntary Compliance Encouragement Scheme, 2013 for period 2012-13 declared an amount of Rs. 23.20 lacs as tax payable and paid fully tax dues after prescribed period, interest on delayed payment should have been computed on unpaid dues and not on declared amount

from www.taxmann.com Latest Case Laws https://ift.tt/37W55DQ

No abuse of dominance by SPMCI in tender for procuring bearings as it was for OP to decide which manufacture met its need

COMPETITION ACT : Question of abuse of dominant position by OPs by way of inserting unfair/discriminatory conditions in tender for procuring bearings did not arise as bearings were widely used in many industries and not by OPs, engaged in printing bank notices alone and since products were being procured for printing machines run by OPs, it was for OPs to decide which product of which manufacturer met its requirement

from www.taxmann.com Latest Case Laws https://ift.tt/3hqxk0B

Tuesday, December 29, 2020

HC allows appellant to proceed with suit on file of Delhi HC as he was ready to reimburse costs on behalf of liquidator

COMPANY LAW : Where company in liquidation did not have sufficient funds, however, appellant/plaintiff was ready and willing to reimburse cost of contesting suit at Delhi High Court on behalf of Official Liquidator, Madras, request of appellant/plaintiff to proceed with suit on file of Delhi High Court was to be allowed

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Dep. is allowable on leased assets as AO didn't rebut corroborative evidence filed by assessee : High Court

INCOME TAX : Depreciation on leased assets to be allowed to assessee where assessee proved existence of leased assets with incontrovertible evidence

from www.taxmann.com Latest Case Laws https://ift.tt/34Rh181

Monday, December 28, 2020

Assessee can’t be held guilty for suppression of facts when valuation has been changed on advice of dept. : Madras HC

GST/EXCISE/ST/VAT : Where assessee had changed its method of valuation as per rule 8 of Excise valuation Rules on advice of Department in course of audit, Adjudicating Authority, without referring to said communication could not invoke extended period of limitation and hold that assessee was guilty of suppression of relevant facts and thereby impose duty following Rule 4 Valuation

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196132/assessee-can’t-be-held-guilty-for-suppression-of-facts-when-valuation-has-been-changed-on-advice-of-dept-madras-hc.aspx

ICSI releases guidance notes on auditing standards [CSAS-1 to CSAS-4]

The ICSI has issued first four Auditing Standards (AS), i.e (i) AS on Audit Engagement (CSAS-1) ;(ii) AS on Audit Process and Documentation (CSAS-2) ;(iii) AS on Forming of Opinion (CSAS-3) and (iv) AS on Secretarial Audit (CSAS-4), which are applicable mandatorily on audit assignments accepted by auditor on or after 01.04.2021. Guidance Notes sets out explanations, procedures and practical aspects of [CSAS-1 to CSAS-4] to facilitate compliance thereof by stakeholders.

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Absence of occupation certificate couldn't be a ground to deny exemption under section 54

INCOME TAX : Where evidence filed by assessee sufficiently demonstrated that assessee had constructed a residential house within period of 3 years from date of transfer of original asset, absence of occupation certificate would not be a ground to deny claim of assessee for deduction under section 54

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

Sec. 80G(5)(vi) amendment omitting time limits of approval by granted by CIT is effective from 01-10-2009

INCOME TAX : Without making specific observation regarding transactions involved, approval under section 80G could not be denied

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ITAT cannot direct assessee to pay disputed tax demand if AO has himself decided not to take any coercive measure

INCOME TAX : Powers of recovering disputed taxes are with Assessing Officer; once Assessing Officer has himself decided not to take coercive measures for time being and direct assessee to make payment of any part of disputed demands, it cannot be open to Tribunal to direct assessee to pay same; question of such directions by Tribunal would have relevancy only when Tribunal was to pass any stay order subject to such a condition

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Seller of an agricultural land couldn't be compelled to enforce presence of buyer before tax authorities

INCOME TAX : Where Assessing Officer made addition under section 68 in hands of assessee who was an illiterate agriculturist on account of difference between sum deposited in bank as sale proceeds and that reflected in sale deed, matter remanded to determine value of specific land at relevant time to make addition under section 68

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

Reassessment was justified as assessee claimed deduction for bid loss on chit twice

INCOME TAX : Where assessee claimed deduction on account of bid loss on chit twice, one in profit and loss account and second in memo of computation of income during relevant assessment year, reassessment proceeding to disallow excess claim of loss was proper

from www.taxmann.com Latest Case Laws https://ift.tt/37SSr8B

Provisional attachment of bank account cannot be made without Order in writing Bom. : HC

GST/EXCISE/ST/VAT : An order in writing for provisional attachment of a bank account under section 110(5) of Custom’s Act is a must before such an account could be attached

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Penalty order set aside, when interest on delayed payment already paid

GST/EXCISE/ST/VAT : Penalty under section 58 of Uttarakhand VAT Act could not be imposed on assessee for delay in deposit of tax due to COVID-19 as there was no financial loss to revenue since interest on delayed payment had been made

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Provisional release of goods permitted after furnishing Bank guarantee Guj. : HC

GST/EXCISE/ST/VAT : Where Competent Authority of Customs Department seized raw material and finished goods lying in factory of assessee and ordered for provisionally release of same on assessee furnishing bank guarantee for more than Rs. 30 crores/cash security deposit of more than Rs. 10 crores,

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

Unabsorbed depreciation can be carried forward and set-off for infinite period irrespective of AY to which it relates

INCOME TAX: Unabsorbed depreciation for assessment year 1997-98 could be allowed to be carried forward and set off after a period of eight years, in view of amended section 32(2)

