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 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Capital gains - Shares, transfer of: Where assessee was an Indian resident, taxability of LTCG earned in respect of shares sold by assessee held in UAE based company was to be determined as per Income-tax Act and not under article 13 of India-UAE DTAA?- Prabhukumar Aiyappa Kullatira v. Income-tax Officer - [2022] 142 taxmann.com 471 (Bangalore - Trib.)
Capital Gain - Scope of provision:?Tax-exemption claimed for capital gains under DTAA to be allowed without setting off b/f capital losses for earlier years computed under the Act?- Assistant Commissioner of Income-tax, 3(1)(1) v. J. P. Morgan India Investment Company Mauritius Ltd. - [2022] 143 taxmann.com 82 (Mumbai - Trib.)
SECTION 11 OF THE INCOME-TAX ACT, 1961 - CHARITABLE OR RELIGIOUS TRUST - EXEMPTION OF INCOME FROM PROPERTY HELD UNDER
Form no. 10:?Where the Assessing Officer rejected the claim of exemption under section 11 made by the assessee-trust for reason that the assessee forgot to file Form no. 10 along with its claim for exemption, since the assessee filed Form No. 10 before the Assessing Authority before the completion of regular assessment and there was no time limit prescribed under the Act for filing Form no. 10 for the present assessment year 2015-16, the assessee was eligible for exemption?- Shree Harsaniji Public Charitable Trust v. Income-tax Officer (Exemption) - [2022] 142 taxmann.com 456 (Ahmedabad - Trib.)
SECTION 56 OF THE INCOME TAX ACT, 1961 - INCOME FROM OTHER SOURCES - CHARGEABLE AS
Book value of liability shown in the balance sheet has to be reduced for purpose of valuation and determination of FMV of unquoted equity shares?- Income Tax Officer v. Mystical Infaratech (P.) Ltd. - [2022] 143 taxmann.com 81 (Mumbai - Trib.)
SECTION 69C OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED EXPENDITURE
Bogus purchases:?Where the Principal Commissioner invoked revisionary proceedings on the ground that AO failed to disallow bogus purchases fully and resorted to a certain percentage of disallowance, however, the Tribunal observed that the assessee had produced all necessary details of the purchase, sales, audited books of account and quantity details and no discrepancy was found between purchase shown by assessee and sales decline, Tribunal was right in law to conclude that revision was bad in law?- Principal Commissioner of Income-tax v. Sandip Kumar Tekriwal HUF - [2022] 142 taxmann.com 453 (Calcutta)
SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE
Methods for determination of - TNM method:?Where the assessee entered into an international transaction related to the rendering of equity broking services to AE, TNMM was to be adopted as a most appropriate method for determination of arm's length price of brokerage service income earned by the assessee?- CLSA India Ltd. v. Deputy Commissioner of Income-tax - [2022] 142 taxmann.com 473 (Mumbai - Trib.)
SECTION 148 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - ISSUE OF NOTICE FOR
Principles of natural justice:?Where the assessee challenged notice seeking to reopen the assessment on grounds that an assessment order was uploaded against PAN that did not pertain to the assessee but pertained to a non-existent company, however, though impugned notices might have been marked to PAN number, which assessee claimed it had already surrendered, impugned notices were served on assessee's Chartered Accountant through e-mail Id which was registered by the assessee with Income-tax Department for service of notices and assessment order had already been made in pursuance of impugned notices and hence, instant petition was to be dismissed?- Chowgule Industries (P.) Ltd. v. Assistant Commissioner of Income-tax - [2022] 142 taxmann.com 472 (Bombay)
SECTION 148A OF THE INCOME TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - CONDUCTING INQUIRY, PROVIDING OPPORTUNITY BEFORE ISSUE OF NOTICE
Cuttack HC defines "information" which is the trigger for action by AO u/s 148A for assessing escaped income?- Stewart Science College v. Income Tax Officer, Ward 1(1) - [2022] 143 taxmann.com 80 (Orissa)
SECTION 194LD OF THE INCOME TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - INCOME BY WAY OF INTEREST ON CERTAIN BONDS AND GOVERNMENT SECURITIES
Rupee-denominated NCDs issued by Indian co. qualifies as 'rupee denominated bond of an Indian company' u/s 194LD?- Heidelberg Cement AG v. Assistant Commissioner of Income-tax, International Taxation - [2022] 143 taxmann.com 79 (Delhi - Trib.)
