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TMI Updates - Newsletter dated: January 19, 2018

Highlights

  1. GST : GST Council discusses making return filing process simpler

  2. Income Tax : Addition on account of capital introduction by one of the partner of the firm u/s 68 - no addition can be made with regard to the partner’s capital introduction in the hands of the partnership firm - HC

  3. Income Tax : Addition u/s.115JB under the head ‘provision set aside for diminution in the value of investment holding that the same are not in the nature of provision only.” - MAT - The assessee had credited the difference between the sale price and fair value as on 31.03.2008 to Profit & Loss Account and not the difference between sale price and its cost. - No additions - Tri

  4. Income Tax : Disallowance as the overloading charges - Railway Punitive Charges - payments made to the railways for overloading of the wagons is compensatory in nature and cannot be disallowed under Explanation to Section 37(1) of the Act. - Tri

  5. Income Tax : TDS u/s 194C - Disallowance u/s 40(a)(ia) - when the amount in question was paid by the assessee to the concerned 3 persons at the fixed rate on monthly basis for the specified services rendered by them, there was bound to be an oral contract on the basis which the services were agreed to be rendered on retainership basis - the amount in question was liable to be disallowed u/s 40(a)(ia) - Tri

  6. Income Tax : Deduction u/s 80P - The assessing officer was not competent and did not possess the jurisdiction to resolve / decide the issue as to whether the assessee was a 'Primary Agricultural Credit Society' or a 'Co-operative bank', within the meaning assigned to it under the provisions of the Banking Regulation Act and to take a contrary view - Tri

  7. Income Tax : Income in the shareholders a/c has to be computed under the normal provisions of the computation of income in Income Tax Act. Royalty paid by the assessee in our view cannot be regarded to be an expense relating to the life insurance business. - Tri

  8. Income Tax : Deduction u/s. 80IC - Thus, the basis for allocation of expenditure without examining the separate books of account by the AO on the facts and circumstances of the case is not called for and same is rejected. - Tri

  9. Income Tax : Deduction u/s 80IB - manufacturing of breads and buns - breads and buns do not qualify as confectionery items and are thus not prohibited to be manufactured by SSI units as per the 11th Schedule of the Act. - Tri

  10. Income Tax : TDS u/s 194C - payments made to developers/contractors by assessee co-operative society - The mere fact that the contractor/developer were required to layout roads and undertake other activities before the delivery of the completed sites cannot be either determinative of the facts or need to mean that the agreements entered into by the assessee society is a composite contract and amounts to a works contract - no TDS liability - Tri

  11. Income Tax : Levy of interest u/s 220(2) - such cash seized/ offered to settle the cash liability, should have been accepted and assessee should be deemed to have made the payment specified in the demand notice within the period of limitation as provided u/s 220(1); and cannot be treated in default for not making the payment - Tri

  12. Income Tax : Disallowance of expenses when the business was not fully functional - - Nowhere in the order of the AO there is a whisper as to how the expenditure is excessive and how the expenditure is not having been incurred for the purpose of business u/s 37(1) or there is a personal expenditure - AO cannot disallow expenditure on estimate basis - Tri

  13. Service Tax : Levy of service tax - reimbursable expenses - Electricity and Water charges - levy of service tax on the reimbursable expenses of electricity charges and water charges is unsustainable and requires to be set aside. - Tri

  14. Central Excise : Attachment of immovable properties - creation of charge on such properties for the recovery of the dues of her husband - if the petitioner is correct in contending that all the four immovable properties were purchased by her from her own source of income, the department cannot carry out coercive recovery against such properties merely because her husband died leaving behind sizable departmental dues - HC

  15. Central Excise : Classification of goods - Automatic Taps - Urinals and WC Flushing Systems - classified under CETH 854390 or under CETH 90328910? - The goods manufactured are in the nature of instruments/ apparatus for automatically controlling of the flow of the fluid. Hence, these are most appropriately classifiable under CETH 9032 - Tri

  16. Central Excise : CENVAT credit - Capital goods - the Railway siding was laid down from the factory premises up to the Railway station, which is necessary for inward transportation of the inputs and outward transportation of their final product - the pre-stressed cement sleepers are Cenvatable items - Tri

  17. Central Excise : Valuation - amortization of cost of patterns - appellants amortized the entire cost of these patterns against the first Purchase Order for supply of 75 pieces of the castings - The department entertained the view that appellant ought to have amortized the cost of patterns against supply of all castings manufactured using the patterns - demand confirmed - Tri

  18. VAT and Sales Tax : Lapses and failures on the part of authorities - If the contention and the pleas of the petitioner are rejected, they can be burdened with tax, interest and penalty. However, there is no provision in the Act under which the authorities can be burdened with any penalty or costs for the wrongs committed by them in violation of the provisions of the Act. - we are inclined to impose penalty in form of costs of ₹ 50,000/- on the respondents (officers) - HC


Articles


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Circulars / Instructions / Orders


News - Feeds


Case Laws:

More information of case laws are visible to the Subscriber of a package i.e:-
Party Name, Court Name, Date of Decision, Full Text of Headnote, Decision etc.


