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 2(14) OF THE INCOME TAX ACT, 1961 - CAPITAL GAINS - CAPITAL ASSET
CBDT's Circular 6/2016, which bars AO from disputing the assessee's treatment of listed shares held for more than 12 months as capital assets, is retrospectively applicable?- Commissioner of Income-tax, Kolkata-IV v. Century Plyboards (I) Ltd. - [2023] 148 taxmann.com 301 (Calcutta)
SECTION 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Interest - Interest paid by the branch to head office:?Interest paid by the Indian Branch of the assessee-Japanese bank to its overseas head office was not chargeable to tax in India?- Deputy Commissioner of Income-tax v. Mizuho Bank Ltd. - [2023] 147 taxmann.com 523 (Mumbai - Trib.)
Royalties/fees for technical services - Vessel hire charges:?Where assessee, a UAE-based company, entered into a time charter contract for transporting coal from one port to another through its ship since control of equipment remained with the assessee, and there was no absolute right to use of the vessel to charterer, the payment received by the assessee from time charter of the vessel was not in nature of royalty and, hence, same was not taxable under section 9(1)(vi)?- Nan Lian Ship Management LLC v. ACIT (Int. Tax) - [2023] 147 taxmann.com 524 (Mumbai - Trib.)
SECTION 10A OF THE INCOME-TAX ACT, 1961 - FREE TRADE ZONE
Rental income:?Where assessee-company had taken on lease a certain area in STPI (Software Technology Park Of India) and had sub-leased portion of same to two units, rental income received by the assessee from said two units would be eligible for deduction under section 10A?- Principal Commissioner of Income-tax v. Infosys Ltd. - [2023] 147 taxmann.com 520 (Karnataka)
SECTION 28(i) OF THE INCOME-TAX ACT, 1961 - BUSINESS DEDUCTION/LOSS - ALLOWABLE AS
Penny stock shares:?Where Principal Commissioner invoked revisionary proceedings with respect to the issue of loss on penny stock on the ground that AO failed to do proper verification since AO in the notice under section 143(2) directed the assessee to furnish documents with respect to the issue and thereafter, the assessee submitted an explanation in respect of allowability of loss and also explained various queries raised by AO on said issue, revisionary order was to be quashed?- Principal Commissioner of Income-tax v. Kaushalya Dealers (P.) Ltd. - [2023] 147 taxmann.com 526 (Calcutta)
SECTION 115JB OF THE INCOME-TAX ACT, 1961 - MINIMUM ALTERNATE TAX
Financial corporation, in the case of Section 115JB, deals with only those companies which are registered under the Companies Act and not deemed companies as per provision of section 2(17) or 2(26) and, thus, assessee, a financial corporation could not be termed as a company within the meaning of section 2(17) and consequently, section 115JB could not be made applicable to it?- Deputy Commissioner of Income-tax v. Rajasthan Financial Corporation - [2023] 147 taxmann.com 525 (Jaipur - Trib.)
GOODS AND SERVICES TAX LAWS
SECTION 2(119) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - WORKS CONTRACT
Supply of construction of Road Service is a composite supply of work contract and attracts a concessional rate of GST at a rate of 6 per cent from l-7-2017 to 17-7-2022 and attract GST at a rate of 18 per cent with effect from 18-7-22 onwards?- ITL-KCPL JV, In re - [2023] 148 taxmann.com 305 (AAR - GUJARAT)
Design and construction of utility service is a composite supply of work contract but MBSIRDA is not a local authority; therefore, not covered under entry No. 3 (iii) of Notification No. 11/20l7-CT-(Rate) Dated 28-6-17 and attracts GST at a rate of 18 per cent?- ITL-KCPL JV, In re - [2023] 148 taxmann.com 305 (AAR - GUJARAT)
Supply of design and construction of Roads and utility Services of TP-1 Area do not constitute composite supply?- ITL-KCPL JV, In re - [2023] 148 taxmann.com 305 (AAR - GUJARAT)
SECTION 9 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY & COLLECTION OF TAX
High Court of Bombay at Goa has jurisdiction when tax is levied by the Government of Goa in respect of business that the petitioning company is carrying on within the territory of Goa, and such tax is not payable by the petitioning company in respect of carrying on of any business in the territory of Sikkim. Therefore, the State of Goa shall stand deleted from the array of respondents?- State of Goa v. Summit Online Trade Solutions (P.) Ltd. - [2023] 148 taxmann.com 299 (SC)
The high court essentially has to arrive at a conclusion whether the cause of action has arisen within its jurisdiction on the basis of averments made in the petition memo treating the contents as true and correct?- State of Goa v. Summit Online Trade Solutions (P.) Ltd. - [2023] 148 taxmann.com 299 (SC)
