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 29 - Saturday

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

Newsletter: Where Service Meets Reader Approval.

TMI Tax Updates - e-Newsletter
April 29, 2023

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Seeking refund of tax deposit during search proceedings - The very fact that in two years’ time, no notice has been issued, the deposit of tax during search cannot be retained by the department till the adjudication of notice, which can take more time in future - A direction is being given to the respondents to return the amount of Rs.2.54 crores to the petitioner(s) along with simple interest at the rate of 6% per annum from the date of deposit till the payment is made. - HC

  • Interest on delayed refund - Relevant Date - the reasons based on which a part of the refund was sought to be denied, was that the value of exports for the given month was less than the purchases made in that month - The petitioner is right in its contention that interest should trigger in accordance with the main part of Section 56 of the CGST Act, i.e., from 18.04.2018, and that interest should run, both on CGST and DGST, up until the date when the amount was remitted to the petitioner. The dates when the remittance was made have been captured. - HC

  • Income Tax

  • Settlement of case - full and true disclosure - failure to disclose certain income - taking into consideration the spirit and mandate of the provisions contained in Chapter XIX and merely for the reason that further amounts had to be offered by the assessee, the Settlement Commission cannot reject the application for settlement. This is not to say that the assessee is not required to make full and true disclosure. - HC

  • Penalty u/s 271(1)(c) - depreciation on account of the increase in the cost of machinery due to foreign currency fluctuation losses - At worst, in the instant case, the petitioner’s action could be construed as one where it sought to make a claim which was unsustainable in law. That by itself, in the given circumstance, would not call for imposition of penalty, as once the error was pointed out by the AO, the respondent/assessee made a course correction before the assessment order was passed. - No penalty - HC

  • Rectification of mistake u/s 154 - amount relating to contingent liability - there is a figure of “0” in the “Amount in the Income Tax Returns” instead of the actual figure. In our view, this is an exfacie error which deserves to be rectified - CPC directed to consider the application of the petitioner for rectification - HC

  • Rectification of mistake - On the face of inaccuracy in adopting the correct figure of remuneration from audited financial statement, an apparent mistake has been committed. In the absence of opportunity to the assessee contemplated in proviso to Section 143(1)(a) the difficulty has been compounded. The mistake could have been avoided while processing the return itself. - Matter restored back - AT

  • TDS u/s 194H - incentive paid to various parties - Non deduction of tds - the retailers held the goods on their own behalf and not on behalf of the assessee and therefore they did not act as an agents of the assessee as such no TDS is deductible u/s 194H as it is not applicable in the case of assessee. - AT

  • Correct head of income - Cash received as rental income - assessee could not prove the existence of the persons against whom he has shown the cash receipt as rental income as those persons were not in existence and were not traceable - the learned CIT (A) while upholding the addition has also given a finding that since the assessee has already offered the rental income under the head income from house property as per remand report, the addition should be limited to the disallowance u/s 24(b) - Order of CIT(A) sustained - AT

  • Income deemed to accrue or arise in India - receipts from services relating to Progressive Cavity Pump system (PCP) and rental of tools/equipments to Cairn India’ and ONGC - the scope and ambit of section 44BB of the Act is wide enough to include the receipts of the assessee from Cairn India and ONGC - AT

  • Conversion of limited scrutiny into complete scrutiny - As per the CBDT instructions, only upon conversion of such case to complete scrutiny after following the procedure laid down as stated , the AO may examine the issues other than the issues involved in the limited scrutiny but in the present case the procedures were not followed and assessment was conducted in violation of this Instruction. - AT

  • Disallowance of expenses on ad-hoc basis - vehicle running maintenance expenses - when the assessee has successfully demonstrated that the expense has been incurred wholly and exclusively for the purpose of business of assessee and the AO has not point out any specific defect or deficiency therein then the disallowance cannot be made on ad-hoc basis without any specific allegation merely on the basis of general remarks and observations - AT

  • Validity of TP order - Period of limitation - Computation period of 60 days given by the taxpayer cannot be faulted with on any ground because from 26.02.2022, the date of passing order of the AO, 60 days was to be computed by excluding the date of order i.e. 31.01.2021. So while excluding the date of passing assessment order i.e. 26.02.2022, the order was required to be passed by the Ld. TPO by 29.01.2021 whereas the impugned order has been passed on 31.01.2021 which is barred by limitation. - AT

