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Home e-Newsletters Index Year 2021 March Day 20 - Saturday

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TMI Tax Updates - e-Newsletter
March 20, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Seeking grant of Anticipatory Bail - illegal availment of ITC on GST, on the basis of forged invoices - other co-accused whose case was on similar footing was granted bail after his arrest and here in this case accused is coming for anticipatory bail while apprehending arrest from the department. Therefore, the ground of parity cannot be said to be applicable to the applicant on this application. - DSC

  • Income Tax:

    Allowable expenditure under Income Tax Act - opening balance in Service Tax Set Off Account (STA) made by the assessee - In fact, the Tribunal has taken into consideration as to how the CENVAT Scheme operates and granted relief to the assessee. The Tribunal has once again re-appreciated the factual position and found that the decision in M/s.NCS Distilleries P. Ltd., would fully apply to the case on hand - substantial questions of law are answered against the Revenue. - HC

  • Income Tax:

    Allowable revenue expenditure - expenditure towards computerization - as per revenue assessee has spent the same on networking of 125 branches with a centralized processing solution and the activity has a long term benefit, warranting capitalization of the expenditure spent for the same - tribunal has recorded the conclusion that the expenditure incurred by the assessee for computerization of its branches is revenue in nature - The order passed by the tribunal is cryptic in nature and suffers from vice of non application of mind - Matter remanded back - HC

  • Income Tax:

    Set off of brought forward of business loss against capital gain arising on sale of business asset used for the purpose of business - Section 72(1) of the Act employs the expression computation 'under the head profits and gains or profession', whereas, Section 72(1)(i) does not use the expression under the head. Thus, the legislature has consciously left it open that any income from business though classified under any other head can still be entitled to the benefit of set off. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - reasons to believe - Having regard to the material on record, we are of the view that the Assessing Officer has initiated the proceedings not only on the information received from the concerned department but based upon his independent satisfaction and other available material to form a belief with regard to the escape assessment of income - AO is justified in reopening the assessment of the assessee - HC

  • Income Tax:

    Disallowance of payment paid to the landlord towards the land expenses - Tribunal has merely relied upon certain clauses of the Joint Development Agreement which was entered into at the initial stage of the project. During the course of the project, there occurred many obstacles and hurdles and they were faced by the appellant and therefore, merely relying on the Joint Development Agreement, the Tribunal erred in law and facts, especially when the Tribunal has not doubted the genuineness of the expenditure incurred by the appellant. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - Addl. CIT who has given approval for such reopening has simply mentioned that “ yes, I am satisfied that this is a fit case for issue notice of u/s 148 of I.T. Act”. A perusal of the approval given by the Addl. CIT shows that he has not applied his mind properly and has in a mechanical manner given his approval - Reassessment proceedings initiated by the AO are not as per law and has to be quashed. - AT

  • Income Tax:

    Addition u/s.68 of the Act on account of share capital and share premium - In the absence of any business activity of a company, which was closed since 2007, we fail to appreciate as to how all the corporate investors coming exclusively from Mumbai and Kolkata would join and invest in the shares of such a company, and that too at a premium of 300% of the face value, which had no running business and further there were no returns on such investment. - AT

  • Income Tax:

    Income from house property - ALV determination - AO has though adopted the rate of rent as it was agreed upon between the parties in respect of property in the vicinity however, the assessee did not give the opportunity to the assessee to present its case against such adoption of the annual letting value. The Assessing Officer has also not taken the facts which might have influenced the fair market rental value of the property being the difference in the locality of the properties, the area let out advantage and disadvantage if any attached to the properties - Matter restored back - AT

  • Income Tax:

    Unexplained deposits made in Bank Account - Whether the amount represents receipt from transport business and taxable u/s 44AE - Held No - This claim could have been merited acceptance if the assessee had shown the list of persons and their confirmations etc. for whom he did the transportation business and the resultant transportation receipts. No such evidence has been placed on record. - Additions confirmed - AT

  • Income Tax:

