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Home e-Newsletters Index Year 2020 February Day 10 - Monday

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TMI Tax Updates - e-Newsletter
February 10, 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:

    GST registration of the petitioners blocked - failure to pay GST for long period - It is for the petitioners to take necessary steps to ensure that due tax amounts are paid, so that, the default in that regard is not for more than a period of two months as envisaged in clause (b) of Rule 138E(1) of the Rules.

  • GST:

    Release of detained goods alongwith the vehicle - The proceedings, as on date, are at the stage of show cause notice, under Section 130 of the Central Goods and Services Act, 2017. - It is now for the applicant to make good his case that the show cause notice, issued in GST-MOV-10, deserves to be discharged.

  • GST:

    Detention/ seizure of goods alongwith vehicle - goods already released - The proceedings, as on date, are at the stage of show cause notice, u/s 130 of the Central Goods and Services Act, 2017. The proceedings shall go ahead in accordance with law.

  • Income Tax:

    Exemption u/s 11 - cancellation of registration - Merely saying that the activities of the respondent is hit by the proviso to Section 2(15) of the Act, would not lead to automatic cancellation of registration as that is not a ground provided under Section 12AA(3) of the Act for cancellation of registration.

  • Income Tax:

    Exemption u/s 11 - cancellation of registration - Merely saying that the activities of the respondent is hit by the proviso to Section 2(15) of the Act, would not lead to automatic cancellation of registration as that is not a ground provided under Section 12AA(3) of the Act for cancellation of registration.

  • Income Tax:

    Disallowance of capital loss on account of capital reduction scheme - Extinguishment of rights in shares - definition of ‘transfer’ u/s 2(47) - Loss arising to the assessee for cancellation of its shares in CHIPL pursuant to reduction of capital should be allowed as long term capital loss eligible to be carried forward to subsequent years.

  • Income Tax:

    Disallowance of deduction u/s. 35ABB(2) - expenses on surrender of National Long Distance (NLD) license - the assessee was engaged in the business of providing telecom services and the losses incurred on account of surrender of NLD license would be in the normal course of business

  • Income Tax:

    Invalid approval obtained u/s 153D for assessment u/s 153A - Approval from Addl. CIT of the Range - So, when mandatory approval u/s 153D is not there, entire assessment made by the AO u/s 153A/143(3) is not sustainable as it is no approval in the eyes of law

  • Income Tax:

    Disallowance of interest - assessee had taken unsecured loans from the family members of the partners in the earlier years and paying interest @ 15% on the same - Fresh borrowing during the year from HDFC bank has been utilized for advancing to the partners and the family members and there is thus a direct nexus - it would have been appropriate to compare the related party transaction with an independent third party transaction carrying the same qualitative unsecured loan parameters.

  • Income Tax:

    Treatment of assessee as trust or AOP - the observations of taxability of trust and income being offered to tax in the hands of the beneficiary are all inter-dependent based on the outcome of the status of the assessee which we have already held to be taxed only in the status of trust and not as AOP.

  • Income Tax:

    Reopening of assessment u/s 147 - as no addition has been made on the reasons for which the assessment of the assessee is reopened, the other it issuance made by the learned assessing officer cannot be sustained

  • Income Tax:

    Computation of Exemption u/s 10(13A) for House Rent Allowance (HRA) - ‘performance bonus’ does not form part of ‘salary’ as defined in clause (h) of Rule 2A for the purposes of Section 10(13A) of the Income tax Act, 1961

  • Income Tax:

    In view of the second proviso to Section 153A(1), once assessment gets abated, it is open for the assessee to lodge a new claim in a proceeding under Section 153A(1) which was not claimed in his regular return of income, because assessment was never made/finalised in the case of the assessee in such a situation

  • Customs:

    Validity of assessment order - order for auditing u/s 17(6) by the proper officer - enhancement of value of imported goods - Commissioner (Appeal) could not have directed such an audit in terms of sub section (6) because audit as contemplated is the internal function of the revenue, for purpose of safeguarding the revenue, in case where re-assessment has been done by way of speaking order or otherwise

  • Service Tax:

    Business Support services - activity of purchasing space on ocean going vessels from shipping companies and selling the same to various exporters for export of goods - any amount charged for space on ocean going vessels, over and above the purchase price is not liable to service tax

  • Service Tax:

    The work relating to road construction, even in the premises of NTPC, which may be termed as private road is exempt service as per the definition of works contract service which specifically exempts ‘road service’. There is no distinction made out by the legislature with respect to public road and private road.

