AO wasn’t justified in taxing salary income earned outside India just because assessee couldn’t produce TRC

INCOME TAX : Where assessee-employee, a NRI, received salary income and other allowances in India against employment exercised in Belgium and offered same for taxation in Belgium, in pursuance of article 16 of DTAA between India and Belgium, AO was not justified in taxing said salary income on ground that assessee could not produce Tax Residency Certificate from said country.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314734/ao-wasn’t-justified-in-taxing-salary-income-earned-outside-india-just-because-assessee-couldn’t-produce-trc.aspx

SC refuses to review its judgment whereby it directed RBI to disclose info about banks under RTI

FEMA amp; BANKING: Where applicant-banks filed application before Supreme Court seeking recall of order passed in Reserve Bank of India v. Jayantilal N. Mistry (2016) 3 SCC 525 whereby Court directed RBI to disclose information sought for while refusing to accept contention of RBI that information sought by Respondents could not be disclosed in view of its fiduciary relationship with banks and that such information was exempted from disclosure under Section 8 (1) of Right to Information Act, 2005,

from www.taxmann.com Latest Case Laws https://ift.tt/3eHu4wT

CIT was empowered to cancel trust registration even prior to 01-6-2010 if activities of trust weren’t genuine

INCOME TAX : Principal Commissioner or Commissioner was vested with power even prior to 1-6-2010 to cancel registration made under section 12A, if Commissioner was satisfied that activities of such Trust or Institution were not genuine or were not being carried out in accordance with objects of Trust or Institution

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314748/cit-was-empowered-to-cancel-trust-registration-even-prior-to-01-6-2010-if-activities-of-trust-weren’t-genuine.aspx

Principal Bench and all the Regional Benches of the CESTAT will not sit from 3.5.2021 to 14.5.2021

As more number of COVID positive cases are reported among the staff of the Tribunal and in view of the lockdown/curfew declared by different state governments, the Hon’ble President has directed that the Principal Bench and all the Regional Benches of the CESTAT will not sit from 3.5.2021 to 14.5.2021.

from taxmann.com News https://ift.tt/2Pz8PEK

SC further extends period of limitation for all proceedings in view of sudden and second outburst of COVID-19 Virus

COMPANY LAW: In view of extraordinary situation caused by sudden and second outburst of COVID-19 Virus, Supreme Court restored order dated 23-3- 2020 and directed that period(s) of limitation, as prescribed under any general or special laws in respect of all judicial or quasi-judicial proceedings, whether condonable or not, would stand extended till further orders.

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

Reassessment to deny Sec. 80-IB relief is unjustified if assessee duly satisfied prescribed conditions

INCOME-TAX - Where assessee challenged reopening of assessment to deny section 80IB deduction and by overruling objection of assessee ,assessment order passed denying deduction to assessee on ground that assessee had not engaged more than 6 workers in its business activity

from www.taxmann.com Latest Case Laws https://ift.tt/3u2Dycr

AA couldn’t become ‘ functus officio’ with expiry of 180 days from date of passing order of provisional attachment

FEMA AND BANKING : Adjudicating Authority does not become functus officio with expiry of 180 days time period from date of passing order of provisional attachment unless Adjudicating Authority completes adjudication and confirms order of provisional attachment before such 180 days period

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314714/aa-couldn’t-become-‘-functus-officio’-with-expiry-of-180-days-from-date-of-passing-order-of-provisional-attachment.aspx

No disallowance if assessee produced letter from agriculturists insisting cash payments as they don’t have bank a/c

INCOME-TAX : Where assessee, engaged in real estate business, purchased agricultural land and made cash payment towards purchase of land and assessee produced evidence by way of confirmation letters from 5 out of 8 sellers who were agriculturists to show that they insisted on cash payments as they do not have bank accounts , payments made to 5 agriculturists do not call for any disallowance under section 40A(3).

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314664/no-disallowance-if-assessee-produced-letter-from-agriculturists-insisting-cash-payments-as-they-don’t-have-bank-ac.aspx

Computation of deduction u/s 80-IA is not restricted only to ‘Business Profit’ derived by an eligible unit: SC

INCOME TAX : Scope of sub-section (5) of section 80-IA is limited to determination of quantum of deduction under sub-section (1) of section 80-IA by treating 'eligible business' as 'only source of income'. Sub-section (5) cannot be pressed into service for reading a limitation of deduction under sub-section (1) only to 'business income'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314744/computation-of-deduction-us-80-ia-is-not-restricted-only-to-‘business-profit’-derived-by-an-eligible-unit-sc.aspx

Importer can claim refund of differential customs duty paid if wrong goods supplied to it amp; cheated by exporter: Madras HC

