Co. entitled to claim loss incurred on sale of bonds received as sales consideration for execution of project: HC

INCOME TAX: Where assessee received RBI bond instead of cash as a consideration for project undertaken in Iraq as sub-contractor and incurred loss on sale of bond, since assessee is recording notional loss or profit on revaluation of earlier years as well and considering nature of business assessee has been doing, bonds are rightly treated as current assets in facts and circumstances of case and assessee was entitled to claim loss on sale of RBI bond

from www.taxmann.com Latest Case Laws https://ift.tt/3rRyY0j

No ST leviable on liquidated damages recovered from suppliers for not adhering to time-limits mentioned in contract

EXCISE/ST/VAT : No service tax is leviable on liquidated damages recovered by assessee for not adhering to time-limits mentioned in contract by its suppliers

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

No reassessment if disputed transaction was already considered in block assessment as well in sec. 263 revision: HC

INCOME TAX : Where assessee fully disclosed all material facts related to purchase and lease back transactions of machineries and block assessment order holding depreciation claimed on said machineries as undisclosed income was quashed after considering genuinity of said transactions, there being no fresh tangible material available with Assessing Officer, notice under section 148 could not be issued to examine genuinity of very same lease transactions

from www.taxmann.com Latest Case Laws https://ift.tt/2V5fMjC

No abuse of dominance by Stonex India Ltd. in relevant market of distribution of Laminam sheets in India:CCI

COMPETITION LAW : Where informant purchased Laminam sheets from OP and alleged that OP being sole distributor of Laminam sheets in India was abusing its dominant position in market qua warranty conditions, in view of fact that other than a mere reiteration of dispute clause in information, there was no whisper as to how informant was prejudiced by same, no competition concern could be said to have arisen in information and information was to be closed against OP

from www.taxmann.com Latest Case Laws https://ift.tt/3ffBDf0

Principle of double jeopardy not applicable where proceedings investigated by SFIO and SEBI Act were distinct: SAT

COMPANY LAW/SEBI : Proceedings investigated by Serious Fraud Investigation Office (SFIO) under section 212(2) of Companies Act, 2013 are distinct from proceedings investigated by SEBI under Companies Act and SEBI Act, 1992, hence, even though SFIO was looking into complaint under section 212(2) of Companies Act, proceedings could have been initiated by SEBI; principle of double jeopardy would not be applicable

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

No additions if cash deposits during demonetization was actual cash sales of assessee supported with bills: ITAT

INCOME TAX : Where AO made addition under section 68 on account of huge cash amount deposited by assessee-jeweller in its bank account post demonetization, since assessee had explained source of said cash deposits as sales of jewellery, produced sale bills and admitted same as revenue receipt as well as offered it to tax and assessee also represented outgo of stocks which was matching with sales, impugned addition was to be deleted

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

Key highlights of the Limited Liability Partnership (Amendment) Bill 2021

The Limited Liability Partnership (Amendment) Bill 2021 was introduced in the Rajya Sabha on 29.07.2021. The Cabinet gave its approval to the Amendment Bill on 28.07.2021. The Bill seeks to facilitate greater ease of living to law-abiding corporates and to decriminalise certain provisions of the Act. Key changes as proposed in the bill includes as viz. introduction of concept of ‘small companies’, de-criminalisation of certain offences, empowering Govt. to establish special courts etc.

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

Cabinet nods to the Deposit Insurance (Amendment) Bill allowing bank depositors to get coverage upto

The Union Cabinet has approved of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 to amend the Deposit Insurance and Credit Guarantee Corporation Act, 1961. The Bill seeks to provide support to depositors of stressed banks. The Bill provides holders security of their money by allowing access to up to Rs 5 lakh within 90 days of a bank coming under a moratorium.

from taxmann.com News https://ift.tt/3zQ2K8v

Copy of the LLP (Amendment) Bill, 2021 as introduced in the Rajya Sabha

LLP (Amendment) Bill, 2021 has been proposed to facilitate greater ease of living to law abiding corporates and to decriminalise certain provisions of the LLP Act. The amendment bill seeks to introduce the concept of ‘small LLP’ in line the concept of ‘small companies’ under the Companies Act, 2013. The Bill Empowers Govt. to prescribe ‘Accounting Standards’ and ‘Auditing Standards’ for classes of LLPs. Bill also empowers Govt. to establish ‘special courts’.

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

SAT directs filing of claim against defaulter broker before stock exchange under its bye-laws

COMPANY LAW/SEBI : Where broker is declared a defaulter and his terminals are disabled, then complaint filed by investor against said broker cannot be referred for redressal to Investor Grievance Redressal Committee (IGRC) and only option available is to file a claim under bye-laws of stock exchange

from www.taxmann.com Latest Case Laws https://ift.tt/3j0UprT

Business loss can be set off against income having attributes of business income even if same isn’t assessable under PGBP : HC

INCOME TAX : Assessee was entitled to set off carried forward business loss of earlier years against income declared under head income from capital gains arising out of sale of land along with building and borewell which were business assets of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314694/business-loss-can-be-set-off-against-income-having-attributes-of-business-income-even-if-same-isn’t-assessable-under-pgbp-hc.aspx

HC remanded matter as deduction was allowed by ITAT without verifying documentary evidence of exp.

INCOME TAX : Where assessee failed to produce any documentary evidence to justify its claim for deduction under section 37(1) on account of insurance premium paid on Keyman Insurance policy and Tribunal, without giving any acceptable finding, concluded that said premium paid by assessee should be allowed as business expenditure, impugned order passed by Tribunal was to be set aside and matter was to be remanded

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

No. sec. 263 revision to disallow sec. 10(38) exemption if AO duly verified validity of transaction from share trader: ITAT

INCOME TAX : Where assessee claimed Long Term Capital Gain (LTCG) on sale of shares as exempt under section 10(38) and Assessing Officer had taken note of issue related to suspicious LTCG on shares being raised by Investigation wing and had called for documents from assessee to substantiate genuineness of transaction and assessee had filed certain documents which Assessing Officer in his assessment order had acknowledged to have verified from share trader, impugned order of Assessing Officer all

from www.taxmann.com Latest Case Laws https://ift.tt/3rHD4be

No TDS liability on assessee if provision created during year was later reversed in books of account : HC

INCOME TAX : Where assessee, a subsidiary of Japanese Company, had made provision towards marketing , overseas and general expenses during year and reversal of entry was also made in same accounting year and Assessing Officer held that assessee should have deducted tax at source as per rate applicable along with interest, in absence of any income accruing to anyone under Act, liability to deduct TDS on assessee could not have been fastened

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

MEIS benefit available if goods exported were sent to Free Trade Warehousing Zone which only facilitate exports: Madras HC

FEMA/EXCISE/ST/VAT : R-3, Additional Director General of Foreign Trade, issued scrips under MEIS Scheme - Petitioner made request to Deputy Commissioner of Customs for registration of scrip and to issue a Telegraphic Release Advise (TRA) to petitioner - Said requests were denied - Petitioner is an exporter having manufacturing location has its facility at Taloja, Maharashtra - Invoice has been drawn on UTEXAM at Ireland and supply of consignment was to DHL Logistics,

from www.taxmann.com Latest Case Laws https://ift.tt/3zQ1Wka

No ST on liquidated damages recovered by SAIL from supplier for failure to deliver consignment within delivery schedule

EXCISE/ST/VAT : Where assessee was engaged in manufacture of carbon steel, amount recovered as (1) liquidated damages from supplier for failure to deliver consignment within delivery schedule, (2) forfeiture of Earnest Money Deposit on failure of successful bidders to make full payment and (3) Ground rent recovered for extension of due date payment of full sale value, could not be considered as consideration for "agreeing to the obligation to refrain from an act,

from www.taxmann.com Latest Case Laws https://ift.tt/2Wzi8ry

91% MSMEs were found to be functional during pandemic as per study conducted by NSIC

The Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village Industries Commission (KVIC) to assess the impact of COVID-19 Pandemic on MSMEs. As per the finding, 91% MSMEs were found to be functional and Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units).

