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Home e-Newsletters Index Year 2020 December Day 16 - Wednesday

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TMI Tax Updates - e-Newsletter
December 16, 2020

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Confiscation of goods alongwith the vehicle - Extension of validity of E-way bill - the conveyance carrying the vehicles reached the place of destination on 1.1.2019 before the expiry of the validity of the e-way bills but the vehicles could not be unloaded on the same day and were being unloaded on 2.1.2019 - he failure to consider the petitioner’s case in the light of the provisions of Rule 138[10] of the Central Goods and Services Tax Rules, 2017 has resulted in an improper and untenable order. - HC

  • Income Tax:

    Disallowance of Forex loss pertaining to reinstatement of outstanding balance of External Commercial Borrowing (ECB) loan - the necessary adjustments should be made to the actual cost of assets on account of loss consequent to foreign currency fluctuation rate as there is no dispute that ECB loans are utilized for the purpose of acquisition of asset in India. - AT

  • Income Tax:

    Validity of reopening of assessment - time limit for issue of notice u/s. 143(2) has not expired and regular assessment could have been made - the assessing officer jumped the queue and issued notice under section 148 of the Act within the time limit available to issue notice under section 143(2) of the Act and such action of the assessing officer is not acceptable - AT

  • Income Tax:

    Addition on the account of errors and omissions - assessee declared additional income on the basis of notings made on loose papers during the survey action - there was evidence against the assessee in earning the said additional income and the arguments of that without there being any adverse material the addition made by the AO is invalid, in our view is not acceptable. - AT

  • Income Tax:

    Hawala purchases - Addition on the basis of alleged statement given to sales tax department - assessee has done purchases from grey market. In our considered opinion 12.5% disallowance in this case would meet the end of justice. We direct accordingly. - On similar reasoning we disallow 12.5% of the labour expenditure in this regard. - AT

  • Income Tax:

    Penalty u/s. 271F - assessee failed to file his return of income within the time prescribed u/s. 139(1) - The reasons referred to the assessee being an agriculturist and illiterate; facing financial and family problems; under the impression that gain arising from sale of any agricultural land not chargeable to tax. - the case gets covered u/s. 273B of the Act. As such, we order to delete the penalty - AT

  • Income Tax:

    Penalty u/s 271(1)(c) - when the assessee has not brought on record any evidence to prove the genuineness of the share premium and has also miserably failed to establish on record that there is neither any concealment or furnishing of inaccurate particulars of income, imposition of penalty under section 271(1)(c) of the Act, in our view, is justified - AT

  • Income Tax:

    TP Adjustments - TPO held that the value of shares of RC determined at the time of investment by IVC represents the best possible estimate of the market value of the share of RC and this represents the value of shares held by the assessee in RC at the time of transfer - Reasoning given by the TPO is legally sustainable, reflects not only the factual position, but also the manner in which the PE funds are managed worldwide as to how they conduct detailed due diligence before making the investment, because the investment is with a sole intention of making a profit. Therefore, we find that the decision of the DRP in granting 10% risk adjustment allowance is perverse and without any analysis of the factual position which has been rightly brought out by the TPO in his order. - HC

  • Income Tax:

    Capital gain tax - Transfer of shares by assessee to its wholly owned subsidiary - transfer of shares by way of alleged gift - the transaction is a circular transaction and is a measure adopted to avoid tax. The TPO in his order has done an analysis as to how there is a loss in real income and loss of revenue by shifting profits outside the country - The authorities below have dealt with the same elaborately, but unfortunately, the Tribunal did not venture to examine the correctness of such finding and in our considered view, the Tribunal failed to examine the factual matrix despite being the last authority to render findings of fact - HC

  • Customs:

    Applicability of the time period (limitation) to claim refund of Special Additional Duty (SAD) - Merely because Section 27 of the Customs Act provides for a period of limitation for filing refund claim, it cannot be held that even for the purposes of claiming refund in terms of the Notification, the same limitation has to be applied. The Hon’ble Delhi High Court has also held that in the maters which deal with substantive rights, such as imposition of penalties and other provisions that adversely affect statutory rights, the parent enactment must clearly impose such obligations; subordinate legislation or rules cannot prevail or be made, in such case - AT

  • Service Tax:

    Classification of services - employee of the parent company, Nektar USA, was sent to India on a secondment to work as a full time Managing Director of the Indian company - reimbursement of salary paid to the ‘secondee’, to the parent company, Nektar USA - manpower recruitment and supply agency services or not - Held No - Demand of service tax set aside - AT

  • Central Excise:

    Interest on delayed refund of pre-deposit - Relevant date for calculation of refund - The adjudicating authority is directed to grant interest from the date of deposit till the date of grant of refund @12% per annum. Such interest on refund should be granted within a period of sixty (60) days from the date of receipt of service or a copy of this order. - AT

  • Central Excise:

    Method of Valuation - wall putty in packages of 40kg - MRP based value to transaction value - As the appellant had cleared wall putty in packages of 40 kg, the provisions of rule 6 contained in Chapter II of the Rules will not apply and if this be so, the provisions of section 4A of the Excise Act under which the value of goods is deemed to be the retail sale price declared on such goods, would not be applicable. - AT

  • Central Excise:

    Reward to the informer - Duty evasion - Directions to the respondents to constitute a committee so as to consider the case of the petitioner in a time-bound period - The representation will be decided by the concerned respondent authorities in accordance with law, rules, regulations and Government policies applicable to the facts of the case and on the basis of materials on record, as expeditiously as possible and practicable.- HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2020 (12) TMI 528
  • Income Tax

  • 2020 (12) TMI 527
  • 2020 (12) TMI 517
  • 2020 (12) TMI 516
  • 2020 (12) TMI 501
  • 2020 (12) TMI 499
  • 2020 (12) TMI 498
  • 2020 (12) TMI 497
  • 2020 (12) TMI 496
  • 2020 (12) TMI 495
  • 2020 (12) TMI 494
  • 2020 (12) TMI 493
  • 2020 (12) TMI 490
  • 2020 (12) TMI 526
  • 2020 (12) TMI 525
  • 2020 (12) TMI 524
  • 2020 (12) TMI 523
  • 2020 (12) TMI 522
  • 2020 (12) TMI 521
  • 2020 (12) TMI 520
  • 2020 (12) TMI 519
  • Customs

  • 2020 (12) TMI 515
  • 2020 (12) TMI 503
  • Corporate Laws

  • 2020 (12) TMI 500
  • Insolvency & Bankruptcy

  • 2020 (12) TMI 492
  • 2020 (12) TMI 491
  • 2020 (12) TMI 518
  • Service Tax

  • 2020 (12) TMI 505
  • 2020 (12) TMI 513
  • Central Excise

  • 2020 (12) TMI 504
  • 2020 (12) TMI 514
  • 2020 (12) TMI 502
  • CST, VAT & Sales Tax

  • 2020 (12) TMI 512
  • Indian Laws

  • 2020 (12) TMI 511
  • 2020 (12) TMI 510
  • 2020 (12) TMI 509
  • 2020 (12) TMI 508
  • 2020 (12) TMI 507
  • 2020 (12) TMI 506
 

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