Excise/ST/VAT : Where assessee paid customs duty in advance for import of Remelted Lead Ignots but Chinese exporter cheated assessee and instead of exporting Remelted Lead Ignots had exported pack of caustic soda and chalk powder, assessee was entitled to abandon imported consignment and claim refund of customs duty paid in good faith

from www.taxmann.com Latest Case Laws https://ift.tt/3u04n11

Commission exp. incurred by assessee which results in increase in revenue is allowable as deduction u/s 37

INCOME-TAX : Where the assessee has entered into an agreement for payment of commission both with foreign agent as well as domestic company for the purpose of assessee's business, which were duly signed and accepted by the respective parties and the assessee has also furnished copies of commercial Invoice, confirmation of Accounts, copies of Bank Statement to establish that the payment were made through Banking channel, purchase order copy, copies of sale invoices for commission ,

from www.taxmann.com Latest Case Laws https://ift.tt/2Pxuj52

HC refuses to interfere in order freezing bank accounts and provisional attachment when matter was pending before PMLA Authority

FEMA amp; BANKING: Where current accounts as well as FD accounts of appellant, a public charitable trust, were frozen by respondent banks and an order of provisional attachment had been passed under section 5 of Prevention of Money Laundering Act, 2002, it was held that since matter was pending before Adjudicating Authority under PMLA,

from www.taxmann.com Latest Case Laws https://ift.tt/3u1KnuC

Continuance of employment in two FYs for minimum number of days is sufficient to claim Sec. 80JJAA deduction

INCOME TAX : A software engineer in a software industry is a workman within meaning of section 2(s) of Industrial Disputes Act so long as software engineer does not discharge supervisory role; period of 300 days as mentioned under section 80JJAA can be taken into consideration both in previous year and succeeding year for purpose of availing benefit under section 80JJAA

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

HC justified reassessment as reason recorded by AO is unconnected with issue involved during original assessment

INCOME-TAX : Once competent authority formed an opinion that issue involved during original assessment is unconnected with reasons for reopening of assessment under section 147 , then High Court is expected to be slow in interfering with reopening of assessment and authorities must be provided with opportunity to conduct further adjudication

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

No benefit of Rule 6DD(e) on payment made to labour for cleaning of ponds and farm maintenance

INCOME-TAX : Where assessee-company engaged in business of aqua culture of prawn and prawn seeds, incurred pond and farm maintenance expenses in crores and such expenditure had been paid in cash, since impugned payment had been made to labour for cleaning of ponds ,for JCB baffling charges etc. and not to cultivator ,

from www.taxmann.com Latest Case Laws https://ift.tt/32Ogy4V

Delhi HC dismisses Whatsapp’s challenge against CCI’s probe order into its new privacy policy update

COMPETITION LAW : Mere pendency of a reference before larger bench does not denude other courts of their jurisdiction to decide on lis before them. Similarly, merely because of pendency of above proceedings before Supreme Court and before High Court, Competition Commission cannot be said to be bound to necessarily hold its hands and not exercise jurisdiction otherwise vested in it under statute.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314690/delhi-hc-dismisses-whatsapp’s-challenge-against-cci’s-probe-order-into-its-new-privacy-policy-update.aspx

Reassessment justified if AO formed opinion on basis of tangible material obtained through investigation wing

INCOME TAX : Assessing Officer is entitled to initiate reassessment proceedings on basis of tangible material which comes in his hand, which tends to expose untruthfulness of entry of purchase made in books of accounts.

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

Revised time limits for various compliances under the Income-tax Act

As Covid-19 pandemic raging unabated across the country, the Central Government vide press release, dated 24-04-2021, has decided to further extend the time limits to 30.06. 2021 in the cases where the time-limit was earlier extended to 30.04.2021. The impact of aforesaid press release on various time barring dates notified under TLA Act, 2020 is enumerated in this article

from taxmann.com News https://ift.tt/32JMpnf

Demat a/c frozen by stock exchange under circular dated 11-6-2019 are now required to be defreezed immediately: SAT

COMPANY LAW/SEBI: As a result of failure on part of Company to pay listing fee, stock exchange took recourse to its circular dated 11-6-2019 and took steps to freeze demat accounts of promoter and promoter groups including appellants. Appellant has challenged action of BSE Ltd. (BSE) in freezing demat account and have filed present appeal.

from www.taxmann.com Latest Case Laws https://ift.tt/2Qsl72g

Refund of CENVAT Credit being legitimate export incentive given to exporters can't be denied merely because of implementation of GST: Madras HC

EXCISE/ST/VAT : Refund of CENVAT credit under Rule 5 of CENVAT Rules 2004 read with Notification No.27/2012- CE(NT) dated 18-06-2012 is a legitimate export incentive given to an exporter of service and goods. Therefore, such legitimate export incentive given to exporters of goods or service cannot be denied merely because of intervening changes with the implementation of GST with effect from 1-7-2017

from www.taxmann.com Latest Case Laws https://ift.tt/3tXWkS0

Reassessment justified if AO formed opinion on basis of tangible material obtain through investigation wing

