No reassessment if an error discovered by AO on reconsideration of material used during assessment

INCOME TAX : Oversight, inadvertence or mistake of Assessing Officer or error discovered by him on reconsideration of same material is mere change of opinion and does not give him power to reopen a concluded assessment

from www.taxmann.com Latest Case Laws https://ift.tt/39uFDG6

Provisions of Sec. 234D are applicable from prospective effect in absence of any express wording: Madras HC

INCOME TAX : Levy of interest under section 234D is only prospective i.e. from day it came into force i.e., 1-6-2003; thus, interest under section 234B is leviable only after assessment year 2004-05 prospectively

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

Employees seconded by group co. can’t be considered as Manpower Recruitment Services, thus no ST to be paid

EXCISE/ST/VAT : Where assessee were engaged in providing software development and IT enabled services and Commissioner by impugned order had confirmed demand along with interest and penalties on ground that assessee had evaded payment of service tax on 'Manpower Recruitment and Supply of Manpower Agency Service', it was held that persons seconded to assessee by its group company were working in capacity of employees and payment of salaries etc.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197949/employees-seconded-by-group-co-can’t-be-considered-as-manpower-recruitment-services-thus-no-st-to-be-paid.aspx

Provisions of RTI not to be resorted to when information was to be accessed through mechanism provided HC rules

COMPANY LAW/RTI : Where information was to be accessed or certified copies on judicial side was to be obtained from High Court through mechanism provided under High Court Rules, provisions of RTI Act was not to be resorted to

from www.taxmann.com Latest Case Laws https://ift.tt/3oxQP9t

ICSI revises guidance note on Board meetings and General Meetings

To align the Guidance Note with the legal amendments brought in by the Companies (Amendment) Act, 2017 and to specify the relaxations given by MCA due to COVID-19, the same has been revised by the ICSI on the basis of the relevant provisions of the Act and the rules, circulars, clarifications etc. issued by the MCA until 31st December, 2020. The Institute of Companies Secretaries of India (ICSI) has revised the Guidance note on General Meetings and Board Meetings.

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

Key Discussions about ‘Taxes’ and ‘IBC’ in Economic Survey

Today the Finance Minister, Smt. Nirmala Sitharaman, presented the Economic Survey in the Parliament that details the state of the economy ahead of the General Budget for the Financial Year 2021-22.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021176/key-discussions-about-‘taxes’-and-‘ibc’-in-economic-survey.aspx

Benefit of LTC cannot be disallowed just because travel itinerary include overseas travel: Mumbai ITAT

INCOME TAX : Where employee has actually travelled, as a part of composite itinerary involving a foreign sector as well, to destination in India, whatever may be the position with respect of taxability of such a leave travel concession in hands of employee, assessee-employer cannot be faulted for not deducting tax at source from leave travel concession facility allowed by him to employees

from www.taxmann.com Latest Case Laws https://ift.tt/3opV5rf

SC stayed Delhi CESTAT order that rules parking fees to be taxed as 'Management Fees'

EXCISE/ST/VAT : Delhi CESTAT judgment levying service tax on operation of parking facility provided by entities to shopping malls under activity of management, maintenance or repair service was to be stayed and notice was to be issued to revenue

from www.taxmann.com Latest Case Laws https://ift.tt/36n9U7I

‘Economic Survey 2020-21’ tabled in the Parliament; V-shaped recovery for Indian Economy projected

The Economic Survey for the year 2020-21 has been tabled in the Parliament on January 29, 2021. The Economic Survey reviews the developments in the Indian economy over the previous 12 months. The government elaborated on the V-shaped economic recovery due to timely stringent lockdown amid COVID-19.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021174/‘economic-survey-2020-21’-tabled-in-the-parliament-v-shaped-recovery-for-indian-economy-projected.aspx

AO cannot issue notice to partners to question firm’s investments if firm failed to file ITR: High Court

INCOME TAX : Just because partnership firm failed to file its return of income for relevant year, by itself, will not confer jurisdiction upon authority concerned to issue notice against individual partners of firm with respect to their individual return of income for relevant year in consideration

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197943/ao-cannot-issue-notice-to-partners-to-question-firm’s-investments-if-firm-failed-to-file-itr-high-court.aspx

High Court upholds action of election officer directing fresh draw of lots of members of council of IISLA

FEMA, BANKING amp; INSURANCE : Where election officer directed fresh draw of lots of 2/3rd outgoing members of Indian Institute of Insurance Surveyors (IISLA) due to death of one of council members, there was no infirmity in steps taken by election officer to warrant any interference in election process

from www.taxmann.com Latest Case Laws https://ift.tt/3t5QfD3

Buyer’s premise can’t be considered as Place of Removal amp; thus freight amount is to be excluded from assessable value

EXCISE/ST/VAT : Place of removal would necessarily be manufacturer's factory, depots or warehouse belonging to manufacturer from where excisable goods are to be sold and buyer's premises can never be place of removal so as to merit inclusion of freight amount incurred for delivery of goods from factory to buyer's premises

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197948/buyer’s-premise-can’t-be-considered-as-place-of-removal-amp-thus-freight-amount-is-to-be-excluded-from-assessable-value.aspx

Offender under PMLA released on bail as prosecution couldn’t establish likelihood of committing offence during bail

