HC remanded matter as ITAT upheld order of CIT(A) without recording any finding

INCOME TAX : Apportionment of common expenses of STPI and non-STPI unit of assessee was to be done on basis of turnover of each of these units so as to compute deduction under section 10A in respect of STPI unit

from www.taxmann.com Latest Case Laws https://ift.tt/2NDej0u

Loss arising on sale of business assets at amount less than WDV to be treated as business loss u/s 41

INCOME TAX : Where certain assets of block of assets, not being immovable property of assessee, were sold during regular course of business, before it was wound up during relevant previous year, loss occurring on such sale at a figure less than written down value of assets should be treated as 'Business Loss' under section 41(2)

from www.taxmann.com Latest Case Laws https://ift.tt/2O3aIIM

Broken period interest paid by bank on Govt. securities allowed as deduction if same was treated as income if earned

INCOME TAX : Where assessee-bank from outset had been treating Broken Period Interest income accrued from sale of government securities as its business income under section 28(i), Broken Period Interest paid by it was to be allowed as permissible deduction

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

Deduction for bad debt doesn’t prerequisite money lending licence; writing off in books of account is sufficient

INCOME TAX : Writing off of irrecoverable loan in books of account sufficient to claim deduction for bad debts under section 36(1)(vii), assessee not required to be in money lending business to claim said deduction

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197438/deduction-for-bad-debt-doesn’t-prerequisite-money-lending-licence-writing-off-in-books-of-account-is-sufficient.aspx

Sum paid for construction of swimming pool which would display assessee’s name not allowable as advt. exp.

INCOME TAX : Where assessee, a partnership firm, contributed certain sum to a school for purpose of construction of a swimming pool in that school and claimed said sum as advertisement expenditure on ground that name of assessee was displayed near swimming pool and hence same would promote brand of assessee, since

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197262/sum-paid-for-construction-of-swimming-pool-which-would-display-assessee’s-name-not-allowable-as-advt-exp.aspx

Initiation of penalty u/s 271(1)(c) pre-requisite recording of satisfaction by AO; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that recording of satisfaction by Assessing Officer that there was concealment of income or that any inaccurate particulars were furnished by assessee was sine qua non for initiation of penalty proceedings and in absence of such satisfaction, both Commissioner (Appeals) as well as Tribunal had correctly ordered to drop penalty proceedings against assessee

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

Reassessment by placing mere reliance on investigation by Enforcement Directorate was unjustified; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that reopening of assessment on basis of investigation conducted by Enforcement Directorate, without Assessing Officer making any independent inquiry himself to hold that assessee had paid bribe to Iraqi officials and therefore same was required to be added to income of assessee was not justified

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

Deeming provisions prescribed u/s 56(2)(vii) couldn’t be applied on issue of bonus shares

INCOME-TAX : When there is an issue of bonus shares, money remains with company and nothing comes to shareholders as there is no transfer of property, and thus, provisions of section 56(2)(vii)(c) are not attracted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197522/deeming-provisions-prescribed-us-562vii-couldn’t-be-applied-on-issue-of-bonus-shares.aspx

Deduction for bad debt doesn’t prerequisite money lending business; writing off in books of account is sufficient

INCOME TAX : Writing off of irrecoverable loan in books of account sufficient to claim deduction for bad debts under section 36(1)(vii), assessee not required to be in money lending business to claim said deduction

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197438/deduction-for-bad-debt-doesn’t-prerequisite-money-lending-business-writing-off-in-books-of-account-is-sufficient.aspx

Key takeaways from Govt.’s new guidelines on social media and OTT platforms

The Central Government has issued a set of new guidelines with a view to regulate social media, online streaming, and digital content platforms. The new guidelines aim to introduce a change in legislation to incorporate self-regulation mechanisms in giant IT companies like Facebook, Google, Twitter, etc.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021243/key-takeaways-from-govt-’s-new-guidelines-on-social-media-and-ott-platforms.aspx

SEBI proposes introduction of concept of “Accredited Investors” in Indian securities market

The SEBI has issued consultation paper on introduction of concept of “Accredited Investors” (‘AI’) in Indian securities market. The paper proposes that resident Individuals, HUFs and Family Trusts having annual income - (i) greater than or equal to Rs. 2 Cr. or (ii) net worth of Rs. 7.5 Cr. or more with more than Rs. 3.75 Cr. of financial assets shall be eligible to be classified as Accredited Investors, and, in case of body corporates, the net worth should be greater than Rs. 50 Cr to be AI.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021241/sebi-proposes-introduction-of-concept-of-“accredited-investors”-in-indian-securities-market.aspx

No denial of sec. 54 relief on non-deposit of sum in capital account scheme if construction is completed within time

INCOME TAX : Where assessee invested entire sale consideration in construction of residential house within stipulated time period, exemption under section 54F could not be denied if said consideration was not deposited in capital gain scheme account during intermittent period of construction

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

Losses arising from STP/SEZ unit could be set off against other income earned by assessee

INCOME TAX : Where Tribunal allowed claim of assessee towards set off of losses of STP/SEZ unit against other income of assessee, no interference was to be called for with its order in view of decision of Supreme Court in CIT v. Yokogawa India Ltd. [2017] 77 taxmann.com 41/244 Taxman 273/391 ITR 274

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

Sec. 36(1)(iii) disallowances couldn’t be attracted where loan was advanced to sister concern in normal course of business

INCOME TAX : Where Assessing Officer had not rendered any finding as to his dissatisfaction with claim of assessee in respect of such expenditure in relation to exempt income as is required in accordance with section 14(2) for making a disallowance under rule 8D, Tribunal was right in deleting said disallowance

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196701/sec-361iii-disallowances-couldn’t-be-attracted-where-loan-was-advanced-to-sister-concern-in-normal-course-of-business.aspx

ITAT’s judgment based on appreciation of evidence on record doesn’t amount to question of law; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that where pursuant to search, certain addition of undisclosed payments were made to income of assessee and same were deleted by Tribunal based on appreciation of evidence on record, no question of law arose for consideration

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197507/itat’s-judgment-based-on-appreciation-of-evidence-on-record-doesn’t-amount-to-question-of-law-slp-dismissed.aspx

Drivers whose work is arranged through Uber smartphone App are workers entitled to workers’ rights

CL/UK SERVICE MATTER : Drivers whose work is arranged through Uber's smartphone application (Uber App) and they work for Uber under worker's contracts would qualify for national minimum wage, paid annual leave and other workers' rights; it cannot be contended that they work for themselves as independent contractors and performing services under contracts made with passengers through Uber as their booking agent and, thus, these drivers do not have these worker's rights

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198427/drivers-whose-work-is-arranged-through-uber-smartphone-app-are-workers-entitled-to-workers’-rights.aspx

Advance ruling eligible on issue of applying beneficial provisions of India-Singapore DTAA on dividend payment