SECTION 254 OF THE INCOME TAX ACT, 1961 - APPELLATE TRIBUNAL - ORDER OF
AO's order to deposit 20% of the demand, on the assessee's stay petition, implies the order to deposit 20% of the disputed demand & not the entire demand u/s 156?- eBay Singapore Services (P.) Ltd. v. Deputy Commissioner of Income-tax, (IT), 2(2)(1) - [2022] 143 taxmann.com 78 (Mumbai - Trib.)
GOODS AND SERVICES TAX LAWS
NOTIFICATION NO. 87/2022, DATED 06-10-2022
CBIC notified exchange rates effective from October 7th, 2022
Editorial Note:?The Central Board of Indirect Taxes and Customs has notified the rate of exchange of conversion of the foreign currencies into Indian currency or vice versa, with effect from 7th October 2022, for import and export of goods.
INSTRUCTION NO. 110267/75/2022-CX, DATED 06-10-2022
Assessee can avail waiver of interest under SVLDRS, 2019 if tax dues already paid in full\
Editorial Note:?The CBIC has issued instruction to clarify that the assessee is eligible to avail benefit of the waiver of interest under SVLDRS, 2019 if tax dues have been already paid in full before filing the application.
New functionalities made available for taxpayers on GST Portal in September, 2022: GSTN Update
Editorial Note:?GSTN has issued a document to update taxpayers about the new functionalities made available on the GST portal in various modules such as functionality to add new fields while submitting response to a notice, in Form GST REG 04, addition of restricted items in the Composition restriction table etc.
INSTRUCTION NO. 26/2022- CUSTOMS, DATED 06-10-2022
Health Certificate to be accompanied with the import of certain food consignments\
Editorial Note:?The CBIC has earlier issued instruction to inform that health certificate shall be accompanied with import of certain food consignments. Now, it is clarified that integrated or single certificate incorporating food safety related requirements will also be accepted.
PUBLIC NOTICE NO. 28/2015-2020, DATED 06-10-2022
The last date for applications for TRQs under tariff head 7108 for the 3rd Quarter of FY 22-23 extended till 10.10.2022
Editorial Note:?The DGFT has issued public notice to inform that the last date for application for TRQs under tariff head 7108 for the 3rd Quarter of FY 2022-23 has been extended from 31.08.2022 to 10.10.2022.
SECTION 2(119) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - WORKS CONTRACT
Uttar Pradesh Jal Nigam is not a local authority but a governmental authority as it is a body corporate formed by the State Legislature for the development and regulation of water supply and sewerage service; Works contract service supplied to the such body is liable to GST at 18 per cent?- Suez India (P.) Ltd., In re - [2022] 143 taxmann.com 84 (AAR- UTTAR PRADESH)
SECTION 11 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY AND COLLECTION OF TAX - EXEMPTION - POWER TO GRANT
Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) is a governmental authority, therefore works executed for HMWSSB are subject to GST at 12 per cent till 31-12-2021 after which, the same is taxable at 18 per cent and if works executed do not include the supply of goods, being pure services to a governmental authority, same is exempt from GST?- Power Solutions, In re - [2022] 143 taxmann.com 50 (AAR- TELANGANA)
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
Service tax is paid by Contractor on reverse charge mechanism to Indian Railways instead of paying directly to CGST authorities and SGST authorities; Railways were directed to pay this amount to Petitioner and GST authorities were directed to open portal to enable petitioner to pay this amount to GST authorities?- Arun Krishnachandra Goswami v. Union of India - [2022] 143 taxmann.com 86 (Bombay)
Orders passed based on the inspection reports and without the issue of show cause notice are not sustainable; High Court quashes summary of order and summary of rectification/withdrawal order?- Shyam Hardware Store v. State of Jharkhand - [2022] 143 taxmann.com 87 (Jharkhand)
领英推荐
COMPANY AND SEBI LAWS
CIRCULAR NO. SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2022/137, DATED 06-10-2022
SEBI widens the scope of Demat Debit and Pledge Instruction’ (DDPI) by including mutual fund transactions in its ambit
Editorial Note:?Earlier, the SEBI had issued the guidelines regarding execution of DDPI for transfer of securities towards deliveries / settlement obligations and pledging / re-pledging of securities. Now SEBI has decided to widen the scope of DDPI to include Mutual Fund transactions executed on Stock Exchange’s order entry platforms and tendering shares in open offers through Stock Exchange platforms in its ambit. This circular shall be applicable from 18-11-2022.
