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 2022 March Day 23 - Wednesday

TMI e-Newsletters FAQ
Login to see detailed Newsletter

TMI Tax Updates - e-Newsletter
March 23, 2022

Case Laws in this Newsletter:

GST Income Tax Customs Insolvency & Bankruptcy FEMA Central Excise CST, VAT & Sales Tax Indian Laws



Highlights / Catch Notes

  • GST:

    Grant of anticipatory bail - applicant has cooperated to the fullest extent by submitting reply to the notice/summons issued to him - the personal liberty guaranteed under Article 21 of the Constitution of India is a fundamental right and in every case, arrest is not necessary. Under Section 438 Cr.P.C., where the implication of a person is for a non-bailable offence, he can apply for anticipatory bail. If the applicant cooperates with the inquiry, there is no requirement of his arrest. - HC

  • GST:

    Blocking of input tax credit - Provisional ITC - the ITC reversal mechanism, as laid down in section 41 read with Rules, is kept in abeyance. The facility to furnish GSTR – 2 and GSTR – 3 Forms is also not available. Accordingly, there is no system-based matching of the ITC being carried out presently, and till the time such provisions are given effect, the recipients shall be eligible to claim ITC provisionally on the basis of the invoice issued by customer. - The impugned order of blocking of the ECL of the writ applicant is hereby quashed and set aside - HC

  • GST:

    Maintainability of application - A question which is already pending or decided - The issues raised in the instant application and the issues mentioned in the assessment order and the notice mentioned supra are one and the same i.e., applicability of GST on entrance fee collected for entry into Brindavan Gardens and toll collected for use of Bridge. Thus first proviso to Section 98(2) of the CGST Act 2017 is squarely applicable to the instant case, as all the conditions therein are fulfilled. - Application rejected - AAR

  • GST:

    Valuation of supply - It does not contemplate to consider a guidance value prescribed under another legislation to be deemed to be the value of the supply, unless the transaction value itself is disputed and found not acceptable under Section 15 of the GST Act. In the latter case, the determination of the value of such supply shall be made as per the provisions of Section 15 of the GST Act. - AAR

  • Income Tax:

    Reopening of assessment u/s 147 - excess weighted deduction under section 35(2AB) - JAO has grossly erred in alleging in the reasons recorded for reopening that petitioner had claimed deduction of disallowed amount by DSIR and that there has been failure to disclose fully and truly all the material facts. - While disposing petitioner’s objection JAO has conveniently chosen not to deal with the submissions of petitioner on merits. - Notice issued u/s 148 quashed - HC

  • Income Tax:

    Reopening of assessment u/s 147 - since the proposed re-opening has been issued after expiry of four years of the end of the relevant assessment year, proviso to Section 147 of the Act would apply in as much as the Revenue has to show that there has been fault on the part of petitioner to truly and fully disclose material facts required for assessment. Not only as Revenue not made any such allegations in the reasons for re-opening, we cannot even cull out from the reasons recorded that Revenue has even suggested that there has been failure on the part of petitioner to disclose truly and fully material facts. - HC

  • Income Tax:

    Rectification u/s 154 - addition u/s 69 r.w.s. 115BBE - disallowing 30% of the expenditure pertaining to salary, rent, contract and professional fee as per Section 40 (a) (ia) - The power of rectification of an order of assessment u/s 154 lies within a very narrow compass. The order to be rectified must be an order which reflects an error apparent on the face of the record. The error or mistake which would require determination after long drawn hearing would not come within the ambit of Section 154. - HC

  • Income Tax:

    LTCG - Computation of cost of acquisition of the property - Unless the Assessing Officer proves that the assessee has demolished existing building and dismantled machinery & fittings and realized amount from sale of said dismantled assets or written off as scrap, then he cannot deny cost incurred by the assessee to acquire those assets. In our considered view, the Assessing Officer has completely erred in not considering cost incurred by the assessee to acquire asset while computing capital gain derived from sale of property. - AT

  • Income Tax:

    Addition u/s 69A - cash sales undertaken in demonetised cash after 08/11/2016 - the specified bank notes can be measured in monetary terms since the guarantee of the Central Government and the liability of Reserve Bank of India does not cease to exist till 31.12.2016. In view of the above, the contention of the Ld.DR, treating the receipt of SBNs from cash sales as illegal and thereby invoking the provisions of section 69A is not valid in law. - AT

  • Income Tax:

    Validity of Reopening of assessment u/s 147 - Reopening on the basis of the report of the Centralized Audit Unit, CAG - Different Apex Court pointed out that the audit report cannot be the basis for re-opening u/s. 148 of the Act. Further, there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for this assessment. There is no reason to believe that the income has escaped assessment during the year. - AT

  • Income Tax:

    Exemption u/s 11 - activities of the assessee are charitable in nature or not? - AO Compare the assessee with a private colonizer - From the development undertaken by the appellant Authority, public is benefited at large. It is clear that the benefits of development undertaken by the appellant Authority is not restricted to an individual or particular group of individuals for which its objects should be considered charitable under forth limb of section 2(15) of Income-tax Act. Words “other objects of general public utility” have been decided in catena of decisions. The said expression is widest of connotation. Words “general” in the said expression is pertaining to a whole class. If the primary purpose and the predominant object are to promote the welfare of the general public, the purpose would be charitable purpose. - AT