INCOME TAX : Where applicant had merely sought advance ruling on application of beneficial provisions of India Singapore DTAA in respect of Dividend Distribution Tax (DDT) on dividend paid/payable to non-resident shareholder and there was no design to avoid tax by any illegal or improper means, application for advance ruling was to be admitted under section 245 R(2)

from www.taxmann.com Latest Case Laws https://ift.tt/3pO8VVf

No disallowance u/s 40(a)(ia) if assessee has opted for presumptive tax scheme under section 44AD

INCOME TAX : Assessing Officer could not invoke provisions of section 40(a)(ia) to disallow interest payment if a person had opted for presumptive taxation scheme under section 44AD and its turnover was Rs. 92 lakhs

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

Sec. 54 exemption couldn’t be denied if assessee claimed exemption under wrong section

INCOME TAX : Where assessee claimed in return deduction under section 54F but on date of transfer of original asset more than one residential house was owned by him and claim of deduction actually meant for deduction under section 54, deduction would be allowable under section 54

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196586/sec-54-exemption-couldn’t-be-denied-if-assessee-claimed-exemption-under-wrong-section.aspx

Contribution made to National HVDC project on direction of Govt. to be allowed as deduction

INCOME TAX : Where assessee-company was deriving its income from generation and distribution of electricity and it claimed certain expenditure paid towards contribution to National HVDC Project as deduction under section 37(1), same was to be allowed as it was incurred in ordinary course of business of assessee and as a part of obligation to its consumers to develop electricity and further, said contribution was made on specific directions of Government of India

from www.taxmann.com Latest Case Laws https://ift.tt/3bAj2HX

‘Valuation’ and ‘FMV’ of shares for computation of capital gain are admissible issues before AAR

INCOME TAX : Application for advance ruling on whether applicant is liable to pay any capital gains tax on transfer of shares and on receipt of dividend in kind could not be declined on ground that it involved valuation and it had been designed prima-facie for avoidance of tax, as issue of valuation and fair market value of shares are relevant for computation of capital gains and revenue had not been able to make out as to how said transaction was designed for avoidance of tax

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198106/‘valuation’-and-‘fmv’-of-shares-for-computation-of-capital-gain-are-admissible-issues-before-aar.aspx

Ignorance of material on record on part of ITAT is a mistake apparent on record; rectification was justified

INCOME TAX : ITAT was justified in reviewing its order and deleting addition under section 68 on account of sellers from whom assessee purchased scraps after considering materials such as TIN number, PAN number, Invoices, etc., of these sellers which lost sight of ITAT earlier

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

Refund of excise duty paid on acquisition of capital asset couldn’t be treated as business income; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that where assessee in respect of materials purchased paid excise duty to vendors in relevant assessment year and its project was not in operation during said year and it lodged a claim for refund of excise duty with Director General of Foreign Trade as deemed export benefits, since amount of excise duty related to cost of acquisition of capital assets/project

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197584/refund-of-excise-duty-paid-on-acquisition-of-capital-asset-couldn’t-be-treated-as-business-income-slp-dismissed.aspx

No denial of sec. 54 exemption on non-deposit of sum in Capital Account Scheme if construction is completed in time

INCOME TAX : Where Single Judge in Writ Petition filed by assessee held that mere non-compliance of requirement under section 54(2) could not stand in way of assessee in getting benefit under section 54 if he fully complied with requirement under section 54(1) within time limit prescribed therein, since revenue filed instant Writ Appeal against order of Single Judge after implementing order passed by him in said Writ Petition, same was to be dismissed as having become infructuous

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

Issue involved valuation and FMV of shares for computation of capital gain is an admissible issue before AAR

INCOME TAX : Application for advance ruling on whether applicant is liable to pay any capital gains tax on transfer of shares and on receipt of dividend in kind could not be declined on ground that it involved valuation and it had been designed prima-facie for avoidance of tax, as issue of valuation and fair market value of shares are relevant for computation of capital gains and revenue had not been able to make out as to how said transaction was designed for avoidance of tax

from www.taxmann.com Latest Case Laws https://ift.tt/37EXo46

Sec. 40(a)(i) disallowances attract only in respect of expenses which are claimed u/s 30 to 38

INCOME TAX : Section 40(a)(i) acts as a restriction on deductibility of expenses under sections 30 to 38; when related expenditure is not claimed as deduction under sections 30 to 38, section 40(a)(i) disallowance cannot be pressed into service at all

from www.taxmann.com Latest Case Laws https://ift.tt/3bAu14a

Sec. 40(a)(i) disallowances attract only in respect of expenses which are claimed u/ss. 30 to 38

INCOME TAX : Section 40(a)(i) acts as a restriction on deductibility of expenses under sections 30 to 38; when related expenditure is not claimed as deduction under sections 30 to 38, section 40(a)(i) disallowance cannot be pressed into service at all

from www.taxmann.com Latest Case Laws https://ift.tt/2OV8YSg

Benami transaction doesn’t include property held in name of spouse or children out of legitimate sources of income

INCOME-TAX/BENAMI ACT : Where there was no conclusion arrived at by Income-tax Authorities in show cause notice that properties in question, allegedly held by petitioner as benamidar, were procured by beneficial owner not from known his source of income, show cause notice was to be stayed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197145/benami-transaction-doesn’t-include-property-held-in-name-of-spouse-or-children-out-of-legitimate-sources-of-income.aspx

ITAT slams AO for treating partnership firm as AOP when it was registered as a firm

INCOME TAX : Where Assessing Officer treated assessee as Association of Persons (AOP) instead of partnership firm on ground that assessee had executed partnership deed on lessor denomination stamp paper, since assessee was already registered as partnership firm and PAN was also allotted to it as partnership firm and even in assessment order, status of assessee was mentioned as that of partnership firm, order of Commissioner (Appeals) upholding order of Assessing Officer was to be set aside

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

Sec. 80-IB deduction to be denied units wise which failed to fulfil required conditions

INCOME TAX : Where assessee developer exceeded area of 1500 square feet of eight residential units in two housing projects which was in breach of conditions contained in sub-clause (c) of section 80-IB(10), denial of deduction under section 80-IB(10) would be limited only in respect of said eight flats and assessee would be entitled to benefit of deduction under section 80-IB(10) proportionately in respect of other residential units having built up area of less than or equal to 1,500 square feet

from www.taxmann.com Latest Case Laws https://ift.tt/3dHp0JR

Director/Partner not liable for offences u/s 138 unless involved in day-to-day affairs of company /partnership firm

FEMA amp; BANKING INSURANCE : A person who merely appears to be a director of a company or partner of a partnership firm, cannot be fastened with criminal liability for an offence under section 138 of NI Act unless it is shown that he was involved in day-to-day affairs of company/partnership firm and was responsible to company/partnership firm

from www.taxmann.com Latest Case Laws https://ift.tt/2ZG9SUZ

Receipts from sales out of stocks that were accepted during scrutiny can’t be treated as unexplained income

INCOME TAX : Where opening stock was accepted in scrutiny assessment, revenue could not treat sales made by assessee out of such opening stock as income from unexplained sources

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197072/receipts-from-sales-out-of-stocks-that-were-accepted-during-scrutiny-can’t-be-treated-as-unexplained-income.aspx