INCOME TAX : Assessing Officer is entitled to initiate reassessment proceedings on basis of tangible material which comes in his hand, which tends to expose untruthfulness of entry of purchase made in books of accounts.

from www.taxmann.com Latest Case Laws https://ift.tt/3dCz4U1

No case of abuse of dominance made out if procurement of country liquor by wholesaler wasn’t preferential

COMPETITION LAW : Where informant engaged in business of manufacturing and trading liquor filed information against OPs who were exclusive licensees for wholesale trade in country liquor within State of Uttar Pradesh alleging contravention of section 4 in relevant market for procurement of country liquor from licensed manufacturers in State of Uttar Pradesh,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314627/no-case-of-abuse-of-dominance-made-out-if-procurement-of-country-liquor-by-wholesaler-wasn’t-preferential.aspx

SAT upholds restraint order passed by SEBI; directs SEBI to pass order after considering forensic reports

COMPANY LAW/SEBI : Where SEBI by impugned order confirmed its exparte order whereby appellant who was Executive Chairman of company along with others was restrained from accessing securities market and was further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further orders,

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

Writ filed by a home buyer without seeking to represent entire class of home buyers wouldn’t be maintainable: SC

COMPANY LAW/RERA : Writ petition under article 32 filed by a singular home buyer without seeking to represent entire class of home buyers would not be maintainable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314599/writ-filed-by-a-home-buyer-without-seeking-to-represent-entire-class-of-home-buyers-wouldn’t-be-maintainable-sc.aspx

SC issues directions for expeditious trial of cases under section 138 of Negotiable Instruments Act

FEMA amp; BANKING: Supreme Court gives directions for expeditious trial of cases under section 138 of Negotiable Instruments Act, 1881

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

Sec. 11 exemption couldn’t be denied merely because audit report was filed belatedly: Guj. HC

INCOME TAX : Assessee, a public charitable trust for past 30 years, who substantially satisfied condition for availing benefit of exemption as a trust could not be denied exemption merely on bar of limitation in furnishing audit report in Form no. 10

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198184/sec-11-exemption-couldn’t-be-denied-merely-because-audit-report-was-filed-belatedly-guj-hc.aspx

No additions in respect of issues that were not covered by reasons recorded for reassessment

INCOME TAX : Where specific subject matter, reasons recorded and notice issued under section 147/148 was with respect to under utilization of income of assessee trust for which there had been no addition made, but Assessing Officer made addition on account of 'anonymous donation' under section 115BBC, Assessing Officer having acted beyond his jurisdiction, Commissioner (Appeals) had rightly directed Assessing Officer to delete addition so made

from www.taxmann.com Latest Case Laws https://ift.tt/3xbf02Y

Sec. 11 exemption couldn’t be denied merely because audit report was filed belatedly

INCOME TAX : Assessee, a public charitable trust for past 30 years, who substantially satisfied condition for availing benefit of exemption as a trust could not be denied exemption merely on bar of limitation in furnishing audit report in Form no. 10

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198184/sec-11-exemption-couldn’t-be-denied-merely-because-audit-report-was-filed-belatedly.aspx

Redemption of Mutual Funds can't be equated with trading; No reversal of Cenvat Credit: BLR Tribunal

EXCISE/ST/VAT : Where appellant only made investments in mutual fund and earned profit from it which was shown in Books of Account under head 'other income', he could not have been termed as 'service provider', hence, department had wrongly invoked provisions of rule 6(3) of Cenvat Credit Rules, 2004 demanding reversal of credit on exempted services

from www.taxmann.com Latest Case Laws https://ift.tt/3v1R7J7

HC justified reassessment initiated on beneficiary of accommodation entry unveiled during search of third party

INCOME TAX : Where assessee was aware that transaction with a company was not business transaction but in form of bogus purchase, it was only an accommodation entries and it was one of beneficiaries of transactions and despite of this, failed to disclose true and correct facts at relevant time, Assessing Officer was entitled to initiate reassessment proceedings

from www.taxmann.com Latest Case Laws https://ift.tt/3ei1CRM

Adjustment is required if rate of dep. adopted by assessee was higher than those adopted by comparable Cos.

TRANSFER PRICING : Where rates of depreciation adopted by assessee were significantly higher from those adopted by comparable companies, suitable adjustment to eliminate differences in accounting policies of assessee and comparable companies had to be made

from www.taxmann.com Latest Case Laws https://ift.tt/3xg1z1R

Asian paints didn’t abuse its dominant position to drive competition out of market, rules CCI

COMPETITION LAW : Informant engaged in business of manufacturing of primers and paints filed information against OP-Asian Paints, a largest manufacturer of paints alleging contravention of provisions of sections 3 and 4 - Informant stated that OP lodged a police complaint against it alleging that informant was selling damaged products saying that it was Asian Paints

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314577/asian-paints-didn’t-abuse-its-dominant-position-to-drive-competition-out-of-market-rules-cci.aspx

