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TMI Updates - Newsletter dated: February 24, 2018

TMI SMS


Highlights

  1. Income Tax : Agreement between the Government of the Republic of India and the Government of the Republic of of Kenya for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes - Notification

  2. Income Tax : Selection of case of scrutiny assessment - validity of notice - Attainment of requirement u/s 143(2) - deemed service of notice - non-availability of the Assessee to receive the notice sent by registered post as many as on two occasions - decided in favor of revenue - SC

  3. Income Tax : Penalty u/s 271D - Even if, the Assessee has explained the identity, the source and genuineness of receipt in cash for the purpose of Section 68, would not by itself permit / allow a party to obtain loans in cash in breach of Section 269 SS of the Act. - HC

  4. Income Tax : Penalty u/s 271D - reasonable cause for violation of Section 269SS - when the Karta is dealing with the large amounts of cash. Lack of formal education cannot by itself be the conclusive of ignorance of the law, particularly in respect of men of business. - HC

  5. Income Tax : Addition u/s 40(a)(i) - TDS liability - bandwidth allocation by overseas service provider - fee for technical services - AO directed to examine the materials before him and call for additional expert or technical advice, as is necessary - HC

  6. Income Tax : Disallowance of excess claim of remuneration to the partners claimed - nature of income - interest on FDR - the interest on the FDR has direct nexus with the business activity of the assessee - no additions - Tri

  7. Income Tax : Applicability of section 33AB(7) - The provisions of section 33AB (7) uses the expression ‘being utilised’ - assessee had paid substantial portion of the proforma invoice value as advance before 31.3.2012 and had included the same in the utilization statement - action of the revenue in bringing to tax the deemed income in terms of section 33AB(7) deserves to be deleted - Tri

  8. Companies Law : The only requirement of Section 96 of the Act is holding of AGM of the company each year, which has been complied with. The manner in which the meeting has been conducted cannot be raised as a question before the Tribunal. - Tri

  9. Service Tax : Refund of service tax - rejection on the ground of time limitation - The authority examining the said claim is bound by the legal provisions of these Acts in discharging his duties. - Tri

  10. Service Tax : Validity of subsequent SCN - Intellectual Property Right Service - the Revenue having raised their earlier SCN was debarred from raising a subsequent SCN by invoking the larger period of limitation in respect of the said facts and circumstances - Tri

  11. Central Excise : Benefit of exemption - actual user condition - the naphtha supplied against competitive bidding was not entirely consumed for the manufacture of fertilizers by the RCF - for such failure, the manufacturer, where the goods were intended to be used is required to pay differential duty. - HC

  12. Central Excise : Refund claim - price variation clause - appellant entitled to refund of the excess duty paid due the deductions towards non achievement of GPF - Tri

  13. Central Excise : Rate of duty - effective date of correction through corrigendum notification - The question of retrospective effect of such correction cannot be equated with exercise of the power of the Parliament to make a law with retrospective effect. - HC

  14. Central Excise : Classification of goods - textile fabric combined with PU foam as textile fabric laminated with polyurethane foam - the product PVC leather cloth also known as rexine cloth has to be correctly classified under Chapter 59.03 - Tri

  15. Central Excise : CENVAT credit - input services credit in respect of premises, which is being leased out - the credit availed on payment of service tax can be utilized for discharge of central excise duty. - Tri

  16. VAT and Sales Tax : CST - stock transfer against form 'F' - The revenue has not produced any specific Rule prescribed for limitation for the said purpose and therefore, the separate ‘F’ Forms furnished by the petitioner assessee could not have been rejected on the ground of being filed belatedly. - HC

  17. VAT and Sales Tax : In respect of any suppressed turnover, which was not declared as part of the compounding proceedings, the benefit of the rate of tax applicable to compounding provision would not be applicable. - HC


Articles


Notifications


Circulars / Instructions / Orders


News - Feeds


Case Laws:

More information of case laws are visible to the Subscriber of a package i.e:-
Party Name, Court Name, Date of Decision, Full Text of Headnote, Decision etc.