FEMA, BANKING amp; INSURANCE : Where applicant had been arrested and remanded to judicial custody for offence under PMLA and there was no doubt about complicity of applicant and there were no reasonable grounds to believe that he was not guilty and prosecution had not been able to establish that there was a likelihood of applicant committing any offence while on bail and fact that fact that money allegedly laundered was less than rupees one crore and applicant was suffering from various illness,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197933/offender-under-pmla-released-on-bail-as-prosecution-couldn’t-establish-likelihood-of-committing-offence-during-bail.aspx

High Court quashed order passed by ITAT upholding disallowance merely on basis of order passed in preceding year

INCOME TAX : Where Tribunal had upheld disallowance under section 37(1) of commission payment made by Assessing Officer on basis of order for preceding year, since material had been produced by assessee which was not considered by Tribunal and Tribunal had upheld disallowance under section 37 merely on basis of order passed in respect of preceding year, order passed by Tribunal was cryptic and suffered from vice of non- application of mind

from www.taxmann.com Latest Case Laws https://ift.tt/3cmLW0j

SEBI proposes to introduce provision relating to appointment/ re-appointment of WTD under LODR regul

The market regulator, SEBI has proposed to insert provision relating to appointment/ re-appointment of persons who fails to get elected as whole time director whereby it has proposed that a person rejected by a listed company's shareholders as a managing director or whole-time director can be appointed or re-appointed to the posts only after the company fulfils various conditions, including providing detailed justifications

from taxmann.com News https://ift.tt/2Ymdue1

Borrower entitled to institute a suit to redeem its rights on suit property in absence of pending proceedings before DRT

FEMA, BANKING amp; INSURANCE : In absence of pendency of any application before DRT by bank or in absence of any proceedings under section 13 of SARFAESI, borrower who has taken home loan can institute a suit to redeem his rights on suit property

from www.taxmann.com Latest Case Laws https://ift.tt/3aasQI7

Suit against denial of Green Card to a class of member by Delhi Gymkhana club was maintainable: Delhi HC

COMPANY LAW : Where plaintiffs who were all members of defendant Club filed suit, against policy of extending facility of issuing Green Card only to those children of members who enjoyed facilities of Club while being minors, and according to plaintiffs by denying Green Card to a class of members club was acting inequitably,

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

User guide for filing new online application to Policy Relaxation Committee under FTP: DGFT

Paragraph 2.58 of FTP provides for relaxation of Policy and Procedures on grounds of genuine hardship amp; adverse impact on trade. A Policy Relaxation Committee is accordingly constituted under FTP. For filing application online, the DGFT has released a user guide. Further, FAQs are also issued in this regard.

from taxmann.com News https://ift.tt/3pm9oyA

Provisions of sec. 50C not applicable on transfer of leasehold rights in land and building

INCOME TAX : Section 50C covers only capital asset being land or building or both; it would not cover transfer of leasehold rights in land and building

from www.taxmann.com Latest Case Laws https://ift.tt/2YkBC0x

HC justified sec. 40A(3) disallowances as assessee’s case wasn’t covered under exceptions provided under rule 6DD

INCOME TAX : Where assessee made payments in cash at place which had banking facilities, contrary to its stand that place did not have banking facilities and thereby failed to prove that it was covered in exception clause as provided under section 40A(3) read with rule 6DD, Tribunal was right in applying provisions of section 40A(3)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196953/hc-justified-sec-40a3-disallowances-as-assessee’s-case-wasn’t-covered-under-exceptions-provided-under-rule-6dd.aspx

Amendment to sec. 55A empowering AO to make reference to valuation officer in case of variation has no retro effect

INCOME TAX : Amendment brought in section 55A(a) with effect from 1-7-2012 by Finance Act, 2012, according to which reference could be made by Assessing Officer to DVO if value of immovable property determined by assessee was lesser than FMV of property, is applicable prospectively

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

No sec. 263 revision merely on ground that AO passed an order relying on ITAT ruling which was reversed by HC

INCOME TAX : Where out of provision of Rs. 407 crore made by assessee bank for depreciation on investment, Assessing Officer had added only Rs. 233 crore relating to investments in India and excluded Rs. 175 crore pertaining to investment outside India, in view of Tribunal's order for earlier years upholding such addition, order of Assessing Officer could not be termed as erroneous

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

No sec. 263 revision mere ground that AO passed an order relying on ITAT judgment which was reversed by HC

INCOME TAX : Where out of provision of Rs. 407 crore made by assessee bank for depreciation on investment, Assessing Officer had added only Rs. 233 crore relating to investments in India and excluded Rs. 175 crore pertaining to investment outside India, in view of Tribunal's order for earlier years upholding such addition, order of Assessing Officer could not be termed as erroneous

from www.taxmann.com Latest Case Laws https://ift.tt/3t05c9N

High Court refuses to reopen its own decision regarding eligibility of exemption u/s 58A

COMPANY LAW : Where High Court in earlier petition filed under section 482 Cr.P.C. held that trial Court would decide matter as regards complaint filed under section 58A of Companies Act, 1956, another petition filed on very same issue was to be dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/3pjJLy8

Amendment to sec. 54EC restricting investment in new assets to Rs. 50 lakhs is prospective in nature

INCOME TAX : Amendment to section 54EC brought with effect from 1-4-2015 restricting investment in assets from sale consideration on sale of original asset to Rs. 50 lakhs is prospective in nature, thus; prior to assessment year 2015-16, it was possible for assessee to claim deduction of Rs. 1 crore by investing Rs. 50 lakhs in each of financial years but within six months from date of transfer

from www.taxmann.com Latest Case Laws https://ift.tt/3iJshc4

HC directs NCLT to entertain appellant's plea within two weeks for seeking proportional representation in Co.

