Daily Tax & Corporate Law Digest
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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 14A OF THE INCOME-TAX ACT, 1961 - EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME
Scope of provision: Where shares were held by the assessee, housing finance company, as stock-in-trade, dividend earned on said shares would not attract section 14A - Principal Commissioner of Income-tax v. Ms. PNB Housing Finance Ltd. - [2023] 146 taxmann.com 445 (Delhi)
SECTION 23 OF THE INCOME-TAX ACT, 1961 - INCOME FROM HOUSE PROPERTY - ANNUAL VALUE
Computation of: Where assessee let out house property to his daughter at amount of Rs. 5500 per annum and the Assessing Officer having found that in just preceding year same property was let out by assessee to a company for a period of six months and rent received was Rs. 11 lacs estimated annual let out value of property at Rs. 24.20 lacs, as Assessing Officer had only considered disparity of rent in assessee's own property, assessment order did not require interference - Atul Chandrakant Kirloskar v. Deputy Commissioner of Income-tax - [2023] 146 taxmann.com 439 (Pune - Trib.)
SECTION 36(1)(viii) OF THE INCOME-TAX ACT, 1961 - FINANCIAL CORPORATION, RESERVE CREATED BY
Illustration: Where assessee-housing finance company computed deduction under section 36(1)(viii) by considering 62 per cent of total interest receipt on housing loan as interest on long-term housing loan since said computation was upheld by Commissioner (Appeals) in earlier year, such computation could not be recalculated by Assessing Officer by considering total receipt of business - Principal Commissioner of Income-tax v. Ms. PNB Housing Finance Ltd. - [2023] 146 taxmann.com 445 (Delhi)
SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE
Adjustment - Interest: In event working capital adjustment subsumes outstanding receivables, no separate adjustment should be made on account of outstanding receivables - AB INBEV GCC Services India (P.) Ltd. v. Deputy Commissioner of Income-tax - [2023] 146 taxmann.com 438 (Bangalore - Trib.)
SECTION 234A OF THE INCOME-TAX ACT, 1961 - INTEREST, CHARGEABLE AS
Where assessee, deriving income under head salary and interest income, had failed to deposit return of income under section 139 however filed same in response to notice issued under section 148, since assessee paid self-assessment tax along with interest on 19-3-2015, impugned interest levied under sections 234A, 234B and 234C beyond said date, till date of completion of assessment i.e. 29-11-2018, was to be deleted - Dhirendra Narbheram Sheth v. Income-tax Officer Ward-2(3)(5), Rajkot - [2023] 147 taxmann.com 150 (Rajkot - Trib.)
SECTION 250 OF THE INCOME-TAX ACT, 1961 - COMMISSIONER (APPEALS) - PROCEDURE OF
Maintainability of appeal: Where Commissioner (Appeals) did not admit appeal filed by S (AOP) for adjudication on ground that PAN of B (Individual) was used to file appeal by S (AOP), defect in Form No. 35 is a curable defect and thus Commissioner (Appeals) was to be directed to issue defect memo to assessee to remove defect and thereafter to adjudicate appeal on merits - Bhaveshbhai Arvindbhai Buha v. Income-tax Officer - [2023] 146 taxmann.com 441 (Surat-Trib.)
SECTION 263 OF THE INCOME-TAX ACT, 1961 - REVISION - OF ORDERS PREJUDICIAL TO INTEREST OF REVENUE
Issue of order manually without DIN: Where Commissioner took revisional proceedings against assessee and issued order dated 24-3-2022 under section 263 manually without a Document Identification Number, as there was no exceptional circumstances as mentioned in Circular No. 19/2019, dated 14-8-2019 to issue said order without DIN, impugned order was invalid and would be deemed to have never been issued - Dilip Kothari v. Principal Commissioner of Income-tax (Central) - [2023] 146 taxmann.com 442 (Bangalore - Trib.)
GOODS AND SERVICES TAX LAWS
CLASSIFICATION OF GOODS
Namkeens: Where savoury snacks manufactured by applicant-manufacturer which are deemed as preparations that are utilized either directly or after processing for human consumption are classified under residuary heading CTH2106 of Customs Tariff Act and falls under Entry No. 46 of Notification No. 1/2017-CT (Rate), dated 28-6-2017 that attracts GST at 12% - Prajapati Keval Dineshbhai, In re - [2023] 147 taxmann.com 154 (AAR - GUJARAT)
Dry Starch Powder - Potato Starch: Dry starch powder which is a by product of manufacturing aloo sev, potato chips and potato sticks by applicant-manufacturer is classified under CTH heading No 1108 and falls under Entry No. 18 of Notification No. 1/2017-CT (Rate), dated 28-6-2017 as amended which attracts GST tax rate at 12% - Prajapati Keval Dineshbhai, In re - [2023] 147 taxmann.com 154 (AAR - GUJARAT)
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Cancelled registration was to be restored on payment of tax with interest and fine in terms of Suguna Cutpiece Centre case law - Balaguru Kathiresan v. Superintendent of CGST and Central Excise, Virdhunagar - [2023] 147 taxmann.com 153 (Madras)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REFUND - TAX, REFUND OF
Notice being neither received by Petitioners nor made available on GSTN portal before rejecting claim of petitioners for refund under Section 54 of CGST Act, 2017, opportunity of hearing to Petitioners as envisaged under Rule 92 of CGST Rules, 2017 impaired; application restored - Adisan Laboratories Pvt. Ltd. v. Union of India - [2023] 147 taxmann.com 152 (Bombay)
COMPANY AND SEBI LAWS
CIRCULAR NO. SEBI/HO/DDHS/DDHS-RACPOD1/CIR/P/2023/028, DATED 09-02-2023
First-time issuers of NCDs may alter AoA to appoint a nominee of Debenture Trustee within 6 months from the listing date: SEBI
Editorial Note: SEBI recently mandated the issuer companies to include provisions in their AoA, with respect to the requirement for the board to appoint a person nominated by the debenture trustee. The regulations also provide a time period till 30.09.2023 for existing issuers. Consequently, after receiving representations from first time issuers, the SEBI advised exchanges to take an undertaking from first-time issuers that they will ensure that their AoA is amended within 6 months from the listing date.
