Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Tax Updates - TMI e-Newsletters

Home e-Newsletters Index Year 2019 March Day 15 - Friday

TMI e-Newsletters FAQ
Login to see detailed Newsletter

TMI Tax Updates - e-Newsletter
March 15, 2019

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Classification of goods - Rate of GST - Since, “tips and balls of pens” are definitively not considered as part of “Pen holders, pencil holders and similar holders” they are to be classified under 9608 99 90: Others, under HSN 9608 and are to be taxed accordingly.

  • GST:

    Levy of IGST - process of appointing CDI Virtual Films Inc.(CDIVF) as a Line Producer in Brazil - Reverse charge mechanism - The transaction between CDIVF and the Applicant is, therefore, import of service and constitutes an inter-State supply within the meaning of section 7(4) of the IGST Act, 2017, and the Applicant is liable to pay IGST

  • Income Tax:

    Proceeding in case of non-operational/ dissolved / struck off company - HC dismissed the appeal filed by Department - non consideration of Section 506(5) proviso (a) of the Companies Act and Section 176 to 178 (discontinuance of business or dissolution) - matter restored before the HC

  • Income Tax:

    Validity of the reopening of the assessment - when that income which was the foundation on which he based his belief of escapement of income is absent /disappeared then the AO’s very usurpation of jurisdiction is on non-existing jurisdictional fact which renders his usurpation of jurisdiction to reopen the assessment legally untenable and so null in the eyes of law.

  • Income Tax:

    If an Indian national [legal person], enters into any international transactions with its Associated Enterprises, will it not be subjected to transfer pricing proceedings? The answer is “YES”

  • Income Tax:

    Addition u/s 41(1) - non verification of static sundry creditors for several years - if said liability exists in books of assessee, and has not been written off unilaterally or by other party or AO not been able to bring on record any documents to establish that said sum has been remission or cessation of liability then provisions of section 41 (1) is not applicable.

  • Income Tax:

    Interest income - Correct head of income - income from other sources OR income from business - if interest income earned by the assessee is not incidental to the business activity of the assessee but on loans in the market for earning the interest intentionally and deliberately then it is income from other sources and not the business income.

  • Income Tax:

    Bogus purchases - it is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases.

  • Income Tax:

    Attachment orders - to declare transfers to be void - If the declaration of nullity and voidity under Section 281(1) is automatic, then there is no necessity for the Law Makers to empower the Income Tax Officer to pass an order of attachment under Rule 48 prohibiting all transfers and the creation of charge on the properties.

  • Income Tax:

    Attachment orders - Mortgagee right of recovery vs Income tax dept. right of recovery - in the light of the fact that the mortgage was created by the assessee much before a demand was made under Rule 2 and even before an order of assessment was passed and in the light of the fact that before the stage of issue of a certificate of recovery, the voidity u/s 281 (1) is not automatic, the petitioner-bank deserves to succeed.

  • Income Tax:

    Capital gain computation - Determination of the FMV as on 1.4.1981 - reference to DVO - amendment made vide finance act 2012 u/s 55A, wherein the word “is less than its fair market value” is substituted by the word “is at variance with fair market value”, will applies prospectively.

  • Income Tax:

    Claim of deduction u/s 54/54F - claim for two units - two residential units constructed by the Developer for the Assessee is “a” (one) residential house only - Board having accepted all the decisions wherein courts have interpreted that the word “a” qualifies residential house and not the quantum/number of houses, for all years prior to the amendment by Finance Act, 2014 deduction/benefit is available on multiple houses.

  • Income Tax:

    Disallowance u/s.14A - recording of satisfaction - detailed discussion in order regarding investment in various schemes of mutual funds and question regarding no expenditure is attributable to such activities - it is clearly discernible that the AO recorded proper satisfaction before making disallowance u/s. 14A.

  • Income Tax:

    Unexplained expenditure - alleged excess payments to landlords - Department has not found anything to show that the landlords actually received the payments - The additions can be made only based on actual evidence and not based on presumptions - In the absence of any evidence, addition was deleted.

  • Income Tax:

    Admission of Settlement Commission applications u/s 245(D)(1) - Pr. CIT submitted a report u/s 245D(2B) nowhere directly or indirectly indicated that the income disclosed by the petitioner is not full and true - Admission of application should be based upon report of the Pr. CIT not on the basis of material and evidences on record contemplated u/s 245D(4)- decided in favour of assessee

  • Income Tax:

    Revision u/s 263 - Confirmation of loan not bearing address - no inquiries/verification, regarding creditworthiness of the lender and genuineness - neither bank statement of lender nor Return or balance sheet are filed - it is clear that the assessment order was passed without verification, application of mind, consequently, it is erroneous as well as prejudicial to the interest of the Revenue

  • Income Tax:

    Valuation of share by TPO - need to consider market risk premium with illiquidity discount, adjustment of goodwill, foreign exchange rate etc. in correct manner before rejecting Valuation of share made by assessee by independent valuer.

