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
Editorial Note: The UAE Ministry of Finance has issued an Explanatory Guide for Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”). The Guide is designed to provide a detailed explanation of each article, the intended purpose of the provisions of the Corporate Tax Law and the executive decisions issued for its implementation.
Permanent Establishment - DAPE: Where assessee, a national body for Cricket in India, started the Champions League T20 tournament and entered into an agreement with Cricket South Africa (CSA) to ensure participation of teams from CSA's jurisdiction and pursuant to the termination of this agreement in 2015, assessee agreed to pay compensation to CSA, said payment of compensation to CSA under Termination Agreement would not be taxable under provisions of India-South Africa DTAA - Board of Control for Cricket in India v. Deputy Commissioner of Income-tax, Central Circle-6(2) - [2023] 150 taxmann.com 246 (Mumbai - Trib.)
Royalties and fees for technical services: Where assessee, a Limited Liability Partnership incorporated under the Laws of the United Kingdom (UK), provided legal advisory services to its clients worldwide, including India, since by rendering those services, the assessee did not 'made available' any technical knowledge, know-how or experience to the recipient of services, the amount received by it was not taxable in India as a fee for technical services - Linklaters LLP v. Deputy Commissioner of Income-tax, (IT) Circle-3(1)(2) - [2023] 150 taxmann.com 222 (Mumbai - Trib.)
Permanent Establishment - Fixed PE/ place of business: Where assessee, a Limited Liability Partnership incorporated under the Laws of the United Kingdom (UK), provided legal advisory services to its clients worldwide, including India, since assessee neither had a fixed place of business in India and its employees stayed in India for a period of aggregating to only 13 days, the assessee could not be said to be taxable under provisions of article 5 read with article 7 of India-UK DTAA - Linklaters LLP v. Deputy Commissioner of Income-tax, (IT) Circle-3(1)(2) - [2023] 150 taxmann.com 222 (Mumbai - Trib.)
Royalties/Fees for technical services - Reimbursement of expenses: Where the assessee, UK based company, claimed certain charges as reimbursements, later AO, during assessment proceedings for the assessment year 2014-15, examined certain agreements submitted by the assessee and suspected that charges claimed as reimbursement were in nature of royalty. Consequently, reassessment notice was issued for the relevant assessment year, since the belief of AO that the assessee did not disclose fully and truly all material facts necessary for assessment could not be brushed, and the assessee had an effective remedy under section 144C, the instant case was not a fit case for invoking writ jurisdiction under article 226 - HSBC Holdings PLC v. Deputy Commissioner of Income-tax - [2023] 150 taxmann.com 221 (Telangana)
Form 10B, filing of: Where assessee-trust had complied with the procedural requirement of obtaining and filing Form 10B, exemption under section 11 could not be denied to it merely on the technical grounds of non-filing of Form 10B along with the return of income - Shree Bhairav Seva Samiti v. Income-tax Officer (Exemption) - [2023] 149 taxmann.com 478 (Mumbai - Trib.)
Illustrations: Where shares were held by the assessee ranging between 15-25 years before they were sold through the stock exchange, Assessing Officer was wrong in doubting the genuineness of the transaction and treating the capital gain as unexplained cash credit under section 68 - ACIT v. Smt. Anju Jain - [2023] 149 taxmann.com 479 (Delhi - Trib.)
Opportunity of hearing: Where Assessing Officer reopened assessment in the case of the assessee-company and passed an order under section 148A(d) alleging that income received by the assessee in a transaction with a party had escaped assessment since revenue had failed to furnish any documents or material along with reopening notice, impugned notice was to be quashed - Vertex International (P.) Ltd. v. Assistant Commissioner of Income-tax - [2023] 149 taxmann.com 480 (Delhi)
Illustrations: Where the assessee filed an application before the Tribunal under rule 27 of Income-tax (Appellate Tribunal) Rules, 1963 raising an issue which was never put before the Commissioner (Appeals) for adjudication, the application deserved to be rejected - ACIT v. Smt. Anju Jain - [2023] 149 taxmann.com 479 (Delhi - Trib.)