  • Service Tax:

    Reduction in the quantum of penalty imposed u/s 78 - Unless the penalty under Section 78 of the Act itself is leviable on the Assessee, there is no question of any reduction of the quantum of penalty to 25% thereof by the learned Tribunal in its discretion. What is not at all leviable, cannot be reduced.

  • Central Excise:

    Classification of goods - Nimbooz - fruit pulp or fruit juice based drink - packaged nimbu pani - the classification declared by the appellant under the Chapter sub-heading 2202 9020 is held to be correct and hence the Revenue is not justified in reclassifying ‘’Nimbooz’’ as ‘’Lemonade’’ under Chapter sub-Heading 2202 1020.

  • Central Excise:

    CENVAT credit - duty paying invoices - hand written serial numbers - The invoice should bear serial numbers, however, there is no mention in the rules that the invoice should bear Pre-printed Serial Numbers. Therefore, the invoice should be “Serially Numbered” irrespective, whether, it is hand written or Pre-printed.

  • Central Excise:

    Recovery and demand of duty from the purchaser of goods in auction - auction by the official liquidator of the manufacturing company - assessee is neither a manufacturer of excisable goods nor it has used purchased goods for manufacturing of other goods, no duty can be demanded under Section 11A(1) of the Act, 1994.

  • VAT:

    Input tax credit - levy of purchase tax - there is no scope for ambiguity. Input tax credit can be adjusted only for payment of tax under Section 3(2) and not under Section 12(1) of the Act. Purchase tax payable under Section 12(1) of the Act has to be paid in cash.

  • VAT:

    Withholding the refund of excess amount - In the absence of any assessment for the year 2011-2012 and more particularly, when the time period for completion of assessment is over as prescribed under the provisions of Section 34(9) and 34(10) of the Act, 2003, the respondents are not entitled to withhold the refund.

  • VAT:

    Attachment of Bank Accounts - The action on the part of the respondent no.4 in attaching the bank accounts of the writ­-applicant pending the appeals before the appellate authority is not justified.


Articles


Case Laws:

  • GST

  • 2020 (2) TMI 343
  • 2020 (2) TMI 342
  • 2020 (2) TMI 341
  • 2020 (2) TMI 340
  • 2020 (2) TMI 339
  • 2020 (2) TMI 338
  • 2020 (2) TMI 337
  • 2020 (2) TMI 336
  • Income Tax

  • 2020 (2) TMI 325
  • 2020 (2) TMI 324
  • 2020 (2) TMI 323
  • 2020 (2) TMI 322
  • 2020 (2) TMI 321
  • 2020 (2) TMI 307
  • 2020 (2) TMI 335
  • 2020 (2) TMI 334
  • 2020 (2) TMI 333
  • 2020 (2) TMI 332
  • 2020 (2) TMI 309
  • 2020 (2) TMI 320
  • 2020 (2) TMI 319
  • 2020 (2) TMI 318
  • 2020 (2) TMI 317
  • 2020 (2) TMI 331
  • 2020 (2) TMI 330
  • 2020 (2) TMI 316
  • 2020 (2) TMI 329
  • 2020 (2) TMI 328
  • 2020 (2) TMI 327
  • 2020 (2) TMI 326
  • 2020 (2) TMI 315
  • 2020 (2) TMI 314
  • 2020 (2) TMI 313
  • 2020 (2) TMI 312
  • 2020 (2) TMI 311
  • 2020 (2) TMI 310
  • Customs

  • 2020 (2) TMI 289
  • 2020 (2) TMI 284
  • Corporate Laws

  • 2020 (2) TMI 300
  • 2020 (2) TMI 295
  • Insolvency & Bankruptcy

  • 2020 (2) TMI 287
  • 2020 (2) TMI 286
  • Service Tax

  • 2020 (2) TMI 294
  • 2020 (2) TMI 292
  • 2020 (2) TMI 291
  • 2020 (2) TMI 304
  • 2020 (2) TMI 299
  • 2020 (2) TMI 285
  • 2020 (2) TMI 282
  • Central Excise

  • 2020 (2) TMI 293
  • 2020 (2) TMI 290
  • 2020 (2) TMI 306
  • 2020 (2) TMI 302
  • 2020 (2) TMI 288
  • 2020 (2) TMI 283
  • CST, VAT & Sales Tax

  • 2020 (2) TMI 305
  • 2020 (2) TMI 303
  • 2020 (2) TMI 301
  • 2020 (2) TMI 298
  • 2020 (2) TMI 297
  • 2020 (2) TMI 296
  • Indian Laws

  • 2020 (2) TMI 308
 

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