COMPANY LAW : Where appellant filed writ petition seeking proportional representation in company as per equity but Single Judge dismissed it on ground of availability of alternative remedy before NCLT, as per High Court's decision, NCLT should entertain appellant's application within 2 weeks

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

No TDS u/s 194H on service charges paid to companies for routing transactions of payments

INCOME TAX : Service charges paid by assessee bank to National Financial Switch and Cash Tree for routing transactions of payments made by customers of assessee-bank to acquiring bank would not be liable to TDS deduction under section 194H

from www.taxmann.com Latest Case Laws https://ift.tt/3pfFUC9

Key takeaways from new ‘CSR norms’

In order to expand the scope and monitor the intermediaries which are in the domain of social activities, the Ministry of Corporate Affairs (MCA) has come up with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 on 22.01.2021.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021165/key-takeaways-from-new-‘csr-norms’.aspx

Name of Co. struck of on failing to file financials was to be restored when RoC had no objection to restore name

COMPANY LAW : Where RoC struck off name of petitioner company from register of companies on account of its failure to furnish financial statements, in view of fact that company was carrying on its operation and appellant-shareholder having submitted copy of statement of bank account for last three years along with status of Directors DIN on MCA Portal and RoC having stated that he had no objection to restore name of said company in register, name of company was to be restored

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

Cancellation of exchange membership of continuous violator was upheld by SAT

COMPANY LAW/SEBI : Where appellant, member of respondent-exchange, was a continuous violater who had failed to redress complaints of investors despite sufficient opportunity, appellant was rightly expelled from membership of exchange and was declared as defaulter

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

Royalty paid to acquire technical know-how to be used in manufacture is capital expenditure

INCOME TAX : Payment of royalty by assessee for obtaining right to use technical know-how for manufacture of a product under licence for more than 11 years, was a capital expenditure not allowable under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3qHE4dK

A land couldn't be treated as agricultural land merely because it categorised as agricultural land in revenue records

INCOME TAX : Mere classification of land in revenue record, as agricultural land, will not conclusively prove that nature of land was an agricultural land , hence, where no evidence was produced by assessee to establish character of land sold by it as agricultural land, Assessing Officer had rightly held that land was not an agricultural land

from www.taxmann.com Latest Case Laws https://ift.tt/3a0p8k2

NCLT admits ISRO-arm Antrix Corp. plea to liquidate Devas multimedia for obtaining contract from Govt. through fraud

COMPANY LAW : Where prima facie it was proved that respondent No. 1 company was incorporated and obtained a contract from Government of India within one and half months of its incorporation without having any technical experience, by resorting to various frauds, misfeasance, connived with officials etc., provisional liquidator was to be appointed to take into his custody or control all property, effects and actionable claims to which respondent No. 1 company was or appeared to be entitled to,

from www.taxmann.com Latest Case Laws https://ift.tt/394ARim

Section 124 of Cos. Act is constitutionally valid as it doesn't allow Cos to enrich if depositor fails to stake claim

COMPANY LAW : Section 124 has been enacted to ensure that a company does not unjustifiably and unduly enrich themselves, when depositors have failed to stake claim; it is a worthy and meritorious legislation which is on whole beneficial and advantageous and in public interest; section 124 is constitutionally valid

from www.taxmann.com Latest Case Laws https://ift.tt/3sPUkv1

Dept. is bound to compute assessee's tax liability as per rule 28AA before rejecting application for nil deduction certificate

INCOME TAX : Where impugned order rejecting assessee's request for nil rate certificate was passed by Assessing Officer without making any reference to rule 28AA, same deserved to be set aside and, matter was to be remanded back for disposal afresh

from www.taxmann.com Latest Case Laws https://ift.tt/2Y2BgeX

AO should assign reasons for grant of lower deduction certificate if assessee has applied for nil deduction certificate

INCOME TAX : Where lower rate tax certificates were issued to assessee under section 197 as against request for such certificate at nil rate, however, no reasons were provided for not granting nil rate certificates and contemporaneous order required to be passed under section 197 was also not available, matter was to be remanded back to Deputy Commissioner for passing order afresh

from www.taxmann.com Latest Case Laws https://ift.tt/3p9aFbZ

Review petition cannot be entertained merely on basis of any subsequent ruling or change in law: Supreme Court

INCOME TAX : Change in law or subsequent decision/judgment of a co-ordinate or larger Bench by itself cannot be regarded as a ground for review; hence Review petition against judgment in Justice K.S. Puttaswamy (Retd.) v. Union of India [2018] 97 taxmann.com 585 (SC) in relation to majority opinion upholding certification of Aadhaar Act as a 'Money Bill' within meaning of Article 110 was to be dismissed.

