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Home e-Newsletters Index Year 2022 November Day 9 - Wednesday

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TMI Tax Updates - e-Newsletter
November 9, 2022

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy Service Tax Central Excise Indian Laws



Highlights / Catch Notes

  • GST:

    Validity of Show Cause notice - SCN issued to driver - Seeking release of goods - This Court is of the considered opinion that the petitioner was not given adequate opportunity. The petitioner has not received the show cause notice. The show cause notice was issued to the driver is not adequate. Therefore, the impugned order is liable to be set aside. - HC

  • GST:

    Seeking release of goods - Expired E-Way bill - The statements made at para-11 of the counter affidavit by the respondent regarding the mismatch in the quantity of goods with the Invoices are not substantiated by the physical verification report issued by the department in Form GST MOV- 04 (Annexure-7). The impugned action has entailed penalty without due consideration of the plea raised by the petitioner and without proper application of mind. - Matter restored back - HC

  • GST:

    Eligibility of avail ITC - Works contract services - input services - Housing society - The society itself is not works contract service provider, nor it is in the business of providing works contract services. The works contract services received by society, from appointed contractor, are for the common benefit of the members. Hence, the Society's contention that they are providing works contract services to their members, and hence, eligible for the ITC of the tax paid to their appointed contractor can't be agreed to. - AAAR

  • GST:

    Classification of goods - CRP Test Kit - Hb1Ac Test Kit - The impugned product CRP Test kit is based on mice anti- CRP antibody / mice antisera and thus covered under Chapter 30.02 as it is specifically excluded from Chapter 38.22. - The said product, CRP Test Kit, will attract GST at the rate of 5% - AAAR

  • GST:

    Classification of goods - CNG dispenser - can be construed as “pump” or otherwise - Since the impugned product, CNG Dispenser, does not use any external force driven by any electrical or mechanical devices, the same cannot be considered as pump in terms of its meaning provided under the explanatory note - AAAR

  • Income Tax:

    Penalty u/s 271(1)(c) - when facts are disclosed in a return and are misstated, the raising of a legal plea of the exemption cannot make the return a false return within the meaning of Section 43(1). - IT has not committed any error while deleting the penalty - HC

  • Income Tax:

    Scope of of Sections 44BB(1) and 44BB(2) - computation of the ‘presumptive taxable income’ - the amount reimbursed to the assessee (service provider) by the ONGC (service recipient), representing the service tax paid earlier by the assessee to the Government of India, would not form part of the aggregate amount referred to in Clauses (a) and (b) of sub-section (2) of Section 44 BB. - HC

  • Income Tax:

    Disallowance of Advertisement expenses u/s. 37 - the assessee had treated the aforesaid expenses as capital work in progress - advertisement expenses were almost 4 times the turnover of the assessee in the first year of operations - the advertisement expenditure claimed by the assessee as revenue expenditure in the revised return of income is, allowable - AT

  • Income Tax:

    Depreciation on goodwill - zero asset shown in the books - The contention of the Ld. DR that it has zero asset shown in the books of CRAZY NETWORK appears to be incorrect when the 5000 subscriber has entered into the partnership firm through CRAZY NETWORK which has added as assets to the partnership firm's assets. AO was not right in disallowing the claim of the assessee relating to depreciation on goodwill. - AT

  • Income Tax:

    Denial of credit of tax deducted at source - Income not offered to tax - The Appellant has placed on record, separate ledger account maintained showing receipts from NHAI and corresponding payments to sub-contractors - Accordingly, AO is directed verify that the receipts and deducibility of the corresponding payments reflected in the aforesaid ledger account during the relevant assessment year, and thereafter, allow the claim of credit of tax deducted at source by NHAI - AT

  • Income Tax:

    Nature of Interest Income - The nexus between the deposits and business compulsions should decide the head of income under which the interest income is assessable. Accordingly, the AO may examine this issue afresh after affording adequate opportunity of being heard to the assessee. - AT

  • Income Tax:

    Addition u/s 68 - assessee has shown its return of income u/s 44AD - it is undisputed fact that the assessee had not maintained books of account that is why he opted for 8% income as per section 44AD - The section also does not put obligation on the assessee to maintain books of account, more so, in view of the fact that his income has been assessed as per section 44AD he cannot be punished for not maintaining the same. - AT

