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 68 OF THE INCOME-TAX ACT, 1961 - CASH CREDIT
Additions u/s 68 upheld by ITAT in respect of donations received by assessee-trust from shell companies whose names were struck off by RoC as defunct companies - Mayor Foundation v. Assistant Commissioner of Income-tax (Exemption) - [2023] 146 taxmann.com 216 (Amritsar - Trib.)
SECTION 69 OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED INVESTMENT
Reassessment: Where AO issued a reopening notice on ground that assessee purchased an immovable property amounting Rs. 40 lakhs and also deposited an amount of Rs. 20.71 lakhs and Rs. 16.20 lakhs in his bank account which escaped assessment, since said property belonged to daughter of assessee and assessee was only acting as a power of attorney for her, same was to be excluded from consideration and since remaining consideration so escaped was less than jurisdictional required of Rs. 50 lakhs as contemplated under section 149(1)(b), impugned reopening notice issued beyond permissible period of three years was liable to be quashed - Naresh Balchandrarao Shinde v. Income-tax Officer - [2023] 146 taxmann.com 66 (Bombay)
SECTION 92B OF THE INCOME TAX ACT, 1961 - TRANSFER PRICING - INTERNATIONAL TRANSACTION, MEANING OF
Where matter has been remanded by ITAT and pending before AO for fresh decision, no substantial question of law is to be entertained by HC at this stage - Jubilant Pharmova Ltd. v. Joint Commissioner of Income-tax - [2023] 146 taxmann.com 222 (Allahabad)
SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - GENERAL
Reassessment: Where original proceeding was completed under section 143(1), it was not necessary for Assessing Officer to come across some fresh tangible material to form a belief that income by way of professional services charges had escaped assessment so as to initiate reassessment proceedings and doctrine of change of opinion would not arise, thus, impugned reopening was justified - Ernst & Young U.S. LLP v. Assistant Commissioner of Income-tax (International Taxation) - [2023] 146 taxmann.com 64 (Delhi)
SECTION 148 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - ISSUE OF NOTICE FOR
WP against reassessment notice issued under new provisions can't be simply dismissed by HC on grounds of alternative remedy available - Red Chilli International Sales v. Income Tax Officer - [2023] 146 taxmann.com 224 (SC)
SECTION 148A OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - CONDUCTING INQUIRY, PROVIDING OPPORTUNITY BEFORE ISSUE OF NOTICE
Writ jurisdiction: Where Assessing Officer reopened assessment on ground that assessee was found to be a beneficiary of accommodation entries received from an entity, however, assessee contented that transaction with said entity was done in course of business, since there were rival pleas and their determination was pure question of fact which would have to be determined by statutory authorities after appreciation of evidence, writ petition filed by assessee at this interim stage of reassessment proceedings, thus, same was not maintainable - North End Foods Marketing (P.) Ltd. v. Deputy Commissioner of Income-tax - [2023] 146 taxmann.com 67 (Delhi)
GOODS AND SERVICES TAX LAWS
CIRCULAR NO. 190/02/2023-GST, DATE 13-01-2023
Clarifications regarding applicability of GST on certain services: CBIC Circular
Editorial Note: The CBIC has issued circular to provide clarifications regarding applicability of GST on accommodation services supplied by Air Force Mess to its personnel and incentive paid by Ministry of Electronics and Information Technology (MeitY) to acquiring banks under Incentive scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions.
CIRCULAR NO. 189/01/2023-GST, DATE 13-04-2023
CBIC issues clarification regarding gst rates and classification of certain goods
Editorial Note: The CBIC has issued clarification regarding GST rates and classification of certain goods based on the recommendations of the GST Council in its 48th meeting held on 17th December, 2022.
Module wise new functionalities deployed on the GST Portal for taxpayers: GSTN Update
Editorial Note: The GSTN has implemented various new functionalities on the GST Portal for GST stakeholders. In this document, GSTN has provided details of new functionalities implemented which pertain to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics.