No sec. 69 additions where bank statement was produced to substantiate refund of advance; SLP dismissed

INCOME TAX : SLP dismissed on ground of delay against High Court's ruling that where a sum received by assessee-company to undertake a joint venture for development of IT Park was returned as deal could not be materialised, since assessee furnished complete statement of bank account reflecting debits and credits on account of money received and returned by it, reopening notice treating said amount received by assessee as an unexplained investment was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/37zq12K

High Court couldn’t formulate question of law which was already refused by it

INCOME TAX : High Court is not empowered under section 260A(4) to reconsider its earlier view and reformulate substantial question of law that it had already refused

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197057/high-court-couldn’t-formulate-question-of-law-which-was-already-refused-by-it.aspx

Appointment of Debenture Trustee without registration violates SEBI Act: Kerala HC

COMPANY LAW/SEBI : No Debenture Trustee can deal in securities except under, and in accordance with, conditions of registration obtained from SEBI, in accordance with SEBI (Debenture Trustees) Regulations, 1993

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

Prosecution couldn’t be launched if refund is claimed after adjusting taxes already paid

INCOME TAX : Where assessee defaulted in filing return within time but subsequently filed return and claimed refund after adjusting advance tax, TDS, TCS and self-assessment tax, complaint under sections 276C(1)(i) and 276CC by Commissioner could not sustain

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197153/prosecution-couldn’t-be-launched-if-refund-is-claimed-after-adjusting-taxes-already-paid.aspx

No sec. 40A(2) disallowances on payment made to sister-in-law as she isn’t relative as per sec. 2(41) : ITAT

INCOME TAX : When Revenue authorities had not conducted any enquiry to ascertain fair market rent of particular godowns/shop so as to hold payment of rent for godowns/shop excessive, no disallowance under section 40A(2) was warranted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197136/no-sec-40a2-disallowances-on-payment-made-to-sister-in-law-as-she-isn’t-relative-as-per-sec-241-itat.aspx

It couldn’t be held that issue was designed for tax avoidance if applicant has enquired about obligation for TDS

INCOME TAX : Where applicant-company, engaged in manufacturing of automobile and motorcycle, seconds its employees from time-to-time on long term assignment to other BMW Group entities in various countries such as Germany, Japan, etc. under terms of Reimbursement Agreement and for administrative convenience and ease of disbursement of salary of such seconded employees, applicant effects appropriate part payments to such employees in India on behalf of other BMW Group

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198108/it-couldn’t-be-held-that-issue-was-designed-for-tax-avoidance-if-applicant-has-enquired-about-obligation-for-tds.aspx

Application for advance ruling to be admitted if it was filed before issuance of notice u/s 143(2)

INCOME TAX : Where applicant had merely sought advance ruling on application of beneficial provisions of DTAA for determination of Dividend Distribution Tax (DDT) rate on dividend to non-resident shareholder, there was no design to avoid tax by any illegal or improper means, hence, clause (iii) of proviso to section 245R(2) was not attracted, further fact that application for advance ruling was filed prior to issue of notice under section 143(2)

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

Interest u/s 220 for being an assessee-in-default is to be levied for the period of stay as well

INCOME TAX : Interest under section 220(2) was chargeable upon assessee even during period of stay of demand granted by Assessing Officer as interest is mandatorily leviable under section 220(2)

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

HC upholds conviction of accused u/s 138 of NI Act for non-payment of dues towards fabrics purchase

FEMA, INSURANCE amp; BANKING : Where there had been default in making payment, on part of petitioner since July 2011 and despite decree passed by Court and conviction by Trial Court, till date respondent had not received payment due, petitioner deserved no leniency or sympathy and order of conviction of petitioner with a direction to pay fine was to be upheld

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

Sec. 54 exemption available even if capital gains arising from sale of multiple properties invested on 1 residential house

INCOME TAX : Where capital gains arising from sale of two flats were invested in one residential house, such capital gains would be exempted under section 54

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

Composition fee paid for regularising deviation in a building structure is allowable as revenue exp.

INCOME TAX : Where assesse-company purchased fixed asset by taking foreign currency loan, foreign exchange loss on acquisition of fixed assets was to be adjusted against foreign exchange gain against capital work in progress and net amount of gain was to be offered to tax

from www.taxmann.com Latest Case Laws https://ift.tt/3dsO33s

No Sec. 263 revision just because AO didn’t mention reasons for allowing assessee’s claim

INCOME TAX : Where during original assessment, assessee had clearly explained loss on account of sale of shares claimed by it and Assessing Officer allowed said loss only after considering explanation of assessee, mere non-mentioning of reasons for allowing said claim of assessee by Assessing Officer would not make assessment order erroneous so as to invoke revision jurisdiction under section 263

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196862/no-sec-263-revision-just-because-ao-didn’t-mention-reasons-for-allowing-assessee’s-claim.aspx

Cairn Energy seeks to claim USD 1.2 billion arbitration award from India

Cairn Energy has filed a case in a US Court to enforce a USD 1.2 billion arbitration award it won in an Indian tax dispute case. Cairn has asked the US court to recognise and confirm the award, including payments due since 2014 and interest compounded semi-annually

from taxmann.com News https://ift.tt/37HMY47

Defaulting directors can also avail benefit of ‘CFSS -2020’ in addition to defaulting Cos.: HC

COMPANY LAW : Where petitioners were directors of two companies and name of one company 'G' was struck off for non-filing of financial statements and annual returns for three consecutive financial years, it was held that petitioner were Directors who had been disqualified prior to 7-5-2018, qua other companies in addition to defaulting company who were seeking appointment as directors in new companies and, therefore,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198358/defaulting-directors-can-also-avail-benefit-of-‘cfss-2020’-in-addition-to-defaulting-cos-hc.aspx

Voluntary retirement compensation paid to employees took over by joint venture is deductible u/s 37

INCOME TAX : Where assessee taken over employees of a company under joint venture and incurred expenditure on account of voluntary retirement compensation paid to these employees, since said payment of compensation by assessee was to induce these employees to retire prematurely so as to curtail its expenditure in future and, thus, such expenditure was incurred solely and exclusively for purpose of business, same was to be allowed as deduction under section 37(1)

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

Voluntary retirement compensation paid to employees took over from joint venture is deductible u/s 37

INCOME TAX : Where assessee taken over employees of a company under joint venture and incurred expenditure on account of voluntary retirement compensation paid to these employees, since said payment of compensation by assessee was to induce these employees to retire prematurely so as to curtail its expenditure in future and, thus, such expenditure was incurred solely and exclusively for purpose of business, same was to be allowed as deduction under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/2OQC05B

Status of an assessee couldn’t be determined merely on basis of submission of CA during proceedings

INCOME TAX : Where assessee co-operative society collected deposits only from its members and had no transaction with non-members, assessee could not be considered as a co-operative bank merely because during penalty proceedings under section section 271D former CA of assessee mistakenly submitted that assessee was a co-operative bank, thus, assessee was entitled for deduction under section 80P(2)(a)(i)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197249/status-of-an-assessee-couldn’t-be-determined-merely-on-basis-of-submission-of-ca-during-proceedings.aspx

