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Home e-Newsletters Index Year 2021 February Day 27 - Saturday

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TMI Tax Updates - e-Newsletter
February 27, 2021

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:

    Notice/summons issued by the Central Tax Authority whereas adjudication u/s 74 had been made by the State Authority - the initiation of the proceeding for imposition of tax and penalty was with the issuance of the notice under Section 74 as contained in Chapter XV of UPGST Act and the inquiry under Section 70 of the Act was independent - - It goes without saying that all issues being raised by the petitioner herein including the issue of non-service of notice before passing the order u/s 74 shall have to be adjudicated by the appellate authority without being influenced by any of the observations made. - HC

  • Income Tax:

    Whether the assessee is right in contending that the assessee's case was selected for a limited scrutiny and the reference to the TPO was beyond the scope of the scrutiny? - We also agree and endorse the finding rendered by the learned Single Bench that the reason for selection of scrutiny by CASS was only for numerical reconciliation is a over simplification of the reason stated for selection. In fact, the learned Single Bench has observed that the officer might have been more detailed in the choice of words employed so as to specifically refer to the issue of total employee cost, however, non-reference to this, is not fatal, as the reason for selection by CASS has been produced and placed on record by the officer while seeking approval of a Principal Commissioner of Income Tax (PCIT) for reference to the TPO. - HC

  • Income Tax:

    TDS - Payments to non-resident sportsmen or sports associations - Obligation to withhold tax on payments made to IML for grant of commercial rights under the 'Marketing and Advertising Agreement ' - There was no requirement to ascertain that the amount paid under section 115BBA was chargeable to tax or not. Even if it was not chargeable it did not absolve the Applicant from the liability to deduct TDS under section 194E. This obligation was neither affected by the DTAA nor by the Notification issued by the CBDT as the benefit of the DTAA or the Notification could have been claimed only by the IML and not by the Applicant. - AAR

  • Income Tax:

    Income accrued or deemed to accrue in India - marketing and advertising rights that have been granted under the MAA [Marketing and Advertising Agreement'] - rights under MAA - source of income was the game of cricket played in India - In the absence of any permanent establishment of the payee in India, is not chargeable to tax in India. Therefore, the payment made by the Applicant to IML for grant of commercial rights under MAA is not taxable in India as per the provisions of the DTAA between India and Mauritius. - AAR

  • Income Tax:

    Addition of inflated expenditure - We do not agree with the procedure adopted by the Tribunal and without examining the fact situation, the Tribunal ought not to have granted relief especially when the assessee could not reconcile the difference before either the Assessing Officer or the CIT(A). - HC

  • Income Tax:

    Addition towards on-money - addition u/s.68 towards on-money received by the assessee for sale of flats - we direct the ld. AO to add only 12% of on-money receipts as undisclosed income of the assessee for the year under consideration. - AT

  • Income Tax:

    Taxability of receipts from the welfare trusts - the said receipt being the unutilized portions, received back from the welfare trusts by the assessee company would not partake the character of a revenue receipt constituting income and would merely have to be treated as a windfall or non-recurring receipt not liable to tax, though not exempted under specific provisions of the Act. - AT

  • Income Tax:

    Additions u/s 69C - unexplained expenditure - the provisions of section 69C of the Act, will apply but consequent loss is to be set-off against this income. As regards to applicability of section 115BBE of the Act, as clarified by the CBDT as provisions brought out by the Finance Act, 2016 in the statute book w.e.f. 01.04.2017, the same is prospective and not retrospective. - AT

  • Income Tax:

    Nature of expenditure - compensation to the Forest Department on account of the decision of Hon'ble Supreme Court - The AO admitted this fact that the amount paid was not for acquiring the new asset. - The said expenses are liable to be treated to be paid for business expenses.- AT

  • Income Tax:

    Penalty u/s 234E - delay in filling of TDS return - Contention of the AR that since the TDS statement pertains to the period i.e for the financial year 2013-14(1st quarter) even though the same has been filed in the year 2017, the Assessing officer is not empowered to levy late filing fees under section 234E unable to be accepted as we find that at the time of processing of the TDS statement i.e. on 14.10.2017, the Assessing officer was empowered to levy such late filing fees, there is no provision to make a distinction between the TDS statements pertaining to period prior to 01.6.2015 and post such period - AT

