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
CORRIGENDUM TO NOTIFICATION NO. 02 OF 2024, DATED 04-04-2024
CBDT issues corrigendum to notification on time limit to verify Income-tax Returns
Editorial Note : The CBDT issues a corrigendum to the notification issued on the time limit to verify Income-tax returns. Para 5 of the notification is amended to provide that ITR shall be deemed invalid if it isn't verified within 30 days of uploading or by the due date as per the Income-tax Act, 1961, whichever is later.
SECTION 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Royalties or Fees For Technical Services - Rate of Tax: SLP dismissed as withdrawn against order of High Court that where assessee had entered into an agreement with UK based university for providing certain technical services for which it had agreed to bear Indian taxes, assessee was required to gross-up amount of fees for technical services (FTS) paid to university, for purpose of deducting TDS under India-UK DTAA - Tvs Motor Company Ltd. v. Income Tax Officer, (IT)-II - [2024] 161 taxmann.com 211 (SC)
SECTION 11 OF THE INCOME-TAX ACT, 1961 - CHARITABLE OR RELIGIOUS TRUST - EXEMPTION OF INCOME FROM PROPERTY HELD UNDER
Advertisement expenses: Where assessee, a charitable institute, had incurred advertisement expenses pertaining to advertisement work that was handled by REM, a specified person, falling within meaning of section 13(3), since REM had billed assessee-society same amount that newspaper company had billed REM, Commissioner (Appeals) was justified in deleting addition made by AO on account of excess payment made to REM - Assistant Commissioner of Income-tax v. Institute for Technology & Management University - [2024] 161 taxmann.com 154 (Raipur - Trib.)
Brokerage expenses: Where Assessing Officer had made an addition on account of brokerage and commission expenses incurred by assessee without giving any cogent reason and without examining documentary evidence supporting assessee's claim of aforesaid expenditure, matter was to be restored to Assessing Officer for re-adjudication - Assistant Commissioner of Income-tax v. Institute for Technology & Management University - [2024] 161 taxmann.com 154 (Raipur - Trib.)
SECTION 32 OF THE INCOME-TAX ACT, 1961 - DEPRECIATION - ALLOWANCE/RATE OF (CHARITABLE TRUST)
Position prior to 1-4-2015: When assessee-society had not claimed cost of asset as an application, there was no justification for Assessing Officer to have disallowed its claim for depreciation for reason that once cost of asset had been claimed as an application, then it was not permissible for assessee-society to have further raised a claim for depreciation - Assistant Commissioner of Income-tax v. Institute for Technology & Management University - [2024] 161 taxmann.com 154 (Raipur - Trib.)
SECTION 69C OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED EXPENDITURE
Bogus purchases: Where Assessing Officer had made an addition on account of purchases made by assessee treating same as bogus purchases, in view of fact that goods purchased from supplier had been duly reflected in stock registers maintained by assessee and same were sold by assessee by making due reduction in stock register to extent of sales, moreover, sales made by assessee were not doubted by revenue and also payments were made for same through account payee cheques out of disclosed sources of income, Commissioner (Appeals) was justified in deleting impugned addition - ACIT v. Sharp Corp Ltd. - [2024] 161 taxmann.com 207 (Delhi - Trib.)
SECTION 80G OF THE INCOME-TAX ACT, 1961 - DEDUCTIONS - DONATION TO CERTAIN FUNDS, CHARITABLE INSTITUTIONS, ETC.