SECTION 34 OF THE ADVOCATES ACT, 1961 - POWER OF HIGH COURT TO MAKE RULES
High Courts can frame rules for dress code for the appearance of Advocates before it, Courts and Tribunals, subordinate to it; Tribunals have no power to prescribe dress code, more so when it is contrary to Bar Council of India Rules - R. Rajesh v. Union of India - [2023] 147 taxmann.com 149 (Madras)
SECTION 212 OF THE COMPANIES ACT, 2013 - SERIOUS FRAUD INVESTIGATION OFFICE - INVESTIGATION BY
Where investigation by SFIO revealed that applicant being stock auditor of Bhushan Steel had failed to perform his duties diligently by not verifying stock in transit and he colluded with office bearers of Bhushan Steel, in view of fact that applicant was not an auditor of Bhushan Steel during period under investigation applicant was not guilty of offence of which he was charged and, thus, bail application of applicant was to be allowed - Sunil Bhatia v. Serious Fraud Investigation Office - [2023] 146 taxmann.com 522 (Delhi)
ACCOUNTS AND AUDIT
SRSB of ICAI has issued “A Primer on the Concept of Social Stock Exchange”
Editorial Note: Social Stock Exchange (SSE) is a new concept in India, developed to strengthen the social sector in the country and Sustainability Reporting Standards Board (SRSB) is playing a pivotal role in development of profession of social auditors. In this context SRSB has released this publication covering key concepts of SSE, important requirements of SEBI and overview of SSEs established across the world. It will assist members and other stakeholders to get insights into key concepts of SSE.
Funds provided to set up infrastructure facility will be recognized as revenue at or over the period of life of the facility
领英推荐
Editorial Note: Para 38 of Ind AS 115 states that in order to determine the point in time at which a customer obtains control of a promised asset and the entity satisfies a performance obligation, the entity shall consider the requirements for control. Control refers to the ability to direct the use of and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset.
OPINIONS
Inventory Valuation at AO’s Behest Will Make Businesses Busy & Not Easy!! - Mayank Mohanka, Senior Partner in M/s. S M Mohanka & Associates & Founder Director in Tax Aaram India Pvt. Ltd. - [2023] 147 taxmann.com 157 (Article)
Budget 2023 – Focused rationalization of provisions on Charitable Trust and Institutions - Amit K, CA, Mansi Modi, CA - [2023] 147 taxmann.com 147 (Article)
See-saw up and down! DRP orders will be appealable now! - Paras S. Savla, Advocate, Harsh R. Shah, Advocate, Pratik B. Poddar, Advocate - [2023] 147 taxmann.com 159 (Article)
Union Budget 2023-2024: A synopsis of the notable direct tax and indirect tax proposals of the Finance Bill, 2023 - Arjun Gupta, Advocate, Bombay High Court - [2023] 147 taxmann.com 160 (Article)
Implications of amendment in Section 43B to taxpayers and SMEs - Yogesh Shah, Partner, Deloitte Haskins and Sells LLP, Aparna Parelkar, Senior Manager, Deloitte Haskins and Sells LLP, Parshva Mehta, Deputy Manager, Deloitte Haskins and Sells LLP - [2023] 147 taxmann.com 182 (Article)
World Tax News: OECD releases guidance for implementing minimum tax and more…… - Taxmann, Editorial Team - [2023] 147 taxmann.com 180 (Article)
Claim refund, if excess tax paid on Royalty - Anshul Mittal, Partner, RSA Legal Solutions - [2023] 147 taxmann.com 181 (Article)
The interplay of Section 31 of the IBC and Section 16 of the CGST Act - Vibhor Sharma, CA - [2023] 147 taxmann.com 137 (Article)
Analysis of proposed amendment in Section 17(3) of CGST Act, 2017 - Muskaan Biyani, CA - [2023] 147 taxmann.com 135 (Article)
A Brief About Foreign Direct Investment in India - Gaurav Keswani, Company Secretary - [2023] 147 taxmann.com 158 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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