  • Income Tax:

    share premium - income from other sources - Section 56(2)(viib) of the Act which seeks to tax amount received in excess of fair market value of shares only applies from Assessment Year 2013-14. Hence, share premium is not taxable in AY 2012-13.

  • Income Tax:

    Disallowance of prior period expenses - merely debited expenditure in Profit and Loss account during year is not sufficient to claim expenditure pertaining to this year unless prove that this expenditure has crystallised during the year - If assessee proved that the liability was determined and crystallised during the year it will be allowable other wise it is disallowable.

  • Income Tax:

    Enhancement of income by CIT(A) - Treating agricultural income as taxable income - CIT(A) had no power to assess the source of income which had not been taken into consideration by the assessing officer.

  • Income Tax:

    Addition u/s 68 - assessee submitted all the necessary details in support of the share applicant and share premium receipt - The A.O. has not pointed out any defect in the documents - Even no notice u/s. 133(6) was issued to the share applicant to verify identity, genuineness and creditworthiness of the share applicant - In such cases Addition u/s 68 is not sustainable.

  • Service Tax:

    Utilization of cenvat credit on various input services for payment of output service tax liability for BAS - he scheme of one to one co-relation has been done away with, under the Cenvat Credit Rules, 2004. - SCN is misconceived and not maintainable

  • Service Tax:

    Real Estate Agent Service - Transfer charges for transfer the allotment of property - these transfer charges have not collected by the assessee as Real Estate Agent, therefore, no service tax is payable by the assessee on the transfer charges

  • Service Tax:

    Refund claim - time limitation - it is admitted fact that the appellant is not liable to pay service tax on the said activity. Therefore, time limit prescribed under Section 11B of the Central Excise Act,1944 is not applicable to the facts of this case.

  • Central Excise:

    CENVAT credit - input services is admissible so far as input services have been used directly or in directly, in or in relation to the manufacture of final product even if the term setting up has been deleted from the inclusive portion of the definition.

  • Central Excise:

    Manufacture of "pipes" and "pipe fittings" - benefit of exemption is admissible only to "pipes" and not to "pipe fittings"


Articles


Notifications


Circulars / Instructions / Orders


Case Laws:

  • GST

  • 2019 (3) TMI 705
  • 2019 (3) TMI 704
  • Income Tax

  • 2019 (3) TMI 703
  • 2019 (3) TMI 700
  • 2019 (3) TMI 699
  • 2019 (3) TMI 698
  • 2019 (3) TMI 697
  • 2019 (3) TMI 696
  • 2019 (3) TMI 695
  • 2019 (3) TMI 694
  • 2019 (3) TMI 693
  • 2019 (3) TMI 679
  • 2019 (3) TMI 692
  • 2019 (3) TMI 691
  • 2019 (3) TMI 690
  • 2019 (3) TMI 689
  • 2019 (3) TMI 688
  • 2019 (3) TMI 687
  • 2019 (3) TMI 686
  • 2019 (3) TMI 678
  • 2019 (3) TMI 677
  • 2019 (3) TMI 676
  • 2019 (3) TMI 685
  • 2019 (3) TMI 684
  • 2019 (3) TMI 702
  • 2019 (3) TMI 683
  • 2019 (3) TMI 682
  • 2019 (3) TMI 681
  • 2019 (3) TMI 680
  • 2019 (3) TMI 701
  • Customs

  • 2019 (3) TMI 674
  • Corporate Laws

  • 2019 (3) TMI 673
  • Insolvency & Bankruptcy

  • 2019 (3) TMI 657
  • Service Tax

  • 2019 (3) TMI 672
  • 2019 (3) TMI 671
  • 2019 (3) TMI 670
  • 2019 (3) TMI 669
  • 2019 (3) TMI 668
  • Central Excise

  • 2019 (3) TMI 667
  • 2019 (3) TMI 666
  • 2019 (3) TMI 665
  • 2019 (3) TMI 664
  • 2019 (3) TMI 663
  • 2019 (3) TMI 662
  • 2019 (3) TMI 661
  • 2019 (3) TMI 660
  • CST, VAT & Sales Tax

  • 2019 (3) TMI 659
  • Wealth tax

  • 2019 (3) TMI 658
  • Indian Laws

  • 2019 (3) TMI 675
 

Quick Updates:Latest Updates