  1. 2018 (2) TMI 1457

    Disallowance u/s 40(a)(ia) - payments to transport contractors without fulfilling the conditions laid down in sections 194(6) and 194(7) - assessee did not furnish in the prescribed format the details of those contractors where no TDS was made to the prescribed authority - Held that - We find that the assessee made payments to transport contractors amounting to ₹ 80,23,971/- whereas the assessee has provided the details and PAN only in resp....... + More


  2. 2018 (2) TMI 1458

    Disallowance u/s 43B - payment of employees contribution to Provident Fund and ESIC - Held that - The issue in appeal is squarely covered by the decision of the Hon ble Jurisdictional High Court Ghatge Patil Transport Ltd. 2014 (10) TMI 402 - BOMBAY HIGH COURT wherein held both employees and employer s contributions are covered under the amendment to Section 43B of I.T. Act - the Tribunal was right in holding that payments are subject to benefits....... + More


  3. 2018 (2) TMI 1459

    Disallowance of excess claim of remuneration to the partners claimed - nature of income - interest on FDR - Held that - There is not dispute that the business of the assessee dealing in food grains, oil seeds and pulses etc is a seasonal business depending upon crop seasons. Therefore, during the non harvesting season the assessee is not having much business activity and accordingly the funds which are otherwise required for the business activity....... + More


  4. 2018 (2) TMI 1473

    Reopening of assessment - eligibility to deduction u/s 10B - eligibility of reasons to believe - change of opinion - Held that - The assessment in question was framed without scrutiny when the assessee s return was accepted under section 143(1). AO had objections to the assessee s claim of deduction under section 10A of the Act. Similar claims made by the assessee for the assessment years 2009-2010 and 2011-2012 were not accepted by the Assessing....... + More


  5. 2018 (2) TMI 1474

    Selection of case of scrutiny assessment - validity of notice - Attainment of requirement u/s 143(2) - deemed service of notice - High Court 2012 (12) TMI 1148 - ALLAHABAD HIGH COURT answered the question in the negative taking the view that what is required to be satisfied by the Revenue is service of notice and not mere issuance thereof - Held that - The non-availability of the respondent Assessee to receive the notice sent by registered post a....... + More


  6. 2018 (2) TMI 1456

    Applicability of section 33AB(7) against the assessee - deemed income of the assessee - utilizing the withdrawals from NABARD deposit accounts 0 assessee s main business activity is cultivation of tea, manufacturing of tea from leaves procured from own garden as well as from bought leaves and also trading of tea - Held that - A provision for deduction, exemption or relief should be construed reasonably and in favour of the assessee. Though equity....... + More


  7. 2018 (2) TMI 1471

    Reopening of assessment - reasons to believe - Held that - AO in the reasons recorded, proceeded on the erroneous footing that the assessee had not filed return at all. The first premise for issuing the notice was thus factually incorrect. It is now not disputed by the Revenue that the assessee did file return of income for the year under consideration which was duly acknowledged by the Department. The entire reasoning thus proceeded on the wrong....... + More


  8. 2018 (2) TMI 1472

    Deemed dividend u/s 2(22)(e) - Held that - The Tribunal has taken a view rightly that a deemed dividend could only have been assessed in the hands of a person who is shareholder of the lender company and not in the hands of the borrowing concern in which such shareholder is a member or partner having substantial interest. Admittedly, in the present case the assessee-company was not a shareholder of the lender company. But, in this case both the l....... + More


  9. 2018 (2) TMI 1470

    Stay on demand - Held that - Though normally this Court will not interfere in writ jurisdiction against said interlocutory orders passed by the Appellate Authority, which is seized of the appeal before it, but in view of the peculiar facts and circumstances of the case and looking to the fact that the appeal itself is coming up for final hearing after its pre-ponement of date on 09.04.2018 itself, and on which date it is expected that the learned....... + More


  10. 2018 (2) TMI 1469

    Issue of taxability of the sale tax exemption benefit availed by assessee - Held that - At this stage of our dictation, Mr. Chhotaray interjected to mention that it should be Assessing Officer / Inspector and not Assessing Officer alone. This is contrary to what was stated to us during the hearing. In fact, we were categorically told by Mr. Chhotaray that he has met the Assessing Officer twice and he was informed by him that no order has been pas....... + More


