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INCOME TAX
SECTION 4 OF THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 - FILING OF DECLARATION AND PARTICULARS TO BE FURNISHED
Rectification order: Where petitioner received Form No. 5 pursuant to declaration made under DTVSV Act for settlement of disputes, liability determined under provisions of DTVSV Act could not be reopened or revised by any Income Tax authority - Satish Kumar Dhingra v. Assistant/Deputy Commissioner of Income-tax Circle 61(1) - [2024] 166 taxmann.com 290 (Delhi)
SECTION 11 OF THE INCOME-TAX ACT, 1961 - CHARITABLE OR RELIGIOUS TRUST - EXEMPTION OF INCOME FROM PROPERTY HELD UNDER
Form no. 10: Where Assessing Officer made addition to assessee trust's income on ground that assessee had spent less than mandatory 85 per cent of total receipts without considering Form No. 10 filed before him by assessee explaining amount of money which was yet to be spent and how it planned to spend remaining amount in course of next five years, NFAC was unjustified in upholding AO’s order and dismissing assessee's appeal without considering it on merit, thus, matter was to be remanded back to file of NFAC for de novo adjudication - Giridih Carmel Convent School v. DCIT (Exemption Circle) - [2024] 166 taxmann.com 282 (Ranchi-Trib.)
SECTION 28(i) OF THE INCOME-TAX ACT, 1961 - BUSINESS INCOME - CHARGEABLE AS
Sale on investment: Where assessee had wrongly credited to profit and loss account Rs. 5.11 crores on account of profit on sale of investment and Assessing Officer made an addition of same under business income without giving effect to revised computation on ground that assessee could not produce any evidence as to how amount of Rs. 5.11 crores was arrived at, since assessee was ready to produce all such documentary evidence consisting of copy of computation, acknowledgement, revised computation, submissions etc. in support of his contentions, matter was to be Assessing Officer for deciding issue afresh on merits - Andhra Pradesh State Co-operative Bank Ltd. v. Asst. Commissioner of Income-tax - [2024] 166 taxmann.com 293 (Hyderabad - Trib.)
SECTION 32 OF THE INCOME-TAX ACT, 1961 - DEPRECIATION - ALLOWANCE/RATE OF
Investment: No depreciation would be allowable to assessee on investment treated as current assets - Andhra Pradesh State Co-operative Bank Ltd. v. Asst. Commissioner of Income-tax - [2024] 166 taxmann.com 293 (Hyderabad - Trib.)
SECTION 36(1)(vii) OF THE INCOME-TAX ACT, 1961 - BAD DEBTS
General: Where assessee had raised an additional ground for first time before Tribunal relating to entitlement of assessee under section 36(1)(vii) to claim deduction on account of bad debts actually written off in their books of account, since this issue had not been considered by lower authorities, matter was to be remanded to Assessing Officer with direction to examine - Andhra Pradesh State Co-operative Bank Ltd. v. Asst. Commissioner of Income-tax - [2024] 166 taxmann.com 293 (Hyderabad - Trib.)
SECTION 36(1) (viia) OF THE INCOME-TAX ACT, 1961 - BAD DEBTS, IN CASE OF BANKS
Scope of provision: For purpose of invoking provisions of section 36(1)(viia), it is essential for assessee bank to make a provision in books of account for bad and doubtful debts - Andhra Pradesh State Co-operative Bank Ltd. v. Asst. Commissioner of Income-tax - [2024] 166 taxmann.com 293 (Hyderabad - Trib.)