Share issue expenses are capital in nature; no deduction allowable under section 37

INCOME TAX : Expenditure incurred by assessee company for public issue of shares was capital in nature and, thus, same could not be allowed under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3v06e5V

Income arising from sale of shares recorded in investment portfolio is taxable as Capital Gains

INCOME TAX : Where assessee purchased shares and recorded same in investment portfolio and frequency of instances of purchase and sale of shares were quite few justifying intention of assessee to purchase shares as capital asset, income arising from sale of such shares was to taxed as 'short-term capital gain' and not as business income

from www.taxmann.com Latest Case Laws https://ift.tt/3duUu5C

Benefit of accumulation of income couldn’t be denied where funds are duly accumulated for main objects of trust

INCOME TAX : Once assessee has accumulated income with a specific purpose and such purpose is specified in main objects of trust, then Assessing Officer cannot deny such accumulation of income merely for reason that purpose specified in Form No. 10 is vague and general in nature

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198075/benefit-of-accumulation-of-income-couldn’t-be-denied-where-funds-are-duly-accumulated-for-main-objects-of-trust.aspx

MCA registers 1.55 lakh company incorporations in FY 2020-21

During the Financial Year 2020-21, Ministry of Corporate Affairs (MCA) registered more than 1.55Lakh company incorporations as compared to 1.22 Lakh companies during FY 2019-20, an increase of about 27%. Similarly, 42,186 Limited Liability Partnerships (LLPs) got incorporated as against36,176 last year, an increase of about 17%.

from taxmann.com News https://ift.tt/3e5rdxk

Lease rental income derived by a developer of SEZ is eligible for section 80-IAB deduction

INCOME TAX : Lease rental income is within contemplation of profits derived by a developer of a SEZ from 'business' of developing it and, thus, eligible for deduction under section 80-IAB

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

MCA registers 1.55 lakh company incorporations in FY 2020-21 during FY 2020-21

During the Financial Year 2020-21, Ministry of Corporate Affairs (MCA) registered more than 1.55Lakh company incorporations as compared to 1.22 Lakh companies during FY 2019-20, an increase of about 27%. Similarly, 42,186 Limited Liability Partnerships (LLPs) got incorporated as against36,176 last year, an increase of about 17%.

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

Reassessment merely on basis of documents accompanying return was unjustified

INCOME TAX : Where assessee came to know that assets purchased under leaseback agreement were non-existent, assessee did not declare any income from lease rental and same was mentioned in notes of accounts of financials accompanying return of income, reopening of assessment by Assessing Officer based only on documents accompanying return of income without discovering any other material indicating that income had escaped tax was to be quashed

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

Merely because SEBI exercises quasi-judicial power in limited form doesn’t mean that it has trappings of Court : SAT

COMPANY LAW/SEBI : Merely because SEBI exercises quasi-judicial power in a limited form and in a limited way does not mean that it has trappings of a court

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314532/merely-because-sebi-exercises-quasi-judicial-power-in-limited-form-doesn’t-mean-that-it-has-trappings-of-court-sat.aspx

No angel tax on issue of shares at face value to shareholders of amalgamating Co.: ITAT

INCOME TAX : Issue of shares at face value by amalgamated company to shareholders of amalgamating company in pursuance to scheme of amalgamation does not fall under section 56(2)(viib)

from www.taxmann.com Latest Case Laws https://ift.tt/3wVDQ6V

Marketing/Support services on P2P basis to group companies can't be treated as Intermediary Services; Qualify as Export of Services

EXCISE/ST/VAT: Marketing/Support services on P2P basis to group companies can't be treated as Intermediary Services; Qualify as Export of Services

from www.taxmann.com Latest Case Laws https://ift.tt/3tm69cu

Prosecution couldn’t be launched unless it is proved that unaccounted transactions were liable for payment of tax

INCOME TAX : In order to render accused/respondent guilty of attempt to evade tax, penalty or interest, it must be shown that he has done some positive act with an intention to evade any tax, penalty or interest

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314558/prosecution-couldn’t-be-launched-unless-it-is-proved-that-unaccounted-transactions-were-liable-for-payment-of-tax.aspx

Every unaccounted transaction won’t lead to imposition of tax, penalty or interest: High Court

INCOME TAX : In order to render accused/respondent guilty of attempt to evade tax, penalty or interest, it must be shown that he has done some positive act with an intention to evade any tax, penalty or interest

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314558/every-unaccounted-transaction-won’t-lead-to-imposition-of-tax-penalty-or-interest-high-court.aspx

There must be an order of AA for filing an appeal u/s 26 of PMLA: PMLA-AT

FEMA, BANKING AND INSURANCE : In terms of section 26 of PMLA there must be an order of Adjudicating Authority by which director or any person aggrieved may prefer an appeal to Appellate Tribunal

from www.taxmann.com Latest Case Laws https://ift.tt/3e4F1Ik

Gain on sale of land taxable as capital gains if assessee's intention wasn't to indulge in adventure in nature of trade