Govt. notifies the jurisdictional area for various Debts Recovery Tribunal established under the Recovery of Debts and Bankruptcy Act, 1993
Editorial Note:?The Central Government has notified the area of jurisdiction for various Debts Recovery Tribunals established under the Recovery of Debts and Bankruptcy Act, 1993. The jurisdictional area is based upon the amount of the debt involved in applications. The Govt. has specified the jurisdictional area for various locations including Chennai, Madurai, Ernakulam, Bengaluru, Coimbatore, Delhi, Chandigarh, Jaipur, Mumbai, Aurangabad, Nagpur, Pune and Ahmedabad.
FEMA BANKING AND INSURANCE LAWS
CIRCULAR NO. RBI/2022-23/124 CEPD.PRD.NO.S806/13-01-008/2022-23, DATED 06-10-2022
RBI issues directions for the appointment of the Internal Ombudsman for all Credit Information Companies
Editorial Note:?Earlier the RBI in august announced the decision to bring Credit Information Companies (CICs) under the Internal Ombudsman framework. Accordingly, now RBI has issued the directions for the appointment of an Internal Ombudsman for all CICs with a view to strengthen the internal grievance redress mechanism of CIC. This would enable a review of customer's complaints before their rejection, by an independent apex level authority. These directions shall be effective from 01-04-2023.
MoF permits 42 reporting entities to perform authentication under the Aadhaar Act, 2016
Editorial Note:?The Ministry of Finance has permitted 42 reporting entities to perform authentication under the Aadhaar Act, 2016. The permission is granted only for the purposes of aadhar authentication as required u/s 11A of the Money-laundering Act, 2002. Section 11A requires the verification of the identity of reporting entities’ clients and the beneficial owner by way of aadhaar authentication.
PRESS RELEASE: 2022-2023/1012, DATED 07-10-2022
RBI issues concept note on CBDC; pilot launches of ‘Digital Rupee’ to be commenced soon
Editorial Note:?RBI has issued a concept note on Central Bank Digital Currency (CBDC).The purpose behind the issue of this concept note is to create awareness about CBDCs in general and the planned features of the digital rupee in particular. It discusses key considerations such as technology and design choices, possible uses of the digital rupee, issuance mechanisms, etc. The RBI will soon commence pilot launches of digital rupee for specific use cases.
SECTION 45 OF THE PREVENTION OF MONEY LAUNDERING ACT, 2002 - OFFENCES TO BE COGNIZABLE AND NON-BAILABLE
HC grants bail to ex-Home Minister of Maharashtra Anil Deshmukh in PMLA case but stays bail order till October 13 to enable ED to appeal to SC?- Anil Vasantrao Deshmukh v. State of Maharashtra - [2022] 143 taxmann.com 83 (Bombay)
INSOLVENCY AND BANKRUPTCY CODE
SECTION 60 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE PERSON'S ADJUDICATING AUTHORITES
Adjudicating Authority:?Where during the liquidation process, revenue authorities directed the bank to freeze the current account of the corporate debtor towards clearance of outstanding dues/liabilities of CST/VAT and the appellant-liquidator filed an application seeking directions to be issued to revenue authorities to defreeze corporate debtor's current account, in view of section 60(5), NCLT ought to have provided relief by exercising its residuary jurisdiction rather than remanding appellant once again back in the hand of Govt. Authorities?- Hemant Mehta Resolution Professional of Pan India Utilities Distribution Co. Ltd. v. Asstt. Commissioner of State Tax - [2022] 142 taxmann.com 459 (NCLAT- New Delhi)
SECTION 238A OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS
Limitation period:?Where the operational creditor had not been able to establish an extension of the limitation period on basis of valid acknowledgement provided by the corporate debtor to debt, which was in default from June 2006, NCLT did not commit any error in holding section 9 application of operational creditor filed in 2018 was barred by limitation?- Advance Engineering Services v. Baroda Rayon Corporation Ltd. - [2022] 142 taxmann.com 458 (NCLAT- New Delhi)
OPINIONS
The Five-Step Model to Determine Deferred Tax Asset and Deferred Tax Liability under Ind AS 12 -?Raja A.K., B.C.A.LL.B (Hons), GIP Trainee, IICA - [2022] 143 taxmann.com 75 (Article)
World Tax News: UK Govt. scraps tax cut on high earners and more… -?Taxmann's Editorial Team - [2022] 143 taxmann.com 89 (Article)
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