from www.taxmann.com Latest Case Laws https://ift.tt/35ZUZ38

Plaintiff in control of group Cos. to implement decision of Court's appointed committee over estate of deceased : HC

COMPANY LAW : Where Testamentary Suit was pending and Court appointed Administrator Pendente Lite (APL) over estate of deceased, plaintiffs in control of group companies should implement decision of APL Committee; they should restrain from drawing any benefit personally from out of assets of estate of deceased and holding any office in any of entities

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

IBBI disposes of SCN issued to registered valuer organization for enrolling ineligible members with a caution

COMPANY LAW : Where registered valuer organization due to a bona fide and inadvertent error had allowed ineligible candidates to be enrolled as members of its organization, however, after taking notice of aforesaid irregularities had taken corrective course of action, show cause notice issued to organization was to be disposed of by warning that it should be extremely careful, diligent and take effective steps to improve process of enrolling members

from www.taxmann.com Latest Case Laws https://ift.tt/3qG2pRl

Appellants who repeatedly placed large number of sell order in different platform below LTP violated PFUTP norms

COMPANY LAW : Where pursuant to investigation into trading in scrip of Blue Blends it was found that appellants had unilaterally manipulated price of scrip of Blue Blends by placing a large number of sell orders repeatedly on several trading dates below Last Traded Price (LTP), appellants were in violation of PFUTP regulations

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

No ST on activity of 'work wear rental' as it did not fall under the category of supply of tangible goods

EXCISE/ST/VAT : Where assessee was engaged in activity of 'work wear rental', said activity would not fall under category of supply of tangible goods so as to attract service tax

from www.taxmann.com Latest Case Laws https://ift.tt/3c2UKIq

One-time composite payment made in respect of 90 years lease is allowable over period of lease in equal proportion

INCOME TAX : Where as a result of demerger of parent company, few units were merged with assessee subsidiary company, legal and professional expenses towards demerger of units of parent company was to be allowed only to parent demerged company and not to resultant assessee company

from www.taxmann.com Latest Case Laws https://ift.tt/3p25oms

Onus is on AO to produce comparable cases so as to prove that payment made to directors were excessive: ITAT

INCOME TAX : Where entire credit balance in accounts of assessee were outcome of purchases made during year and purchases had been accepted as genuine and no adverse inference had been drawn, lower authorities were not at all justified in making addition of balance outstanding

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

Director not involved in day-to-day affairs is not guilty of fraud in issue of GDRs by Company : SAT

COMPANY LAW : Where appellant, a non-executive independent director of company, was not involved in day-to-day affairs of management of company in which there was fraud in issue of GDR, appellant could not be debarred from accessing securities market for violating provisions of PFUTP Regulations

from www.taxmann.com Latest Case Laws https://ift.tt/3nXvs0K

Sec. 40A(3) disallowances couldn't be attracted if identity of sellers amp; source of cash payment were established

INCOME TAX : Where transactions of payments made in cash by assessee for purchase of land were duly recorded in its books of account and also disclosed in its return of income filed before date of search of assessee, these transactions could not be considered as incriminating material found during course of search so as to initiate impugned proceedings under section 153A(3) upon assessee

from www.taxmann.com Latest Case Laws https://ift.tt/2XSKp9X

Loose sheets of bogus donations can't be treated as incriminating material if such donations were duly recorded in books

INCOME TAX : Where Assessing Officer initiated proceedings under section 153C against assessee on basis of loose sheets found during search showing that assessee had received bogus donation, since such donation was duly recorded in books of account of assessee and disclosed in return of income and donation was received through proper banking channel, such loose sheets could not be considered as incriminating material so as to initiate proceedings under section 153C upon assessee,

from www.taxmann.com Latest Case Laws https://ift.tt/3quAN1s

Prosecution proceedings justified as assessee didn't disclose capital gains earned from share transactions

INCOME TAX : Where assessee entered into several share transactions and earned short-term capital gain of huge amount from it, however, he did not disclose such gain in its return of income and evaded payment of tax on same, impugned prosecution proceedings initiated against assessee under section 276C for concealment of income with a view to evade tax was justified and same was to be upheld

from www.taxmann.com Latest Case Laws https://ift.tt/39CpHR4

SEBI Chairman meets industry representatives on Business Responsibility and Sustainability Reporting

SEBI Chairman meets industry representatives on Business Responsibility and Sustainability Reporting by listed companies

from taxmann.com News https://ift.tt/35P56YJ

Benefit of Sec. 54G exemption isn't available if land was notified as urban land after its sale: High Court

INCOME TAX : Where land sold by assessee was declared an urban land for the purpose of section 54G after its sale and said notification had no retrospective effect, assessee wasn't entitled to claim exemption under section 54G

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

FA, 2020 amendment increasing safe harbor limit u/s 50C to 10% is applicable retrospectively: ITAT

INCOME TAX : Amendment in scheme of section 50C(1), by inserting third proviso thereto and by enhancing tolerance band for variations between stated sale consideration vis-à-vis stamp duty valuation from 5 per cent to 10 per cent, are curative in nature, and, therefore, these provisions, even though stated to be prospective, must be held to relate back to date when related statutory provision of section 50C, i.e. 1-4-2003

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

ITAT is bound to decide appeal on merits even if assessee wasn't present during hearing : Bombay High Court

