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INCOME TAX
SECTION 2(15) OF THE INCOME-TAX ACT, 1961 - CHARITABLE PURPOSE
Promoting business of gems and jewellery: Assessee, a charitable organization registered under section 12A organizing exhibitions all over world for promoting business of gems and jewellery in accordance with its object, was entitled to exemption under section 11 - Deputy Commissioner of Income-tax(E)-2(1) v. Gem And Jewellery Export Promotion Council - [2024] 166 taxmann.com 169 (Mumbai - Trib.)
SECTION 11 OF THE INCOME-TAX ACT, 1961 - CHARITABLE OR RELIGIOUS TRUST - EXEMPTION OF INCOME FROM PROPERTY HELD UNDER
Application of income: Disbursal of loan scholarships to students in India for study overseas was application of income for charitable purposes in India, and, thus, would qualify for exemption under section 11 - ITO v. J N Tata Endowment for Higher Education of Indians - [2024] 166 taxmann.com 126 (Mumbai - Trib.)
SECTION 12A OF THE INCOME-TAX ACT, 1961 - CHARITABLE OR RELIGIOUS TRUST - REGISTRATION OF
Where assessee had valid registration under section 12AB which continued to operate but assessee mistakenly filed fresh application for registration under section 12A which was rejected by competent authority on some ground, since there was no need for assessee to file fresh application, it was permitted to withdraw said application and consequently order on said application would be inconsequential - Purandhar Technical Education Society v. Commissioner of Income-tax (Exemption) - [2024] 166 taxmann.com 129 (Bombay)
Filing of audit report in Form 10B: Where Assessing Officer disallowed exemption under section 11 claimed by assessee-trust on ground that Form 10B was not submitted within due date i.e. under section 139(1), since audit was completed well before due date fixed for filing Form 10B and assessee had provided a reasonable cause of lapse on part of auditors, Commissioner (Appeals) was supposed to take into consideration that non-filing of audit report along with return of income was a procedural omission, and accordingly, he should consider Form 10B and pass an order afresh on merits as per law - Shakuntalam Bal Vikas Society v. Income-tax Officer - [2024] 166 taxmann.com 132 (Delhi - Trib.)
SECTION 37(1) OF THE INCOME-TAX ACT, 1961 - BUSINESS EXPENDITURE - ALLOWABILITY OF
Expenses for holding company: For allowing loss, expenditure must be connected with or related to business carried on by assessee and profits and gains therein; expenditure incurred for giving support services to assessee could not be allowed as revenue expenditure in assessee’s hands - Pipelic Energy Software India Pvt.Ltd. v. Deputy Commissioner of Income-tax - [2024] 166 taxmann.com 179 (Telangana)
SECTION 92B OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - INTERNATIONAL TRANSACTIONS, MEANING OF
Advertisement, marketing and promotion expenses: Advertisement, marketing and promotion expenditure does not constitute an international transaction - Principal Commissioner of Income-tax v. Samsung India Electronics (P.) Ltd. - [2024] 166 taxmann.com 130 (Delhi)
SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM’S LENGTH PRICE
Adjustments - Foreign exchange gain/loss: Foreign exchange gain/loss arising from international transactions is to be considered as an item of operating revenue/cost and not as a non-operating revenue/cost - Principal Commissioner of Income-tax v. Samsung India Electronics (P.) Ltd. - [2024] 166 taxmann.com 130 (Delhi)
SECTION 143 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - ADDITION TO INCOME
Reassessment: Where at time of framing assessment under section 143(3) Assessing Officer had all relevant details of assessee relating to export sale as well as benefit in form of duty drawback, duty of customs or central excise repaid and repayable, cash assistance in absence of any new material, reopening of assessment on ground that export incentives, interest and claims were not routed through profit and loss account, was nothing but mere change of opinion which is not permissible in eye of law - Parixit Irrigation Ltd. v. Assistant Commissioner of Income-tax - [2024] 166 taxmann.com 177 (Gujarat)
SECTION 151 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - SANCTION FOR ISSUE OF NOTICE
Illustrations: Where reasons furnished by Assessing Officer to assessee for reopening of assessment were different from reasons placed for consideration before Joint Commissioner to seek approval under section 151, acceptance of reasons submitted for approval as appropriate reasons would be contrary to sanctity of procedure under section 148 and reassessment order was to be set aside - Floyd Filandro Linhares v. Income-tax Officer - [2024] 166 taxmann.com 125 (Bombay)
SECTION 151A OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - FACELESS ASSESSMENT
In faceless proceedings revenue has to comply with provisions of section 151A while issuing notice under section 148 - Shreenath Finstock (P.) Ltd. v. Union of India - [2024] 166 taxmann.com 133 (Bombay)
SECTION 253 OF THE INCOME-TAX ACT, 1961 - APPELLATE TRIBUNAL - APPEALS TO
Where assessee delayed physical filing of an appeal by 218 days due to unawareness of procedure, delay would be condoned as appeal was initially filed online - Punam Kanwar Bhati v. ITO - [2024] 165 taxmann.com 286 (Jodhpur - Trib.)
