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
NOTIFICATION NO. S.O. 1413(E), DATED 15-03-2024
CBDT notifies ‘Press Trust of India’ as a news agency for purposes of sec. 10(22B)
Editorial Note: The Central Board of Direct Taxes (CBDT) has notified “The Press Trust of India Limited, New Delhi” for the purpose of the Section 10(22B) for two assessment years 2022-2023 to 2023-2024.
SECTION 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED ACCRUAL OF
Service PE: Where assessee, a Singapore based company, provided legal advisory services to Indian clients and it was found that services had been furnished by assessee only for 44 days in India after excluding vacation period, business development days and common days, assessee did not constitute service PE in India as per India-Singapore DTAA during relevant assessment year - Clifford Chance PTE Ltd. v. Assistant Commissioner of Income-tax - [2024] 160 taxmann.com 424 (Delhi - Trib.)
SECTION 69 OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED INVESTMENTS
Seized documents: Where assessee received certain amount in India under FDI route and AO made addition of said amount in hands of assessee under section 69 on ground that assessee had sent said amount in hawala route to Cypra which had ultimately found its way in form of share capital and share premium under FDI route, since FT&TR reference was made to Cyprus tax authorities, pursuant to which report duly confirmed that one LG fund had raised monies through issue of shares and those monies had been utilized by them for making investment in shares of assessee-company under FDI route, addition made by AO were based on suspicion and were to be deleted - Alchemist Touchnology v. Assistant Commissioner of Income-tax, Central Circle-20 - [2024] 160 taxmann.com 422 (Delhi - Trib.)
GOODS AND SERVICES TAX LAWS
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Where business of assessee was discontinued on death of its proprietor, and an order was passed cancelling registration of assessee retrospectively, since assessee was not put to notice that registration was liable to be cancelled retrospectively, cancellation order was to be modified to extent that same shall operate from date of demise of proprietor of assessee - Ashish Garg v. GST Officer/AVATO - [2024] 160 taxmann.com 96 (Delhi)
SECTION 30 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - REVOCATION OF CANCELLATION OF
Where assessee filed writ petition stating that it could not file Form GSTR-3B due to suspension of GSTIN and sought direction to GST Authorities to open portal so as to enable it to file return, delay in filing revocation application was to be condoned and GST Authorities were to be directed to open portal subject to assessee depositing all taxes, interest, late fee, penalty etc. - Akshya Kumar Sahu v. Commissioner, Central Goods and Service Tax & Central Excise - [2024] 160 taxmann.com 129 (Orissa)
SECTION 67 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - SEARCH, SEIZURE ETC. - POWER OF INSPECTION,SEARCH AND SEIZURE
Where a prohibitory order had been passed under section 67(2) against assessee, assessee could not be permitted to approach High Court without invoking provisions of section 67(6) for release of goods before proper officer - Kanak Timber House v. Assistant Commissioner of Sales Tax - [2024] 160 taxmann.com 394 (Calcutta)
SECTION 75 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - GENERAL
Where after assessee submitted replies to all show cause notices, it was not provided with an opportunity of personal hearing and replies were also not considered by authorities, impugned order was to be set aside and matter was remanded for fresh consideration - Madhu Filament v. Assistant Commissioner (ST) (FAC) - [2024] 160 taxmann.com 396 (Madras)
SECTION 107 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - APPELLATE AUTHORITY - APPEALS TO
Where assessee's failure to avail statutory remedy by filing an appeal within prescribed time limit barred them from seeking relief through a writ petition, therefore, Instant writ petition was to be dismissed on grounds that assessee by passed appellate remedy available to them, which they chose not to utilize while challenging demand notice and assessment order - Aditya Enterprises v. Union of India - [2024] 160 taxmann.com 421 (Patna)
SECTION 129 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DETENTION, SEIZURE AND RELEASE OF GOODS AND CONVEYANCES IN TRANSIT
Where during transport of goods neither invoice nor E-Way Bill were accompanying goods and same were produced subsequent to interception, production of such documents subsequent to interception could not absolve assessee from liability of penalty under section 129(3) - Akhilesh Traders v. State of U.P. - [2024] 160 taxmann.com 94 (Allahabad)
COMPANY AND SEBI LAWS
Key highlights of the SEBI’s Board Meeting decisions
Editorial Note: SEBI through its board meeting dated March 15, 2024, has approved a series of proposals aimed at easing regulatory requirements and streamlining business operations for Foreign Portfolio Investors (FPIs). The highlights of the key approvals made by the Board include a) Exempting additional disclosure requirements for specific FPIs, b) relaxation of timelines for disclosure of material changes by FPIs, c) facilitating ease of doing business for companies coming for IPOs/fundraising
PR NO. 5/2024; DATED 15-03-2024
SEBI relaxes timelines for Foreign Portfolio Investors to disclose material changes
领英推荐
Editorial Note: SEBI in its 204th board meeting has approved a proposal to relax timelines for disclosure of material changes by FPIs. Now, material changes shall be categorised into Type I and Type II. Type I material changes must be informed to designated depository participant (DDP) within 7 working days of occurrence along with req. supporting documents within 30 days. Type II changes must be informed within 30 days. Currently, FPIs are required to disclose material changes to DDP within 7 working days.
