Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Tax Updates - TMI e-Newsletters

Home e-Newsletters Index Year 2023 April Day 25 - Tuesday

TMI e-Newsletters FAQ
You need to Subscribe a package.

Newsletter: Where Service Meets Reader Approval.

TMI Tax Updates - e-Newsletter
April 25, 2023

Case Laws in this Newsletter:

GST Income Tax Customs Insolvency & Bankruptcy Service Tax Central Excise CST, VAT & Sales Tax Indian Laws



Highlights / Catch Notes

    GST

  • Classification of goods - rate of GST - wooden ice cream sticks and wooden ice cream spoons - The impugned products being the wooden spoon and wooden stick qualify to be covered under spoons and crumb-scoops respectively. Thus the more specific classification of the impugned products would be 4419 90 90 as tableware made up of wood other than bamboo. - Liable to GST @12% - AAR

  • Valuation - inclusion of value of material supplied Free of Cost (FOC) by the buyer - Combine readings of provisions of section 15 - from such type of adjustments applicant will receive the consideration in barter. I.e. one consideration in the shape of price as per agreement and second in the shape of free issue of essential inputs like cement and steels. - For part of transaction value for GST - AAR

  • Classification of supply - supply of goods or supply of services or both - manufacture and supply Precast Manholes and Rises to various government and non government entities - Cannot be treated as Job work - Liable to GST - AAR

  • Supply or not - transfer of business - going concern or not - Business may be covered under the umbrella of the definition of Service, in accordance to Section 2(102) CGST Act and the activity of transfer of business is in the nature of supply. - the business arrangement between AAI and SPV vide Concession Agreement dated 16.01.2021 is squarely covered under transfer of going concern. - the transfer of business by Airports Authority of India to M/s AJAIL (SPV) is transfer of a 'going concern' and the same is not covered in clause 4 of schedule II of CGST Act. - The subject Supply is covered at Entry No. 2 of Notification 12/2017-CT(R) - Exempted from GST - AAR

  • Income Tax

  • Reopening of assessment u/s 147 - Maintainability / entertainability of writ petition - The exceptions carved out are absent. Contentions raised by the first respondent that petitioner did not disclose fully and truly all material facts necessary for assessment and as a result, there is escapement of income from assessment for the assessment year 2011-2012, cannot simply be brushed aside. In such a case, it would be just and proper if the procedure prescribed under the statute is followed, in which event, petitioner would have all the opportunities and remedies to present its case. - HC

  • Reopening of assessment u/s 147 - An inadvertent error committed by the Petitioner in reflecting that the return of income had been filed under the category ‘u/s 119(2)(b)’ instead of selecting the option ‘u/s 148’ could have been treated to be a return validly filed by invoking the provisions of Section 292B of the Act especially when the Petitioner claims that the mistake was brought to the notice of the concerned A.O. at the appropriate stage. - Matter restored back to AO - HC

  • Revised return of income in terms of the scheme of amalgamation approved by the NCLT -Period of limitation - It is because of circumstances beyond the control of the petitioner that the revised return could not be filed before the due date. However, under Section 170 of the Act, Income Tax Department is obligated to assess the total income of the assessee of the previous assessment year post-amalgamation. - HC

  • Revision u/s 263 - assessee has made purchases in cash - when the learned assessing officer was not required to enquire on those issues such as purchases in cash more than specified sum, the learned CIT was not correct in holding that the learned assessing officer has not made due inquiries on that ground as the verification of the purchases exceeding specified limit in cash was not an issue before the assessing officer. Naturally, he should not have made any enquiry on that aspect. - ITAT rightly set aside the order - HC

  • Approval u/s 80G - CIT(Exemption) has given finding regarding two sets of accounts related to donation being maintained by the assessee. In the absence of any rebuttal by the assessee society, we do not see any reason to interfere in the findings of authorities below - Order of CIT(A) rejecting the approval u/s 80G sustained - AT

  • Penalty u/s 271(1)(c) - Necessity of recording satisfaction - AO Statement that the assessee has consciously made the concealment by furnishing inaccurate particulars of his income is very vague and mixing up both the default of concealment as well as furnishing inaccurate particulars of income. - AT

