Daily Tax | Corporate Laws | Accounting Digest
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Welcome to Taxmann.com | Newsletter – Reporting the Facts with Taxmann’s Analysis. Today’s Edition Brings to You with a Section-wise Digest of Statutes | Judgments?| Opinions.
INCOME TAX
SECTION 2(14) OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - CAPITAL ASSETS
Right of possession: Where assessee entered into a 'possession agreement' for grant of possession of a land and claimed that 'right of possession' in respect of such land was a capital asset but assessee failed to establish how he entered into said 'agreement' when he was not having ownership of property, matter was to be restored to file of Assessing Officer to examine aforesaid facts - Gunvantbhai Narandas Patel v. Income-tax Officer - [2024] 164 taxmann.com 625 (Ahmedabad - Trib.)
SECTION 2(15) OF THE INCOME-TAX ACT, 1961 - CHARITABLE PURPOSE
Education : Where Assessing Officer accepted charitable nature of educational activities undertaken by assessee-society but Commissioner (Exemption) set aside assessment on ground that assessee was not engaged in any educational or charitable activity as contemplated under section 2(15) as it was not affiliated with any regulatory body but Tribunal held that affiliation with and recognition by regulatory authority are not essential attributes of education under section 2(15), impugned order passed by Tribunal did not require any interference - Commissioner of Income Tax v. NIIT Foundation - [2024] 164 taxmann.com 628 (Delhi)
SECTION 5 OF THE INCOME-TAX ACT, 1961 - INCOME - CONCEPT OF REAL INCOME
Where assessee had not included notional provisions of gratuity and leave encashment to reduce its income, same could not be treated as taxable income - Saurashtra Gramin Bank v. ACIT - [2024] 164 taxmann.com 631 (Rajkot - Trib.)
SECTION 36(1)(viia) OF THE INCOME-TAX ACT, 1961 - BAD DEBT - RECTIFICATION OF MISTAKE
In order to claim deduction under section 36(viiia), assessee is required to make provision and debit same from profit and loss account - Deputy Commissioner of Income-tax v. Jila Sahakari Kendriya Bank Maryadit - [2024] 164 taxmann.com 627 (Raipur - Trib.)
SECTION 68 OF THE INCOME-TAX ACT, 1961 - CASH CREDITS
Loans: SLP dismissed against order of High Court that where assessment was sought to be reopened in case of assessee on ground that Assessing Officer had received information from investigation wing that assessee had raised a loan from KG Group, through TTPL and POCPL, which were dubious entities, however, there was no reference to how Assessing Officer had, at that juncture, formed a view that they were dubious entities, Tribunal rightly held that Assessing Officer had proceeded in a mechanical manner, without independent application of mind - Commissioner of Income-tax v. Spirit Global Construction (P.) Ltd. - [2024] 164 taxmann.com 632 (SC)
SECTION 145 OF THE INCOME-TAX ACT, 1961 - METHOD OF ACCOUNTING - SYSTEM OF ACCOUNTING
Provisions made by assessee-bank for gratuity and leave encashment were not taxable income, as they were merely accounting entries to match fund balances and not actual income or expenses - Saurashtra Gramin Bank v. ACIT - [2024] 164 taxmann.com 631 (Rajkot - Trib.)
SECTION 148 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - ISSUANCE OF NOTICE FOR
Procedural compliance: Where Assessing Officer treated initial section 148 notice as section 148A(b) notice as per Supreme Court decision but reassessment order was passed without issuing fresh section 148 notice, same was without jurisdiction and void ab initio - Ranjit Singh v. Income-tax Officer - [2024] 164 taxmann.com 629 (Amritsar - Trib.)