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

Committee’s order classifying directors as wilful defaulter relying on unreliable report was to be set aside: HC

FEMA, INSURANCE & BANKING : Where petitioners who were directors and guarantors of company were classified as wilful defaulters by Committee for Identification of Wilful Defaulters and Review Committee without furnishing documents and information, including a copy of forensic report relied on by both Committees, it was held that Committees violated all norms of natural justice and provisions of RBI Master Circular, 2015 by relying upon such unreliable report and, therefore, impugned orders were

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197474/committee’s-order-classifying-directors-as-wilful-defaulter-relying-on-unreliable-report-was-to-be-set-aside-hc.aspx

Income earned by foreign branches of bank to be included while computing book profit under MAT: Mumbai ITAT

INCOME TAX : Income of foreign branches of banks, which are subjected to tax abroad under respective tax treaties, is to be included in taxable income of assessee, and so far as taxes paid abroad are concerned, credit for taxes so paid abroad is to be given to assessee in computation of its Indian income tax liability in accordance with provisions of related tax treaty

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

Income from ESOPs granted to consultant taxable as capital gains though such consultant became employee afterward

INCOME TAX : Where at time stock option was provided to assessee, assessee was an independent consultant of company and there was no relationship of employer and employee between company and assessee, cashless exercise of option was a transfer of capital asset by way of a relinquishment/extinguishment of right in capital asset giving capital gains

from www.taxmann.com Latest Case Laws https://ift.tt/2WP2Hs7

No. sec. 69C additions as details of parties filed by assessee were duly reflected in assessment order : ITAT

INCOME TAX : Where there was no exempt income received by assessee during year under consideration, no disallowance under section 14A could have been made

from www.taxmann.com Latest Case Laws https://ift.tt/2L4sWZ6

Advocates are eligible to be appointed as member of ‘Central Administrative Tribunal’ rules Madras HC

COMPANY LAW/TRIBUNAL, APPELLATE TRIBUNAL RULES : Where petitioner-service bar association contended that Tribunal, Appellate Tribunal and other Authorities (Qualification, Experience and other Conditions of Service of Members) Rules, 2020, significantly omit advocates from being considered as qualified and eligible for being appointed as Member with regard to Central Administrative Tribunal, as an interim measure,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000195619/advocates-are-eligible-to-be-appointed-as-member-of-‘central-administrative-tribunal’-rules-madras-hc.aspx

No capital gains if possession of land after entering into JDA agreement was taken back & there was no development

INCOME TAX : Where assessee had entered into development agreement for construction of duplex houses, however developer vanished, in case possession of land had been taken back by assessee and there was no development, assessee would not be liable for capital gains

from www.taxmann.com Latest Case Laws https://ift.tt/2KX4ngC

Sec. 153A search was justified as assessee failed to prove that cash found during search belonged to a firm

INCOME TAX : Where assessee claimed that cash seized from it belonged to a firm but there was negative cash balance in case of said firm, said cash seized was rightly assessed in hands of assessee

from www.taxmann.com Latest Case Laws https://ift.tt/37Qw4AG

Amount advanced to sister concern for business purpose as well as commercial expediency is deductible

INCOME TAX : Where assessee-company advanced certain sum to its sister concern to facilitate export transactions, said advance having been made for business purpose of assessee was allowable as deduction

from www.taxmann.com Latest Case Laws https://ift.tt/2Mc9v0W

Self-declaration by employee that he had incurred exp. towards uniform is sufficient for non-deduction of TDS

INCOME TAX : Self-certification by employees that they had incurred expenditure towards uniform was sufficient for assessee employer not to deduct TDS on reimbursement made by it to said employees towards such expenditure incurred by them

from www.taxmann.com Latest Case Laws https://ift.tt/2M8RzEh

Interest accrued on delayed refund partakes character of amount due for the purpose of Sec. 244A : HC

INCOME TAX : Under section 244A interest on delayed refund becomes part of principal amount and delayed interest includes interest for not refunding principal amount as well as interest on delayed refund

from www.taxmann.com Latest Case Laws https://ift.tt/3rzUDd1

No denial of sec. 11 exemption to institute deploying its funds to a non-profit organisation as per Govt. policy

INCOME TAX : Where a charitable institution deployed its funds in equity of a non-profit company to meet wider objectives of public charitable nature on account of Central Government policy, exemption could not be denied

from www.taxmann.com Latest Case Laws https://ift.tt/2L4sRog

Sec. 80G(5)(vi) amendment omitting time limits of approval by granted by CIT is effective from 01-10-2009

INCOME TAX : Without making specific observation regarding transactions involved, approval under section 80G could not be denied

from www.taxmann.com Latest Case Laws https://ift.tt/3rHT6BI

Saturday, December 26, 2020

ITAT cannot direct assessee to pay disputed tax demand if AO has himself decided not to take any coercive measure

Penalty order set aside, when interest on delayed payment already paid

Seller of an agricultural land couldn't be compelled to enforce presence of buyer before tax authorities

Provisional attachment of bank account cannot be made without Order in writing Bom. : HC

Reassessment was justified as assessee claimed deduction for bid loss on chit twice

Provisional release of goods permitted after furnishing Bank guarantee Guj. : HC

Unabsorbed depreciation can be carried forward and set-off for infinite period irrespective of AY to which it relates

Thursday, December 24, 2020

Committee’s order classifying directors as wilful defaulter relying on unreliable report was to be set aside: HC