SECTION 50C OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - SPECIAL PROVISION FOR COMPUTATION OF FULL VALUE CONSIDERATION
Reassessment: Where Assessing Officer on basis of an information received from ITO that there was a difference between sale consideration and fair market value and, accordingly, provisions of 50C were applicable, issued a notice under section 148; in view of fact that issue with regard to valuation of land in question was scrutinised during course of assessment proceedings and petitioner had disclosed fully and truly all materials necessary for assessment, reopening of assessment was to be quashed and set-aside - Nikita Jenishkumar Patel v. Income-tax Officer - [2024] 166 taxmann.com 287 (Gujarat)
SECTION 148 OF THE INCOME-TAX ACT, 1961 - INCOME ESCAPING ASSESSMENT - ISSUE OF NOTICE FOR
Validity of: Where impugned notice issued under section 148A(b), order passed thereon under section 148A(d) and consequent notice issued under section 148 were all issued by Jurisdictional Assessing Officer (JAO) and not by a Faceless Assessing Officer (FAO), as was required by provisions of section 151A, impugned notices were to be quashed - Macleods Pharmaceuticals Ltd. v. Assistant Commissioner of Income-tax - [2024] 166 taxmann.com 284 (Bombay)
GOODS AND SERVICES TAX LAWS
SECTION 9 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - LEVY & COLLECTION OF TAX
Where assessee’s contentions on classification of goods and ITC mismatch were not properly addressed, order set aside and matter remanded for fresh consideration after providing reasonable opportunity to assessee - Tvl. Boomi Agro Needs v. Joint Commissioner of Commercial Taxes - [2024] 164 taxmann.com 791 (Madras)
SECTION 12 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - SUPPLY - TIME OF SUPPLY OF GOODS
Where assessee demanded interest on delayed payment for goods sold as per terms of invoice and debited interest in account of purchaser, in view of section 12(6) GST is to be paid on date on which supplier of goods receives such addition in value through interest of delayed payments - Pink City Steel Rolling Mills (P.) Ltd., In re - [2024] 166 taxmann.com 295 (AAR- RAJASTHAN)
SECTION 16 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - ELIGIBILITY AND CONDITIONS FOR TAKING CREDIT
Where assessee had already submitted reply to show-cause notice issued alleging excess claim of ITC, however same was rejected by simply stating ‘not satisfied’ and without assigning adequate reason, order passed thereafter confirming tax liability was in violation of principles of natural justice, thus, same could not be sustained - Ella Tea Industry v. Deputy State Tax Officer - [2024] 165 taxmann.com 820 (Madras)
SECTION 17 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - INPUT TAX CREDIT - CREDIT AND BLOCKED CREDITS, APPORTIONMENT OF
Where assessment orders were passed after issuance of show cause notices in Form DRC-01A, since assessee did not file reply to said notices, it was fault of assessee, however assessee was to be permitted to file appeal within 30 days - Gog Steel Alloys (P.) Ltd. v. State Tax Officer (FAC) - [2024] 165 taxmann.com 823 (Madras)
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Where GST registration of petitioner’s father was cancelled retrospectively by impugned order on ground that it had not filed returns for a continuous period of six months and in fact assessee's father had expired and since then none of its legal heirs had carried on business, impugned order was to be modified to extent that it would be operative from date on which assessee's father expired - Varun Kumar Arya v. Commissioner of Delhi Goods and Service Tax - [2024] 165 taxmann.com 630 (Delhi)
SECTION 35G OF THE CENTRAL EXCISE ACT, 1944 - HIGH COURT - APPEAL TO
Appeal lies to Supreme Court when case falls within the phrase “determination of any question relating to rate of Service tax”; appeal to High Court is not maintainable - Principal Commissioner CGST, Gurugram v. Hitachi Metal India (P.) Ltd. - [2024] 163 taxmann.com 707 (Punjab & Haryana)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REFUND - TAX, REFUND OF
High Court refused to entertain writ petition challenging rejection of refund claim as assessee had an alternative efficacious remedy of filing appeal - GEA Westfalia Separator India (P.) Ltd. v. State of Haryana - [2024] 165 taxmann.com 822 (Punjab & Haryana)
Where limitation would start from date of Original Authority's order and from that date, if sixty days period was over, then, after expiry of sixty days, dealer was entitled to get interest at maximum rate of 6%, therefore, order passed by writ court did not call for any interference, except with rate of interest of 9% allowed by writ court was modified into 6% - Commercial Tax Officer-GD-III v. Suzlon Energy Ltd. - [2024] 166 taxmann.com 291 (Madras)
Where refund claim under inverted duty structure was rejected based on circular struck down as ultra vires, rejection order set aside and matter remanded for fresh consideration - Eveready Spinning Mills (P.) Ltd. v. Assistant Commissioner - [2024] 164 taxmann.com 794 (Madras)