  11. 2018 (2) TMI 1467

    Penalty u/s 271D - reasonable cause for violation of Section 269SS - Tribunal partly allowed the Appeal by restoring the issue of amounts received in cash from agriculturists to the Assessing Officer to verify whether the agriculturists were not having banking facilities so as to delete the penalty under Section 271 D - Held that - The law provides that the breach of Section 269 SS invites penalty under Section 271 D. The aforesaid breach has no ....... + More


  12. 2018 (2) TMI 1468

    Claim for written back of excess provision for bad and doubtful debts - Held that - If an allowance or deduction has been made in the assessment for any year in respect of loss, expenditure or trading liability and the same is written back in the books of accounts, the said written back expenditure, loss or trading liability shall be eligible to levy of tax as income. The burden lies on the Revenue to prove that the provision for bad and doubtful....... + More


  13. 2018 (2) TMI 1466

    Penalty u/s 271(1)(c) - Reopening of assessment - reason recorded for reopening of the assessment was the claim for donation under Section 35(1) - Held that - Held that - It is undisputed that when filing of return of income on 12 February 2008, consequent to reopening notice, the Respondent had not made a claim deduction of ₹ 1.00 Crore for donation, inspite of donation made to M/s. Indian Medical Scientific Research Foundation, Agra. The ....... + More


  14. 2018 (2) TMI 1464

    Addition u/s 68 - genuineness of the transaction and the creditworthiness of the parties - reassessment proceedings - Held that - The material on record in the form of the orders of the lower appellate authorities disclosed that both the assessee and later the share applicants (upon receiving notice under Section 131 of the Act) had produced documentary proof. These included the assessments and income-tax returns filed by the share applicants as ....... + More


  15. 2018 (2) TMI 1465

    Adjustment of refund against next assessment year - Held that - According to the counsel for the petitioner thus, after the adjustment for the refund of the earlier year, the deposit towards disputed tax liability for the current year would exceed 20%. Counsel for the Revenue do not dispute this factual assertion of the petitioner. BR BR In view of these developments, no further relief would be needed to enable the petitioner to enjoy the stay pe....... + More


  16. 2018 (2) TMI 1463

    Addition 41(1) - remission of liability - sum towards waiver of sales tax - Held that - The facts in this case are identical with that of the Sales Tax Deferral Scheme of the State of West Bengal in which the State had identically permitted the collection of sales tax but deferred the payment by 12 years. The assessee, like in the case of Sulzer India Limited (2014 (12) TMI 267 - BOMBAY HIGH COURT), approached for a pre-deposit, which was permitt....... + More


  17. 2018 (2) TMI 1462

    Additions made by the assessing authority on account of accrued interest on loans which are classified as Non-performing Assets - applicability of provisions of section 43D - Held that - When an asset becomes non-performing, it ceases to yield income and once a particular asset is shown to be a non performing asset, then it is nothing but no revenue is yielded. See Commissioner of Income-Tax and another Vs. Canfin Homes Limited (2011 (8) TMI 178 ....... + More


  18. 2018 (2) TMI 1461

    Addition u/s 40(a)(i) - TDS liability - bandwidth allocation by overseas service provider - fee for technical services - whether the charges paid by the assessee to the MCI WorldCom Asia P. Limited (a non-resident overseas Singapore based entity) ought to have been subjected to tax deduction? - income by way of amounts paid to the overseas entities or non-residents - Held that - In the present case the relevant provisions of the master service ag....... + More


  19. 2018 (2) TMI 1460

    Suppression of sales - differential price between the price of two flats sold to the sister concern and the price offered by third parties - Appellate Commissioner and Tribunal concurred in their factual finding that there had been no suppression of sales as the two flats were sold at a discount price, for business exigencies and in particular, to compensate SAPL, who had advanced interest free loan to the assessee - Held that - It is clear from ....... + More


