RAHUL SHARMA: March 2021

Wednesday, March 31, 2021

Sum paid to NR is subject to TDS as assessee failed to establish that NR rendered services outside India

INCOME TAX : Where assessee failed to prove that payments of sales commission made to foreign firms were in connection with business of assessee, deduction was rightly disallowed

from www.taxmann.com Latest Case Laws https://ift.tt/3dpSY3e

Provisions of Sec. 46A applicable if Indian Co. is buying back its shares from non-resident parent Co.: AAR

INCOME TAX : Where applicant, a German company, was holding shares of its wholly owned subsidiary PQR India as an investment and PQR India is proposing to buy back its shares from applicant, consideration received on buy back of shares is clearly taxable under section 46A

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

No abuse of dominance by developer due to presence of other players in relevant market of real estate in Delhi

COMPETITION LAW : Where there were many other real estate developers like DLF Limited, Delhi Development Authority, in Delhi offering similar services for development and sale of commercial/office space, buyers were not dependent upon OP-PP Buildwell for provisioning of commercial/office space and, therefore, OP did not enjoy dominant position in market for provision of services for development and sale of commercial/office space in Delhi

from www.taxmann.com Latest Case Laws https://ift.tt/3m5vPat

Gmail didn't abuse its dominant position by integrating "Google Meet" tab into Gmail app : CCI

COMPETITION LAW : Where Google had incorporated Google Meet tab in Gmail app but Gmail did not coerce users to use Meet and consumers were also at freewill to use either Meet or any other VC app for video conferencing, no case was made out against Google for abuse of dominant position

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

Deduction for sales commission not allowable as assessee failed to prove that exp. was incurred for business

Tuesday, March 30, 2021

Ordinarily High Court in its jurisdiction under Article 226 would decline to entertain a dispute which is arbitrable: SC

COMPANY LAW : Where there was arbitration clause in Concession Agreements which provided sufficient recourse to remedies which could be availed of and ordinarily High Court in its jurisdiction under Article 226 would decline to entertain a dispute which is arbitrable but Court had been constrained to intervene in process in order to ensure that sanctity of understanding that was arrived at before High Court

from www.taxmann.com Latest Case Laws https://ift.tt/3sAfb5f

SC upheld Madras HC order allowing HSD purchase against C Forms, SLP dismissed

EXCISE/ST/VAT : Supreme Court dismissed SLP against 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,

from www.taxmann.com Latest Case Laws https://ift.tt/3u4Werr

In absence of manipulation by OPs in bidding of tenders complaint on anti-competitive practices was dismissed : CCI

COMPETITION LAW : Where there was nothing on record as per investigation to suggest that opposite parties joined hands to manipulate process of bidding in respect of three tenders issued by Department of printing, no case of contravention of provisions of section 3(3) was made out

from www.taxmann.com Latest Case Laws https://ift.tt/3sCt6aH

Presence of several players in home loan market in India rules out dominance of ICICI

COMPETITION LAW : Where there were several public and private sector banks, NBFC and Housing Finance Companies (HFCs) operating in home loan market in India providing various options to consumers for availing home loans, OP-ICICI could not operate independently in market and, hence, could not be considered to be in a position of dominance in relevant market for provision of home loans in India

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

Contravention of section 3 ruled out when there was no evidence to establish the cartel amongst airline Companies

COMPETITION LAW : Where there was no evidence on record to establish cartel amongst airlines during period April 2012 - March 2014, no case of contravention of provisions of section 3 was made out against airlines

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

No denial of Sec. 10(23C) exemption without concluding that assessee was generating profit from examination fees

INCOME TAX : Where no material was available to conclude that assessee, a State Examination Board, generated profit by charging fees for conducting examination, exemption under section 10(23C) could not be denied on ground that it was not an educational institution

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

Monday, March 29, 2021

President Ram Nath Kovind gives assent to the Finance Act, 2021

The Finance Bill, 2021 has received the assent of the President, Shri Ram Nath Kovind, on 28th March, 2021. The Finance Act, 2021 (No. 13 of 2021) contains 172 Sections impacting more than 20 Acts. This Act shall enforce various provisions with effect from 01-02-2021 (i.e., taxation of ULIPs, discontinuation of settlement commission, etc.), some provision shall come into force from 01-04-2021 (i.e., new income escaping assessment procedure, Section 194P, Section 194Q, etc.)

from taxmann.com News https://ift.tt/31txH3e

Saturday, March 27, 2021

SC refuses stay on sale of Electoral Bonds under Electoral Bond Scheme, 2018

FEMA, BANKING amp; INSURANCE : Where Association for Democratic Reforms filed application seeking a stay of Electoral Bond Scheme, 2018 notified by Central Government vide notification dated 2.1.2018 and also sought an interim direction to respondents not to open any further window for sale of Electoral Bonds under Electoral Bond Scheme, 2018 and to prevent respondents from any further sale of Electoral Bonds as window for sale of fresh bonds was likely to be opened at on 1-4-2021

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

Assessee is precluded from raising contention first time before HC if same never raised before lower authorities

INCOME TAX : Unless finding of Tribunal on facts is perverse, question of considering correctness of order in an appeal under section 260A would not arise

from www.taxmann.com Latest Case Laws https://ift.tt/2QKbX0U

Application for release of attached properties of corporate debtor rejected for non-joinder of parties

IBC : Where application was filed for release of properties of corporate debtor attached under PMLA on ground of introduction of section 32A, but corporate debtor and liquidator were not made party to proceedings, application was to rejected on ground of non-joinder of necessary party

from www.taxmann.com Latest Case Laws https://ift.tt/3rsOT3s

Amendment to MAT provision has no retro-effect as it couldn’t be applied to period which has already elapsed

INCOME TAX : Provision towards bad and doubtful debt could not be assessed to book profit under section 115JB in year prior to insertion of clause (i) of Explanation 1 to section 115JB(2) by Finance Act, 2009 retrospectively with effect from 1-4-2001 as assessee could not have given effect to such provision which was inserted on later point

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198107/amendment-to-mat-provision-has-no-retro-effect-as-it-couldn’t-be-applied-to-period-which-has-already-elapsed.aspx

Friday, March 26, 2021

Civil Courts’ jurisdiction to try civil matters other than those tried by DRT u/s 13 isn’t barred u/s 34 of SARFAESI

FEMA, BANKING amp; INSURANCE : The Jurisdiction of the Civil Court to decide all the matters of civil nature, excluding those to be tried by the DRT under Sections 13 and 17 of the SARFAESI Act, in relation to enforcement of security interest of a secured creditor, is not barred by Section 34 of the SARFAESI Act

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314263/civil-courts’-jurisdiction-to-try-civil-matters-other-than-those-tried-by-drt-us-13-isn’t-barred-us-34-of-sarfaesi.aspx

NR liable to tax at 10% u/s 112 on sale of shares of Indian subsidiary which were not listed on stock exchange

INCOME TAX : Where applicant, an Australian Company, has sold entire shareholding in its wholly owned Indian subsidiary not listed on any stock exchange in India, to an entity of APXL group which is engaged in business of retailing consumer electronics and domestic appliances goods in India, capital gains on transfer of equity shares will be taxable in hands of applicant at rate of 10 per cent in accordance with section 112(1)(c)(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/3d18X7C

TATA- Mistry Feud: SC sets aside order of NCLAT which reinstated Cyrus Mistry as Chairperson of TATA

The Supreme Court has set aside the order of National Company Law Appellate Tribunal (NCLAT) which had reinstated Cyrus Mistry as the Chairperson of Tata Sons Limited. The questions formulated by the Supreme Court all of which were answered in favour of Tata Sons as under:

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Education cess is deductible as revenue exp.; no disallowance u/s 40(a)(ii): ITAT

INCOME TAX : Education cess incurred by assessee is to be allowed as revenue expenditure under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3w1h9xy

Concession on rent towards accommodation facilities provided by employer is taxable as perquisites

INCOME TAX : Where assessee educational institution had provided concession on rent towards accommodation facilities provided by it to its employees, such concessional amount would be considered as perquisites as per section 17(2)(ii)

from www.taxmann.com Latest Case Laws https://ift.tt/3rnKL4J

Thursday, March 25, 2021

Key takeaways from amended Schedule III of Companies Act, 2013

The Ministry of Corporate Affairs vide Notification dated 24 March 2020 has amended Schedule III to the Companies Act, 2013, which shall be effective from the 1st day of April 2020. The notification incorporates various additional disclosure requirements while preparing the financial statements of an entity which are covered under the three divisions of Schedule III to the Companies Act, 2013.