  1. 2018 (1) TMI 854

    Penalty u/s 271(1)(c) - proof of furnishing inaccurate particulars - addition of improvement and transfer expenses incurred for the purposes of the property sold - Held that - AO has not made any allegations of assessee for furnishing inaccurate particulars. Additions in fact have been made on account of improvement and transfer expenses incurred for the purposes of the property sold. Assessee has also made certain payments to one Mr.Anumod Sharm....... + More


  2. 2018 (1) TMI 855

    Addition u/s.115JB under the head provision set aside for diminution in the value of investment holding that the same are not in the nature of provision only. - MAT - Held that - As per amended provisions of Section 115JB requires provision for diminution in value of investment to be added back to determine Minimum Alternate Tax. Fair value of units of mutual funds was lower than its cost by ₹ 46,94,62,365/- and the same being current inves....... + More


  3. 2018 (1) TMI 856

    Disallowing the claim of deduction u/s 80P(2) - AO competency and jurisdiction to resolve / decide the issue as to whether the assessee was a Primary Agricultural Credit Society or a Co-operative bank - Held that - The Reserve Bank of India, which is the competent authority as per the Banking Regulation Act, treats assessee society and similar societies as only Primary Agricultural Credit Society not falling within the ambit of Banking Regulation....... + More


  4. 2018 (1) TMI 857

    Entitled to the benefit of deduction u/s 80P(2) - whether Primary Agricultural Credit Society not falling within the ambit of Banking Regulation Act? - Held that - The Reserve Bank of India, which is the competent authority as per the Banking Regulation Act, treats assessee society and similar societies as only Primary Agricultural Credit Society not falling within the ambit of Banking Regulation Act. The Reserve Bank of India has given letters t....... + More


  5. 2018 (1) TMI 852

    Income deemed to accrue or arise in India - Holding the income from offshore supply of cables not taxable in India - effective rate on payment made to the assessee under offshore supply contracts - PE in India - Held that - AO brought to tax the Revenues from offshore supply by considering profit rate of 10% and attributing 25% of profits to operations carried out in India. While doing so, the AO has followed the orders of his predecessors as wel....... + More


  6. 2018 (1) TMI 853

    Difference of income as per Income & Expenditure account and form no. 26AS - Held that - On perusal of Computation of Income it is seen that appellant has added interest credited to corpus fund/earmarked funds and thus over and above interest credited to Income and expenditure account of ₹ 96,94,906/- (Rs.6,99,706/- Savings Bank Interest ₹ 89,95,200/- Interest from corpus fund), it has offered to tax further interest of ₹ 1,....... + More


  7. 2018 (1) TMI 851

    Agricultural income not accepted - assessee submitted some voucher mentioned the cash receipts of sale of such potatoes - AO was not sure about the genuiness of the vouchers - Held that - As decided in assessee s own case for Asst. Year 2001-02 2012 (1) TMI 337 - ITAT AHMEDABAD the accounts maintained by the assessee for agricultural activities suffer from certain defects. The agricultural income declared by the assessee deserves reduction. Respe....... + More


  8. 2018 (1) TMI 847

    Computation of capital gain - invocation of provisions of sec 50C - most appropriate method for valuation of the galas/building of the assessee - FMV determination - satisfaction of conditions contemplating a transfer as per Sec. 2(47)(v) - Held that - The tenancies in Mumbai are statutorily controlled by the rent control legislations and rent fetched were likely to remain unaltered for years to come, therefore, in the case of the present assesse....... + More


  9. 2018 (1) TMI 848

    Entitled to the benefit of section 80P deduction - AO s jurisdiction to resolve / decide the issue as to whether the assessee was a Primary Agricultural Credit Society or a Co-operative bank - Held that - The Reserve Bank of India, which is the competent authority as per the Banking Regulation Act, treats assessee society and similar societies as only Primary Agricultural Credit Society not falling within the ambit of Banking Regulation Act. The ....... + More


  10. 2018 (1) TMI 849

    Addition on account of sales promotion and advertisement expenses as unproved / bogus - Held that - When the permanent account number as well as other particulars of the income tax assessment of the said party were placed on record before the A.O., he could have easily verified the claim of the assessee directly with the said party instead of harping on the failure of the assessee to give the correct address or produce the said party for verifica....... + More


