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Home e-Newsletters Index Year 2021 October Day 9 - Saturday

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TMI Tax Updates - e-Newsletter
October 9, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Refund claim - Rule 97A of the Central Goods and Services Tax (CGST) Rules, 2017 - Once the application had been processed and or order passed, which has attained finality, the respondents cannot escape the plain effect of the same. They also cannot escape the liability of interest that arises on non-compliance of the same. - Refund allowed with interest @6% - HC

  • GST:

    Levy of GST - Supply or not - leasing services - contribution paid/payable by the members towards Development Cost of the Bourse for the promotion of Exports of Gem and Jewellery - The procedure of registration of purchase of land and applicable stamp duties is different from the procedure of lease of land. - Further, we note that GHB is aware of this fact that subject activity is leasing service because GHB itself argues for the applicability of entry 41 to said Notification, wherein the description of services is long term leasing of plots for thirty years or more. - Liable to GST - AAR

  • GST:

    Levy of GST - supply or not - payment of settlement fees pursuant to deed of settlement and Release signed for Timor-Leste Oil Block Production Sharing Contract - supply in GST era or not - GSPC (J) is liable to pay IGST, vide Reverse Charge Mechanism, on Import of Subject supply of Service from ANP. - AAR

  • GST:

    Levy of GST - man power services provided - The Subject Supply for the purpose of Security, Cleaning and Housekeeping services provided to the cited schools are exempt from GST. - GST is liable to be paid on subject supply provided to all cited Government Colleges providing education services of above higher secondary level - GST is liable to be paid on subject supply provided to all cited Government offices / Government hospitals. - AAR

  • GST:

    Seeking protection form arrest - The matter involves availment of huge amount of tax input credit. Therefore, a thorough investigation is certainly required. Any protection granted to the applicant from arrest would rather, be a sure impediment in such investigation. Such being the position, the submission of the applicant that personal liberty of an individual needs to be given paramount importance need not be given undue significance. Rather, the interest of the nation and society cannot be overlooked in such cases. - DSC

  • Income Tax:

    Revision u/s 263 by CIT - limit limit to pass the order - If the interpretation made by the High Court and the learned ITAT is accepted in that case it will be violating the provision of Section 263 (2) of the Act and to add something which is not there in the section - word used is “made” and not the “receipt of the order”. As per the cardinal principle of law the provision of the statue/act is to be read as it is and nothing is to be added or taken away from the provision of the statue. Therefore, the High Court has erred in holding that the order under Section 263 of the Act passed by the learned Commissioner was barred by period of limitation, as provided under subsection (2) of Section 263 of the Act. - SC

  • Income Tax:

    Exemption u/s 54F(1) - The three parts/limbs cannot be intermingled to deny the benefit of 54F(1) to the assessee. The third part/ limb being applicable to the facts of the case and it is not in dispute that the assessee has constructed the residential building within three years from the date of transfer of long standing asset, the benefit flowing from the said Section cannot be denied on the premise that the land was purchased prior to one year. In our opinion, this interpretation of the revenue is wholly untenable and would defeat the object and purport of the provision. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - it appears that the AO has recorded to the effect that he could not refer the matter to the Transfer Pricing Officer nor could he examine the issue because of delayed submission of the revised reports - observations recorded by the AO are factually incorrect and contrary to the material evidence on record - while framing the assessment order, it would not reflect that due to non-submission of revised Accountant’s report or Form No.3CEB, AO could not determine the Arm’s Length Price or refer the issue to the Transfer Pricing Officer. - The notice is not sustainable, quashed - HC

  • Income Tax:

    Income accrued in India - Rendering services to non-resident entities - Though, the assessing officer has generally observed that in course of providing services to the assessee, the non-resident entities have made available technical knowledge, know-how, processes to the assessee. However, no substantive material has been brought on record by him to back such conclusion. - it is very much clear, the conditions of Article 12(4) of the tax treaty are not fulfilled. - AT

  • Income Tax:

    TDS u/s 195 - Disallowance of management fee paid by invoking the provisions of section 40(a)(i) - whether payment of management fees cannot be regarded as fees for technical services as per the DTAA between India and the U. K. - For ascertaining chargeability to tax reference to the relevant DTAA is essential - we hold that the assessee’s services were managerial in nature and not technical services. Hence, the assessee is not liable to deduct TDS on the same. - AT

  • Income Tax:

    Set off of brought forward business loss against income from other sources - As provision of section 72 are very clear that brought forward business loss can only be set off against business profit. The assessee itself has shown the interest income in its computation as income from other sources. It is not coming out from records that the fixed deposits were maintained by the assessee out of some business necessity and apparently the fixed deposits were made out of savings from rental income which the assessee has itself offered to tax under income from house property. Interest from electricity company and interest from income tax refund are essentially again ‘income from other sources’. Therefore, as per the provisions of section 72 of the Act, the Lower Authorities have rightly disallowed the set off of brought forward business losses. - AT

  • Income Tax:

    Revision u/s 263 by CIT - PCIT himself has not carried out any examination or verification of facts and has simply directed the AO to ‘may verify Form 10CC and initial years assessment orders of each business based on the contract entered with Railways’. PCIT has merely set aside to indulge in verification of the same facts yet again without citing as to how the AO has committed any error except alleging no proper enquiry. - As no two persons possibly think alike, variance in their analysis, understanding and application of law in same or similar factual matrix by itself would not empower a superior authority to displace the view of the lower authority. - AT

  • Income Tax:

    Disallowance of expenses and commission paid as excessive - Assessing Officer held that the assessee could not substantiate the discrepancies but did not mention anything as to what are all the discrepancies found. The mere allegations cannot be treated as evidences. The fundamental principle of justice requires the Assessing Officer to discover and collect evidence and confront the assessee before making any disallowance. In the instant case, there was no mention at all as to which of the expenses is bogus or inflated. - AT

  • Customs:

    Refund of CVD and Special Additional Duty (SAD) - claim were rejected on the ground that DEPB scrips cannot be re- credited - After granting exemption subject to certain conditions, new conditions cannot be introduced by administrative directions or guidelines contrary to the statutory notification or restricting or withdrawing the benefits or imposing strict conditions. - If the DEPB Scheme has lapsed, notwithstanding 4% SAD paid through DEPB scrips, the assessee is entitled to the benefit of exemption N/N. 102/2007 by claiming refund through cash - HC

  • Customs:

    Benefit of concessional rate of SAD - Declaration of RSP - proof of payment of actual VAT on sale after import - The Notification does not envisage an inquiry into the correctness of RSP. It is sufficient if RSP is declared. If the goods are sold at a higher rate, it has to be established with evidence. The Adjudicating Authority need not make unnecessary exercise of what other charges also should be added. When RSP is declared, it is the price at which it is intended to be sold to the consumer. - Demand set aside - AT

  • Direct Taxes:

    Benami transaction - commercial complex as been leased out to the company by the JDA - The entire fulcrum of this case, therefore, rests on misinterpretation of the provisions of the Benami Act, 1988. All the transactions in the corporate world made by the company would become benami transaction if the interpretation of definition as understood by the respondents is accepted by this Court. The entire proceedings initiated under the Benami Act, 1988 deserve to be quashed and set aside. - HC

  • Indian Laws:

    Dishonor of Cheque - Proclamation for person absconding - reason to believe - It is apparent that the impugned orders suffer from the vice of non-application of mind and deserve to be set aside. The declaration of the petitioner as an ‘absconder’, as well as attachment of his properties, was neither fit in the facts and circumstances of the case nor was it in accordance with law. - HC

  • Service Tax:

    Refund of service tax - double payment of service tax was made - when service tax is paid by mistake a claim for refund cannot be barred by limitation, merely because the period of limitation under Section 11B had expired - The refund claims rejected as time barred in these cases cannot be sustained - Refund allowed - AT


Articles


Notifications


News


Case Laws:

  • GST

  • 2021 (10) TMI 374
  • 2021 (10) TMI 373
  • 2021 (10) TMI 372
  • 2021 (10) TMI 371
  • 2021 (10) TMI 370
  • 2021 (10) TMI 369
  • 2021 (10) TMI 365
  • 2021 (10) TMI 368
  • 2021 (10) TMI 367
  • 2021 (10) TMI 366
  • 2021 (10) TMI 364
  • Income Tax

  • 2021 (10) TMI 363
  • 2021 (10) TMI 360
  • 2021 (10) TMI 359
  • 2021 (10) TMI 358
  • 2021 (10) TMI 357
  • 2021 (10) TMI 356
  • 2021 (10) TMI 355
  • 2021 (10) TMI 354
  • 2021 (10) TMI 353
  • 2021 (10) TMI 352
  • 2021 (10) TMI 351
  • 2021 (10) TMI 350
  • 2021 (10) TMI 349
  • 2021 (10) TMI 348
  • 2021 (10) TMI 347
  • 2021 (10) TMI 362
  • 2021 (10) TMI 346
  • 2021 (10) TMI 361
  • 2021 (10) TMI 345
  • 2021 (10) TMI 344
  • Benami Property

  • 2021 (10) TMI 343
  • Customs

  • 2021 (10) TMI 341
  • 2021 (10) TMI 342
  • Insolvency & Bankruptcy

  • 2021 (10) TMI 340
  • 2021 (10) TMI 339
  • 2021 (10) TMI 338
  • 2021 (10) TMI 337
  • Service Tax

  • 2021 (10) TMI 336
  • 2021 (10) TMI 335
  • 2021 (10) TMI 334
  • Central Excise

  • 2021 (10) TMI 333
  • CST, VAT & Sales Tax

  • 2021 (10) TMI 332
  • 2021 (10) TMI 331
  • Indian Laws

  • 2021 (10) TMI 330
  • 2021 (10) TMI 329
 

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