SECTION 270AA OF THE INCOME-TAX ACT, 1961 - IMMUNITY FROM IMPOSITION OF PENALTY
Immunity from penalty under section 270AA is available if demand is deposited within 30 days, and delay in filing Form No. 68 is only a procedural lapse - Punam Kanwar Bhati v. ITO - [2024] 165 taxmann.com 286 (Jodhpur - Trib.)
SECTION 271(1)(c) OF THE INCOME-TAX ACT, 1961 - PENALTY - FOR CONCEALMENT OF INCOME
Higher depreciation: Where assessee had disclosed and explained all relevant facts and details pertaining to claim of higher depreciation on biometric devices, merely claiming higher depreciation, which was otherwise supported by various judicial precedents would not lead to conclusion that assessee had furnished inaccurate particulars of income and, thus, no penalty under section 271(1)(c) was imposable on disallowance made by Assessing Officer towards claim of depreciation made by assessee - Mahaonline Ltd. v. Commissioner of Income-tax (Appeals) - [2024] 166 taxmann.com 175 (Mumbai - Trib.)
GOODS AND SERVICES TAX LAWS
New GSTN Advisory for Biometric-Based Aadhaar Authentication for applicants of Bihar, Delhi, Karnataka and Punjab
Editorial Note: The GSTN has issued an update to inform that new functionality is developed for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Bihar, Delhi, Karnataka and Punjab. It also provides the document verification and appointment booking process. It has been rolled out in Bihar, Delhi, Karnataka, and Punjab on 6th September 2024.
CLASSIFICATION OF SERVICES
Reselling of bakery products: Classification for service of serving of cooked items across counter, which is provided by applicant-assessee, is Heading No. 996331 and rate of tax can be 18% or 5% depending on fulfilment of prescribed conditions - Devalokam Bakery, In re - [2024] 166 taxmann.com 139 (AAR - KERALA)
Handover of Building and Civil Structure: Contractual agreement of handing over of Building and Civil Structure is classifiable under other miscellaneous service (SAC 999792) and taxable at 18% under Sl. No. 35 of Notification No. 11/2017-CT (Rate), date 28.06.2017 - Essel Mining Industries Ltd., In re - [2024] 166 taxmann.com 140 (AAR-ODISHA)
SECTION 7 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - SUPPLY - SCOPE OF
Where applicant-assessee has no right or ownership in land, therefore, handover of building structure and railway siding by applicant-assessee to OMCL does not tantamount to sale of building and it is not covered under clause no. 5 of Schedule III - Essel Mining Industries Ltd., In re - [2024] 166 taxmann.com 140 (AAR-ODISHA)
Where applicant-assessee effectively agrees to an obligation to refrain from removing constructed/erected structures for benefit of OMCL against receipt of consideration, therefore, it is covered under scope of supply under Section 7(1) and same is treated as 'supply of service' - Essel Mining Industries Ltd., In re - [2024] 166 taxmann.com 140 (AAR-ODISHA)
SECTION 16 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - ELIGIBILITY AND CONDITIONS FOR TAKING CREDIT
Where assessee claimed that due to mismatch between GSTR-1 filed by supplier and GSTR-3B filed by assessee certain ITC, to which assessee was entitled, had not been granted and he had already filed application for rectification of assessment order, Competent Authority was to be directed to consider and pass orders on said application after affording an opportunity of hearing to assessee - Rinshad Maliyam Karim v. State Tax Officer, State Goods and Services Tax Department - [2024] 165 taxmann.com 556 (Kerala)
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Cryptic show cause notice for GST registration cancellation lacking necessary details set aside - Rayees Metals v. Deputy State Tax Officer - [2024] 164 taxmann.com 646 (Telangana)
Where registration of assessee was cancelled pursuant to a letter issued by GST officer, which was not furnished along with SCN issued to assessee so as to eliciting proper response from assessee, cancellation of registration was in violation of natural justice and thus same was to be set aside - Shakti Metals v. Commissioner, Central Goods and Services Tax - [2024] 165 taxmann.com 519 (Delhi)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REFUND - TAX, REFUND OF
Furnishing of Regional Energy Account (REA) for preceding month, while making an application for refund of tax in succeeding month, would be in accord with provisions of Act and Rules - SEIL Energy India Ltd. v. Union of India - [2024] 165 taxmann.com 558 (Andhra Pradesh)
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