  • Income Tax:

    Condonation of delay in filing the present appeal by 515 days - The assessee has not received any notice for hearing of the appeal as well as the order passed by the CIT(A). - However, as soon as assessee came to know of subsequent penalty order being passed against it, it consulted its Counsel and basis his advice, the present appeal has been filed though with a delay of 515 day - there is no culpable negligence or malafide on the part of the assessee in delayed filing of the present appeal and it does not stand to benefit by resorting to such delay more so considering the fact that it has applied for settlement of present dispute and payment of appropriate taxes. - AT

  • Income Tax:

    Penalty u/s.271(1)(c) OR 271AAA - unexplained cash deposits - the rate of penalty @ 200% is contemplated only u/s.271(1)(c) of the Act and not u/s.271AAA of the Act. It is elementary that the provisions of Section 271AAA and Explanation 5A to Section 271(1)(c) are distinct and separate and totally operate on two independent fields for different assessment years containing different provisions altogether. - AT

  • Customs:

    Confiscation of imported goods - Old/Used Analogue Photocopiers and Old/Used Digital Multi functional (Print and Copying) Machines - DGFT notification No.31/2005 dated 19.10.2005 uses the expression “photocopier machines” and therefore, there is no warrant to read the expression appearing in the DGFT notification as conforming to any one particular expression used in the Tariff as these expressions are not identical and no Tariff item is mentioned in the DGFT notification. - The Tribunal rightly rejected the case of the appellant - HC

  • Customs:

    Benefits under Merchandise Exports from India Scheme (MEIS) - product of vitrified tiles exported to Sri Lanka - What has been pleaded all through out by the petitioner is of lack of knowledge of subsequent public notices which had included Sri Lanka as a country for seeking the reward under the MEIS and entire procedure having been simplified, instead of getting the declaration produced for the purpose of the reward, the ticking of N/Y would suffice in case of the EDI. The ticking itself had been made equivalent to such declaration - Benefit directed to be granted to the petitioner - HC

  • Indian Laws:

    Seeking grant of Anticipatory Bail - allegation of Receipt of Monthly Bribe - Tax officers - The complicity of the petitioners herein as alleged would be revealed and fortified only with further investigation, for which as a necessary corollary custodial interrogation of the petitioners would be required - In the case in hand, there has to be a deviation from normal rule of bail rather than jail, since the allegations and prima facie investigation revealed that there was evasion of tax at a very large-scale and officials were being paid bribes on a monthly basis. The investigation is at a very nascent stage regarding the role of the petitioners herein. The petitioners are also persons of influence and would be in a position to scuttle a proper investigation. - Bail cannot be granted - HC

  • IBC:

    Initiation of CIRP - existence of dispute - the dispute that is sought to be shown is a creation as an afterthought to escape from the responsibility of making good the operational debt - It stands to reason that the Operational Creditor Inspired Traveller should not be made victim of the unresolved issues of accounts reconciliation between Group M and Katalist View paper Pvt. Ltd. This dispute has no relevance to the provision of services or its quality by Inspired Traveller and, therefore, it is not a dispute as covered under Section 5(6) of IBC. - AT

  • Service Tax:

    SVLDRS - The scheme talks about quantification of the tax dues and not communication thereof. The quantification having been done vide letter dated 15.06.2019, receipt of copy thereof whether email or physical becomes immaterial. It is the date of quantification which is relevant because in this case the quantification has been done by the authority. - HC

  • Service Tax:

    Classification of services - Manpower Recruitment or Supply Agency Service or not - it can be seen that the control and supervision of the staff / qualified personnel supplied to the premises of the client (ABN AMRO Bank) is with the appellant (contractor) only. Though certain personnel are supplied to the premises of the client for carrying out work / job of the client, it cannot be said that the activity would fall under MRSA. - AT

  • Central Excise:

    Validity of Direction of the Tribunal to issue fresh SCN - demand beyond the scope of  original SCN - the appeal was filed by the assessee and not the Revenue. The Revenue did not prefer any cross appeal/objection. Therefore, the assessee cannot be worse off in its own appeal before the Tribunal. - the Department can never proceed beyond such allegation and if done so, it would be wholly without jurisdiction. - HC

  • VAT:

    Recovery of Tax - Attachment and auction of property - Right of buyer of property in Auction - the dues as claimed by the respondent no.2, being a charge on the property, under Section 37(1) of MVAT Act, 2002, and the property having stood attached by the respondent no.2, before the auction, the petitioner, would be liable to pay the same to the respondent no.2, in order to obtain a clear and marketable title to the property, having purchased the same on 'As is where is and whatever there is basis'. In case the petitioner discharges the aforesaid dues of the respondent no.2, it would then be entitled to a no dues certificate from the respondent no.2 - the petitioner is not entitled to the reliefs as claimed in the petition. - HC

  • VAT:

    Validity of attachment order passed before the expiry of period of filing of an appeal - submission of the revenue to the effect that the entire tax becomes payable immediately upon dismissed of an appeal by the first appellate authority thus, appears to be misconceived - HC


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (2) TMI 1125
  • 2021 (2) TMI 1124
  • 2021 (2) TMI 1121
  • 2021 (2) TMI 1120
  • 2021 (2) TMI 1119
  • 2021 (2) TMI 1117
  • 2021 (2) TMI 1097
  • Income Tax

  • 2021 (2) TMI 1095
  • 2021 (2) TMI 1092
  • 2021 (2) TMI 1127
  • 2021 (2) TMI 1091
  • 2021 (2) TMI 1089
  • 2021 (2) TMI 1107
  • 2021 (2) TMI 1087
  • 2021 (2) TMI 1086
  • 2021 (2) TMI 1085
  • 2021 (2) TMI 1113
  • 2021 (2) TMI 1112
  • 2021 (2) TMI 1111
  • 2021 (2) TMI 1110
  • 2021 (2) TMI 1084
  • 2021 (2) TMI 1083
  • 2021 (2) TMI 1106
  • 2021 (2) TMI 1082
  • 2021 (2) TMI 1081
  • 2021 (2) TMI 1080
  • 2021 (2) TMI 1079
  • 2021 (2) TMI 1103
  • 2021 (2) TMI 1077
  • 2021 (2) TMI 1063
  • 2021 (2) TMI 1076
  • 2021 (2) TMI 1075
  • 2021 (2) TMI 1074
  • 2021 (2) TMI 1073
  • 2021 (2) TMI 1072
  • 2021 (2) TMI 1071
  • 2021 (2) TMI 1070
  • 2021 (2) TMI 1069
  • 2021 (2) TMI 1068
  • 2021 (2) TMI 1067
  • 2021 (2) TMI 1066
  • 2021 (2) TMI 1065
  • 2021 (2) TMI 1064
  • 2021 (2) TMI 1126
  • Customs

  • 2021 (2) TMI 1109
  • 2021 (2) TMI 1101
  • 2021 (2) TMI 1100
  • Corporate Laws

  • 2021 (2) TMI 1088
  • Insolvency & Bankruptcy

  • 2021 (2) TMI 1096
  • 2021 (2) TMI 1094
  • 2021 (2) TMI 1090
  • Service Tax

  • 2021 (2) TMI 1093
  • 2021 (2) TMI 1122
  • 2021 (2) TMI 1118
  • 2021 (2) TMI 1078
  • 2021 (2) TMI 1099
  • Central Excise

  • 2021 (2) TMI 1123
  • 2021 (2) TMI 1114
  • 2021 (2) TMI 1104
  • 2021 (2) TMI 1102
  • CST, VAT & Sales Tax

  • 2021 (2) TMI 1115
  • 2021 (2) TMI 1105
  • 2021 (2) TMI 1098
  • Indian Laws

  • 2021 (2) TMI 1116
  • 2021 (2) TMI 1108
 

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