  20. 2018 (2) TMI 1454

    Classification of imported goods - 0.1% Natural Brassinolide fertilizer - appellant claimed classification of the said goods under Heading 31010099 as other animal or vegetable fertilizer whether or not mixed together or chemically treated; fertilizer produced by the mixing or chemical treatment or animal or vegetable products - Revenue objected to the said classification and sought classification of the product under Heading 38089340 as plant gr....... + More


  21. 2018 (2) TMI 1452

    Comply with the arbitration award - Violation of the provisions of the Companies Act, 2013 - whether the Company can convert a loan into equity shares if at the time of raising the money, the company had not passed special resolution? - removal of the Petitioners as Directors - Held that - The arguments of the learned counsel for the Appellants is that this Section could not have been applied and if at all Section 81 of the Old Act would be relev....... + More


  22. 2018 (2) TMI 1451

    Manner of holding of 44th Annual General Meeting of the shareholders of the company - non compiling with the provisions of the Companies (Management and Administration) Rules, 2014 - oppression or mis-management - Held that - Filing of the instant petition is simply an abuse of the process of the Court and to harass the company and its management. Except the name of respondent No.5 Mr.Sudhir Avasthi, there is not even remote reference to the role....... + More


  23. 2018 (2) TMI 1475

    Transportation of Ready mix plaster - Prohibition to transport sand beyond border - It is the grievance of the Petitioners that though the vehicles were seized and taken to the Police Station, the Revenue authorities have not followed the procedure prescribed under sub-Section 8 of Section 48 of the Maharashtra Land Revenue Code, 1966. BR BR Held that - it is mandatory for the Revenue Officials to produce attached vehicles before the Collector wi....... + More


  24. 2018 (2) TMI 1450

    Whether the provisions of Limitation Act, especially Section 18 of the Act, which is invoked by the Trial Court, in this case, can be made applicable to the litigation which is governed by the provisions of the Carriage by Air Act, 1972? BR BR Held that - In the instant case, it is admitted that the Carriage by Air Act is a special enactment of the year 1972 and therefore later enactment to the general law of Limitation Act, which was enacted in ....... + More


  25. 2018 (2) TMI 1448

    Applicability of decision in the case Suresh Kumar Bansal and Others 2016 (6) TMI 192 - DELHI HIGH COURT - claim of Revenue is that impugned order is not legal and proper, inasmuch as the said judgment was not in rem , rather it was in-personnem - Construction services - Held that - the ld. Commissioner (Appeals) has taken the correct stand in deciding the appeals of the appellants - From the operative part of the impugned order, it transpires th....... + More


  26. 2018 (2) TMI 1447

    Refund of service tax - rejection on the ground of time limitation - Section 11 B of the Central Excise Act, 1944 - Held that - The statutory provisions contained in Section 11 B ibid provides the time limit of one year for filing the refund application - In this case, as per the explanation (B) (f) appended to Section 11 B, the relevant date should be reckoned from the date of payment of the Service Tax. Since, the refund application was filed b....... + More


  27. 2018 (2) TMI 1449

    Refund of unutilized CENVAT credit - input services - N/N. 17/2009- ST dated 07.07.2009 (as superseded by N/N. 52/2011-ST dated 30.12.2011) - Whether the CESTAT was right in not considering all the grounds of appeal raised before the appeal filed before it and passing order without considering them? BR BR Held that - We do not think how a factual conspectus, based on which the remand was directed, can be taken as a precedent for the purpose of th....... + More


  28. 2018 (2) TMI 1446

    Refund of service tax paid - input services - gardening services - Held that - in the permission granted by the Pollution control Board to appellant, there is no clause which requires the appellant to maintain a green belt of approximately 33% of the area for which they have sought permission for construction of Research and Development facility - refund allowed. BR BR Fencing of the land leased out by the appellant - Held that - the lower author....... + More


  29. 2018 (2) TMI 1445

    Validity of subsequent SCN - Intellectual Property Right Service - it was the contention of appellant that the Revenue having raised their earlier SCN was debarred from raising a subsequent SCN by invoking the larger period of limitation in respect of the said facts and circumstances - Held that - There is no dispute about the fact that in respect of the same set of proceedings, an earlier SCN was issued under a different category of services. Ho....... + More


