Daily Tax & 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
SECTION 24 OF THE INCOME-TAX ACT, 1961 - INCOME FROM HOUSE PROPERTY - DEDUCTIONS
Interest on loan:?Where the assessee-company borrowed a home loan from the bank for purchasing certain let-out flats and further borrowed another loan to repay said earlier loan, interest paid by the assessee on such later amount of loan borrowed by it was also to be allowed as deduction under section 24(b); deduction under section 24(b) could not be denied merely because bank certificate wrongly showed interest as 'business loan interest' instead of 'home loan interest'?- Subir Kumar Banerjee v. Assistant Commissioner of Income-tax (OSD) - [2022] 139 taxmann.com 413 (Nagpur - Trib.)
SECTION 68 OF THE INCOME-TAX ACT, 1961 - CASH CREDIT
Reassessment:?Where assessee received a loan from various parties and Assessing Officer after considering responses of loan providers completed assessment under section 143(3), reopening of assessment on the ground that source of the loan remained explained was purely based on change of opinion and thus not sustainable?- Vapi Infrastructure and Industrial Township LLP v. Income-tax Officer - [2022] 139 taxmann.com 412 (Bombay)
SECTION 80P OF THE INCOME-TAX ACT, 1961 - DEDUCTIONS - INCOME OF CO-OPERATIVE SOCIETIES
The opportunity of hearing:?Where there were variations proposed in impugned assessment order as regards deduction under section 80P, however, no opportunity had been given to assessee by serving show cause notice along with draft assessment order calling upon him to show cause as to why proposed variation should not be made, impugned assessment order having being passed in gross violation of principles of natural justice as well as mandatory provision in form of section 144B was to be quashed and set aside?- Sardar Co-op. Credit Society Ltd. v. Additional/Joint/Deputy/Assistant Commissioner of Income-tax - [2022] 139 taxmann.com 414 (Gujarat)
SECTION 246A OF THE INCOME-TAX ACT, 1961 - COMMISSIONER (APPEALS)
Revenue's appeal is to be rejected in limine if Revenue did not appeal against an identical CIT(A) order in past in a non-low-tax-effect case?- Income Tax Officer, 15(2)(2) v. Niche Health Options (P.) Ltd. - [2022] 140 taxmann.com 40 (Mumbai - Trib.)
SECTION 264 OF THE INCOME-TAX ACT, 1961 - REVISION - OF OTHER ORDERS
Writ jurisdiction:?Writ petition again the order of the commissioner under section 264 was not maintainable where assessee with the sole intention of avoiding payment of the huge amount of tax determined in the assessment order had deliberately chosen forum of revision under section 264 with a view to making out a case to come up before High Court again under Article 226 of Constitution?- Unisource Hydro Carbon Services (P.) Ltd. v. Union of India - [2022] 139 taxmann.com 411 (Calcutta)
GOODS AND SERVICES TAX LAWS
NOTIFICATION NO. 16/2015-20, DATED 01-07-2022
Amendment in FTP to extend IGST & Compensation Cess exemption on imports under AA/EPCG etc.
Editorial Note:?The exemption of IGST and Compensation Cess on the import of goods under Advance Authorisation, EPCG and EOU has been extended without any time restrictions. The corresponding amendment is made under FTP 2015-20 under Para 4, 5 and 6 to provide for exemption from IGST and Compensation cess on imports under the above-specified export incentive schemes.
NOTIFICATION NO. 15/2015-2020, DATED 01-07-2022
Last date to submit application under MEIS for exports made between 01.09.2020 to 31.12.2020 extended till 31.08.2022
Editorial Note:?The last date for submitting application under MEIS for exports made between 01.09.2020 to 31.12.2020 has been extended till 31.08.2022. In this regard, notification has been issued.