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

MoF highlights initiatives taken for development of Small Scale Industries amid pandemic

The Government has taken a number of initiatives to support the MSME Sector in the country, especially in Covid-19 pandemic situation. Some of them are Rs 20,000 crore Subordinate Debt for MSMEs, Rs. 3 lakh crores Collateral free Automatic Loans for business, including MSMEs. Rs. 50,000 crore equity infusion through MSME Fund of Funds and so on.

from taxmann.com News https://ift.tt/3iT4kj6

CIT(A) rightly restricted 6% additions towards bogus purchase as assessee engaged in trading activities: ITAT

INCOME TAX : Where assessee failed to produce any of suppliers to confirm transactions of purchases shown by it, however, at same time, assessee was in possession of purchase invoices and ledger confirmation as well as PAN of suppliers was also placed on record and payment to suppliers was made through banking channels, Commissioner (Appeals) was justified in restricting addition at rate of 6 per cent on account of bogus purchases

from www.taxmann.com Latest Case Laws https://ift.tt/2UZfP0t

No additions if AO failed to contradict assessee’s contention that he didn’t deposit cash in his bank a/c: ITAT

INCOME TAX : Where AO made additions under section 68 in respect of cash deposits in bank account of assessee, since assessee had consistently stated that said amount was not deposited by him and his account was misused by a bank personnel without his authority, further, specific depositing slip of cash was also not under assessee's signatures and revenue had ignored these assertions and had not given any finding on them, matter was to be remanded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315021/no-additions-if-ao-failed-to-contradict-assessee’s-contention-that-he-didn’t-deposit-cash-in-his-bank-ac-itat.aspx

Person who hasn’t drawn cheque can’t be prosecuted for offence u/s 138 of NI Act even in case of joint liability: SC

FEMA, BANKING amp; INSURANCE : Where person who has not drawn cheque he cannot be prosecuted for offence under section 138 of Negotiable Instruments Act even in case of a joint liability

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198659/person-who-hasn’t-drawn-cheque-can’t-be-prosecuted-for-offence-us-138-of-ni-act-even-in-case-of-joint-liability-sc.aspx

Proviso to sec. 2(15) has no role to play once activities of trust fall within ambit of 'Education' u/s 2(15): ITAT

INCOME TAX : Where exemption under section 11 was denied to assessee-trust on ground that it was not engaged in imparting 'education' but in publishing and selling of books and CDs relating to different fields which did not fall within ambit of term 'education', but it was found that assessee-trust was created as a public charitable trust for preservation and promotion of art, culture, literature, science and encouraging creativity and art initiatives and assessee-trust,

from www.taxmann.com Latest Case Laws https://ift.tt/3BVb48C

HC cannot delve into disputed question of facts in exercise of its jurisdiction u/s 482 of Cr.P.C

FEMA, BANKING amp; INSURANCE : High Court, in exercise of its jurisdiction under section 482 of Cr.P.C. cannot go into truth or otherwise of allegations made in complaint or delve into disputed question of facts

from www.taxmann.com Latest Case Laws https://ift.tt/3rIzU75

Assessee should be given opportunity to correct deficiencies found in rectification application filed by him: ITAT

INCOME TAX : Where there were deficiencies in rectification application filed by assessee, defect should have been notified and opportunity to correct same should have been provided

from www.taxmann.com Latest Case Laws https://ift.tt/3x8V3Ze

No sec. 68 additions on share premium if assessee furnished documentary evidences to establish its genuineness: ITAT

INCOME TAX : Where assessee company issued shares at premium and received share capital and share premium of certain amount, since assessee had filed documentary evidences in respect of all share allotees such as copy of PAN, copy of share application, confirmation of receipt of shares, copy of share certificate, copy of ITR acknowledgement, affidavit, bank statement so as to prove identity and creditworthiness of parties and genuineness of transactions,

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

Foreign travel exp. claimed in respect of wife not allowable if wife wasn’t an employee of assessee’s concern

INCOME TAX : Where assessee-proprietor claimed expenditure incurred on foreign travel of his wife in capacity of Marketing Executive of proprietorship concern of assessee, since assessee had failed to prove with relevant documents that his wife was an employee of its proprietary concern and her visit was exclusively for business purpose, impugned expenditure could not be allowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314542/foreign-travel-exp-claimed-in-respect-of-wife-not-allowable-if-wife-wasn’t-an-employee-of-assessee’s-concern.aspx

Reassessment notice issued in name of amalgamating Co. valid if amalgamated Co. duly acknowledge it: Madras HC

INCOME TAX : Where company HCL was amalgamated with assessee company and reopening notice was issued against assessee in name of HCL on ground that as per ITS Data assessee had not reflected purchase of units of mutual funds in its return of income, since offices of both amalgamating company HCL and assessee were on same premises and, further, assessee had duly acknowledged said reopening notice, same could not be set aside on ground that amalgamating company HCL was not in existence

from www.taxmann.com Latest Case Laws https://ift.tt/3iV5OJB

SEBI’s consent is not mandatory for exercising power of compounding under Section 24A: SC

COMPANY LAW/SEBI: SEBI's consent cannot be mandatory before SAT or Court before which proceeding is pending, for exercising power of compounding under Section 24A

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316138/sebi’s-consent-is-not-mandatory-for-exercising-power-of-compounding-under-section-24a-sc.aspx

Karnataka High Court denies to stop investigation against Flipkart under Competition Act

COMPETITION LAW : CCI can direct an enquiry based upon complaint made by informant, if a prima facie case was in existence; an order passed under section 26(1) is an administrative order and no adjudication is done at this stage and, thus, grant of opportunity of hearing is not required while passing an order under section 26(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3i7gJ3S

AO can’t recover taxes from assessee if tax deducted on his income wasn’t deposited by deductor: HC

INCOME TAX : Where 2nd respondent company had deducted tax at source from and out of payments made to assessees but had not paid it to credit of Central Government, assessees could not be saddled with tax liability as it was duty of Income Tax Department to recover such TDS from 2nd respondent company, hence demand notice against assessees to clear arrears of tax purportedly due from them was to be quashed and set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314899/ao-can’t-recover-taxes-from-assessee-if-tax-deducted-on-his-income-wasn’t-deposited-by-deductor-hc.aspx

Society established to promote habitat concept is entitled to grant of sec. 11 exemption: ITAT

INCOME TAX : Where Assessing Officer noted that activities of assessee-society were hybrid, partly covered by provisions of section 11 and partly by principle of mutuality and since assessee was not maintaining separate books of account, income could not be bifurcated under principle of mutuality and entire surplus in Income and expenditure account was treated as taxable income of assessee, since in earlier years,

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

No condonation of delay in filing appeal before ITAT if no medical reports of ill-health were submitted: ITAT

INCOME TAX : Where assessee claimed condonation of inordinate delay of 546 days in filing appeal before Tribunal on ground of his ill-health, since assessee had not submitted any medical report and only one liner application was filed and even in affidavit he had merely stated that due to bad health he could not file appeal, impugned delay could not be condoned

from www.taxmann.com Latest Case Laws https://ift.tt/3i63Xm9

AO can’t make additions related to deposit in Swiss Bank mere relying on info. received from Investigation wing: ITAT

INCOME TAX : Where Assessing Officer on basis of an information received from investigation wing that amount deposited in foreign bank account of deceased father of assessee which was received by assessee as his legal heir was undisclosed to IT authorities of India,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314938/ao-can’t-make-additions-related-to-deposit-in-swiss-bank-mere-relying-on-info-received-from-investigation-wing-itat.aspx

ITAT can’t remand matter back to AO without finding error in approach followed by AO: HC