INCOME TAX : In view of rule 24, Tribunal was not justified in dismissing appeals in limine for absence of assessee and it ought to have decided appeals on merits after hearing respondent, even if assessee was not present when appeals were taken up for hearing

from www.taxmann.com Latest Case Laws https://ift.tt/3nRl22N

AO is bound to allow set-off of unabsorbed losses even if same is not claimed by assessee

INCOME TAX : Assessing Officer cannot reject legitimate claim of set-off of unabsorbed losses even when assessee omits to claim same in return

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

Benefit of Rule 6DD(k) not available if no amount was debited in Pamp;L a/c reflecting commission payment to agent

INCOME TAX : Benefit of Rule 6DD(k) is not available if assessee claimed to have sold goods with help of commission agent but there was no amount debited in his profit and loss account reflecting commission payment

from www.taxmann.com Latest Case Laws https://ift.tt/35N6cUN

Application seeking investigation u/s 213 to be dismissed without satisfaction of existence of circumstances

COMPANY LAW : Where appellant alleging fraudulent collusion on officer and employee of a Government company failed to bring material which could invoke satisfaction of existence of circumstances to initiate investigation under section 213, application filed by appellant was to be dismissed

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

Land Development Authority discharging statutory function isn’t an activity in nature of trade or commerce: Agra ITAT

INCOME TAX : Where assessee Jhansi Development Authority was an extended arm of the UP State and discharging its statutory functions under the authority of the UP Act under which it was created; it couldn't be said that assessee was engaged in commercial activities by virtue of Section 2(15) of the Income-tax Act, 1961

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197765/land-development-authority-discharging-statutory-function-isn’t-an-activity-in-nature-of-trade-or-commerce-agra-itat.aspx

Amount of service tax paid but not realized from client is allowable as business expenditure: AAR

INCOME TAX : Where assessee-company, incorporated to carry on business of providing technical consultancy relating to coal mining and related activities, rendered services to a company namely, 'SPL' under an Association Agreement but 'SPL' did not honour its obligations under said agreement and therefore, assessee claimed its past dues for development fee, for reimbursement of expenses and of liquidated damages,

from www.taxmann.com Latest Case Laws https://ift.tt/3if4wsd

An independent director shall be held liable only in respect of an act by Co. which occurred with his consent

COMPANY LAW : Where appellant was inducted as an independent director of company, and there was no finding that act of company in collection of funds under collective investment scheme without obtaining certificate of registration occurred with appellant's knowledge or consent, order of SEBI prohibiting appellant from accessing securities market for 4 years could not be sustained and same was to be quashed

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

Loss incurred in respect of investment made by assessee is to be treated as loss under the head other sources

INCOME TAX : Where assessee while working as director of company purchased one unit in a Hotel in USA but was not intending to run said unit himself but had given said unit for being run by a managing company, unit under consideration could not be construed to be a business undertaking of assessee, hence, loss from hotel unit was to be assessed under head 'income from other sources' and not as business loss

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

Prohibition on auditor not sustainable evidence to infer that such auditor acted fraudulently: NCLAT

COMPANY LAW : Where NCLT passed an order prohibiting appellant to be appointed as an auditor of any company for negligently giving clean audit report, since there was nothing on record to infer that appellant acted fraudulently or colluded with directors of company or he had misused his position as statutory auditor of company, findings of NCLT was not sustainable

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

Power of magistrate to convert trial of a complaint u/s 138 is confined to converting into summons case not trial case

FEMA, BANKING amp; INSURANCE : Power of Magistrate under second proviso to sub-section (1) of section 143 to convert trial of a complaint under section 138 of Negotiable Instruments Act, 1881 is confined only to converting case into a summons triable case and not a warrant triable case

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

Assessee is at liberty to restore appeal if declaration filed under Vivad se Vishwas Act was decided against him

INCOME TAX : Where assessee had filed declaration in respect of tax arrears in accordance with provisions of section 4 of Direct Tax Vivad Se Vishwas Act, 2020, department was to process its application in accordance with said Act

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

Assessee having Bangalore jurisdiction couldn't challenge order of Chennai Set com before Madras HC

INCOME TAX : Where assessee was under jurisdiction of Bangalore, merely because post search settlement application was filed by assessee before Chennai Bench of Settlement Commission, order passed by Chennai Bench of Settlement Commission could not be challenged before Madras High Court

from www.taxmann.com Latest Case Laws https://ift.tt/39ASi9k

Additions made u/s 56(2) without determining actual cost of immovable property was unjustified

INCOME TAX : Where Assessing Officer mechanically applied provisions of section 56(2) to difference between stamp duty value and actual sale consideration paid by assessee and made additions, without making any efforts to find out actual cost of property, additions made by Assessing Officer were to be set aside

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

Gujarat High Court decline to interfere with CBDT’s order rejecting further increase in due dates

INCOME TAX : Central Board of Direct Taxes (CBDT) is vested with power under section 119 of the Income-tax Act to extend due date and such powers are discretionary in nature. Thus, if CBDT has looked into matter closely and has arrived at conclusion that extension of time limit for filing of Income-tax Returns and Audit Reports would not be in interest of Revenue, then it couldn't be said that CBDT has failed to exercise its discretionary powers vested in it under section 119