  • Accrual of interest income in the hands of dissolved partnership firm - section 189 keeps the firm alive for the purposes of assessment despite its dissolution. It ensures that the firm which is dissolved does not escape the liability to tax after its dissolution - No substance in the argument of the Ld. AR that the entire amount of interest received by the firm during the previous year cannot be assessed in the hands of the assessee firm - AT

  • TDS u/s 195 - Once the payment does not fall either under Article 12 or Article 14, in absence of any other provision in the treaty specifically dealing with such payment, it has to be treated as business profit at the hands of the recipient. Thus in absence of a PE or fixed base, the payment is not taxable at the hands of the recipient. That being the case, there was no obligation on the assessee to withhold tax at source on such payment. - AT

  • Unexplained money u/s. 69A - “deemed income” - since the amount was not recorded in the books, it did not form the part of the Revenue Receipts of the Assessee. The amount was enjoyed by the Assessee on receipt basis and never recorded in the regular books of accounts, therefore, the amount has to be taxed on receipt basis and not on the basis of POC method.- AT

  • Deduction u/s 80-IA(4) denied - delay of one minute in filing of the return was due to technical snags in the website of department, and therefore return could not be uploaded. There is only a negligible delay (one minute only) which is due to bonafide reasons as has explained above, therefore, delay in Filling return of income is hereby condoned. - AT

  • Claim of foreign tax credit (FTC) u/s 90 - Rule 128 of the Rules cannot override the provisions of DTAA and impose an additional condition that credit will not be given if Form 67 is not filed on or before the due date of filing the return of income as prescribed under section 139(1) Form 67 for claiming FTC - AT

  • Customs

  • Recovery of duty drawback - non receipt of foreign exchange - the statement of facts, as stated in the Revision Application filed by the petitioner, does not set out the factual details for claiming the benefit of Rule 16A(5) of the Drawback Rules. It is not disputed that the petitioner has not received compensation from the ECGC. Thus, Rule 16A(5) of the Drawback Rules is not applicable. - HC

  • 100% EOU - diversion of imported/indigenous goods procured duty free - The learned adjudicating authority has not examined the fact whether the respondent have achieved a positive NFEE and whether the realization for deemed export was in convertible currency in EEFC; we also find that the learned Commissioner has not bothered to verify whether the respondent had any permission granted by the competent authority i.e. Development Commissioner to sell the goods manufactured by the EOU in domestic market - adjudicating authority was not correct in extending the benefit of Notification No. 2/95-CE dated 04.01.1995 to the respondents without verifying the relevant facts. - AT

  • Refund of Customs duties paid at the time of assessment - goods short shipped - Since the goods under question were not exported, there is no relevance in bringing into consideration the contractual obligations towards realization of export proceeds, as there are no export proceeds realized for the said 7833 MTs of goods not exported. - AT

  • Revocation of Customs Broker License - levy of penalty - allowing others to use its credentials - the appellant enclosed some irrelevant emails at Annexure A18 as the correspondence between it and the exporter to support its claim that it had filed the Shipping Bill. The emails which were enclosed do not mention the Shipping Bill number and they were not from or to the email ID of the appellant or the exporter - the revocation of the licence, forfeiture of security deposit and imposition of penalty on the appellant are just and fair and proportionate to the serious nature of the violations by the appellant. - AT

  • Indian Laws

  • Initiation of recovery proceedings - ESI dues - By virtue of Section 19 (2) of SICA, the consent can be inferred. Therefore, it is not open to the ESI Corporation to revive the liability of a sick company by operation of statutory discharge. - HC

  • IBC

  • Liquidation proceedings - settlement dues of Corporate Debtor - the Appellant having successfully met the dues of three statutory creditors, there is no reason to deny an opportunity to the Appellant to settle the dues of the fourth statutory creditor. It has also weighed that if the dues of GST Department are also cleared by the Appellant, no useful purpose will be served by pressing ahead with liquidation. - AT

  • Service Tax

  • Maintainability of fresh proceedings - demand of service tax post GST era - the petitioner has an obligation to correctly pay the service tax under Chapter-V of the Finance Act and the proceedings initiated by the impugned SCN are merely to ensure discharge of the said obligation. - WP dismsised - HC