Approval under sub-section (5): Where clause 5(ii) of Circular No.6 of 2023, dated 24-5-2023 failed to extend due date for making an application for approval to new trusts under clause (iii) of first proviso to sub-section 5 of section 80G, without any basis for discrimination, it was arbitrary and violative of article 14 of Constitution of India and accordingly, would be ultra vires the Constitution - Sri Nrisimha Priya Charitable Trust v. Central Board of Direct Taxes - [2024] 161 taxmann.com 209 (Madras)
SECTION 139(9) OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME - INVALID RETURN
Illustrations: Where assessee by way of instant petition sought quashing of impugned order passed under section 139(9) treating returns filed by it for relevant assessment year as invalid and submitted that it was engaged in business and was not carrying on any profession, however, issue as to whether assessee was carrying on business or engaged in profession had neither been adverted to nor addressed in impugned order, matter was to be remanded back for adjudication afresh - Srijan Capital Advisors LLP v. Assistant Director of Income-tax - [2024] 161 taxmann.com 210 (Karnataka)
SECTION 153B OF THE INCOME-TAX ACT, 1961 - SEARCH AND SEIZURE - TIME LIMIT FOR COMPLETION OF ASSESSMENT UNDER SECTION 153A
Illustrations: SLP disposed of reserving liberty to assessee to raise contentions regarding jurisdictional error vis-a-vis limitation period before appropriate authority against order of High Court that where ITO inspected three distinct lockers belonging to petitioner, namely, Lockers 299, 2070, and 1320, since restraint and revocation orders pertaining to Locker 299 unequivocally establish that Locker 299 underwent its initial search on 29-4-2021, even though it resulted in no recoveries, this date marked onset of limitation period prescribed under section 153B and, thus, assessment order dated 31-3-2023 notified under section 153A was within limitation period - Anuradha Bakshi v. Principal Commissioner of Income-tax - [2024] 161 taxmann.com 195 (SC)
GOODS AND SERVICES TAX LAWS
SECTION 9 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY & COLLECTION OF TAX
Where in spite of petitioner-assessee replying to show cause notice, order imposing GST on basis of total trade payable of petitioner-assessee came to be issued, therefore, impugned order was liable to be quashed and matter was remanded for reconsideration by assessing authority - DSV Air and Sea (P.) Ltd. v. State of Tamil Nadu - [2024] 161 taxmann.com 152 (Madras)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REFUND - TAX, REFUND OF
Where assessee's refund claim for unutilized ITC was rejected for period July 2019 to December 2019, prior to said period, refund claims had duly been sanctioned by revenue to assessee on same facts and circumstances, revenue's sudden change treatment of refund claims for said period was not only inconsistent but also irrational, principle of consistency dictates that when faced with identical factual and legal circumstances, treatment should remain uniform, therefore order rejecting refund claim of assessee for said period was palpably erroneous and could not be sustained and same was to be set aside - Samsung India Electronics (P.) Ltd. v. State of U.P.- [2024] 161 taxmann.com 205 (Allahabad)
SECTION 61 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ASSESSMENT - SCRUTINY OF RETURNS
Where admittedly assessee had not uploaded reply to intimation on portal which culminated in impugned order in original, in interest of justice, said order was to be set aside and matter was to be remitted subject to assessee depositing 10 per cent of tax demand - T.V.R. Edible Refineries v. Deputy State Tax Officer - [2024] 160 taxmann.com 545 (Madras)
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
Where Assessing officer, in impugned assessment order noticed that all India balance sheet of assessee GTA disclosed other income of Rs.20,05,359 and than tax liability with interest and penalty was imposed in respect of turnover taxable entirely on RCM basis, impugned assessment order vitiated by non application of mind and was to be quashed - Sunrise Freight Movers (P.) Ltd. v. State Tax Officer - [2024] 161 taxmann.com 170 (Madras)
Where impugned show cause notice was not replied by assessee as assessee could not access portal due to cancellation of its registration, impugned order passed creating demand against assessee solely on account that assessee had not filed reply, could not be sustained and matter was to be remitted for re-adjudication - Singla Enterprises v. Commissioner, Delhi Goods and Service Tax - [2024] 160 taxmann.com 543 (Delhi)
SECTION 75 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - GENERAL
Where order under section 75(4) of CGST Act was passed without providing opportunity of personal hearing, though requested by assessee, was in violation of principles of natural justice and ex facie contrary to provisions of section 75(4) of CGST / MGST Act, impugned order was to be set aside - Cowtown Software Design (P.) Ltd. v. Union of India - [2024] 161 taxmann.com 201 (Bombay)
COMPANY AND SEBI LAWS
领英推荐
CIRCULAR NO. SEBI/HO/AFD/POD/CIR/2024, DATED 05-04-2024
SEBI proposes direct reporting of changes in terms of 'Private Placement Memorandum of AIFs'
Editorial Note: As per Master Circular dated July 31, 2023 for AIFs, an intimation regarding any change in terms of a Private Placement Memorandum (PPM) is required to be submitted to SEBI through a merchant banker, along with a due diligence certificate from merchant banker in a format specified by SEBI. The SEBI has now proposed the direct reporting of changes in terms of PPM of AIFs and may not be required to be submitted via merchant banker. The comments/suggestions must be submitted by 26.04.2024.
FEMA BANKING AND INSURANCE LAWS
PRESS RELEASE NO. 2024-2025/57, DATED 05-04-2024
RBI launches new website and mobile application
Editorial Note: RBI has launched a new website and mobile application. Governor Shri Shaktikanta Das announced the release of new website and mobile application today. The new website can be accessed via the URL (https://website.rbi.org.in ) or through QR code. Also, new mobile application can be downloaded from Play Store for Android users and App Store for iOS users. Users can also download mobile app using QR code. The existing website (https://rbi.org.in ) will remain available simultaneously for some time.