FEMA, INSURANCE & BANKING : Where petitioners who were directors and guarantors of company were classified as wilful defaulters by Committee for Identification of Wilful Defaulters and Review Committee without furnishing documents and information, including a copy of forensic report relied on by both Committees, it was held that Committees violated all norms of natural justice and provisions of RBI Master Circular, 2015 by relying upon such unreliable report and, therefore, impugned orders were

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197474/committee’s-order-classifying-directors-as-wilful-defaulter-relying-on-unreliable-report-was-to-be-set-aside-hc.aspx

Income earned by foreign branches of bank to be included while computing book profit under MAT: Mumbai ITAT

Income from ESOPs granted to consultant taxable as capital gains though such consultant became employee afterward

ESOPs granted to a consultant is a capital asset; income there from is taxable under head capital gains

No. sec. 69C additions as details of parties filed by assessee were duly reflected in assessment order : ITAT

Advocates are eligible to be appointed as member of ‘Central Administrative Tribunal’ rules Madras HC

COMPANY LAW/TRIBUNAL, APPELLATE TRIBUNAL RULES : Where petitioner-service bar association contended that Tribunal, Appellate Tribunal and other Authorities (Qualification, Experience and other Conditions of Service of Members) Rules, 2020, significantly omit advocates from being considered as qualified and eligible for being appointed as Member with regard to Central Administrative Tribunal, as an interim measure,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195619/advocates-are-eligible-to-be-appointed-as-member-of-‘central-administrative-tribunal’-rules-madras-hc.aspx

Wednesday, December 23, 2020

No capital gains if possession of land after entering into JDA agreement was taken back & there was no development

Sec. 153A search was justified as assessee failed to prove that cash found during search belonged to a firm

Amount advanced to sister concern for business purpose as well as commercial expediency is deductible

Tuesday, December 22, 2020

Self-declaration by employee that he had incurred exp. towards uniform is sufficient for non-deduction of TDS

Interest accrued on delayed refund partakes character of amount due for the purpose of Sec. 244A : HC

No denial of sec. 11 exemption to institute deploying its funds to a non-profit organisation as per Govt. policy

Monday, December 21, 2020

Forex loss can be capitalised as per Sec. 43A even if Indian currency loan is subsequently converted into forex loan

INCOME TAX : Where assessee converted Indian currency loan availed for acquisition of fixed assets, namely, plant and machinery, into foreign currency loan for saving interest, loss incurred due to foreign exchange fluctuation on such foreign loan was to be adjusted against cost of concerned capital assets in terms of section 43A and depreciation was to be allowed on such adjusted value of capital assets

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

Dep. allowable if forex loss on loan utilised to acquire capital asset is adjusted against cost of such asset

Saturday, December 19, 2020

Without pointing out the error in AO’s approach, the Tribunal can’t remand back the matter for fresh consideration

INCOME TAX : Where Assessing Officer after verification found that transaction of purchase of shares by assessee was a sham transaction and that assessee could not discharge onus cast upon her to prove genuineness of transaction by producing documentary evidence and accordingly refused to entertain claim made by assessee under section 10(38) towards sale proceeds - Appeal against same was dismissed by Commissioner (Appeals),

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197369/without-pointing-out-the-error-in-ao’s-approach-the-tribunal-can’t-remand-back-the-matter-for-fresh-consideration.aspx

Eviction of occupant from provisionally attached property u/s 8(4) is neither violative of Article 14 nor article 300A

FEMA/BANKING/INSURNACE : Section 8(4) is neither violative of Article 14 nor Article 300A

from www.taxmann.com Latest Case Laws https://ift.tt/2Kax7CA

Date of registration of sale agreement to be considered as date of transfer of property for computing capital gain

INCOME TAX : Where sale agreement was registered on 26-8-2011 and at same time possession of property were also handed over to purchasers on said date itself, capital gain arising from such sale was to be assessed in assessment year 2012-13

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No TDS under section 194C on reimbursement of freight charges to C&F agent

INCOME TAX : Where assessee-company made payment of certain amount to its Forwarding & Clearing agent (C&F agent) towards reimbursement of freight charges paid by them to carriers, since such payment towards reimbursement had no income element embedded in it, assessee was not liable to deduct tax at source on same

from www.taxmann.com Latest Case Laws https://ift.tt/37xBBMn

Friday, December 18, 2020

Delhi HC directs Tata Steel to pay arrears of lease rent for using BIS's oxygen plant

COMPANY LAW/ARBITRATION : Where respondent had entered into a lease agreement with petitioner for use of oxygen plants at petitioner's integrated steel plant in Odisha and there was a clear stipulation in said lease agreement for payment of lease rent at Rs. 15 crores till 31-3-2020 and Rs.18 crores with effect from 1-4-2020

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

Waiver of loan which was never claimed as expenditure couldn't amount to cessation of trading liability

INCOME TAX : Where loan amount was never claimed by assessee as expenditure, waiver of same could not amount to cessation of trading liability and was not chargeable to tax under section 41(1)

from www.taxmann.com Latest Case Laws https://ift.tt/34oQ775

Forex loss suffered on conversion of loan taken to acquire capital asset is not deductible exp.