INCOME TAX : Where Assessing Officer examined and disallowed exemption claimed by assessee under section 10(38) in respect of long-term capital gains arising out of sale of shares on ground that company in which assessee invested was a penny stock company, Tribunal, without finding an error in approach of Assessing Officer could not have remanded back matter to Assessing Officer for fresh consideration

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314910/itat-can’t-remand-matter-back-to-ao-without-finding-error-in-approach-followed-by-ao-hc.aspx

Madras HC directed AO to dispose of assessee's objections against reopening of assessee by passing a speaking order

INCOME TAX : Where AO instead of dealing with objection of assessee against reopening notice issued against it merely informed assessee that reopening notice was issued only after obtaining necessary approval from jurisdictional Joint Commissioner and, hence, reopening was in accordance with law, Assessing Officer was to be directed to dispose of assessee's objections by passing a speaking order

from www.taxmann.com Latest Case Laws https://ift.tt/2UBpsT2

Applicability of IGST levy on re-importation of repaired Aircrafts or its parts: SC admitted Dept. Appeal

EXCISE/ST/VAT : SC admits appeal to decide whether duty of customs referred to in condition of Exemption Notification No. 45/2017-Customs, dated 30-6-2017 would not include integrated tax

from www.taxmann.com Latest Case Laws https://ift.tt/36Yyps0

AO can’t tax incomes which are voluntary disclosed by assessee in statement recorded u/s 132(4): ITAT

INCOME TAX : Where AO made addition on account of difference in value of land owned by assessee as shown by it in its books of account and report of Valuation Officer, since such difference was less than 15 per cent, impugned addition made by AO only on basis of report of Valuation Officer was to be deleted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314248/ao-can’t-tax-incomes-which-are-voluntary-disclosed-by-assessee-in-statement-recorded-us-1324-itat.aspx

Appellant-brokers rightly barred from accessing securities market for 10 yrs for misusing clients securities: SAT

COMPANY LAW/SEBI : Where appellants had misused client securities without consent of clients, transferred securities in their own demat account and, thereafter used funds for various purposes of financing group companies through inter-corporate deposits, fixed deposits, generating income much in excess than permitted, SEBI had rightly prohibited them from accessing securities market, in any manner, for a period of 10 years

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

Applicability of IGST levy on re-importation of repaired Aircrafts or its parts: SC granted stay against Dept. Appeal

EXCISE/ST/VAT : SC admits appeal to decide whether duty of customs referred to in condition of Exemption Notification No. 45/2017-Customs, dated 30-6-2017 would not include integrated tax

from www.taxmann.com Latest Case Laws https://ift.tt/2Tv5it7

ITAT set-aside sec. 263 order as CIT failed to prove that order of AO was erroneous amp; prejudicial to interest of revenue

INCOME TAX : Where Assessing Officer during course of original assessment verified all transactions of purchase/sales/stock of shares in case of assessee and made disallowance under section 14A read with rule 8D(2), Commissioner having failed to make out that order of Assessing Officer was erroneous as well as prejudicial to interest of revenue, order passed under section 263 was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3BArP8W

Auction purchaser was to be relieved from auction process as property wasn’t free from encumbrance

FEMA, BANKING amp; INSURANCE : SLP dismissed against impugned order of High Court holding that since property purchased by auction purchaser was not free from all encumbrances and Gujarat State Sales Tax Department had overriding charge on property, auction purchaser was to be relieved from auction process and part payment made by it for purchase of said property was to be refunded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198293/auction-purchaser-was-to-be-relieved-from-auction-process-as-property-wasn’t-free-from-encumbrance.aspx

No disallowance u/s 40A(3) if ultimate payments made to labours were below threshold limit: ITAT

INCOME TAX : Where AO made disallowance under section 40A(3) in respect of labour charges of Rs. 18 lakhs paid in cash by assessee, in view of fact that payment was not made on a single day to a single person and it was only a transfer entry for labour charges paid to various workmen at site and all payments were below Rs. 20,000 to each individual, impugned disallowance under section 40A(3) was to be deleted

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

Sec. 11 exemption to be denied only be to extent of income which was violative of section 13(1)(d): HC

INCOME TAX : Denial of exemption under section 11 should only be to extent of income which was violative of section 13(1)(d) and not total denial of exemption under section 11

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

Income from sale of saplings and seedlings grown in nursery is deemed to be agricultural income: ITAT

INCOME TAX : Income derived by assessee through activities other than sale of plants raised in its own nursery was not in nature of agricultural income falling within definition of section 2(1A), Explanation 3

from www.taxmann.com Latest Case Laws https://ift.tt/3wZ4H0z

AO can’t adjust refund with outstanding demands of prior years without intimating assessee about it: HC

INCOME TAX: Where there was no intimation under section 245 was given to assessee before making an adjustment of refund for relevant assessment year 2019-20 against demand of tax outstanding for assessment years 2007-08 and 2008-09, impugned order was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314972/ao-can’t-adjust-refund-with-outstanding-demands-of-prior-years-without-intimating-assessee-about-it-hc.aspx

No disallowance just because vouchers produced by assessee as proof were handwritten: HC

INCOME TAX : Assessing Officer could not have made ad hoc disallowance for transportation charges on ground that vouchers were self made/hand written, without assigning specific reason for any voucher; matter was remanded for de novo consideration after a thorough verification of all documents

from www.taxmann.com Latest Case Laws https://ift.tt/3hRTGd3

HC admits ‘Tata Comm.’ writ challenging constitutional validity of issuing reassessment notice under old provisions

INCOME TAX : Where assessee challenged constitutional validity of section 3 of TLA Act, 2020 and Notification No. 20/2021, dated 31-03-2021 issued thereunder contending that even though section 148 was substituted by Finance Act, 2021 w.e.f. 1-4-2021, TLA Act, 2020 allowed revenue to issue reassessment notice under old provisions of section 148, notice was to be issued to revenue and Attorney General of India

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316026/hc-admits-‘tata-comm-’-writ-challenging-constitutional-validity-of-issuing-reassessment-notice-under-old-provisions.aspx

Issue of sec. 148 notice under old provisions; Calcutta HC admits writ challenging validity of TLA Act, 2020

INCOME TAX : Where assessee filed writ petition on ground that impugned reassessment notice was issued invoking section 3(1) of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TLA Act, 2020) without following mandatory statutory obligations under section 148A as inserted by Finance Act, 2021 with effect from 1-4-2021, matter was to be listed

from www.taxmann.com Latest Case Laws https://ift.tt/2Us7Ys9

CBDT can’t reject condonation application without considering documents furnished by Co. citing reasons for delay

INCOME TAX : Assessee company filed its return of income after a delay - It sought for condonation of delay on ground that internal disputes and prolonged litigation between promoters and investors concerning very management of assessee had led to delay in statutory audits and other compliances, which was beyond control of assessee - CBDT rejected said application for condonation of delay on ground that delay was not caused by any external factors which assessee had no control over - On writ,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316014/cbdt-can’t-reject-condonation-application-without-considering-documents-furnished-by-co-citing-reasons-for-delay.aspx

Delhi HC set-asides assessment order as no show cause notice cum draft assessment order was served on assessee

INCOME TAX : Where no show cause notice cum draft assessment was served on assessee in Faceless Assessment proceedings, impugned assessment order issued under section 143(3), read with sections 143(3A) and 143(3B), along with accompanying notice of demand issued under section 156 and notice for initiation of penalty proceedings issued under section 270A were to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3zjP3ON

Assessee can raise contention before ITAT without filing cross-objections on issues related to question of law: HC

INCOME TAX : Where Tribunal in impugned order had come to conclusion that issues raised in cross objection were legal issues, Tribunal should not have stopped assessees from raising issue in appeals instituted by revenue, without necessity of filing any cross objections

from www.taxmann.com Latest Case Laws https://ift.tt/3BmqB18

HC justified reassessment as notice handed over to tenants who later forwarded it to assessee was valid act

