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INCOME TAX
NOTIFICATION NO. S.O. 2208(E). DATED 6-6-2024
CBDT notifies 'Real Estate Appellate Tribunal, Punjab’ for Sec. 10(46) exemption
Editorial Note: The Central Board of Direct Taxes (CBDT) has notified 'Real Estate Appellate Tribunal, Punjab’ for the purposes of clause (46) of section 10 of the Income-tax Act, 1961. The notification is applicable for assessment years 2023-24 to 2027-28 subject to certain conditions.
SECTION 2(14) OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - CAPITAL ASSET
Agricultural land: Where assessee had admitted to have entered into a sale-cum-GPA for purchase of certain land and immediately sold said land to different parties and offered short-term capital gains to tax, however, assessee later submitted that he sold only part of land, since as per registered sale deed, assessee was not owner of entire land but only part of land , no addition could be madefor entire land in hands of assessee - Assistant Commissioner of Income-tax v. Narendra Kumar Kamaraju - [2024] 163 taxmann.com 200 (Hyderabad - Trib.)
SECTION 15 OF THE INCOME-TAX ACT, 1961 - SALARIES - CHARGEABLE AS
Revision: Where Assessing Officer had allowed assessee’s claim of exemption in respect of salary income, since there was huge difference in salary as per Form No. 16 and salary as disclosed in ITR and enquiry made by Pr. Commissioner from employer revealed that annuity amount paid to LIC was not made by employer rather this payment was made on request of employees out of VRS amount and was part of their taxable income and, therefore, same was shown as part of salary in Form No. 16, Assessing Officer’s order was rightly treated as erroneous and pre-judicial to interest of revenue - Mafatbhai Bhikhabhai Parmar v. Principal Commissioner of Income-tax - [2024] 163 taxmann.com 187 (Ahmedabad - Trib.)
SECTION 17(2) OF THE INCOME-TAX ACT, 1961 - SALARIES - PERQUISITES
Revision: Where assessee’s claim of exemption under sections 10(10CC) and 10(10B) was accepted by Assessing Officer, however, enquiry made by Pr. Commissioner from employer revealed that neither any perquisite was paid to assessee nor employer had made any disallowance under section 40(a)(v), therefore, claim of exemption under sections 10(10CC) and 10(10BB) was wrong and incorrect, since Assessing Officer had not conducted proper inquiries in respect of claims made by assessee, same order was rightly treated as erroneous and pre-judicial to interest of revenue - Mafatbhai Bhikhabhai Parmar v. Principal Commissioner of Income-tax - [2024] 163 taxmann.com 187 (Ahmedabad - Trib.)
SECTION 56 OF THE INCOME TAX ACT, 1961 - INCOME FROM OTHER SOURCES – CHARGEABLE AS
Where A.O. had not made any addition as regards very basis, on which proceedings u/s. 147 were initiated in case of assessee, i.e. source of investment in subject property, therefore, he was divested of his jurisdiction from making an independent addition u/s 56(2)(vii)(b) - Neetu Bhoi v. Income-tax Officer-1, Raigarh - [2024] 163 taxmann.com 190 (Raipur - Trib.)
SECTION 69 OF THE INCOME-TAX ACT, 1961 - UNEXPLAINED INVESTMENTS
Bogus purchases: Where AO received information that assessee received accomodation entries with respect to purchases and disallowed entire purchases as bogus, since AO had not disputed sales made out of such purchases, only profit element embedded in such purchases could be brought to tax and, thus, addition was to be restricted at 12.5 per cent of total amount of bogus purchases - Principal Commissioner of Income-tax v. Rushail Pharmadin (P.) Ltd. - [2024] 163 taxmann.com 195 (Bombay)
SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE
Adjustments - International transactions with AEs: Where assessee, a captive service provider to its AEs, also provided certain services to third-party clients and did not maintain any separate segmental for revenue generated or cost incurred from third-party clients, however TPO while making TP adjustments only excluded third-party revenue and failed to proportionately exclude expenses related to third-party, matter was to remanded for recomputation - McKinsey Knowledge Centre India (P.) Ltd. v. Deputy Commissioner of Income-tax - [2024] 163 taxmann.com 188 (Delhi - Trib.)
Adjustments - Interest: Where assessee had outstanding receivables from its AEs, since assessee had not borrowed any fund for its business activity and it being a debt free company, adjustment made on account of interest on receivables was to be deleted - McKinsey Knowledge Centre India (P.) Ltd. v. Deputy Commissioner of Income-tax - [2024] 163 taxmann.com 188 (Delhi - Trib.)
