NFRA seeks stakeholders' comments on the removal of statutory audit for Medium and Small Cos.

National Financial Reporting Authority (NFRA) has issued a consultation paper on Statutory Audit and Auditing Standards for Micro, Small, and Medium Companies (MSMCs). NFRA has sought public comments on as to whether Micro, Medium, and Small Companies be exempted from statutory audits based on threshold criteria. The last date for receipt of the comments is 10 November 2021.

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Refund of unutilized Cenvat credit can't be denied as facility was not available to debit amount and file ER-2 Return after GST implementation: CESTAT

EXCISE/ST/VAT : Refund of unutilized Cenvat credit can't be denied as facility was not available to debit amount and file ER-2 Return after GST implementation

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Reassessment to enquire about source of fund valid as assessee not filing ITR purchased property of huge amount: HC

INCOME TAX : Where assessee filed no return for year under consideration while AO found that assessee had purchased immovable property and she had earned interest from mutual funds as also receipt of premia from Insurance company,

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Assessee to approach AO for treating it as assessee not being in default in respect of amount disputed in appeal: HC

INCOME TAX : Where petitioner-society had filed an appeal before Faceless Appeal Centre regarding disallowance of benefits available under sections 11 and 12 and same was pending, until said appeal was decided, demand made in this regard by Assessing Officer which included amount otherwise to be exempted for relevant assessment year in so far as claim of exemption made under benefit of sections 11 and 12, may not be considered to be a tax in default and therefore,

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No independent finding by AO is required if reassessment proceedings were initiated on direction of CIT(A): HC

INCOME TAX : Where Assessing Officer passed reassessment order on direction of Commissioner (Appeals) to assess undisclosed income in hands of assessee's HUF and exclude same from hands of assessee as an individual since as per Explanation 2 to section 153, such an assessment would be deemed to be made in consequence of or to give effect to any finding or direction contained in appellate order to invoke such reassessment proceedings no independent finding was required

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Reassessment to enquire about source of fund valid as assessee purchased property of huge amount but didn’t file ITR: HC

INCOME TAX : Where assessee filed no return for year under consideration while AO found that assessee had purchased immovable property and she had earned interest from mutual funds as also receipt of premia from Insurance company,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315821/reassessment-to-enquire-about-source-of-fund-valid-as-assessee-purchased-property-of-huge-amount-but-didn’t-file-itr-hc.aspx

NFRA issues consultation Paper on Statutory Audit and Auditing Standards for MSMCs

The NFRA has prepared a Consultation Paper on Statutory Audit and Auditing Standards for MSMCs explaining the issues involved and providing the data and information required for responding to the questions raised in an informed manner, with the objective to seek the comments/suggestions of the wider stakeholder group and the public at large on questions raised. The last date for receipt of comments is 10 November, 2021.

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Writ filed to recall amalgamation order dismissed as petitioner wasn’t aggrieved and was indulged in forum shopping

COMPANY LAW : Where applicant filed PIL and writ petition to recall order for amalgamation of respondent company on ground of fraud and collusions in view of fact that on same core issue applicant had also filed complaints before various forums, wherein, said complaints were dismissed as applicant was not an aggrieved person and that applicant had unconditionally withdrawn PIL, it could be said that applicant was indulged in forum shopping and thus,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314643/writ-filed-to-recall-amalgamation-order-dismissed-as-petitioner-wasn’t-aggrieved-and-was-indulged-in-forum-shopping.aspx

AO can’t withhold refund merely because assessee declared huge income in immediately preceding year; SLP dismissed

INCOME TAX : SLP dismissed due to delay against High Court ruling that where assessee filed its return declaring loss and claimed refund of entire amount of tax paid at source, merely because in immediately preceding assessment year assessee had declared a positive income as against substantial loss declared in relevant assessment year, it could not be a ground to doubt contents of return or claim of assessee with respect to loss suffered and withhold refund claimed by assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316585/ao-can’t-withhold-refund-merely-because-assessee-declared-huge-income-in-immediately-preceding-year-slp-dismissed.aspx

No employer-employee relationship exists if doctors were paid on basis of number of patients attended: ITAT

INCOME TAX : Where remuneration paid to consultant doctors engaged by assessee-hospital varied from month-to-month owing to services rendered and number of patients attended by them and, further, these doctors were not entitled to any leave, provident fund, gratuity, bonus etc. and were not subject to retirement from services, said doctors could not be construed as employees of assessee-hospital and, consequently, payment made to them attracted section 194J and not section 192

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Sum reflected in Form 26AS can’t be taxed unless it was established that assessee was actual beneficiary: ITAT

INCOME TAX : Where a payment was reflected in Form-26AS and was shown to have been made to assessee, it could not be brought to tax if it could not be established that assessee was actual beneficiary of said payment

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315842/sum-reflected-in-form-26as-can’t-be-taxed-unless-it-was-established-that-assessee-was-actual-beneficiary-itat.aspx

Key highlights of SEBI’s Board Meeting held on 28.09.2021

The SEBI Board held its meeting in Mumbai on 28.09.2021. The key decisions taken by the Board include as viz. i) Approval of framework for Gold Exchange and SEBI (Vault Managers) Regulations, 2021, ii) Clearing of the framework for Social Stock Exchange, iii) Review of delisting framework pursuant to open offer, iv) Review of certain provisions related to Superior Voting Rights Share framework, and v) Review of regulatory provisions on Related Party Transactions.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021547/key-highlights-of-sebi’s-board-meeting-held-on-28-09-2021.aspx

Interest at 12% allowed for amount paid under protest as it is neither pre-deposit nor service tax: CESTAT

EXCISE/ST/VAT: Where any amount was paid under protest, it is neither pre-deposit nor service tax; it is only a deposit made by appellant and since said amount was retained by revenue without any authority of law as appellant was not liable to pay service tax, appellant is entitled to claim interest from date of deposit till its realisation at rate of 12 per cent per annum

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NCLT allows consolidation of share capital of applicant-Co. as it was approved by 99.86% of shareholders

COMPANY LAW : Where more than 99.86 per cent shareholders of applicant-company were in favour of consolidation of shares and valuation of shares had been done by registered valuers and appropriateness of value had been confirmed by a SEBI approved valuer, consolidation of share capital of applicant-company was to be confirmed

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Pre-arrest bail denied to petitioners-directors as Co. was involved in cheating depositor through Ponzi schemes

FEMA, BANKING amp; INSURANCE : Where Saradha Group of Industries was involved in cheating large number of gullible depositors though different ponzi schemes and money trail of said ponzi company was found with petitioner's and custodial interrogation of petitioner would throw more light regarding involvement of many influential people in commission of such economic offence, application by petitioner for grant of pre-arrest bail was to be dismissed

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Delhi HC set-asides assessment order as assessee didn’t file his reply due to non-working of e-filing portal

INCOME TAX : Where assessee failed to file reply to notice-cum-draft assessment order served upon him proposing an addition of huge amount as portal of assessee was not working between 1-6-2021 and 17-6-2021 i.e. last date for filing reply to said order,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316466/delhi-hc-set-asides-assessment-order-as-assessee-didn’t-file-his-reply-due-to-non-working-of-e-filing-portal.aspx

Sum reflected in Form 26AS can’t be tax unless it was established that assessee was actual beneficiary: ITAT

INCOME TAX : Where a payment was reflected in Form-26AS and was shown to have been made to assessee, it could not be brought to tax if it could not be established that assessee was actual beneficiary of said payment

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315842/sum-reflected-in-form-26as-can’t-be-tax-unless-it-was-established-that-assessee-was-actual-beneficiary-itat.aspx

ITAT remanded matter as AO made sec. 68 additions without considering confirmation letter from payer Co.

INCOME TAX : Where Assessing Officer treated cash deposits in assessee's bank account as unexplained investment under section 69 without considering letter from payer company evidencing nature of payments made to assessee, since nature of transaction was verifiable, disallowance was to be set aside and matter was to be remanded

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No assessment based on documents found during survey of third person if such docs. don’t contain assessee’s name: ITAT

INCOME TAX : Where pursuant to search/survey at business premises of one BRG Infra, certain documents were found and Assessing Officer recorded his satisfaction that these documents belonged to assessee and action under section 153C was taken, however, said documents were unnamed, action under section 153C on basis of these documents was not justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315999/no-assessment-based-on-documents-found-during-survey-of-third-person-if-such-docs-don’t-contain-assessee’s-name-itat.aspx

Government extended the existing FTP 2015-20 for further 6 Months

The existing Foreign Trade Policy which is valid up to September 30, 2021 is extended by the Government for further 6 months up to March 31, 2022.

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Refund sanctioned after relying on judicial legal precedents and clarifications issued by Board can't be termed as erroneous refund: CESTAT

EXCISE/ST/VAT : Freight includible in assessable value when point of sale is buyer's premises

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SEBI was justified in imposing penalty on cos. for violation of non-disclosure of FCCBs: SAT

COMPANY LAW/SEBI : Where appellant, director of company 'P', had failed to disclose about non-redemption of FCCBs to Stock Exchange, appellant had violated clause 21 and clause 36 of Listing Agreement and, imposition of penalty upon appellant by Stock Exchange for said violation was justified; this will be so irrespective of fact that amendment in terms of FCCB redemption was notified to stock exchange

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M2M loss arising on valuation of forward contract on closing date of accounting year allowable as business loss: ITAT

INCOME TAX : Where assessee-company had entered into forward contracts as a hedge against fluctuation in foreign currency rates and had been following mercantile system of accounting and accounting standards-11 over years, applying closing rate of foreign currency at year end, marked to market loss arising on valuation of forward contract on closing date of accounting year was to be allowed as business loss under section 28(i)

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AO can’t disallow entire dep. and incidental expense if car was purchased by Co. in name of director: ITAT

INCOME TAX : Where assessee company was not a shareholder in company from which it had received loan, such loan amount could not be treated as deemed dividend under section 2(22)(e) in hands of assessee merely because there were common shareholders in payer and payee company

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316040/ao-can’t-disallow-entire-dep-and-incidental-expense-if-car-was-purchased-by-co-in-name-of-director-itat.aspx

Plausible view taken by AO can’t be considered erroneous or prejudicial to interest of revenue; SLP dismissed