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Additional Director General of DRI can't initiate recovery proceedings under Customs: Madras HC

EXCISE/ST/VAT : Additional Director General of DRI can not be termed as "the proper officer" to exercise power under section 28 of Customs Act to recover duty not paid or short paid

from www.taxmann.com Latest Case Laws https://ift.tt/3lOMkr4

Voluntary surrender of registration by Tata Trust is effective from conclusion of hearing on first SCN

INCOME TAX : Assessee trust's voluntary surrender of registration under section 12A to be effective from date on which hearing on first show-cause notice was concluded as registration having been obtained under section 12A was in nature of a benefit to assessee, and if it did not wish to avail that benefit for some reason, benefit could not be forced upon him

from www.taxmann.com Latest Case Laws https://ift.tt/3rk1eqv

Sharing of user’s personalized data by WhatsApp with Facebook is abuse of dominance: CCI

COMPETITION LAW : Conduct of WhatsApp in sharing users' personalised data with other Facebook Companies, in a manner that was neither fully transparent nor based on voluntary and specific user consent was prima facie violative of section 4 and investigation was to be ordered in that matter

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314233/sharing-of-user’s-personalized-data-by-whatsapp-with-facebook-is-abuse-of-dominance-cci.aspx

Declaration under SVLDRS, 2019 can't be rejected if amount declared is not exactly same as quantified in SCN subsequently

EXCISE/ST/VAT : Declaration under SVLDRS, 2019 can't be rejected if amount declared is not exactly same as quantified in SCN subsequently

from www.taxmann.com Latest Case Laws https://ift.tt/3lR9TPW

Re-opening of assessment is not permissible for mere verification or for a fishing inquiry: High Court

INCOME TAX : For mere verification or for a fishing inquiry re-opening of assessment is not permissible, however, where there was tangible material as on date in hands of Assessing Officer that assessee had received shareholders funds from shell companies, and Assessing Officer, after due application of mind, had recorded a satisfaction of his own that income had escaped assessment, reopening of assessment was justified

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

Income from letting out of terrace for placing antenna tower is taxable under head house property

INCOME TAX : Income earned by assessee on account of renting out of terrace for installation of antenna tower was taxable as 'income from house property'

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

Income derived from letting out of built-up space of Industrial park is eligible for Sec. 80-IA deduction

INCOME TAX : Lease rent income received by assessee from letting out of built-up space of industrial park was assessable under head 'income from business'

from www.taxmann.com Latest Case Laws https://ift.tt/3lOU5NO

Wednesday, March 24, 2021

Constructing parking lot on BOT basis, being an integral part of highway is eligible for Sec. 80-IA relief

INCOME TAX : Any infrastructure which is part of high way falls within definition of infrastructure, hence, where assessee was awarded a project by CIDCO to construct a parking lot called truck terminal having facilities on BOT basis and on examination of terms and conditions of award of contract it was found that it was an integral part of highway, assessee would be eligible for deduction under section 80-IA

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

Copy of the Finance Bill, 2021 as passed by the Lok Sabha

The Lok Sabha has passed the Finance Bill, 2021 with more than 100 changes. Find below the copy of the Finance Bill, 2021 as passed by the Lok Sabha.

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RBI issues master direction on Amalgamation of Urban Cooperative Banks

The RBI has issued master direction on Amalgamation of Urban Cooperative Banks wherein provisions related to applicability, scope, statutory provisions, approvals, amalgamation of UCBs, procedure, and sanctions and so on have been discussed in details.

from taxmann.com News https://ift.tt/39bfgEz

SC dismissed SLP against ruling that no sec. 194H TDS on sale of SIM or recharge coupons at discounted rate

INCOME TAX : SLP granted against High Court ruling that sale of SIM cards/recharge coupons at discounted rate to distributors is not commission and therefore not liable to TDS under section 194H

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

CIT(A) couldn’t reject appeal not ‘e-filed’ in limit if it was first year to implement e-filing

INCOME TAX : Commissioner (Appeals) could not reject an appeal filed by assessee on a technical ground that same was not 'e-filed' within period of limitation prescribed under circular no. 20/2016

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197682/cita-couldn’t-reject-appeal-not-‘e-filed’-in-limit-if-it-was-first-year-to-implement-e-filing.aspx

Provision of application of other laws such as IPC is not prohibited in view of section 32 of SEBI Act : HC

COMPANY LAW/SEBI : Provision of application of other laws such as IPC is not prohibited in view of section 32 of SEBI Act, section 26 only prohibits cognizance of offence which is punishable under SEBI Act, but does not prevent cognizance in respect of offence punishable under other Acts such as IPC

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

Tuesday, March 23, 2021

Analysis of changes made in the Finance Bill, 2021 as passed by the Lok Sabha

The Lok Sabha has passed the Finance Bill, 2021 on March 23, 2021. The Bill presented originally in the Lok Sabha on February 01, 2021 has not been passed in its original shape. More than 100 changes have been made in the Finance Bill, 2021 as passed by the Lok Sabha. A snippet of all changes made in the Finance Bill, 2021 as passed by the Lok Sabha viz-a-viz the Finance Bill, 2021 are presented in this article.

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

SC rejects plea to extend moratorium, rules out charging of compound interest on EMIs during moratorium period

FEMA BANKING amp; INSURANCE : The Supreme Court has directed that there should be no charging of compound interest, interest on interest, or penal interest on the instalments which were due during the loan moratorium period from March 1 to August 31 last year on any borrower, irrespective of the loan amount. If such interest has already been collected, it should either refunded to the borrower or adjusted towards the next instalments

from www.taxmann.com Latest Case Laws https://ift.tt/3lPpm3i

Copy of ‘Notice of Amendments’ to the Finance Bill, 2021 as introduced in the Lok Sabha

The Finance Minister, Smt. Nirmala Sitharaman, has introduced ‘Notice of Amendments’ to the Finance Bill, 2021 in the Lok Sabha. More than 100 changes have been proposed to the original Finance Bill, 2021 which was introduced in the Lok Sabha on February 01, 2021

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021273/copy-of-‘notice-of-amendments’-to-the-finance-bill-2021-as-introduced-in-the-lok-sabha.aspx

No case of anti-competitive practice made out against OPs as there was no record to show cartelization

COMPETITION LAW : Where Informant an association of kraft paper mills alleged that OPs (five different associations of corrugated box manufacturers) had formed a cartel to stop purchase of kraft paper from members of Informant and also to close down their manufacturing units in a co-ordinated manner to create artificial shortage of supply of corrugated boxes, so as to push for low prices of kraft paper (raw material) and high prices for corrugated boxes

from www.taxmann.com Latest Case Laws https://ift.tt/3sqHJ13

Limitation period to file rectification application u/s 254 is to be reckoned from date on which order was served

INCOME TAX : Where ITAT passed an assessment order against assessee on 9-9-2018 and order was served upon assessee on 5-12-2018, impugned rectification application filed by assessee against said order on 3-6-2019 i.e. within 6 months of receiving of order of Tribunal was to be accepted

