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Home e-Newsletters Index Year 2020 December Day 29 - Tuesday

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TMI Tax Updates - e-Newsletter
December 29, 2020

Case Laws in this Newsletter:

GST Income Tax Insolvency & Bankruptcy Service Tax Central Excise CST, VAT & Sales Tax Wealth tax Indian Laws



Highlights / Catch Notes

  • GST:

    ACTIVITIES OR TRANSACTIONS TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES - Amendment to Paragraph 4 comes into effect w.e.f. 1.1.2021 - SCHEDULE 02 [Section 7] of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Punishment for certain offences. - Amendment to sub-section (1) comes into effect w.e.f 1.1.2021 - Section 132 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Penalty for certain offences. - Amendments as new sub-section (1A) comes into effect w.e.f. 1.1.2021 - Section 122 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Tax deduction at source. - Amendment to sub-section (3) and (4) comes into effect w.e.f. 1.1.2021 - Section 51 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Tax invoice - Amendment to sub-section (2) comes into effect w.e.f 1.1.2021 - Section 31 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Revocation of cancellation of registration. - Power to Extend the Time limit for revocation of cancellation of registration - Amendment to sub-section (1) comes into effect w.e.f 1.1.2021 - Section 30 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Cancellation or suspension of registration. - Amendment to sub-section (1)(c) comes into effect w.e.f 1.1.2021 - Section 29 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Eligibility and conditions for taking input tax credit - Amendment to sub-section (4) comes into effect w.e.f 1.1.2021 - Section 16 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Composition levy. - Amendment to sub-section (2) extending scope of restriction comes into effect w.e.f. 1.1.2021 - Section 10 of the CENTRAL GOODS AND SERVICES TAX ACT, 2017

  • GST:

    Exemption from GST - supply of, services viz. execution of the civil works of Pazhassi small hydro electric project - The Kerala State Electricity Board Ltd falls under the category of a Government entity for the purpose of the said exemption - The supply of services viz. execution of the civil works of Pazhassi small hydro electric project covered under Work order made by the appellant to the Kerala State Electricity Board Ltd are not eligible to concessional rate of CGST @6% and SGST @6% - AAAR

  • Income Tax:

    Additions u/s 40A(3) - Purchase payments in cash in contravention to the provisions of section 40 A(3) - the assessee is merely facilitator and intermediary in the transaction and his receipts assessable to tax constitute the margin between the price obtained and further paid but not the entire receipts which stands further passed on to the two ticketing agencies, we hereby hold that the provisions u/ s 40A(3 ) are not attracted. - AT

  • Income Tax:

    Unexplained cash credit u/s 68 r/w section 115BBE - Bogus purchase and sale - The assessee has recorded the entries of sales and purchase in its books of account and has duly disclosed the items of sales and purchase in the profit & loss account and has duly disclosed the profit earned on the trading in the profit & loss account and has offered the same as business income. The assessee has furnished as much information as possible to justify its claim about the transactions of cloth being genuine. - Additions deleted - AT

  • Income Tax:

    Exemption u/s 11 - whether the assessee is to be treated as a “charitable institution”? - Running a Hospital / Medical institution - generating huge profit - The equipments require higher lay out of the capital, and therefore in order to remain in competition with the hospitals, and to provide best facility to the patients, and to provide medical help, the assessee has to upgrade its investigative tools. - Rates considered by the AO are not relevant rates for determining higher range of profit in the hands of the assessee. - AT

  • Income Tax:

    Validity of notice - Reopening of assessment u/s 147 - In the present case, there is an in advertent error in the notice issued by the AO reflecting only the PAN column of the notice mentions PAN of the “HUF” instead of the ‘individual’ whereas the body of the notice and the address shows that the notice is clearly meant for the assessee himself - On going through the Reasons recorded, the address on the notice, the body of the notice issue of notice, we hold that the notice of the Assessing Officer wherein there is a mistake only in the PAN number, the notice is covered by the provisions of Section 292B. - AT

  • Income Tax:

    Reopening of assessment u/s 147 - non independent application of mind by AO - Borrowed satisfaction - A.O. has reopened the assessment solely on the basis of information received of the ADIT (Investigation) and without forming an independent opinion and there cannot be any reassessment for verification and without satisfying the requisite condition under the law. - AT

  • Income Tax:

    Depreciation on computer software - Because software contained in a disk is tangible property by itself. Since the taxpayer’s ownership of limited right over the computer software purchased from Oracle by making payment of license fee is a tangible assets, it is entitled for depreciation @ 60% as per definition of “Plant” - AT

  • Income Tax:

    Income from other sources as per Section 56(2)(vii) - fair market value of bonus shares - any profit derived by the assessee on account of receipt of bonus shares is adjusted by depreciation in the value of equity shares held by him. In the instant case, there is no material on record to infer that bonus shares have been transferred with an intention to evade tax, which is the object of the provision in question. - when there is an issue of bonus shares, the money remains with the company and nothing comes to the shareholders as there is no transfer of the property and the provisions of Section under Section 56(2)(vii)(c) of the Act are not attracted to the fact situation of the case. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - Material, which was already placed on record, and considered in earlier two rounds of litigation can hardly be a reason to reopen the assessment and all that we can say is that the attempt of the Department is to reopen a settled issue solely based upon change of opinion. The Department is silent and has not disclosed as to what is the tangible material, which is now available with them more than those that were available with the Department in the earlier two rounds of litigation. - No hesitation to hold that the reopening of assessment is without jurisdiction, bad in law and liable to be set aside and consequently, the same is set aside. - HC

  • Income Tax:

    Computation of capital gain - Cost of acquisition - They brought the property to sale through Bank - The contention of the assessee was that the amount was paid directly to the loan account of the company with the bank. The assessee had not received any consideration and therefore there was no capital gain arising out of the above sale. However, the Assessing Officer rejected the contention of the assessee - Order of ITAT confirming the action of AO upheld - HC

  • Income Tax:

    Rectification application u/s 254 - Admissibility and consider the additional evidence furnished by the appellant - as the appellant had admittedly filed an application for admission of additional evidence in terms of Rule 29 of the ITAT Rules prior to the date of final hearing, it was incumbent upon the Tribunal to consider the said application before proceeding ahead with the final hearing. - HC

  • Income Tax:

    Validity of order u/s 144C - Failure to pass a draft assessment order u/s 144C(1) - This Court is of the view that till the Income Tax Department ensures that the Assessing Officers follow the mandate of law, in particular, binding provisions like Section 144C and eschew filing of unnecessary appeals rather than in nearly all matters where the Assessing Officer has taken a view against the Assessee, the assessments will not achieve finality for a number of years like in the present case where the case of assessment year 2007-08 stands remanded and restored to the file of the Assessing Officer. - Revenue appeal dismissed with cost - HC

  • Income Tax:

    TP adjustment - The TPO has not given any reason as to why he altered the aggregate amount of Net profit. Hence the workings made by TPO is liable to rejected. We have noticed that the net profit margin worked out by the assessee in "Domestic - Personal care division" was 12.31%. The net profit margin worked out for "Exports to AEs" was 24.03%. Hence the net profit margin earned in the exports to AEs division is higher than its comparable "Domestic - Personal care division". Hence it has to be held that the international transactions of making exports to AEs are at arms length and hence no T.P adjustment is called for. - AT

  • Income Tax:

    TP Adjustment - determination of Arms Length Price by TPO - MAM selection - No tax can be levied without the authority of law as mandated by Article 265 of the Constitution of India. Similarly, the exchequer should not be deprived from its legitimate tax due. In our view, the assessee would not be prejudiced in setting-aside proceeding, if they have merit in their favour. - AT

  • Income Tax:

    Addition u/s 68 - increase in share capital and share premium - As source of source is proved by the assessee in the instant case though the same is not required to be done by the assessee as per law as it stood/ applicable in this assessment year. The share applicant has confirmed the share application as well as the payments made to the assessee company, which are duly corroborated with their respective bank statements and all the payments are by account payee cheques. - no addition was warranted under Section 68 - AT