INCOME TAX : Where assessee filed a writ petition on ground that reassessment order passed against it by AO without serving reopening notice upon it was void, since revenue contended that ITO had issued reopening notice to assessee and it had also submitted report of ITO that he visited last known address of assessee to verify address of assessee and found that tenants living on that address were forwarding reopening notices against assessee received by them to assessee,

from www.taxmann.com Latest Case Laws https://ift.tt/3rn04fF

Partner’s share in firm’s profit is exempt to extent sum credit to capital account: ITAT

INCOME TAX : Share income from firm received by partner would be exempt under section 10(2A) and under no circumstances could be taxed in hands of partner

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314685/partner’s-share-in-firm’s-profit-is-exempt-to-extent-sum-credit-to-capital-account-itat.aspx

ST leviable on Venture Capital Funds established as trust amp; rendering portfolio management services to non-contributors

EXCISE/ST/VAT : Where Venture Capital Funds (VCFs) established as trust were managing funds of contributors and thereby rendering service to contributors in view of fact that they had violated principles of mutuality by concerning themselves in commercial activities and had discretion over distribution of dividend/profit to entities other than subscribers, they could no longer be treated as trusts for purposes of taxation statutes and thus,

from www.taxmann.com Latest Case Laws https://ift.tt/3rnOS2r

Advertising, Marketing and promotion ('AMP') expenses incurred by Importer not required to be added in value of imported goods; Appeal dismissed by SC

EXCISE/ST/VAT : Appeal against Tribunal's order holding that marketing, advertising, sponsorship and promotional expenses/payments made by importer-distributor to promote foreign sports brand being not a condition of sale of such goods by foreign company, were not liable to be included in value of imported goods, dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/3rmySO0

Advertising, Marketing and promotion ('AMP') expenses incurred by Importer not required to added in value of imported goods; Appeal dismissed by SC

EXCISE/ST/VAT : Appeal against Tribunal's order holding that marketing, advertising, sponsorship and promotional expenses/payments made by importer-distributor to promote foreign sports brand being not a condition of sale of such goods by foreign company, were not liable to be included in value of imported goods, dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/3inN2ua

Burden of proof would be on accused under NI Act that cheque wasn’t issued to discharge any debt: SC upholds HC’s order

FEMA, BANKING amp; INSURANCE : Where respondent filed complaint against appellant on ground that cheque issued by appellant to discharge enforceable liabilities had been dishonoured and appellant failed to rebut presumption that cheques were issued for consideration, High Court had not committed any error in convicting appellant for offence being committed under section 138

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198684/burden-of-proof-would-be-on-accused-under-ni-act-that-cheque-wasn’t-issued-to-discharge-any-debt-sc-upholds-hc’s-order.aspx

Income from developing, operating, and maintaining lanes on National Highway qualify for Sec. 80-IA relief: HC

INCOME TAX : Where assessee company was given contract by National Highways Authority of India (NHAI) for developing, operating and maintaining two new lanes on national highway as well as operating and maintaining existing four lanes on highway, income derived by assessee from developing, operating and maintaining all six lanes on highway would qualify for deduction under section 80-IA

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

Service Tax not leviable on secondment of employees: Comm. Appeal Jaipur

EXCISE/ST/VAT : Commissioner Appeal Jaipur held that no Service Tax would be levied on reimbursement made by the Indian Company to its parent company for employee secondment. It was held that there exists an employer and employee relationship between the seconded employee and Indian Company and thus the same is out of the meaning of services as defined under section 65B(44) of the Finance Act, 1994 and thus not exigible to Service Tax

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

AO can’t deny legitimate exp. of business simply because assessee has changed its method of accounting: ITAT

INCOME TAX : Assessing Officer cannot deny deductions for legitimate expenses incurred in course of business of assessee, if such expenses are otherwise allowable under Act, for simple reason that assessee has changed its method of accounting, more particularly when assessee has explained reasons for change in method of accounting

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198865/ao-can’t-deny-legitimate-exp-of-business-simply-because-assessee-has-changed-its-method-of-accounting-itat.aspx

Reassessment to deny sec. 80-IA relief on ground that assessee was contractor and not developer is change of opinion: HC

INCOME TAX : Where assessee-company while filing return of income had clearly disclosed that he was a developer and engaged in development of infrastructural facilities including laying of roads and National Highways, buildings, etc. and assessment was also made on that basis allowing deduction under section 80-IA to assessee,

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

HC directs RoC to provide opportunity of being heard to petitioner before calling for inspection of books account

COMPANY LAW : Registrar of Companies (RoC) has power to call for information, inspection of books, and to conduct an inquiry, however, RoC would have to first call upon company to give an explanation and also provide them a reasonable opportunity of being heard before, issuing show cause notices

from www.taxmann.com Latest Case Laws https://ift.tt/3zgK3L1

Uber not in a dominant position as there is highly competitive market for radio taxi services in Delhi-NCR: CCI

COMPETITION LAW : In highly competitive market for radio taxi services in Delhi-NCR, with fluctuating market shares of Uber and Ola,

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

Delhi HC set-aside order passed by National faceless assessment Centre without issuing draft assessment order

INCOME TAX : Where assessment order was passed without issuing a show cause notice-cum-draft assessment order to assessee, same being contrary to provisions of section 144B, impugned assessment order issued under section 144, read with Section 144B as well as demand notice issued under section 156 and notice for initiating penalty proceedings issued under sections 270A and 271AAC(I) were to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3esVrv6

Partner of a firm not liable for cheque dishonouring without firm being arraigned as an accused: HC

FEMA amp; BANKING : If cheque had been issued by firm which was subsequently dishonoured, a partner of firm would not be liable for prosecution under section 138 without firm being arraigned as an accused

from www.taxmann.com Latest Case Laws https://ift.tt/3wGgd0E

AO can’t cancel registration unless trust not carrying on activity as per its objects: ITAT

INCOME TAX : Where Commissioner held that by virtue of second proviso to section 2(15) as assessee’s threshold limit of turnover exceeded sum of Rs. 10,00,000, assessee was hit by provisions of section 2(15), and thus, objects of assessee were no longer charitable and, accordingly, cancelled registration granted to it w.e.f. 1-4-2009, since there was no dispute with regard to genuineness of activities and there was no finding that assessee was not carrying out activities as per objects of trust,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198835/ao-can’t-cancel-registration-unless-trust-not-carrying-on-activity-as-per-its-objects-itat.aspx

Consent of unitholders of Mutual Fund Scheme must if majority directors of trustee-Co. decide to wind up scheme: SC

COMPANY LAW : Consent of unitholders of Mutual Fund Scheme would be necessary if majority of directors of trustee company decide to wind up a scheme; however, power conferred under Regulation 39(2)(a) to Trustee to decide whether or not a scheme should be wound up is constitutionally valid

from www.taxmann.com Latest Case Laws https://ift.tt/3z4kqNo

HC quashed reassessment proceedings initiated pursuant to notice which wasn’t received by assessee

INCOME TAX : Where reopening notice issued against assessee on ground that income in respect of capital gain from sale of land had escaped assessment was not received by assessee as Assessing Officer had despatched said notice to address at village where such land sold was situated and not to residence of assessee, impugned reopening proceedings initiated against assessee pursuant to said notice was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315035/hc-quashed-reassessment-proceedings-initiated-pursuant-to-notice-which-wasn’t-received-by-assessee.aspx

Switches and routers being part of peripherals of computer system are entitled to 60% dep. : HC

INCOME TAX : Switches and routers being part of peripherals of computer system entitled to depreciation at rate of 60 per cent

from www.taxmann.com Latest Case Laws https://ift.tt/3eniZS0

IBBI cancel registration of Registered Valuer for concealment of pending criminal proceeding

