Daily Tax and Corporate Law Digest | Editorial Board
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Today’s newsletter analytically summarizes today’s top Tax & Corporate Law stories reported at?taxmann.com , in a unique section-wise format.
INCOME TAX
CBDT setups NFAC and Appeal Units under the Faceless Appeal Scheme, 2021
Editorial Note : The CBDT, vide notification No. 139/2021, dated 28-12-2021, has notified the Faceless Appeal Scheme, 2021 in supersession of the earlier Faceless Appeal Scheme, 2020. Now, the board has set up the National Faceless Appeal Centre (NFAC) and Appeal Units for the purpose of Faceless Appeal Scheme 2021
SECTION 37(1) OF THE INCOME-TAX ACT, 1961 - BUSINESS EXPENDITURE - ALLOWABILITY OF
Software licence fee : Where assessee-company claimed expenses incurred towards software licence as revenue expenditure but Assessing Officer disallowed claim of assessee, since licence was valid for one year and did not confer any enduring benefit, expense incurred by assessee to acquire software licence was revenue in nature - Commissioner of Income-tax, Chennai v. Danfos Industries (P.) Ltd. - [2021] 133 taxmann.com 266 (Madras)
Software expenditure : Where Assessing Officer treated software expenses claimed by assessee-company as capital expenditure and made addition, since components of software expenses were for running its software system and not for acquiring any new system and none of expenses was incurred for acquiring any new system or facility of enduring nature, said expenses were revenue in nature - Commissioner of Income-tax, Chennai v. Danfos Industries (P.) Ltd. - [2021] 133 taxmann.com 266 (Madras)
SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE
Comparables, functional similarity - General : Where revenue had not been able to demonstrate that analysis done by Tribunal while excluding companies suggested by revenue from list of comparables was in any manner contrary to settled position in law, appeal filed against order of Tribunal would not be maintainable - Principal Commissioner of Income-tax v. 3I India Ltd. - [2021] 133 taxmann.com 265 (Bombay)
GOODS AND SERVICES TAX LAWS
Existing GST rates in textile sector to continue beyond 1st January, 2022; changes deferred by Council: Press Release
Editorial Note : The GST Council in its 46th meeting has recommended to defer the decision to change the rates in textiles recommended in the 45th Council meeting. Consequently, the existing rates in textile sector would continue beyond 1st January, 2022.
SECTION 85 OF FINANCE ACT, 1994 - APPEALS TO THE COMMISSIONER OF CENTRAL EXCISE (APPEALS)
Writ jurisdiction of High Court is not invocable when alternative remedy of appeal is available under applicable statute - Comsat NSTPL Teleport (P.) Ltd. v. Union of India - [2021] 133 taxmann.com 355 (Telangana)
SECTION 132 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 - OFFENCES - PUNISHMENTS FOR CERTAIN OFFENCES
Where though assessee was in custody for about 75 days, in view of allegation that he availed bogus input tax credit worth of Rs. 32.5 crores, issuing fake invoice bail application deserved to be rejected - Sujay Maitra v. State of Odisha - [2021] 133 taxmann.com 257 (Orissa)
SECTION 140 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - TRANSITIONAL PROVISIONS - INPUT TAX CREDIT - TRANSITIONAL ARRANGEMENT FOR
Where assessee was unable to upload Form GST TRAN-1 on account of some unavoidable and unforeseen circumstances, Competent Authority was to be directed to either open portal and permit assessee to file Form GST TRAN-1 electronically on or before 1-11-2021 or to accept Form GST TRAN-1 from assessee filed manually before that date - Sunny Motors v. Central Board of Indirect Taxes and Customs (CBIC) - [2021] 133 taxmann.com 256 (Orissa)
COMPANY AND SEBI LAWS
CIRCULAR NO. SEBI/HO/IMD/IMD-I/DOF6/CIR/2021/700 , DATED 30-12-2021
SEBI extends the timeframe for applicability of modified reporting requirements for AIFs
Editorial Note : The SEBI, through its earlier circular No. SEBI/HO/IMD/IMD-I/DOF6/CIR/2021/549 dated April 07, 2021 specified the revised reporting requirements for AIFs to be applicable for the quarter ending December 31, 202,1 onwards. On receipt of request from AIF Industry to extend the timeline, the SEBI has decided that in partial modification to the aforesaid Circular, the modified reporting requirements shall be applicable for quarter ending September 30, 2022 onwards.