CLASSIFICATION OF GOODS
Mango pulp/puree :?Mango pulp/puree is classifiable under tariff item 0804 and GST is payable at 18%?- Foods and Inns Ltd., In re - [2022] 139 taxmann.com 464 (AAAR - Andhra Pradesh)
CLASSIFICATION OF SERVICES
Service of permitting movement of coal through forest area against collection of permit fee is not classifiable under SAC 9973 as it pertains to 'Leasing or rental services without an operator'?- Singareni Collieries Company Ltd., In re - [2022] 140 taxmann.com 43 (AAR- TELANGANA)
Warehouse services:?Lien or mortgage charges and stock transfer fees received for providing warehouse services are not exempted from GST; Only services similar to those mentioned in the notification are covered under exemption?- Haryana State Warehousing Corporation, In re - [2022] 140 taxmann.com 44 (AAAR-Haryana)
SECTION 6 OF THE KARNATAKA TAX ON LOTTERIES ACT, 2004 - LEVY OF TAX
Betting and gambling is a State subject except to extent of State being denuded of its powers insofar as Entry 40 of List I (Lotteries organised by Government of India or Government of State) is concerned?- State of Karnataka v. State of Meghalaya - [2022] 139 taxmann.com 454 (SC)
Taxation contemplated under Entry 62 of List II of the Constitution is on 'betting and gambling' activities which also includes lotteries, irrespective of the entity conducting same; hence, Karnataka Tax on Lotteries Act, 2004 and Kerala Tax on Paper Lotteries Act, 2005 are valid as these two State Legislatures possessed legislative competence to enact such Acts?- State of Karnataka v. State of Meghalaya - [2022] 139 taxmann.com 454 (SC)
Entry 40 of List I of the Constitution does not deal with the power to impose taxation on lotteries?- State of Karnataka v. State of Meghalaya - [2022] 139 taxmann.com 454 (SC)
Since lotteries of other States which are organised in States of Karnataka or Kerala require registration of agents in these States, there is sufficient territorial nexus between lottery organising States and States of Karnataka and Kerala; thus, these State Legislatures had legislative competence to impose a tax on lotteries conducted by other States in their State?- State of Karnataka v. State of Meghalaya - [2022] 139 taxmann.com 454 (SC)
Both Karnataka Tax on Lotteries Act, 2004 and Kerala Tax on Paper Lotteries Act, 2005 seek to levy tax on lottery schemes organized by the Government of India or the Government of a State or a Union Territory or any other country having a bilateral agreement or treaty with the Government of India except lotteries except organized by private entities?- State of Karnataka v. State of Meghalaya - [2022] 139 taxmann.com 454 (SC)
SECTION 7 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - SUPPLY - SCOPE OF
Forest permit fee paid to Forest Department for allowing movement of extracted coal through forest area is liable to GST under reverse charge mechanism as it is treatable as consideration for tolerating an act or a situation?- Singareni Collieries Company Ltd., In re - [2022] 140 taxmann.com 43 (AAR- TELANGANA)
Distribution of coupons among employees for availing canteen service is not a taxable activity and GST is not liable to be paid as such service is provided under legal obligation?- Musashi Auto parts India (P.) Ltd., In re - [2022] 139 taxmann.com 453 (AAAR-Haryana)
SECTION 15 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - TAXABLE SUPPLY - VALUE OF
Value for supply of used car shall be the difference between the consideration received for supply of said car and the depreciated value on the date of supply and applicable GST rate is 18%?- Dishman Carbogen Amcis Ltd., In re - [2022] 140 taxmann.com 42 (AAR - GUJARAT)
SECTION 17 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - CREDIT AND BLOCKED CREDITS, APPORTIONMENT OF
Input tax credit is not available to employer in respect of GST charged by vendor/service provider for providing canteen service to its employees?- Musashi Auto parts India (P.) Ltd., In re - [2022] 139 taxmann.com 453 (AAAR-Haryana)
Input tax credit is not available in respect of GST paid on edible items like sweets, dry fruits, electronic items and gold and silver coins distributed to customers and agents as these items are given for personal use/consumption?- Musashi Auto parts India (P.) Ltd., In re - [2022] 139 taxmann.com 453 (AAAR-Haryana)
领英推荐
SECTIONS 112 OF THE CUSTOMS ACT, 1962 - PENALTY FOR IMPROPER IMPORTATION OF GOODS, ETC.
Where huge amount of gold jewelleries and liquors brought by air passengers, claimed to have come to India for pilgrimage, were found to be undeclared, confiscation of goods and imposition of redemption fine and penalties were justified?- Chandrasegaram Vijayasundaram v. Principal Commissioner - [2022] 140 taxmann.com 39 (Madras)
FEMA BANKING AND INSURANCE LAWS
NOTIFICATION NO. S.O. 3025(E), DATED 01-07-2022
Govt. increases the quantum of penalty for acceptance of foreign contribution in contravention of FCRA
Editorial Note:?The Government has increased the amount of penalty for an offence punishable u/s 35 for accepting a foreign contribution in contravention of section 11 of the Act. Accordingly, the amount of penalty is Rs. 1,00,000 or 30% of foreign contribution received whichever is higher. Earlier, the amount of penalty prescribed for accepting a foreign contribution in contravention of section 11 of the Act was Rs. 1,00,000 or 10% of the foreign contribution received, whichever is higher.
