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 37(1) OF THE INCOME-TAX ACT, 1961 - BUSINESS EXPENDITURE
ESOP Expenses: Where assessee-employer claimed cost incurred on ESOP and Commissioner (Appeals) failed to consider various contentions raised by assessee to effect that ESOP expenditure is a revenue expenditure allowable in hands of assessee-employer and invoked provisions of section 17(2)(vi)(c) without giving any reasons, the matter was to be remanded to Commissioner (Appeals) for reconsideration - Nuvama Wealth and Investment Ltd. v. Assistant Commissioner of Income-tax, Circle-17(1) - [2023] 149 taxmann.com 258 (Hyderabad - Trib.)
SECTION 45 OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS
Illustrations: Where assessees under an agreement agreed to sell their shares and received a substantial part of consideration between 18-6-2007 to 16-10-2007 as advance sale consideration towards the sale of shares, since share certificates were not delivered to transferees during the previous year relevant to the assessment year 2008-09, assessees could not be subjected to capital gains tax in the assessment year 2008-09 - Principal Commissioner of Income-tax v. Smt. Poornima Shailendra Babu - [2023] 149 taxmann.com 50 (Karnataka)
SECTION 69 OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED INVESTMENTS
Immovable property: Where reasons for reopening assessment were founded on non-existent transaction of purchase of property by assessee reassessment proceedings deserved to be quashed - Rajhans Processors v. Union of India - [2023] 149 taxmann.com 29 (Rajasthan)
SECTION 147 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - GENERAL
Writ jurisdiction: Where the assessee filed a writ petition challenging the reassessment order passed against it on the ground of not following the mandatory requirement of disposing of objections raised by the assessee against the notice issued under section 148, since the assessee had already availed an alternative remedy by way of filling an appeal against the said order, writ petition could not be entertained as assessee could not ride on two horses simultaneously - Indo Colchem Ltd. v. Deputy Commissioner of Income-tax - [2023] 149 taxmann.com 30 (Gujarat)
SECTION 172 OF THE INCOME-TAX ACT, 1961 - NON-RESIDENT - SHIPPING BUSINESS OF
Shipping, Inland waterways Transport, and Air Transport: Mere mode of filing an appeal, electronically or in physical mode, alone should not take away the assessee's right to appeal, being just a technical/procedural aspect that too not mandated by statute but by CBDT notification which has no persuasive value and is binding only on its revenue officers - LRs Management v. Deputy Commissioner of Income-tax (International Taxation), Gujarat - [2023] 149 taxmann.com 32 (Rajkot - Trib.)
SECTION 271(1)(c) OF THE INCOME-TAX ACT, 1961 - PENALTY - FOR CONCEALMENT OF INCOME
Voyage return: Where quantum addition made by AO was deleted by Tribunal, there remained no basis for levy of penalty under section 271(1)(c) - LRs Management v. Deputy Commissioner of Income-tax (International Taxation), Gujarat - [2023] 149 taxmann.com 32 (Rajkot - Trib.)
GOODS AND SERVICES TAX LAWS
Gold and Silver rates as on March 31, 2023
Editorial Note: The Gold and Silver rates as on March 31, 2023, are out. The rate of gold (995 standard 24 carats) is Rs. 59,512 per 10 grams and gold (999 standard 24 carats) is Rs. 59,751 per 10 grams and the rate of Silver (999) is Rs. 71,582 per 1 Kg.