  30. 2018 (2) TMI 1444

    GTA service - Benefit of N/N. 32/2004-ST, dated 03.12.2004 - appellant were discharging service tax liability on 25% of the total freight charges paid by them - Department took the view that notification exemption is not available to appellant as there was no evidence to show that the conditions of the notification were fulfilled - Held that - circular No.137/154/2008-CDA, dated 21.08.2008, clarifies that it is but evident that even for the past ....... + More


  31. 2018 (2) TMI 1443

    GTA service - Benefit of N/N. 32/2004-ST, dated 03.12.2004 - appellant were discharging service tax liability on 25% of the total freight charges paid by them - Department took the view that notification exemption is not available to appellant as there was no evidence to show that the conditions of the notification were fulfilled - Held that - circular No.137/154/2008-CDA, dated 21.08.2008, clarifies that it is but evident that even for the past ....... + More


  32. 2018 (2) TMI 1439

    Classification of goods - textile fabric combined with PU foam as textile fabric laminated with polyurethane foam - whether classified under CETH 5903 of CETA or under Chapter 39? - benefit of N/N. 29/2004-CE dated 9.7.2004 as amended by N/N. 10/2005-CE dated 1.3.2005? - Held that - It is stated in the Circular dated 13.12.1995 that the process of manufacturing PVC leather cloth involves coating of a paste of plastic material (PVC) on one side of....... + More


  33. 2018 (2) TMI 1440

    SSI Exemption - crossing of threshold limit - suppression of value - Department has received the information that the assessee-Appellants have already exhausted the SSI limit of ₹ 1 crore, but are preparing the bills/vouchers by showing the lower value by 25 to 50% - Held that - the sole case of the Department is based on the information generated from the computer - The assessee-Appellants have not maintained any register for the raw mater....... + More


  34. 2018 (2) TMI 1442

    Rate of duty - effective date of correction through corrigendum notification - Corrigenda issued by the Government of India dated 15th January 1997 and 21st September 2000 - original amendments were made through Budget in September 1996 by the Parliament, which eventually became the Finance Act of 1996. BR BR Held that - We do not have for a moment any doubt that all along what was presented before the Parliament, after the amendment in the Finan....... + More


  35. 2018 (2) TMI 1438

    Extended period of limitation - It is appellant s case that department was put to knowledge about manufacture on job work basis - Held that - apart from the raw materials supplied by M/s CPSML which were delivered through challans and accounted, the appellant was receiving raw materials from other sources like M/s Parthiv Spinning Mills without invoices which was unaccounted. Investigation revealed that appellant procured raw material in differen....... + More


  36. 2018 (2) TMI 1441

    Whether Hon ble Tribunal i.e. Respondent no.2 has erred by not appreciating legal position that in case of unreported compliance of stay order before Hon ble Tribunal appeal merits restoration of appeal? BR BR Held that - we are unable to understand the approach of the Tribunal. Eventually, Tribunals are set up to render substantial justice and not to defeat just and bonafide claims by hyper technical approach. Somehow or the other, we find that ....... + More


  37. 2018 (2) TMI 1436

    Clandestine removal - case of Revenue is that the respondents have maintained two sets of invoices in order to remove finished products without payment of duty - Held that - It is brought out from records that other than four numbers of invoices, no other double set of invoices were unearthed during the investigation. The statement of the buyers whose name is mentioned in the double set of invoices were recorded by the department. All of them hav....... + More


  38. 2018 (2) TMI 1437

    Clandestine removal - MS Ingots, CTD/TMT Bars and mis-rolls - Held that - Department officers visited the premises in December. The investigation continued for another two years as seen from statement of Sh.M.Seetharama Reddy which was recorded on 15.12.2005 and again on 25.4.2006. Still, the department has not made any investigation as to whether respondent had procured excess unaccounted inputs, or details of suppliers who have supplied unaccou....... + More


