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Home e-Newsletters Index Year 2023 January Day 11 - Wednesday

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TMI Tax Updates - e-Newsletter
January 11, 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:

    Cancellation of registration of the petitioner-Firm - cancellation on the ground that he was not functioning/not existing at the principal place of business - The first Appellate Authority once it had taken note about the rent agreement, should have taken into consideration that the place of business of the Assessee has changed and an opportunity should have been given to the Assessee to place all material before it and the authority should have recorded findings before rejecting the appeal confirming the order of cancellation of registration. - HC

  • GST:

    Cancellation of registration of petitioner - delay in filing of appeal - the Assessee cannot be left remediless and the Appellate Authority should have entertained the appeal and decided the same on merits. The business cannot be hampered and suffered on mere technicalities of law and the Appellate Authority should have considered the appeal on merits. - HC

  • GST:

    Initiation of proceedings without issuance of SCN - notice in Part A of FORM GST DRC-01A having not been issued - validity of subsequent proceedings - As the initiation of proceedings itself are bad, the order passed consequent thereto will also fall. - HC

  • GST:

    Detention order - challenge on the short ground that the impugned proceedings are barred by the limitation prescribed under Section 129(3) of the GST Act, 2017 - the order u/s.129(3) of the Act is passed on the eighth day from the date of service of notice, whereas the time line stipulated under Section 129(3) of the Act is that the order ought to be passed within a period of 7 days from the date of service of such notice. - The impugned proceedings are set aside and the vehicles/goods in question shall be released forthwith - HC

  • Income Tax:

    Validity of Assessment order framed u/s 143(3) r.w.s. 144B - opportunity to respond to the show-cause notice was not made available to the assessee - - the order passed u/s. 143(3) r.w.s. 144B quashed and set aside - The penalty proceedings and the demand notice are also quashed and set aside, however, we give liberty to the Assessing Officer to initiate the proceedings afresh from the stage of providing the opportunity to the petitioner of hearing if such request is made, and thereafter, to decide the matter. - HC

  • Income Tax:

    Assessment u/s 153A - undisclosed income - The only stress placed by Revenue is that the amount was accepted as undisclosed income in the statement recorded u/s 132(4) of the Act. It is a settled law that only on the basis of the statement, and without any corroborating evidence no addition of income can be made. - AT

  • Income Tax:

    Foreign tax credit u/s 90/90A - delay in filing Form no.67 - mere delay in filing Form No. 67 as per the provisions of Rule 128(9), as it stood during the year under consideration, will not preclude the assessee from claiming the benefit of foreign tax credit in respect of tax paid outside India. - AT

  • Income Tax:

    Disallowing the NCDEX Trading Loss - Speculation Loss - It is not in dispute that the assessee's transactions in agricultural commodity derivative were otherwise eligible transaction within the meaning of Section 43(5)(e) of the Act, we set aside the orders of the lower authorities on this issue and direct the AO to treat the loss in said transaction as non- speculative business loss and accordingly allow set off of the same from other business income as per law. - AT

  • Income Tax:

    Scope of additions beyond the limited scrutiny assessment u/s 143 - As such the entire issue should have been limited to the extent of the dispute raised in the notice issued under section 143(2) of the Act for the limited scrutiny but the AO in the present case has exceeded his jurisdiction as discussed above. Thus, we hold the addition made by the AO without having valid jurisdiction cannot be sustained. - AT

  • Income Tax:

    Royalty receipt - domain registration services - Domain names serve to identify such internet resources with a text base label that is easier to memorise than the numerical addresses used in the Internet Protocols. Domain names are also used as simple identification labels to indicate ownership or control of a resource. - since the assessee had no right in the domain name, the income received by the assessee from domain name registration does not fall in the category of royalty as defined under Article 12(3) of the India UAE DTAA. - AT

  • Income Tax:

    Reopening of assessment u/s 147 - AO can add other items of income along with the income for the escapement of which the assessment was reopened. However, without assessing that escaped income the Assessing Officer cannot make assessment of other items of income. Thus,no hesitation in holding that the addition made by disallowing the expenses claimed is unsustainable. - AT

  • Income Tax:

    Unaccounted purchases - unaccounted income of the assessee - it is difficult to accept the arguments of the assessee that income earned out of unaccounted sales is plugged back into the business and which is source for unaccounted purchases, because, unaccounted purchases noticed by the Department is more than the amount of additional income offered by the assessee. - AT

  • Income Tax:

    Revision u/s 263 - once the AO cannot examine any other issue except the issue as selected for limited scrutiny assessment, the PCIT can examine the only issue which was before the AO during the course of scrutiny assessment and not any other issue, which has not been subject matter of the AO for the assessment in a limited scrutiny assessment - Revision order set aside - AT

  • Income Tax:

    Deduction claimed u/s. 54 - delay in depositing unutilized amount in capital gains account deposit scheme - Assessee has explained reasons for depositing unutilized amount of capital gains in capital gain deposit account scheme, and further claimed that ultimately he has invested entire amount of capital gain for acquiring new asset within three years from the date of transfer of original asset. - Benefit of exemption allowed - AT

  • Income Tax:

    Withholding tax u/s 195 - foreign remittances - payment of examination fee collected from the students - The expression ‘teaching in or by educational institution’ cannot be confined to the activity of imparting the instructions alone, in a broader sense, teaching includes not only the imparting the instructions but also the verification of the extent of perception of such instruction by the pupil and thereby includes the activity of examinations also. In this sense, this particular activity falls in the ambit of the exemption clause in the DTAAs which exempt the amounts paid for teaching in or by the educational institutions. - AT

  • Customs:

    Revocation of customs broker license - Appellant is not a valuation expert and had played no role in the under valuation of the goods. The appellant acted purely on the basis of documents as that of invoice/purchase orders supplied by the importers. - The appellant has not committed any alleged violation of Regulation 10(a), 10(d) and 10(n) of CBLR, 2018 - the order of revoking the license of appellant and of imposing penalty upon the appellant is absolutely wrong, unreasonable and unjustified. - AT

  • Customs:

    Continuation of anti-dumping duty u/s 9A - The inevitable conclusion that follows from the aforesaid discussion is that the decision taken by the Central Government not to impose anti-dumping duty despite a recommendation having been made by the designated authority for imposition of anti-dumping duty, cannot be sustained as it does not contain reasons nor the principles of natural justice have been compiled with - AT

  • Indian Laws:

    Demonetization - Scope of the term "Any" - Validity of N/N. 3407(E) dated 8th November 2016, issued by the Central Government in exercise of the powers conferred by sub-section (2) of Section 26 of the Reserve Bank of India Act, 1934 - Merely because on earlier two occasions the Government decided to take recourse to plenary power of legislation, this, by itself, cannot be a ground to give a restricted meaning to the word “any” in sub-section (2) of Section 26 of the RBI Act. As already discussed herein above, the legislative intent could not have been to give a restricted meaning to the word “any” in sub-section (2) of Section 26 of the RBI Act - we are unable to accept the contention that the word “any” has to be given a restricted meaning taking into consideration the overall scheme, purpose and the object of the RBI Act and also the context in which the power is to be exercised. We find that the word “any” would mean “all” under sub-section (2) of Section 26 of the RBI Act. - SC

  • Indian Laws:

    Enforcement of final foreign arbitral award - The respondents failed to establish any ground on which the recognition of the Foreign Award should be refused. Consequently, subject to the requirement of obtaining RBI approval before initiating further proceedings for enforcement, the Foreign Award is recognized and held to be enforceable as a decree of this Court. - HC

  • IBC:

    Condonation of delay in filing appeal - appeal filed on the 35th day - Keeping in mind, the provisions of the I & B Code, 2016, having an overriding effect, in respect of other Laws, as per Section 238 of the Code, this Tribunal, taking into consideration of yet another fact that the I & B Code, 2016, is an inbuilt and a self-contained one, yet the Limitation Act, 1963, cannot supersede / march over, the I & B Code, 2016 - AT

  • Service Tax:

    Levy of Service Tax - technical testing and analysis service - we do not find any merit in the argument that the charges recovered on account of storage beyond period of 3 months can be considered as part of the provision of technical testing and analysis service. - AT

  • Central Excise:

    Gold Balas - Primary Gold seizure of gold ornaments pledged with the Appellant’s family - it is quite clear that a definite shape has been given to the gold Balas in question and had it been a primary gold, it would have been simple gold rod or plate or pieces, and it should not have been bent and also given a certain shape which is evident from the picture. Therefore, there is no room for doubt that these gold Balas are gold ornaments having a definite shape to be worn by the local people.- AT

  • Central Excise:

    CENVAT Credit - Availment of credit by Appellant without a centralized registration - It is not a case of the department that on the input services/ invoices, no service tax was paid and there is no dispute about receipt and use of the services, which are the main criteria for allowing Cenvat credit on input service - only on the technical infraction should not be denied. - AT

  • VAT:

    Input tax credit - eligibility of benefit of input tax credit claimed after six months from the date of invoice - the Apex court has held that credit is indefeasible. The Modvat credit is similar to the Input Tax Credit in this case. Therefore, no exception can be taken to the view taken by the Hon’ble Single Judge that the Input Tax Credit cannot be denied on the anvil of the machinery provisions or the provisions relating to the time frame. - HC

  • VAT:

    Taxable turnover - works contract - earth work - deduction of 30% as labour charges - The Assessee – revisionist is not liable to pay any tax on the same, especially in view of the fact that neither the Assessing Authority nor the First Appellate Court nor the Second Appellate Court has held that Assessee – revisionist has income from other sources for the assessment year, therefore, the imposition of tax is illegal, hence, to be set-aside. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2023 (1) TMI 381
  • 2023 (1) TMI 380
  • 2023 (1) TMI 379
  • 2023 (1) TMI 378
  • 2023 (1) TMI 335
  • 2023 (1) TMI 377
  • Income Tax

  • 2023 (1) TMI 374
  • 2023 (1) TMI 373
  • 2023 (1) TMI 372
  • 2023 (1) TMI 371
  • 2023 (1) TMI 370
  • 2023 (1) TMI 369
  • 2023 (1) TMI 368
  • 2023 (1) TMI 367
  • 2023 (1) TMI 376
  • 2023 (1) TMI 366
  • 2023 (1) TMI 365
  • 2023 (1) TMI 364
  • 2023 (1) TMI 363
  • 2023 (1) TMI 362
  • 2023 (1) TMI 361
  • 2023 (1) TMI 360
  • 2023 (1) TMI 375
  • 2023 (1) TMI 359
  • 2023 (1) TMI 358
  • 2023 (1) TMI 357
  • 2023 (1) TMI 356
  • 2023 (1) TMI 355
  • 2023 (1) TMI 354
  • Customs

  • 2023 (1) TMI 353
  • 2023 (1) TMI 352
  • 2023 (1) TMI 351
  • Insolvency & Bankruptcy

  • 2023 (1) TMI 350
  • 2023 (1) TMI 349
  • 2023 (1) TMI 348
  • Service Tax

  • 2023 (1) TMI 346
  • 2023 (1) TMI 345
  • 2023 (1) TMI 347
  • Central Excise

  • 2023 (1) TMI 344
  • 2023 (1) TMI 343
  • 2023 (1) TMI 342
  • CST, VAT & Sales Tax

  • 2023 (1) TMI 341
  • 2023 (1) TMI 340
  • 2023 (1) TMI 339
  • 2023 (1) TMI 338
  • Indian Laws

  • 2023 (1) TMI 336
  • 2023 (1) TMI 337
 

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