Daily Tax & Corporate Law Digest
Dear Reader,
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 4 OF THE INCOME-TAX ACT, 1961 - INCOME - CHARGEABLE AS
Undisclosed sales: Where pursuant to search upon assessee-company and other persons Assessing Officer made additions to the income of the assessee on account of undisclosed sales by placing sole reliance on invoices recovered from the residence of an ex-president of the assessee and on statements recorded from ex-employees and dealers of the assessee, in view of the fact that no any incriminating material was recovered from premises of assessee, impugned addition made without giving assessee opportunity to cross-examine said ex-employees and dealers, was unjustified - DSG Papers (P.) Ltd. v. ACIT/Dy.CIT - [2023] 147 taxmann.com 195 (Chandigarh - Trib.)
SECTION 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Dividend - Rate of Tax: Notice issued in SLP against the High Court's order that a dividend received by a Switzerland-based company from an Indian company would bear a lower withholding tax rate of 5 per cent instead of 10 per cent in view of the MFN clause and DTAA between India and Switzerland - Income-tax Officer v. Cotecna Inspection SA - [2023] 147 taxmann.com 194 (SC)
SECTION 12AA OF THE INCOME-TAX ACT, 1961 - CHARITABLE OR RELIGIOUS TRUST - REGISTRATION PROCEDURE
Grant of registration: Where Commissioner (Exemption) denied registration under section 12AA to assessee-trust on grounds that assessee-trust was not carrying any charitable activities and merely made donations since Commissioner (Exemption) had not recorded any finding that object of trust was not charitable in nature and no material was brought on record to prove that donations were made with ulterior motives, the assessee was entitled to get registration under section 12AA - Commissioner of Income-tax (Exemption) v. Vijay Kumar Bajoria Foundation - [2023] 147 taxmann.com 203 (Calcutta)
SECTION 80-IB OF THE INCOME-TAX ACT, 1961 - DEDUCTIONS - PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS
Filing of return: No deduction shall be allowed under section 80-IB(10) if not claimed in the return of income - Income-tax Officer v. Jagtap Patil Promoters & Builders - [2023] 147 taxmann.com 199 (Pune - Trib.)
SECTION 148A OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - CONDUCTING INQUIRY, PROVIDING OPPORTUNITY BEFORE ISSUE OF NOTICE
Writ remedy: Writ petition filed by the assessee challenging show cause notices issued under unamended section 148 and order passed under section 148A(d) was not maintainable in view of the availability of the alternative efficacious remedy of appeal under section 246 - Harinder Singh Bedi v. Union of India - [2023] 147 taxmann.com 197 (Madhya Pradesh)
GOODS AND SERVICES TAX LAWS
Advisory on New e-Invoice Portal: GSTN Update
Editorial Note: GSTN has issued an update to inform that it has onboarded four new IRPs (Invoice Reporting Portals) for reporting e-invoices in addition to NIC-IRP. As a result, the beta launch of a new e-Invoice portal (https://www.einvoice.gst.gov.in), has been done where taxpayers can find comprehensive information on e-invoice compliance in a user-friendly format.
SECTION 10 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - COMPOSITE LEVY
Taxpayers cannot be denied cancellation of registration under a composition scheme with retrospective effect merely on the ground that the portal lacks such functionality; High Court directs the department to fix glitches in the GST portal and allow cancellation registration under a composition scheme with retrospective effect - SKP Pharmachem v. Union of India - [2023] 147 taxmann.com 535 (Gujarat)
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Authority while going through the rental agreement should have taken into consideration that the place of business had changed and the opportunity should have been given before rejecting the appeal confirming the order of cancellation of registration; High Court directs fresh consideration by Appellate Authority - Sharp Print Ways v. State of U P - [2023] 147 taxmann.com 533 (Allahabad)
SECTION 30 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - REVOCATION OF CANCELLATION OF
Period spent in writ proceedings shall be excluded from the statutory period of three months within which application for revocation of cancellation of registration is required to be filed; High Court directs payment of dues and filing of an application for revocation - GSM Industries v. Union of India - [2023] 147 taxmann.com 531 (Gujarat)
SECTION 73 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - TAX OR INPUT TAX CREDIT DUE NOT INVOLVING FRAUD MISSTATEMENT OR SUPPRESSION
Refund of the amount deposited consequent to demand by the department cannot be allowed when the assessee has neither produced evidence to prove such deposit was made under protest nor made a submission against such demand in Part B of Form DRC 01A - D. Murali Mohan Patanaik v. Secretary to Government of Odisha - [2023] 147 taxmann.com 532 (Orissa)
SECTION 74 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY– TAX OR INPUT TAX CREDIT INVOLVING FRAUD OR MISSTATEMENT OR SUPPRESSION
Show cause notice being cryptic and bald and order without considering the reply to notice are not sustainable; High Court directs fresh consideration - Hind Aluminium Company v. Assistant Commissioner (ST) - [2023] 147 taxmann.com 530 (Madras)
SECTION 132 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - OFFENCES - PUNISHMENTS FOR CERTAIN OFFENCES
High Court grants bail in a case relating to the issuance of invoice without a supply of goods subject to conditions - Khem Chand Thathera v. State of Rajasthan - [2023] 147 taxmann.com 534 (Rajasthan)
Where pursuant to search action under section 132 in the case of 'B' Group, certain documents were found and seized based on which show cause notice under section 148 was issued to the assessee, however, there was no link of the assessee with the entire material found out during search, notice was to be issued to revenue authority to file affidavit-in-reply and also point out a link in this case - Kishor Narayan Lal v. Income-tax Officer - [2023] 147 taxmann.com 200 (Gujarat)
COMPANY AND SEBI LAWS
RULE 7 OF THE SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995 - SERVICE OF NOTICES AND ORDERS
Where SEBI directed appellants and other notices to refund money collected by the company from investors during their respective tenure as directors along with interest, however, adequate service of show cause notice was not made upon appellants and the matter proceeded ex parte, impugned order in so far as it related to appellants was to be remitted to WTM for adjudication afresh - Shree Krishan Choudhary v. Securities & Exchange Board of India - [2023] 147 taxmann.com 229 (SAT - Mumbai)
领英推荐
FEMA BANKING AND INSURANCE LAWS
SECTION 45 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 - OFFENCES TO BE COGNIZABLE AND NON-BAILABLE
The rigours of section 45 of PMLA shall apply to grant of anticipatory bail u/s 438 of Cr.PC if the bail application is in relation to money laundering offence - Directorate of Enforcement v. M. Gopal Reddy - [2023] 147 taxmann.com 539 (SC)
INSOLVENCY AND BANKRUPTCY CODE
SECTION 53 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE LIQUIDATION PROCESS - ASSETS, DISTRIBUTION OF
Where a property had been sold in an auction sale on 'as is where is' basis in liquidation under IBC, the auction purchaser would not be liable to pay pre-CIRP outstanding dues of electricity connection before getting a new electricity connection as the auction purchaser had no possible nexus whatsoever with borrower-company - Rashidhan Sales (P.) Ltd. v. Damodar Valley Corporation - [2023] 147 taxmann.com 537 (Calcutta)
OPINIONS
Settlement Agreement: A Corporate Debtor’s Resolution Plan and Need for Conditional Withdrawal Under Section 12A - Vinayak Padmakshan, Graduate Insolvency Professional, Indian Institute of Corporate Affairs - [2023] 147 taxmann.com 528 (Article)
Authorised Representatives: Allusive partakers to thrust promising resolution under IBC - Yash Gupta, Advocate, Student of Graduate Insolvency Programme (GIP) - [2023] 147 taxmann.com 538 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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