  • Customs

  • Withdrawal of benefit of exemption granted to the petitioners/hospitals from payment of customs duty for the imported medical equipments, apparatus etc. - the writ petitioners hospitals have not treated 40% of the outdoor patients and its indoor patients free of cost - The respondents have rightly and legitimately cancelled the Customs Duty Exemption Certificate (CDEC) granted in favour of the petitioners - HC

  • Bar on application before the settlement commission - scope of the term 'any other matter' u/s 127L - The phrase 'any other matter', in my considered view, would bar an assessee from approaching the Settlement Commission ever, in the three situations set out under clauses (i) (ii) & (iii) in Section 127L(1). This is by way of a caution/deterent, to ensure that an assessee who approaches the Settlement Commission comes with a full and true disclosure placing all cards on the table in the spirit in which that Chapter must be seen to apply. - HC

  • Levy of penalty u/s 41 - Delay in filing of export manifest (EGM) - The Contention of the Revenue is that the date of filing of EGM is not initial filing of EGM but the filing of Supplementary EGM hence, there is delay is in clear contradiction of the statutory provision of Section 41 (1) read with sub section 3 of customs act, 1962. This view taken by the lower authority is absolutely illegal, hence not acceptable - AT

  • Grant of interest on the amount of bank guarantee, which was wrongly encashed by the Customs Department - the amount encashed by way of bank guarantee remained with the Revenue as deposit and accordingly with the meaning of Section 129 EE, the appellant is entitled to interest on refund from the date of deposit till the date of refund @6% p.a. - AT

  • FEMA

  • Proceedings initiated u/s 6(3) of the FEMA - The provision has been omitted - saving clause - When the proceedings were initiated against the Petitioners, Section 6(3) of the Act, 1999 was still in force. Therefore, by virtue of Section 6 of the Act, 1897 the proceedings against the Petitioners are saved and cannot be disturbed merely because Section 6(3) of the Act, 1999 was subsequently omitted. - HC

  • Corporate Law

  • Seeking modification in the scheme of Amalgamation - this application came to be filed only to cheat debenture holders by gaining more time. Therefore, for wasting the Court time and making an attempt to defraud the creditors and the debenture holders, this Court is inclined to dismiss this application with the cost of a sum of Rs.2,00,000/- to the Official Liquidator for meeting the expenses - HC

  • Validity of allotment of shares of R-1 Company in favor of R-3 and R-4 - The Articles of Association are binding on the company and its members and also on Board of Directors and if laid down procedure and principles have not been followed in allotment of shares to R-3 and R-4, the allotment cannot be held as valid. - AT

  • Oppression and Mismanagement - Order for the Exercise of Valuation - the Order, assailed by the Appellant, does not in any manner affect his Rights and Liabilities, and in any event, no prejudice is caused to him, by the issuance of direction, by the Tribunal, to the Valuer, to submit a Valuation Report, to be considered after submission of a Report, by the Valuer, of course by the NCLT, Hyderabad, Bench - I. - AT

  • IBC

  • Overriding effect of forest law over IBC - Jurisdiction of NCLT over state government - They are in the realm of public law. The Tribunal had no jurisdiction to direct functioning/continuing of the windmill without the forest clearances, merely because the State had granted such permission at an earlier point in time. - HC

  • Action against Resolution Professional - Section 233 gives protection to a resolution professional from criminal prosecution for acts in good faith, and not where he has been apprehended red-handed with the bribe amount. Insolvency and bankruptcy code is self-contained code but only with respect to the matter provided therein. It does not cover the matters like the present, where a Resolution Professional takes bribes in order to favour a party for which P.C. Act is squarely applicable. - HC

  • Initiation of CIRP - date of default - period of limitation - the Bank could not produce any evidence to prove that there has been acknowledgment in writing and signed by the Appellant for the purpose of extension of period of limitation except for the reply to the notice issued under Section 13(2) of the SARFAESI Act, 2002 in which the Appellant did not make any unambiguous and unequivocal acknowledgement which could extend the period of limitation. - AT

  • Preferential Transactions - The expression “financial affairs of the Corporate Debtor” cannot be given an extended meaning as contended by Learned Counsel for the Appellants that all financial transactions done by the Corporate Debtor is covered within expression “financial affairs’ hence the loan taken by the corporate debtor from different related and non-related parties is part of the financial affairs cannot be accepted - AT