INCOME TAX : SLP dismissed against impugned order passed by High Court holding that where assessee-company had received unsecured loans from two different companies and Assessing Officer had made inquires in detail and accepted genuineness of same, such view of Assessing Officer being a plausible view could not be considered erroneous or prejudicial to interest of revenue

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316642/plausible-view-taken-by-ao-can’t-be-considered-erroneous-or-prejudicial-to-interest-of-revenue-slp-dismissed.aspx

HC directed revenue to grant one day personal hearing to assessee for establishing genuineness of transaction

INCOME TAX : Where assessment order was passed in Faceless Assessment scheme by making addition under section 68 in respect of unsecured loan, and assessee submitted that though notices have been given and response have been received from assessee through documents produced to establish that transactions in question was genuine transaction, but he missed to seek a chance of personal hearing, since chance of getting a personal hearing is part and parcel of principles of natural justice,

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Petitioner-borrower to approach DRT u/s 17 for his grievance against bank taking steps to sell secured asset

FEMA amp; BANKING : Where bank had taken measures under section 13 of SARFAESI Act and petitioner-borrower sought for writ of mandamus for bank to accept one time settlement figure, petitioner was directed to approach DRT in terms of section 17 for its grievance against bank taking steps to sell secured asset

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SLP dismissed against ruling allowing higher dep. on dumpers as assessee was providing vehicles on hire

INCOME TAX : SLP dismissed against impugned order of High Court holding that where assessee-company engaged in providing equipment for mining and motor vehicles for hire had received contracts which included transportation of excavated minerals, higher rate of depreciation claimed on dumpers at rate of 30 per cent was to be allowed

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Reassessment to seek explanation on source of payment for purchase of house justified as assessee had negligible income

INCOME TAX : Where asseesee claimed and allowed exemption under section 54 and a reopening notice was issued against him on ground that payment for purchase of a new house property by assessee was made prior to sale of his existing house property and source for payment for purchase of new house property was not explained, thus, such unexplained investment made in new house property for claiming exemption under section 54 was to be taxed under section 69,

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Bombay HC quashes Faceless Assessment order as mandatory draft assessment order not issued to assessee

INCOME TAX : Faceless Assessment Scheme, 2019 provides that where a modification is proposed in assessment order, National e-Assessment Centre shall provide an opportunity to assessee by serving a notice calling upon him to show cause as to why assessment should not be completed as per draft assessment order, hence, where assessee's request for personal hearing had been ignored and mandatory draft assessment order had not been issued to assessee, thus,

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CCI imposes hefty penalties on UBL, Carlsberg and SAB Miller for engaging in cartelization

COMPETITION LAW : Where information was filed against OPs, i.e., United Breweries, SAB Miller and Carlsberg alleging cartelisation in relation to production, marketing, distribution and sale of Beer in India, it was held that OPs were exchanging their actual Beer production, revenue details, targets,

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Pre-decisional hearing before proposing conduct of special audit u/s 142(2A) is required; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that Assessing Officer is required to give pre-decisional hearing to assessee before making order proposing conduct of special audit under section 142(2A); in absence of pre-decisional hearing, decision to have special audit would be invalid

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Income from sale of ‘Jaggery’ converted from own grown sugarcane cannot be treated as agricultural income: HC

INCOME TAX : Where assessee harvested sugarcane on his land and converted it into jaggery for sale in market, since such conversion of sugarcane into jaggery was not essential to make sugarcane marketable and there was more profit in making it as jaggery and selling, profit from sale of jaggery would not be considered as agricultural income

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315774/income-from-sale-of-‘jaggery’-converted-from-own-grown-sugarcane-cannot-be-treated-as-agricultural-income-hc.aspx

Criminal proceedings on appellant for failing to appoint a woman director to be quashed: HC

COMPANY LAW : Where complaint was lodged by Deputy Registrar of Companies against appellant for non-appointment of Woman Director in company and it was held liable to be punished under section 172 of Companies Act, 2013, however, petitioner submitted that he had resigned from Directorship in company at relevant time and had no control over affairs relating to company thereafter

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Execution of sale deed of new house within limitation period is sufficient to claim benefit of sec. 54F relief: HC

INCOME TAX : Where sale deed was executed in favour of assessee within a period of three years from date of transfer of shares, finding recorded by Tribunal that payments were made prior to one year before date of transfer of shares and, therefore, assessee was not entitled to claim exemption under section 54F was perverse

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No interest disallowance if assessee has sufficient interest free funds to make investments in subsidiary: HC

INCOME TAX : Where Assessing Officer made disallowance of interest expenditure under section 36(1)(iii) on ground that assessee utilized borrowed capital for making investment in its foreign subsidiaries, since assessee's own funds were far in excess of such investment made by assessee, it was to be presumed that investments were made from interest free funds available to assessee, thus, impugned disallowance was to be set aside

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Secured debt would have priority over the ‘Government’ dues/tax under the Income Tax Act

FEMA, BANKING amp; INSURANCE: Charge of secured creditor would have priority over Government dues under Income Tax Act

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316221/secured-debt-would-have-priority-over-the-‘government’-duestax-under-the-income-tax-act.aspx

Gujarat HC remanded matter back as SEBI failed to fix liability on writ-applicant

COMPANY LAW : SEBI found that schemes floated by applicant company squarely fell within definition of Collective Investment Scheme as defined under section 11AA of SEBI Act and several complaints had been made by investors to effect that company was not redressing grievances of investors with regard to return of dues and accordingly an order was passed by SEBI

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CIT(A) to pass order for all AYs in respect of which common grounds of appeal were filed: ITAT

INCOME TAX: Where grounds of appeal were common for AY 2013-14 and 2014-15 and Commissioner (Appeals) has passed a combined order for both assessment years, however in order Commissioner (Appeals) has only dealt with AY 2013-14 and has omitted to mention/adjudicate issues raised in AY 2014-15, matter was to be remanded back to file of Commissioner (Appeals) to pass a speaking order on issues, which were raised before him but have not been adjudicated by him

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AO can’t reduce sum waived by seller from WDV of machinery after lapse of several AYs: ITAT

INCOME TAX : Where assessee purchased certain plant and machinery items during year 2003 and thereafter a sum payable to seller (SS) which was waived off by SS in year 2006 but assessee continued to claim depreciation on gross value of block of plant and machinery which included amount waived and depreciation was claimed during all succeeding years from 31-3-2006

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317127/ao-can’t-reduce-sum-waived-by-seller-from-wdv-of-machinery-after-lapse-of-several-ays-itat.aspx

Madras HC remanded matter back as SEBI failed to fix liability on writ-applicant

COMPANY LAW : SEBI found that schemes floated by applicant company squarely fell within definition of Collective Investment Scheme as defined under section 11AA of SEBI Act and several complaints had been made by investors to effect that company was not redressing grievances of investors with regard to return of dues and accordingly an order was passed by SEBI

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Presiding Officer/Judicial members can decide on appeal filed before SAT even if technical member is not available

COMPANY LAW/SEBI : Since SAT performs Judicial functions, it is mandatory for SAT to be manned by Judicial member and thus, even though a Technical member is not available, Bench consulting Presiding Officer and Judicial Members can proceed to hear and decide appeals filed before SAT

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Exp. incurred under statutory obligation to be allowed as deduction even if same doesn’t fall u/s 37(1): HC

INCOME TAX : Where it was statutory obligation of assessee co-operative bank to contribute to 'common good fund', 'special assistance fund', etc., amount expended on funds will be allowable as deduction while computing income of assessee co-operative bank, even when said expenditure did not come under section 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316002/exp-incurred-under-statutory-obligation-to-be-allowed-as-deduction-even-if-same-doesn’t-fall-us-371-hc.aspx

AO can’t change method adopted by assessee while doing fresh valuation of shares to make additions u/s 56(2)(viib): ITAT

INCOME TAX : Where Assessing Officer made additions under section 56(2)(viib) after fresh valuation of shares adopting different method (NAV) from that adopted by assessee (DCF method), since Assessing Officer was entitled to scrutinize valuation report and determine fresh valuation but without changing method of valuation opted by assessee, impugned addition was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315749/ao-can’t-change-method-adopted-by-assessee-while-doing-fresh-valuation-of-shares-to-make-additions-us-562viib-itat.aspx

Co. eligible to claim dep. amp; other exp. incurred on car even if it was purchased in name of director: ITAT

INCOME TAX : Where assessee company was not a shareholder in company from which it had received loan, such loan amount could not be treated as deemed dividend under section 2(22)(e) in hands of assessee merely because there were common shareholders in payer and payee company

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CCI penalises beer companies for indulging into cartelisation

The Competition Commission of India (‘CCI’) has passed a final order against three beer companies for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India, including through the platform of All India Brewers’Association (‘AIBA’).