Faceless assessment: Where notice issued under section 148 and order under section 148A(d) were issued by Jurisdictional Assessing Officer (JAO) and not under mandatory faceless mechanism, reopening proceedings initiated under section 148 were to be quashed - Sundaram Multi Pap Ltd. v. Assistant Commissioner of Income-tax - [2024] 164 taxmann.com 608 (Bombay)
SECTION 148A OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - CONDUCTING INQUIRY, PROVIDING OPPORTUNITY BEFORE ASSESSMENT
Faceless Assessment : JAO had no authority to issue a notice under section 148A(b) as necessarily such exercise if at all was required to be undertaken under faceless assessment scheme - Royal Bitumen (P.) Ltd. v. Assistant Commissioner of Income-tax - [2024] 164 taxmann.com 606 (Bombay)
SECTION 245D OF THE INCOME-TAX ACT, 1961 - SETTLEMENT COMMISSION - PROCEDURE ON APPLICATION UNDER SECTION 245C
Period of limitation: SLP dismissed against order of High Court that where order passed by Settlement Commission was beyond limitation prescribed under section 245D(4A)(iii), by operation of section 245HA(1)(iv), Single Judge was right in reaching a conclusion that said order was abated and as such, Settlement Commission ought to have entertained rectification application filed by assessee - Commissioner of Income-tax (Central) v. RNS Infrastructure Ltd. - [2024] 164 taxmann.com 630 (SC)
SECTION 292B OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME NOT TO BE INVALID ON CERTAIN GROUNDS
Mistake: SLP dismissed against order of High Court that a mistake, which can be corrected under section 292B, should be such that if excised it does not change tenor and scope of documents/proceedings referred to therein - Commissioner of Income-tax v. Spirit Global Construction (P.) Ltd. - [2024] 164 taxmann.com 632 (SC)
GOODS AND SERVICES TAX LAWS
FORM GSTR-1A would be available to all the taxpayer from August 2024: GSTN Update
Editorial Note: The GSTN has issued an advisory to inform that FORM GSTR-1A would be available to all the taxpayer from August 2024, through which details furnished in FORM GSTR-01 for the month of July 24 can be amended. The corresponding effect of the changes made through FORM GSTR-1A on the liability of the taxpayer shall be reflected in FORM GSTR-3B for the same tax period.
CLASSIFICATION OF GOODS
Transportation of minerals: Where transportation of coal (minerals) by applicant-assessee within a mining area, from mining pit head or coal stockyard located at mines to railway siding, as mentioned in agreement will be classified under SAC 9966 and applicable tax rate is 12% - Utkal Coal Mining India (P.) Ltd., In re - [2024] 164 taxmann.com 642 (AAR-ODISHA)
SECTION 16 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - ELIGIBILITY AND CONDITIONS FOR TAKING CREDIT
Where assessee, being unaware of proceeding pertaining to mismatch between GSTR 3B return and auto populated GSTR 2A, could not respond to show cause notice as same was uploaded on portal in “view additional notices and orders” and impugned order was passed confirming tax proposal, same was to be set aside and matter was to be remanded in interest of justice - Tvl. Annai Earth Movers v. Assistant Commissioner (ST) (FAC) - [2024] 164 taxmann.com 177 (Madras)
SECTION 17 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - CREDIT AND BLOCKED CREDITS, APPORTIONMENT OF
Where assessee had imported timber from overseas customer and had paid IGST at time of import, since there was no scope for auto population of Input Tax Credit on IGST, impugned order passed by Adjudicating Authority imposing tax on assessee on account of difference in return filed by assessee in Form GSTR-3B and auto populated Input Tax Credit in Form GSTR-2A was to be set aside - Xavier Timber v. State Tax Officer - [2024] 164 taxmann.com 425 (Madras)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REFUND - TAX, REFUND OF
Where assessee filed refund application for excess GST paid to service provider, writ petition dismissed holding that refund application should have been filed by registered service provider and not by assessee who received service - Tvl. Norton Granites & Properties (P.) Ltd. v. Commercial Tax Officer - [2024] 164 taxmann.com 636 (Madras)