INCOME TAX : Where assessee incurred foreign exchange fluctuation loss on foreign currency loan which was utilised by assessee for purchase of fixed assets, such loss was to be regarded as capital in nature not allowable under section 31(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3alSN9j

Thursday, December 17, 2020

Declaring a person ‘fraud’ and ‘willful defaulter’ without giving a fair chance to explain is invalid

FEMA, INSURANCE & BANKING : To save clauses 8.9.4 and 8.9.5 of Master Circular dated 1-7-2016 on frauds, issued under section 35-A of Banking Regulation Act, 1949 by Reserve Bank of India from being declared as unconstitutional, it is essential to read principle of natural justice into said clauses as declaring a person/company 'fraud' and 'willful defaulter' without giving a fair chance to explain or challenge such finding is invalid

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197313/declaring-a-person-‘fraud’-and-‘willful-defaulter’-without-giving-a-fair-chance-to-explain-is-invalid.aspx

Trust receiving donations on behalf of beneficiaries treated as representative assessee and taxed as an individual

INCOME TAX : Where trustees of assessee-discretionary trust were appointed under Deed of Trust to benefit members of owner group and senior leader group of Shriram Group who were identified as beneficiaries and all six concerns who contributed Rs. 25 Crores formed part of Shriram Group, in view of fact that donation which was given to Trust were for benefit of persons occupying high positions in Shriram Group would clearly show that assessee received donation on behalf of beneficiaries who had b

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Change of method u/s. 56(2)(viib) was unjustified as AO didn't point any flaw in method adopted by assessee

INCOME TAX : Where assessee-company determined FMV of shares issued at premium on basis of discount cash flow (DCF) method and Assessing Officer changed same to net value added (NVA) method on ground that assessee's actual revenue varied from its projected revenue adopted for applying DCF method, since such variation between value of projected revenue and actual revenue was marginal and, further, there was no material to hold that assessee's projected revenue was fabricated, impugned change of m

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CBDT Press Release: Tax Dept. conducts search action on a Chandigarh based listed pharmaceutical Co.

The Income Tax Department carried out search and seizure operations on a Chandigarh based listed pharmaceutical company and its associated concerns. The primary allegation was that the assessee had purchased a Benami land in Indore, in the name of a conduit company. During the search, ample evidence was found and seized which clearly establishes that the Benami company is a conduit of the pharmaceutical company with no real business activity.

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Deposit of cash exceeding limit prescribed u/s 40A(3) in supplier's bank account attract disallowances

INCOME TAX : Where assessee made cash payments exceeding prescribed limit in supplier's bank account which were not routed through any clearing house or electronic transfer, such payments were to be disallowed

from www.taxmann.com Latest Case Laws https://ift.tt/3my0I64

Wednesday, December 16, 2020

No sec. 263 revision to disallow dep. on leasehold land as it was allowed by AO after due application of mind

INCOME TAX : Where Assessing Officer after due application of mind and on proper consideration of material available on record, had allowed claim for depreciation on leasehold land, Commissioner was not justified in revising said order on ground that revenue audit objection was raised in case of assessee with regard to depreciation on leasehold land as intangible asset

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

Ola and Uber do not facilitate anti-competitive practices between drivers to attract application of section 3: SC

COMPETITION LAW : Where appellant/informant filed information alleging anti-competitive conduct of Ola and Uber had entered into price-fixing agreements in contravention of section 3, it was held that Ola and Uber do not facilitate cartelization or anti-competitive practices between drivers who are independent individuals, who act independently of each other, so as to attract application of section 3 were not to be interfered with

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Company Court rightly transferred winding up plea to NCLT where no irreversible steps for winding up had taken place

COMPANY LAW : Where liquidator had taken possession and control of registered office of company and its factory premises, records and Books but no irreversible steps towards winding up of company had otherwise taken place, Company Court had correctly exercised discretion vested in it by 5th proviso to section 434(1)(c) by transferring winding up petition to NCLT.

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Deputy Director can’t file complaint u/s 276C/277 if no incriminating materials is seized or statement is recorded

INCOME TAX : Unless strong materials seized from accused, for offence allegedly committed while filing returns and false verification filed before Assessing Authority, only Assessing Authority or any other officer authorised by that officer is competent to file a complaint under section 276C/277, not by the Deputy Director

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197311/deputy-director-can’t-file-complaint-us-276c277-if-no-incriminating-materials-is-seized-or-statement-is-recorded.aspx

Income-tax Officer (Intelligence) is competent to issue notice to call for information from credit co-operative society

INCOME TAX: Income-tax Officer (Intelligence) is competent to issue notice under section 133(6) to assessee credit co-operative society seeking information relating to its account holders or depositors who had cash deposit of rupees 5 lakhs and above in an year for last three years

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Sec. 11 exemption couldn't be denied in absence of any finding that activity carried by assessee was commercial

INCOME TAX : Where assessee-trust was established with a main object to consider all questions concerning relations between employers and employees in Southern India in order to protect their interests and lower authorities denied its claim of exemption under section 11, taking view that substantial sums of money were received by assessee from conducting conferences and seminars which were not incidental to its main objects, since lower authorities had not rendered any finding as to whether acti

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Income could not be charged to tax if its receipt was uncertain due to some dispute

INCOME TAX : Where assessee, State Government undertaking, engaged in business of transmission of electricity raised demand upon State electricity boards of other states towards transmission charges (wheeling charges) for transmission of exchange of electricity amongst those States, since there was a dispute with regard to such wheeling charges amongst all these states and these was an uncertainty of receiving same, assessee was justified in not recognising revenue on account of such wheeling ch

from www.taxmann.com Latest Case Laws https://ift.tt/3qY30i6

CBDT Press Release: Tax Dept. conducts search action on a leading builders and entry operators in Pu

The Income Tax Department carried out search and survey action on a leading builders and entry operators in the Panvel region of Pune. During Search incriminating data pertaining to routing of unaccounted income earned by way of on-money from flat and land sale from real estate projects of the group was unearthed in the form of accommodation entries of non-genuine unsecured loans through certain shell companies.