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197744/gujarat-high-court-decline-to-interfere-with-cbdt’s-order-rejecting-further-increase-in-due-dates.aspx

Trading members can’t receive broking income from Advisory clients for execution services: SEBI

SEBI in its interpretative letter has clarified that a trading member or its group entity cannot receive any broking income from advisory clients while providing execution services whenever such execution is emanating from advice offered by the trading member as an investment adviser.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021154/trading-members-can’t-receive-broking-income-from-advisory-clients-for-execution-services-sebi.aspx

High Court disposed of appeal filed by revenue as assessee furnished declaration under Vivad se Vishwas Act

INCOME TAX : Where subsequent to order of Tribunal setting aside assessment order, assessee filed declaration under section 4, appeal filed by revenue before High Court was to be disposed of by directing revenue to process said declaration

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

Prohibition on auditor not sustainable evidence to infer that such auditor acted fraudently: NCLAT

COMPANY LAW : Where NCLT passed an order prohibiting appellant to be appointed as an auditor of any company for negligently giving clean audit report, since there was nothing on record to infer that appellant acted fraudulently or colluded with directors of company or he had misused his position as statutory auditor of company, findings of NCLT was not sustainable

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

Govt. assistance in nature of interest free loan could not be excluded from cost of asset

INCOME TAX : Where State Government sanctioned financial assistance for rehabilitation of tsunami damaged roads and bridges, ports and harbours and Government order clearly mentioned that assistance was by way of interest free loan, said interest free loan could not be excluded from cost of assets under section 43(1)

from www.taxmann.com Latest Case Laws https://ift.tt/2XFSkr8

High Court of appeal filed by revenue as assessee furnished declaration under Vivad se Vishwas Act

INCOME TAX : Where subsequent to order of Tribunal setting aside assessment order, assessee filed declaration under section 4, appeal filed by revenue before High Court was to be disposed of by directing revenue to process said declaration

from www.taxmann.com Latest Case Laws https://ift.tt/35D0WmL

No denial of Sec. 80P deduction to ‘primary agricultural credit societies’ even if it gives loan to non-members: SC

INCOME TAX : Limited object of section 80P(4) is to exclude co-operative banks that function at par with other commercial banks i.e. which lend money to members of the public; once section 80P(4) is out of harm's way, the Primary agricultural credit societies are entitled to the benefit of the deduction contained in section 80P(2)(a)(i), notwithstanding that they may also be giving loans to their members which are not related to agriculture

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197702/no-denial-of-sec-80p-deduction-to-‘primary-agricultural-credit-societies’-even-if-it-gives-loan-to-non-members-sc.aspx

FCRA registrations expiring between 29.09.2020 to 31.05.2021 shall remain valid till May 31, 2021: G

Ministry of Home affairs, Govt. of India has extended the validity of registration certificates issued under the Foreign Contribution (Regulation) Act, 2010. The FCRA registration certificate which are expiring during the period between September 29, 2020 and May 31, 2021, The Govt. has extended the validity of the FCRA registration certificate upto May 31, 2021. As per Sec. 12(6) of the Act, a certificate granted is valid for a period of 5 years from the date of its issue.

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Provision for non-performing assets made in terms of RBI guidelines is allowable as deduction

INCOME TAX : Interest on non-performing assets could not be taxed on accrual basis in case of assessee-bank

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

No. Sec. 68 additions if accounts are manipulated by bogus entries without any actual flow of cash

INCOME TAX : Where assessee, through involvement of cashier of Bank manipulated accounts by way of bogus/fictitious entries, however transactions did not involve actual cash inflow, it was impracticable for assessee to discharge onus of establishing identity and creditworthiness of parties and genuineness of transaction, hence, section 68 was not invocable

from www.taxmann.com Latest Case Laws https://ift.tt/38Em1ir

No. Sec. 68 additions if case accounts are manipulated by bogus entries without any actual flow of cash

INCOME TAX : Where assessee, through involvement of cashier of Bank manipulated accounts by way of bogus/fictitious entries, however transactions did not involve actual cash inflow, it was impracticable for assessee to discharge onus of establishing identity and creditworthiness of parties and genuineness of transaction, hence, section 68 was not invocable

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

Revised due dates for various compliances under the Income-tax Act

Recently, the CBDT has rejected all representations to further extend the due dates for filing of Income-tax returns and tax audit report. Thus, due date extended through the Notification No. 92 /2020, dated 31-12-2020 shall be final due dates to comply with various provisions. In this article, we have enumerated the impact of recent notification on various due dates notified by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.