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

HC grants 20 days for availing appellate remedies against order passed u/s 8 of PMLA

FEMA, BANKING amp; INSURANCE : Where petitioner sought for a period of 45 days to approach Appellate Tribunal against order passed under section 8 of PML Act, 20 days' time was to be granted to petitioner to avail of its appellate remedies

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

No contravention of Competition law if alleged price parallelism was explained by transparent historical prices

COMPETITION LAW : Where apart from alleged price parallelism in NHAI tender for year 2019-20 which had been explained through transparent historical price trends, there was no other material available on record which might indicate collusion or any concerted action between opposite parties in respect of NHAI tender, there existed no prima facie case of contravention of provisions of section 3, read with section 4 against opposite parties

from www.taxmann.com Latest Case Laws https://ift.tt/2Ph4mWP

Exp. reduced from export turnover to be reduced from total turnover as well while computing sec. 10A relief

INCOME TAX : Telecommunication expenses and travelling expenses incurred by assessee in foreign currency which were reduced from export turnover were to be reduced from total turnover for computing deduction under section 10A

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

Monday, March 22, 2021

HC directs PCIT to look into matter as order giving effect to CIT(A)’s order was passed beyond limitation period

INCOME TAX : After an order is passed by Commissioner(Appeals) under section 250, same has to be given effect to within a period of three months from end of month in which order is passed or period of three months from date of receipt of order by Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as case may be;

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198793/hc-directs-pcit-to-look-into-matter-as-order-giving-effect-to-cita’s-order-was-passed-beyond-limitation-period.aspx

National Bank for financing Infrastructure and Development Bill, 2021 introduced in Lok Sabha

The National Bank for financing Infrastructure and Development Bill, 2021 has introduced in Lok Sabha with an objective to carry on the business of financing infrastructure and or matter connected therewith or incidental thereto.

from taxmann.com News https://ift.tt/2NFd68R

Matter remanded back for determining whether TDS is deductible if payment is not taxable as FTS

INCOME TAX : Where share capital and reserve and surplus of assessee-company were higher than investments made by it which were yielding exempt income and, further, no expenditure by way of interest, staff, conveyance, telephone, etc. was incurred by assessee for earning such exempt income, impugned disallowance made by Assessing Officer under section 14A read with rule 8D was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3eZCvW5

No ST on incentives received by travel agents for achieving targets being not a consideration: CESTAT

EXCISE/ST/VAT : No ST on incentives received by travel agents for achieving targets being not a consideration: CESTAT

from www.taxmann.com Latest Case Laws https://ift.tt/3f487JV

No sec. 69A additions for cash deposits accepted under PMGKY without following principle of natural justice

INCOME TAX : Where AO made addition under section 69A on account of money offered by assessee under PMGKY scheme, 2016, in view of facts that revenue had failed to consider contention of assessee that such amount could not be treated as unexplained money/under section 69A as assessee had availed benefit of PMGKY scheme in accordance of law, and, further, no personal hearing was afforded to assessee, impugned addition was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3f3bFfu

Exp. of eligible unit under sec. 10B can be claimed as deduction under section 35(2AB)

INCOME TAX : Assessee would be entitled to claim deduction under section 35(2AB) in respect of expenses of its unit which was eligible for exemption under section 10B

from www.taxmann.com Latest Case Laws https://ift.tt/3tISqw1

AO rightly disallowed purchases made by assessee as it failed to establish identities of parties

INCOME TAX : Where assessee claimed expenditure on account of purchases of certain materials, since assessee could not produce parties from whom it made such purchases and document relied upon by assessee viz., receipt for goods, weighment slips, inward slips were all self made, impugned expenditure was to be disallowed

from www.taxmann.com Latest Case Laws https://ift.tt/3c4vgdr

Account marked as NPA prior to pandemic was not eligible to obtain benefit of moratorium by RBI circular

FEMA, INSURANCE amp; BANKING : Where petitioner who had availed credit facilities from bank was already a defaulter and its account had been declared NPA when pandemic set in, benefit of RBI circulars granting moratorium of six months could not be extended to petitioner as account of petitioner was already marked 'NPA' and was not a 'standard' account to which benefits of Circulars could be extended

from www.taxmann.com Latest Case Laws https://ift.tt/315SY2Q

Saturday, March 20, 2021

Payment of excess sales tax along with interest on failure to furnish Form C is deductible exp.: ITAT

INCOME TAX : Where due to non-collection of Form C from buyers assessee was not found entitled to pay sales tax at concessional rate and, thus, normal rate of tax was made applicable on its transactions, differential amount of tax (normal rate minus concessional rate) subsequently deposited by assessee along with interest on such delayed payment of sales tax was not in nature of penalty for contravention of any law and same was to be allowed as deduction under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3s4vG9r

No penalty for undisclosed income if it wasn’t mandatory to fill details of assets amp; liabilities in ITR

INCOME TAX : For levy of penalty under section 271AAB, case must fall within four corners of definition of expression 'undisclosed income' as defined under section 271AAB itself;

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198829/no-penalty-for-undisclosed-income-if-it-wasn’t-mandatory-to-fill-details-of-assets-amp-liabilities-in-itr.aspx

Information about tax evasion investigation carried out by DGIT (Inv.) not required to be intimated to complainant

INCOME-TAX/BLACK MONEY : Information in respect of investigation carried out by office of Directorate General of Income Tax (Investigation) in respect of TEP is not required to be intimated to complainant as said office is outside purview of RTI Act, 2005; only broad outcomes after completion of investigation could be communicated only when directed by High Court

from www.taxmann.com Latest Case Laws https://ift.tt/31dH1Ix

Attachment of properties under PMLA without summoning real owners violated principles of natural justice: PMLA-AT

FEMA, BANKING amp; INSURANCE : Where appellants were real owners of property attached under section 5 of PMLA but they were neither summoned nor notice was sent by Enforcement Directorate (ED), there was a clear violation of principle of natural justice and appellants ought to have been noticed by respondent (ED) and Adjudicating Authority before deciding on attachment of properties and, therefore, order of attachment was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3cSpcE2

Provisions of sec. 50 couldn't be invoked on sale of plot of land as assessee never claimed depreciation on it

INCOME TAX : Where assessee sold plots of land and declared LTCG, however, a reopening notice was issued on ground that plots of land sold by assessee were included in block of assets on which depreciation was charged and sale consideration was more than WDV of block of assets, thus, such excess was to be taxed as short-term capital gain under section 50, since all information regarding LTCG

from www.taxmann.com Latest Case Laws https://ift.tt/38Y3zBb

Friday, March 19, 2021

Intimation by police won’t confer jurisdiction on AO to issue search warrant for any future contingency: HC

INCOME TAX : Intimation by police would not confer jurisdiction on revenue to detain and withhold cash by issuance of an invalid search warrant under section 132 for a future contingency, since revenue had no reason to believe that assessee would not disclose cash transaction in return of income

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197848/intimation-by-police-won’t-confer-jurisdiction-on-ao-to-issue-search-warrant-for-any-future-contingency-hc.aspx

Bar Council of India is not an enterprise; its functions can't be examined under Sec. 4 of Competition Act: CCI

COMPETITION LAW : Where informant, a law aspirant, filed information against Bar Council of India (BCI) alleging contravention of section 4 in framing rule of legal education according to which candidates belonging to General category who have attained age of more than 30 years are barred from pursuing legal education, BCI was discharging its regulatory functions and, therefore, it was not enterprise under section 2(h) and its functions did not merit examination under section 4

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

SAT quashes monetary penalty imposed by SEBI on bank for technical violation of regulation 7B of mutual funds norms