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CBDT Press Release: Tax Dept. conducts search action on a leading business group in Chennai

The Income-tax Department has conducted search and seizure operations on a leading business group in Chennai. Highlights of this search operation include seized unaccounted cash of Rs. 23 crore, foreign assets to the extent of Rs.110 crore, Inflation of expenditure and bogus claim of depreciation etc. amounting to Rs. 435 crore, Capital gains amounting to approximately Rs. 280 crore etc.

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No. sec. 263 revision to disallow dep. on leasehold land as it was allowed by AO after due application of mind

Tuesday, December 15, 2020

Transfer of shares to a step-down subsidiary created in tax haven country to avoid tax couldn’t be held as gift

INCOME TAX : Where a step-down subsidiary was created by assessee in a tax haven country to act as a conduit to escape rigour of Indian Tax Laws and assessee transferred its shareholding in a company to said step-down company who in turn transferred stake in favour of a third party investor for a consideration, sole intention of assessee being corporate re-structuring, assessee was liable to tax under section 45; such transfer was not a gift to subsidiary company

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197296/transfer-of-shares-to-a-step-down-subsidiary-created-in-tax-haven-country-to-avoid-tax-couldn’t-be-held-as-gift.aspx

SEBI issues consultation paper on review of 'Innovators Growth platform' framework under ICDR norms

The market regulator, SEBI has issued consultation paper on review of Innovators Growth platform (IGP) under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The objective of this discussion paper is to seek comments / views from various stakeholders including start-ups in particular, market intermediaries and the public on the framework of Innovators Growth platform.

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SC transfers to itself petitions pending before HCs challenging ICAI guidelines restricting number of audit by a CA

INCOME TAX/CA : Where writ petitioners filed transfer petition for various petitions filed in different High Courts challenging validity of Chapter VI of Guidelines No.1- CA(7)/02/2008, dated 8-8-2008 issued by Council of Institute which stipulated that a member of Institute in practice shall not accept, in a financial year, more than "specified number of tax audit assignments", which is at present 60 under Section 44AB of the Income-tax Act, 1961, it is held that guidelines which are impugned i

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Lapsed demand drafts, gift cheque kept in general reserve could not be treated as income of banking company

INCOME TAX : Where assessee, a banking company, had kept amount from lapsed demand drafts, gift cheques etc., in its general reserve and same was routed through its P&L account, since assessee was under an obligation to meet future claims in respect of such drafts, gift cheques etc., out of general reserve so created, amount in question could not be treated as income of assessee

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SLP dismissed against High court ruling that sale of Magazine is eligible for sec. 54G deduction

INCOME TAX : SLP dismissed against High Court's decision that where property sold by assessee was a magazine and as per scheme of Explosive Act, 1884 a 'magazine' would be equivalent to a godown and qualify to be a place used for purpose of business of an industrial undertaking, assessee was eligible to claim deduction under section 54G on sale of godown in an urban area

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ITAT was justified in deleting sec. 69B additions in the hands of partner based on capital shown in firm's accounts

INCOME TAX : Where on basis of certain loose sheets found during course of search upon firms in which assessee was a partner, Assessing Officer made addition of Rs. 85.60 lakhs to assessee’s income on account of undisclosed investment, since capital account of said firms showed that assessee had introduced capital of Rs. 60 lakhs in these firms, however, assessee failed to give any account for remaining amount of unaccounted investment of Rs. 22.60 lakhs, Tribunal was justified in deleting addit

from www.taxmann.com Latest Case Laws https://ift.tt/3oWGW5t

Mere admission of payment by creditors could not discharge burden of proof placed by sec. 68 : HC

INCOME TAX : Where Assessing Officer made certain addition under section 68 and Tribunal held that said addition was not sustainable, by accepting assessee's explanation that said amount was transferred into assessee's bank account from out of bank accounts of his brother-in-law and a close friend and, further, that said creditors confirmed to have made payment to assessee, since Tribunal ignored vital fact emanating from record that said creditors had not produced evidence to establish their ca

from www.taxmann.com Latest Case Laws https://ift.tt/3njHO40

Monday, December 14, 2020

Transfer of case was justified as show-cause notice has clearly spelt out reasons for transfer; SC dismissed SLP

INCOME TAX : SLP dismissed against High Court ruling that where assessee challenged order of transfer of its case on ground that its Chartered Accountant was 85 years old and it would cause hardship for assessee if its case was transferred, such grievance of assessee was imaginary because Income-tax returns were now filed online, thus, order of transfer of case was to be upheld

from www.taxmann.com Latest Case Laws https://ift.tt/3mdN0F3

No abuse of dominance by developer due to presence of other player in relevant market of real estate in Ghaziabad

COMPETITION LAW : Where there were several real estate developers operating in relevant market of provision of services for development and sale of plots of land for residential use in Ghaziabad region, OP developer could not be said to dominant in said relevant market

from www.taxmann.com Latest Case Laws https://ift.tt/37i1YWx

HC remanded matter as ITAT failed to examine fact that whether investment in gold bullion violate Sec. 11(5)

INCOME TAX : Where assessee educational charitable trust purchased a gold bullion and contended that as per proviso (iia) to section 13(1)(d) it could hold such gold for a period of one year from end of previous year in which same was acquired, thus, there was no violation of section 11(5), since Tribunal did not dealt with said contention of assessee and passed an order holding such purchase to be in violation of section 11(5), said order was to be set aside and matter was to be remanded

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

Discount on issue of debentures is deductible u/s. 37 in proportion to percentage of redemption