Assessment order passed based on notice issued by AO not having jurisdiction was null amp; void

INCOME TAX : Where case of assessee was transferred by ITO, Shillong to Assessing Officer, Guwahati as assessee's principal place of business was at Guwahati and, thus, jurisdiction to assess was with him, impugned order under section 143(3) passed by Assessing Officer, Guwahati without issuing notice under section 143(2) and only in pursuance with notice issued by ITO, Shillong who did not enjoy jurisdiction over assessee was null and void

from www.taxmann.com Latest Case Laws https://ift.tt/2Nk9NDE

Assessee was entitled to sec. 80-IA exemption as substantial work of Solid waste management was carried out by it

INCOME TAX : Where assessee entered into an agreement with municipal corporation for providing work of waste treatment/processing/development/maintenance, since said agreement entered into between assessee and various authorities clearly indicated that substantial work of 'solid waste management' was carried out by assessee and not municipal authorities, assessee was to be allowed deduction under section 80-IA

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

Sale of Transferable Development rights are outside purview of section 50C

INCOME TAX : Where assessee sold Transferable Development Right (TDR) held by it in a land and not land itself, provisions of section 50C would not be applicable upon impugned transaction

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

Issues raised before AAR shouldn’t be pending before income-tax authority in any of the assessment year involved

INCOME TAX : Where applicant, engaged in business of manufacturing of graphite electrode, graphite equipment and generation of power, setup new furnace undertaking and has filed present application to know whether applicant is eligible for deduction under section 80-IA in respect of its furnace undertaking on profits and gains derived from generation of power,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198250/issues-raised-before-aar-shouldn’t-be-pending-before-income-tax-authority-in-any-of-the-assessment-year-involved.aspx

Waiver of pre-deposit for filing appeal before DRAT is not sustainable in law, rules SC

FEMA, INSURANCE amp; BANKING : Where High Court had permitted respondent guarantors to prosecute appeal before Debts Recovery Appellate Tribunal without pre-deposit of a portion of debt determined to be due, as provided under section 21 of Recovery of Debts and Bankruptcy Act, 1993, it was held that when further amount was due and payable in discharge of decree/recovery certificate issued by DRT in favour of appellant/Bank, High Court did not have power to waive pre-deposit in its entirety,

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

Commission paid to agent for acquiring the property shall form part of cost of acquisition

INCOME TAX : Where Assessing Officer disallowed payment of commission while computing cost of acquisition of property, however, party who had received commission payment confirmed that they had received commission and payment had been made by cheque, Assessing Officer could not have doubted genuineness of these payments and payments being inextricably linked to acquisition of impugned property,

from www.taxmann.com Latest Case Laws https://ift.tt/37mtYI4

No ST on value of fuel supplied by ONGC free of cost for carrying out drilling operation

ST/EXCISE/CUSTOM : Where appellant was engaged in providing mining services to (ONGC) for performing drilling operations on Oil Wells in East and West Costs of India and ONGC was required to supply fuel (diesel) for running of drilling equipments and it was not required to make payment of fuel to appellant and that same was in fact, supplied free of cost to accomplish assigned task,

from www.taxmann.com Latest Case Laws https://ift.tt/3s1Xlr3

Period of limitation for claiming refund of ST excess paid amp; claimed in TRAN-1 to be counted from date of its reversal

EXCISE/ST/VAT : Assessee had paid excess service tax during quarter April to June, 2017 on 5-7-2017 - Assessee under bona fide belief transferred said excess paid service tax into its TRANS-1 - Subsequently, assessee had reversed said amount on 27-2-2019 - Thereafter, it filed a refund application on 5-4-2019 for excess payment made by it

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

Advocates enrolled with Bar Council must be allowed to register as professionals in MCA portal for Co. registration: HC

COMPANY LAW : Where MCA portal permitted Chartered Accountants, Company Secretaries and Cost amp; Work Accountants to register as practising professionals and undertake incorporation of companies and LLPs for their clients and pursuant to an amendment in Companies Act, 2013 in 2014 even Advocates were permitted to file documents for incorporation of companies

from www.taxmann.com Latest Case Laws https://ift.tt/3u5ATz8

Form 3CL not required to be filed before 01-07-2016 for claiming deduction u/s 35(2AB); ITAT quashes revision

INCOME TAX : Prior to 1-7-2016, Form 3CL granting approval by prescribed authority in relation to quantification of weighted deduction under section 35 (2AB) had no legal sanctity and it was only with effect from 1-7-2016 with amendment to rule 6(7A)(b) that quantification of weighted deduction under section 35(2AB) has significance

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

Entries in books of account isn’t a decisive factor to determine deduction u/s 44C

INCOME TAX : Disallowance made under section 14A read with rule 8D is to be carried out on basis of netting of interest expenditure

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196885/entries-in-books-of-account-isn’t-a-decisive-factor-to-determine-deduction-us-44c.aspx

HC releases petitioner accused of money laundering on bail as no link was found between accused and alleged Cos.

FEMA, BANKING amp; INSURANCE : Where petitioner had been described as an agent of 'A' who had been involved in illegal money-laundering by bank transfer and Hawala through companies situated in United Arab Emirates, Bangladesh and India, however, investigation did not suggest any link between accused petitioner and above named companies, hence, further detention of petitioner was not required, petitioner was to be released on bail

from www.taxmann.com Latest Case Laws https://ift.tt/3qs7dd4

Foreign income of an employee being a NOR can’t be taxed in India even if employer deducted TDS thereon

INCOME TAX : Where assessee-employee of Google India returned income under perks and amenities and because of NOR status, claimed deduction on account of income on sale of stock option being income arising out of India, but Assessing Officer while processing return under section 143(1) included income from sale of stock options as income of assessee as then employer included it in taxable income and deducted TDS from same, since assessee submitted particulars of his stay at USA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198340/foreign-income-of-an-employee-being-a-nor-can’t-be-taxed-in-india-even-if-employer-deducted-tds-thereon.aspx

Prior to 1-3-2006, interest on loan is not taxable in absence of mechanism for bifurcation of service: Bombay HC

EXCISE/ST/VAT : In case of assessee providing services of hire-purchase and financial leasing of commercial vehicles, for period prior to 1-3-2006, service tax is not recoverable on entire interest component collected as equated monthly instalments on transactions relating to 'financial leasing services including equipment leasing and hire-purchase',

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

Noting in a diary couldn’t be ground for sec. 69A additions unless same is supported by corroborative evidence

INCOME TAX : Without corroborative evidence to prove authenticity of diary seized during search, Assessing Officer could not make additions in assessee's income on basis of notings in diary of third party by making presumptions as per section 292C

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196496/noting-in-a-diary-couldn’t-be-ground-for-sec-69a-additions-unless-same-is-supported-by-corroborative-evidence.aspx