SECTION 145 OF THE INCOME-TAX ACT, 1961 - METHOD OF ACCOUNTING - REJECTION OF ACCOUNTS
Non-production of evidences: Where during course of assessment proceedings, assessee did not produce books of account and other documents as sought by Assessing Officer, therefore, Assessing Officer had rightly rejected books of account of assessee under section 145(3) and estimated income at rate of 10 per cent - Shivam Builders (P.) Ltd. v. Deputy Commissioner of Income-tax - [2024] 163 taxmann.com 196 (Ahmedabad - Trib.)
SECTION 250 OF THE INCOME-TAX ACT, 1961 - COMMISSIONER (APPEALS) - POWERS OF
Additional evidence: Where Commissioner (Appeals) had decided issue solely on basis of registered documents which were admissible in law as they were 'documents in rem' and he had also decided issue on basis of documents available with Assessing Officer, there was no violation of principle of natural justice and rule 46A of IT Rules, 1962 - Assistant Commissioner of Income-tax v. Narendra Kumar Kamaraju - [2024] 163 taxmann.com 200 (Hyderabad - Trib.)
SECTION 270A OF THE INCOME-TAX ACT, 1961 - PENALTY - FOR UNDERREPORTING AND MISREPORTING OF INCOME
Scope: Where assessee did not file return of income under a bona fide belief that since entire transaction of sale of property had been correctly reported in Form No. 26AS, there was no further requirement to file return of income and disclose such transaction in return of income, it could not be said that assessee had intention to misrepresent or suppress any facts and thus, no penalty under section 270A was to be levied - Parulben Vijaykumar Patel v. Income-tax Officer - [2024] 163 taxmann.com 191 (Ahmedabad - Trib.)
SECTION 271(1)(c) OF THE INCOME-TAX ACT, 1961 - PENALTY - FOR CONCEALMENT OF INCOME
Inaccurate particulars of income: Where order giving effect (OGE) to MAP Order for assessment year 2012-13 with respect to change in losses carried forward for set off in subsequent years was received by assessee after filing of return was barred by time and AO made disallowance of excess brought forward losses/unabsorbed depreciation and levied penalty under section 271(1)(c), since underlying disallowance had not arisen with respect to furnishing inaccurate particulars of income at time of filing of return and assessee had paid taxes along with interest way before initiation of assessment proceedings, impugned penalty was not justified - Deputy Commissioner of Income-tax v. Mitsubishi Heavy Industries -VST Diesel Engines (P.) Ltd. - [2024] 163 taxmann.com 189 (Bangalore - Trib.)
GOODS AND SERVICES TAX LAWS
SECTION 9 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY & COLLECTION OF TAX
Where liability to tax under GST vests with service provider-shipping line/freight forwarder, therefore, no further liability lies with applicant in respect of same service, as same is in nature of input services received by applicant; applicant is not liable to pay GST on export freight - DCW Ltd., In re - [2024] 163 taxmann.com 157 (AAR - TAMILNADU)
SECTION 16 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - ELIGIBILITY AND CONDITIONS FOR TAKING CREDIT
Time limit for furnishing return for month of September is to be treated as 30th November in each financial year with effect from 1-7-2017; assessees who had filed their returns for month of September on or before 30th November, their claim for ITC should be processed, if they are otherwise eligible for ITC - M. Trade Links v. Union of India - [2024] 163 taxmann.com 218 (Kerala)
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Where registration of assessee was cancelled retrospectively without giving proper reasons or opportunity, and assessee did not wish to continue business, High Court modified cancellation order to treat it as prospective cancellation, permitting revenue to take steps for recovery after following due process - Udayraj Yadav v. Sales Tax Officer Class II/AVATO - [2024] 163 taxmann.com 201 (Delhi)
SECTION 62 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ASSESSMENT - NON - FILERS OF RETURNS
Where assessee/applicant was arrested under Section 69 of CGST Act for offences under Section 132(1)(b) and (c) without proper tax liability assessment, High Court granted bail, noting that continued detention was unjustified as custodial interrogation was not sought and investigation was at advanced stage - Deepanshu Srivastava v. Union of India - [2024] 163 taxmann.com 186 (Allahabad)
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 assessee/petitioner challenged assessment order alleging lack of opportunity to contest tax demand, High Court quashed order and remanded matter for fresh adjudication after providing opportunity to assessee/petitioner, subject to petitioner remitting 10% of disputed tax demand - Raw Enterprises v. State Tax Officer - [2024] 163 taxmann.com 194 (Madras)
Where adjudicating authority issued unreasoned order under Section 73 of UP GST Act, 2017, ignoring assessee's/petitioner's explanation and arbitrarily applying highest tax rate, High Court set it aside and remanded for fresh reasoned order with proper hearing - Vikas Varyani v. State of U.P - [2024] 163 taxmann.com 162 (Allahabad)