SECTION 61 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ASSESSMENT - SCRUTINY OF RETURNS
Where there was a discrepancy in GSTR 1 and GSTR 3B filed by assessee, and impugned order was passed without considering reply of assessee explaining such discrepancy, impugned order was to be set aside for being in violation of principles of natural justice and matter was to be remitted - Tvl.Elango Auto Electricals v. Deputy State Tax Officer - [2024] 165 taxmann.com 819 (Madras)
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 challenged GST demand order without exhausting available statutory appeal, writ petition declined, directing assessee to pursue alternative remedy - Gee Pee Steel v. State of Jharkhand - [2024] 164 taxmann.com 795 (Jharkhand)
Impugned GST demand order set aside for failing to address assessee’s contention about separate state registrations using common bank account; matter remanded for fresh consideration with opportunity of hearing - Malaysia Airlines Berhad v. Commissioner of Delhi Goods and Services Tax, Department of Trade and Taxes - [2024] 164 taxmann.com 796 (Delhi)
Non-receipt of show cause notice due to valid reasons may warrant setting aside demand order and remanding for fresh consideration after allowing response - Retrovis Fashion (P.) Ltd. v. Sales Tax Officer Class II/AVATO - [2024] 165 taxmann.com 320 (Delhi)
SECTION 81 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - DEMANDS AND RECOVERY - TRANSFER OF PROPERTY TO BE VOID IN CERTAIN CASES
Where property purchased from GST defaulters is attached, purchaser must file suit to prove bona fide purchase; attachment upheld but coercive action stayed pending timely suit filing - S. Geetha v. State Tax Officer, Madurai Rural (West) - [2024] 165 taxmann.com 321 (Madras)
SECTION 107 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - APPELLATE AUTHORITY - APPEALS TO
Where impugned order was discovered by assessee after expiry of limitation period for filing appeal against same, in view of fact that assessee was prevented from filing appeal in time, Appellate Authority was to be directed to decide appeal of assessee on merits sans limitation - Elanco India (P.) Ltd. v. Excise and Taxation Officer - [2024] 166 taxmann.com 818 (Punjab & Haryana)
Where assessee filed appeal before GST Appellate Authority with a delay of 5 days beyond condonable period, since there was only a marginal delay and assessee might have a case on merits, respondent authority was to be directed to dispose of appeal of assessee on merits without reference to limitation - V.K.K. Super Digital Cables v. Appellate Deputy Commissioner, GST Appeals - [2024] 165 taxmann.com 629 (Madras)
Appeal dismissed as time-barred without opportunity for condonation remanded for fresh consideration, including determination of filing date and provision of opportunity to seek condonation if delay is within condonable limit - Balaji Shipping v. Union of India - [2024] 164 taxmann.com 790 (Rajasthan)
Where assessee did not participate in proceedings before respondent GST Authority and contended to be unaware of impugned proceedings, impugned order confirming demand against assessee was to be set aside subject to assessee depositing 25 percent of disputed tax amount - Tvl. Thanya Cashew Nut Factory v. State Tax Officer - [2024] 165 taxmann.com 537 (Madras)
领英推荐
SECTION 169 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - NOTICE, SERVICE IN CERTAIN CASES
Where assessee's GST registration was cancelled, service of notice through e-mode without physical service violates principles of natural justice, requiring adjudication order to be set aside - Chandani Tent Traders v. State of U.P. - [2024] 164 taxmann.com 792 (Allahabad)
SECTION 171 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - ANTI - PROFITEERING MEASURE
Where GST rate of goods supplied namely "Eclat Serum 30gm" was reduced from 28% to 18% w.e.f. 15-11-2017 and respondent-assessee did not reduce selling price of products, therefore, benefit of reduction in GST rate was not passed on to buyers by way of commensurate reduction in prices, in terms of Section 171;DGAP was directed to provide necessary guidance to respondent-assessee for deposition of profiteered amount along with applicable interest as respondent-assessee was willing to pay profiteered amount - Director General of Anti Profiteering v. Baxium Health Science - [2024] 166 taxmann.com 332 (CCI)
COMPANY AND SEBI LAWS
Circular No. SEBI/HO/MRD/TPD/P/CIR/2024/119, Dated 12-09-2024
SEBI directs Exchanges, Depositories and Clearing Corporations to set up 'Near Sites (NS)' for near-zero data loss
Editorial Note: Based on consultations with MIIs and recommendations of the Technical Advisory Committee, SEBI has notified modifications in guidelines for the Business Continuity Plan (BCP) and Disaster Recovery (DR) of Market Infrastructure Institutions (MIIs). In addition to the Disaster Recovery Site (DRS), all Stock Exchanges, Clearing Corporations, and Depositories must also have a Near Site to ensure zero data loss.