HC stayed criminal proceedings as appeal preferred by assessee before tribunal was pending for adjudication

INCOME TAX : Where an application filed by assessee before Tribunal for restoration of its appeal which was dismissed by Tribunal for want of prosecution was allowed and appeal became pending, tax demand raised by department was not crystallized and impugned criminal proceedings under section 276C(2) initiated against assessee was to be stayed

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

Issue of possession certificate is irrelevant; Indexation benefit is allowable from allotment of property

INCOME TAX: For computing indexed cost of property, date to be reckoned is date of allotment of property and not date on which possession certificate was issued

from www.taxmann.com Latest Case Laws https://ift.tt/3u2LRFt

Sum received by federation of co-op. societies from members for utilisation as per Govt.’s direction not taxable

INCOME TAX : Where assessee federation of co-operative societies received contribution from it members for education of members and it was to be utilised as per decision of Advisory Board as per directions of State Government, same could not be assessed as assessee's income merely because same was wrongfully reflected in assessee's income and expenditure account

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196852/sum-received-by-federation-of-co-op-societies-from-members-for-utilisation-as-per-govt-’s-direction-not-taxable.aspx

Expenditure incurred for ensuring uninterrupted power supply is an allowable business expense

INCOME-TAX : Where assessee-company entered into an agreement with a company named Ford, who agreed to establish additional infrastructure facility at their end to ensure uninterrupted power supply to assessee and assessee paid a certain sum to Ford, though assessee had parted with substantial funds to Ford, capital asset continued to remain property of Ford, and said expenditure was a business expenditure

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

Apex Court upholds validity of e-voting process for winding up of Franklin Templeton's Six Mutual Fu

Apex Court upheld the validity of e-voting process for winding up of Franklin Templeton's Six Mutual Fund Schemes. The Court observed that for the purpose of clause (c) to Regulation 18(15), consent of the unitholders would mean consent by majority of the unitholders who have participated in the poll, and not consent of majority of all the unitholders of the scheme.

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

Date of removal of defects is irrelevant while considering limitation period to issue scrutiny notice

INCOME TAX : SLP dismissed against High Court ruling that date of filing of original return under section 139(1) has to be considered for purpose of computing period of limitation under sub-section (2) of section 143 and not date on which defects actually came to be removed under section 139(9)

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

Scrutiny notice is to be issued within 6 months from date of filing of ITR amp; not from date of removal of defects

INCOME TAX : SLP dismissed against High Court ruling that date of filing of original return under section 139(1) has to be considered for purpose of computing period of limitation under sub-section (2) of section 143 and not date on which defects actually came to be removed under section 139(9)

from www.taxmann.com Latest Case Laws https://ift.tt/3rLfB82

CBDT’s circular enhancing monetary limits not applicable for pending appeal for which hearing was concluded

INCOME TAX : Where before Tribunal hearing was concluded on 23-7-2019 and order was passed on 18-10-2019, there was no merit in contentions in rectification application that appeal was pending till date of pronouncement of order and, thus, Circular No. 17 of 2019 dated 18-8-2019 would apply

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196708/cbdt’s-circular-enhancing-monetary-limits-not-applicable-for-pending-appeal-for-which-hearing-was-concluded.aspx

Reassessment proceedings couldn’t be initiated in absence of failure on part of assessee to disclose facts

INCOME TAX : Reassessment proceedings initiated by Assessing Officer on ground that External Development Charges (EDC) paid by assessee to Haryana Urban Development Authority (HUDA) were subject to TDS under section 194 and in absence of TDS, amount would be subject to disallowance under section 40(a)(ia) without giving any basis for forming said opinion, deserved to be set aside; SLP dismissed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197494/reassessment-proceedings-couldn’t-be-initiated-in-absence-of-failure-on-part-of-assessee-to-disclose-facts.aspx

Replacing machinery part is revenue exp. if there was no increase in production capacity after such replacement

INCOME TAX : Where assessee-company, engaged in business of manufacturing of Pressure and Gravity Die Casting, H.T. Coils, claimed deduction under section 37(1) on account of expenditure incurred on replacement of Gripper which is part of robotic arms forming part of high pressure die casting machines but Assessing Officer had disallowed same treating said expenditure as capital in nature

from www.taxmann.com Latest Case Laws https://ift.tt/3qcH9m7

Interest on self-assessment tax to be paid from the date of payment of tax till actual payment of refund

INCOME TAX : While granting refund in pursuance to Tribunal’s order, amount of refund granted earlier should be first adjusted against correct amount of interest and consequently, short fall of refund is to be regarded as shortfall of tax and that shortfall should then be considered for purpose of computing further interest payable to assessee under section 244A till date of grant of such refund

from www.taxmann.com Latest Case Laws https://ift.tt/372jDRA

Search couldn’t be assumed against assessee in absence of incriminating material found during third’s person search

INCOME TAX : Where notice under section 153C was initiated against assessee-medical charitable trust running hospital on basis of certain documents seized during search upon a supplier of medical and surgical equipment to hospital on ground that assessee siphoned off funds through said supplier resorting to huge inflation of expenses

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197203/search-couldn’t-be-assumed-against-assessee-in-absence-of-incriminating-material-found-during-third’s-person-search.aspx

TDS paid on behalf of other which was written off in books of account as irrevocable to be allowed as deduction

INCOME TAX : Where assessee company claimed bad debts on account of TDS payment made by it on behalf of its sales promoters, since assessee had direct business transactions, with such sales promoters, loss was incurred in course of business and debt was written off as irrevocable in accounts of assessee, Tribunal was justified in allowing said claim towards bad debt

from www.taxmann.com Latest Case Laws https://ift.tt/3jFa93F

Limitation period for sec. 254 commences from date when affected party got knowledge of decision of Court

INCOME TAX : Period of limitation prescribed in section 254(2) would commence from date when affected party got knowledge of decision in question and it would not commence from date when order was passed

from www.taxmann.com Latest Case Laws https://ift.tt/3p0Um04

ITAT directed bank to furnish details to prove that its customers paid tax on interest on which tax wasn’t deducted

INCOME TAX : Where assessee-bank had not deducted TDS on interest paid to customers but Assessing Officer was satisfied that customers had shown interest income in their respective return of income and had remitted tax on it, then assessee should not be treated as an assessee-in-default

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196564/itat-directed-bank-to-furnish-details-to-prove-that-its-customers-paid-tax-on-interest-on-which-tax-wasn’t-deducted.aspx

No sec. 194H TDS by Pharma co. providing travel, accommodation and other facilities to persons associated with it

INCOME TAX : Where assessee pharmaceuticals company incurred expenses for providing travel, accommodation and equipment services and distribution of various articles/gifts/other facilities to persons associated with it such as stockist, field staff, distributors and doctors, since there existed no agency relationship between assessee and these persons, said expenses incurred for them could not be treated as commission liable for deducting tax at source under section 194H

from www.taxmann.com Latest Case Laws https://ift.tt/3cYI7i4

Conversion of Domino India into Domino LLP give rise to capital gain in hands of shareholder