    Validity of reopening of assessment u/s 147 - under-reporting of capital gains - where the relevant facts have been overlooked and has not taken cognizance of, resulting in escapement of chargeable income, such omission would not constitute ‘change of opinion’. In the absence of any other contention, we do not see any merit in the plea of assessee towards wrongful usurpation of jurisdiction u/s 147 - AT

  • Income Tax:

    Deduction u/s 35(2AB) - expenditure incurred on R&D centre - AO held that in the absence of Form 3CL, such deduction is not allowable - the assessee should not be shorned of the legal right bestowed upon by the provisions of the Income Tax Act. The revenue may disallow the claim of the asseseee if it can prove that the claim of the assessee is wrong after obtaining the report in Form 3CL from the concerned authority. - AT

  • Customs:

    Seeking release of seized consignment - Section 110 (2) read with the proviso thereto - SCN not issued within six month and further extension of six month sought - The intimation of extension should have been brought to the knowledge of the petitioner on or before 05.09.2020, accompanied by the reasons recorded for the extension. However, by virtue of the relaxation ordinance, such time stands extended to 30.09.2020. However, and admittedly, the intimation has been received by the petitioner only on 07.10.2020, beyond the date stipulated in the proviso to Section 110(2) and the reasons for extension have also not been supplied. - Goods directed to be released - HC

  • Customs:

    Refund of SAD - sales during pre-GST period - Sale of goods at NIL / Exempted rate of VAT - both the authorities have wrongly relied upon the decision of the Apex Court which was in respect of Notification No. 34/1998-Cus. dated 13.06.1998. Further I find that the said Notification 34/1998 has been subsequently rescinded by Notification 58/1998-Cus. dated 01.08.1998. Therefore, reliance by both the parties on a Notification which has been rescinded is not tenable in law. - AT

  • Central Excise:

    Method of Valuation - assessable value adopted for payment of duty is lower than the actual cost of manufacture of said products - there is no flow back of additional consideration - The Apex Court taking note of the fact that when there was no additional consideration and the goods were cleared to independent buyers, upheld the valuation adopted by the assessee under Section 4(1)(a). - Demand set aside - AT


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Case Laws:

  • GST

  • 2021 (3) TMI 750
  • 2021 (3) TMI 749
  • 2021 (3) TMI 709
  • 2021 (3) TMI 745
  • Income Tax

  • 2021 (3) TMI 732
  • 2021 (3) TMI 731
  • 2021 (3) TMI 728
  • 2021 (3) TMI 725
  • 2021 (3) TMI 724
  • 2021 (3) TMI 723
  • 2021 (3) TMI 722
  • 2021 (3) TMI 721
  • 2021 (3) TMI 720
  • 2021 (3) TMI 719
  • 2021 (3) TMI 717
  • 2021 (3) TMI 715
  • 2021 (3) TMI 747
  • 2021 (3) TMI 746
  • 2021 (3) TMI 714
  • 2021 (3) TMI 744
  • 2021 (3) TMI 743
  • 2021 (3) TMI 741
  • 2021 (3) TMI 738
  • 2021 (3) TMI 737
  • 2021 (3) TMI 712
  • 2021 (3) TMI 736
  • 2021 (3) TMI 735
  • 2021 (3) TMI 711
  • 2021 (3) TMI 710
  • Customs

  • 2021 (3) TMI 729
  • 2021 (3) TMI 726
  • 2021 (3) TMI 716
  • 2021 (3) TMI 742
  • 2021 (3) TMI 740
  • 2021 (3) TMI 733
  • Insolvency & Bankruptcy

  • 2021 (3) TMI 718
  • 2021 (3) TMI 748
  • PMLA

  • 2021 (3) TMI 753
  • Service Tax

  • 2021 (3) TMI 713
  • Central Excise

  • 2021 (3) TMI 730
  • 2021 (3) TMI 727
  • 2021 (3) TMI 734
  • Indian Laws

  • 2021 (3) TMI 752
  • 2021 (3) TMI 751
  • 2021 (3) TMI 739
 

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