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Petition challenging 'Second Sale notice' was dismissed as guarantor had many opportunity to redeem mortgage

FEMA, BANKING amp; INSURANCE : Appellant stood as a guarantor in respect of loan taken by borrower company and mortgaged four properties - Due to non-payment of loan, bank took symbolic possession of mortgaged properties - Thereafter, auction sale notice was issued - Before DRT,

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Courts can’t issue omnibus Order to reform the system on basis of petition raising concern over rising number of NPAs

COMPANY LAW : Where petitioner filed writ petitions referring to a general malaise in economy of inability to recover debts due to banks and financial institutions, particularly of nationalised bodies,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317111/courts-can’t-issue-omnibus-order-to-reform-the-system-on-basis-of-petition-raising-concern-over-rising-number-of-npas.aspx

Cable operators providing services to subscribers on basis of signals received from MSO are eligible to avail SSI exemption: CESTAT

EXCISE/ST/VAT : Cable operators providing cable services to subscribers on basis of signals received from MSO not providing branded service and eligible to avail SSI exemption under Notification No.6/2005-ST

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HC directed AO not to take any action against assessee as hearing wasn’t granted to assessee

INCOME TAX : Where in show cause notice an option was given to assessee to opt for personal hearing and assessee so opted, however, such hearing was not granted and straightaway after lapse of about a month, impugned assessment order came to be passed, substantial prejudice having been caused to assessee, revenue was to be directed not to take any action against assessee, based on impugned order

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315822/hc-directed-ao-not-to-take-any-action-against-assessee-as-hearing-wasn’t-granted-to-assessee.aspx

ITAT remanded matter as AO didn’t examine deduction u/s 35E on exp. incurred on exploration/extraction of minerals

INCOME TAX : Where assessee-company formed to undertake business of exploration and extraction of minerals claimed expenditure incurred by it as business loss, which was disallowed by Assessing Officer on ground that assessee had not yet started commercial production, since section 35E would be applicable to assessee which provides for accumulation of expenses rather than treating expenses as business loss and same was not examined by Assessing Officer,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315798/itat-remanded-matter-as-ao-didn’t-examine-deduction-us-35e-on-exp-incurred-on-explorationextraction-of-minerals.aspx

Circular no. 7/2018 doesn’t empowers CIT to exempt assessee from filing of Form 10 with AO: ITAT

INCOME TAX : As per CBDT Circular No. 7/2018, dated 20-12-2018, Commissioner could condone delay in filing Form 10 electronically with department but could not exempt assessee from filing said Form manually with jurisdictional Assessing Officer

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316062/circular-no-72018-doesn’t-empowers-cit-to-exempt-assessee-from-filing-of-form-10-with-ao-itat.aspx

HC set-asides order as AO failed to consider response submitted by assessee to draft assessment order

INCOME TAX : Where lower authorities had passed assessment order and issued demand notice under section 156, alleging that assessee failed to provide any documentary evidence or even respond to show cause notice issued to it but print out of e-proceedings response acknowledgement from Income Tax Department shows that reply to show cause notice alongwith various annexures have been submitted by assessee,

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MCA directs RoCs to extend due date of AGM for F.Y. ending March 31, 2020- 2021 by two months

The Central Govt. received representation seeking extension of Annual General Meetings for Financial Year 2020-21 due to many difficulties faced by stakeholders during the second wave of Covid-19 and consequent lockdown, accordingly, the Central Government has decided to advise Registrar of Companies (RoCs)to accord approval for extension of time for a period of two months beyond the due dates by which companies are required to conduct AGMs for the financial year 2020-21 ended on March 31, 2021

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HC set-asides order as AO failed to consider reply response submitted by assessee to draft assessment order

INCOME TAX : Where lower authorities had passed assessment order and issued demand notice under section 156, alleging that assessee failed to provide any documentary evidence or even respond to show cause notice issued to it but print out of e-proceedings response acknowledgement from Income Tax Department shows that reply to show cause notice alongwith various annexures have been submitted by assessee,

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

Director of borrower Co. was liable only to extent of value of share pledged by him as collateral security against loan

FEMA, BANKING amp; INSURANCE : Where director of borrower company pledged certain shares held by him in company as a collateral security for repayment of loan, in case of default in repayment, said director could not be held liable for entire loan amount, he was liable to extent of value of share pledged by him under share pledge agreement

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No reassessment merely relying info. received from NSE that assessee changed its client code

INCOME TAX : Where AO issued reopening notice against assessee on ground that an information was received from NSE that there was change in code of assessee maintained with broker in respect of share transactions carried out in F and O segment which had resulted in shifting in and out of loss and profit by assessee by way of client code modification (CCM), since there was no sufficient verification/examination regarding such alleged CCM and, further,

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No exemption u/s 10(23C) if fees charged by hospital is at par with other hospitals running on commercial basis: SC

INCOME TAX: Where apart from consultancy charges received in OPD(Out Patient Department), remuneration has been paid by appellant-hospital from earnings of IPD (inpatient department) to doctors who may not be working in that department and, secondly, that rates being charged by appellant are at par with other hospitals which run on commercial basis, denial of exemption under section 10(23C)(via) was justified

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

Cenvat Credit availed on basis of debit notes can't be denied when the eligibility of credit is not disputed: CESTAT

EXCISE/ST/VAT : Though Rule 9(1) of CENVAT Credit Rules, 2004 does not mention debit note as a document on which credit can be availed, when all necessary particulars are mentioned the credit cannot be denied for the only reason that it is a debit note

from www.taxmann.com Latest Case Laws https://ift.tt/39xI0Hn

No disallowance of interest if complete borrowed funds not utilized due to compulsion of binding arbitration award: ITAT

INCOME TAX : Interest received on borrowing invested as partner's capital represented by flats received under arbitral award would not be allowable

from www.taxmann.com Latest Case Laws https://ift.tt/3u4KcQ5

Reassessment initiated on info received from investigation wing that assessee was involved in money laundering is valid

INCOME TAX : Where assessment was reopened in case of assessee on basis of certain information flowing in from investigation wing which indicated that assessee had received monies, in form of share application money, from an entity by name of 'R' but that money, though subjected to routing through several layers, ultimately had its source in form of huge cash deposits in one of branches of ICICI Bank,

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

Rectification initiated to restrict sec. 36(1)(viia) deduction upto provisions of doubtful debt is valid: HC

INCOME TAX : Where Assessing Officer issued impugned notice under section 154 on ground that deduction claimed under section 36(1)(viia) was to be restricted to provisions of doubtful debt made by assessee in financials, since nature of mistake proposed to be rectified was regarding amount of bad and doubtful debts debited to provision for bad and doubtful debt account, said mistake would be apparent from record and would fall under ambit of section 154

from www.taxmann.com Latest Case Laws https://ift.tt/3lQ8Xfe

Interest exp. deductible if idle funds of borrowed capital was lent to third party at bank’s interest rate

INCOME TAX : Where assessee-company, engaged in business of real estate, borrowed capital for business purpose and lent idle funds to third-party at same rate of interest, interest expense incurred was to be allowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316158/interest-exp-deductible-if-idle-funds-of-borrowed-capital-was-lent-to-third-party-at-bank’s-interest-rate.aspx

HC remanded matter back as AO disposed of objections mechanically and without application of his mind

INCOME TAX : Where Assessing officer sought to reopen assessment in case of assessee company on ground that it had taken accommodation entries from company SCL which was a bogus company, however, assessee filed its objections stating that it had entered into transactions of purchase with SCL and had cleared outstanding amounts in next year and also submitted ledger account of SCL maintained in its books of account in support of such claim,

from www.taxmann.com Latest Case Laws https://ift.tt/3AAFr3h

No sec. 13(1)(c) violation if manager was only providing consultancy services with regard to specific project: ITAT

INCOME TAX : Interest free loan given by assessee educational trust to two consultants hired by it as per their terms of employment could not be equated with loan given without any interest/security to persons referred to under section 13(3)(cc) read with section 13(1)(c) so as to deny assessee benefit of exemption under section 11

from www.taxmann.com Latest Case Laws https://ift.tt/39y949n

No abuse of dominant position by ‘Shriram City Union Finance’ as there were other NBFCs operating in Andhra Pradesh

COMPETITION LAW : Where there were other NBFC's in State of Andhra Pradesh and apart from NBFCs there were multiple options in form of banks, which were available to consumers availing various types of loans in which OP was dealing, OP could not be said to be dominant and, therefore, prima facie no case of contravention of section 4 by OP was made out

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315790/no-abuse-of-dominant-position-by-‘shriram-city-union-finance’-as-there-were-other-nbfcs-operating-in-andhra-pradesh.aspx

Interest exp. attributable from date of ‘Trial Run’ till date of commercial start of power plant is revenue exp.: ITAT

INCOME TAX : Where Assessing Officer made addition on account of unproved purchases made by assessee from three parties, however, perusal of reconciliation statement between balances as per books of account of assessee with said three parties revealed that there were no differences, no addition was called for on account of purchases from said parties

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316006/interest-exp-attributable-from-date-of-‘trial-run’-till-date-of-commercial-start-of-power-plant-is-revenue-exp-itat.aspx

Revenue exp. with no enduring benefit to be allowed as deduction in year of incurrence: Mumbai ITAT

INCOME TAX : Concept of deferred revenue expenditure is not there in Income-tax Act; hence, where assessee incurred expenditure on brokerage paid for obtaining investments in mutual funds and claimed expenditure incurred towards brokerage in statement of computation, revenue could not have denied same and fact that assessee had deferred expenditure in books of account would be irrelevant

from www.taxmann.com Latest Case Laws https://ift.tt/3CwNS04

HC refuses to entertain petition under RERA on merits applying doctrine of ‘forum non-conveniens’

COMPANY LAW/RERA : Where RERA authority passed an order directing developer to refund amount of consideration to flat purchaser, and instant writ petition was filed at principal bench (Mumbai) challenging an interim order of pre-deposit as a condition for hearing of appeal filed by developer before Tribunal, since no inconvenience would have been caused to developer if writ petition was presented for being heard by Nagpur Bench, and even agreement for sale stipulated that in case of dispute,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317043/hc-refuses-to-entertain-petition-under-rera-on-merits-applying-doctrine-of-‘forum-non-conveniens’.aspx

Parties engaged in commercial litigation must weigh commercial interests and avoid filing mindless appeals: SC

COMPANY LAW : Parties engaged in commercial litigation must weigh commercial interests and avoid filing mindless appeals

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

AO can’t disregard a transaction just because it results in tax advantage to assessee: Mumbai ITAT

INCOME TAX : Where assessee, NRI, sold a property and earned capital gain and also reported a long-term capital loss on sale of certain shares in company (VCAM) and Assessing Officer was of view that long-term capital loss on account of equity shares of company (VCAM) appears to be prima facie fictitious and not entitled to be adjusted against any taxable income, since ownership is transferred, consideration is paid and transaction is complete,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317021/ao-can’t-disregard-a-transaction-just-because-it-results-in-tax-advantage-to-assessee-mumbai-itat.aspx

No cessation of liability if proceedings for recovery of amount from assessee were pending before court: ITAT

INCOME TAX : Where assessee did not make payment for goods purchased from parties, as same were of inferior quality and treated said parties as trading liabilities, since proceedings against assessee for recovery with respect to these amounts were still in progress, such amount could not be treated as ceased liabilities under section 41(1)(a)

from www.taxmann.com Latest Case Laws https://ift.tt/3zqM8DO

HC slams AO for making additions without finding fact that whether transferred asset was a capital asset