COMPANY LAW : Where 'G' was granted registration as valuer by IBBI but 'G' concealed information of pendency of criminal proceedings against him, registration of 'G' as Registered Valuer was to be cancelled for violation of rule 3 of Companies (Registered Valuers and Valuation) Rules, 2017

from www.taxmann.com Latest Case Laws https://ift.tt/3B54CMd

SEBI rightly imposed penalty on appellant for indulging in self trade and synchronised trades in scrip of Co.: SAT

COMPANY LAW/SEBI : Where from nature of transactions it was evident that appellant had indulged in execution of self trades and synchronized trades in scrip of company, penalty on appellants for violation of Regulations 3 and 4 of PFUTP Regulations had rightly been imposed

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

Petition couldn’t seek implementation of ‘One Time Settlement Scheme’ on failing to pay 5% upfront amount: HC

FEMA, BANKING amp; INSURANCE : Where respondent bank offered One Time Settlement (OTS) scheme to petitioner, however, petitioner had not even paid 5 per cent upfront amount within time stipulated in OTS, it would not be entitled to seek for implementation of said scheme

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315123/petition-couldn’t-seek-implementation-of-‘one-time-settlement-scheme’-on-failing-to-pay-5-upfront-amount-hc.aspx

Amendment by FA 2021 disallowing employee’s contribution to ESI/PF is applicable prospectively: ITAT

INCOME TAX : Where ESI/PF contribution received from employees has been deposited by assessee - Employer before due date of filing section 139(1) return but after due date prescribed in corresponding statutes and Assessing Officer added said amount to income of assessee as per provisions of section 36(1)(va),

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315956/amendment-by-fa-2021-disallowing-employee’s-contribution-to-esipf-is-applicable-prospectively-itat.aspx

HC slams CIT for initiating revision to correct claim of sec. 10B deduction as same was never claimed by assessee

INCOME TAX : Where proceedings under section 263 were initiated by Commissioner on ground that deduction under section 10B had been allowed without excluding other incomes, but it was found that in assessment order passed under section 143(3), Assessing Officer had categorically stated that assessee had not claimed deduction under section 10B, finding of Commissioner that assessee had claimed deduction under section 10B was factually incorrect and, thus revision was not justified

from www.taxmann.com Latest Case Laws https://ift.tt/2Ta3be4

Assessee has statutory right to personal hearing; failure to grant would vitiate assessment order: Delhi HC

INCOME TAX : Assessee has a statutory right to personal hearing under section 144B(7)(vii); Where there was a substantial variation made by AO in taxable income of assessee, assessee ought to have been granted a personal hearing in matter, failure to grant a personal hearing had vitiated impugned assessment order and thus, impugned assessment order was to be set aside

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

Society can’t seek retrospective registration by filing amended bye-laws as amended bye-laws operate prospectively: HC

INCOME TAX : Where application for registration under section 12AA was rejected because deed/bye-laws of society did not have necessary clauses mandatory for granting registration and later society sought for retrospective registration by filling amended bye-laws, such amendments would only operate prospectively while granting registration under section 12AA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198444/society-can’t-seek-retrospective-registration-by-filing-amended-bye-laws-as-amended-bye-laws-operate-prospectively-hc.aspx

HC convicts accused for dishonouring of cheque issued towards purchase of diesel fuel from complainant

FEMA amp; BANKING : Where appellant/complainant had proved guilt of accused for offence under section 138 when cheque issued by accused towards purchase of diesel fuel from complainant was dishonoured on presentation for encashment, accused was rightly convicted by Trial Court for offence under section 138

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

Non-furnishing of basis of additions with faceless assessment order is violation of principle of natural justice: HC

INCOME TAX : Where basis of addition was not furnished to assessee, there being violation of principle of natural justice as provided in section 144B, assessment order passed under section 143 by NFAC was to be set aside

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

NFAC to issue draft assessment order if disproportionately high demand raised in comparison to earlier AYs: HC

INCOME TAX : Where in assessment order passed for current assessment year, huge demand raised by National Faceless Assessment Centre (NFAC) was not only disproportionately high in comparison to earlier assessment years but was also prejudicial to interests of assessee, requirement of section 144B(1)(xvi) for triggering procedure of first preparing a draft assessment order and providing it to assessee for its response would stand attracted

from www.taxmann.com Latest Case Laws https://ift.tt/3Bc29zA

HC set-aside faceless assessment order as it was passed without issuing draft assessment order

INCOME TAX : Where assessment order was passed without issuing a mandatory draft assessment order or a show cause notice to assessee, same being contrary to statutory scheme, as provided in Section 144B, impugned assessment order issued under section 144, read with Section 144B as well as demand notice issued under section 156 and notice for initiating penalty proceedings issued under sections 270A and 271AAC(I) were to be set aside

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

Madras HC set aside non-speaking order of AO directing assessee to pay 20% of demand immediately

INCOME TAX: Where assessee filed an application before Assessing Officer for stay of recovery of demand who held assessee to be in default and directed it to pay 20 percent of demand immediately for stay and informed assessee that in event of non-compliance, necessary follow up action would be taken, since Assessing Officer had passed a non-speaking order, same was to be set aside and matter was to be remanded

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

Statutory auditor appointed by CAG can’t be terminated without opportunity of hearing: Gujarat HC

COMPANY LAWS : Where Camp;AG informed respondent-corporation about appointment of a Chartered Accountant firm as statutory auditor for state police housing corporation, it could not be terminated without prior notice; Camp;AG ought not to have blindfoldedly accepted say/complaint of State Government and it should have first put said firm to notice and should have given an opportunity of hearing

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315887/statutory-auditor-appointed-by-cag-can’t-be-terminated-without-opportunity-of-hearing-gujarat-hc.aspx

Validity of CBDT’s notification extending time to issue Sec. 148 notice after 31-03-2021 challenged before HC

INCOME TAX : Assessee has challenged the validity of CBDT's Notification No. 20/2021, dated 31-03-2021, issued in exercise of the powers conferred by section 3(1) of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TLA Act, 2020). Said notification has allowed revenue to issue reassessment notice under old provisions of section 148 after 31-03-2021.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315906/validity-of-cbdt’s-notification-extending-time-to-issue-sec-148-notice-after-31-03-2021-challenged-before-hc.aspx

No prosecution proceedings against directors as Co. paid 80% of tax dues prior to filing of complaint: Gujarat HC

INCOME TAX : Where accused-company had voluntarily declared its intention to pay tax and 80% of tax was paid prior to filing of complaint for offence punishable under section 276C(2) and accused-company had stated reasons for delay and expressed readiness to pay balance of tax due, complaint filed against directors of accused-company for offence punishable under section 276C(2), read with section 278E, were to be quashed and set aside

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

Payment of speed money to workers to get work completed quickly allowable as business exp.: High Court

INCOME TAX : Where assessee claimed expenditure towards speed money paid by it to workers on port for speedy completion of work, since payment of speed money was a trade practice which was followed by assessee and similar business concerns for speedy completion of their work, same was to be allowed and, thus, impugned disallowance of 10 per cent of such expenditure was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3ARaE2R

Crypto Bill likely to be presented in Monsoon Session

The Finance Minister revealed that India’s crypto bill is ready to be presented during the Parliament Monsoon Session as the country is keen to regulate crypto coins. The government has taken involvements from industry stakeholders to prepare the draft bill. The FM’s disclosure comes after continued enquiries regarding India’s crypto bill, which has been in the works for over two years now.