INCOME TAX : Where assessee claimed discount given on issue of debentures which were redeemable for a period of 5 years as business expenditure in year of issue itself, discount on issue of debenture was to be spread over in proportion to percentage of redeeming of such debenture

from www.taxmann.com Latest Case Laws https://ift.tt/384Fib8

Friday, December 11, 2020

HC couldn't grant relief if there was no perversity on ITAT's part in not granting interim order for stay of demand

INCOME TAX : Where there was no perversity or erroneous approach on part of Tribunal in not granting an interim order for stay of demand as sought for by assessee, said impugned order could not have been interfered with by High Court in exercise of its extraordinary jurisdiction under article 226 of Constitution

from www.taxmann.com Latest Case Laws https://ift.tt/377geBp

Amount paid over net book value of assets & liabilities acquired in amalgamation eligible for depreciation

INCOME TAX : Where assessee-company got amalgamated with another company and, at a later date, resulting/amalgamated company got converted into a LLP, but Assessing Officer framed assessment order in name of erstwhile company which was a non-existent entity at that point of time, assessment made by Assessing Officer was void-ab-initio and nullity in eye of law

from www.taxmann.com Latest Case Laws https://ift.tt/3n7ovLb

Thursday, December 10, 2020

SEBI’s pending investigation against broker in similar case couldn’t be ground to quash FIR for offences under IPC

COMPANY LAW/SEBI : Where complainant had filed an FIR against petitioner-broker and petitioner sought for quashing of FIR on ground that SEBI was also investigating a similar compliant 'it was held that fact that SEBI was investigating or prosecuting petitioner for offences under SEBI Act, or relevant regulations made thereunder did not in any manner warrant quashing of instant FIR;

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197247/sebi’s-pending-investigation-against-broker-in-similar-case-couldn’t-be-ground-to-quash-fir-for-offences-under-ipc.aspx

HC couldn't grant relief if there was no perversity ITAT's part in not granting interim order for stay of demand

Cabinet approves of Atmanirbhar Bharat RojgarYojana (ABRY)

The Cabinet has approved of Atmanirbhar Bharat RojgarYojana to boost employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0. The Govt. will provide subsidy for 2 years in respect of new employees engaged on or after 1 October, 2020 and upto 30th June, 2021. Govt. will also pay both employees' contribution and employers' contribution i.e. 24% of wages towards EPF for new employees in establishments employing upto 1000 employees for two years

from taxmann.com News https://ift.tt/371dpSg

CBDT releases FAQs on Unique Identification Number (UDIN)

As per the decision of the Council of ICAI, UDIN has been made mandatory for all certificates, GST & Tax Audit reports and all other Audit, Assurance and Attestation functions in a phased manner. The Central Board of Direct Taxes (CBDT) has issued FAQs on UDIN.

from taxmann.com News https://ift.tt/3mZbrr3

Additions under section 69B couldn't be made merely relying on confession statement obtained during search

INCOME TAX : Where Assessing Officer made addition in hands of assessee firm for unaccounted investment and purchases merely on basis of confessional statement of assessee firm's partner before DRI, but no other evidences were bought on record, said addition was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/370Eo06

Wednesday, December 9, 2020

Cabinet approves of the proposal of SEBI to sign Bilateral MoU between India and Luxembourg

The Cabinet has approved SEBI’s proposal to sign a bilateral MoU between SEBI and Financial and Commission de Surveillance du Secteur Financier (CSSF), Luxembourg. The MoU is likely to strengthen cross border cooperation in area of securities regulations and facilitate mutual assistance, contribute towards efficient performance of the supervisory functions aid in imparting technical domain knowledge and enable effective enforcement of the laws and regulations governing securities market.

from taxmann.com News https://ift.tt/37QiV9h

Benefit arising on surrender of Keyman Insurance Policy taxable as perquisites in hands of employee: Madras High Court

INCOME TAX : Where Keyman Insurance Policy was taken by employer company and assigned in favour of its employee Managing Director, on basis of section 10(10D) with its Explanation 1, character of Keyman Insurance Policy would not get converted into ordinary Life Insurance Policy despite its assignment and therefore, any benefit accruing to employee upon its surrender or encashment would be taxable in hands of employee as 'perquisite'

from www.taxmann.com Latest Case Laws https://ift.tt/2IuFF6e

No abuse of dominant position by real estate developer due to presence of several other players in relevant market

NSE could not be fastened with liability for defaults committed by its members or brokers at time of collecting STT

INCOME TAX : Tribunal was right in holding that if there was default by a member or broker registered with National Stock Exchange (NSE) at time of collecting Securities Transaction Tax (STT) in case of Foreign Institutional Investors (FIIs) in accordance with client code, liability of alleged collection could not be fastened on NSE, since NSE was to only ensure whether transaction of purchase and sale of shares was undertaken through a particular client code or not

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

Tuesday, December 8, 2020

High Court slams AO for withholding refunds so as to window dress collection of tax revenue

INCOME TAX : Mere pendency of proceedings under section 143(2) would not be sufficient to withhold refund under section 241A

from www.taxmann.com Latest Case Laws https://ift.tt/3mWyRx3

Activities of trust could not be held non-charitable on mere fact that trust has earned certain revenue

INCOME TAX : Where assessee-company, registered under section 25 of Companies Act, was engaged in imparting 'financial education/awareness' to investor in field of investments, merely because assessee earned certain revenue, it could not be said that activities of assessee were not charitable so as to cancel its registration under section 12AA

from www.taxmann.com Latest Case Laws https://ift.tt/3lQvJl3

Prior period expenses not deductible while computing book profits u/s 115JB

INCOME TAX : Where assessee-company received share application money for allotment of cumulative redeemable preference shares and as allotment was not made within specified period, assessee paid interest at rate of 8 per cent from date of receipt of share capital money and claimed aforesaid amount as business expenditure, since increase in capital resulted in expansion of capital base of company and may also help in profit making, said expenditure was capital expenditure

from www.taxmann.com Latest Case Laws https://ift.tt/2VP7sRM

Interest income earned on deposits made in ordinary course of business eligible for exemption u/s 10A