INCOME TAX : Where Assessing Officer made addition on account of capital gain arose to assessee on transfer of land under a joint development agreement (JDA), since there was no application of mind by Assessing Officer as to fact that whether subject land was a capital asset under section 2(15)(iii)(a) or (b) and whether there was 'transfer' of land by assessee under said JDA under section 2(47), impugned addition made by Assessing Officer to income of assessee was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2XIBYl3

No addition in respect of assessments concluded on date of search unless some incriminating material was found: HC

INCOME TAX : Where addition was not based on any incriminating material found during course of search and assessment was not pending on date of search, addition was to be deleted

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

Petitioner aggrieved by notices issued by bank u/s 13(2) and 13(4) can appeal against such notices u/s 17 before DRT

FEMA, BANKING amp; INSURANCE : Where petitioner/borrower was aggrieved by notices issued by bank under section 13(2) and 13(4), he could file an appeal against said notices under section 17 before DRT; writ not maintainable

from www.taxmann.com Latest Case Laws https://ift.tt/3zmCuC0

Madras HC remanded matter as assessee hadn’t provided an opportunity to defend his case of reassessment

INCOME TAX : Where reassessment, to tax income under section 28(iv), was initiated on basis of order by Commissioner (Appeals) in case of company in which assessee was director but assessee claimed that he was not director of company at that time, since disputed facts cannot be adjudicated in writ proceedings, all such disputed facts were to be verified by competent authorities and, thus, reassessment was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316149/madras-hc-remanded-matter-as-assessee-hadn’t-provided-an-opportunity-to-defend-his-case-of-reassessment.aspx

ITAT deleted additions made in hands of husband as cash payment of stamp duty was actually done by wife

INCOME TAX : Where AO made an addition on account of stamp duty incurred by assessee for purchase of an immovable property as unexplained investment, since property was owned by assessee jointly with his wife and such amount towards stamp duty was actually paid by wife of assessee and said fact was also brought forward before AO, impugned addition made on account of said stamp duty amount in hands of assessee was unjustified

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

No addition in respect of assessments concluded on date of search unless some incriminating material: Delhi HC

INCOME TAX : Where addition was not based on any incriminating material found during course of search and assessment was not pending on date of search, addition was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/3nTzFX8

Developer of SEZ is eligible for deduction u/s 80-IAB for income earned from operation and maintenance of SEZ: ITAT

INCOME TAX : Activities of assessee being that of a developer, same would include operation and maintenance of SEZ and, therefore, entitled for deduction under section 80-IAB; it could not be said that deduction under section 80-IAB is allowed only to transferee developer

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

LLP not liable to pay service tax under reverse charge being not a ‘body corporate’: CESTAT

EXCISE/ST/VAT : LLP entity not being 'body corporate' not liable to pay service tax under reverse charge

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316882/llp-not-liable-to-pay-service-tax-under-reverse-charge-being-not-a-‘body-corporate’-cestat.aspx

AO can’t continue proceedings in name of death person if legal heir informed about assessee’s death after receiving notice: HC

INCOME TAX : Notice issued under section 153C against dead person is unenforceable in law; in such case revenue cannot contend that as they have no knowledge about death of assessee, they are entitled to plead that notice is not defective

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198792/ao-can’t-continue-proceedings-in-name-of-death-person-if-legal-heir-informed-about-assessee’s-death-after-receiving-notice-hc.aspx

Date of service of order to be taken into consideration to calculate limitation period for rectification u/s 254: ITAT

INCOME TAX : For workability of scheme of section 254(2), limitation period is to be counted from date of service of order and not from date order, hence, where, there was no delay in filing of Miscellaneous Application if counted from date of service of Order

from www.taxmann.com Latest Case Laws https://ift.tt/2XFzow8

SLP dismissed against ruling quashing reassessment as there was no failure on part of assessee to disclose material facts

INCOME TAX : SLP dismissed against High Court ruling that where assessee neither received loan from company in which he had more than 10 per cent shareholding nor did amount advanced by said loan giver company to concerns in which assessee had substantial interest was out of accumulated profits of loan giver company, reassessment after 4 years was without authority of law and, hence, same was to be quashed

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

Exp. incurred by ‘Apollo Tyres’ to purchase equipments for its dealer’s showroom is capital expenditure: HC

INCOME TAX : Tribunal was correct in treating expenditure incurred by assessee, in showroom of its dealers for purpose of promoting sale of products of company as capital expenditure on ground that ownership of these assets was retained by assessee and these findings of fact recorded by Tribunal being based on record did not fall within scope of section 260A

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316987/exp-incurred-by-‘apollo-tyres’-to-purchase-equipments-for-its-dealer’s-showroom-is-capital-expenditure-hc.aspx

Maintenance charges received from tenants for repairs of rented property is assessable as business income: ITAT

INCOME TAX : Maintenance charges received by assessee owner of a property from tenants for undertaking maintenance of common areas of property was to be assessed as income from business and profession

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

Borrower to approach DRT/DRAT and not Civil Court If he has any grievance against measures taken by a lender: HC

FEMA, BANKING amp; INSURANCE : If borrower had any grievance against measures taken by lender, borrower had to approach DRT/DRAT and not Civil Court

from www.taxmann.com Latest Case Laws https://ift.tt/3kk4aDi

Compensation paid to lessee to vacant leased land to be allowed as deduction while computing capital gains: HC

INCOME TAX : Where assessee-company owned property which was given on lease and upon sale of said property, Assessing Officer disallowed compensation paid to lessee to vacate said land under section 48 holding same as non-genuine transaction, since reference to lease deed was found in registered sale deed and lessee had offered amount received by it as income in its return, existence of transaction could not be denied by Assessing Officer, and therefore

from www.taxmann.com Latest Case Laws https://ift.tt/3Cq3i6o

No Sec. 234B interest on advance tax deficit if tax deductible but not deducted from income received before 01-04-12: SC

INCOME TAX : Prior to the financial year 2012-13, the amount of income-tax which is deductible or collectible at source can be reduced by the assessee while calculating advance tax, the Respondent cannot be held to have defaulted in payment of its advance tax liability. However, position has changed since the financial year 2012-13, in view of the proviso to Section 209(1)(d), pursuant to which if the assessee receives any amount, including the tax deductible at source on such amount,

from www.taxmann.com Latest Case Laws https://ift.tt/2Z7iAP3

AO can’t take diff. view if Set Com estimated 12% net profit on receipt of on-money for group concerns of assessee: ITAT

INCOME TAX : Where assessee-builder was following project completion method for accounting, income quantified on amount of on-money received by assessee on sale of flats ought to be taxed only in year in which project had completed construction in accordance to conditions prescribed as per Revised Guidance Note of 2012 issued by ICAI and thus, income estimated @ 25 per cent of on-money and taxed in year of receipt was unjustified and liable to be deleted

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315467/ao-can’t-take-diff-view-if-set-com-estimated-12-net-profit-on-receipt-of-on-money-for-group-concerns-of-assessee-itat.aspx

SC dismissed SLP against ruling that supply of software embedded mobile handsets not taxable as royalty

INTERNATIONAL TAXATION : SLP dismissed against impugned order of High court holding that where assessee-company based in China sold telecom equipments i.e. mobile handsets, to various customers in India, since supply of software embedded in supply of telecom equipment resulting in sale of copyrighted article, said transaction was to be treated in nature of supply of articles or goods and thus, payment made towards supply of software was not taxable in India as royalty

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

Order passed by AO converting protective assessment into substantive assessment is appealable before CIT(A): ITAT

INCOME TAX : Where assessment was completed under section 143(3) read with section 153A and protective addition was made in hands of assessee and Assessing Officer wanted to convert said protective assessment into substantive assessment, he could have invoked his jurisdiction in terms of section 147 on satisfaction of conditions specified therein and in absence of thereof, action of Assessing Officer would not be sustainable

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

HC remitted matter back to AO as order was passed without granting further time to assessee to explain his case

INCOME TAX : Where assessment orders are passed without granting further time to assessee to explain its case, assessment orders are to be set aside and matter is to be remitted to authority concerned for fresh consideration

from www.taxmann.com Latest Case Laws https://ift.tt/3tNa7vy

Gain on sale of flat to be treated as STCG even if no dep. was claimed for a few years prior to its sale: SC

INCOME TAX : Where assessee had been allowed depreciation on a flat owned by it as a business asset, flat would continue to be part of business asset and depreciable asset even if its non-use disentitled assessee to depreciation for two years prior to date of its sale and, therefore, profit arising on sale of said flat would be assessed as a short-term capital gain under section 50

from www.taxmann.com Latest Case Laws https://ift.tt/2Z5au9E

CSR exp. incurred by making donations is eligible for deduction under sec. 80G: ITAT

INCOME TAX : Explanation 2 to section 37(1) which denies deduction for CSR expenses by way of business expenditure is applicable only to extent of computing 'business income' under Chapter IV-D and; it could not be extended or imported to CSR contributions which was otherwise eligible for deduction under Chapter VI;

from www.taxmann.com Latest Case Laws https://ift.tt/3nD3pY9

Additional income disclosed before SetCom to close matter can’t indicate that true disclosure of income not made

INCOME TAX : Where assessee agreed to abide by directions issued by ITSC during settlement proceedings for further disclosure of income not because assessee accepted understatement of income, but with view to bring quietus to matter and in spirit of settlement; additional income offered by assessee by means of further disclosure pursuant to submission of verification report to ITSC

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316821/additional-income-disclosed-before-setcom-to-close-matter-can’t-indicate-that-true-disclosure-of-income-not-made.aspx

Sec. 56(2)(vii)(b)(ii) to be harmoniously construed with Sec. 50C amp; 56(2)(x) to allow benefit of safe harbour limit

INCOME TAX : Assessee purchased four immovable properties - Assessing Officer noticed that declared sale consideration shown by assessee was lesser than stamp duty value determined by stamp duty authority and therefore, such difference in value was to be added to income of assessee under section 56(2)(vii)(b) - Whether since difference between agreement value and stamp duty value was less than 10 per cent

from www.taxmann.com Latest Case Laws https://ift.tt/2Z2HwqV

No credit reversal required where service tax not liable to be paid but paid under RCM: CESTAT