SECTION 107 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - APPELLATE AUTHORITY - APPEALS TO
Where assessee filed an appeal against order passed under section 73(9) and also made a pre-deposit as is required for maintaining appeal, however, there was a delay in filing appeal due to medical reasons, appellate authority ought to have condoned delay and heard appeal on merits - Farinni Leather (P.) Ltd. v. Joint Commissioner of State Tax - [2024] 164 taxmann.com 516 (Calcutta)
SECTION 130 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - CONFISCATION OF GOODS OR CONVEYANCES AND LEVY OF PENALTY
Where show cause notice was issued to assessee under section 130 calling upon assessee to show cause why goods and vehicle under transport should not be confiscated, however, said notice lacked detailed reasons and necessary material was not provided to assessee and also confiscation order contains various details which were not placed before assessee in show cause notices, thereby violating principles of natural justice and thus, same were to be set aside - Cluster Enterprises v. Deputy Assistant Commissioner (ST)-2 - [2024] 164 taxmann.com 624 (Andhra Pradesh)
COMPANY AND SEBI LAWS
领英推荐
NOTIFICATION NO. SEBI/LAD-NRO/GN/2024/195, DATED 25-07-2024
Insider trading restrictions for Mutual Fund units to be enforced from Nov 1, 2024: SEBI
Editorial Note: SEBI has notified November 1, 2024, as the effective date for the enforcement of norms relating to restrictions on communication about and trading by insiders in the units of mutual funds. It states that an insider cannot trade in the units of a mutual fund scheme when in possession of UPSI, which may have a material impact on the net asset value of a scheme or on the interest of the unit holders of the scheme.
COMPETITION LAW
SECTION 3 OF THE COMPETITION ACT, 2002 - PROHIBITION OF AGREEMENTS - ANTI-COMPETITIVE AGREEMENTS
Where information was filed impugning joint tender floated by Oil Marketing Companies for procurement of 'Ethanol', in view of fact that such joint tendering had also not been found to have resulted in any appreciable adverse effect on competition in market for supply of Ethanol, issuance of joint tender was purely on account of commercial and operational considerations and to meet Government's directives in a cost effective manner, and thus, could not be construed to be anti-competitive or in violation of provisions of Section 3(3); it is no longer res integra that price parallelism cannot be sole criteria to establish a cartel and evidence of parallel pricing must be supplemented with "plus factors" showing that alleged conduct is conscious and not result of independent business decisions - India Glycols Ltd. v. Indian Sugar Mills Association - [2024] 164 taxmann.com 639 (CCI)
FEMA BANKING AND INSURANCE LAWS
CIRCULAR NO. RBI/2024-25/55 DOS.CO.PPG.SEC.NO.8/11.01.005/2024-25, DATED 26-07-2024
RBI issues ‘Prompt Corrective Action’ framework for Primary (Urban) Cooperative Banks
Editorial Note: RBI has issued a prompt corrective action (PCA) framework for primary urban cooperative banks. The objective of framework is to enable supervisory intervention at an appropriate time and require the UCBs to initiate and implement remedial measures in a timely manner to restore their financial health. The framework shall apply to all UCBs under Tier 2, Tier 3 and Tier 4 categories except UCBs under All Inclusive Directions. The provisions of framework will be effective from April 01, 2025.
FED MASTER DIRECTION NO.15/2024-25, DATED 24-07-2024
RBI issues master direction on Overseas Investment
Editorial Note: RBI has issued the master direction on Overseas Investment (OI). This master direction compiles instructions issued on Overseas Investment by persons resident in India. Further, these directions lay down the modalities for conducting the foreign exchange business by the Authorised Persons with their customers/ constituents with a view to implementing the OI Rules and the OI Regulations.
SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 - DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT
Authorised signatory of a company is not liable to pay interim compensation u/s 143A of the NI Act in the case of cheque dishonour by the company - Shri Gurudatta Sugars Marketing (P.) Ltd. v. Prithviraj Sayajirao Deshmukh - [2024] 164 taxmann.com 637 (SC)
INSOLVENCY AND BANKRUPTCY CODE
SECTION 10A OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - SUSPENSION OF INITIATION OF
Where operational creditor challenged NCLTs on ground that it had filed an application under section 9 for an unpaid amount but, NCLT dismissed said application, citing section 10A, which provides protection for default occurred during a specific period, since operational creditor had not placed any evidence on record to show how default on third invoice dated 24-3-2020 did not arise during section 10A prohibited period, impugned order passed by NCLT holding that said invoice was hit by section 10A and rejecting section 9 application was to be upheld - Manishaas Infratecho Solutions (P.) Ltd. v. Bhonu Hulshi Real Estate (P.) Ltd. - [2024] 164 taxmann.com 641 (NCLAT- New Delhi)
ACCOUNTS AND AUDIT
Recognition of Forex fluctuation for loan received in Functional Currency from Overseas Agencies
Editorial Note: A Limited is an infrastructure company engaged in construction of bridge & airport ceiling. Since, construction is capital intensive business the company has availed loan from overseas agencies with the help of government of India. Despite, availing foreign currency loan, company has not considered the effect of forex fluctuation as the company is of opinion that receipt and payment of loan shall be in INR. Read to know the accounting of forex fluctuation in the extant case.
OPINIONS
Decriminalising TDS default in case of delayed deposit – a welcome proposal by FM in Budget 2024 - Preeti Goel, Senior Tax Lawyer - [2024] 164 taxmann.com 657 (Article)
Budget 2024: Condonation of delay in filing an application for registration under Section 12AB - Adv. (Dr.) Manoj Fogla, LL.B., M.A. (Phil.), FCA, Ph.D., CA. Suresh Kumar Kejriwal, M.Com, FCA, FCMA, CA. Tarun Kumar Madaan, B.Com, FCA, DIIT-ICAI - [2024] 164 taxmann.com 655 (Article)
Budget 2024 – Navigating uncertainties for Non-residents - Jimit Devani, Partner, Deloitte Haskins & Sells LLP, Sannidhi Shah, Manager, Deloitte Haskins & Sells LLP, Disha Chheda, Assistant Manager, Deloitte Haskins & Sells LLP - [2024] 164 taxmann.com 658 (Article)
Budget 2024: Companies can no longer make Gifts for Public Causes to Charitable or Religious Trust - Adv. (Dr.) Manoj Fogla, LL.B., M.A. (Phil.), FCA, Ph.D., CA. Suresh Kumar Kejriwal, M.Com, FCA, FCMA, CA. Tarun Kumar Madaan, B.Com, FCA, DIIT-ICAI - [2024] 164 taxmann.com 653 (Article)
Is dropping of rate of tax on capital gain to 12.5% a bait to bury cost indexation benefits - Raji Nathani, FCMA, Advocate, Gopal Nathani, FCA - [2024] 164 taxmann.com 652 (Article)
New Regime vs. Old Regime: A Detailed Analysis - CA Sandeep Biradar, Managing Partner at Kandela Biradar & Co LLP - [2024] 164 taxmann.com 650 (Article)
Modi 3.0 Introduces Vivad Se Vishwas 2.0 - Bhavin Shah, Partner, Tax & Regulatory Services, MSKB & Associates LLP - A member firm of BDO International - [2024] 164 taxmann.com 618 (Article)
The Angel Now Rests In Peace… - Hema Lohiya, Partner, Deloitte Haskins and Sells LLP, Manshi Golchha, Associate Director, Deloitte Haskins and Sells LLP - [2024] 164 taxmann.com 651 (Article)
Budget 2024-25 A brief Insight on GST Proposals - Dhruvank Parikh, CA, M. Com, LLB - [2024] 164 taxmann.com 656 (Article)
Union Budget 2024-25 - Key Proposals under Goods and Services Tax Law - Umang Shah, Asst. General Manager – GST, RSM India - [2024] 164 taxmann.com 654 (Article)
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8 个月Thanks for sharing, Every Indian must make a note of it and do the needful at the earliest ??