COMPANY LAW/SEBI : Where appellants, public sector banks, had violated regulation 7B of Mutual Fund Regulations but violation was technical violation and appellants had subsequently reduced their stake in UTI Mutual Fund below 10 per cent in terms of regulation 7B, no monetary penalty was to be imposed on appellants for such technical violation

from www.taxmann.com Latest Case Laws https://ift.tt/2Qma3n1

Bar Council of India is not enterprise amp; its functions not examined u/s 4 of competition Act, 2002: CCI

Sum deposited as part of sales tax along with interest to be allowed as deduction : ITAT

Interest paid on loan taken to purchase shares on a Co. is allowable exp. : ITAT

INCOME TAX : Where assessee company was engaged in business of investments, interest paid on loan taken by assessee for making investment in purchasing shares of a company was to be allowed as deduction under section 36(1)(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/3c2E0kt

Thursday, March 18, 2021

No additions if AO failed to prove that assessee following POC method didn’t show remaining income in later years

INCOME TAX : Whether where assessee engaged in business of supply of processes; designing, construction etc., was following consistent method of accounting to recognize revenue under these contracts and percentage of completion of project had been worked out as per total cost incurred on project to date vis-à-vis total budgeted cost and that fraction was applied to contract value for purpose of revenue recognition and similar formulae had been adopted by assessee in preceding two years which had

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198775/no-additions-if-ao-failed-to-prove-that-assessee-following-poc-method-didn’t-show-remaining-income-in-later-years.aspx

AAR rejected application as issue was already pending before ITAT

INCOME TAX : Where applicant, a foreign company, has entered into two agreements, namely, 'System Fund Support Services Agreement' ('SFS') and 'Reservation System Facility Agreement' ('RSF') with ABC India effective from 1-4-2019 and it seeks to know whether amounts received by applicant from ABC India for provision of Marketing,

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

Sec. 68 additions justified as donors who confirmed grant of loan have retracted it during CBI investigation: HC

INCOME TAX : Where assessee-trust received donation from donors who initially submitted confirmation of donation, however during investigation by CBI confessed that they had not given any such donations; since genuineness of donors could not be established, donations were to be treated as bogus and additions were to be made under section 68

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

Interest earned on FDs, RDs amp; tax refund to be included while ascertaining ceiling of partner's remuneration

INCOME TAX : Interest earned by assessee-firm on fixed deposits, recurring deposits and interest on income tax refund could not be excluded for purpose of working out book profit to ascertain ceiling of partners's remuneration

from www.taxmann.com Latest Case Laws https://ift.tt/3vz0JfA

No case of cartelisation when details of projects shared by informant didn’t support allegations of bid-rigging : CCI

COMPETITION LAW : Where informant alleged that OP bidders had indulged in cartelisation in tenders for projects taken up under AMRUT Mission, however documents submitted by informant showing details of projects did not support allegations of bid rigging made by informant in any manner, information was to be closed forthwith

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197649/no-case-of-cartelisation-when-details-of-projects-shared-by-informant-didn’t-support-allegations-of-bid-rigging-cci.aspx

SCNs for investigation under Customs to be issued by Jurisdictional Commissioners: CBIC

After Apex Court's landmark decision in Canon India, now CBIC clarified that SCNs for investigation under Customs to be issued only by the jurisdictional commissioners.

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AO cannot change valuation method adopted by assessee while determining fresh valuation of shares

INCOME TAX : Where assessee allotted preference shares to various residents at a premium, Assessing Officer could have determined a fresh valuation but could not have changed DCF method of valuation adopted by assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3eRM2OE

Not striking off irrelevant matter in notice would vitiate penalty proceedings: High Court

Capital gain leviable in year when property was handed over to purchaser amp; not in year of registration of sale deed

INCOME TAX : Where assessee entered into an agreement for transfer of land on 6-5-2000 and possession of property was also handed over to purchaser on receiving substantial part of sale consideration and sale deed was registered on 3-8-2006, capital gain would be chargeable in assessment year 2001-02 and not in assessment year 2007-08

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

Wednesday, March 17, 2021

Not striking off irrelevant matter in notice wouldn’t vitiate penalty proceedings: High Court

INCOME TAX : Where assessment order clearly records satisfaction for imposing penalty on one or other, or both grounds mentioned in section 271(l)(c), a mere defect in notice, not striking off irrelevant matter would vitiate penalty proceedings

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198774/not-striking-off-irrelevant-matter-in-notice-wouldn’t-vitiate-penalty-proceedings-high-court.aspx

Waiver of interest on demand can’t be granted if assessee doesn’t fulfil prescribed conditions: High Court

INCOME TAX : Where conditions for waiver of interest under section 220(2A) were not complied with by assessee nor assessee could show to have any financial hardship, there would be no waiver of interest

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197836/waiver-of-interest-on-demand-can’t-be-granted-if-assessee-doesn’t-fulfil-prescribed-conditions-high-court.aspx

Interest paid on loan taken to repay housing loan of commercial property is eligible for deduction u/s 24(b)

INCOME TAX : Where assessee-company, engaged in business of real estate, borrowed loan from bank for construction of a commercial building project and further borrowed an amount to repay said earlier loan, interest paid by assessee on both such amounts borrowed by it was to be allowed as deduction under section 24(b)

from www.taxmann.com Latest Case Laws https://ift.tt/3qVZgN1

List of Bills Introduced and Passed in the Parliament

The below table provides the details of the bills introduced and passed by the Parliament and the Bill assented to by the President of India.

from taxmann.com News https://ift.tt/30OypI5

Investors placing orders after observing movement of scrip may not be guilty of manipulating securities market: SAT

COMPANY LAW/SEBI : Placing of orders in a very small number generally may point towards possible violation of provisions of PFTUP Regulations still it is possible that an investor observing movement of scrip could be placing orders in system without any intention to manipulate market

from www.taxmann.com Latest Case Laws https://ift.tt/3cFG4xQ

IFSC Authority takes decisions on various regulations, and fee structures

The IFSCA Authority has approved of the fee structure for MIIs, Market Intermediaries, IBUs operating in GIFT IFSC as recommended by the IFSCA Internal Committee and 3 regulations i.e., IFSCA (Market Infrastructure Institutions) Regulations, 2021 (MII Regulations), International Financial Services Centres Authority (Finance Company), Regulations, 2021and International Financial Services Centres Authority (Banking) (Amendment), Regulations, 2021.

from taxmann.com News https://ift.tt/3r1FRu8

Limitation period would start from date when order of ITAT comes to knowledge of assessee: HC

INCOME TAX : Limitation period would not start from date on which order was pronounced by Tribunal and it would start from point when said order came in knowledge of assessee

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

AO couldn’t exercise revisional proceedings if case of assessee was transferred to another jurisdiction

INCOME TAX : Where ITO passed a reassessment order under section 147/143(3) and thereafter case of assessee was transferred under section 127 from ITO to Dy. CIT, impugned reassessment order under section 263/143(3) passed by ITO giving effect to order of Pr. CIT requiring to set aside said reassessment order under section 147/143(3) originally framed by ITO was without jurisdiction and same was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197240/ao-couldn’t-exercise-revisional-proceedings-if-case-of-assessee-was-transferred-to-another-jurisdiction.aspx

Complying three conditions mentioned u/s 220(2A) is must for granting waiver of interest on demand: HC

Interest paid on loan taken to repay housing loan is also allowed as deduction u/s 24(b)

HC upholds cancellation of licence of CKP Co-operative Bank by RBI due to its adverse financial position

FEMA, BANKING amp; INSURANCE : Where RBI on pointing out that CKP Bank was not maintaining required CRAR, there were large number of irregularities on part of CKP Bank in conducting its affairs thereby causing tremendous financial loss to depositors, erosion of assets including depositors and that said CKP Bank did not have adequate assets to meet its liabilities requested

from www.taxmann.com Latest Case Laws https://ift.tt/3tqQ1G4

Tuesday, March 16, 2021

Relays manufactured for use only as Railway Signaling are classifiable under heading 8608

