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Home e-Newsletters Index Year 2022 April Day 15 - Friday

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TMI Tax Updates - e-Newsletter
April 15, 2022

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy Central Excise



Highlights / Catch Notes

    GST

  • Exemption from GST or not - renting out of immovable properties to the Social Welfare Department of Maharashtra Govt, for residential accommodation of girls from the backward class/Scheduled Tribes - it has been established that the activities related to residential accommodation of the girls or women, belonging to the Backward Class/Scheduled Tribes, will definitely come under the ambit of the responsibilities/functions entrusted to panchayats and municipalities - It will definitely be construed as an activity in relation to the function entrusted to a Panchayat under article 243G of the Constitution, or in relation to the function entrusted to a Municipality under article 243W of the Constitution, and thereby, are rightly eligible for exemption from GST - AAAR

  • Profiteering - supply of construction services related to the purchase of Flat - where the project was launched after introduction of GST, booking/price of the flat has been made/finalised by the Applicant No. 1 in February 2018 and during the whole period the Respondent continued to pay the GST at same rate, and also in absence of any other legally enforceable document; the emails exchange between Applicant No. 1 and Respondent mentioned above in paragraph 8 are not relevant material in these proceedings of anti-profiteering under CGST/SGST Act, 2017. - NAPA

  • Income Tax

  • Reopening of assessment u/s 147 - Notice after expiry of four years from the end of the relevant assessment year - since the details of computer software has been disclosed and classified under the category of intangible asset in the note to Balance Sheet, it can be reasonably concluded that the duty of the assessee to disclose fully and truly all primary relevant facts has been met and it cannot extend beyond that. - HC

  • Income accrued in India - Period of stay in India - This claim of the assessee has not been rebutted or denied by any of the lower authorities. Both the lower authorities have simply relied upon the provisions of section 5 and section 90 to state that since the assessee was a resident and ordinarily resident in India during the year, therefore, the provisions of DTAA would not apply in the case of the assessee. However, a perusal of section 90 read with Article 16 of the DTAA would show that section 90 did not bar in any manner the operation of the relevant provision of DTAA in respect of income earned by the assessee in other country, with whom the Central Government has entered into a DTAA. - AT

  • Validity of reopening of assessment u/s 147 - Unexplained cash deposit in the bank account - Apparently, the explanation given by the assessee has been rejected without assigning any reason. To our mind, if the assessee's explanation of having the opening cash in hand was to be disbelieved, there should have been cogent reasoning behind the same. - the lower authorities had no justifiable reason to make the addition - AT

  • Disallowance of expenditure as capital expenditure being 25% of royalty amount paid - it cannot be said that the Sweden Company had relinquished its command over the impugned technical know-how information in favour of the assessee in any manner. In the absence of any vested advantage to assessee or any indefeasible right, it is farfetched to hypothetically presume any component of capital expenditure implicit in the outgo towards royalty. - there is no scope of treating the royalty paid for the 'licensed information' as capital expenditure in the facts of the case - AT

  • TDS u/s 195 - non-deduction of TDS on payment of export commission to Foreign entity in Italy - whether there is a business connection or not, must be determined based on facts and circumstances of the particular case. In our opinion there is nothing on record which indicates that SPA is carrying out its business in India owing to which any portion of its income can be attributed to its Indian operations. - AT

  • Estimation of profit on the suppressed sale - Additional undisclosed income - the revenue has not brought any material on record suggesting that the assessee has made suppressed sales over and above the amount determined by the excise department. Thus in the absence of any information available on record, we hold that the AO has wrongly determined the gross profit by working out the suppressed sale more than the amount determined by the excise department. - AT

  • Revision u/s 263 - capital gains computation on the sale by the assessee of 23 acres of his land - the cost adopted by him was neither enquired into in assessment nor, consequently, substantiated - This is even as the stamp valuation itself is guided by the consideration of fmv of the relevant property, making the provision complete and legally firm. It is for this reason that we stated the argument advanced by and on assessee’s behalf to be flawed, both in law and on facts. To conclude, s.50C is clearly applicable, and which forms another reason for upholding the revision. - AT