Investment in MF schemes including ETFs is not covered under permissible investments by Category III AIF: SEBI
Editorial Note: A Category III AIF registered with SEBI sought informal guidance regarding the permissibility to make investments in the units of Exchange Traded Funds (ETFs) for earning regular income by the fund. In its response, SEBI clarified that in terms of Reg. 18 of SEBI (AIF) Regulations read with Reg. 2(1)(jb) of MF Regulations, an investment in mutual fund schemes involving ETFs is not covered under the list of permissible investments by Category III AIF.
FEMA BANKING AND INSURANCE LAWS
PRESS RELEASE; DATED 15-03-2024
IEPF Authority invites comments from stakeholders to simplify, expedite and streamline claims settlement process
Editorial Note: The IEPF Authority is reaching out to stakeholders for their valuable insights to simplify, expedite and streamline the claims settlement process. In line with its commitment to enhancing the investor experience, IEPFA is soliciting comments from various stakeholders to reimagine the refund process under the Companies Act, 2013. The aim is to ensure a seamless and efficient mechanism for claim refunds from the IEPF Authority. The deadline for submitting comments is April 15, 2024.
SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 - DISHONOUR OF CHEQUE FOR INSUFFICIENCY, ETC., OF FUNDS
Where in a cheque bounce case, accused impleaded petitioner as accused claiming that he was deemed/real owner of accused firm, however, complainant had failed to place on record any evidence to substantiate its claim, on other hand, petitioner had placed on record a certificate of acknowledgement of registration from Deputy Registrar of firm which nowhere shows petitioner as a partner in said firm, also cheque was signed by one 'H' and not petitioner, thus, summoning order as well as complaint against petitioner was to be quashed - Tushar Sharma v. Shellz Techno Pack (P.) Ltd. - [2024] 160 taxmann.com 430 (Delhi)
INSOLVENCY AND BANKRUPTCY CODE
SECTION 54C OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - APPLICATION TO INITIATE PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS
Where NCLT rejected an application filed under section 54C on ground that base resolution plan was devised as a mechanism to transfer control to another person in place of existing promoter group, since base resolution plan had been given no finality, nor it was a resolution plan, which ultimately was required to be approved and there was no occasion for consideration of base resolution plan at time of consideration thus ,impugned order passed by NCLT was to be set aside - Garodia Chemicals Ltd., In re - [2024] 160 taxmann.com 427 (NCLAT- New Delhi)
ACCOUNTS AND AUDIT
Disclosure requirements concerning the write-downs of inventory
Editorial Note: As per Ind AS 2, inventories are valued at lower of cost or net realizable value. If net realizable value falls below cost, inventories are written down. Conversely, if net realizable value rises, previous write-downs are reversed up to original cost. Entities must disclose reasons for inventory write-down reversals and the amount written down as expenses.
OPINIONS
Storage Tank in Not Building or Land - Meenakshi Subramaniam, Former IRS officer - [2024] 160 taxmann.com 420 (Article)
‘Handshake Agreements’ in Small Businesses: The Legal Quandary of Oral Contracts in India - Ridhi Suri, Business Solution Analysis Associate at Deloitte India, Palak Batra, Law Clerk-cum-Research Assistant, Delhi High Court - [2024] 160 taxmann.com 438 (Article)
Electoral Bonds (Political contribution) provisions under the amended Companies Act are unconstitutional – recent Supreme Court Order - Raju Paul, FCS, CIMA (UK) - [2024] 160 taxmann.com 439 (Article)
A sigh of relief for the prisoners’ dilemma - Rishi Raju, Advocate - [2024] 160 taxmann.com 440 (Article)
That’s it from us for today! Stay Tuned for more updates from Taxmann.com
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