  • Service Tax

  • Valuation of service - Air Travel Agent Service - when the basic fare is so specifically indicated, the authorities cannot add or delete anything to the same to say that the basic fare should also include those other things- AT

  • Central Excise

  • CENVAT Credit - inputs or capital goods - Electrode Carbon Paste(ECS) - electrode carbon paste used and consumed in the process of manufacture of ferro alloys is an input eligible for cenvat credit under Rule 2 (k) of the Cenvat Credit Rules, 2004 - AT

  • Reversal of CENVAT Credit on damaged Capital Goods - As much as the appellant have cleared the capital goods as waste and scrap coupled with the fact of insurance claim it is absolutely beyond doubt that the capital goods became waste and scrap as the same is not usable for the intended purposes - the appellant have rightly paid the amount equal to the duty leviable on transaction value of the capital goods. - AT

  • Benefit of Exemption - Manufacture of Tubular Plate Lead Acid Batteries for use in solar photovoltaic modules/ system - The Experts Opinions submitted by the Appellant clearly indicate that they are specially made Batteries to store electricity generated by solar cells and an integral part of the solar Photovoltaic Module. They have an independent function on its own and hence can be called as a ‘Device’ on its own for the purpose of the Notification 6/2006 dated 01/03/2006 and hence as per the Larger Bench decision cited the exemption can be made available to the Batteries. - AT

  • VAT

  • Levy of penalty - Detention of goods - Merely non-reporting about the consignment at the concerned ICC and not making declaration in the prescribed form did not lead to the conclusion that there was violation of Section 51 (4) of PVAT Act with a view to make an attempt to avoid the tax. It is not the case of the respondent that the invoice or GR were not genuine - No penalty - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2023 (4) TMI 1184
  • 2023 (4) TMI 1183
  • 2023 (4) TMI 1182
  • Income Tax

  • 2023 (4) TMI 1181
  • 2023 (4) TMI 1180
  • 2023 (4) TMI 1179
  • 2023 (4) TMI 1178
  • 2023 (4) TMI 1177
  • 2023 (4) TMI 1176
  • 2023 (4) TMI 1175
  • 2023 (4) TMI 1174
  • 2023 (4) TMI 1173
  • 2023 (4) TMI 1172
  • 2023 (4) TMI 1171
  • 2023 (4) TMI 1170
  • 2023 (4) TMI 1169
  • 2023 (4) TMI 1168
  • 2023 (4) TMI 1167
  • 2023 (4) TMI 1166
  • 2023 (4) TMI 1165
  • 2023 (4) TMI 1164
  • 2023 (4) TMI 1163
  • 2023 (4) TMI 1162
  • 2023 (4) TMI 1161
  • 2023 (4) TMI 1160
  • 2023 (4) TMI 1159
  • 2023 (4) TMI 1158
  • 2023 (4) TMI 1157
  • 2023 (4) TMI 1156
  • 2023 (4) TMI 1155
  • 2023 (4) TMI 1154
  • 2023 (4) TMI 1153
  • 2023 (4) TMI 1152
  • Customs

  • 2023 (4) TMI 1151
  • 2023 (4) TMI 1150
  • 2023 (4) TMI 1149
  • 2023 (4) TMI 1146
  • 2023 (4) TMI 1145
  • Corporate Laws

  • 2023 (4) TMI 1148
  • 2023 (4) TMI 1144
  • 2023 (4) TMI 1143
  • 2023 (4) TMI 1142
  • 2023 (4) TMI 1141
  • Insolvency & Bankruptcy

  • 2023 (4) TMI 1140
  • 2023 (4) TMI 1139
  • 2023 (4) TMI 1138
  • 2023 (4) TMI 1137
  • FEMA

  • 2023 (4) TMI 1136
  • Service Tax

  • 2023 (4) TMI 1135
  • 2023 (4) TMI 1134
  • 2023 (4) TMI 1133
  • 2023 (4) TMI 1132
  • Central Excise

  • 2023 (4) TMI 1131
  • 2023 (4) TMI 1130
  • 2023 (4) TMI 1129
  • 2023 (4) TMI 1128
  • CST, VAT & Sales Tax

  • 2023 (4) TMI 1147
  • 2023 (4) TMI 1127
 

Quick Updates:Latest Updates