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No directions could be issued by High Court to AO once reassessment proceedings were held as without jurisdiction

INCOME TAX : Once re-assessment proceedings to disallow brought forward loss were held to be without jurisdiction, High Court could not issue fresh directions to Assessing Officer to look into other grounds

from www.taxmann.com Latest Case Laws https://ift.tt/3q6QPy4

Contribution towards construction of bridge to be used for transportation of assessee's goods is revenue expenditure

INCOME TAX : Application of section 14A and rule 8D is not automatic in each and every case where there is income not forming part of total income and before its application, it needs to be justified as to how expenditure incurred by assessee during relevant year related to income not forming part of its total income

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

Sec. 154 revision couldn’t be invoked to tax undisclosed income declared during search as per Sec. 115BBE

INCOME TAX : Where assessee surrenders undisclosed income during search action for relevant year, it is not necessary that tax rate has to be charged as per provision of section 115BBE

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196571/sec-154-revision-couldn’t-be-invoked-to-tax-undisclosed-income-declared-during-search-as-per-sec-115bbe.aspx

Undisclosed income surrendered during search proceedings could not be taxed at rate prescribed u/s 115BBE

INCOME TAX : Where assessee surrenders undisclosed income during search action for relevant year, it is not necessary that tax rate has to be charged as per provision of section 115BBE

from www.taxmann.com Latest Case Laws https://ift.tt/3shcmX4

NCLT directed RoC to restore name of Co. to enable Income Tax deptt. to recover it dues

COMPANY LAW: Where, IT department was an aggrieved party as it had to recover taxes and duties payable by respondent-company and great prejudice would be caused to its revenues, if name of company was not restored back to register of companies, Registrar of Companies was directed to restore name of company in its register

from www.taxmann.com Latest Case Laws https://ift.tt/3q30GF6

CPC releases handbook for tax consultants amp; taxpayers covering FAQs on topics related to ITRs

The Centralised Processing Center (CPC) has released a handbook in order to provide guidance to taxpayers and taxpayer’s representatives regarding e-filing amp; processing of returns, issue of tax refund and various other connected topics.

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

Power of magistrate to convert trail of a complaint u/s 138 is confined to converting into summons case not trail case

FEMA, BANKING amp; INSURANCE : Power of Magistrate under second proviso to sub-section (1) of section 143 to convert trial of a complaint under section 138 of Negotiable Instruments Act, 1881 is confined only to converting case into a summons triable case and not a warrant triable case

from www.taxmann.com Latest Case Laws https://ift.tt/2K3ndCB

Undisclosed income surrendered during search proceedings could not be taxed at rate prescribed u/s 115BEE

INCOME TAX : Where assessee surrenders undisclosed income during search action for relevant year, it is not necessary that tax rate has to be charged as per provision of section 115BBE

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

Gujarat High Court directed CBDT to consider extension of due date for tax audit reports and ITR

INCOME TAX : Gujarat High Court directs the CBDT to consider the due date extension before 12th January 2021. The High Court reiterated that powers given to the CBDT are beneficial in nature to be exercised for proper administration of fiscal law so that undue hardship may not be caused to the taxpayers.

from www.taxmann.com Latest Case Laws https://ift.tt/35n4JUW

RAUA received on transfer of undertaking not taxable in hands of ‘Adani’ due to diversion of income by overriding title

INCOME TAX : Where applicant seeks to know about taxability of RAUA (regulatory assets under approval) retained by Rinfra while transferring Generation, Transmission and Distribution (GTD) undertaking to applicant-AEML, and which will be recovered by AEML in trust for and on behalf of Rinfra, RAUA received by AEML will not be liable to tax in hands of AEML but will be taxable in hands of Rinfra on account of diversion of income by overriding title

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197623/raua-received-on-transfer-of-undertaking-not-taxable-in-hands-of-‘adani’-due-to-diversion-of-income-by-overriding-title.aspx

Reason for suspension or cancellation of a licence is mandatory rules, Delhi High Court

FEMA, BANKING amp; INSURANCE : Suspension or cancellation of any licence, certificate, scrip or any instrument bestowing financial or fiscal benefits can only be 'for good and sufficient reasons' and, thus, requirement of giving reasons cannot be dispensed with and is mandatory

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

HC upholds RBI's action in cancelling certificate of registration of NBFC for not achieving required Net owned fund

FEMA, BANKING amp; INSURANCE : Where petitioner, a NBFC company, failed to achieve Net Owned Fund (NOF) as required by RBI even after two years, RBI was justified in cancelling certificate of registration (CoR) of petitioner-company

from www.taxmann.com Latest Case Laws https://ift.tt/35l1wp2

Income earned from supply of manpower from India to foreign clients is eligible for Sec. 10A exemption

INCOME TAX : Where assessee-company was engaged in business of supply of manpower from India to its foreign clients after their recruitment in India, it was entitled to deduction under section 10A

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

Delay in filing of appeal due to oversight of assessee's could be condoned

INCOME TAX : Where assessee claimed condonation of delay of 124 days in filing appeal due to reason that appeal papers were prepared and handed over to Assistant of assessee's counsel for filling who failed to do so and ultimately appeal was filed belatedly through another local counsel and such contention was also supported by affidavit of previous counsel, since assessee had demonstrated bona fide reason and sufficient cause for such delay, same was to be condoned

from www.taxmann.com Latest Case Laws https://ift.tt/3os57ZM

Mere procurement of export orders by non-resident couldn't be held as managerial/consultancy services

INCOME TAX/ILT : Mere rendering of service of procurement of export orders by a non-resident company for Indian company does not fall in category of managerial/consultancy services as explained in Explanation 2 to section 9(1)(vii)

from www.taxmann.com Latest Case Laws https://ift.tt/3s56909

HC upholds RBI's action in cancelling certificate of registration of NBFC for not achieving required Net owned found