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

HC issues notice to revenue to take necessary steps as refund due to Co. was granted to another Co. erroneously

INCOME TAX : Where tax refund due to assessee-company was erroneously refunded to another company instead of assessee, notice was to be issued to department

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

Inordinate delay in filing appeal against AA’s order for SAST violations without sufficient cause to be rejected: SAT

COMPANY LAW/SEBI : Where Adjudicating Authority passed order imposing penalty upon appellants for violating regulation 11(2) of takeover code and appeal against said order had been filed after delay of 577 days along with application seeking condonation of delay, and no sufficient cause for delay had been given in application, said application seeking condonation was to be rejected

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198516/inordinate-delay-in-filing-appeal-against-aa’s-order-for-sast-violations-without-sufficient-cause-to-be-rejected-sat.aspx

Offsprings of criminals can’t be allowed to enjoy fruits of their material sins under PMLA: Madras HC

FEMA amp; BANKING : People indulge in criminal activities for various reasons, one of which, is to amass wealth for themselves and their descendants and PML Act seeks to send a stern warning to criminals that it would neither allow them nor their offspring to enjoy fruits of their material sins and that State would not only appropriate ill-gotten wealth, but would also punish those who are found in possession and enjoyment of such tainted wealth

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198215/offsprings-of-criminals-can’t-be-allowed-to-enjoy-fruits-of-their-material-sins-under-pmla-madras-hc.aspx

Indexed cost of asset acquired in inheritance to be computed by taking year in which it was held by previous owner: HC

INCOME TAX : While computing capital gains arising on transfer of a capital asset acquired by assessee by inheritance, indexed cost of acquisition has to be computed with reference to the year in which previous owner first held asset and not year in which assessee became owner of asset.

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

SAT restrains MDs of a company from accessing security market for fraudulently issuing GDRSs

COMPANY LAW/SEBI : Where appellant company had issued GDRs which were fully subscribed by single entity Vintage, issue of GDRs was vitiated by fraud as Vintage took a loan from foreign bank for which appellant company provided security in form of Pledge Agreement and, therefore, managing director of appellant company were restrained from accessing security market for violation of regulations 3 and 4 of PFUTP Regulations

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

Advance for share application money can’t be treated as loan just because shares were allotted after delay of 6 months: ITAT

INCOME TAX : Where assessee was not in receipt of any exempt income during year under consideration, no disallowance was warranted under section 14A, read with rule 8D, of Rules under normal provisions as well as while computing income under section 115JB

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000195972/advance-for-share-application-money-can’t-be-treated-as-loan-just-because-shares-were-allotted-after-delay-of-6-months-itat.aspx

Compensation awarded under Motor Vehicle Act taxable in hands of legal heirs even if no TDS was deducted: HC

INCOME TAX : Where motor accident compensation amount was awarded to 5 legal heirs of deceased, same was to be bifurcated amongst all legal heirs and spread over to financial years from period when amount would accrue

from www.taxmann.com Latest Case Laws https://ift.tt/3xCka7P

No denial of Sec. 11 exemption to trust if running hostel for its dental college was statutory obligation: HC

INCOME TAX : Where assessee trust was running a dental college and was also running and managing hostel for residence of students admitted in said college, since, activity of running hostel was not a separate business activity, surplus income from hostel fee could not be treated as profit and gains of a separate business or commercial activity of trust, hence, exemption under section 11(1) could not have been disallowed to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3e0LLb6

HC rejects writ plea as petitioner unconditionally withdrew PIL having same grievance w.r.t. violation of SEBI

COMPANY LAW/SEBI : Where grievance of petitioner as regards violation of SEBI Act in PIL as well as writ petition were same and petitioner had unconditionally withdrawn PIL, writ petition could not be entertained and same was to be dismissed

from www.taxmann.com Latest Case Laws https://ift.tt/3jW831u

Order passed by CIT(A) without providing hearing opportunity is in contravention of principal of natural justice: HC

INCOME TAX : Commissioner (Appeals) is to decide application of stay considering two questions whether assessment is unreasonably high pitched and whether petitioner is put to genuine hardship because of such assessment and where Commissioner (Appeals) without providing an opportunity of hearing to petitioner had passed order declining stay without considering contentions raised by petitioner, said order was in contravention of principles of natural justice and was liable to be set aside

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

Draft assessment order not reaching a logical conclusion can’t form a reason for reopening assessment: HC

INCOME TAX : Failure to arrive at a logical conclusion in a Section 144C proceeding cannot become ruse for initiating proceedings under section 147/148 in absence of new material emerging before AO which gives AO reason to believe that assessee's income chargeable to tax had escaped assessment

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315827/draft-assessment-order-not-reaching-a-logical-conclusion-can’t-form-a-reason-for-reopening-assessment-hc.aspx

Offence u/s 8 of Prevention of Corruption Act would be triable by Special Court u/s 33(1)(a) of PMLA:HC

FEMA, BANKING AND INSURANCE : Section 44(1)(a) of PMLA expressly provides that scheduled offence and an offence punishable under section 4 of PMLA shall be triable by Special Court constituted for an area in which offence had been committed; therefore, where petitioner was being tried for an offence under section 8 of Prevention of Corruption Act, which was a scheduled offence, said offence would be triable by a Special Court, PMLA in terms of clause (a) of section 44(1) of PMLA

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

HC upholds validity of Regulation 15A of SEBI Investor Advisors norms which provides for mode of charging fee to clients

COMPANY LAW/SEBI : Board (SEBI) having express power to regulate working of Investment Advisors under section 11(2)(b) of SEBI Act which encompasses measures to provide for manner of charging of fees as well as cap of fees and thus, insertion of Regulation 15A to SEBI (Investment Advisors) Regulations, 2013 is clearly within delegation made in favour of the Board under section 30(1) of SEBI Act; Regulation 15A of SEBI (Investment Advisors) Regulations,

from www.taxmann.com Latest Case Laws https://ift.tt/3jSXSL9

No denial of Sec. 11 exemption to trust if surplus earned on running and managing hostel for its dental college: HC

INCOME TAX : Where assessee trust was running a dental college and was also running and managing hostel for residence of students admitted in said college, since, activity of running hostel was not a separate business activity, surplus income from hostel fee could not be treated as profit and gains of a separate business or commercial activity of trust, hence, exemption under section 11(1) could not have been disallowed to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3hLZ2VZ

Offence u/s 8 of Prevention of Corruption Act would be traible by Special Court u/s 33(1)(a) of PMLA:HC

FEMA, BANKING AND INSURANCE : Section 44(1)(a) of PMLA expressly provides that scheduled offence and an offence punishable under section 4 of PMLA shall be triable by Special Court constituted for an area in which offence had been committed; therefore, where petitioner was being tried for an offence under section 8 of Prevention of Corruption Act, which was a scheduled offence, said offence would be triable by a Special Court, PMLA in terms of clause (a) of section 44(1) of PMLA

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

HC can’t interfere with SCN issued by revisional authority as hearing opportunity was granted to assessee

INCOME TAX : Where matter is at stage of show-cause notice and Commissioner has proposed to revise assessment order and for that purpose, objections of assessee are invited and, thus, opportunity of hearing is also to be granted to assessee, there is no reason to interfare with show cause notice issued by revisional authority

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198700/hc-can’t-interfere-with-scn-issued-by-revisional-authority-as-hearing-opportunity-was-granted-to-assessee.aspx

Actuarial valuation as per insurance Act, 1938 shall be base for computing taxable income of Life Insurance Co.: ITAT

INCOME TAX : Where reasons communicated to assessee for reopening assessment were incomplete and nowhere in reasons recorded, failure on part of assessee to furnish full and true information necessary for purpose of assessment was mentioned, entire reassessment proceedings being void ab initio were to be set aside

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

Delhi HC orders reactivation of DIN/DSC of directors of defaulting Cos. to allow them to start a new business

COMPANY LAW : Where petitioners were disqualified directors of struck off companies seeking appointment as directors in other/new companies, their DIN/DSC ought to be reactivated to enable them to conduct their fresh business in accordance with law

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

Sec. 153C notices issued to ‘Karti P.Chidambaram’ valid as no mala fide/lack of jurisdiction was established: HC

INCOME TAX-I : The Madras High Court has quashed the writ-petition filed by the assessee-Karti P.Chidambaram against the Show Cause Notice (SCN) issued under section 153C by the Assessing Officer. The Court held that a writ may be entertained if the SCN was issued without jurisdiction or on malafide grounds. In the given case, no malafide or lack of jurisdiction was identified or established by the assessee, and thus, the point raised in this regard stands rejected