PRESS RELEASE NO. 2024-2025/54, DATED 05-04-2024
RBI imposes a monetary penalty of Rs 1 crore on ‘IDFC First Bank Limited’ for non-compliance with RBI norms
Editorial Note: The RBI has imposed a monetary penalty of Rs 1 crore on ‘IDFC First Bank Limited’ for violating certain norms. The penalty has been imposed for non-compliance with certain directions issued by the RBI on ‘Loans and Advances – Statutory and Other Restrictions’. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
PRESS RELEASE NO. 2024-2025/56, DATED 05-04-2024
RBI imposes a monetary penalty of Rs 49.70 lakh on ‘LIC Housing Finance Limited’ for non-compliance with RBI norms
Editorial Note: The RBI has imposed a monetary penalty of Rs 49.70 lakh on ‘LIC Housing Finance Limited’ for violating certain norms. The penalty has been imposed for non-compliance with certain provisions of the Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 issued by RBI. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
SECTION 50 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 - POWERS OF AUTHORITIES REGARDING SUMMONS, PRODUCTION OF DOCUMENTS AND TO GIVE EVIDENCE, ETC.
Where applicant had been summoned by ED in a money laundering case and apprehending arrest, applicant approached High Court invoking jurisdiction under section 482 Cr.P.C. seeking quashing proceedings of ECIR, however, applicant himself was not aware as to whether he was being summoned under Section 50 as an accused or as a witness and decisions in this regard was to be taken only after completion of investigation by competent authorities, also ED had not filed any complaint against applicant and he was yet not an accused in ECIR and it could not be said at this uncertain stage that ED was identifying applicant as an accused - Saurabh Mukund v. Directorate of Enforcement - [2024] 161 taxmann.com 191 (Allahabad)
SECTION 148 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 POWER OF APPELLATE COURT TO ORDER PAYMENT PENDING APPEAL AGAINST CONVICTION
If any order is challenged and appeal is pending, one cannot permit a swinging pendulum continuously taking place during pendency of appeal - Mangla Prasad Singh v. State of U.P - [2024] 161 taxmann.com 189 (Allahabad)
Where accused filed an appeal against order of Trial Court convicting accused and against award of sentence of three months simple imprisonment and also imposition of fine and Appellate Court although admitted appeal and also allowed Bail Application moved by accused but rejected stay and operation of passed by Trial Court, thus, Appellate Court had failed to consider Statutory Provisions as enshrined under Sections 148(1) and 148(2), which resulted in miscarriage of justice - Mangla Prasad Singh v. State of U.P - [2024] 161 taxmann.com 189 (Allahabad)
INSOLVENCY AND BANKRUPTCY CODE
SECTION 31 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - RESOLUTION PLAN - APPROVAL OF
Where appellant, SRA filed an application before NCLT seeking withdrawal of resolution plan on ground that corporate debtor was not a going concern, however, corporate debtor was carrying on business and generating revenue, since appellant was a going concern and resolution plan had been found feasible and viable and, approved by CoC, NCLT did not commit any error in admitting RP's application and approving resolution plan - EBIX Singapore (P.) Ltd. v. Mahendra Singh Khandelwal Resolution Profession of Educomp Solutions Ltd. - [2024] 161 taxmann.com 188 (NCLAT- New Delhi)
SECTION 61 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE PERSON'S ADJUDICATING AUTHORITIES - APPEALS AND APPELLATE AUTHORITY
Where impugned order was issued on 22-11-2023 and 30 days period for filing an appeal ended on 22-12-2023 and a further period of 15 day period ended on 7-1-2024 ,however, appeal having been filed on 1-2-2024 with a delay of more than 15 days from date of expiry of limitation but jurisdiction to condone delay was limited to only 15 days as per section 61(2) hence, application to condone delay could not be entertained - Deepak Dahyalal v. Steel Resources - [2024] 161 taxmann.com 193 (NCLAT- New Delhi)
OPINIONS
Block period for search assessments u/s 153C shall be reckoned from date of receiving of seized documents - Mohit Gupta, CA - [2024] 161 taxmann.com 233 (Article)
Service Permanent Establishment (Service PE) and Its Impact on Cross-Border Taxation - Eshaan Singal, Article Assistant at SAAAS & Co. LLP. - [2024] 161 taxmann.com 232 (Article)
80 FAQs on the duty of the statutory auditor of a company to report on audit trail - Srinivasan Anand G., CA - [2024] 161 taxmann.com 231 (Article)
That’s it from us for today! Stay Tuned for more updates from Taxmann.com
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