EXCISE/ST/VAT: Where appellant was not liable to pay Service Tax but paid it and accordingly availed Cenvat credit, assessee cannot be asked to reverse credit availed on tax paid under Reverse Charge basis

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

Authorities when approached u/s 14 must direct police to assist secured creditor in taking possession of assets

FEMA, BANKING amp; INSURANCE : Upon receipt of request under section 14, authorities approached need to issue directions to Revenue Officials or Police Officials to provide assistance to secured creditor to enable him to obtain possession of secured asset or documents pertaining thereto so that such secured assets may be put up for sale, and realisation of sale proceeds would amount to blocked funds being unblocked

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

No interest can be levied on assessee for excess tax refund if assessment was reopened under sec. 147: HC

INCOME TAX : Assessment framed under section 143(3) read with section 147 not being assessment made for first time, same cannot be regarded as a 'regular assessment' for purposes of section 234D and therefore, no interest could have been levied on assessee for excess income tax refund

from www.taxmann.com Latest Case Laws https://ift.tt/3hz4Brp

Kerala HC remanded matter as assessment order was passed ignoring binding judgment of SC

INCOME TAX : Where Assessing Officer disallowed deduction under section 80P to assessee primary agricultural credit society on ground that name of assessee society had word 'Bank' included in it ignoring decision of Supreme Court in a case wherein Court held that mere mention of word 'Bank' in its name would not deprive a primary agricultural credit society, benefit of deduction under section 80P

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

NCLT directs compounding of offence as delay in filing of cost audit report was due to technical glitch on MCA portal

COMPANY LAW: Where applicant company filed application for compounding of offence under section 233B of Companies Act, 1956 on ground that delay in filing cost audit report was due to technical problems in MCA portal and applicants had no mala fide intention, offence was to be compounded by NCLT on payment of compounding fee

from www.taxmann.com Latest Case Laws https://ift.tt/3nza6dH

Sec. 143(1) intimation isn’t an order for the purpose of section 264 revision: Kar. HC

INCOME TAX : In view of deletion of Explanation to section 143 from 1-6-1999, intimation under section 143(1) ceases to be an order for purposes of section 264

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316173/sec-1431-intimation-isn’t-an-order-for-the-purpose-of-section-264-revision-kar-hc.aspx

No sec. 14A disallowance if assessee made investment from capital amp; reserves and not from borrowed funds: HC

INCOME TAX : Where investments had been made by assessee from capital and reserves and not out of borrowed funds and assessee had not incurred expenditure to earn exempt income, no disallowance could be made under section 14A

from www.taxmann.com Latest Case Laws https://ift.tt/2Xk6P6T

NCLT doesn’t have jurisdiction to deal with issues relating to contractual provisions between parties: NCLAT

COMPANY LAW : NCLT under companies Act is concerned only with affairs of company and does not have jurisdiction to deal with issues relating to contractual provisions between parties

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315694/nclt-doesn’t-have-jurisdiction-to-deal-with-issues-relating-to-contractual-provisions-between-parties-nclat.aspx

NCLT directs compounding of offence as delay in filing of cost audit report was due to technical glitch in MCA portal

COMPANY LAW: Where applicant company filed application for compounding of offence under section 233B of Companies Act, 1956 on ground that delay in filing cost audit report was due to technical problems in MCA portal and applicants had no mala fide intention, offence was to be compounded by NCLT on payment of compounding fee

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

HC directs ‘Schneider’ to continue its negotiations with parties to conclude and execute white labelling agreements

COMPETITION LAW : High Court holds that CCI lacks statutory power of Review and directed negotiations to continue to conclude White Labelling Agreements in terms of Approval order of CCI whereby it approved combination/acquisition of electrical and automation business (Eamp;A Business) of Lamp;T by 'S'

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316898/hc-directs-‘schneider’-to-continue-its-negotiations-with-parties-to-conclude-and-execute-white-labelling-agreements.aspx

SC dismissed appeal against CESTAT order to classify spare parts for manufacturing of round recliner under HSN 9401 90 00

EXCISE/ST/VAT : Supreme Court dismissed appeal against impugned order of CESTAT holding that child/spare parts imported by assessee for manufacturing of round recliner were integral parts of seats of motor vehicles and not like accessories fitted in motor vehicle, they would be appropriately classifiable under 9401 90 00

from www.taxmann.com Latest Case Laws https://ift.tt/39fGQ33

Person can’t file writ against notice issued to him to pay amount to Tax Dept. which was payable to tax defaulter: HC

INCOME TAX : Where notice under section 226 was issued to petitioner to effect that amount payable by it to defaulter of income-tax department was to be paid to department and petitioner challenged said notice, petitioner could not be construed as an aggrieved person, and he had to comply with impugned notice by depositing dues of defaulter to income-tax department

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315925/person-can’t-file-writ-against-notice-issued-to-him-to-pay-amount-to-tax-dept-which-was-payable-to-tax-defaulter-hc.aspx

Reassessment after 4 justified if tangible material wasn’t taken into consideration during original assessment: HC

INCOME TAX : Where assessment was sought to be reopened beyond a period of four years, mere availability of tangible material would be sufficient for purpose of invoking powers under section 147

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316861/reassessment-after-4-justified-if-tangible-material-wasn’t-taken-into-consideration-during-original-assessment-hc.aspx

No denial of sec. 54B relief just because new agricultural land was registered in name of co-parcener of HUF: ITAT

INCOME TAX : Where assessee-HUF sold an agricultural land and out of sale proceeds purchased another agricultural land, since new land was purchased out of funds of HUF and was shown in books of account of HUF and that HUF was doing agricultural activities, assessee-HUF could not be denied deduction under section 54B merely because new land was registered in name of co-parcerner of HUF

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

Pre-payment charges in nature of interest on money borrowed to be allowed as deduction: HC

INCOME TAX: One time payment made by assessee towards pre-payment premium and interest compense to banks for agreeing to reduce rate of interest on loan pursuant to corporate debt restructuring was business expenditure

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

No exemption if educational funds diverted to another organization not existing solely for education purposes; SLP dismissed

INCOME TAX : SLP dismissed against impugned order of High Court holding that where assessee-school had been diverting funds under head of educational extension services to another organization which was not existing solely for educational purposes, assessee could not be granted exemption under section 10(23C)(vi)

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

ST can't be demanded from only one of partners in Joint Venture, matter remanded back for re-consideration: CESTAT

EXCISE/ST/VAT : ST can't be demanded from only one of partners in Joint Venture, matter remanded back for re-consideration

from www.taxmann.com Latest Case Laws https://ift.tt/3A8scXn

Passing order without providing opportunity to file relevant details is violation of principles of natural justice: HC

INCOME TAX : Where an adjournment filed by assessee to file voluminous details in response to a notice under section 142(1) was not considered by Assistant Commissioner before passing an assessment order, impugned assessment order passed without giving an opportunity to assessee to file relevant details in-spite of his request was a clear violation of principles of natural justice and, therefore, same was to be set aside

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

Banks duty-bound to exercise due diligence in maintaining and operating their locker facility rules, SC

FEMA, BANKING amp; INSURANCE : Banks owe a duty of care to exercise due diligence in maintaining and operating lockers or safety deposit systems and they cannot contract out of minimum standard of care in this regard, hence, where appellant locker holder had not committed any fault so far as operation of locker was concerned, breaking open of locker of appellant by bank was in blatant disregard to responsibilities that bank owed to customer as a service provider

from www.taxmann.com Latest Case Laws https://ift.tt/3kb1asQ

No exemption if educational funds to another organization not existing solely for education purposes; SLP dismissed

INCOME TAX : SLP dismissed against impugned order of High Court holding that where assessee-school had been diverting funds under head of educational extension services to another organization which was not existing solely for educational purposes, assessee could not be granted exemption under section 10(23C)(vi)

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

Appeal filed by ED u/s 42 before HC through Assistant Director is maintainable rules, PMLA-AT

PMLA : Where department was aggrieved and decision of filing appeal was taken at level of Special Director that Assistant Director was to file appeal, appeals filed by ED through Assistant Director or either of class of authorities as specified under section 48 was maintainable

from www.taxmann.com Latest Case Laws https://ift.tt/3tLjZG7

SEBI rightly rejected preferential allotment as issuer failed to comply with minimum public shareholding requirement

COMPANY LAW : Preferential allotment can be issued by issuer company, however, before issuance of preferential allotment certain conditions are required to be complied which is mandatory as per Regulation 160 of ICDR Regulations. Regulation 160(d) provides that issuer is required to be in compliance with LODR Regulations

from www.taxmann.com Latest Case Laws https://ift.tt/3nzLLV0

NCLAT dismissed plea filed by ‘Devas Multimedia’ challenging winding up order of NCLT

COMPANY LAWS : Where appellant Devas was incorporated with a fraudulent motive to collude and connive with officials of ISRO's Antrix Corporation to get bandwidth from it by entering into an Agreement 'for services' which were not in trend, utilising technologies not in ownership of appellant and furthermore, Agreement was signed was inviolation of 'SATCOM Policy', FIPB approvals were obtained fraudulently, illegal foreign investments were brought into India and then,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316853/nclat-dismissed-plea-filed-by-‘devas-multimedia’-challenging-winding-up-order-of-nclt.aspx

Madras HC justified Sec. 68 additions as huge share capital of assessee had been routed through only two paper Cos

INCOME TAX : Where Assessing Officer noted that share capital of assessee-company had been routed through two companies, existence and operation of which remained only on paper and enquiries conducted showed that intermediary companies acted as conduits and huge amount were brought in assessee's books as share application money through intermediary companies by shareholders,

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

No disallowance of deduction just because gratuity scheme wasn’t approved by Competent Authority: ITAT

INCOME TAX : Where assessee had filed application to Competent Authority for approving gratuity scheme, non-approval of said scheme even after more than 14 years would not disentitle assessee to claim deduction of contribution made towards gratuity fund of employees

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316264/no-disallowance-of-deduction-just-because-gratuity-scheme-wasn’t-approved-by-competent-authority-itat.aspx

Marked to Market loss incurred on account of foreign exchange fluctuations is allowable as deduction: HC