INCOME TAX : Where intention of assessee at time of purchase of property was to construct a house for self occupation and not to indulge in an adventure in nature of trade, gain on sale of land was to be regarded as income under head capital gain

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

Writ petition for computation of refund amount was set aside as alternative remedy was available before assessee

INCOME TAX : Where assessee filed a writ petition raising a dispute regarding computation of amount of tax refund generated by department, assessee was to be directed to avail statutory remedy available in law and, hence, impugned writ petition was to be set aside

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

Development and maintenance of ports fall within meaning of general public utility; Sec. 12A registration allowed

INCOME TAX : Where assessee-trust was engaged in development and maintenance of ports, said activities being in nature of general public utility within meaning of section 2(15), assessee was to be allowed registration under section 12A

from www.taxmann.com Latest Case Laws https://ift.tt/3wR7WIx

No need to issue Sec. 143(2) notice for completion of assessment of third person u/s 153C: HC

INCOME TAX : There is no requirement for a notice to be issued under section 143(2) for completion of an assessment under section 153C and thus, question of adhering to time limit prescribed under proviso to section 143(2) does not arise

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

ITAT granted stay on recovery of demand relating to DDT and interest thereon

INCOME TAX : Where assessee has sought stay on collection/recovery of tax and interest demands in respect of dividend distribution tax, and interest thereon, under section 115-O/115Q, read with section 2(22)(a) on what is termed as a deemed dividend distribution of accumulated profits in course of a demerger transaction which took place in period relating to assessment year 2018-19,

from www.taxmann.com Latest Case Laws https://ift.tt/3wMAx1P

CIT was unjustified in exercising revisionary powers u/s 263 if AO conducted sufficient enquiry

INCOME TAX : Where AO after issuing several notices to assessee and conducting detailed hearings concluded that plots of land were purchased and sold by assessee within maximum period of 20 months and it showed that assessee was engaged in real estate business and, thus, income earned by it on sale of plots of land was to be assessed as business income and not as capital gain, impugned invocation of revision jurisdiction was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3d9d0jD

SEBI cautions investors against impersonation

The SEBI has cautioned investors against impersonations and further advises that Beware of emails / any other communication impersonating employees of SEBI and refrain from responding to such emails / communication. The only official and genuine website of SEBI, where an investor can file his/her complaint is https://scores.gov.in

from taxmann.com News https://ift.tt/32aq3Lu

Compensation for premature termination of lease agreement is deductible exp. under Sec. 37

INCOME TAX : If expenditure already voluntarily disallowed by assessee was found to be reasonable, Assessing Officer in any case could not have resorted to rule 8D

from www.taxmann.com Latest Case Laws https://ift.tt/3e0wJRF

CCI rules out case of abuse of dominant position by ‘CICTPL’ in the relevant market of sea-ports in India

COMPETITION LAW : Where it was alleged that CCTPL being one of terminal operators at Kamarajar Port was dominant in relevant market of provision of common user coal terminal services at sea-ports in and around Kamarajar Port, however, it was found that presence of Krishnapatnam port posed significant competitive constraints on CICTPL, so much so that latter could not be held as dominant. Further, it appeared that users had been using both these ports simultaneously.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314529/cci-rules-out-case-of-abuse-of-dominant-position-by-‘cictpl’-in-the-relevant-market-of-sea-ports-in-india.aspx

Trust receiving capitation fee for admission of students couldn’t be held as running charitable activities

INCOME TAX : Where treasurer and secretary of educational trust had admitted in their statement that trust was collecting capitation fee for admission of students, trust was not entitled for registration under section 12AA as it was not running charitable activities

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198454/trust-receiving-capitation-fee-for-admission-of-students-couldn’t-be-held-as-running-charitable-activities.aspx

No deemed dividend if assessee didn’t get benefit from loans advanced to Co. in which he was substantially interested

INCOME TAX : Where company in which assessee was registered shareholder, advanced loans and advances to other companies in which assessee was holding substantial interest, however, assessee did not get benefit out of such loans and advances, provisions of section 2(22)(e) will not be attracted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198219/no-deemed-dividend-if-assessee-didn’t-get-benefit-from-loans-advanced-to-co-in-which-he-was-substantially-interested.aspx

Assessee couldn’t be said to have earned agricultural income where land taken for said purpose was barren amp; bereft

INCOME TAX : Where assessee showed an agricultural income of certain amount, in view of facts that agricultural land claimed to be taken on lease by assessee for carrying out agricultural activities was barren and bereft of any crops and, further, possession of said agricultural land was never handed over to assessee, thus, he had not performed any agricultural activity, impugned agricultural income shown by assessee was to be added to its taxable income

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198156/assessee-couldn’t-be-said-to-have-earned-agricultural-income-where-land-taken-for-said-purpose-was-barren-amp-bereft.aspx

LLP can form a partnership firm with an individual or person, rules Kerala High Court

The Kerala High Court held that a Limited Liability Partnership can form a partnership with an individual or other persons. “Section 4 of the Partnership Act permits Constitution of a firm or partnership between one or more persons.