INCOME TAX : On conversion of a company into LLP, equity shares held by shareholder in company converts into partnership interest in LLP; same is transfer within meaning of section 2(47) and computation provision under section 48 would be workable and capable of being implemented for working out capital gains arising in hands of shareholder; even if value of partner's interest in LLP is equal to value of shareholder's interest in company

from www.taxmann.com Latest Case Laws https://ift.tt/3p2Si7T

Govt.’s order to investigate affairs of Church Trust/Co. by SFIO based on ROC report without hearing Co. was quashed

COMPANY LAW : Where misappropriation, mismanagement, fraud etc. of heinous in nature were alleged and proceeding was initiated against petitioner Church Trust Association when a report was given by ROC, Petitioner had to appear for enquiry and ROC, after considering documentary evidences produced by Petitioner, should submit a Consolidated report to Central Government

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198099/govt-’s-order-to-investigate-affairs-of-church-trustco-by-sfio-based-on-roc-report-without-hearing-co-was-quashed.aspx

No sec. 195 TDS on demurrage charges paid to non-resident shipping company

INCOME TAX : Provision of section 195 would not be applicable to reimbursement of demurrage charges paid by assessee to a non-resident shipping company and that same would be covered by section 172

from www.taxmann.com Latest Case Laws https://ift.tt/3a1PuDw

Higher profit declared by real estate developer claiming relief u/s 80-IB justifiable as it sold only opening stocks

INCOME TAX : Where during current year, Real Estate Developer had sold opening stocks only and had not incurred any cost, thus, declared higher profit, without proving opening stock or sales invoices wrong, Revenue could not estimate lower average profit so as to reduce claim of deduction under section 80-IB

from www.taxmann.com Latest Case Laws https://ift.tt/3jwaS70

Delhi High Court directs immediate refund with interest as revenue delayed to pass appeal effect order by 8 months

INCOME TAX : Where revenue delayed by eight months to pass appeal effect order, Revenue should pass such order immediately and grant refund with interest

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

Advance Ruling on specific question which wasn’t raised in notices or questionnaire is admissible

INCOME TAX : Where, applicant, a Finland based company had entered into IT service agreement with Indian company and seeks to know as to whether amount received by applicant from Indian company for provision of IT support services rendered from Finland, would be deemed to arise in Finland and, thus, not taxable in India in view of provisions of Article 12(5) of DTAA between India and Finland

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198134/advance-ruling-on-specific-question-which-wasn’t-raised-in-notices-or-questionnaire-is-admissible.aspx

Donation, delivery or transfer by foreign source of any currency or any security, is a ‘foreign contribution’: HC

FEMA, BANKING amp; INSURANCE : Donation, delivery or transfer made by any such foreign source either by way of any currency whether Indian or foreign or article or any security, donation would come under purview of expression 'foreign contribution'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198104/donation-delivery-or-transfer-by-foreign-source-of-any-currency-or-any-security-is-a-‘foreign-contribution’-hc.aspx

Application for advance ruling to be admitted as issue related to DDT wasn’t pending before AO

INCOME TAX : Where question of Dividend Distribution Tax being a tax on dividend or otherwise and lower rate of 10 per cent in respect of DDT payable to non-resident shareholder was not pending before Income Tax Authority on date of filing application, and bar in terms of clause (i) to proviso to section 245R(2) was not found to be attracted, application was to be admitted in terms of section 245R(2)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198124/application-for-advance-ruling-to-be-admitted-as-issue-related-to-ddt-wasn’t-pending-before-ao.aspx

No sec. 68 additions on receipt of share capital from Cos merely relying statement of person who controls such Cos

INCOME TAX : Where assessee company received share capital amount from several companies and furnished necessary details such as copy of PAN and CIN, MOA/AOA, confirmation of parties, bank extracts etc., so as to prove genuineness of its transactions, impugned addition of said amount to assessee's income under section 68 merely on basis of statement of a person who was controlling and managing these companies without providing an opportunity for his cross examination to assessee was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/36S3ZIp

Assigning incomes to an Israel Co. without assigning corresponding obligations is an agreement for tax avoidance: AAR

INCOME TAX : Assignment of mere receipts from an Indian company to Israel based Applicant by its US based affiliate without assigning corresponding obligations was prima-facie for avoidance of tax; application for Advance Ruling was to be rejected

from www.taxmann.com Latest Case Laws https://ift.tt/3aIafn9

Ministry of Home Affairs issues FCRA Charter for Bank for smooth transitioning to new FCRA regime

Ministry of Home Affairs has issued FCRA Charter for Banks wherein, the Ministry has advised banks to go through all the provisions of the amended FCRA 2010 as well as amended FCRR, 2011. Various public notices to facilitate smooth transition to the new FCRA regime have also been posted on the website along with an SOP for opening of the “FCRA account” in the SBI Main Branch, Sansad Marg, New Delhi

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

Single transaction would include within the expression 'occasionally undertakes'; Supplier qualifies as a casual dealer: SC

EXCISE/ST/VAT : Legislature could not, possibly, have intended that a person making 2 or 3 transactions should be treated as a 'Casual Trader', but a person making only one transaction should be treated at par with regular traders. Therefore, even if the person making a single transaction shall be treated as Casual Trader

from www.taxmann.com Latest Case Laws https://ift.tt/3azu5kk

AAR rejected applications as issues raised by assessee was already pending before AO

INCOME TAX : Where applicant had entered into a Project Management Consulting Agreement (GSPC) for providing feed review services, preparation of request for proposal documents, assistance in bidding process, cost estimation services, construction supervision etc. in relation to construction of marine, regas and tank facilities by GSPC and he seeks to know as to whether sums received by applicant under (PMC Agreement) is liable to tax as fee for technical services under Article 13

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

MHA issues charter for CAs; advises them to guide NGOs in complying with FCRA norms

MHA has advised Chartered Accountants to get themselves thoroughly familiarised with FCRA, 2010, the Foreign Contribution (Regulation) Rules, 2011 so that they can help and guide the associations and their office bearers. MHA has further drawn attention of CAs to the provisions of sections 18, 19, 20,21,22,23 and 24 of the FCRA, 2010 and to Rules 4,5,9,11,13 and 17 of the FCRR, 2011. CAs may take note and advice and assist the associations/NGOs accordingly.

from taxmann.com News https://ift.tt/3jq6xT1

Section 115JC being a non obstante clause can be invoked without giving prior notice

INCOME TAX : As section 115JC starts with non-obstante clause, provisions relating to Alternative Minimum Tax can be invoked by Assessing Officer without giving prior notice; therefore, where section 115JC was invoked during remand proceedings without giving prior notice to assessee, it could not be said that Assessing Officer had violated principal of natural justice

from www.taxmann.com Latest Case Laws https://ift.tt/3jorzS7

No bar in filing application before AAR where notice was issued based on CASS selection