INCOME TAX : Interest on bank deposits was eligible to be included in profits of 100 per cent Export Oriented Unit for purpose of claiming deduction under section 10A or 10B

from www.taxmann.com Latest Case Laws https://ift.tt/36UxZ6B

Monday, December 7, 2020

Professional services include incidental or ancillary services connected with carrying on medical profession

INCOME TAX : Where assessee, a third party administrator (TPA), for medical insurance policies issued by Insurance companies, made payment to a hospital on behalf of insurance company for several other services rendered by hospital such as bed charges, medicines, follow up services, etc., along with medical professional services, assessee was liable to deduct tax at source under section 194J in respect of entire payment including payment made for all these other services

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

Society registered under Karnataka Souharda Sahakari Act, 1997, falls within meaning of co-operative society u/s 2(19)

INCOME TAX : Petitioner-co-operative society registered under Karnataka Souharda Sahakari Act, 1997 would fit into definition of 'co-operative society' as enacted in section 2(19) of Act, and, therefore, petitioner was entitled for benefit of section 80P

from www.taxmann.com Latest Case Laws https://ift.tt/2JKut61

Selection of case for scrutiny does not automatically amounts to withholding of refund

INCOME TAX : Mere pendency of proceedings under section 143(2) would not be sufficient to withhold refund under section 241A

from www.taxmann.com Latest Case Laws https://ift.tt/3gn2Con

Saturday, December 5, 2020

HC directs RBI to reconsider plea of JSPL to remit USD 300 million to its wholly owned Mauritius based subsidiary

FEMA, BANKING & INSURANCE : RBI was to be directed to reconsider application of petitioner, Jindal Steel and Power Ltd. (JSPL) who had sought directions from RBI to permit it to make additional commitments and payments of USD 300 million to its wholly-owned Mauritius based subsidiary by way of equity subscription or loan or corporate guarantee or bank guarantee or through other permitted mode from Indian Bank for meeting its debt obligations, as rejection of application of petitioner was illegal

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

Reassessment on mere change of opinion was unjustified as issue of non-deduction of tax was discussed during original assessment

INCOME TAX : Where aspect of non-deduction of TDS on machine hire charges was discussed by Assessing Authority during original assessment and he allowed said charges, on a mere change of opinion, Assessing Authority could not have invoked reassessment proceedings to disallow said hire charges under section 40(a)(ia)

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

AMP exp. not international transaction if distributor of AE’s product also manufacturing it under license from AE

TRANSFER PRICING : Where apart from being a distributor of products manufactured by its AE, assessee manufactured its own products in India under license from AE, AMP expenditure to promote brand would not constitute international transaction requiring any TP adjustment

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000195819/amp-exp-not-international-transaction-if-distributor-of-ae’s-product-also-manufacturing-it-under-license-from-ae.aspx

Stay of demand application could not be rejected without considering financial stringency & balance of convenience

INCOME TAX : Where Assessing Officer dismissed application for stay of recovery of demand filed by assessee on ground that mere filing of appeal against assessment order before Commissioner (Appeals) was not a valid reason for granting stay of demand, since evidently Assessing Officer had passed impugned order without considering aspects of existence of prima facie case, financial stringency and balance of convenience, impugned order was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/36NyUGd

AMP exp. Not international transaction if distributor of AE’s product also manufacturing same under AE’s license

Friday, December 4, 2020

HC refused bail to director accused for fraudulent use of mutual fund units of public company

COMPANY LAW/SEBI : Where charge sheet was filed before trial court against accused AFL, its director 'A' for fraudulent transfer of mutual fund and IL&FS and against applicant Chief Business Head of IL&FS for facilitating him in utilization of said mutual fund worth Rs. 344.07 crores of complainant company from its demat account for getting margin in derivative trading and applicant on arrest was seeking grant of bail, it was held that applicant was in a fiduciary capacity and had allegedly comm

from www.taxmann.com Latest Case Laws https://ift.tt/2VAXO5h

Sec. 234F providing levy of fee for default in furnishing return of income doesn’t offend Article 14 of Constitution

INCOME TAX : Provision of section 234F does not offend article 14 of constitution of India

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196570/sec-234f-providing-levy-of-fee-for-default-in-furnishing-return-of-income-doesn’t-offend-article-14-of-constitution.aspx

Madras HC refuses to give retrospective effect to increased tax free gratuity limit of Rs. 20 lakh

INCOME TAX : Where petitioner filed writ praying to declare that appointed date of Notification No. S.O. 1419 (E), dated 29-3-2018, which increases exemption limit in respect of amount received as gratuity under Payment of Gratuity Act, 1972 from Rs. 10 lakhs to Rs. 20 lakhs, be declared as 1-6-2016 instead of 29-3-2018, since there is no ambiguity either in section 10(10)(ii) or in amendment Notifications, petitioner has completely failed to make out a case that amendment should be implemented

from www.taxmann.com Latest Case Laws https://ift.tt/2L1vtTz

Sec. 10(23C) exemption could not be denied on ground that assessee does not have independent MOA, Bye-laws etc.