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

Implementation of performance based maintenance contract by TN Govt. didn’t amount to abuse of dominant position

COMPETITION LAW : Where informant filed information against OP, a government department, established to maintain and improve roads in Tamil Nadu alleging that OP was slowly changing its general contract system from 'input-based' to 'output-based or performance-based' and imposed unfair conditions in tenders issued by it which made it difficult for small contractors to participate in same,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314498/implementation-of-performance-based-maintenance-contract-by-tn-govt-didn’t-amount-to-abuse-of-dominant-position.aspx

No Sec. 40(a)(ia) disallowances on commission paid in connection with transfer of immovable property

INCOME TAX : Where assessee had sold an immovable property and declared LTCG on same, provisions of section 40(a)(ia) could not be invoked to disallow commission paid by assessee in connection with sale of property

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

No reassessment solely on basis of info. received on account of search conducted in case of a third person : HC

INCOME TAX : Where assessee sold a land to two individuals and declared capital gain of certain amount and AO issued a reopening notice on ground that said land was actually sold to one 'KS' group for sale consideration of much higher amount, since assessee's transaction of sale was with two individuals who later sold land to 'KS' group

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

Literal Rule of Interpretation shall apply in interpreting the Beneficial exemptions: SC Division Bench distinguishes from Dilip Kumar's case

EXCISE/ST/VAT : Exemption allowed on residential accommodation for nuns in hostels attached to educational institutions from Kerala Building Tax

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

Penalty imposed for delay in filing financial without consideration mitigating circumstances was to be set aside

COMPANY LAW/SEBI : Where Adjudicating Officer imposed penalty on appellant for delay in filing half yearly financial results, however, failed to take into consideration mitigating circumstances as a factor while considering imposition of penalty, penalty so imposed being harsh and excessive was to be set aside

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SC upholds HC order, rejects winding up plea against corporate debtor as defence of appellant wasn’t bona-fide

COMPANY LAW : Where there was no bona-fide dispute as such, there was no question of directing the respondent to repay the amount, whether where the appellant had satisfied the respondent's claim to the extent mentioned in the order impugned in the appeal, appeal against corporate debtor for alleged failure to repay debt was to be dismissed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314454/sc-upholds-hc-order-rejects-winding-up-plea-against-corporate-debtor-as-defence-of-appellant-wasn’t-bona-fide.aspx

Exemption allowed on residential accommodation for nuns in hostels attached to educational institutions from Kerala Building Tax: SC

EXCISE/ST/VAT : Exemption allowed on residential accommodation for nuns in hostels attached to educational institutions from Kerala Building Tax

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Automatic vacation of stay granted by ITAT after expiry of 365 days is unconstitutional: SC

INCOME TAX : Third proviso to Section 254(2A), introduced by Finance Act, 2008, resulting in automatic vacation of a stay upon expiry of 365 days even if delay in disposing of appeal is not attributable to assessee, would be both arbitrary and discriminatory and, therefore, liable to be struck down as offending Article 14 of Constitution of India

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Co. was directed to be liquidated when outstanding statutory dues and dues to members were paid off

COMPANY LAW : Where there were no outstanding statutory dues against company and affairs of company were conducted in a manner not prejudicial to interest of members, company was deemed to be dissolved from date of filing of petition under section 497

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Sec. 54 relief couldn’t be disallowed if investment is made by assessee in his wife’s name

INCOME TAX : Where assessee sold a residential house and invested sale consideration in purchase of a plot of land and had carried out construction of a residential house thereon, mere fact that investment in new property was made in name of his wife could not be a reason for disallowance of deduction under section 54 to assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198374/sec-54-relief-couldn’t-be-disallowed-if-investment-is-made-by-assessee-in-his-wife’s-name.aspx

RBI keeps repo rate unchanged at 4%

RBI’s monetary policy committee has decided to keep the repo rate unchanged at 4%. Currently the reverse repo rate is 3.35 % the marginal standing facility rate and the bank rate at 4.25%. Repo rate is the rate at which the RBI lends to banks, while reverse repo rate is the rate at which it borrows from banks.