GOODS AND SERVICES TAX LAWS
Editorial Note: The CBIC has decided to roll out an Automated Return Scrutiny Module for GST returns after the directions of Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman. In the module, discrepancies on account of risks associated with a return are displayed to the tax officers.
Prefabricated buildings: Prefabricated buildings, which consist of factory-made components or units that are transported and assembled on-site to form a complete building, are classifiable as goods under Heading No. 9406 - Radiant Enterprises P. Ltd. v. Joint Commissioner, Central Goods and Services Tax & Central Excise (Appeal I) - [2023] 150 taxmann.com 225 (Calcutta)
GST registration could not be cancelled with retrospective effect when the Show cause notice issued to the assessee did not mention that the proper officer proposed to cancel registration with retrospective effect - Aditya Polymers v. Commissioner of Delhi Goods and Services Tax - [2023] 150 taxmann.com 223 (Delhi)
Ex parte order demanding tax, interest and penalty on the basis of excess TDS credit in GSTR 2A of petitioner's employer-IGIMS against payment made to petitioner was to be set aside as it was passed in violation of the principle of natural justice - CICO Patel JV v. Union of India - [2023] 150 taxmann.com 226 (Patna)
Where authority passed second provisional attachment order re-exercising powers under section 83(2), and it was submitted there was no power available to repeat provisional attachment after a period of one year mentioned in section 83(2) since adjudication proceedings had already begun, authorities were directed to complete proceedings within a time-bound period, as on completion of proceedings rights of parties stand crystallized, leaving second order of provisional attachment to its own fate - Madhav Copper Ltd. v. State of Gujarat - [2023] 150 taxmann.com 224 (Gujarat)
COMPANY AND SEBI LAWS
Supreme Court dismissed an appeal against the order passed by SAT wherein it was held that an entity listed on the Stock Exchange platform was required to pay Exchange, listing fee till securities were listed on the platform Exchange and suspension of trading in the listed entity's securities did not entitle company not to pay annual listing fees - Enchante Jewellery Ltd. v. BSE Ltd. - [2023] 149 taxmann.com 427 (SC)
领英推荐
INSOLVENCY AND BANKRUPTCY CODE
SC admits appeal against NCLAT's order allowing "project-wise insolvency resolution" by constituting CoC for only one project of real estate CD - Indiabulls Asset Reconstruction Co. Ltd. v. Ram Kishore Arora - [2023] 150 taxmann.com 244 (SC)
Where appellant-RP had failed to adhere to timelines and to convene a meeting of the CoC for the replacement of RP, Adjudicating Authority, to avoid delay in the CIRP proceeding, had rightly invoked its inherent jurisdiction on an application filed by the financial creditor and passed an order directing for the replacement of the appellant-RP - Srigopal Choudary Resolution Professional of Shree Ram Urban Infrastructure Ltd. v. SREI Equipment Finance Ltd. - [2023] 149 taxmann.com 411 (NCLAT- New Delhi)
ACCOUNTS AND AUDIT
Editorial Note: As technology continues to advance, it is essential for internal auditors to stay updated with the latest practices & standards for auditing MIS. Internal auditors play a crucial role in assessing & ensuring the effectiveness of an organization's MIS. This checklist serves as a guide for internal auditors, outlining key areas to focus on during an audit of the MIS. By following this checklist, internal auditors can thoroughly evaluate the system's reliability, accuracy, & compliance with law.
OPINIONS
Whether DDT is eligible for a beneficial DTAA rate? - Surender Bisht, Director – Corporate & International Tax, PwC, Ashish Chadha, Associate Director - Corporate & International Tax, PwC - [2023] 150 taxmann.com 248 (Article)
World Tax News: UAE releases norms for maintenance of TP documents and more… - Taxmann, Editorial Team - [2023] 150 taxmann.com 247 (Article)
SEBI Widens the Spectrum of 'Related Parties': Analyzing Changes in SEBI (LODR) Norms - Rani Jha, CS - [2023] 150 taxmann.com 220 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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