INCOME TAX : Where assessee-company had borrowed working capital loan with foreign swap option for business purpose and had entered into a foreign currency contract to protect itself from foreign exchange fluctuation, loss incurred by assessee on account of foreign exchange fluctuations was to be allowed as deduction under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3lpXAu6

Appeal pending as of 31-1-2020 is eligible for ‘Vivad se Vishwas’ though same is not admitted: Delhi HC

INCOME TAX : Section 2(1)(a) of Direct Tax Vivad Se Vishwas Act, 2020 does not stipulate that appeal should be admitted before specified date; it only adverts to its pendency; an appeal would be 'pending' in context of section 2(1)(a) when it is first filed till its disposal

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198864/appeal-pending-as-of-31-1-2020-is-eligible-for-‘vivad-se-vishwas’-though-same-is-not-admitted-delhi-hc.aspx

CIT(A) rightly canceled sec. 271AAB penalty as only survey was conducted by Dept.: HC

INCOME TAX: Where no search was conducted under section 132 and only survey was conducted and assessment order was passed under section 153C read with section 143(3), Commissioner (Appeals) had rightly cancelled penalty levied under section 271AAB

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

Respondent-co. which had stopped its business operation long back after failing to repay overdues was to be wound-up

COMPANY LAW : Where in e-mail respondent-company had acknowledged to pay outstanding dues to petitioner-company but had failed to pay same and respondent also admitted that its business operation had been stopped, it was just and equitable that respondent company be wound up

from www.taxmann.com Latest Case Laws https://ift.tt/3Ac1AVk

Order restraining director of broking-Co from accessing securities market quashed in absence of any adverse material

COMPANY LAW/SEBI : Where WTM passed order restraining appellant-director of stock broking company from accessing securities market, however no role or complicity of appellant was brought on record while conducting investigation into affairs of company, nor was there any adverse material against appellant, appellant could not be held liable for same and order of WTM was to be quashed

from www.taxmann.com Latest Case Laws https://ift.tt/3k8q1xp

Gold pendants of oval shape having flower symbol and purity being imprinted to be classified under HSN 7113

EXCISE/ST/VAT : Petitioner imported gold pendants with an oval shape with flower symbol and purity being imprinted thereon and claimed that they were ready to be worn on person without being subjected to any further process, and thus, same were rightly classifiable as 'jewellery' falling under 7113 of the CTH

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

AO under RERA has only power to adjudicate compensation u/s 12, 14, 18 and 19: Bombay HC

COMPANY LAW/RERA : Adjudicating Officer under RERA has only power to adjudicate compensation under sections 12, 14, 18 and 19 and it is function of authority under section 34 for registering and regulating real estate projects

from www.taxmann.com Latest Case Laws https://ift.tt/3lmAF2S

Bluetooth Module being engaged in reception, transmission and conversion of voice and other form of data to be classified under HSN 8517 62 90

EXCISE/ST/VAT: Bluetooth Module being engaged in reception, transmission and conversion of voice and other form of data, falls under sub-heading 8517 62 and consequently classified under Tariff Item 8517 62 90

from www.taxmann.com Latest Case Laws https://ift.tt/3k5LE1r

Reassessment valid if TDS appearing in Form 26AS was deliberately not claimed to concealed facts during assessment: HC

INCOME TAX : Where there was a huge mismatch in receipts appearing in Form 26AS vis-a-vis receipts credited in Pamp;L account as assessee never disclosed and claimed TDS from certain parties during assessment proceedings, though he had opportunity to do so and therefore, deliberately concealed particulars during assessment proceedings, reopening of assessment was justified.

from www.taxmann.com Latest Case Laws https://ift.tt/3E8YkfU

Bombay HC directed adjudication authority to consider the prayers for provisional release of seized goods by petitioner

CUSTOMS/EXCISE/ST : Notwithstanding pendency of proceedings initiated by issuance of a show-cause notice under clause (a) of section 124, Adjudicating Authority may, in his discretion, allow a provisional release on such conditions as he may require fit to impose

from www.taxmann.com Latest Case Laws https://ift.tt/3lm39d1

Refund claim would be completed only after removal of deficiency; interest to be paid after 3 months of removal of deficiency: CESTAT

EXCISE/ST/VAT : Interest on refund would accrue 3 months after dated of removal of deficiency in refund claim

from www.taxmann.com Latest Case Laws https://ift.tt/2Xfn59m

Roads are eligible for dep. as building includes roads; HC upholds tribunal ruling

INCOME TAX : Assessee engaged in business of improvement and development of State Highways was entitled to claim depreciation allowance on roads

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

Sum forfeited by Tax Dept. as purchaser didn’t buy auctioned property can’t be paid to assessee: HC

INCOME TAX : Where two shops of assessee attached for recovery of tax payable by assessee were auctioned for recovery, however, auction failed as purchaser paid only 25 per cent of total auction amount and did not pay balance amount, said properties were to be resold and such 25 per cent of amount already paid by purchaser was to be forfeited to Government and not to be credited to assessee as, in case, reauction was successful then assessee would have benefit of sale proceeds

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316253/sum-forfeited-by-tax-dept-as-purchaser-didn’t-buy-auctioned-property-can’t-be-paid-to-assessee-hc.aspx

No reassessment to change calculation method under rule 8D in lack of any failure on part of assessee in furnishing doc.

INCOME TAX : Reopening of assessment beyond four years on ground that expenditure in relation to income not includible in total income under section 14A should have been calculated as per clause (ii) of rule 8D(2) would amount to change of opinion when no negligence was found on part of assessee in furnishing necessary materials for completing assessment under section 143(3)

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

HC sets aside disqualification of director for lack of notice to director before disqualification

COMPANY LAW : Where no notice was given to petitioner before disqualifying him as Director of company, impugned order passed by MCA disqualifying petitioner as Director of company under section 164(2)(a) was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3k7IrP0

AO under RERA has only power to adjudicate compensation u/ss 12, 14, 18 and 19: Bombay HC

COMPANY LAW/RERA : Adjudicating Officer under RERA has only power to adjudicate compensation under sections 12, 14, 18 and 19 and it is function of authority under section 34 for registering and regulating real estate projects

from www.taxmann.com Latest Case Laws https://ift.tt/3EdW3Qw

Taxation regime should be convenient amp; simple to achieve maximization of compliance: Apex Court

INCOME TAX : In taxation regime, there is no room for presumption and nothing can be taken to be implied. The tax an individual or a corporate is required to pay, is a matter of planning for a tax payer and the Government should endeavour to keep it convenient and simple to achieve maximization of compliance

from www.taxmann.com Latest Case Laws https://ift.tt/2X5auWD

No Service Tax on education services provided by University including affiliation services: Madras HC

EXCISE/ST/VAT : A university cannot be assessed for demanding any service tax for services of education provided by them, which includes affiliation to other institute or other services provided for students, faculty as well as staff of university

from www.taxmann.com Latest Case Laws https://ift.tt/2X4wwJ7

Time-barred demand can’t be revived on amendment to statute if such amendment is not retrospective in nature: CESTAT

EXCISE/ST/VAT: Time-barred demand can't be revived on amendment to statute if such amendment is not retrospective in nature

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316726/time-barred-demand-can’t-be-revived-on-amendment-to-statute-if-such-amendment-is-not-retrospective-in-nature-cestat.aspx

HC justified action on ‘IAS Officer' even if property was purchased before enactment of Benami Amendment Act, 2016

INCOME TAX/BENAMI ACT : Where investigations and search were conducted prior to commencement of Benami Transactions (Prohibition) Amendment Act, 2016, and alleged benami transactions were also occurred prior to amendment, provisional attachment under Section 24 is certainly permissible under Section 1(3)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316824/hc-justified-action-on-‘ias-officer-even-if-property-was-purchased-before-enactment-of-benami-amendment-act-2016.aspx

AO can’t reject assessee’s application for issuance of nil rate deduction certificate without giving any reasons: HC

INCOME TAX : Where assessee's application for issuance of nil rate of TDS certificate under section 197 was rejected by Assessing Officer without giving any reasons for such rejection and without making any reference to mandate of rule 28AA, impugned order was a cryptic one and same was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315922/ao-can’t-reject-assessee’s-application-for-issuance-of-nil-rate-deduction-certificate-without-giving-any-reasons-hc.aspx

Reassessment can be initiated based on materials which weren’t considered during original assessment: HC

INCOME TAX: Based on return of income filed by petitioner / assessee, assessment order had been passed and subsequently it was found that for payment effected in Foreign currency towards loan guarantee interest, no tax was deducted by assessee at source and thus, Assessing Officer had 'reason to believe' that income chargeable to tax had escaped assessment. Under these circumstances, assessee could not say that he had produced all material facts and books of account etc.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316797/reassessment-can-be-initiated-based-on-materials-which-weren’t-considered-during-original-assessment-hc.aspx

SEBI’s order directing legal heir of deceased MD of target-co. to make open offer after 12 yrs was to be quashed

COMPANY LAW/SEBI : Where Chairman/Managing Director of target company acquired its shares in excess of threshold limit of 5 per cent without making an open offer and thus, violated regulation 11 and later on, he died and SEBI after inordinate delay of 12 years passed impugned order directing legal heirs to make an open offer, said order was not appropriate, and, hence, was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316007/sebi’s-order-directing-legal-heir-of-deceased-md-of-target-co-to-make-open-offer-after-12-yrs-was-to-be-quashed.aspx

Madras HC remanded matter as AO violated principles of natural justice and made arbitrarily reassessment

INCOME TAX : Where Assessing Officer made assessment under section 144 but petitioner was not granted time to reply and no personal hearing was granted, it was a case of violation of principles of natural justice and said assessment order was to be set aside and matter was remitted back

from www.taxmann.com Latest Case Laws https://ift.tt/2Vu7gLk

No anti-competitive practice by Jet airways as there was no evidence to show cartelization during Jaat agitation

COMPETITION LAW : Where there was no evidence on record to establish cartel amongst opposite parties, Domestic Airlines, during Jat agitation no case of contravention of provisions of section 3 was made out against OPs

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

Research exp. relating to business is deductible even if corresponding research grant isn’t charged to tax: ITAT