Where non participation of petitioner-assessee was on account of not being aware of proceedings, therefore, on account of interest of justice, impugned order dated 20.12.2023 was set aside and respondent-department was directed to provide a reasonable opportunity to petitioner-assessee - Tvl. Abraham Stores v. Assistant Commissioner (ST), Chengalpattu Assessment Circle - [2024] 166 taxmann.com 182 (Madras)
Where show cause notice was uploaded on portal under ‘view additional notices and orders’ tab and impugned order was passed thereafter under section 73, same was to be set aside with liberty to assessee to file response to SCN - Himanshu Aggarwal Proprietor - HMV Mobile Phone Accessories Company v. Sales Tax Officer Class II - [2024] 165 taxmann.com 555 (Delhi)
SECTION 75 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - GENERAL
Where assessee lacked reasonable opportunity to contest tax demand due to unawareness of show cause notice, impugned order set aside and matter remanded for reconsideration with directions to allow assessee’s reply and provide personal hearing - Seoyon E-Hwa Summit Automotive India (P.) Ltd. v. Deputy Commissioner (ST) - [2024] 164 taxmann.com 648 (Madras)
SECTION 97 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ADVANCE RULING - APPLICATION FOR
Where there is no information on HSN code and tax rate adopted by applicant-assessee, therefore, no ruling can be given - Devalokam Bakery, In re - [2024] 166 taxmann.com 139 (AAR - KERALA)
SECTION 107 OF THE CENTRAL GOODS AND SERVICES TAX ACT,2017 - APPELLATE AUTHORITY - APPEALS TO
Where petitioner-assessee was not well at time of filling of appeal and immediately upon recovery, appeal had been filed, therefore, writ petition was disposed of by directing, appellate authority to receive and dispose of petitioner-assessee's appeal on merits, without going into question of limitation - G.R. Megaa Engineering v. Deputy Commissioner (ST) (GST) - [2024] 166 taxmann.com 167 (Madras)
领英推荐
SECTIONS 129 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DETENTION, SEIZURE AND RELEASE OF GOODS AND CONVEYANCES IN TRANSIT
Incomplete e-way bill due to technical error, without evidence of tax evasion, does not justify penalty or adverse inference of tax evasion - Ram Krishna Gupta v. State of U.P. - [2024] 164 taxmann.com 645 (Allahabad)
SECTION 161 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - RECORDS - RECTIFICATION OF MISTAKES
Failure to consider assessee’s objection to show cause notice violates principles of natural justice; assessment order quashed and matter remanded for fresh consideration with opportunity of hearing - Tvl. R. Thangaraj v. Deputy Commissioner (ST) - [2024] 164 taxmann.com 644 (Madras)
COMPANY AND SEBI LAWS
NOTIFICATION NO. SEBI/LAD-NRO/GN/2024/203, DATED 04-09-2024
SEBI amends FVCI Regulations; introduces ‘Obligations and Responsibilities for FVCIs and Depository Participants’
Editorial Note: SEBI has notified the SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2024. As per the amended norms, new regulations 15A and 15B relating to the ‘Obligations and Responsibilities of Foreign Venture Capital Investors and Designated Depository Participants’ have been inserted. Further, it states that no person must buy, sell or otherwise deal in securities as a FVCI unless he has obtained a certificate granted by a designated depository participant on behalf of the Board.
CIRCULAR NO. SEBI/HO/DDHS/DDHS-POD-1/P/CIR/2024/117, DATED 06-09-2024
Entities with listed commercial papers must now report payment status within one working day: SEBI
Editorial Note: SEBI has modified the timeline for entities with listed commercial papers to report the status of their payment obligations to stock exchanges. The timeline has been reduced from 2 working days to 1 working day after payment becomes due. This change aligns the reporting timeline for intimating stock exchanges w.r.t payment status for listed non-convertible securities and listed commercial papers. This move aims to enhance transparency for stakeholders & ensure timely disclosures by entities.
NOTIFICATION NO. G.S.R 543(E), DATED 06-09-2024
MCA increases consolidated monthly salary of Chairperson and Full-Time members of NFRA
Editorial Note: MCA has notified National Financial Reporting Authority (Manner of appointment and other terms and conditions of service of Chairperson and Members) Amendment Rules, 2024. An amendment has been made to Rule 11 w.r.t ‘salary and allowances’. The MCA has increased the consolidated monthly salary of the Chairperson and full-time members of the NFRA. The Chairperson’s salary has been raised from Rs 4.5 lakhs to Rs 5.625 lakhs, while full-time members will now receive Rs 5 lakhs from Rs 4 lakhs.