  • Indian Laws:

    Dishonor of Cheque - insufficiency of funds - Petitioner borrowed the money from the advocate (respondent) - when there is a specific bar for doing money lending business that too with his own client, the act of the respondent is amount to professional misconduct. Therefore, the entire proceedings initiated as against the petitioner is nothing but clear abuse of process of law and the complaint itself is liable to be quashed. - HC

  • Service Tax:

    Demand of Service Tax - Merger / Demerger of units - ven if it is assumed that BAS was provided, then too only Abhijeet Ltd. and Corporate Ltd. were liable to pay service tax and not the Power Plants and Sponge Iron Plants, which constituted “the Demerged Undertakings” and which alone stood merged with the Appellant. Even in such a situation, it is doubtful whether the Appellant could be held to be liable for discharge service tax liability of the “Demerged Undertakings”. - AT

  • Service Tax:

    Refund of services tax - input services received by the unit of the appellant established in SEZ - refund rejected for alleged non-compliance of several conditions - The substantive benefit of service tax exemption provided under section 26 of the SEZ Act read with rule 31 of the SEZ Rules cannot be denied on procedural grounds. It is not in dispute that the appellant was not required to deposit service tax under the notification dated May 20, 2009, but service tax was deposited. It cannot be urged that the appellant is not entitled to claim refund because of a mistake in depositing service tax even if it was not required to be deposited. - AT

  • Central Excise:

    Valuation - inclusion of Freight charges in the assessable value - place of removal - Merely, because the payment of transit insurance has been made by the appellant would not mean that the place of removal would be the place of the buyer - the payment of transit insurance by the appellant is not a decisive factor for determining the place of removal. - AT

  • VAT:

    Refund of excess tax paid - The Assessing Officer committed a serious error in providing for adjustment of the excess tax against the demands for the later years. - The portion of the order dated 16th December, 2015 passed by the Assessing Officer providing for adjustment of the excess tax to be adjusted for future assessment is set aside. However, if by virtue of the operation of the said order for any future liability such excess tax or any part thereof is already adjusted, the question of refund at this stage will not arise - HC


Articles


Notifications


News


Case Laws:

  • GST

  • 2020 (12) TMI 1087
  • Income Tax

  • 2020 (12) TMI 1086
  • 2020 (12) TMI 1073
  • 2020 (12) TMI 1072
  • 2020 (12) TMI 1085
  • 2020 (12) TMI 1084
  • 2020 (12) TMI 1071
  • 2020 (12) TMI 1083
  • 2020 (12) TMI 1082
  • 2020 (12) TMI 1070
  • 2020 (12) TMI 1068
  • 2020 (12) TMI 1081
  • 2020 (12) TMI 1079
  • 2020 (12) TMI 1067
  • 2020 (12) TMI 1066
  • 2020 (12) TMI 1065
  • 2020 (12) TMI 1064
  • 2020 (12) TMI 1078
  • 2020 (12) TMI 1063
  • 2020 (12) TMI 1062
  • 2020 (12) TMI 1061
  • 2020 (12) TMI 1060
  • 2020 (12) TMI 1058
  • 2020 (12) TMI 1057
  • 2020 (12) TMI 1051
  • 2020 (12) TMI 1050
  • Insolvency & Bankruptcy

  • 2020 (12) TMI 1054
  • 2020 (12) TMI 1053
  • 2020 (12) TMI 1052
  • Service Tax

  • 2020 (12) TMI 1069
  • 2020 (12) TMI 1055
  • Central Excise

  • 2020 (12) TMI 1056
  • CST, VAT & Sales Tax

  • 2020 (12) TMI 1080
  • Wealth tax

  • 2020 (12) TMI 1059
  • Indian Laws

  • 2020 (12) TMI 1077
  • 2020 (12) TMI 1076
  • 2020 (12) TMI 1075
  • 2020 (12) TMI 1074
 

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