INCOME TAX : Where grants were given to enable assessee to conduct research and development in defence aviation system so that necessary technical know-how could be acquired for subsequent manufacture of defence equipments, such research would be related to business of assessee and expenditure incurred towards research and development activities would be allowed under section 35(1)(iv)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316737/research-exp-relating-to-business-is-deductible-even-if-corresponding-research-grant-isn’t-charged-to-tax-itat.aspx

Refund can’t be rejected as approval from UAC is a procedural condition; SEZ Act overrides all other Statues

EXCISE/ST/VAT : Where appellant SEZ claimed refund of service tax paid on input services utilized by it in connection with authorized operations of its SEZ unit but Department rejected part of refund claim relating to service tax amount paid by appellant on ocean freight services, which was not included/covered under approved list of services as per Notification issued under Finance Act, 1994, it was held that ,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316777/refund-can’t-be-rejected-as-approval-from-uac-is-a-procedural-condition-sez-act-overrides-all-other-statues.aspx

Sec. 24(b) doesn’t mandate acquiring possession of property to claim interest deduction: ITAT

INCOME TAX : As per plain literal interpretation of section 24(b) there is no bar on an assessee to claim deduction of interest payable on a loan taken for purchasing a residential property, though, possession of same might not have been vested with him

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316796/sec-24b-doesn’t-mandate-acquiring-possession-of-property-to-claim-interest-deduction-itat.aspx

Under-assessment of income falls under deemed cases; AO was justified in reopening of assessment: Madras HC

INCOME TAX : Where assessee had produced all material facts and evidences but Assessing Officer in original assessment order had not considered many such details and passed an assessment order in a cryptic manner and from and out of such an assessment order, department traced out certain under-assessment and such income has been made subject of excessive relief under Act or excessive allowance under Act has been computed, case of petitioner is falling under deemed cases,

from www.taxmann.com Latest Case Laws https://ift.tt/3l8qCOX

Cheque bounced on account of being non-MICR cheque couldn’t be a ground for prosecution u/s 138 of NI Act

FEMA amp; BANKING : Where cheques were bounced on account of them being not acceptable by bank (on account of being non-MICR cheque), said bouncing was not on account of any act or omission of accused and could not be ground for prosecution under section 138 of Negotiable Instruments Act as one of conditions precedent for prosecution

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316196/cheque-bounced-on-account-of-being-non-micr-cheque-couldn’t-be-a-ground-for-prosecution-us-138-of-ni-act.aspx

HC refuses to grant bail in money laundering case due to pendency of investigation and non-cooperation of accused

FEMA amp; BANKING : Where accused company and its directors which had remitted Indian Currency illegally abroad by submitting bogus import documents sought for bail in case registered for offence of money laundering, as investigation was still going on and accused had not co-operated in investigation, his bail application was to be rejected

from www.taxmann.com Latest Case Laws https://ift.tt/3hzv0pp

Land sold after decade indicates that it was held for investment; profit would be tax under head ‘capital gains’: ITAT

INCOME TAX : Where assessee-developer/builder had sold land after gap of a decade and same was shown as investment in fixed assets in balance sheet from time of acquisition till sale of land, profit arising out of sold land was assessable to tax under head 'capital gains' and thus, exemption claimed under section 54F was to be allowed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315883/land-sold-after-decade-indicates-that-it-was-held-for-investment-profit-would-be-tax-under-head-‘capital-gains’-itat.aspx

IRDAI issues guidance note on product structure for cyber insurance

In order to capture data and putting it to right use benefits governments, corporations, institutions, science, and social welfare, the IRDAI has issued guidance note on product structure for cyber insurance. The provisions related to emergence of cyber risks, policies, gaps and recommendations have been discussed in details.

from taxmann.com News https://ift.tt/3log92b

HC set-aside order as assessee didn’t have sufficient opportunity to reply to notice due to lockdown in State

INCOME TAX : Where assessee did not have sufficient opportunity to reply to notice under section 142(1) issued against it as there was a lockdown in State due to covid-19 pandemic and there were large number of documents in his possession that he would have placed on record to clarify issues raised in said notice, impugned assessment order passed against assessee by Assessing Officer without filling of reply by assessee to said notice was unjustified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315920/hc-set-aside-order-as-assessee-didn’t-have-sufficient-opportunity-to-reply-to-notice-due-to-lockdown-in-state.aspx

HC granted unconditional stay of demand; set-asides stay granted with condition to adjust demand with future refunds

INCOME TAX : A huge amount towards refund cannot be declined on ground that a demand is pending for previous year; Where Commissioner by impugned order stayed demand with condition to adjust future refunds against demand of Assessment year 2012-13, impugned order was set aside to extent it put a condition of adjustment of future demand arising to assessee and, thus, unconditional stay of demand was granted till final disposal of appeal pending before ITAT

from www.taxmann.com Latest Case Laws https://ift.tt/2X2CYjn

Assessee can’t selectively accept a portion of order passed by SetCom and challenge remaining portion: HC

INCOME TAX: Assessee could not have selectively accepted majority portion of order passed by Settlement Commission and dissected one issue, which was not considered to expectation of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316769/assessee-can’t-selectively-accept-a-portion-of-order-passed-by-setcom-and-challenge-remaining-portion-hc.aspx

Portion of money retained in Escrow account to be taken into consideration for computing capital gains: HC

INCOME TAX : Where Business Sale Agreement was entered into between assessee and purchaser for selling of right, title and interest in the business carried out by assessee for a lump sum consideration and after having agreed upon full and final consideration, parties agreed to retain a particular amount of money in an Escrow account, since possession of asset was handed over to assessee and entire amount has been received by assessee without any deductions,

from www.taxmann.com Latest Case Laws https://ift.tt/2X2fM4N

HC justified action of AO in issuing reassessment notice under old provisions after 31-03-2021

INCOME TAX : Where assessee-firm challenged notice issued under section 148 on 30-6-2021 on grounds that same was issued without following procedure under section 148A which came into force on 1-4-2021 by Finance Act, 2021 and without giving assessee an opportunity to be heard, in view of fact that pandemic and lockdown prevailed all over India and people were unable to file their returns and considering said situation Ministry of Finance had issued Notification No. 20/2021,

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

Restriction of supply of fertilizers to an informant in furtherance of State policy wasn’t abuse of dominance by PACCS

COMPETITION LAW : Where informant, a multi State co-operative society, filed information against OPs, officials of Registrar co-operative in State of Uttar Pradesh, alleging that to maintain monopoly of PACCS (Co-operative Society of State Government) OPs restricted supply of fertilizers to informant, restrictions having been brought in furtherance of policy of State Government could not be said to be in contravention of provisions of Competition Act

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316013/restriction-of-supply-of-fertilizers-to-an-informant-in-furtherance-of-state-policy-wasn’t-abuse-of-dominance-by-paccs.aspx

Volleyball Federation didn’t deny players to participate in a Volleyball league, no abuse of dominance: CCI

COMPETITION LAW : Where Volleyball Federation of India (VFI) granted exclusive rights to Baseline for organising Volleyball Legues in India for 10 years and there was nothing on record to indicate that during relevant period Volleyball players were denied any effective opportunity to participate either in Volleyball League or any other tournament of Volleyball held in country or abroad, no case of contravention of section 4 was made out against VFI

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315412/volleyball-federation-didn’t-deny-players-to-participate-in-a-volleyball-league-no-abuse-of-dominance-cci.aspx

Reassessment justified as assessee disclosed percentage of work completed but didn’t produce certificate: HC

INCOME TAX : Assessee following percentage of completion method was required to produce a proper certification whether by in-house department of assessee or by an independent chartered engineer certifying percentage of work completed under contract, before Assessing Officer at time of assessment;

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198585/reassessment-justified-as-assessee-disclosed-percentage-of-work-completed-but-didn’t-produce-certificate-hc.aspx

Reassessment valid as a portion of non-compete fee related to purchase of intangible assets not deductible: HC

INCOME TAX : Where assessee-company entered into collaboration agreements with its affiliate companies and paid non-solicitation/non-compete fees to them which was claimed and allowed as revenue expenditure, but later Assessing Officer found that portion of such fees was for purchase of license and right to manufacture and sell products which was of capital nature, since assessee did not explain said fact in respect to agreement, reopening of assessment was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3zSF9Ve

No deemed dividend if sum advanced was adjusted against lease rentals of building given on lease by director: HC

INCOME TAX : Where assessee, director of company, received advance from company for construction of building on plot owned by him and such advance was later adjusted towards security deposit and rent payable to assessee, it would be a commercial transaction and would be outside purview of section 2(22)(e)

from www.taxmann.com Latest Case Laws https://ift.tt/3A0e96k

Advance ruling can be sought only in respect of one item or similar items that can be grouped together: Customs AAR

EXCISE/ST/VAT: Right of applicant to receive ruling not taken away when delay in rendering decision resulting in import of goods

from www.taxmann.com Latest Case Laws https://ift.tt/2X4SyuX

Any deposit made at the time of investigation is to be treated as pre-deposit under protest: CESTAT

EXCISE/ST/VAT : Amount deposited during pendency of adjudication proceedings or investigation is in nature of deposit made under protest and bar of time under Section is not applicable to such pre-deposit

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

Advance ruling can sought only in respect of only one item or similar items that can be group together: Customs AAR

EXCISE/ST/VAT: Right of applicant to receive ruling not taken away when delay in rendering decision resulting in import of goods

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

Amount of tax paid which wasn’t refunded can’t be brought to tax on account of cessation of liability

INCOME TAX : Where royalty payable to foreign collaborator claimed as expenditure by assessee was not remitted outside India and liability was ceased, however, TDS and interest was paid on said royalty, amount taxable under section 41(1) would be actual amount obtained by assessee exclusive of tax paid and not refunded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198820/amount-of-tax-paid-which-wasn’t-refunded-can’t-be-brought-to-tax-on-account-of-cessation-of-liability.aspx

Mistake of levying penalty in current AY for default related to prior AY can’t be cured by Sec. 292B: HC

INCOME TAX : Where Assessing Officer taking into account fact that assessee made default in payment of tax in respect of assessment year 2007-08, held assessee to be in default and levied penalty under section 221, in respect of assessment year 2008-09 in which assessee had paid tax, such mistake could not be covered under section 292B