INCOME TAX : So long as assessee adheres to parameters required to be satisfied under section 10(23C) to avail exemption, it is entitled to said exemption

from www.taxmann.com Latest Case Laws https://ift.tt/36CuIZt

Thursday, December 3, 2020

No TDS u/s 194-I on one-time lump sum payment to Government for getting land lease for 99 years

INCOME TAX : One time lump sum paid by assessee to a Government undertaking for getting lease of land for period of 99 years was not a payment in nature of rent and, therefore, assessee was not required to deduct tax at sources under section 194-I on said payment

from www.taxmann.com Latest Case Laws https://ift.tt/36wsVW2

ITAT was justified in allowing deduction for bad debts as same was written off as irrecoverable in accounts

INCOME TAX : Where assessee had written off all debts pertaining to inter corporate deposits and advances given for purchase of vehicles or plant and machinery as irrecoverable in its accounts and claimed these as bad debts, there was no infirmity in decision of Tribunal in allowing assessee's claim

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

Assessment which attained finality couldn’t be disturbed where no incriminating material was unearthed during search

INCOME TAX : Where no incriminating material in respect of an earlier assessment year for which assessment had already attained finality was unearthed during course of proceedings under section 153A, Assessing Officer while completing assessment under said section could not disturb completed assessment of assessee in respect of such earlier assessment year

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196255/assessment-which-attained-finality-couldn’t-be-disturbed-where-no-incriminating-material-was-unearthed-during-search.aspx

Apollo Hospital receives NCLT's approval for Scheme of arrangement

COMPANY LAW/IBC : Where no objection was raised from any concerned party to proposed scheme of arrangement and all requisite statutory compliances had been fulfilled, impugned scheme of arrangement was to be approved

from www.taxmann.com Latest Case Laws https://ift.tt/37yFcsp

SEBI issues Consultation paper on review of ‘NCDs along with warrants’ under QIP

The market regulator, SEBI has issued Consultation paper on review of ‘NCDs along with warrants’ under QIP. The objective of this discussion paper is to seek comments / views from the public and market intermediaries on review of the ‘NCDs along with warrants’ as a stapled product offering or as a segregated product offering, through Qualified Institutional Placement (QIP) route under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (‘ICDR).

from taxmann.com News https://www.taxmann.com/topstories/222330000000021090/sebi-issues-consultation-paper-on-review-of-‘ncds-along-with-warrants’-under-qip.aspx

IFSCA obtains Membership of International Association of Insurance Supervisors (IAIS)

IFSCA obtains Membership of International Association of Insurance Supervisors (IAIS)

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

Wednesday, December 2, 2020

Mere incurrence of exp. as per share purchase agreement couldn’t be treated as exp. incurred towards transfer

INCOME TAX : Where as per share purchase agreement, shares of a company were sold by all its shareholders to another company, sum paid by shareholders to a trust proposed to be set up for benefit of ex-employees of seller company was to be regarded as voluntary payment; same was not allowable as expenditure incurred wholly and exclusively for transfer of shares

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196369/mere-incurrence-of-exp-as-per-share-purchase-agreement-couldn’t-be-treated-as-exp-incurred-towards-transfer.aspx

Order rejecting application u/s 10(23C) was to set aside as revenue erred in reading relevant AY

INCOME TAX : Where assessee educational society filed an application dated 26-3-2019 seeking grant of exemption under section 10(23C)(vi) for assessment year 2019-20 as gross receipts of assessee exceeded Rs. 1 crore in financial year 2018-19, however, revenue erroneously read year 2018-19 as assessment year instead of financial year and rejected application of assessee on ground of being barred by limitation, impugned order was to be set aside and application of assessee was to be considered on

from www.taxmann.com Latest Case Laws https://ift.tt/33xXj0a

CBDT releases MLI synthesised text for India-Portuguese DTAA

The Central Board of Direct Taxes (CBDT) has released the synthesised text for India- Portuguese DTAA., incorporating the changes made by the MLI on the basis of respective positions taken by both the countries. The MLI provisions that are applicable are included in boxes in the relevant provisions of convention.

from taxmann.com News https://ift.tt/36rj9V8

Exp. couldn't be treated as incurred towards transfer of shares just because it was required to be paid as per SPA

Cash deposits in bank account can't be assessed to tax just because rectification in PAN is not reported to bank

INCOME TAX : Where in PAN, status of assessee-firm was rectified while bank had old status, assessment of cash deposit of demonitised currency in bank account was not justified on ground of mismatch

from www.taxmann.com Latest Case Laws https://ift.tt/2HYC93M

Tuesday, December 1, 2020

Interest on bank deposits earned by an AOP being a determinate trust is taxable in the hands of beneficiaries

INCOME TAX : If assessee-trust was a determinate trust, interest income earned on bank deposits would be assessed in hands of assessee's beneficiaries and not assessee

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

Financial help provided to resulting entity after demerger couldn’t be held as violation of sec. 10(23C)

INCOME TAX : Where after their demerger, educational society, still provided financial help to another society running a hospital due to its weak financial position which was later paid back, such funding was not in violation of section 10(23C)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000196104/financial-help-provided-to-resulting-entity-after-demerger-couldn’t-be-held-as-violation-of-sec-1023c.aspx

Writ not admissible against assessment order if it was passed on merits and AO followed principles of natural justice: HC

INCOME TAX : Where writ petition had been filed raising a plea that assessment order had been passed in violation of principles of natural justice, since each and every objection raised by petitioner in his written representation, had been considered by assessing authority and it had rejected same by giving reasons, and whether reasons for rejection given by respondent is correct or not cannot be held to be violation of principles of natural justice, respondent had adhered to principles of natur

from www.taxmann.com Latest Case Laws https://ift.tt/3mr9Lq2