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Home e-Newsletters Index Year 2021 February Day 4 - Thursday

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TMI Tax Updates - e-Newsletter
February 4, 2021

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy PMLA Service Tax Central Excise Indian Laws



Highlights / Catch Notes

  • Income Tax:

    Penalty u/s 271DA for violating the provisions of Section 269ST - Settlement Commission, under the proviso to Section 245F(2), with effect from 1st November, 2019 when the petitioner admittedly made the application under Section 245C before it, had the exclusive jurisdiction to deal with the matter relating to violation of Section 269ST of the Act also and the respondent, on 4th November, 2019 did not have the jurisdiction to impose penalty for violation of Section 269ST on the petitioner and the impugned order is without jurisdiction and liable to be set aside and is hereby quashed. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - failure to file the ITR - while filing a return an assessee is not bound or obliged to disclose any information in relation to any fact other than what is required to be supplied and furnished by him in the various columns of the prescribed form of return of income or which he is bound under the provisions of the Act to furnish even though that fact may otherwise be relevant for the purpose of his assessment. For the simple reason that such information has not been furnished in the return it would not mean that the assessee had failed or omitted to disclose fully and truly all material facts which are necessary for the purpose of his assessment. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - As examined the belief of the Assessing Officer to a limited extent to look into whether there was sufficient or any tangible materials available on the record for the Assessing Officer to form the reasonable belief and whether there was 'live link' existing of the material and the income chargeable to tax that escaped assessment. The case on hand is not one, where it can be argued that the Assessing Officer on absolutely vague or unspecific information, initiated the proceedings of re-assessment without taking pains to form his own belief in respect of such materials. - HC

  • Income Tax:

    Validity of Reopening of assessment u/s 147 - The entire basis for reopening the assessment is on the premise that there was a cash transaction of a huge amount, and having regard to the same, there was no true and full disclosure. We have already explained that this issue of cash transaction is nothing but a mere guess - There is no escapement of income chargeable to tax. - Notices quashed - HC

  • Income Tax:

    Penalty levied u/s 271(1)(c) - deferred tax asset written off debited in the profit and loss account as exceptional item but the same has not been disallowed in the computation of taxable income - In the instant case, the assessee had made an inadvertent computation error while filing its return of income and accordingly the same was accepted by them in the course of assessment. The assessee has not in any way taken any benefit by carrying forward a higher loss. - Penalty deleted - AT

  • Income Tax:

    Disallowance of weighted deduction claimed u/s 35(1)(ii) - approval granted to the donee organization was rescinded with retrospective effect - There is no conclusive evidence on record to show that the appellant company had received back the money from the donee made either in cash or any other or through banking channels. - The intent of the Legislature is clear that the donors should not be made suffer on account of fraud committed by the donee organization - AT

  • Income Tax:

    Miscellaneous application maintainability as filed beyond the limitation period as provided u/s 254(2) - where there is no provision for condonation of delay for filing of the miscellaneous application, then the miscellaneous application filed belatedly is not maintainable being barred by limitation provided under section 254(2) of the Act. - AT

  • Income Tax:

    Income accrued or deemed to accrues/arise in India - Permanent Establishment (PE) - While the Assessing Officer has proceeded on sweeping generalizations about the risks assumed by the PE but there is no specific FAR analysis which could support that the agent’s remuneration not being an arm’s length remuneration, and the Assessing Officer has proceeded on the basis that all the business risks of the assessee (i.e. the foreign company) are borne by the PE as PE is the content provider and responsible for up linking activity. That’s too sweeping a generalization to meet any judicial approval, and, on the same set of findings, the coordinate benches have disapproved the stand of the Assessing Officer. - AT

  • Customs:

    Refund of amount paid by the petitioner during the pendency of its appeal - duty paid under protest - unjust enrichment - amounts deposited in terms of Section 131 of the Customs Act, 1962 or Section 35N of the Central Excise Act, 1944 has to be refunded without insisting on such importer or manufacturer satisfying the requirement of “unjust enrichment” as in the case of pre deposit under Section 129E of the Customs Act, 1927/Section 35F of the Central Excise Act, 1944. - HC

  • Customs:

    Claim of interest on refund of amount deposited during the pendency of its appeal - The petitioner is not entitled to interest at 12% as was prayed by the petitioner. The petitioner is entitled to interest at the rates prevailing for refund under notifications issued from time to time under Section 129EE of the Customs Act, 1962 for refund of pre-deposit made under Section 129E - HC

  • Customs:

    Advance licence - advance licence had been obtained by misrepresentation or not - importing a different material than one permitted under the licence - violation of the conditions of licence or mis-utilization of the licence - The tribunal on the basis of meticulous appreciation of evidence on record has held that the respondent has not violated the conditions of exemption Notification and has discharged its export obligations. It has further been held that there has been no violation of actual user condition. - Order of tribunal confirmed - HC

  • Indian Laws:

    Non-payment of professional fee/retainership fee bills of empanelled lawyers - The fact that the Petitioner was forced to approach this Court is extremely unfortunate. Though the professional bills of the Petitioner are stated to have now been cleared, his retainership fee is still not being paid. Since there is no dispute on the factum that retainership fee is to be paid, this Court directs the GNCTD to clear the pending retainership payments to the Petitioner within one month from today. - HC

  • IBC:

    CIRP proceedings - Financial Creditors - Related party - while the default rule under the first proviso to Section 21(2) is that only those financial creditors that are related parties in praesenti would be debarred from the CoC, those related party financial creditors that cease to be related parties in order to circumvent the exclusion under the first proviso to Section 21(2), should also be considered as being covered by the exclusion thereunder. Mr Kaul has argued, correctly in our opinion, that if this interpretation is not given to the first proviso of Section 21(2), then a related party financial creditor can devise a mechanism to remove its label of a ‘related party’ before the Corporate Debtor undergoes CIRP, so as to be able to enter the CoC and influence its decision making at the cost of other financial creditors. - SC

  • Service Tax:

    Interpretation of statute - whether determination of service tax by the Central Excise Officer, is necessary before making a demand under Section 73A(3) of the Finance Act, 1994? - perusal of Section 73A(5) of the Act, it is evident that the assessment must precede the demand - HC

  • Service Tax:

    Taxability - supply of tangible good for use or not - tool kits provided by the appellant to associated companies - The submission of the appellant that tool kits were in possession of the associated companies with the right to use the kits to the exclusion of appellant and the appellant could also not have passed the right to any other person has not be controverterd in the impugned order nor has any material been provided by the Revenue - Demand set aside - AT

  • Central Excise:

    Valuation - clearance to sister unit - applicability of Rule 4 of the Valuation Rules or Rule 8 - the Ld. Commissioner, in his impugned order in para 3.8, while justifying the valuation adopted by him has clearly noted that both the goods which were cleared by the appellant to their sister unit as well as those cleared to independent buyers are the same - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (2) TMI 109
  • 2021 (2) TMI 108
  • Income Tax

  • 2021 (2) TMI 101
  • 2021 (2) TMI 100
  • 2021 (2) TMI 99
  • 2021 (2) TMI 98
  • 2021 (2) TMI 97
  • 2021 (2) TMI 96
  • 2021 (2) TMI 95
  • 2021 (2) TMI 80
  • 2021 (2) TMI 107
  • 2021 (2) TMI 106
  • 2021 (2) TMI 105
  • 2021 (2) TMI 104
  • 2021 (2) TMI 112
  • 2021 (2) TMI 103
  • 2021 (2) TMI 102
  • Customs

  • 2021 (2) TMI 94
  • 2021 (2) TMI 111
  • 2021 (2) TMI 93
  • Corporate Laws

  • 2021 (2) TMI 92
  • Insolvency & Bankruptcy

  • 2021 (2) TMI 90
  • 2021 (2) TMI 91
  • 2021 (2) TMI 89
  • 2021 (2) TMI 88
  • 2021 (2) TMI 87
  • 2021 (2) TMI 86
  • PMLA

  • 2021 (2) TMI 85
  • Service Tax

  • 2021 (2) TMI 83
  • 2021 (2) TMI 84
  • Central Excise

  • 2021 (2) TMI 82
  • 2021 (2) TMI 110
  • Indian Laws

  • 2021 (2) TMI 81
 

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