  11. 2018 (1) TMI 850

    Disallowance as the overloading charges - whether it is nothing but a penalty as per Provision of section 73 of the Indian Railway Act, 1989 - Held that - This issue raised by the revenue in this appeal is squarely covered in favour of the assessee by the decision of ITAT Mumbai bench in the case of Taurian Iron & Steel Co.(P)Ltd (2011 (12) TMI 410 - ITAT, Mumbai) after considering the decision in the case of Prakash Cotton Mills P.Ltd. (1993....... + More


  12. 2018 (1) TMI 846

    Disallowance of ESOPs expenses - Held that - The facts of the matter are similar to that of the preceding AYs 2008-09 to 2012-13 which have been decided in favour of the assessee. BR BR Amortization of expenses, being the cost of the discounted value of shares allotted to the employees under the ESOP scheme dated 01.04.2007 to 30.05.2011, have been claimed by the assessee and the same being taxable in the hands of the respective employees have be....... + More


  13. 2018 (1) TMI 845

    Profit disclosed by the assessee in the shareholder s Profit and loss account (Form A-PL) - not the profit derived from Life Insurance business and therefore the provisions of section 44 read with Schedule First of the Income Tax Act are not applicable - Held that - Set aside the order of CIT(A) on this issue and direct the assessing officer to take profit shown in shareholders profit and loss account i.e. Form A-PL to be part of the income deriv....... + More


  14. 2018 (1) TMI 844

    Deduction u/s. 80IC - the assessee company is having two units, one at Bawal which is taxable unit; and other one is at Haridwar - Held that - In the impugned orders as well as the material referred to before us at the time of hearing. The assessee is carrying out operation from two units; Bawal unit which is a taxable; and unit of Haridwar which is eligible for deduction 100% u/s.80IC on its profits derived. The Revenue s case is that, the asses....... + More


  15. 2018 (1) TMI 843

    Capital Gains - JDA - Revision u/s 263 - as per CIT AO ought to have held that there was a transfer of a capital asset by the assessee by virtue of agreement dated 11.11.2000 and capital gain had accrued during the previous year - assessee parted with possession of the property as contemplated in Section 53A - taxability of capital gain in the present year because the JDA was executed in the present year - Held that - Possession was given by thes....... + More


  16. 2018 (1) TMI 842

    Eligibility of the assessee to claim deduction u/s 80IB on profits earned by Noida unit - assessee to qualify as an SSI undertaking as per section 11B of the IDR Act, 1951 - Held that - The eligibility criteria for claiming deduction u/s 80IB as an SSI unit is that it should be regarded as an SSI undertaking u/s 11B of the IDR Act, 1951. Admittedly, the assessee has been issued such a certificate by the Directorate of Industries and which is vali....... + More


  17. 2018 (1) TMI 841

    TDS u/s 194C - liability to deduct tax at source on the payments made to developers/contractors by assessee co-operative society - assessee-in-default - Held that - The mere fact that the contractor/developer were required to layout roads and undertake other activities before the delivery of the completed sites cannot be either determinative of the facts or need to mean that the agreements entered into by the assessee society is a composite contr....... + More


  18. 2018 (1) TMI 840

    Levy of interest under section 220(2) - amount seized from the accounts of various companies during the course of search - interest imposed from the date of original demand notice - Held that - If the Department on its own volition has made the addition, both in the hands of the assessee as well as in the hands of the companies for the same amount and chooses to adjust cash seized out of the demand of the companies, which was denied by the compan....... + More


  19. 2018 (1) TMI 839

    Disallowance of expenses when the business was not fully functional - Held that - Assessing Officer has not disallowed 100% expenditure and he had considered the maximum expenditure as genuine and having been incurred for the purpose of business u/s 37(1) of the Act, which means that the expenditure claimed by the assessee has been considered as excessive. Nowhere in the order of the Assessing Officer there is a whisper as to how the expenditure ....... + More


  20. 2018 (1) TMI 838

    Receipts on account of carbon credit - Held that - Receipts on account of carbon credit is not in the nature of income and not chargeable to tax. See case of CIT Vs. My Home Power Ltd. 2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT wherein it was held that carbon credit was not an offshoot of business of the assessee but an offshoot of environmental concerns. No asset was generated in the course of business but it was generated due to environmental ....... + More