RESOLUTION F. NO. 14/1/2022-BO-I, DATED 01-07-2022
Govt. constitutes ‘FSIB’ to recommend persons for appointment as WTD and Chairman of financial services institutions
Editorial Note:?The Government has constituted a new authority named Financial Services Institutions Bureau (FISB). The FISB will recommend persons for appointment as whole-time directors (WTDs) and non-executive chairpersons (NECs) on the Boards of various financial service institutions like Public Sector Banks, financial institutions and the Public Sector Insurers. FISB will also advise on certain other matters relating to personnel management in these institutions.
NOTIFICATION NO. IFSCA/2022-23/GN/REG025, DATED 29-06-2022
IFSCA amends the International Financial Services Centres Authority (Banking) Regulations, 2020
Editorial Note:?IFSCA has notified the International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2022. Amendment has been made to regulation 2. A new clause relating to “Representative Office” has been added which means a financial institution set up by its Parent Bank in IFSC for undertaking any one or more of the following activities, namely – marketing of financial products, collection of data and carrying out of outreach operations.
NOTIFICATION NO. G.S.R. 506(E), DATED 01-07-2022
Govt. relaxes Foreign Contribution norms; hikes limit for intimation on receipt of foreign contribution from relatives
Editorial Note:?The Govt. has notified the Foreign Contribution (Regulation) Amendment Rules, 2022. Now any person receiving a foreign contribution in excess of Rs. 10 lakh or equivalent thereto in an F.Y from any of his relatives shall inform the Government regarding the details of the foreign contribution received by him in e-form in Form FC-1 within 3 months from the date of receipt of such contribution. Earlier the threshold limit was Rs. 1 lakh for contribution and the timeline for intimation was 30 days.
CIRCULAR NO. RBI/2022-23/79 DCM(NPD)NO.S488/18.00.14/2022-23, DATED 01-07-2022
RBI directs banks to conduct a quarterly test for the ‘Note Sorting’ machines
Editorial Note:?The RBI, considering the introduction of the new series of banknotes, has reviewed the Note Authentication and Fitness Sorting Parameters for the Note Sorting Machines installed in the banks. RBI directed that banks shall ensure that the Note Sorting machines are tested for accuracy and consistency on a quarterly basis and recalibrated. RBI has prescribed in the detailed norms w.r.t. Fitness Sorting of the notes. The guidelines are made effective immediately.
INSOLVENCY AND BANKRUPTCY CODE
SECTION 25 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - RESOLUTION PROESSIONAL
Duties of:?Where Resolution Professional gave the undue advantage of a much higher voting share than was permissible to respondent No. 4, in the constitution of Committee of Creditors due to which liquidation of the corporate debtor was ordered, Resolution Professional could not be absolved of certain actions of omission and commission, which had caused prejudice to the appellant - homebuyers and should be replaced and the matter was to be remanded back to Adjudicating Authority for taking action in accordance with provisions of IBC?- Bimalesh Bhardwaj v. Value Infratech India (P.) Ltd. - [2022] 139 taxmann.com 457 (NCLAT- New Delhi)
OPINIONS
Overview of TDS on VDAs -?Yash Dhanuka, Proprietor, Dhanuka Yash & Associates, CS Ruchit Mehrotra, M.N. Dastur & Company (P) Ltd. - [2022] 140 taxmann.com 47 (Article)
Section 194R: Rocky Road ahead -?Ankita Chowdhry, Chartered Accountant, Kashif Ali, Chartered Accountant, Sweta Parameswaran, Chartered Accountant - [2022] 140 taxmann.com 46 (Article)
Journey of five years of GST- An analysis -?CA Manoj Nahata, B.COM. (HONS), FCA, DISA (ICAI) - [2022] 140 taxmann.com 45 (Article)
Five years of GST Regime – GST issues and challenges -?Ramesh Chandra Jena, Advocate & Tax Consultant - [2022] 140 taxmann.com 38 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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