EXCISE/ST/VAT : 'Relays' manufactured by appellant used only as Railway signaling equipment would fall under Chapter 86, Tariff Item 8608 as claimed by appellant

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

HC upholds cancellation of licence of CKP Co-operative Bank by RBI due to its averse financial position

Extended period of limitation would spill over to next day if last day falls on Sunday being public holiday

EXCISE/ST/VAT : From a comparison of section 35 of Central Excise Act, 1944 and section 85(3A) of Finance Act, 1994, it is found that there is subtle difference in language in two provisions : While under section 35 period of limitation is 60 days plus 30 days that is at most 90 days, under sub-section (3A) of section 85, period of limitation is two months plus one month i.e., total three months at maximum, as per sub-section (35) of section 3 of General Clauses Act,

from www.taxmann.com Latest Case Laws https://ift.tt/3rWb82H

Order passed by SEBI for suspected insider trading without analysing facts was to be quashed: SAT

COMPANY LAW/SEBI : Where appellants who were promoters of company entered into suspected insider trading being privy to unpublished price sensitive information and SEBI passed impugned order without analysing facts, impugned order was to be quashed and SEBI was directed to decide matter after hearing appellants

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

Investment made by Mauritian Co. with Govt. permission can't be termed as a sham just because investment was huge

INCOME TAX : SLP dismissed against High Court ruling that where investment in assessee-company was made by Mauritius based global private investment group with permission of Government authorities, same could not be branded as sham transaction merely because it involved huge investment and investor would not earn any dividend income immediately and investment was divested to group companies by assessee-company

from www.taxmann.com Latest Case Laws https://ift.tt/3tgP96W

Refund cannot be claimed before completion of previous year unless tax was illegally collected by revenue

INCOME TAX : Where assessee claimed refund of an excess amount of advance tax paid by it on LTCG on sale of a hall before completion of previous year on 31st march so that money could be utilised for marriage of her daughter, since excess amount of advance tax deposited by assessee was not illegally collected by revenue, assessee would not be entitled to refund of same before completion of previous year

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

Sec. 80-IB deduction is to be allowed even if completion certificate is issued by registered architect; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that deduction under section 80-IB was to be allowed where completion certificate was issued by registered architect as per State Municipal Corporation Act and; deduction could not be denied merely because completion certificate was not issued by local authority

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

AO couldn't initiate reassessment forming opinion that particular payment required TDS without giving any basis: SC

INCOME TAX : SLP dismissed against impugned order of High Court holding that where in case of assessee engaged in business of real estate, Assessing Officer initiated reassessment proceedings on ground that EDC paid by assessee to Haryana Urban Development Authority (HUDA) were subject to TDS under section 194, however, he had not given any basis for forming his opinion , impugned reassessment proceedings deserved to be quashed

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

Monday, March 15, 2021

Govt. introduces bill to increase foreign investment in insurance companies from 49 % to 74 %

The Govt. has introduced Insurance (Amendment) Bill, 2021 in order to achieve the objective of Government's Foreign Direct Investment Policy of supplementing domestic long-term capital, technology and skills for the growth of the economy and the insurance sector, and thereby enhance insurance penetration and social protection, it has been decided to raise the limit of foreign investment in Indian insurance companies from the existing 49 % to 74 %.

from taxmann.com News https://ift.tt/3vsJk88

No denial of Sec. 35(2AB) deduction prior to 01-06-2016 on failure to file Form 3CL in respect of exp. incurred

INCOME TAX : Prior to 1-6-2016, only requirement to claim deduction under section 35(2AB) was to receive recognition from prescribed authority, since said recognition was obtained by assessee on 26-3-2013, deduction could not be denied merely because prescribed authority failed to send intimation in Form 3CL in respect of expenditure incurred by Ramp;D unit for relevant assessment year

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

Expenses incurred on Ramp;D to manufacturing allowable as deduction u/s 37

INCOME TAX : Where assessee, engaged in business of design, development, manufacture and maintenance of aircrafts and avionics systems, incurred expenditure towards research and development for manufacture of aircrafts which were to be sold, since expenditure was incurred for purpose of business of assessee, same was to be allowed as deduction under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/38BvZR5

No additions for donations where same were utilised for assessee's objectives even if it is not registered u/s 12AA

INCOME TAX : Where assessee society, engaged in carrying on religious and charitable projects, had utilized maximum part of an anonymous voluntary donation received by it for aims and objectives of society, no addition qua said donation was to be made on ground that assessee society was not registered under section 12AA in current year though it was granted registration later

from www.taxmann.com Latest Case Laws https://ift.tt/3eDsfT3

Interest or remuneration not taxable in hands of partner merely because same was claimed as deduction by firm

INCOME TAX : Where reopening notice was issued against assessee partner on ground that amount of interest and remuneration received by him from partnership firm as per a clause in partnership deed being claimed as deduction under section 10AA by firm was liable to be taxed in hands of assessee partner, since there was no material on record to indicate that assessee had actually received any interest or remuneration from firm, impugned reopening was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3cwBOR9

Revenue couldn't reject change in accounting method if change was accepted in subsequent years

INCOME TAX : Assessee third party administrator of insurance company could change accounting method from invoice completion method to proportionate completion method

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

No additions for donations where same were utilised for assessee's objectives even if it is registered u/s 12AA

Benefit of Sec. 11 exemption couldn't be denied on belatedly submission of audit report

INCOME TAX : Where assessee, a public charitable trust registered under section 12A, had substantially satisfied condition for availing benefit of exemption as a trust, it could not be denied exemption merely on bar of limitation in furnishing audit report in Form no. 10B,

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

Friday, March 12, 2021

Application seeking liability of any capital gain tax on transfer of LLP interest is admissible: AAR

INCOME TAX : Where applicant seeks to know as to whether it is liable to any capital gains tax on transfer of LLP interest in any Indian LLP i.e., EPSIN to NVCJN under provisions of Article 13 of India-Netherlands double taxation avoidance agreement but department has raised objection to admission of application on ground that it involves determination of fair market value of property,

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

Changing method adopted by assessee u/s 56(2)(viib) without scrutinizing valuation report is unjustified

INCOME TAX : Where AO rejected DCF method of valuation adopted by assessee to determine value of shares issued by it on premium and determined value of shares on basis of Net Asset Value (NAV) method, since AO had adopted different method to determine value of shares without scrutinizing valuation report furnished by assessee under DCF method, impugned order was to be set aside and matter was to be remanded

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

Sec. 14A disallowances cannot be added back while computing book profits u/s 115JB

INCOME TAX : Disallowance made under section 14A could not be added to book profits of assessee under section 115JB

from www.taxmann.com Latest Case Laws https://ift.tt/30ATd5D

Absence of failure on part of assessee to disclosed material facts would make reassessment unjustified; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that where AO issued reopening notice against assessee, engaged in life insurance business, after expiry of four years from end of relevant year, since in reasons recorded there was no reference to any new tangible material but reference was only to financial statement of assessee itself, impugned notice issued merely on basis of change of opinion, was to be quashed

from www.taxmann.com Latest Case Laws https://ift.tt/2OJ4tKG

Revisionary powers prescribed u/s 263 couldn't be exercised in respect of issues already considered by Set Com

INCOME TAX : Where issue of short-term capital gain earned by assessee on sale of shares had already been considered by Settlement Commission, Commissioner could not assume jurisdiction on such issue again in revisionary proceedings

from www.taxmann.com Latest Case Laws https://ift.tt/3cqSCJ5

HC dismisses writ plea seeking relief in relation to debt where petitioner continuously defaulted in repayment

FEMA, BANKING amp; INSURANCE : Where defaults by petitioners dated back to 2018 and defaults continued over a period of two years prior to outbreak pandemic, such cases could not be those which would be entitled to benefits under policies of RBI, which were meant to give some relief during pandemic and, therefore, petition filed by petitioners seeking relief in relation to payment of debt to respondent-ILamp;FS was to be dismissed

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

Thursday, March 11, 2021

Additional Director General of DRI is not empowered for initiation of recovery proceedings under Customs: SC

EXCISE/ST/VAT : Section 28(4) empowers recovery of duty not paid, part paid or erroneously refunded by reason of collusion or any wilful mis statement or suppression of facts and confers power of recovery on proper officer. It is impermissible to allow an officer, who has not passed original order of assessment, to re-open assessment on grounds that duty was not paid/not levied, by original officer who had decided to clear goods and who was competent and authorized to make assessment.