  39. 2018 (2) TMI 1455

    Benefit of exemption - actual user condition - Whether benefit of N/N. 6/2002-CE as amended or N/N. 6/2006-CE read with N/N. 21/2002-Cus dated 1st March, 2002 which was available to naphtha used in the manufacture of fertilizer , is available to the respondent for that quantity of naphtha which was manufactured and cleared by it to M/s. Rashtriya Chemicals and Fertilizers Ltd availing the benefits under the said notifications, but admittedly, not....... + More


  40. 2018 (2) TMI 1435

    Valuation - Appellant contested the show cause notice on the ground that the entire stock at the warehousing terminal at Ghatkesar Secunderabad was cleared from the terminal on payment of duty, while Revenue s case they should have discharged the duty liability i.e. 06.09.2004, on price prevailing on that day - Held that - identical issue decided in respondent own case HINDUSTAN PETROLEUM CORPORATION LTD. Versus CCE., VISAKHAPATNAM 2010 (4) TMI 9....... + More


  41. 2018 (2) TMI 1434

    Clandestine removal - Zinc - shortage of raw material - Held that - zinc was lying in the tank which is raw material - In the impugned order, there is no reference regarding the zinc which was lying in the tank. During the course of argument, it is submitted that six months before the computation of the raw material was also made where the element of the zinc was considered. When it is so, then we set aside the impugned order in this regard and r....... + More


  42. 2018 (2) TMI 1433

    CENVAT credit - input services credit in respect of premises, which is being leased out - The department was of the view that appellant has not used the input services, on which credit was availed, in or in relation to the manufacture of their finished products - Held that - The input credit whether availed on capital goods, inputs or input services is accounted in a common pool of credit. While utilising credit it is not necessary that there sho....... + More


  43. 2018 (2) TMI 1453

    Refund claim - price variation clause - Since the discharge of Central Excise Duty is based on the price variation clause the appellant sought permission for provisional assessment for payment of Central Excise Duty Said provision assessments were finalized and refund arose - rejection of refund on the ground of unjust enrichment - Held that - there is no dispute as to the facts the first appellate authorities order in all these appeals in Order-....... + More


  44. 2018 (2) TMI 1432

    Input Tax Credit - Section 10(3) of the KVAT Act, 2003 - demand raised relying upon the decision of this Court in the case of M/s.Kirloskar Electric Co. Ltd., & Ors. vs. The State of Karnataka & Ors. 2018 (2) TMI 524 - KARNATAKA HIGH COURT , where it was held that the machinery provisions cannot be allowed to override and defeat the substantive claim of the Input Tax Credits under Section 10(3) of the KVAT Act, 2003, which without any res....... + More


  45. 2018 (2) TMI 1431

    Demand on the ground that the assessee did not furnish the prescribed Form F declarations to prove that the transaction in question were branch transfers not attracting levy of CST - Held that - this Court is satisfied that Respondent Department itself failed to issue blank F Form declarations, allowing the petitioner in turn to furnish the same on monthly basis, as required under Rule 12(5) of CST Rules. The consolidated F Form for the entire ye....... + More


  46. 2018 (2) TMI 1430

    Entertainment Tax u/s 6- A(4) of Karnataka Entertainment Tax Act, 1958 - Bangalore Fashion Week organized and held by the petitioner in Hotel Crown Plaza on 03.02.2012 - case of petitioner is that the Event organized by the petitioner did not fall within the four corners of the definition of Entertainment as defined in Section 2(e)(iii) of the Act, 1958 as it was a Fashion Week, in which, the apparels and dresses of various manufacturers were put....... + More


  47. 2018 (2) TMI 1429

    Review of the judgment dated 10.08.2017 - Held that - the judgment under review was passed relying on that portion of the judgment of the Division Bench in Silver Line Villas & Apartments Pvt. Ltd v. State of Kerala 2016 (12) TMI 1695 - KERALA HIGH COURT , which took a stand that in respect of any suppressed turnover, which was not declared as part of the compounding proceedings, the benefit of the rate of tax applicable to compounding provis....... + More


 
 
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