  • Income Tax:

    Revision u/s 263 by CIT - Capital gain computation - the out of 100 % sales consideration 95.36 % is offered as capital gain and the claim of the assessee is less than 5 % of the total consideration in this case, thus, what more AO can find fault when he has already disallowed the cost which in his opinion is not supported and thus AO has already verified the issues which the PCIT is pointing out - Order of AO restored - AT

  • Income Tax:

    Addition u/s 69C r.w.s.115BBE - Payment of credit card by cash as a unexplained expenditure - Without establishing conclusively, a section like 69C falling under the head Income from Other Sources and that is to, a deeming section, no adverse inference can be drawn against the assessee. We found the order of AO and Ld. CIT(A) are based on conjunction and surmises. - AT

  • Income Tax:

    Weighted deduction u/s 35(1)(ii) - bogus donations - the donors in connivance with various brokers, entry operators, donees etc. misued the benefit conferred u/s 35(1)(ii) of the Act by undertaking bogus donations. - the assessee has adopted the unfair means to take the benefit under the garb of Section 35(1)(ii) - Additions confirmed - AT

  • Income Tax:

    MAT - computation of book profits u/s. 115JB - provision for foreseeable losses - it could be seen that even on merits, the provision made for foreseeable losses would only be an ascertained liability and hence, it does not fall under any of the items listed in Explanation 1 to Section 115JB (2) of the Act warranting addition thereon. - AT

  • Income Tax:

    Bogus share transaction - A.O has done his duty by issuing summons and has done detailed examination of the facts and circumstances of the case. However, the assessee-company has not submitted any documentary evidences for ascertaining whether the transactions were genuine or not and neither have established through any materials/documents that the share subscription money received were not bogus or that they were not name-lending entries - Additions confirmed - AT

  • Customs:

    DFIA - Denial of exemption from Basic Customs Duty under Transferrable Duty Free Import Authorisation (DFIA) - Such beneficial DFIA scheme which is intended for export promotion, cannot be construed in such manner as suggested by the petitioner. Such recourse would be ex facie erroneous and illegal. - Neither the officers nor any Transferee of a transferrable DFIA issued by the office of DGFT can be subjected to any of the impediments as suggested by the petitioner in the garb of public interest. - HC

  • Customs:

    Misdeclaration of imported goods - Aluminium Extrusion Scrap (Tread) - It appears that the said goods is used material therefore, the same can be classified as aluminium scrap however, only a prima facie view is drawn on the nature of the goods at this stage as the classification of goods attained finality with the assessment of bill of entry and the same was not challenged - the redemption fine and penalty imposed by the lower authorities are very excessive and the same deserves to be reduced. - AT

  • Customs:

    Rejection of refund claim - the payment of anti dumping duty is not due to assessment or reassessment of Bills of entry but merely by a letter from the department, therefore there is nothing in the bills of entry to challenge. Even the amount collected thru a letter by the department was also not adjudicated by due process of law such as issuance of show cause notice and adjudication thereof - Refund allowed - AT

  • Indian Laws:

    Election of the office bearers of the Regional Council of ICSI - There is a distinction between the absence and the post fallen vacant. Regulation 92(2) shall be applicable in a case where the Chairman and/or the office bearer though is not disqualified but is absent for some reason. - , in case of a vacation of office as per Regulation 117(2), such post fallen vacant is required to be filled in by election by electing another person from amongst its members to hold the office for the remaining period of a year (Regulation 119(2)) - SC

  • Indian Laws:

    Dishonor of Cheque - vicarious liability of the non-signing partners - It is settled that in terms of explanation of Section 141 of the NI Act, the expression “company” would mean any body corporate and includes a firm or other association of individuals. Sub-section 1 of Section 141 postulates that where an offence is committed under Section 138 by a company, the company as well as every person who, at the time when the offence was committed, was in charge of and was responsible to the company for the conduct of the business shall be deemed to be guilty of the offence - HC

  • IBC:

    Initiation of CIRP - Cheque was dishonoured - If the application under Section 7 of the Code could be filed only when the default occurs and the date of default is conspicuous by its absence in the pleadings of the Appellant, dishonour of the cheque, as alleged by the Appellant, could not be taken as the date of default. - AT

  • IBC:

    Approval of Resolution Plan - Non-payment of full provident fund amount to the workmen and employees and the gratuity payment till the insolvency commencement date amounts to non-compliance of provisions of Section 30(2)(e) of the Code. However, in the facts of the present case - All other parts of the Resolution Plan have not been found to infirm in any manner, there are no case for interfering with the order approving the Resolution Plan - AT

  • Service Tax:

    Withholding the refund of security deposit with the state government towards service tax - Revenue submitted that, Post GST service tax was not applicable and that no demand of service tax has ever been raised by the concerned department. - Consequently, the retention of the aforesaid security money deposited by the petitioner is per se not justified. - HC

  • Central Excise:

    CENVAT Credit - Credit disallowed alleging that these services are consumed in the Mumbai office. It is not in dispute that the Mumbai office is an integral part of the business of the appellant and is doing the administrative work in respect of the appellant’s factory. For this reason, the credit availed by the appellant on Housekeeping Services at their Mumbai office is eligible. - AT

  • Central Excise:

    Refund of CENVAT Credit reversed under protest - The factual matrix would be that the issue was in dispute and the appellant was disputing the amount alleged to be payable by them. The letters issued by the appellant every month intimating the reversal as well as reserving their right for litigation would show that the credit has been reversed under protest. - The allegation that the refund claim is hit by time-bar cannot sustain - Refund allowed - AT

  • Central Excise:

    Conversion of 100% EOU to normal DTA Unit - work in process / semi-finished goods at the time of debonding of EOU - at the intermediate stage when the goods are not fully manufactured, the excise duty was not payable at the time of debonding, particularly when the goods were not cleared from the factory and were in the process of manufacturing. - AT


Articles


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Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (11) TMI 394
  • 2022 (11) TMI 393
  • 2022 (11) TMI 392
  • 2022 (11) TMI 390
  • 2022 (11) TMI 389
  • 2022 (11) TMI 388
  • 2022 (11) TMI 391
  • Income Tax

  • 2022 (11) TMI 387
  • 2022 (11) TMI 383
  • 2022 (11) TMI 382
  • 2022 (11) TMI 381
  • 2022 (11) TMI 380
  • 2022 (11) TMI 379
  • 2022 (11) TMI 378
  • 2022 (11) TMI 386
  • 2022 (11) TMI 385
  • 2022 (11) TMI 377
  • 2022 (11) TMI 384
  • 2022 (11) TMI 376
  • 2022 (11) TMI 375
  • 2022 (11) TMI 374
  • 2022 (11) TMI 373
  • 2022 (11) TMI 372
  • 2022 (11) TMI 371
  • 2022 (11) TMI 370
  • 2022 (11) TMI 369
  • 2022 (11) TMI 368
  • 2022 (11) TMI 367
  • 2022 (11) TMI 366
  • 2022 (11) TMI 365
  • 2022 (11) TMI 364
  • 2022 (11) TMI 363
  • 2022 (11) TMI 362
  • 2022 (11) TMI 361
  • 2022 (11) TMI 360
  • 2022 (11) TMI 359
  • 2022 (11) TMI 358
  • 2022 (11) TMI 357
  • 2022 (11) TMI 356
  • 2022 (11) TMI 355
  • 2022 (11) TMI 354
  • 2022 (11) TMI 331
  • Customs

  • 2022 (11) TMI 353
  • 2022 (11) TMI 352
  • 2022 (11) TMI 351
  • Corporate Laws

  • 2022 (11) TMI 350
  • 2022 (11) TMI 349
  • Insolvency & Bankruptcy

  • 2022 (11) TMI 348
  • 2022 (11) TMI 347
  • 2022 (11) TMI 346
  • 2022 (11) TMI 332
  • 2022 (11) TMI 345
  • Service Tax

  • 2022 (11) TMI 343
  • 2022 (11) TMI 342
  • 2022 (11) TMI 340
  • 2022 (11) TMI 341
  • 2022 (11) TMI 339
  • 2022 (11) TMI 344
  • Central Excise

  • 2022 (11) TMI 338
  • 2022 (11) TMI 337
  • 2022 (11) TMI 336
  • 2022 (11) TMI 335
  • Indian Laws

  • 2022 (11) TMI 334
  • 2022 (11) TMI 333
 

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