SECTION 212 OF THE COMPANIES ACT, 2013 - SERIOUS FRAUD INVESTIGATION OFFICE - INVESTIGATION BY
Where petitioner was Director companies having relationship with company which was being investigated by SFIO, and thus, SFIO issued a look out circular (LOC) against petitioner and no cogent reasons have been given by petitioner, for travelling abroad, instant application by petitioner seeking interim stay of LOC and for permission to travel abroad from 16.08.2024 to 05.09.2024 was to be dismissed accordingly - Vijay Singh Dogra v. Serious Fraud Investigation Office - [2024] 166 taxmann.com 136 (Delhi)
COMPETITION LAW
NOTIFICATION NO. G.S.R 544(E), DATED 02-09-2024
MCA amends CCI pay rules; increases consolidated monthly salary of Chairperson and full-time members of CCI
Editorial Note: The MCA has notified the Competition Commission of India (Salary, Allowances and other terms and conditions of service of Chairperson and other Members) Amendment Rules, 2024. An amendment has been made to Rule 3 relating to ‘pay’. The MCA has increased the consolidated monthly salary of the Chairperson from Rs 4.5 lakhs to Rs 5.625 lakhs, while full-time members will now receive Rs 5 lakhs from Rs 4 lakhs. This shall be effective from January 1, 2024.
FEMA BANKING AND INSURANCE LAWS
CIRCULAR NO. RBI/2024-25/74 A.P. (DIR SERIES) CIRCULAR NO. 16, DATED 06-09-2024
AD Category-I banks are no longer required to submit LRS monthly returns starting from Sept, 2024: RBI
Editorial Note: The Reserve Bank of India (RBI) has introduced changes to the reporting requirements for Authorized Dealer (AD) Category-I banks under the Liberalised Remittance Scheme (LRS). From September 2024, AD Category-I banks will no longer be required to submit monthly LRS returns. AD Cat-I banks would only need to upload transaction-wise details under LRS daily return (CIMS return code: R010) at the close of business of the next working day on the Centralised Information Management System (CIMS).
INSOLVENCY AND BANKRUPTCY CODE
SECTION 31 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - RESOLUTION PLAN - APPROVAL OF
Where petitioner-financial creditor filed a counter claim before Arbitrator against corporate debtor - claimant and, subsequently, a resolution plan of corporate debtor under CIRP was approved by NCLT which stated that any pending counter claims in arbitration would stand extinguished, since claims incorporated in petitioner’s counter claims stood extinguished with approval of said plan, Arbitrator vide interim order arrived at legally correct findings in dismissing said counter claims on ground of such approval and, thus, petition filed against said order was to be dismissed - West Bengal Power Development Corporation Ltd. v. Ujaas Energy Ltd. - [2024] 166 taxmann.com 138 (Calcutta)
SECTION 95 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - INDIVIDUAL/FIRM'S INSOLVENCY RESOLUTION PROCESS - APPLICATION BY CREDITOR
Where applicant-financial creditor filed a petition to initiate an insolvency resolution process against respondent-personal guarantor of a corporate debtor and copies of application were served to both personal guarantor and corporate debtor, in compliance with section 95(5), NCLT vide impugned order appointed RP, directing him to submit his report in terms of section 99 and relevant Regulations within stipulated time period - IFCI Bank Ltd. v. Sangita Arora - [2024] 166 taxmann.com 131 (NCLT - New Delhi)
OPINIONS
Indian Union Budget 2024: A Half-Hearted Boost to Healthcare - Jimit Shah, Partner, Deloitte Haskins & Sells LLP - [2024] 166 taxmann.com 188 (Article)
Reducing Food Wastage: A Vital ESG Initiative for Companies - CS Arti Ahuja Jewani, Partner – Visibility and Branding, Makarand M Joshi & Co., CS Hasti Vora, Research Associate - RND Team, Makarand M Joshi & Co. - [2024] 166 taxmann.com 187 (Article)
Overstepping Boundaries: ROC penalizes Company and its directors for granting loan without mandatory Board Approval - Prof R Balakrishnan, FCS – FCMA - [2024] 166 taxmann.com 186 (Article)
India’s Journey towards Sustainability: Exploring the BRSR Framework and Its Impact - Taxmann, Editorial Team - [2024] 166 taxmann.com 189 (Article)
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