SECTION 16 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - ELIGIBILITY AND CONDITIONS FOR TAKING CREDIT
Writ petition against show cause notice seeking reversal of input tax credit is pre-mature; High Court directs adjudicating authority to offer one more personal hearing and taxpayer-petitioner to appear before such authority?- S. Kaja Mohideen v. Commissioner of GST & Central Excise - [2023] 148 taxmann.com 304 (Madras)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REFUND - TAX, REFUND OF
The department cannot ignore appellate order directing refund in case of inverted tax structure on the ground that it proposes to file an appeal before the Appellate Tribunal; High Court directs authority to consider refund claim?- Saurabh Singal v. Central Goods & Services Tax - [2023] 148 taxmann.com 294 (Delhi)
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
Where communication was issued by Joint Commissioner to the petitioner stating that the Commissioner of CGST was of the opinion that points raised in an application for rectification were not covered under section 74 of CGST Act, 2017 and said application was stood disposed of, said communication was to set aside as Commissioner who passed Order-in-Original was required to deal with an application for rectification of mistake as per section 74(1)?- ICFAI University Sikkim v. Union of India - [2023] 148 taxmann.com 300 (SIKKIM)
SECTION 107 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - APPELLATE AUTHORITY - APPEALS TO
Appeal rejected on the ground of limitation will leave petitioner without remedy as GST Tribunal had not been constituted; High Court remands the matter to original authority for fresh decision?- Sudhakar Bodala v. Goods and Service Tax Officer - [2023] 148 taxmann.com 302 (Andhra Pradesh)
COMPANY AND SEBI LAWS
MCA NOTIFICATION S.O. 1269(E), DATED 17-03-2023
Govt. establishes C-PACE, to fasten the voluntarily winding up process
Editorial Note:?Finance Minister Nirmala Sitharaman during Budget speech 2022 said “Center for accelerated corporate exit to be set up to accelerate corporate exits. The MCA has established the Centre for Processing Accelerated Corporate Exit (C-PACE). The C-PACE be located at the Indian Institute of Corporate Affairs (IICA), Manesar, Gurugram. It will be effective from 01st April, 2023.
SECTION 18 OF THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985 - PREPARATION AND SANCTION OF SCHEMES
Unsecured have to accept the scaled-down value of their dues as provided under the rehabilitation scheme sanctioned by BIFR u/s 18 of SICA?- Modi Rubber Ltd. v. Continental Carbon India Ltd. - [2023] 148 taxmann.com 306 (SC)
INSOLVENCY AND BANKRUPTCY CODE
SECTION 3(7) OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - CORPORATE PERSON
Where an NBFC stood as guarantor in respect of a corporate debtor, section 3(7) having categorically excluded financial institutions from the definition of the corporate person, NCLT committed an error in admitting the application filed by a financial creditor under section 7 against such guarantor?- Nirmal Kumar Agarwal v. State Bank of India - [2023] 147 taxmann.com 495 (NCLAT- New Delhi)
领英推荐
SECTION 30 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - RESOLUTION PLAN - SUBMISSION OF
Where NCLT allowed an application of CoC seeking consideration of a new resolution plan of a third party subsequent to an already approved resolution plan, since neither there was any irregularity in the already approved resolution plan nor was it against provisions of section 30(2), order of NCLT was to be set aside?- Kalinga Allied Industries India (P.) Ltd. v. Committee of Creditors (Bindols Sponnge Industries Ltd.) - [2023] 147 taxmann.com 494 (NCLAT- New Delhi)
SECTION 60 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE PERSON'S ADJUDICATING AUTHORITIES - ADJUDICATING AUTHORITY
Where there was no error or default on the part of the liquidator in approaching NCLT regarding the distribution of accumulated profit of the corporate debtor, an appeal was filed by the appellant ex-director of the corporate debtor on the ground that neither liquidator was authorized to file an application for distribution nor NCLT was competent to the grant permission to distribute funds among stakeholders was an abuse of process of court and same was to be dismissed?- Yogesh Singh v. Supriyo Kumar Chaudhuri, (Liquidator of JVL Agro Industries Ltd.) - [2023] 147 taxmann.com 496 (NCLAT- New Delhi)
OPINIONS
RD slashes penalty imposed on Company for violating private placement norms as non-compliant allotment was cancelled -?Prof R Balakrishnan, FCS - FCWA - [2023] 148 taxmann.com 307 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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