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

HC accepted misc. application as non-appearance of assessee before ITAT was due to illness of its counsel

INCOME TAX : Where Tribunal passed an ex-parte order against assessee due to its non-appearance and assessee filed a miscellaneous application along with an affidavit clearly stating that such non-appearance was due to sudden illness of its counsel, since miscellaneous application and affidavits filed in support thereof clearly disclosed sufficient cause for non-appearance of assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3l3BQ73

SEBI releases consultation paper on proposed International Financial Services Centres authority

The SEBI has come up with consultation paper on proposed International Financial Services Centres authority (Issuance and Listing of Securities Regulations) 2021. The objective of this consultation paper is to seek comments / views from public on the proposed regulations for issuance and listing of various securities in International Financial Services Centres (IFSC) in India.

from taxmann.com News https://ift.tt/3cp8FXW

Wednesday, March 10, 2021

‘UBER India’ not liable to Sec. 194C TDS as it is remitting money to drivers on behalf of ‘UBER Netherland’

INCOME TAX : Uber India could not be held liable to pay TDS for Payments to Driver Partners as

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198651/‘uber-india’-not-liable-to-sec-194c-tds-as-it-is-remitting-money-to-drivers-on-behalf-of-‘uber-netherland’.aspx

Bombay HC stayed demand as addition was based on statement of a person who didn’t appear for cross examination

INCOME TAX : Where Assessing Officer made an addition under section 69A to income of assessee primarily on basis of statement of a person and raised tax demand, since said person did not appear for cross-examination and, further, for previous assessment year he had retracted such statement, reliance placed on such uncorroborated statement of said person for making impugned addition was highly questionable, thus,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198273/bombay-hc-stayed-demand-as-addition-was-based-on-statement-of-a-person-who-didn’t-appear-for-cross-examination.aspx

Order passed by ITAT without considering application for admission of additional evidence was unjustified : HC

INCOME TAX : Where Tribunal had passed an assessment order without considering application filed by assessee under rule 29 of Appellate Tribunal Rules for adducing additional evidence much prior to date of hearing, impugned order was to be set aside and matter was to be remanded back to Tribunal to first dispose of said application under rule 29 on merit and thereafter proceed to dispose of appeal on merit

from www.taxmann.com Latest Case Laws https://ift.tt/3bxCV3R

Evidence in form of e-mails, reports, etc. establishes rendering of services by AE; TP adjustment to be deleted

TRANSFER PRICING : Where assessee in order to support its claim of having received regional management services had placed on record documentary evidence in form of e-mails, correspondences, reports etc., which clearly established rendering of said services by AE to assessee, TP adjustment made by TPO on ground that assessee had failed to produce any documentary evidence in support of same, was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/2OkRoY3

IBBI issues guidelines for Appointment of Insolvency Professionals as Administrators under SEBI Regu

The Securities and Exchange Board of India (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018, [Regulations] provide for appointment of Insolvency Professionals (IPs) as Administrators for the purposes specified therein. As a result, the IBBI has prepared guidelines in consultation with SEBI to facilitate appointment of IPs as Administrators.

from taxmann.com News https://ift.tt/30qD8PS

Tuesday, March 9, 2021

SC ends extension of limitation period granted to litigants for filing of appeals due to Covid-19 pandemic

COMPANY LAW : The SC has given directions relating to limitation period for the period 15-3-2020 to 14-3-2021. The Apex Court held the said period would be excluded from the period of limitation for filing appeals, etc. Further, where the limitation was expired during the above period, the time-limit of 90 days (or actual balance time whichever is higher) would be available from 15-3-2021 for filing appeals etc

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

Directors disqualified prior to May 2018 continue to be directors in companies other than defaulting company

COMPANY LAW : Where petitioners were directors who had been disqualified prior to 7-5-2018, qua other companies in addition to defaulting company, proviso to section 167(1)(a) would not apply and petitioners would continue to be directors in companies other than defaulting companies and, therefore, DINs and DSCs of petitioners would be re-activated

from www.taxmann.com Latest Case Laws https://ift.tt/3t38B6Z

Additions based on mere presumption that assessee had earned undisclosed income couldn’t be sustained; SLP dismissed

INCOME TAX : SLP dismissed against impugned order of High Court holding that in absence of supporting evidence, additions based merely on presumption that assessee had earned undisclosed income and incurred expenses outside books of account would not be sustainable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197501/additions-based-on-mere-presumption-that-assessee-had-earned-undisclosed-income-couldn’t-be-sustained-slp-dismissed.aspx

Waiver of outstanding interest couldn’t be considered as withdrawal of provisions while computing book profits

INCOME TAX : Where assessee made no provision for outstanding interest payable on loan, waiver of such outstanding interest could not be considered as withdrawal of provision and, thus, impugned amount could not be reduced from book profit

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196911/waiver-of-outstanding-interest-couldn’t-be-considered-as-withdrawal-of-provisions-while-computing-book-profits.aspx

Writ not maintainable on issue which involves going into sufficiency and adequacy of reasons recorded for search

INCOME TAX : Writ Court cannot go into sufficiency and adequacy of reasons recorded in note of satisfaction in terms of section 132; power of High Court is limited only to assessing whether relevant reasons were recorded while initiating proceedings

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

For computing period of limitation for appeal or proceeding, period from 15.03.2020 till 14.03.2021

The SC has given directions relating to limitation period for the period 15.03.2020 to 14.03.2021. The Apex Court held the said period would be excluded from the period of limitation for filing appeals, etc. Further, where the limitation was expired during the above period, the time limit of 90 days (or actual balance time whichever is higher) would be available from 15.03.2021 for filing appeals etc. [125 taxmann.com 151]

from taxmann.com News https://ift.tt/2OB6OXI

Monday, March 8, 2021

NBFC was to be permitted to file appeal before Govt. against impugned order cancelling its registration: Madras HC

FEMA, BANKING amp; INSURANCE : Where petitioner a NBFC company's certificate of registration was cancelled for not complying with various provisions of RBI Act and its directions/regulations issued from time to time, and, said impugned order canceling registration had been passed under authority as per law and there was no violation of principles of natural justice, only remedy available to petitioner was to prefer statutory appeal as against impugned order before Central Government

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

SC quashes order of impleadment of independent directors in course of proceedings relating to ILamp;FS Limited

COMPANY LAW : Independent Directors have a vital role, as is indicated by provisions of Companies Act, 2013. While Independent Directors are intended to be independent, they cannot remain indifferent to position of company

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

Order of transferring case is an administrative order; assessee has no right to choose his assessing authority

INCOME TAX : Transfer order passed under section 127 is more in nature of an administrative order rather than quasi-judicial order and assessee cannot have any right to choose his assessing authority, as no prejudice can be said to have been caused to assessee depending upon which authority of Department passes assessment order

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

AAR admitted application to decide taxability of sum received in relation to offshore supplies from a port in Japan