SECTION 11 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY AND COLLECTION OF TAX - EXEMPTION - POWER TO GRANT
Since supply of vaccines by assessee is used in course of providing health care services to patients for treatment, same being naturally bundled and being provided in conjunction with each other would be considered as 'composite supply' and thereby assessee is eligible for exemption as stipulated under Sl. No. 74 of Notification No. 12/2017-Central Tax(Rate) under category of healthcare services, pre-dominant factor being rendering of healthcare services - Anju Parakh, In re - [2023] 146 taxmann.com 221 (AAR - CHHATTISGARH)
SECTION 17 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - CREDIT AND BLOCKED CREDITS, APPORTIONMENT OF
Input tax credit is not available to housing society on works contract service received in relation to repairs, etc., as per Section 17(5)(c) of CGST Act; Service provided is covered under services of membership organization and not under works contract service - Mahavir Nagar Shiv Shrushti Co-op Housing Society Ltd. In re - [2023] 146 taxmann.com 215 (AAAR-MAHARASHTRA)
SECTION 97 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ADVANCE RULING - APPLICATION FOR
Services of life insurance provided by State Government Department to members of state agency are exempted as per Entry at Sl. No. 6 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 - Kerala State Government Insurance Department, In re - [2023] 146 taxmann.com 69 (AAR - KERALA)
SECTION 171 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ANTI - PROFITEERING MEASURE
Ratios of ITC to turnover based on factual record could be relied on to compute profiteered amount - Director General of Anti-Profiteering v. ATS Homes (P.) Ltd. - [2023] 146 taxmann.com 220 (NAA)
Builder's claim passing of ITC benefit was not acceptable where there was evidence of only 90 out of 535 eligible customers - Director General of Anti-Profiteering v. ATS Homes (P.) Ltd. - [2023] 146 taxmann.com 220 (NAA)
领英推荐
Section 171 of CGST Act, 2017 and Rule 126 of CGST Rules, 2017 do not violate Article 14, Article 19 (1)(g) and 300A of Constitution of India, 1950 - Director General of Anti-Profiteering v. ATS Homes (P.) Ltd. - [2023] 146 taxmann.com 220 (NAA)
Anti-Profiteering Authority's reasoned order passed after examining DGAP report and hearing opportunity to interested parties, does not violate Article 14 of Constitution of India, 1950 - Director General of Anti-Profiteering v. ATS Homes (P.) Ltd. - [2023] 146 taxmann.com 220 (NAA)
Mandate of Section 171 of CGST Act, 2017 is limited to protecting consumers interest by ensuring that benefits of tax reduction and ITC are passed on to end consumers who bear burden of tax - Director General of Anti-Profiteering v. ATS Homes (P.) Ltd. - [2023] 146 taxmann.com 220 (NAA)
SECTION 174 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REPEAL AND SAVING
Limiting of area based indirect tax benefits notified in pre-GST era, after coming into force of GST, is to be upheld as it is not hit by doctrine of promissory estoppel - Star Cement Ltd. v. Union of India - [2023] 146 taxmann.com 218 (Gauhati)
COMPANY AND SEBI LAWS
CIRCULAR NO. SEBI/HO/MRD/MRD-POD-1/P/CIR/2023/12, DATED11-01-2023
SEBI allows Stock exchanges to launch multiple contracts on the same commodity in the commodity derivative segment
Editorial Note: The SEBI has allowed the stock exchanges to launch multiple contracts in the same commodity to cater to all value chain participants. The circular is made effective immediately. The objective is to encourage broader participation of investors in the commodity derivatives market and to mitigate the limited participation of the investor due to the requirement of a single contract on a particular commodity.
CIRCULAR NO. SEBI/HO/AFD/POD/CIR/2023/15, DATED 12-01-2023
SEBI prescribes conditions for buying, selling & transacting in Credit Default Swaps
Editorial Note: Recently, SEBI allowed AIFs to participate in Credit Default Swaps (‘CDS’) as a protection for buyers and sellers. With regard to the same, SEBI notified various conditions for buying, selling & transacting in CDS. Category I and Category II AIFs are only allowed to buy CDS for hedging purposes, whereas Cat III may buy for hedging purposes. Further, Category II AIFs and Category III AIFs may sell CDS, by earmarking unencumbered Govt. bonds/Treasury bills equal to amount of said CDS exposure.
SECTION 11B OF THE SECURITIES AND EXCHANGE OF INDIA ACT, 1992 - POWER TO ISSUE DIRECTIONS AND LEVY PENALTY
In a contempt petition filed by Securities and Exchange Board of India (Sebi) against Subrata Roy Sahara, SC with a view to cut short delay and expedite hearing, directs notice to be issued in all pending applications, including unregistered applications subject to all just exceptions and office objections. Notices will be issued by all modes, including dasti - Securities and Exchange Board of India v. Subrata Roy Sahara - [2023] 146 taxmann.com 217 (SC)
SECTION 302 OF THE COMPANIES ACT, 2013 - WINDING UP BY TRIBUNAL - DISSOLUTION OF COMPANY
Where no objections were received from Registrar of Companies and Income-tax Department against proposed dissolution of company in liquidation and neither any assets were remaining and nor any litigation was pending with official liquidator for company-in-liquidation, company was to be dissolved - OL of Mansukhram Textiles (P.) Ltd. (In Liqn) v. NA - [2023] 146 taxmann.com 62 (Gujarat)
ACCOUNTS AND AUDIT
Investments made out of Policyholders’ Fund qualifies to be consolidated under AS 21
Editorial Note: If an enterprise presents CFS, it should prepare and present CFS in accordance with AS 21. AS 21 states that control is established either through control of the majority of voting power or control over the composition of the board of directors of the investee company. Here, we have discussed whether investments made from funds other than shareholder's fund is required to be consolidated with entity, when entity controls the management of investee company.
OPINIONS
World Tax News: Morocco increases corporate tax rate, reduces personal tax and withholding rates and more… - Taxmann, Editorial Team - [2023] 146 taxmann.com 257 (Article)
What you can expect from the Union Budget 2023 - Sandeep Bhatnagar, Partner and Head - Taxation & Assurance, Kohli Chitkara & Co. LLP, Chartered Accountants - [2023] 146 taxmann.com 223 (Article)
RD slashes penalty imposed by RoC on Co. for delayed appointment of a CS during Covid-19 pandemic - Prof R Balakrishnan, FCS - FCWA - [2023] 146 taxmann.com 258 (Article)
Now ‘Offer for Sale of shares would be Hassle-free; SEBI relaxes OFS norms for Retail Investors /Non-promoter shareholders - Isha Bathla, CS, MBA, Parth Chourikar, Industrial Trainee - [2023] 146 taxmann.com 256 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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