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Set Com accepting additions during course of hearing to put end to controversy is not illegal

INCOME TAX : Where revenue on basis of valuation report found during search at residence of assessee showing value of jewellery of huge amount filed a report before Settlement Commission that quantum of additional income initially disclosed by assessee before Commission was not true and full disclosure, since during course of hearing before Commission

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Assessee to be allowed manual filing in case there are technical issues to e-file appeals : Madras HC

INCOME TAX : Where there were several technical problems in e-filing of appeals and unawareness about procedure for e-filing appeals among assessees, benefit could be given to assessees for filing manual appeal as right of appeal is a statutory and valuable right and such right should not be denied on technical ground

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Sum already disclosed in regular ITRs are outside the purview of definition of undisclosed income u/s 158BC

INCOME TAX : Where agricultural income earned by assessee had already been disclosed by it in its regular return of income prior to search, Assessing Officer could not make additions under section 158BC in relation to such agricultural income

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Gold and Silver rates as on March 31, 2021

The Gold and Silver rates as on March 31, 2021 are out. The rate of gold (995 standard 24 carats) is Rs. 44,013 per 10 grams and rate of Silver (999) is Rs. 62,862 per 1 Kg.

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Fee received from licencing a fully furnished hotel along with permission to run hotel is a business receipt

INCOME TAX : License fee received by assessee for licensing a fully furnished hotel along with license to run hotel is a business receipt, which is assessable under head 'income from business or profession'

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ITAT justified disallowance as assessee failed to establish that payment was made by due date of filing of ITR

INCOME TAX : Where assessee did not produce any evidence to prove payment of pay interest expenditure claimed by it before filing return of income, AO was justified in disallowing said amount under section 43B

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Govt. takes Ordinance route to amend IBC to include ‘Pre-Packaged Insolvency Resolution Process’

The President has promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021. With a view to introduce a pre-packaged insolvency resolution process for corporate persons classified as MSMEs, ensuring quicker, cost-effective and value maximising outcomes for all the stakeholders in a manner which is least disruptive to the continuity of their businesses and which preserves jobs.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021302/govt-takes-ordinance-route-to-amend-ibc-to-include-‘pre-packaged-insolvency-resolution-process’.aspx

President Promulgates The Tribunals Reforms (Rationalisation And Conditions Of Service) Ordinance, 2

President Promulgates the Tribunals Reforms (Rationalisation And Conditions Of Service) Ordinance, 2021, An Ordinance further to amend the Cinematograph Act, 1952, the Customs Act, 1962, the Airports Authority of India Act, 1994, the Trade Marks Act, 1999 and the Protection of Plant Varieties and Farmers’ Rights Act, 2001 and certain other Acts.

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Claim of bad debts cannot be disallowed if income was duly recorded and offered to tax in earlier year

INCOME TAX : Where assessee claimed bad debt on account of non-recovery of additional cost incurred by it on export of bags to foreign customers, since assessee had credited such amount of additional cost due from customers as income in its books of account and had offered same to tax in earlier years, thus, complied with mandate contained in 36(2), such claim of bad debts on account of additional cost incurred by it was to be allowed

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Forwarding of Co’s financials on WhatsApp as received from other sources wouldn’t amount to insider trading

COMPANY LAW/SEBI : Where despite thorough investigation, SEBI was unable to find source or leakage of information from side of financial, legal or audit team of respective companies, "forwarded as received" WhatsApp message circulated on a group regarding quarterly financial results of a Company closely matching with vital statistics, shortly after in-house finalization of financial results by Company and some time before publication/disclosure of same by concerned Company

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314335/forwarding-of-co’s-financials-on-whatsapp-as-received-from-other-sources-wouldn’t-amount-to-insider-trading.aspx

Threshold limit for TDS to be checked contract wise if assessee entered into separate contract with each transporter

INCOME TAX : Where assessee had not deducted TDS on freight payment made by it to track owners on ground that as it had sub-contracted its work of transportation to small truck owners, who did not employ more than two trucks at any time during year, no TDS deduction under section 194C was required on submission of Form 15-I by sub-contractors to assessee

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Matter remanded back as ITAT failed to deal with issue regarding TDS on payment of stall fees on merits

INCOME TAX : Where Tribunal upheld deletion of disallowance under section 40(a)(ia) on account of stall fees paid by assessee without deducting TDS under section 194I, since Tribunal had not dealt with issue on merit and it had deleted such disallowance in a cryptic and cavalier manner, impugned order was to be set aside and matter was to remanded back to Tribunal to adjudicate appeal on merit

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No addition u/s 56(2) in respect of agricultural land as same is not covered by definition of capital asset

INCOME TAX : Agricultural land purchased by assessee would not be governed by provision of section 56(2)(vii)(b)

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Know about 30 Changes in new ITR Forms for AY 2021-22

The CBDT has notified ITR Forms for the Assessment Year 2021-22. Considering the crisis due to the COVID pandemic, the board has not changed the ITR forms significantly. Most of the new ITR forms changes are consequential to the amendments made by the Finance Act, 2020 to the Income-tax Act. We have scrutinized the new ITR Forms and have identified the key changes in new ITR forms viz-a-viz last year's ITR Forms.

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Sec. 153A notices valid even if Investigating Officer handed over seized doc. to AO beyond prescribed time limit

INCOME TAX : Provisions of section 153B set out limitation by when an order of assessment under section 153A is to be passed as being twenty-one months from end of month when last of the authorizations for search under section 132 or for requisition under section 132A was executed. Period set out under section 132(9A) is a measure to enable respective parties to adhere to process in an orderly fashion facilitating completion of assessment in time.