CLASSIFICATION OF GOODS
Sugarcane Juice - Fruit juices (including grape must) and vegetable juices: Sugarcane juice merits classification under Chapter 20 and Heading No.20098990 which falls under Sl. No. 41 of Notification No. 1/2017 Central Tax (Rate), dated 28-6-2017 and taxable at a rate of 6 per cent CGST and 6 per cent SGST or 12 per cent IGST - Gobind Sugar Mills Ltd., In re - [2023] 149 taxmann.com 262 (AAR- UTTAR PRADESH)
PVC cushion mats: Since PVC cushion mats are made from PVC only and same would fall under Chapter 39 which covers PVC made products, therefore, supply of said goods i.e. PVC cushion mats fall under Chapter 39 of GST tariff rates and the applicable rate of GST is 18 per cent - Oswal Poly Rubbers, In re - [2023] 149 taxmann.com 261 (AAR - HARYANA)
SECTION 11 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY AND COLLECTION OF TAX - EXEMPTION - POWER TO GRANT
Notifications withdrawing exemption to service of transportation by auto rickshaw and non-AC stage carriage provided through-commerce operators (ECOs) were not in violation of Articles 14, 19(1)(g) and 21 of Constitution of India - Uber India Systems (P.) Ltd. v. Union of India - [2023] 149 taxmann.com 265 (Delhi)
Auto-rickshaw drivers/bus-operators supplying transportation of passenger service through ECOs were not on par with individual auto-rickshaw drivers / individual bus operators and form a distinct category under GST - Uber India Systems (P.) Ltd. v. Union of India - [2023] 149 taxmann.com 265 (Delhi)
Central Government can by way of notification withdraw exemption that was earlier available to a distinct class - Uber India Systems (P.) Ltd. v. Union of India - [2023] 149 taxmann.com 265 (Delhi)
SECTION 68 OF THE FINANCE ACT, 1994 - PAYMENT OF SERVICE TAX
Issue whether Service tax was liable to be paid in respect of Maintenance charges collected by GIDC from industrial plot owners, to be considered by the Tribunal in light of law laid down by Apex Court in the case of Krishi Upaj Mandi Samiti v. CCE & ST[2022] 135 taxmann.com 354 (SC) - Commissioner of Central Excise and Service Tax v. Gujarat Industrial Development Corporation - [2023] 149 taxmann.com 260 (SC)
SECTION 83 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - PROVISIONAL ATTACHMENT
Remedy, as made available by rule 159(5) of CGST Rules, 2017 is to be availed in case of provisional attachment of property before approaching High Court, examination and determination of facts being required - Eagle Fibres Ltd. v. State of Gujarat - [2023] 149 taxmann.com 259 (Gujarat)
FEMA BANKING AND INSURANCE LAWS
SECTION 45 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 - OFFENCES TO BE COGNIZABLE AND NON-BAILABLE
Where the applicant was in custody in money laundering case and the trial in the instant case was going on with good pace and same was likely to be concluded very soon, the applicant's bail application was to be rejected - Abdul Razak Peediyakkal v. Union of India -[2023] 149 taxmann.com 57 (Allahabad)
领英推荐
INSOLVENCY AND BANKRUPTCY CODE
SECTION 62 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE PERSON'S ADJUDICATING AUTHORITIES - SUPREME COURT, APPEAL TO
Supreme Court upholds the order of NCLAT holding that where the operational creditor filed its claim before Resolution Professional when the Committee of Creditors had already approved the resolution plan and it had been placed before NCLT for further approval, Resolution Professional had rightly rejected the operational creditor's claim - Innovative Buildestates (P.) Ltd. v. RG Buildestate (P.) Ltd. - [2023] 149 taxmann.com 264 (SC)
ACCOUNTS AND AUDIT
A Comprehensive Checklist to meet Disclosure Obligations
Editorial Note: AS 22 prescribes the accounting treatment for taxeson income. Taxes on income is one of the significant items in the statement of profit and loss of an entity. In accordance with the matching concept, taxes on income are accrued in the same period as the revenue and expenses to which they relate. Taxable income may vary from accounting income in some cases. This story discusses the disclosure requirements that an enterprise must comply with while drawing the financial statement.
OPINIONS
Slip up in Proviso to Section 201(1) and Form 26A - Raji Nathani, FCMA, Advocate, Gopal Nathani, FCA - [2023] 149 taxmann.com 256 (Article)
ROC penalizes Company and its directors for not using letterhead in communications documents - Prof R Balakrishnan, FCS - FCWA - [2023] 149 taxmann.com 263 (Article)
Deciphering the classic confusion – Preferential Offer & Private Placement of shares & securities - Gaurav Pingle, Company Secretary - [2023] 149 taxmann.com 255 (Article)
Corporate Social Responsibility
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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