SECTION 75 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - GENERAL
Where assessee/petitioner contended that opportunity of personal hearing was not provided in accordance with Section 75(5) of CGST Act, High Court quashed impugned order and directed respondents to re-adjudicate matter after providing last opportunity of personal hearing - Pinky Marbles v. Director General of Goods and Service Tax Intelligence - [2024] 163 taxmann.com 192 (Rajasthan)
SECTION 95 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ADVANCE RULING - DEFINITIONS
Where second query relating to tax liability of service provider-freight forwarder/shipping line, who is not applicant, therefore, aforesaid query need not to be answered by Authority for Advance Ruling - DCW Ltd., In re - [2024] 163 taxmann.com 157 (AAR - TAMILNADU)
SECTION 100 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ADVANCE RULING - APPELLATE AUTHORITY - APPEAL TO
Where the assessee sought an advance ruling on GST applicability for exporting frozen shrimps (HSN 0306) in individual pouches/boxes and master cartons up to 25 kg each, the Authority ruled that such pre-packaged and labelled supplies up to 25 kg attract GST, regardless of whether for domestic or export supply - Asvini Fisheries (P.) Ltd., In re - [2024] 163 taxmann.com 202 (AAR - TAMILNADU)
领英推荐
SECTION 129 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DETENTION, SEIZURE AND RELEASE OF GOODS AND CONVEYANCES IN TRANSIT
Where goods were accompanied by a tax invoice and an expired e-way bill, and delay was due to vehicle breakdown, High Court quashed tax and penalty orders, ruling that merely not extending e-way bill validity is insufficient for a penalty under Section 129(3) without intent to evade tax - Prahlad Rai Vijay Kumar v. State of U.P. - [2024] 163 taxmann.com 193 (Allahabad)
SECTION 168A OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - GOVERNMENT - POWER TO EXTEND TIME LIMIT IN SPECIAL CIRCUMSTANCES
Since considering spread of COVID-19 pandemic (i.e., force majeure) during March, 2020 to February, 2022, Notification No. 09/2023-Central Tax (CGST) and Notification No. 515/XI-2-23-9 (47)/17-T.C.215-U.P.Act-1-2017-Order-(273)-2023, (UP State Government) had extended time granted to Adjudicating Authorities to pass adjudication orders with reference to proceedings for financial year 2017-18 upto 31-12-2023, writ petition challenging issuance of impugned notifications must fail - Graziano Trasmissioni v. Goods and Services Tax - [2024] 163 taxmann.com 126 (Allahabad)
COMPANY AND SEBI LAWS
MASTER CIRCULAR NO. SEBI/HO/MIRSD/MIRSDSECFATF/P/CIR/2024/78, DATED 06-06-2024
SEBI issues guidelines on ‘Anti-Money Laundering Standards and Combating Financing of Terrorism’ for intermediaries
Editorial Note: SEBI has issued guidelines on ‘Anti-Money Laundering Standards and Combating Financing of Terrorism’ for intermediaries. The guidelines set out the essential principles for combating Money Laundering (ML) and Terrorist Financing (TF) and provide detailed procedures and obligations for all registered intermediaries to follow and comply with. Also, intermediaries may require clients to specify additional disclosures to address concerns about ML and suspicious transactions undertaken by clients.
CIRCULAR NO. SEBI/HO/MIRSD/SEC FATF/P/CIR/2024/ 79, DATED 06-06-2024
SEBI amends ‘Master Circular on KYC norms’ for KRAs Integration with Central KYC Records Registry
Editorial Note: The SEBI has notified amendment in ‘Master Circular on KYC Norms’ with respect to Uploading of KYC information by KYC Registration Agencies (KRAs) to Central KYC Records Registry (CKYCRR). Now, KRAs shall ensure that existing KYC records of legal entities and of individual clients are uploaded on to CKYCRR within a period of 6 months from 01.08.2024 i.e., 01.02.2025. Also, KRAs shall integrate with CKYCRR and start uploading KYC records by 01.08.2024.
SECTION 318 OF THE COMPANIES ACT, 2013 - VOLUNTARY WINDING UP
Where affairs were conducted in manner not prejudicial to interest of members, company was to be wound and would be deemed to be dissolved with effect from date of filing petition for its dissolution and Official Liquidator was satisfied that necessary compliance of Section 497 and other relevant provisions of Act had been made and affairs of company have not been conducted in a manner prejudicial to interest of its members or to public interest and said company be dissolved, petitioner company was to be wound up and would be deemed to be dissolved with effect from date of filing petition for its dissolution - GE Strategic Investments India, In re - [2024] 163 taxmann.com 204 (Delhi)
FEMA BANKING AND INSURANCE LAWS
NOTIFICATION NO. IFSCA/2020-21/NICCL/245, DATED 29-5-2024
IFSC grants recognition to NSE IFSC Limited for one year
Editorial Note: The International Financial Services Centres (IFSC) Authority has granted recognition to NSE IFSC Limited. Recognition to said Clearing Corporation is granted for one year, commencing on the 29th day of May 2024 to 28th day of May 2025 in respect of contracts in securities.