SEBI issues FAQs on Registration and Initial offer of units by InvITs and issuance of units by REITs
Editorial Note: SEBI has issued Frequently Asked Questions (FAQs) on Registration and initial offer of units by InvITs and the issuance of units by REITs. The FAQs cover: (a) What is the procedure for obtaining registration as an InvIT or REIT from SEBI? (b) What is the procedure for making an application on the SI Portal? (c) What information/documents are required for registration? (d) What are the requirements for registration as an InvIT or REIT? and (e) Is there a need to appoint a compliance officer?
COMPETITION LAW
SECTION 26 OF THE COMPETITION ACT, 2002 - DUTIES, POWER AND FUNCTIONS OF COMMISSION - PROCEDURE FOR INQUIRY UNDER SECTION 19
CCI cannot proceed with inquiry after a settlement has been reached between parties to dispute and, thus, impugned order passed by CCI directing issuance of search warrants was to be set aside - JCB India Ltd. v. Competition Commission Of India - [2024] 166 taxmann.com 283 (Delhi)
FEMA BANKING AND INSURANCE LAWS
SECTION 4 OF THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999 - HOLDING OF FOREIGN EXCHANGE, ETC.
Where appellant was alleged to have contravened Sections 9(1)(b) and 9(1)(d) of FERA, 1973 and number of opportunities were given by Adjudicating Authority to appellant to present their defence during course of Adjudication proceedings, but appellant chose to seek repeated adjournments on one ground or other, thus, contraventions by appellant was established but since, appellant had pleaded for reduction in penalty imposed due to economic status, ends of justice would be met if penalty was reduced to from Rs.1.35 crore to Rs. 13.50 lakh - Mustaq Mohd. Patel v. Special Director Directorate of Enforcement - [2024] 166 taxmann.com 286 (SAFEMA - New Delhi)
ACCOUNTS AND AUDIT
Tax Audit Checklist on Clause 21(a) of Form 3CD under the Income Tax Act, 1961
Editorial Note: Clause 21(a) of Form 3CD requires tax auditors to report inadmissible expenses under Sections 37(1), 40(a), 40(b)/40(ba), 40A, 14A, and 36(1)(iii), which are debited to the P&L account. These include capital/personal expenditures, club fees, penalties, and costs related to offenses/Prohibited activities . The Tax auditor reports without opining on allowability and ensuring compliance through accurate auditee information. This story provides the checklist on Clause 21(a) of Form 3CD.
OPINIONS
World Tax News: Greece to introduce Digital Transaction Fee, phasing out Stamp Duty and more… - Taxmann, Editorial Team - [2024] 166 taxmann.com 344 (Article)
Hit with an unexpected Income Tax Assessment Order and Demand? Don't panic! Stay calm and take control to turn things around - CA Sandeep Biradar, Managing Partner at Kandela Biradar & Co LLP - [2024] 166 taxmann.com 312 (Article)
Legal Analysis on Special Valuation Branch (SVB) - Hunny Munjal, CA - [2024] 166 taxmann.com 336 (Article)
CSR Reporting Lapse: ROC penalizes Company and MD for ignoring mandated disclosure format - Prof R Balakrishnan, FCS – FCMA - [2024] 166 taxmann.com 334 (Article)
Green Banking: A Comprehensive Overview - Ketan Madia, FCS, MBA, Management Consultant & Certified Independent Director - [2024] 166 taxmann.com 335 (Article)
Cross-Border Share Swaps: Amendments to Regulatory Framework - Rajat Sethi, Partner, S&R Associates, Sumit Bansal, Partner, S&R Associates, Shivani Chhabra, Tax, S&R Associates - [2024] 166 taxmann.com 311 (Article)
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