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315828/sec-153c-notices-issued-to-‘karti-p-chidambaram’-valid-as-no-mala-fidelack-of-jurisdiction-was-established-hc.aspx

Legal and professional expenses incurred for pursuing scheme of demerger was allowable u/s 35DD

INCOME TAX : Where one of undertakings of demerged company i.e. NIIT Ltd. was transferred to assessee, legal and professional expenses incurred by assessee for pursuing said scheme of demerger was allowable under section 35DD

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

NCLT is not empowered to dispense with holding shareholders’ meetings u/s 230 (1) of the Cos. Act, 2013

COMPANY LAW : NCLT is not empowered to dispense with holding of shareholders' meetings under section 230(1) of Companies Act, 2013 in case compromise or make arrangements with creditors and members

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315787/nclt-is-not-empowered-to-dispense-with-holding-shareholders’-meetings-us-230-1-of-the-cos-act-2013.aspx

Exp. incurred by MRF on establishing foundation to give training to pace bowlers allowable as business exp.: HC

INCOME TAX : Where assessee, manufacturer of sports products, claimed an expenditure towards establishing a pace foundation for giving training to pace bowlers, since assessee got huge publicity by training of bowlers through said foundation and it promoted assessee's brand thereby helping in sale of products, impugned expenditure was to be allowed under secion 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/2SSGU4t

No need to capitalized exp. incurred on renovation of power transmission lines to claim deduction u/s 80-IA: HC

INCOME TAX : Where assessee power distribution company undertook substantial renovation and modernization of existing power distribution lines, there was no requirement of capitalization of said expenditure in books of account and to complete renovation in relevant previous year to claim deduction under section 80-IA(4)(iv)( c)

from www.taxmann.com Latest Case Laws https://ift.tt/3hms8wd

No reassessment to disallow deduction if all relevant material were available before AO during original assessment: HC

INCOME TAX : Where AO issued a reopening notice against assessee on ground that deduction under section 80-IA(4)(iv) claimed and allowed on generation and sale of steam by assessee was to be disallowed, since all relevant material in relation to issue of deduction in respect of steam power generation was available on record before AO during original scrutiny assessment and there was no omission or failure to disclose truly and fully all primary material facts by assessee,

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

Acquisition of a Co. by a listed entity becomes a UPSI under the prohibition of insider trading norms: SAT

COMPANY LAW/SEBI : 100 per cent acquisition of a company directly or indirectly by a listed entity, irrespective of its value and size is a material event and becomes an Unpublished Price Sensitive Information (UPSI) under PIT regulations thereby making it obligatory on listed entity to close trading window during UPSI period

from www.taxmann.com Latest Case Laws https://ift.tt/3hJH7zc

Convenience fee charged by PVR from customers for online booking of movie tickets does not fall under OIDAR services: CESTAT

EXCISE/ST/VAT : Where dominant intention for charging fees, is to grant facility of online booking of movie tickets and not for access/retrieval of any data or information, such service would not fall under category of "online information and database access retrieval system" as defined under section 65(75) of the Finance Act,1994

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

Conduct of ‘Quality Council of India’ wasn’t abusive on training of personnel working in laboratories: CCI

COMPETITION LAW : Where informant filed information against OP-QCI which was parent body of National Accreditation Board for Testing and Calibration Laboratory (NABL) alleging that on account of fraudulent misrepresentation on part of NABL, all consumer/government departments were asking NABL accreditation as per ISO-17025 for purchasing laboratory services,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315799/conduct-of-‘quality-council-of-india’-wasn’t-abusive-on-training-of-personnel-working-in-laboratories-cci.aspx

Educational trust’s philanthropic donations to other charitable amp; religious institutions eligible for exemption: HC

INCOME TAX: Where Public Charitable Trust, doing educational services, gave donations to charitable and religious institutions for philanthropy only, exemption under section 11 cannot be denied merely because it was donating to 'activities other than education'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315785/educational-trust’s-philanthropic-donations-to-other-charitable-amp-religious-institutions-eligible-for-exemption-hc.aspx

Exp. incurred on transportation for shifting factory from one site to another is allowable as revenue exp.: ITAT

INCOME TAX : Where assessee had not reported income received by it from a company in its Pamp;L account, and, hence, it could not be said that its books of account were prepared in accordance with Part II and II of Schedule - VI to Companies Act, Assessing Officer was justified to re-compute book profit under section 115JB of assessee by making addition towards said income not reported in books of account of assessee

from www.taxmann.com Latest Case Laws https://ift.tt/2V6Hzjj

Fresh claim before Appellate Authority is admissible even same wasn’t claimed in ITR: Karnataka HC

INCOME TAX : Assessee's fresh claim before appellate authority is entertainable even when same is not claimed in original return of income nor assessee has filed revised return of income to make such claim

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314214/fresh-claim-before-appellate-authority-is-admissible-even-same-wasn’t-claimed-in-itr-karnataka-hc.aspx

CCI takes suo moto action against anti-competitive conduct of ‘Goa Taxi Union’ towards app-based Tax

In this significant case, the CCI, in the year 2018, suo-moto took up a case against ‘Goa tourist taxi unions’ based on newspaper reports regarding alleged concerted action on their part to prevent the entry of app-based taxi aggregator companies in the State of Goa. the CCI concluded that there was no case of contravention of the provisions of Section 3(1) of the Act read with Section 3(3) against any of the OPs and directed that matter be closed immediately

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021441/cci-takes-suo-moto-action-against-anti-competitive-conduct-of-‘goa-taxi-union’-towards-app-based-taxi-aggregators.aspx

Enforcement of disqualification of directors u/s 164, would cover the financial year 2014-15 and thereafter : HC

COMPANY LAW : Disqualification under section 164 for not submitting financial statements and returns for a consecutive period of three years would be applicable from financial year 2014-15 and thereafter and thus, where directors of various companies were disqualified by RoC for default in submitting financial statements and returns for three consecutive years commencing from financial year 2013-14, such order of disqualification was to be quashed

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

Monetary incentive paid by State Co-op. Bank to District bank amp; Co-Operative Societies allowable as deduction : SC

INCOME TAX : Monetary incentive provided by assessee-cooperative bank to its members was an allowable expenditure

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

Commission paid to agents allowable even if transaction was cancelled and couldn’t be completed

INCOME TAX : Where earnest money paid as advance by assessee, engaged in business of real estate, for purchase of lands was forfeited by sellers as assessee failed to pay balance consideration, since said payment of earnest money was made by assessee in course of its business of real estate and, said earnest money was forfeited resulting into business loss of assessee, same was to be allowed under section 28(i)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314982/commission-paid-to-agents-allowable-even-if-transaction-was-cancelled-and-couldn’t-be-completed.aspx

TPO cannot decide whether expenses incurred by assessee were necessary or not for business: ITAT

INCOME TAX : Where loan to foreign company was granted by Rabobank London from funds in its balance sheet and after borrowings from market and in syndication with other members and no part of loan was funded by assessee or any entity acting on behalf of assessee which showed that assessee was only instrumental in originating transaction for extending credit facility and assessee forwarded opportunity to RaboBank London,

from www.taxmann.com Latest Case Laws https://ift.tt/3hyUL8b

Investment Advisers cannot manage funds, securities on the client’s behalf: SEBI

SEBI in an interpretative letter has clarified that Investment advisers (IA) cannot manage funds as well as securities on behalf of their clients and should not contemplate about asking power of attorney (PoA) in this regard. SEBI said such advisers can only provide investment advice to clients. In a letter to SEBI, an IA had asked, whether its clients can at their volition grant a PoA to Waterfield authorising it to make enquiries concerning to the clients' accounts with the custodian.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021439/investment-advisers-cannot-manage-funds-securities-on-the-client’s-behalf-sebi.aspx

Loss suffered on account of foreign exchange difference is expenditure allowable u/s 37(1): ITAT

INCOME TAX : Loss suffered by an assessee on account of foreign exchange difference is an item of expenditure under section 37(1), therefore, addition on account of unrealized hedging loss on forward contracts made by Assessing Officer was to be deleted

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

Investment Advisers to render investment advice to clients and not manage funds, securities on their

SEBI in an interpretative letter has clarified that Investment advisers (IA) cannot manage funds as well as securities on behalf of their clients and should not contemplate about asking power of attorney (PoA) in this regard. SEBI said such advisers can only provide investment advice to clients. In a letter to SEBI, an IA had asked, whether its clients can at their volition grant a PoA to Waterfield authorising it to make enquiries concerning to the clients' accounts with the custodian.