  21. 2018 (1) TMI 833

    Smuggling - mis-declaration of imported goods - the department is of the view that Shri Sandeep Rikhi was actively involved in clearance of impugned consignment and that the statement of various witnesses corroborated one another to sustain the chain of events - Held that - it appears that M/s. Naresh Hand Work, a proprietary concern of Shri Naresh Kumar had imported the bags in which cosmetics, readymade garments, mobile phone housing etc. were ....... + More


  22. 2018 (1) TMI 832

    Validity of SCN - whether the appellants have rightly availed the benefit under N/N. 203/92-Cus against presenting Value Based Import Licence (VABAL) transferred in their favor? BR BR Held that - the licence was issued to some other manufacturers/exporters who have sold the licence to the appellant. Under such circumstances, under the Scheme of Customs Act, duty cannot be demanded from the appellant who is holding the Value Based Advance Licence ....... + More


  23. 2018 (1) TMI 837

    Constitutional Vires of sub-para (i) of paragraph 3 of Notification No. 43(RE-2013) 2009-2014 dated 25th September, 2013 and sub-para (i) of paragraph 2 of Notification No. 44(RE2013) 2009-2014 dated 25th September, 2013 - non-speaking order. BR BR Held that - Sub-Section (4) of Section 9 of the Foreign Trade (Development and Regulation) Act, 1992 mandates and requires the authority to pass a reasoned and a speaking order - This is a specific dir....... + More


  24. 2018 (1) TMI 836

    Classification of export goods - DEPB benefits - whether the Tribunal in the earlier round of litigation has concluded the issue so far as the classification of goods for export benefits is concerned, there being no material change in the circumstances and whether in facts of the present case, writ jurisdiction should be exercised without relegating the petitioners to the appellate forum? BR BR Held that - The Tribunal was of the opinion that whe....... + More


  25. 2018 (1) TMI 831

    Penalty u/s 112(a) of the CA, 1962 - scope of SCN - case of appellant is that there was no allegation in the notice to the effect that the appellant had abetted anybody else in violating the provisions of the Customs Act and the Import Trade (Control) Regulation - Held that - Deputy Commissioner has travelled beyond the scope of the SCN as there is no allegation in the notice that the appellant had abetted with anybody else in the alleged violati....... + More


  26. 2018 (1) TMI 835

    Renewal of CHA License - renewal of licence for a period of ten years from 04.01.2018 - pendency of SCN. BR BR Held that - mere pendency of a show cause is not a ground to withhold the petitioner s application for renewal - the Department should take an appropriate stand in the matter in extending the licence of the petitioner for a shorter period, when the petitioner, in terms of the regulations, is entitled for renewal up to ten years - Admitte....... + More


  27. 2018 (1) TMI 834

    Amendment of Shipping Bill - Section 149 of the Customs Act, 1962 - It is submitted by the learned counsel for the petitioner that the representation dated 09.11.2017 was sent to the first respondent by registered post and that it would have reached the office of the first respondent within two or three days of dispatch - Held that - the writ petition is disposed of with a direction to the first respondent to consider the representation of the pe....... + More


  28. 2018 (1) TMI 830

    Compounding of the offences for violation of certain provisions during some of the financial years - Composition of certain offences u/s 621A - Held that - Merely on the ground that investigation by SFIO is going on or some other cases are pending Ld. Tribunal ought not have rejected all the appeals. BR BR Sub-section (1) of Section 621 prohibits compounding when an offence punishable with imprisonment only, or with imprisonment and also with fin....... + More


  29. 2018 (1) TMI 829

    Offence under PMLA - Whether a supplementary complaint is maintainable? - Held that - The extreme view that once a complaint is filed then a second complaint is totally barred and cognizance on the second complaint against a new accused person is illegal appears to be erroneous as once power of investigation is vested in an agency and cognizance can be taken on a complaint only then on a further investigation carried out with the leave of the cou....... + More


  30. 2018 (1) TMI 828

    Demand of various electronic transfers made by the Plaintiffs to the Defendants - cheque was returned with the remarks Funds Insufficient - Section 138 of the Negotiable Instruments Act, 1881 - Held that - In the present appeal, on 23rd May 2016, an option was given to the Defendants to deposit the decretal amount. However, since the Defendants did not avail of the said option, this Court directed that execution petition would be proceeded with. ....... + More


  31. 2018 (1) TMI 864

    Corporate insolvency proceedings - eligible debt - Held that - It is established there is default of Debts which comes to ₹ 1,18,41,92,137.17/- and which is in excess of ₹ 1,00,000/- (Rupees One Lakh only). Hence, the present application can be considered for its Admission. BR BR Having heard the submission of Shri Nath Tiwari Advocate for Financial Creditor as well as of Shri P.K Bajpai, Advocate for Corporate Debtor, the present pet....... + More


