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Home e-Newsletters Index Year 2023 April Day 14 - Friday

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TMI Tax Updates - e-Newsletter
April 14, 2023

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy PMLA Service Tax Central Excise Indian Laws



Highlights / Catch Notes

    GST

  • Refund - Period of limitation - relevant date - date of removal of deficiencies in the application for return - If the application filed is not deficient in material particulars, it cannot be treated as non est. If it is accompanied by the “documentary evidences” as mentioned in Rule 89(2) of the Rules, it cannot be ignored for the purposes of limitation. The limitation would necessarily stop on filing the said application. - HC

  • Transitional Credit - Revision of return on MVAT for June 2017 - the order should be self-speaking. It cannot be that the Authority passes an order without reasons, and then arguments are advanced in a writ jurisdiction at the first instance. Furthermore, the Petitioner before us is not the one who is delaying the payment of taxes. Remand is also necessary to highlight the need to give a reasoned order. The learned Counsel for the parties jointly state that the exercise of power under section 25 of the MVAT Act of 2002 in respect of the order in question would be within the period of limitation. - Matter restored back - HC

  • Income Tax

  • Undisclosed investment in stock and property - when the assessee himself had disclosed higher stock, question of taking a view that assessee had suppressed sales for making investment towards purchase of goods which is reflected in the higher stock figures does not appear to be reasonable. - HC

  • Reversal of TDS by the employer on salary foregone by the employee (after termination) as per the settlement agreement - the foregone salary may after its accrual be chargeable to tax in the hands of appellant, but the appellant cannot claim that his employer should have deducted tax on the basis of accrual. - AT

  • Levying penalty u/s 272A(1) - non-compliance of the notice - Nonappearance of the assessee in response to the initial notice under section 142(1) of the Act was not deliberate. The year 2019 being the initial year of shift towards digital and electronic mode, the mistake appears to be bonafide. The assessee has been able to show reasonable cause for the failure to comply with statutory notice u/s. 142(1). - No penalty - AT

  • Deduction u/s. 80P(2)(d) - interest income - the income by way of interest earned by the assessee co-operative society during the Assessment Years 2007-2008 to 2011-12 on the investments made in the co-operative bank are not eligible for deductions under Section 80P(2)(d) - AT

  • TDS u/s 194A - the impugned payment is nothing but compensation/damages paid by the assessee to its allottees which cannot be tagged as interest u/s. 2(28A) - TDS provision of section 194A of the Act is not applicable towards such payment. - AT

  • Addition u/s 43CA - stamp duty valuation - when the valuation towards actual sale consideration and the value adopted for stamp duty in the present case varies between 5% to 7%, i.e., within the tolerance limit of upto 10%, therefore, pursuant to the amendment made available on the statute vide Finance Act, 2019 that is applicable w.e.f. A.Y.2014- 15, no adverse inferences could have been drawn u/s.43CA - AT

  • Capital gain - deduction of expenditure incurred in relation to the transfer of the property - the other works carried out by the solicitor firm for which bill has been raised by them on the assessee , cannot be construed as expenditure incurred wholly and exclusively in relation to the transfer of the subject mentioned property. - AT

  • Penalty u/s 217B - not getting the books audited - once the penalty is levied for non-maintenance of book of accounts (u/s 44AA), there cannot be further default for not getting the same audited as required u/s 44AB of the Act and therefore, the penalty levied u/s 271B is not justified and thus vacated - AT

  • Penalty u/s 271B - violation of provisions of section 44AB - When assessee did not maintain regular books of accounts, then the question of getting the books of account audited does not arise at all - since there is a violation of provisions of section 44AA of the Act and the said violation cannot be extended to section 44AB of the Act. - AT

  • Customs

  • Violation of principles of principles of natural justice - The department cannot confirm the demand on the basis of assumption and presumptions. The allegations raised in the SCN have to be established by evidence. The noticee has a right to get the copies of documents. Department has to record reasons for denying the request for cross examination. - AT

  • Levy of penalty u/s 114AA of the Customs Act, 1962 - fraudulent obtaining DEPB certificates - the appellant had filed the Shipping Bills in good faith based on the documents provided to it and in such circumstances, set aside the penalty. In this case, the DEPB certificates obtained based on forged bank realization certificates were sold by the appellant to the importer and thereby caused the importer to make incorrect declarations in the Bills of Entry. - Penalty confirmed - AT

  • Corporate Law

  • Oppression and Mismanagement - This Appellate Tribunal further finds it surprising that although the Appellants is claiming to hold 94.8% of Share Capital of the 1st Respondent Company, yet they did not bother to take over the management and control of the 1st Respondent Company. It is natural and established commercial prudence that person holding the majority of share will have dominating position in composition of Board of Directors of the Company - AT

  • Indian Laws

  • GST Council Meetings and Decisions

  • Foreign Trade Policy, 2023 and procedures

  • Finance Act, 2023 + Union Budget 2023-24

  • Rejection of application for condonation of delay in preferring the application u/s 34 of the Arbitration and Conciliation Act - No application for setting aside the arbitral award was made before elapse of three months from the receipt thereof. Three months from the date of receipt of the award expired on 26.11.2003. The District Court had Christmas vacation for the period from 25.12.2003 to 01.01.2004. On reopening of the Court i.e. on 02.01.2004, the appellants made application for setting aside the award under Section 34 of the Arbitration Act. - benefit of exclusion of period during which the Court is closed shall be available when the application for setting aside award is filed within “prescribed period of limitation” and shall not be available in respect of period extendable by Court in exercise of its discretion. - Delay not condoned - SC