  • Income Tax:

    Penalty u/s 271(1)(b) - non compliance of notices u/s 142(1) - the AO was not having the present address of the assessee - when the notice issued u/s 142(1) was not served upon the assessee, and the AO had not conducted further enquiry regarding the current address of the assessee, then in the facts and circumstances of the case that the assessee had already furnished the current address in his letter dated 23.08.2021, the reasons explained by the assessee were bona-fide and reasonable - No penalty - AT

  • Customs:

    Valuation of imported goods - rejection of declared value - enhancement of value - The prices may fluctuate on account of the vagaries of market but the contractual price agreed upon by the contracting parties would be sacrosanct unless the contract provides so. The contractual price entered between the parties need to be tested against the prevailing market prices on the date of contract rather than any subsequent price. - AT

  • Indian Laws:

    Source of Income of Public Servant or Ostensible Owner - Addl. CIT - Abuse of official position, as public servant - possession of disproportionate assets - This Court is of the view that interest of justice would be served if A-1 is sentenced to rigorous imprisonment for a period of 5 years with a fine of ₹ 10,000/- under Section 7 of the Act - this Court is also of the view that the prosecution has been able to prove beyond reasonable doubt that A-3 and A-4 abetted A-1, in the commission of offence punishable under Section 13(2) read with Section 13(1) (e) and Section 7 of the Act. - HC

  • IBC:

    Rejection of application of the petitioner for grant of registration under the Goods and Services Tax Act, 2016 - Company under liquidation under the provisions of IBC - primary ground for rejection was non-furnishing of the required documents - The liquidator could have approached the concerned authority well in time, however, if he has not done it because of the various details that he needed to gather and collate, he could not have been sent from the post to pillar - the respondent authority is directed to grant registration under the Goods and Services Tax Act, 2016 - HC

  • Central Excise:

    Reversal of CENVAT Credit - creation of provisions in the balance sheet for the old and slow-moving inputs - On perusal of the balance sheet, it can be seen that the appellant has not fully written off the value of inventory - It is very evident from the balance sheet that the value of the inputs has not been fully written off. In such circumstances, Rule 3(5)(B) does not apply for the disputed period. - AT

  • Central Excise:

    CENVAT Credit - duty paying invoices (document) - cenvat credit availed on the strength of railway receit - Rule 9 is subservient to Rule 3 for determining the admissibility of cenvat credit. If the requirements of Rule 3 are satisfied, the credit could not have been denied. Further, Rule 9(2) read with Rule 4A of the Service Tax Rules provides that any document which contains the details as prescribed under Rule 4A shall be considered as a proper duty paying document for all the purposes including availment of cenvat credit. - AT


Articles


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (3) TMI 907
  • 2022 (3) TMI 906
  • 2022 (3) TMI 910
  • 2022 (3) TMI 909
  • 2022 (3) TMI 908
  • Income Tax

  • 2022 (3) TMI 900
  • 2022 (3) TMI 899
  • 2022 (3) TMI 898
  • 2022 (3) TMI 920
  • 2022 (3) TMI 919
  • 2022 (3) TMI 905
  • 2022 (3) TMI 897
  • 2022 (3) TMI 896
  • 2022 (3) TMI 895
  • 2022 (3) TMI 894
  • 2022 (3) TMI 893
  • 2022 (3) TMI 892
  • 2022 (3) TMI 891
  • 2022 (3) TMI 904
  • 2022 (3) TMI 903
  • 2022 (3) TMI 902
  • 2022 (3) TMI 890
  • 2022 (3) TMI 889
  • 2022 (3) TMI 888
  • 2022 (3) TMI 887
  • 2022 (3) TMI 886
  • 2022 (3) TMI 918
  • 2022 (3) TMI 885
  • 2022 (3) TMI 884
  • 2022 (3) TMI 883
  • 2022 (3) TMI 882
  • 2022 (3) TMI 881
  • 2022 (3) TMI 880
  • 2022 (3) TMI 879
  • 2022 (3) TMI 878
  • 2022 (3) TMI 877
  • 2022 (3) TMI 901
  • 2022 (3) TMI 876
  • 2022 (3) TMI 875
  • 2022 (3) TMI 874
  • 2022 (3) TMI 873
  • 2022 (3) TMI 872
  • Customs

  • 2022 (3) TMI 871
  • 2022 (3) TMI 870
  • Insolvency & Bankruptcy

  • 2022 (3) TMI 868
  • 2022 (3) TMI 867
  • 2022 (3) TMI 866
  • 2022 (3) TMI 865
  • 2022 (3) TMI 864
  • 2022 (3) TMI 863
  • 2022 (3) TMI 869
  • FEMA

  • 2022 (3) TMI 917
  • Central Excise

  • 2022 (3) TMI 916
  • 2022 (3) TMI 915
  • 2022 (3) TMI 914
  • 2022 (3) TMI 913
  • 2022 (3) TMI 862
  • 2022 (3) TMI 861
  • 2022 (3) TMI 860
  • 2022 (3) TMI 912
  • CST, VAT & Sales Tax

  • 2022 (3) TMI 859
  • 2022 (3) TMI 858
  • Indian Laws

  • 2022 (3) TMI 911
  • 2022 (3) TMI 857
 

Quick Updates:Latest Updates