INCOME TAX : Where applicant, a foreign company, has entered into a Strategic Alliance Agreement (SAA) with PVR whereby PVR has agreed to purchase 4DX equipment and license 4DX Software and 4DX Code from 4DX, and install, maintain, operate and exhibit the 4DX System etc., in a theatrical exhibition complex owned/controlled by PVR and applicant has filed advance ruling to know whether amount of consideration for offshore supply of 4DX equipment including 4DX motion chairs

from www.taxmann.com Latest Case Laws https://ift.tt/2NYJ8wb

AAR has power to decline to pronounce advance ruling even after 30 days of admitting it

INCOME TAX : Power to decline to pronounce advance ruling is inherent in power to pronounce advance ruling as specified under provisions of section 245(R)(4), hence, in view of request of applicant not to pursue matter further and to withdraw application, application was to be dismissed as withdrawn. Contention of revenue that once application is admitted it cannot be rejected in proceeding under section 245R(4) is found to be misplaced

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

Amendment w.r.t. disqualification of directors and 2018 amendments to Cos Act, 2013 are prospective in operation: HC

COMPANY LAW : Section 164(2)(a) as introduced by 2014 amendment and proviso to section 167(1)(a), as introduced by 2018 amendment to 2013 Act are prospective in operation

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

No bar in filing application before AAR where issue of notice was issued based on CASS selection

INCOME TAX : Where applicant, a foreign company, has entered into a Strategic Alliance Agreement (SAA) with PVR whereby PVR has agreed to purchase 4DX equipment and license 4DX Software and 4DX Code from 4DX, and install, maintain, operate and exhibit the 4DX System etc., in a theatrical exhibition complex owned/controlled by PVR and applicant has filed advance ruling to know whether amount of consideration for offshore supply of 4DX equipment including 4DX motion chairs

from www.taxmann.com Latest Case Laws https://ift.tt/2O4Gm8J

Disallowance and additions must be based on any incriminating material found during search

INCOME TAX : Where assessment proceedings had already been completed prior to date of search under section 132, scope of making assessment under section 153C would be limited only to undisclosed income of assessee detected during search of some other person

from www.taxmann.com Latest Case Laws https://ift.tt/3tn64FE

SC stays order of Madras HC permitting inter-State purchases of diesel, etc against C-forms

EXCISE/ST/VAT : Supreme Court stays order of Madras High Court directing revenue authorities not to restrict use of 'C' Forms for inter-State purchases of six specified commodities like Petroleum Crude, High Speed Diesel, Motor Spirit (Petrol), Aviation Turbine Fuel, Natural Gas and Liquor by assessees and other registered Dealers at concessional rate of tax

from www.taxmann.com Latest Case Laws https://ift.tt/3pX6gJS

AAR has power to decline to pronounce advance ruling after admitting an application

INCOME TAX : Power to decline to pronounce advance ruling is inherent in power to pronounce advance ruling as specified under provisions of section 245(R)(4), hence, in view of request of applicant not to pursue matter further and to withdraw application, application was to be dismissed as withdrawn. Contention of revenue that once application is admitted it cannot be rejected in proceeding under section 245R(4) is found to be misplaced

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

Securities created in coffee plantations can be enforced for realization of debts u/s 31(i) of SARFAESI Act: HC

SARFAESI ACT : Securities created in coffee plantations can be enforced for realization of debts as coffee plantations would not come within scope and ambit of agricultural land under section 31(i) of SARFAESI Act

from www.taxmann.com Latest Case Laws https://ift.tt/36FJ9Mf

One District One Product Scheme

One District One Product Scheme

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Sec. 277 prosecution can be launched only when a wilful misstatement is made with a malafide intention

INCOME TAX : Prosecution initiated by revenue alleging offences under sections 276(c)(2) and 277 of Income-tax Act, against petitioner company and its directors carrying on business of construction of apartments and development and sale of plots was misconceived, hence, not sustainable

from www.taxmann.com Latest Case Laws https://ift.tt/3rhY9rw

Delayed in filing application for grant of Sec. 10(23C) exemption cannot be condoned by CIT(E): Bombay HC

INCOME TAX : Where petitioner-university, with a view to avail exemption under section 10(23C)(vi) for assessment year 2019-20 and onwards, filed related application in Form No. 56D before Commissioner (Exemptions), however, same was rejected by him on ground that application was filed beyond prescribed time-limit and that he had no jurisdiction to condone delay in filing of such delayed application

from www.taxmann.com Latest Case Laws https://ift.tt/3atcM4f

Hire charges paid to cab drivers liable for sec. 194C TDS even if no written contract exists

INCOME TAX : Where assessee hired cabs from cab owners and provided transportation services to its customers and made payments to these cab owners on account of hire charges from amount received by it from its customers, assessee was liable to deduct TDS on said payment under section 194C

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

Budget- 2021 brings in good news for Small Cos, OPCs, Start-up and NRIs

After the budget speech 2021, the Ministry of Corporate Affairs (MCA) has worked pro-actively and has issued series of notifications in order to provide relaxations to the small companies, OPCs, NRIs and Start-up Companies

from taxmann.com News https://ift.tt/3oKW4lX

Final Fact-Finding Appellate Authority Also Going Faceless w.e.f. 1.4.2021

In order to impart greater efficiency, transparency and accountability to the assessment process, appeal process and penalty process under the Act a new faceless assessment scheme, faceless appeal scheme and faceless penalty scheme have already been introduced

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

Govt. issues Charter for associations who have been granted prior permission or registration under F

The Govt. has issued Charter for associations who have been granted prior permission or registration under FCRA and all associations granted registration or prior permission under FCRA, 2010 shall be required to adhere to Good practice guidelines of Financial Action Task Force

from taxmann.com News https://ift.tt/36zQkW7

Know everything about Union Budget of Republic of India

We all must have heard the word “Union Budget” as its importance relates to our day to day lives that’s why we all eagerly wait for the Budget every year.

from taxmann.com News https://ift.tt/2MQxWS0

Affordable Housing gets shot in the Arm

A host of measures have been proposed in the Finance Bill 2021, which is targeted to provide relief to both the affordable house buyers as well as the developers of affordable housing projects.

from taxmann.com News https://ift.tt/3jkUIO5

Equalisation Levy (EL 2.0) – Revamped?