INCOME TAX : Applicant filed an application for advance ruling on whether amount received/receivable by applicant from DMRC under purchase order in relation to offshore supplies of High Efficiency Traction Motors for RS-1 from a port in Japan to DMRC in India, is liable to tax in India under provisions of Act and/or the agreement for Avoidance of Double Taxation between India and Japan(Treaty). Revenue submitted that transaction was designed prima facie for avoidance of tax

from www.taxmann.com Latest Case Laws https://ift.tt/3t2ACvh

No need to remand matter back to AO before allowing deduction of exp. Not claimed in ITR : ITAT

INCOME TAX : Where claim for business expenditure was not made in original return of income, said claim was rightly decided by Tribunal; said issue not be remitted back to Assessing Officer as no claim of expenditure was made before Assessing Officer

from www.taxmann.com Latest Case Laws https://ift.tt/3c8uaw9

Drawer of cheque would be liable if cheque issued to discharge liability of other person gets dishonoured : HC

FEMA, BANKING amp; INSURANCE : If cheque issued to discharge liabilities of other person gets dishonoured, drawer of cheque would be liable

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

No need to establish any connection, link amp; association if search is conducted under fresh warrant

INCOME TAX : Where on physical surveillance during search conducted upon 'K' group, movement of cash from assessee's premises by motorcycle borne couriers was observed and, accordingly, search was conducted at premises of assessee during which a bank locker key was recovered, however, assessee failed to provide any acceptable explanation regarding content of said locker, impugned new warrant of authorisation for search under section 132(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3kWf4O4

ITAT rightly quashed reassessment proceedings as reasons were not communicated to assessee : HC

INCOME TAX : Tribunal was right in quashing reassessment proceedings by Assessing Officer on ground that reasons for reopening were not communicated to assessee and despite opportunities, revenue was not able to produce any evidence to show that reasons recorded for reopening had been provided to assessee as requested by them in their letter

from www.taxmann.com Latest Case Laws https://ift.tt/3c8lFkJ

Acquirer not to be saddled with payment of interest for period when price of share was being determined by SEBI : SAT

COMPANY LAW/SEBI : Where acquirer had acquired ownership of target company and SEBI had finalized price of share as per regulation 8(16) of SAST Regulations, acquirer could not be saddled for payment of interest for period when price was being determined by SEBI

from www.taxmann.com Latest Case Laws https://ift.tt/38jlF08

Saturday, March 6, 2021

HC directs Ministry of Finance to constitute committee to clarify that 'Paypal' was reporting entity under PMLA

FEMA, BANKING amp; INSURANCE : Where petitioner-Paypal was held to be reporting entity and payment system operator by FIU-IND and penalty was imposed on it for violating PML Act, Ministry of Finance was directed to constitute a committee to clarify their position as to whether companies like petitioners who claimed to be facilitators of monetary transactions, both in foreign exchange and in Indian Rupees, ought to be categorised as 'payment system operators' and, hence, 'reporting entities'

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

MCA introduces an option for aadhar based authentication for GSTIN registration in form INC35 AGILE-

The MCA has notified amendment to the Companies (Incorporation) Rules, 2014 whereby an amendment has been made to the form INC-35 AGILE-PRO providing an option for aadhar authentication for purpose of registration of GSTIN. The amendment is effective from 05.03.2021.

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

MCA notifies 05.03.2021 as effective date for enforcement of amendment to provisions relating to Ann

MCA has notified amendment to section 92 of Companies Act, 2013 which relates to Annual Return. The amendment was introduced vide Companies (Amendment) Act, 2017. The amendment is effective from 05.03.2021. Now companies wouldn’t be required to provide particulars of their indebtedness in their Annual Returns. Companies are also exempted from providing details pertaining to FIIs’s, names addresses, countries of incorporation, registration and percentage of shareholding held by them.

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

MCA introduces new e-form MGT-7A for filing of Annual return by OPCs and Small Cos. from F.Y. 2020-2

The MCA amends the Companies (Management and Administration) Rules, 2014 requiring every OPC and Small Company to file their annual return from FY 2020-21 in Form No. MGT-7A (Abridged Annual Return for OPCs and Small Companies). Does way with requirement of filing extract of Annual Return (Form MGT-9). Added explanation for expressions like ‘agency’, ‘cyber security’, ‘electronic voting system’, ‘remote e-voting’ and ‘voting by electronic means’ u/r 20 of (Voting through electronic means)

from taxmann.com News https://ift.tt/3rnGG1f

Exp. incurred by MD in personal capacity couldn’t be held as exp. incurred wholly amp; exclusively for business

INCOME TAX : Where assessee-company claimed expenditure incurred by its managing director in his individual capacity as Honorary counsel of Embassy of Ireland for organising an event to celebrate Ireland National day in India, since said expenditure was not incurred for purpose of business of assessee, same was to be disallowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196874/exp-incurred-by-md-in-personal-capacity-couldn’t-be-held-as-exp-incurred-wholly-amp-exclusively-for-business.aspx

Sec. 68 additions were unjustified as AO failed to controvert genuineness of evidence produced by assessee : ITAT

INCOME TAX : Where AO made addition under section 68 in respect of LTCG declared by assessee from sale of shares by treating said transaction as bogus, since assessee had produced all necessary documentary evidences to prove genuineness of its transaction and Assessing Officer failed to produce any material/evidence to controvert genuineness of such evidences produced by assessee in support of his claim, impugned addition was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/38eIC4K

CIT was justified in invoking revisionary proceedings as assessment was completed without proper inquires : HC

INCOME TAX : Where assessment was completed without proper inquiries, Commissioner was competent to invoke revisional jurisdiction and direct Assessing Officer for fresh assessment

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

Notional income of under-construction building couldn’t be taxed until occupancy certificate is issued

INCOME TAX : Where assessee let out an under construction school building on rent, since building would legally come into existence only on issuance of an occupancy certificate and, further, assessee had declared rental income from letting out of said building in subsequent assessment year, notional income by way of annual letting value could not be assessed on such building during year

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197401/notional-income-of-under-construction-building-couldn’t-be-taxed-until-occupancy-certificate-is-issued.aspx

Application for issue of nil TDS certificate couldn’t be rejected without computing tax liability of assessee

INCOME TAX : Where revenue rejected application filed by assessee for issuing certificate for nil TDS without computing tax liability of assessee and concluding merely on guess work that there would be increase in tax liability as assessee's turnover projected to increase, impugned order was to be set aside and matter was to be remanded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197513/application-for-issue-of-nil-tds-certificate-couldn’t-be-rejected-without-computing-tax-liability-of-assessee.aspx

Friday, March 5, 2021

CESTAT set aside order including value of items supplied free of cost by recipient in taxable value of mining services

EXCISE/ST/VAT : Where appellant, engaged in providing mining services, had not included value of items supplied on free of cost basis by service recipients to appellant in taxable value of its mining services but Commissioner confirmed demand of service tax on money value of items supplied free of cost with penalty and interest, it was held that demand of service tax that had been confirmed by Commissioner could not be sustained and order passed by Commissioner was to be set aside

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

AAR allowed withdrawal of appeal as ITAT ruled in favour of assessee on similar issue in another AY

INCOME TAX : Where applicant approached AAR for withdrawal of its application for advance ruling on ground that it had also filed an appeal for assessment year 2011-12 before Tribunal involving issues identical to one raised in instant application and Tribunal has disposed off said appeal in favour of applicant, it would be appropriate to permit applicant to withdraw the application

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

No Sec. 194-IA TDS on refundable security deposit paid by developer to land owners pursuant to JDA

INCOME TAX : Where assessee an Indian Company engaged in business of real estate development, entered into joint development agreements with 54 parties (land owners) and in terms of agreement, a certain sum had been paid by assessee to land owners as interest free 'refundable security deposit'

from www.taxmann.com Latest Case Laws https://ift.tt/3rlCy1w

Matter couldn’t be remanded back as assessment order was passed by ITAT due to lack of jurisdiction