FEMA, BANKING amp; INSURANCE : Where petitioner, a NBFC company, failed to achieve Net Owned Fund (NOF) as required by RBI even after two years, RBI was justified in cancelling certificate of registration (CoR) of petitioner-company

from www.taxmann.com Latest Case Laws https://ift.tt/398L2Bh

Set-off of losses couldn’t be denied just because assessment of year in which loss was suffered is pending

INCOME TAX : Where for assessment year 2014-15, assessee's books of account was rejected and assessee's claim of loss of Rs. 81 crores was declined but on appeal, Co-ordinate Bench of Tribunal remitted matter to Assessing Officer for framing assessment de novo,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197607/set-off-of-losses-couldn’t-be-denied-just-because-assessment-of-year-in-which-loss-was-suffered-is-pending.aspx

Sec. 234A/B/C interest leviable on tax determined in modified order passed after setting aside of original order

INCOME TAX : Where modified assessment order was passed consequent to setting aside earlier order by High Court, such order was to be considered as of regular assessment order for purpose of levy of interest under sections 234A, 234B and 234C

from www.taxmann.com Latest Case Laws https://ift.tt/3hSd3RS

Charitable institute eligible to claim deduction u/s 57 if its income was brought to tax under 'other sources'

INCOME TAX : Where income of assessee charitable educational institution was brought to tax as 'income from other sources' for reason that assessee was not registered as charitable trust under section 12AA, all incidental expenditures laid out by assessee wholly or exclusively for purpose of making or earning such income were also to be allowed under section 57(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/2JUtH6I

RBI introduces ‘Legal Entity Identifier’ for Large Value Transactions in Centralised Payment Systems

The Reserve Bank of India (RBI) has decided to introduce the ‘Legal Entity Identifier’ system for all payment transactions of value Rs. 50 crore and above undertaken by entities (non-individuals) using Reserve Bank-run Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021135/rbi-introduces-‘legal-entity-identifier’-for-large-value-transactions-in-centralised-payment-systems.aspx

Writ petition is not maintainable against order of special audit issued under section 142(2A) : High Court

INCOME TAX : Where assessee was afforded opportunity of being heard by Assessing Officer, remedy of writ was not available from direction of special audit issued under section 142(2A)

from www.taxmann.com Latest Case Laws https://ift.tt/3njT5Af

Top 20 Judgements of the Year 2020 under Corporate Laws

In the year 2020, we have reported 4,361 judgments on various laws including Income-tax, Indirect Taxes, and Corporate laws, etc. In Corporate Law alone we have reported 1,300+ cases. Out of these cases, we have identified the top 20 rulings that may be relevant for future references and to decipher some aspects under Corporate Law. The summary of these 20 cases is covered in this document.

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Assessee is at liberty to restore appeal if application filed under Vivad Se Vishwas act was passed against him

INCOME TAX : Where assessee intended to avail benefit of Vivad Se Vishwas Scheme, it was to be permitted to file declaration under section 4 Direct Tax Vivad Se Vishwas Act, 2020, in Form No. 1

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

Non-deduction of tax on purchase of asset doesn’t deprive right to claim dep.: High Court

INCOME TAX : Section 40(a)(i) and (ia) provides for disallowance only in respect of expenditure, which is revenue in nature and therefore, provision does not apply to a case of assessee whose claim is for depreciation, which is not in nature of expenditure but an allowance. Depreciation is not an outgoing expenditure and, therefore, provisions of section 40(a)(i) and (ia) are not applicable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197570/non-deduction-of-tax-on-purchase-of-asset-doesn’t-deprive-right-to-claim-dep-high-court.aspx

Due dates of ROC return shall be computed based on actual due date or /extended date of AGM: MCA cla

Stakeholders may please note that there is no change in the additional fee logic of e-form MGT-7 and AoC-4/AOC-4 XBRL/AOC-4 CFS/AOC-4 NBFC for the FY 2019-20 w.e.f 01 January 2021 since extension was provided to all the companies for conducting AGM and not for filing the form.

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

DMRC being engaged in economic activities of providing mass rapid transport system in NCR is an 'enterprise'

COMPETITION LAW : DMRC engaged in economic activities of providing Mass Rapid Transport System (MRTS) in National Capital Region is covered within definition of 'enterprise'

from www.taxmann.com Latest Case Laws https://ift.tt/2X8X6Ny

NCLT allows compounding of offence punishable u/s 450 and fines Rs. 5000 against officers for violating section 19

CL : Where petitioner sought compounding of offence punishable under section 450, wherein petitioner-company allotted equity shares to its subsidiary company in violation of section 19, each officer in default as members of Board of Directors was to be subjected to a fine of Rs. 5000 as a deterrent for not repeating default in future and offence was ordered to be compounded subject to remittance of compounding fee imposed

from www.taxmann.com Latest Case Laws https://ift.tt/3rP9fFA

Bail denied to petitioner charge sheeted for offence involving siphoning of public money to tune of Rs. 2000 cr

COMPANY LAW : Petitioner chargesheeted of an economic offence involving siphoning of investor money to tune of Rs. 2000 crores, could not be granted bail in view of fact that releasing petitioner on bail would hamper tracing of money trail and additionally, accused person being influential was capable of tampering with evidence and influencing witnesses who were his subordinates

from www.taxmann.com Latest Case Laws https://ift.tt/386rlL7