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No abuse of dominance by ‘IATA’ in market for account settlement services in respect of air cargo segment in India

COMPETITION LAW : Where informant-Air Cargo Agents Association of India filed information against OP, i.e., International Air Transport Association (IATA) alleging contravention of section 4 by unilaterally introducing Cargo Accounts Settlement System (CASS) in India under its 'Resolution 801' under which cargo agents were required to make full payment on stipulated due dates for freight and other dues to all airlines through IATA-CASS office

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314368/no-abuse-of-dominance-by-‘iata’-in-market-for-account-settlement-services-in-respect-of-air-cargo-segment-in-india.aspx

Matter remanded back to determine whether sum advanced to trust having similar object is application of income

INCOME TAX : Where assessee-trust was administering two educational institutions and it gave certain sum to another charitable institution for educational purposes to enable them to construct a building as part of their college and claimed exemption under section 10(23C)(vi) on ground that sum given should be considered as an application for carrying out objects of assessee

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Generating amp; augmenting revenue by exploiting popularity of cricket is not a charitable activity

INCOME TAX : Where activities of assessee cricket association were concentrated towards augmentation of revenue by exploiting popularity of game of cricket and by creating monopoly, such activities could not be said to be of charitable nature, hence, assessee would not be entitled to exemption under sections 11 and 12

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Sum deposited in capital gain scheme is taxable only after expiry of 3 years from date of sale of capital asset

INCOME TAX : Where assessee sold a property and deposited capital gain in capital gain account scheme, her claim for deduction under section 54F was to be allowed and such capital gain amount could only be charged to tax after expiry of three years from date of sale of a property if same was not utilised for construction of new residential house as assessee's income for said third year

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CBDT notifies ITR Forms 1 to 7 for Assessment Year 2021-22

The CBDT has notified the ITR Forms 1 to 7 for the assessment year 2021-22 vide Notification No. 21/2021 in G.S.R 242(E) dated 31-03-2021. ITR-1 shall not be available for return filing if the tax has been deducted under Section 194N. Further, no return filing to be allowed in ITR-1 or ITR-4 if the tax has been deferred in respect of ESOPs allotted by an eligible start-up.

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Assessee eligible for Vivad se Vishwas if prosecution initiated on issue not related to tax arrear: HC

INCOME TAX : Where there was a pending prosecution for assessment year in question on an issue unrelated to tax arrear, holding that an assessee would not be eligible to file a declaration would defeat very purport and object of Vivad se Vishwas Act. Such an interpretation which abridges scope of settlement as contemplated under Vivad se Vishwas Act could not be accepted

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Assessee can’t escape from Sec. 271D penalty by depositing cash loan in bank a/c on same day; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that where director of assessee-company obtained cash in excess of Rs. 20,000 as loan from a financier and deposited same in cash in bank account of company, merely because director took cash loans from financier and deposited it in current account of assessee-company on very same day and assessee utilized it to pay salaries

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197918/assessee-can’t-escape-from-sec-271d-penalty-by-depositing-cash-loan-in-bank-ac-on-same-day-slp-dismissed.aspx

Retrospective effect to amendments can’t be given to make disallowances for non-deduction of TDS

INCOME TAX : No disallowance under section 40(a)(ia) was to be made on account of leased line charges paid by assessee before insertion of amendment covering leased charges within definition of royalty by Finance Act, 2012 though with retrospective effect from 1-6-1976

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197856/retrospective-effect-to-amendments-can’t-be-given-to-make-disallowances-for-non-deduction-of-tds.aspx

Assessee can’t escape from Sec. 271D penalty by depositing from cash loan in bank a/c on same day; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that where director of assessee-company obtained cash in excess of Rs. 20,000 as loan from a financier and deposited same in cash in bank account of company, merely because director took cash loans from financier and deposited it in current account of assessee-company on very same day and assessee utilized it to pay salaries

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197918/assessee-can’t-escape-from-sec-271d-penalty-by-depositing-from-cash-loan-in-bank-ac-on-same-day-slp-dismissed.aspx

Interest on capital amp; remuneration not taxable in hands of partner in absence of proof to indicate actual payment

INCOME TAX : Where reopening notice was issued against assessee partner on ground that amount of interest on capital 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, since there was no material on record to indicate that assessee had actually received any interest or remuneration from firm, impugned reopening notice was unjustified

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No case of anti-competitive practice made out against OP as informant failed to prove alleged cartelization

COMPETITION LAW : Where informant had failed to adduce any material in support of its allegation that insurance companies were using GIC Re (reinsurance company) as a platform to exchange sensitive information, including information on prices which might facilitate price fixing, allegation of cartel arrangement between GIC Re and insurance companies in contravention of section 3 was not made out

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