  • IBC

  • Appointment of a debenture trustee - financial creditors or not - a conjoint reading of the Debenture Trust Deed and Deed of Guarantee clearly establishes that the amount claimed in demand certificate is to be paid directly to the Debenture Holders by Respondent No. 3, who is the Corporate Debtor within the provisions of the IBC. - The Adjudicating Authority has not committed any error in admitting the section 7 application filed by the respondents - AT

  • CIRP - Period of limitation - in terms of the Section 128 of the Indian Contract Act, 1872 the liability of the Respondent was always co-extensive with debt of Principal Borrower and therefore the acknowledgment of debt by various OTS proposals, were also deemed acknowledgements by the Respondent herein of the liability as guarantors on behalf of the Principal Borrowers. - AT

  • Service Tax

  • Lavy of service tax - Hair Transplantation - 'Cosmetic Surgery and Plastic Surgery' service - exception of surgery undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma‟ - The Hair Transplant is a cosmetic surgery and liable to the service tax levy - AT

  • Reverse Charge - Renting services provided by the Directors in the capacity of Individual - Land owners are providing service of renting of immovable property as Directors of the appellant, whereas they are providing the said service in their individual capacity as owners of the premises and not as Directors of the appellant - AT

  • Reversal of CENVAT Credit - electrical energy is not an excisable goods nor it is exempted goods as defined in rule 2(d) of the Credit Rules. Thus, as electricity is not excisable goods under section 2(d) of the Central Excise Act, 1944, rule 6 of the Credit Rules would not be applicable. - AT

  • Extended Period of Limitation - wilful suppression of facts with an intent to evade payment of service tax, or not - The appellant is a government company and, therefore, there is a rebuttable presumption regarding non-existence of any of the ingredients mentioned in the proviso to section 73(1) of the Finance Act. The show cause notice does not rebut the presumption - In such circumstances, the extended period of limitation could not have been invoked. - AT

  • CENVAT Credit - input services - the appellant is not entitled to avail Cenvat credit on the services received from Chhtrapati Engineering and Sai Engineering Works because the said the service is excluded from the definition of input service as provided under Rule 2 (l) of Cenvat Credit Rules, 2004 - AT

  • Central Excise

  • CENVAT Credit - Cement, MS angles, Channels, Beams, Bars, etc. used for foundation of plant and machinery - it clearly appears that all the goods were used for capital goods in the factory of the appellant. On the basis of the Chartered Engineer’s Certificate, there are no reason why the CENVAT credit should not be allowed. - AT


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Case Laws:

  • GST

  • 2023 (4) TMI 497
  • 2023 (4) TMI 496
  • 2023 (4) TMI 495
  • 2023 (4) TMI 494
  • 2023 (4) TMI 493
  • 2023 (4) TMI 492
  • 2023 (4) TMI 491
  • Income Tax

  • 2023 (4) TMI 490
  • 2023 (4) TMI 489
  • 2023 (4) TMI 488
  • 2023 (4) TMI 487
  • 2023 (4) TMI 486
  • 2023 (4) TMI 485
  • 2023 (4) TMI 484
  • 2023 (4) TMI 483
  • 2023 (4) TMI 482
  • 2023 (4) TMI 481
  • 2023 (4) TMI 480
  • 2023 (4) TMI 475
  • 2023 (4) TMI 474
  • 2023 (4) TMI 473
  • 2023 (4) TMI 472
  • 2023 (4) TMI 471
  • 2023 (4) TMI 470
  • 2023 (4) TMI 469
  • 2023 (4) TMI 468
  • 2023 (4) TMI 467
  • 2023 (4) TMI 466
  • 2023 (4) TMI 465
  • 2023 (4) TMI 464
  • 2023 (4) TMI 463
  • 2023 (4) TMI 462
  • 2023 (4) TMI 461
  • 2023 (4) TMI 460
  • 2023 (4) TMI 459
  • 2023 (4) TMI 458
  • 2023 (4) TMI 457
  • 2023 (4) TMI 456
  • 2023 (4) TMI 455
  • Customs

  • 2023 (4) TMI 454
  • 2023 (4) TMI 453
  • 2023 (4) TMI 452
  • Corporate Laws

  • 2023 (4) TMI 451
  • 2023 (4) TMI 450
  • Insolvency & Bankruptcy

  • 2023 (4) TMI 449
  • 2023 (4) TMI 448
  • 2023 (4) TMI 447
  • 2023 (4) TMI 446
  • 2023 (4) TMI 445
  • PMLA

  • 2023 (4) TMI 479
  • 2023 (4) TMI 478
  • 2023 (4) TMI 444
  • Service Tax

  • 2023 (4) TMI 443
  • 2023 (4) TMI 442
  • 2023 (4) TMI 441
  • 2023 (4) TMI 440
  • 2023 (4) TMI 439
  • 2023 (4) TMI 438
  • 2023 (4) TMI 437
  • 2023 (4) TMI 436
  • 2023 (4) TMI 435
  • 2023 (4) TMI 434
  • 2023 (4) TMI 433
  • 2023 (4) TMI 432
  • 2023 (4) TMI 431
  • Central Excise

  • 2023 (4) TMI 430
  • 2023 (4) TMI 429
  • 2023 (4) TMI 428
  • Indian Laws

  • 2023 (4) TMI 477
  • 2023 (4) TMI 476
 

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