  • CENVAT Credit - business support services - taxable service provided or not - invoices were issued without specifying the actual nature of services provided by the dealers - unless and until the assessment made at the dealer’s end is revised or altered, the Cenvat credit availed on the basis of invoices by the recipient’s unit cannot denied/whittled down. - AT

  • Levy of Service Tax - Joint venture - expenditure incurred by the appellant, in respect of its employees and assets which were deployed for undertaking joint operations at the blocks, where it was acting as the Operator - Infact, the appellant had as a co-venturer, in furtherance of the venture as its capital contribution to the venture, deployed manpower and assets for its own benefit and in the furtherance of the venture. This cannot, by any stretch of imagination, be regarded as a service being provided, so as to attract levy of service tax. - AT

  • Levy of service tax with interest and penalty - liquidated damages - While the above Orders have been passed by the Tribunal in 2022, subsequently, CBIC has issued Circular No. 214/2023-Service Tax dt. 28.02.2023. In this Circular, the issue of leviability of Service Tax on Liquidated Damages has been considered in elaborate details - Demand in respect of Liquidated Damages set aside - AT

  • VAT

  • Input Tax Credit (denied retrospectively) - denial on account of cancellation of the VAT registration of the dealers (who have effected sale of the goods to these petitioners/appellants) - Therefore a dealer claiming ITC has to prove the actual transaction of sale by furnishing the name and address of the selling dealer, details of the vehicle which was/were used for delivery of the goods, tax invoices and payment particulars etc. The above information would be in addition to tax invoices, particulars of payment etc. - HC

  • Legislative competence - power to amend repealed Gujarat VAT act with retrospective effect - denial of interest on delayed refund - Impermissible Judicial Overiride - Infringement of doctrine of separation of powers - The impugned Amendment Act is an impermissible legislative override. Therefore, based upon the impugned Amendment Act, the respondents cannot decline to implement this Court's decisions in Writ Petition No. 424/2018 and connected matters. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2023 (4) TMI 966
  • 2023 (4) TMI 965
  • 2023 (4) TMI 963
  • 2023 (4) TMI 962
  • 2023 (4) TMI 961
  • 2023 (4) TMI 960
  • 2023 (4) TMI 959
  • Income Tax

  • 2023 (4) TMI 958
  • 2023 (4) TMI 957
  • 2023 (4) TMI 956
  • 2023 (4) TMI 955
  • 2023 (4) TMI 954
  • 2023 (4) TMI 953
  • 2023 (4) TMI 952
  • 2023 (4) TMI 951
  • 2023 (4) TMI 950
  • 2023 (4) TMI 949
  • 2023 (4) TMI 948
  • 2023 (4) TMI 947
  • 2023 (4) TMI 946
  • 2023 (4) TMI 945
  • 2023 (4) TMI 944
  • 2023 (4) TMI 943
  • 2023 (4) TMI 942
  • 2023 (4) TMI 941
  • 2023 (4) TMI 940
  • 2023 (4) TMI 939
  • 2023 (4) TMI 938
  • 2023 (4) TMI 937
  • 2023 (4) TMI 936
  • 2023 (4) TMI 935
  • 2023 (4) TMI 934
  • 2023 (4) TMI 933
  • Customs

  • 2023 (4) TMI 932
  • 2023 (4) TMI 931
  • 2023 (4) TMI 930
  • 2023 (4) TMI 929
  • 2023 (4) TMI 928
  • 2023 (4) TMI 927
  • Insolvency & Bankruptcy

  • 2023 (4) TMI 926
  • 2023 (4) TMI 925
  • Service Tax

  • 2023 (4) TMI 964
  • 2023 (4) TMI 924
  • 2023 (4) TMI 923
  • 2023 (4) TMI 922
  • 2023 (4) TMI 921
  • 2023 (4) TMI 920
  • 2023 (4) TMI 919
  • Central Excise

  • 2023 (4) TMI 918
  • 2023 (4) TMI 917
  • 2023 (4) TMI 916
  • 2023 (4) TMI 915
  • 2023 (4) TMI 914
  • CST, VAT & Sales Tax

  • 2023 (4) TMI 913
  • 2023 (4) TMI 912
  • 2023 (4) TMI 911
  • 2023 (4) TMI 910
  • Indian Laws

  • 2023 (4) TMI 909
  • 2023 (4) TMI 908
 

Quick Updates:Latest Updates