INCOME TAX : Where Tribunal had set aside a reassessment order passed by Assessing Officer on grounds of being without jurisdiction, Tribunal was unjustified in adjudicating matter on merits and remanding same to Assessing Officer for computation of deduction under section 35(1)(iv)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197520/matter-couldn’t-be-remanded-back-as-assessment-order-was-passed-by-itat-due-to-lack-of-jurisdiction.aspx

HC quashes summoning order for offence u/s 138 against director not responsible for issue of dishonoured cheque

FEMA, BANKING amp; INSURANCE : Where petitioner-director neither signed dishonoured cheque nor signed distribution agreement between company 'B' and complainant, order summoning petitioner for offence punishable under section 138 was to be quashed

from www.taxmann.com Latest Case Laws https://ift.tt/3bfTRM6

Thursday, March 4, 2021

House purchased in name of assessee’s widow daughter is eligible for Sec. 54F exemption: ITAT

INCOME TAX : Where assessee had invested sale consideration on transfer of Capital Asset in purchasing a new residential property in name of his married widowed daughter, Assessing Officer to grant exemption under section 54F on such amount investedin his daughter's name

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198561/house-purchased-in-name-of-assessee’s-widow-daughter-is-eligible-for-sec-54f-exemption-itat.aspx

HC directs passing of assessment order after disposal of SLP as similar issue was pending in it

INCOME TAX : Where SLP was pending before Supreme Court impugning earlier order of High Court disallowing expenditure incurred for minor deviation made to building structure to comply with building bye laws, assessment order disallowing deduction could be effected only after disposal of SLP

from www.taxmann.com Latest Case Laws https://ift.tt/3e7lZml

Reassessment based on information received from Investigation wing not connected with assessee was unjustified

INCOME TAX : Where Assessing Officer issued reopening notice against assessee on basis of information of DDIT (Investigation) about modus operandi adopted by bogus accommodation entry providers, since this information per se was general information/modus operandi of entry operators and there was no specific inputs connecting it with case of assessee, impugned reopening notice on basis of such information was unjustified

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

Mere business linkages and common directorship not sufficient to base finding of violation of section 3, rules CCI

COMPETITION LAW : Mere business linkages and common directorships simpliciter in themselves are not sufficient to base a finding of prima facie violation of section 3(3) in absence of any material indicating concerted action

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

Depreciation on assets acquired under slump sale is to be computed in accordance with 5th proviso to sec. 32

INCOME TAX : Where assessee purchased an undertaking under slump sale, depreciation on WDV of assets taken over by it from transferor company was to be computed as per fifth proviso to section 32(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3qg6knl

Intangible assets acquired during business takeover eligible for dep. even if particulars not disclosed in agreement

INCOME TAX : Where Assessing Officer himself found that goodwill was calculated and allotted to intangible assets acquired during takeover, assessee would be entitled to claim depreciation on such intangible assets, even if particulars related to acquired intangible assets were not disclosed

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

Wednesday, March 3, 2021

Profit attributable to unutilised portion of Floor Space Index is eligible for sec. 80-IB deduction

INCOME TAX : Deduction under section 80-IB(10) was to be allowed to developer on profit derived from sale of unutilized FSI in housing project

from www.taxmann.com Latest Case Laws https://ift.tt/3rg0vY4

Loan waived off under one-time settlement couldn’t be taxed as income where no deduction claimed in earlier years

INCOME TAX : Where assessee claimed that loan amount waived off by bank under one time settlement scheme was not taxable under section 28(iv) as it was not a trading liability and assessee had not claimed any deduction on said amount in earlier year, since assessee failed to produce any details so as to show that how such loan amount was treated in its account in previous year and bank also did not supply any information in this regard, matter was to be remanded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197373/loan-waived-off-under-one-time-settlement-couldn’t-be-taxed-as-income-where-no-deduction-claimed-in-earlier-years.aspx

Tuesday, March 2, 2021

Price deducted as goods not supplied as per the specification whether qualify as 'tolerating an act': Matter Remanded

EXCISE/ST/VAT: Assessee had entered into a contract for supply of certain material with a supplier - Certain material supplied under said contract was found deficient to specified quality - Assessee recovered certain amount from its supplier as liquidated damages for compensating against poor quality of material supplied to him on which service tax was held to be applicable under section 66(E)

from www.taxmann.com Latest Case Laws https://ift.tt/3q7IuKj

Mere classification of a capital asset as agricultural land couldn’t attract concealment penalty

INCOME TAX : Where Assessing Officer noting that a land sold by assessee claiming it to be agricultural land was actually a capital asset attracting tax made additions to income of assessee and further initiated penalty proceedings under section 271(1)(c), since assessee had mentioned about sale of its land in his return of income but only mistakenly claimed same as agricultural land and there was no specific finding regarding concealment of income against assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197301/mere-classification-of-a-capital-asset-as-agricultural-land-couldn’t-attract-concealment-penalty.aspx

Benefit of exemption from penalty is available if intention to evade tax doesn’t appear at any stage of proceeding

INCOME TAX : Where assessee had proved beyond doubt that in a bona fide belief he had deposited tax at rate of 1 per cent under section 194-IA on gross sale consideration considering seller as resident Indian and later on before conclusion of proceedings before Assessing Officer, he had deposited correct amount of tax at rate of 20.6 per cent and applicable interest, he had a reasonable cause for said failure and was duly eligible to get benefit of provisions of section 273B

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000196533/benefit-of-exemption-from-penalty-is-available-if-intention-to-evade-tax-doesn’t-appear-at-any-stage-of-proceeding.aspx

Amendment to sec. 80-IB restricting allotment of multiple units to same person is prospective in nature

INCOME TAX : Amendment to section 80-IB brought with effect from 19.8.2009 restricting allotment of more than one residential units in housing project to same person is prospective in nature and is not applicable to allotment made prior to said amendment

from www.taxmann.com Latest Case Laws https://ift.tt/3q32iyx

Monday, March 1, 2021

Requirement of taking “prior” permission of RBI before executing sale deed or gift deed by a non-resident is mandatory

FEMA, BANKING amp; INSURANCE : Section 31 of FERA Act is mandatory and transaction in contravention thereof is void or unenforceable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198521/requirement-of-taking-“prior”-permission-of-rbi-before-executing-sale-deed-or-gift-deed-by-a-non-resident-is-mandatory.aspx

Requirement of taking “prior” permission of RBI before executing sale deed or gift deed is mandatory: SC

Writ claiming to be owner of gold seized from job worker not acceptable if job worker filed appeal against such seizure

INCOME TAX : Where assessee, engaged in business of trading in gold jewellery, gave gold to a job worker for making jewellery which was seized from custody of said job worker as he failed to produce relevant documents, since appeal filed by said job worker against said seizure of gold was pending before Commissioner (Appeals), impugned writ petition filed by assessee claiming to be an owner of such gold could not be accepted

from www.taxmann.com Latest Case Laws https://ift.tt/3c3qLPl

Sec. 68 addition were unjustified as there was no incriminating material found during search

INCOME TAX : Where pursuant to search conducted upon group to which assessee company belonged, a notice under section 153C was issued against assessee, since Tribunal had recorded a finding of fact that there was no reference to any incriminating material related to assessee found during search, impugned notice under section 153C against assessee was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3bJzmX4

Sec. 36(1)(iii) deduction couldn’t be disallowed if nexus between interest payment and business is established

INCOME TAX : Where assessee company, engaged in business of real estate, borrowed capital for acquiring a housing finance company by purchasing its shares so as to make funds readily available when required for development of a housing project or to fund any acquisition of real estate, since such investment in shares by assessee was for expansion of its real estate business, interest paid on such capital borrowed was to be allowed as deduction under section 36(1)(iii)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197472/sec-361iii-deduction-couldn’t-be-disallowed-if-nexus-between-interest-payment-and-business-is-established.aspx