PRESS RELEASE: 2024-2025/453, DATED 07-06-2024
RBI's Monetary Policy Committee keeps Repo Rate unchanged at 6.50%
Editorial Note: The RBI’s Monetary Policy Committee (MPC) at its meeting today on 07.06.2024 decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 %. Further, the standing deposit facility (SDF) rate remains unchanged at 6.25 % and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 %. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
PRESS RELEASE NO. 2024-2025/454, DATED 07-06-2024
RBI proposes to set up a 'Digital Payments Intelligence Platform' to mitigate payment fraud risks
Editorial Note: RBI has released a Statement on Developmental and Regulatory Policies. Presently, many frauds occur by influencing unsuspecting victims to make the payment or share credentials. Now, the RBI has proposed to set up a 'Digital Payments Intelligence Platform' which will harness advanced technologies to mitigate payment fraud risks. The RBI has also constituted a committee to examine various aspects of setting up a digital public infrastructure for Digital Payments Intelligence Platform.
NOTIFICATION NO. G.S.R 314(E), DATED 06-06-2024
Govt. amends SEZ Rules; IFSC units can now import, export, and supply aircraft engines to/from DTA
Editorial Note: The Govt. has notified Special Economic Zones (Third Amendment) Rules, 2024. An amendment has been made to Rule 29A, which relates to the ‘procedure for importing, exporting, procuring, or supplying aircraft to the Domestic Tariff Area (DTA) by a unit in IFSC’. As per the amended norms, the govt. has expanded the scope of rule by substituting the word ‘aircraft’ with the words ‘aircraft or aircraft engine’. Now, units in IFSC can import, export, procure or supply aircraft engines to/from DTA.
INSOLVENCY AND BANKRUPTCY CODE
SECTION 12A OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 - CORPORATE INSOLVENCY RESOLUTION PROCESS - WITHDRAWAL OF APPLICATION
Where application for approval of resolution plan submitted by respondent-SRA was pending before NCLT however, NCLT without giving respondent an opportunity to respond, directed CoC to consider settlement proposal filed by appellant-ex-director under section 12A, order passed by NCLAT rejecting such directions was to be upheld - Pratham Expofab (P.) Ltd. v. One City Infrastructure (P.) Ltd. - [2024] 163 taxmann.com 206 (SC)
ACCOUNTS AND AUDIT
ICAI seeks opinion on retaining/revising the existing limit of 60 tax audit assignment by June 9, 2024
Editorial Note: The members of ICAI are required to adhere to the Council Guidelines for conducting the tax audit under the provisions of the Income-tax Act, 1961 which lays down the limit of 60 tax audit assignments per member in an assessment year. ICAI is seeking opinion on retaining/revising the existing limit of 60 tax audit assignment by June 9, 2024.
ICAI invites member’s opinions on amendment proposed by IASB on IFRS 9 and IFRS 7
Editorial Note: Considering the challenges faced in the accounting of renewable electricity IASB has proposed amendment in IFRS 9 and IFRS 7.The amendment discusses about the factors to be considered by entity when applying the provision of IFRS 9 in respect of renewable electricity contracts and also about its hedge accounting requirements. Thus, to adhere with the exposure draft issued by IASB, ICAI invites its member to provide their opinion on the proposed amendment by July 8, 2024.
OPINIONS
World Tax News: Spain introduces draft bill for implementing Pillar 2 Global Minimum Tax and more… - Taxmann, Editorial Team - [2024] 163 taxmann.com 217 (Article)
Prosecution under GST: Provisions valid or Constitutional overreach? - Manoj Mishra, Partner, Grant Thornton Bharat LLP, Shilpa Verma, Manager, Grant Thornton Bharat LLP - [2024] 163 taxmann.com 215 (Article)
ROC slams hefty fines on Company and its directors for calling EGM without notice - A Case Study - Prof R Balakrishnan, FCS – FCMA - [2024] 163 taxmann.com 207 (Article)
The Corporate Debtor’s Perspective: Strategies, Outcomes and Legal Remedies in Insolvency and Bankruptcy Proceedings - Shashwat Anand, Advocate, Supreme Court of India & High Court of Allahabad, Rajesh Inamdar, Advocate-on-Record, Supreme Court of India - [2024] 163 taxmann.com 216 (Article)
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