PRESS RELEASE, DATED 30-12-2021
Govt. revises pecuniary jurisdiction for entertaining complaints by consumer forums
Editorial Note : The Govt. has notified the rules for Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021. As per the rules revised pecuniary jurisdiction for entertaining consumer complaints shall be up to i) 50 lakh for District Commissions; ii) More than Rs. 50 lakh to Rs. 2 Crore for State Commissions and iii) More than Rs. 2 Crore for National Commission.
领英推荐
NOTIFICATION NO. G.S.R. 888(E), DATED 28-12-2021
MCA requires Cos. to file form IEPF-7 within 30 days of remittance of funds to bank a/c of IEPF Authority
Editorial Note : MCA specifies Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund), Third Amendment, Rules, 2021. As per the amendment rules, companies remitting any amount to the Fund is required to furnish details thereof to the Authority in Form No. IEPF-7 within thirty days from the date of remittance or within thirty days from the date of commencement of the IEPF (Accounting, Audit, Transfer and Refund), Third Amendment, Rules, 2021.
SECTION 24A OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 - COMPOSITION OF CERTAIN OFFENCES
Where directors of company, against which SEBI had initiated prosecution on its failure to comply CIS Regulations, had filed an application for compounding offence on ground that company had wound up and refunded entire amount collected under scheme to all its creditors, however, Special judge of SEBI ignored said relevant material and by impugned order declined to compound offence that too without taking views of SEBI, order passed by SEBI Special Judge was to be set aside - Vasant Jagjivandas Kotak v. Securities and Exchange Board of India - [2021] 133 taxmann.com 273 (Bombay)
COMPETITION LAW
SECTION 4 OF THE COMPETITION ACT, 2002 - PROHIBITION OF ABUSE OF DOMINANT POSITION - ABUSE OF DOMINANT POSITION
CCI can entertain plaint against a state-owned power co. for discriminating in load-shedding between different regions of a state - Tamil Nadu Generation and Distribution Corporation Ltd. v. Competition Commission of India, New Delhi - [2021] 133 taxmann.com 354 (Madras)
FEMA BANKING AND INSURANCE LAWS
NOTICE NO. II/21022/23(22) /2020- FCRA-III, DATED 31-12-2021
Govt. further extends the validity of FCRA registration certificates up to March 31, 2022
Editorial Note : In the public interest, the Govt. has further extended the validity of FCRA registration certificates up to 31-03-2022 or till the date of disposal of the renewal application, whichever is earlier. The Govt. also clarified that an extension facility is available only for such entities whose registration is expiring between 29-09-2020 and 31-03-2022 and such entity has applied or apply for renewal on the FCRA portal before the expiry the of validity of their registration certificates.
ACCOUNTS AND AUDIT
Tax Audit: Detailed Analysis of Clause 31
Editorial Note : An assessee is required to get his books of accounts audited in accordance with Section 44AB of The Income Tax Act, 1961. The Chartered Accountant conducting the tax audit is required to give his findings, observations, etc., in the form of an audit report at the e-filing portal of Income-tax in Form No. 3CA/3CB and 3CD. In this story, we discuss the reporting requirement of clause 31, which is contained in Part B of Form 3CD.
OPINIONS
25 key Income-tax rulings of the year 2021 - Editorial Team - [2021] 133 taxmann.com 378 (Article)
Dilemmas of AOPs engaged in business - V. K. Subramani, CA - [2021] 133 taxmann.com 332 (Article)
All about Non Banking Financial Companies (NBFCs) and the required compliance under RBI Act - Prof R Balakrishnan, FCS - FCWA - Pune - [2021] 133 taxmann.com 372 (Article)
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