It looked like that the Budget 2021 announced by the Finance Minister has met investors expectation which is evident from the fact that the SENSEX has reached the upper circuit of 5% by the day end.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021206/equalisation-levy-el-2-0-–-revamped.aspx

Budget - 2021 : Trial amp; Tribulations

The year 2020 was marred and disfigured by the widespread effect of COVID19 pandemic world over which literally strangulated the growth of majority of the promising economies including India.

from taxmann.com News https://ift.tt/2MhgA0F

Budget - 2021 : Trial amp; Tribulations

The year 2020 was marred and disfigured by the widespread effect of COVID19 pandemic world over which literally strangulated the growth of majority of the promising economies including India.

from taxmann.com News https://ift.tt/2MhgA0F

Finance Bill’ 2021- Paradigm shift in the provisions relating to Income Tax Search and Seizure Asses

The Hon’ble Union Finance Minister Nirmala Sitharaman has presented the Union Budget 2021 of India on the 1st of February, 2021. Budget 2021 is aimed at reviving an economy that plunged into deepest recorded slump amid the COVID-19 pandemic.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021204/finance-bill’-2021-paradigm-shift-in-the-provisions-relating-to-income-tax-search-and-seizure-assessments-and-income-tax-settlement-commission.aspx

Central Excise Revenue Audit can’t be extended to call for audit of a private entity u/s 16 of CAG’s (DPC) Act: HC

COMPANY LAW/CAG (DPC) ACT : In view of mandate of section 16 of Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 (CAG's (DPC) Act), CERA audit cannot be extended to call for audit of a private entity

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197986/central-excise-revenue-audit-can’t-be-extended-to-call-for-audit-of-a-private-entity-us-16-of-cag’s-dpc-act-hc.aspx

TDS on purchase of goods from a resident-the one small jarring note in an otherwise flawless perform

In an otherwise wonderfully crafted Union Budget of 2021, the proposed section 194Q could be said to the one little jarring note. It is like one small jarring note(apasvara) in an otherwise flawless musical concert.

from taxmann.com News https://ift.tt/2YwJ210

Direct tax proposal focuses on providing certainty to the taxpayers, improving effectiveness of tax

It is proposed to grant cash allowance to the employees equivalent to their LTC component by permitting them to incur expenditure on purchase of goods or services which are liable for 12% or more GST rate. Such specified expenditure shall be reckoned against their LTC entitlement and shall not exceed INR 36000 per person or 1/3 of specified expenditure, whichever is less.

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

Turned 75? There's a gift

Section 139 of the Act provides for filing of return of income. Sub-section (1) of the section provides that every person being an individual, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income.

from taxmann.com News https://ift.tt/3ah4Pis

Union Budget:2021-22:What is in it for small and medium enterprises(SMEs) and startups?

Section 44ADA was inserted in the Income-Tax Act,1961 by the Finance Act,2016. The Explanatory Memorandum to the Finance Bill,2016 clearly mentioned that LLPs will not be eligible to avail the presumptive tax scheme under section 44ADA.

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

Finance Bill 2021: A Combination of Sixers amp; Googlies

It is being said that, "Beauty lies in Details", but so does the 'Beast'. The Finance Bill 2021 as presented by our Hon'ble FM is a Combination of Sixers amp; Googlies.

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Highlights of the Finance Bill, 2021 – Income Tax

The Finance Minister, Smt. Nirmala Sitharaman, has presented the Union Budget 2021 in the Parliament. It was the first-ever digital Union Budget as Govt. had decided not to print the budget documents. This newsletter summarizes all the relevant direct tax announcements made by the Finance Bill 2021.

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Union Budget:2020-21:What is in it for small and medium enterprises(SMEs) and startups?

Section 44ADA was inserted in the Income-Tax Act,1961 by the Finance Act,2016. The Explanatory Memorandum to the Finance Bill,2016 clearly mentioned that LLPs will not be eligible to avail the presumptive tax scheme under section 44ADA.

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Highlights of the Finance Bill, 2021 – Income Tax

The Finance Minister, Smt. Nirmala Sitharaman, has presented the Union Budget 2021 in the Parliament. It was the first-ever digital Union Budget as Govt. had decided not to print the budget documents. This newsletter summarizes all the relevant direct tax announcements made by the Finance Bill 2021.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021196/highlights-of-the-finance-bill-2021-–-income-tax.aspx

Key highlights from the Finance Bill, 2021 under Corporate Laws

The Finance Bill, 2021 has proposed key changes in the various Acts such viz. Indian Stamp Act, 1899; SEBI Act, 1992; SCRA, 1956; SARFAESI; RDDBI Act, etc. This write-up highlights the key changes as proposed by the Finance Bill, 2021.

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Amendments related to charitable trusts and institutions etc. by F.A. 2021

Clause (23C) of section 10 of the Act provides for exemption of income received by any person on behalf of different funds or institutions etc. specified in different sub-clauses.

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Budget 2021: Finance Minister’s Prescription Rehabilitation Exercise Of Tax Administration-Is It Jus

A Confident Hon’ble Finance Minister Ms. Sitharaman today (February 1, 2021) laid the Budget Proposals before the Parliament for the Year 2021-22.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021193/budget-2021-finance-minister’s-prescription-rehabilitation-exercise-of-tax-administration-is-it-just-a-beginning.aspx

Acquired goodwill – no longer a depreciable asset

The most anticipated Budget has been laid out before the nation, aimed at propelling the country towards a brighter future, with massive commitment to spend on infrastructure, education and healthcare - the fundamental building blocks of modern human civilization.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021191/acquired-goodwill-–-no-longer-a-depreciable-asset.aspx

Amendment in section 2(42C) in relation to capital gains chargeable on slump sale as provided u/s 50

Slump sale is a normal commercial practice under which an undertaking is sold as a going concern and all the assets and liabilities are transferred to the purchaser without assigning any value to each asset or liability.

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Discontinuance of income tax settlement commission, with immediate effect- whether requires a delibe

The Direct Taxes Enquiry Committee (commonly known as 'Wanchoo Committee') had recommended the settlement machinery only to ensure that the door for compromise for an errant taxpayer should not remain closed for ever

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Amendments proposed with regard to goodwill in the Finance Bill 2021

Goodwill is an intangible asset. Where a business is taken over by way of amalgamation, the difference between the amount paid for the business and the net worth is treated as goodwill according to the requirements of accounting principles.

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A Few Hidden Time Bombs in that Made in India Tab containing the First Paperless Finance Bill 2021!!

It is being said that, “Beauty lies in Details”, but so does the ‘Devil’. Some of the direct tax proposals amp; amendments as announced by our beloved FM in her Budget Speech have garnered the limelight of all news channels

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Budget 2021 - Tight regulatory reforms in TDS / TCS provisions

Every year the Union Budget evokes great interest among the tax professionals besides macro economists. However, the build-up prior to the Budget evaporates in quick time as soon as the Budget is presented by the Hon’ble Finance Minister.

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Why amendment to definition of slump in section 2(42C) is proposed?

The provisions of section 50B of the Income-tax Act (the Act) dealing with slump sale were inserted the Finance Act 1999 with effect from 1st April, 2000 These provisions were enacted as adequate measures to safeguard the probable leakage of income whenever there was (total) transfer of undertakings for a lumpsum price.

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Copy of the Finance Bill, 2021

The Finance Minister, Smt. Nirmala Sitharaman has presented the Union Budget 2021-22 in the Parliament. Find below the copy of the Finance Bill, 2021.

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Copy of Budget Speech 2021

The Finance Minister, Smt. Nirmala Sitharaman has presented the Union Budget 2021-22 in the Parliament. Find below the copy of the Budget Speech.

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Copy of Memorandum to Finance Bill, 2021

The Finance Minister, Smt. Nirmala Sitharaman has presented the Union Budget 2021-22 in the Parliament. Find below the copy of the memorandum to Finance Bill 2021.

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