  • Reopening of assessment u/s 147 - in absence of any allegation of failure on the part of the assessee to disclose fully and truly all material facts necessary for the completion of the assessment, no reassessment proceedings can be initiated after a period of four years from the end of the relevant assessment year when the original assessment has been completed u/s. 143(3) of the Act. - AT

  • Difference of turnover - less turnover shown in income tax return as compared to service tax return - CIT(A) held that merely the assessee accepted the addition in earlier year to save the cost of litigation that does not give liberty to the Assessing Officer to make huge addition without pointing out specific defects in the books of assessee or reply received from contractee party. - the order of Ld. CIT(A) is also based on factual analysis of Fo-26AS as well. Appeal of the Revenue stands dismissed. - AT

  • Reopening of assessment u/s 147 - It is also correct that after the assessment order was passed, the Commissioner of Income Tax had commenced revision proceedings under Section 263 of the Act on the very same issue of profit on sale of investment and the revision proceedings were dropped by an order dated 6th March, 2013. Therefore, the same issue cannot form a reason to believe for assessment officer to issue notice under Section 148. In our view, if only this fact has been brought to the notice of the Commissioner who accorded sanction under Section 151, certainly this sanction would not have been granted. - HC

  • Validity of reopening of assessment u/s 147 - We are satisfied that there is prima facie material available on record before the assessing officer for issuing a notice for reassessment. Thus, the notice under Section 148 passed by the National Faceless Assessment Centre rejecting the petitioner’s objections against issuance of the notice, do not suffer from any such illegality as to warrant interference by this Court in exercise of its Writ Jurisdiction. - HC

  • Customs

  • Levy of penalty on Customs Broker u/s 112 (a) of the Customs Act, 1962 - It was alleged that the appellant dealt with unauthorized person instead of dealing with the actual IEC holder thereby violated KYC norms - There is no law which prohibits the importer to sell the goods to another after importing the same. It is also brought from evidence that the appellant has nothing to do with excess weight or undeclared goods in the consignment. - The penalty imposed is totally unwarranted. - AT

  • Central Excise

  • Extended Period of limitation - Revenue Neutrality - The issue involved is also of pure interpretation of provisions of levy of duty including profit in assessable value in clearance of goods to sister unit for captive use. In such facts of case, it cannot be said that the Appellant had any mala fide intentions to evade payment of duty, which otherwise was available to Appellant as Cenvat Credit in sister unit and that Appellant have not suppressed assessable value with intention to evade payment of duty. - AT


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (4) TMI 630
  • 2022 (4) TMI 629
  • Income Tax

  • 2022 (4) TMI 640
  • 2022 (4) TMI 639
  • 2022 (4) TMI 638
  • 2022 (4) TMI 637
  • 2022 (4) TMI 636
  • 2022 (4) TMI 635
  • 2022 (4) TMI 634
  • 2022 (4) TMI 633
  • 2022 (4) TMI 632
  • 2022 (4) TMI 628
  • 2022 (4) TMI 627
  • 2022 (4) TMI 626
  • 2022 (4) TMI 625
  • 2022 (4) TMI 624
  • 2022 (4) TMI 623
  • 2022 (4) TMI 622
  • 2022 (4) TMI 621
  • 2022 (4) TMI 620
  • 2022 (4) TMI 619
  • 2022 (4) TMI 618
  • 2022 (4) TMI 617
  • 2022 (4) TMI 616
  • 2022 (4) TMI 615
  • 2022 (4) TMI 614
  • 2022 (4) TMI 613
  • 2022 (4) TMI 612
  • 2022 (4) TMI 611
  • 2022 (4) TMI 610
  • 2022 (4) TMI 609
  • 2022 (4) TMI 608
  • 2022 (4) TMI 607
  • 2022 (4) TMI 606
  • 2022 (4) TMI 602
  • Customs

  • 2022 (4) TMI 605
  • Corporate Laws

  • 2022 (4) TMI 631
  • Insolvency & Bankruptcy

  • 2022 (4) TMI 604
  • Central Excise

  • 2022 (4) TMI 603
 

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