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198481/mistake-of-levying-penalty-in-current-ay-for-default-related-to-prior-ay-can’t-be-cured-by-sec-292b-hc.aspx

MP High Court stays RBI circular dated 25-6-2021 w.r.t. appointment of MD/CEOs of Primary (Urban) Co-operative Banks

FEMA, BANKING amp; INSURANCE : Where RBI passed impugned order dated 25-6-2021 against petitioner-Urban Co-operative Bank and petitioner challenged constitutional validity of amended section 4 of Banking Regulation Amendment Act, 1965 and order of RBI on ground that Cooperative as a subject falls under Entry 32 in List-II - State list in Seventh Schedule appended to Constitution of India whereas Banking falls under Entry 45 in List-I - Union list of Seventh Schedule and, therefore,

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

HC justified reassessment as material available before AO wasn’t taken into consideration during original assessment

INCOME TAX: Where review of assessment records of assessee revealed that assessee had claimed excessive liability on production bonus and objections raised by assessee against reassessment were considered and competent authority made a finding that submission of assessee-company was incorrect and misleading,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316750/hc-justified-reassessment-as-material-available-before-ao-wasn’t-taken-into-consideration-during-original-assessment.aspx

Appellant rightly debarred from accessing securities market for 3 yrs for fraudulently transferring of GDR proceeds

COMPANY LAW/SEBI : Where company TBL had launched GDR and proceeds were transferred to its subsidiaries including one in which appellant was providing secretarial and administrative services and appellant issued instructions to transfer proceeds of GSR from said subsidiary company's account to an account in which he was beneficiary, SEBI's direction to debar appellant from accessing securities market for three years was justified

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

Writ against provisional attachment order wouldn’t be maintainable as remedy of appeal u/s 8 of PMLA was available

FEMA, BANKING amp; INSURANCE : Writ petition against provisional attachment order passed by ED would not be maintainable when in house remedy of appeal under section 8 was available to appellant

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315904/writ-against-provisional-attachment-order-wouldn’t-be-maintainable-as-remedy-of-appeal-us-8-of-pmla-was-available.aspx

Identification of wilful defaulter by Committee without furnishing documents relied on was to be remanded back

FEMA, BANKING amp; INSURANCE : Where Committee for Identification of wilful defaulter of Bank by impugned order declared petitioner directors and guarantors of company as wilful defaulters and same was confirmed by review committee, in view of fact that said order was passed without furnishing documents relied on by both committees and without recording any reasons for coming to conclusion, committees violated principles of natural justice and, therefore,

from www.taxmann.com Latest Case Laws https://ift.tt/3yPSUm0

Delhi HC set-aside faceless assessment order passed without issuing show cause notice-cum-draft assessment order

INCOME TAX : Where Assessing Officer, in faceless assessment proceedings, passed an assessment order under section 143(3) read with section 144B against assessee without issuance of a show cause notice-cum-draft assessment order, said impugned assessment order was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3yQQmE8

Corpus donations received by trust are taxable if it was not registered under sec. 12A: Chennai ITAT

INCOME TAX : Where assessee charitable trust was not registered under section 12A, voluntary donations received by it with a specific direction to be formed part of corpus of trust would fall within ambit of income of a trust derived from property held under trust and, hence, includible in total income of trust

from www.taxmann.com Latest Case Laws https://ift.tt/3hs6GWr

Case remanded back for fresh assessment only for specific issues is eligible for Sec. 244A(1A) interest: HC

INCOME TAX : On interplay of sections 244A(1A) and 153(5), interest under section 244A(1A) would not accrue in cases of fresh assessment and use of words 'wholly or partly' therein only indicate that bar on interest accrual is confined only to that part of assessment that are occasioned by remittance/remand and would not extend to other concluded issues that give rise to refund under section 153(5). Thus, section 244A(1A) would apply to cases where on certain issues,

from www.taxmann.com Latest Case Laws https://ift.tt/2WV9yU0

Refund of accumulated credit not to be denied merely because of delay in debiting CENVAT account: CESTAT

EXCISE/ST/VAT : Refund of accumulated credit not to be denied merely because of delay in debiting Cenvat account

from www.taxmann.com Latest Case Laws https://ift.tt/3BQeo4l

Bill of Entry supported with declaration given by the importer is a valid document for availing credit by job worker: CESTAT

EXCISE/ST/VAT : Job worker entitled to avail Cenvat credit on strength of Bill of Entry in name of supplier of raw material if declaration in favour of job worker was given by importer

from www.taxmann.com Latest Case Laws https://ift.tt/3n7orOk

Entire Ramp;D exp. to be capitalized if it was deriving enduring benefit in long run business plan: ITAT

INCOME TAX : Where entire Ramp;D expenditure incurred by assessee was for deriving enduring benefit in long run business plan, it was to be capitalised and eligible for depreciation as against assessee's claim of treating 70 per cent of expenditure as capital and remaining 30 per cent as revenue

from www.taxmann.com Latest Case Laws https://ift.tt/3yNne0L

No deemed dividend on loan given to director for providing collateral to bank to obtain loan for Co.: HC

INCOME TAX : Loan or advance given by company to a shareholder in return of an advantage conferred upon company by such shareholder would not come within purview of section 2(22)

from www.taxmann.com Latest Case Laws https://ift.tt/3DSGvS4

Monetary benefits given to employees of Govt. Co. on its winding up to be treated as retrenchment compensation: HC

INCOME TAX : Where on winding up of Government company, Central Government approved a non-budgetary support with view of rehabilitating its employees, monetary benefits under special package scheme would be in nature of retrenchment compensation under section 10(10B) even though it was styled as VRS

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

Identification of wilful defaulter without furnishing documents relied was to be remanded back for fresh consideration

FEMA, BANKING amp; INSURANCE : Where Committee for Identification of wilful defaulter of Bank by impugned order declared petitioner directors and guarantors of company as wilful defaulters and same was confirmed by review committee, in view of fact that said order was passed without furnishing documents relied on by both committees and without recording any reasons for coming to conclusion, committees violated principles of natural justice and, therefore,

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

Sec. 264 revision allowable against order of CIT(A) rejecting appeal filed by assessee as void ab initio: HC

INCOME TAX : Where assessee had filed a revision petition against order of Commissioner (Appeals) rejecting appeal filed by assessee as void ab initio as assessee had failed to pay admitted tax as per return of income voluntary filed, said order could not be considered as a matter having been 'subject of an appeal' to oust or prevent Commissioner from exercising power of revision conferred on him under section 264

from www.taxmann.com Latest Case Laws https://ift.tt/3tf8qXC

Credit of TDS to be allowed proportionately if assessee’s income is assessable over a number of years: ITAT

INCOME TAX : Credit for tax deducted at source and paid to Central Government shall be given for assessment year for which such income is assessable and where income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in same proportion in which income is assessable to tax

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315937/credit-of-tds-to-be-allowed-proportionately-if-assessee’s-income-is-assessable-over-a-number-of-years-itat.aspx

Whole profit of project can’t be taxed in first year just because Co. received all payment through post-dated cheques

INCOME TAX : Where assessee had entered into a MoU with SIPL to invest in project to be executed by SIPL and SIPL was to complete project and help assessee to market and sell flats, since project was not completed in present assessment year and, promised payments against project was part of total agreed sales proceeds when project was completed, Assessing Officer could not have brought whole profit of project to tax in first year of execution of MoU

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316080/whole-profit-of-project-can’t-be-taxed-in-first-year-just-because-co-received-all-payment-through-post-dated-cheques.aspx

DRI not a proper officer for issuing SCN under Customs; SC dismissed revenue's appeal

EXCISE/ST/VAT : Additional Director General (ADG) of Directorate of Revenue Intelligence (DRI) was not a proper officer to exercise power under section 28(4) read with section 2(34) of the Customs Act, 1962, thus, show cause notice issued under section 28(4) by Additional Director General DRI, was invalid

from www.taxmann.com Latest Case Laws https://ift.tt/3jH8X1l

CCI dismisses complaint against SAIL for anti-competitive practice as there was no concrete evidence of bid rigging

COMPETITION LAW : Where allegations raised by Informants, SAIL and Port trust, against opposite parties were not concrete in nature and merely contained general allegations of existence of cartel between stevedores in Paradip Port involving opposite Parties without indicating nature of cartel and how bids issued by SAIL had been manipulated or rigged by members of cartel including opposite parties, in absence of any concrete information/evidence, there existed no prima facie case,

from www.taxmann.com Latest Case Laws https://ift.tt/2WWs2UH

NCLT allows Joint Director, MCA to use all powers available with them to thoroughly investigate affairs of Videocon

COMPANY LAW : Where petitioner, i.e., Union of India, Ministry of Corporate Affairs through Joint Director, filed petition under section 241-242 praying for certain interim reliefs that petitioner be permitted to serve respondents, i.e., Videocon, its directors and group companies through Joint Director working in office of post, and that respondents be immediately directed to disclose on affidavit their moveable and immoveable properties/assets, including bank accounts,

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

HC remanded matter to verify docs supporting reasonable delay in remitting TDS prior initiating penal proceedings

INCOME TAX : Where assessee took plea of financial constraints in payment of salary to employee, as also failure to collect and deposit TDS in time, matter to be remitted to competent authority to take a call on documents produced in support of such plea before passing appropriate order

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

Refund of excess advance tax deposited for AY 2000-01 claimed in AY 2021-22 can’t be granted: Delhi HC

INCOME TAX : Assessee could not seek refund of excess advance tax deposited by it for assessment year 2000-01 in assessment year 2021 as it was a stale claim

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316111/refund-of-excess-advance-tax-deposited-for-ay-2000-01-claimed-in-ay-2021-22-can’t-be-granted-delhi-hc.aspx

Credit card exp. can’t be allowed as deduction if Co. failed to prove that same was incurred for business purpose: HC

INCOME TAX : Where directors of assessee-company were unable to adduce evidence that credit card expenses had been incurred for business purpose of assessee-company, same could not be allowed as deduction under section 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315955/credit-card-exp-can’t-be-allowed-as-deduction-if-co-failed-to-prove-that-same-was-incurred-for-business-purpose-hc.aspx