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

AO can’t examine whether co-operative society doing business as per its bye-laws to allow Sec. 80P relief: HC

INCOME TAX : Revenue could not go behind registration certificate of co-operative society and examine its activities to determine its true nature; where assessees have been registered as co-operative credit societies, their accepting deposits from non-members does not disqualify them from claiming benefits under section 80P

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315744/ao-can’t-examine-whether-co-operative-society-doing-business-as-per-its-bye-laws-to-allow-sec-80p-relief-hc.aspx

Loss incurred on foreign exchange cannot be treated as speculative loss within meaning of sec. 43(5): ITAT

INCOME TAX : Where loss incurred on foreign exchange was neither speculative loss within meaning of section 43(5), nor same was notional or contingent in nature, same being loss on foreign exchange derivatives was to be allowed

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

ITAT cannot remand matter back to AO if CIT(A) duly considering evidence placed on record before allowing relief: HC

INCOME TAX : Where Assessing Officer had disallowed claim for deduction under section 80JJAA on ground that relevant details regarding same were not placed before AO but were claimed by way of a communication , since claim was otherwise sustainable in law, appellate authority was empowered to allow same

from www.taxmann.com Latest Case Laws https://ift.tt/3AnDxU2

Investment Advisors to render investment advice to clients and not manage funds, securities on their

SEBI in an interpretative letter has clarified that Investment advisers (IA) cannot manage funds as well as securities on behalf of their clients and should not contemplate about asking power of attorney (PoA) in this regard. SEBI said such advisers can only provide investment advice to clients. In a letter to SEBI, an IA had asked, whether its clients can at their volition grant a PoA to Waterfield authorising it to make enquiries concerning to the clients' accounts with the custodian.

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

Writ petition challenging levy of ST on composite contract of civil construction not entertainable: Madras HC

EXCISE/ST/VAT : ONGC Civil Contractors Association filed a writ petition on ground that sections 65(30a), 65(105)(zzq), 66 and 67 of Chapter V of Finance Act, 1994 are arbitrary and unconstitutional, insofar as, they attempt to levy service tax on composite contract of civil construction of materials supplied and labour in its entirety - It was noted that several developments took place with reference to provisions of amended Service Tax Act and now,

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

Retail and wholesale trades are allowed to register on Udyam Registration Portal

The Minister of MSME and Road Transport and Highways has announced revised guidelines for MSMEs with inclusion of Retail and Wholesale trades as MSMEs. The revised guidelines will benefit 2.5Crore Retail and Wholesale Traders. In addition, the retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines.

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

Penalty imposed on stock broker for violating code of conduct was set aside after it gave all info sought by SEBI

COMPANY LAW/SEBI : Where appellant had provided all relevant information as sought for by Adjudicating Officer of Securities and Exchange Board of India, penalty imposed upon appellant for violating clause A(2) of Code of Conduct for stockbrokers as specified under Schedule II read with regulation 9 of Stockbrokers Regulations was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3AgVP9z

Revision u/s 264 can be exercised even if time limit for filing appeal hasn’t expired: Bombay HC

INCOME TAX : Section 264 can't be interpreted to mean that for CIT to exercise his powers of revision , not only time for filing appeal should have expired but also that assessee should have waived his right of appeal

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314771/revision-us-264-can-be-exercised-even-if-time-limit-for-filing-appeal-hasn’t-expired-bombay-hc.aspx

Registration can’t be denied if carrying out operations outside India were ancillary to main object of trust: ITAT

INCOME TAX : Application of income outside India is not a relevant criteria for rejecting application for grant of registration under section 12AA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314380/registration-can’t-be-denied-if-carrying-out-operations-outside-india-were-ancillary-to-main-object-of-trust-itat.aspx

Mere writing off outstanding interest on advances paid to subsidiary as irrecoverable is sufficient to claim deduction

INCOME TAX : Where assessee-company wrote off outstanding interest on advances paid to its subsidiary as irrecoverable when net worth of subsidiary eroded, assessee's claim of bad debt was to be allowed without expecting assessee to prove that debts had actually become bad

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

HC permits assignee of debt of liquidating co. to proceed against assets by standing outside winding up proceedings

FEMA amp; BANKING : Where applicant acquired debts of company in liquidation from bank, applicant was to be permitted to proceed against assets of company-in-liquidation as secured to it by standing outside winding up proceedings

from www.taxmann.com Latest Case Laws https://ift.tt/3yh0PsU

No case of anti-competitive conduct by Taxi Unions in Goa against issue of guidelines permitting Taxi app aggregators

COMPETITION LAW : Where State of Goa took a policy decision and issued guidelines titled as "Guidelines for Taxi Operator/ Radio Taxis/ Rent A Car and Taxi App Aggregators in State of Goa" by which app-based taxi aggregators like OLA and Uber had been permitted to operate and had been allowed to have range bound dynamic pricing, which was on lines of business model of OLA amp; Uber, it was held that no case of contravention of provisions of Section 3 was made out against OPs,

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

Notice can’t be issued to bank to seize accounts if assessee already deposited 20% of demand: Bombay HC

INCOME TAX : Where revenue already had amount earlier deposited by assessee with Commissioner (Appeals) in relation to earlier Assessment year which corresponded to more than 20 per cent of demand amount for relevant assessment year, issuance of impugned notice to assessee's bank to recover demand amount was not justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197697/notice-can’t-be-issued-to-bank-to-seize-accounts-if-assessee-already-deposited-20-of-demand-bombay-hc.aspx

Co. would be eligible to reduce losses forming part of books of account while computing book profit for MAT: ITAT

INCOME TAX : Losses (both cash loss and depreciation loss) would continue to remain in books of account till it is wiped off by earning profits by assessee company and, accordingly, same would be available for reduction from book profits under section 115JB

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

Transitional provisions under SCMTR Regulation 15(2) further extended till 31st July 2021 to enable

CBIC has issued Notification No. 56/2021 -Customs (N.T) dated 30.06.2021 to further extend the transitional provisions of Sea Cargo Manifest and Transhipment Regulations (SCMTR), 2018, till 31st July 2021 to enable submission of manifests under erstwhile regulations and to enable carriers continue mandatory filing on parallel basis.

from taxmann.com News https://ift.tt/3jxC1c6

ITAT deleted sec. 68 additions as investors had sufficient net worth to make investments

INCOME TAX : Where assessee-company received share capital/share premium from various entities and assessee had submitted share application form, copy of share certificates, copy of board resolution, certificate of incorporation etc. with respect to all investor entities and all investor entities had sufficient net worth to make investment in assessee-company, additions made to income of assessee as unexplained cash credit under section 68 were to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/2UKYh7J

HC convicts accused u/s 138 for dishonouring cheque issued against refund of amount accepted for sale of land

FEMA amp; BANKING : Where accused accepted an amount from complainant for purchase of land but there was wo such land and cheques issued by accused for refund were dishonoured, accused was to be convicted for offence under section 138

from www.taxmann.com Latest Case Laws https://ift.tt/3yb7JQq