  32. 2018 (1) TMI 827

    CENVAT credit - input service - construction service - Held that - Prior to 16.6.2005 ₹ 5,16,774/-, Appellant is not contesting this portion of the demand. The same is upheld - Between 16.6.2005 and 01.06.2007, the impugned input services availed by appellant are included in Rule 6 (5) of CCR, 2004, and as the appellants were also using these services partly for rendering MMR services, availment of impugned input service credits availed dur....... + More


  33. 2018 (1) TMI 824

    Clandestine removal - shortage of stock - burden of prove - Held that - case of clandestine removal without payment has to be established with supporting evidence, the goods which are recorded, as produced/in stock, are not available in the approved premises of the appellant. In such situation, necessarily the burden shifts to the appellant to explain such shortage satisfactorily - In the present case, the appellant failed to do so - it is not a ....... + More


  34. 2018 (1) TMI 825

    Classification of goods - Automatic Taps - Urinals and WC Flushing Systems - classified under CETH 854390 or under CETH 90328910? - Held that - It is evident from the head note under 8481 that this heading covers various types of Taps, Locks, valves etc - The Automatic Tap manufactured by the appellant, no doubt incorporates an electronic control device, but functions as a Tap to regulate the flow of liquid. Consequently, the essential character ....... + More


  35. 2018 (1) TMI 826

    Attachment of immovable properties - creation of charge on such properties for the recovery of the dues of her husband - case of petitioner is that all the four properties proposed to be attached were purchased by her out of her own source of income and not acquired by her through inheritance from her late husband and the department therefore, cannot attach such properties - duty demand against the petitioner, wife of deceased assessee. BR BR Hel....... + More


  36. 2018 (1) TMI 823

    Clandestine removal - shortage of stock - demand on the basis of Statement of Shri H M Thakore and Shri U H Thakore and delivery challans recovered at the factory and office premises - Held that - It is undisputed that the delivery challans were in fact indicating the name of the purchaser; no efforts were made by the Revenue authorities to record the statements any of purchaser of the finished goods, more so when the delivery challans had the na....... + More


  37. 2018 (1) TMI 822

    CENVAT credit - Capital goods - pre-stressed concrete sleepers falling under Chapter 65 of the Central Excise Tariff - Held that - In the appellant s own case reported as Ultra Tech Cement Ltd. 2016 (9) TMI 284 - CESTAT HYDERABAD , it was observed that mono block concrete sleepers for Rail track are eligible Cenvatable goods - in the present case, admittedly the Railway siding was laid down from the factory premises up to the Railway station, whi....... + More


  38. 2018 (1) TMI 821

    CENVAT credit - input services - professional services as regard charges for expansion of production capacity - Held that - the services which are used in modernization, renovation, repairs of the factory Service Tax credit can be availed - It is not clear from the records as to how both the authorities have come to a conclusion that the said expansion/renovation is not covered under the definition of the input service and especially under modern....... + More


  39. 2018 (1) TMI 820

    Valuation - amortization of cost of patterns - appellants amortized the entire cost of these patterns against the first Purchase Order received from M/s.Bharat Earth Movers Ltd. (BEML) for supply of 75 pieces of the castings - The department entertained the view that appellant ought to have amortized the cost of patterns against supply of all castings manufactured using the patterns. BR BR Held that - the value of amortization of the pattern supp....... + More


  40. 2018 (1) TMI 819

    Principles of Natural justice - denial of opportunity to cross-examine in remand proceedings - Held that - The adjudicating authority between September 2014 and February 2015 extended three opportunities to the Appellants for cross-examination of the witnesses, however, the Appellants did not avail any of the said opportunities - even though they made the claim that they have not received intimation of hearings, no evidence has been adduced by th....... + More


  41. 2018 (1) TMI 818

    Jurisdiction - power of of delegation of Special Commissioner to appoint officers - Form DVAT-50 - principles of sub-delegation - consequences for wrongful doings on the part of delegated officers BR BR Held that - Section 68 of the Act deals with the power of the Commissioner to delegate any of his powers under the Act to any Value Added Tax Authorities. Sub-section (2) is relevant, for it relates to delegation of power under Chapter-X, and stat....... + More


  42. 2018 (1) TMI 817

    Recovery of Arrear Sales Tax - it is submitted by petitioner that if at all, the respondent has to recover any arrears of sales tax, then, the respondent should proceed against the dealer, or, in other words, the Proprietor, who owns the said Concern, as subsequently he released his part of shares - Held that - even if the petitioner had not obtained a decree from the Civil Court, the respondent could not proceed against the petitioner s father f....... + More


 
 
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