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Home e-Newsletters Index Year 2021 March Day 31 - Wednesday

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TMI Tax Updates - e-Newsletter
March 31, 2021

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Service Tax CST, VAT & Sales Tax Indian Laws



Highlights / Catch Notes

  • GST:

    Attachment of Bank Accounts - Search and inspection under Section 67 of the CGST Act - The order directing furnishing of the bank guarantee needs to be stayed till disposal of the writ petition, by directing the petitioner to execute the undertaking that he will not sell, alienate or dealt with any of his assets as seen from the balance sheet produced by him - HC

  • Income Tax:

    Additions u/s 40A(3) - Payment made in Cash - Since the AO has not doubted the genuineness of the expenses as no such disallowance has been made and the AO has made only disallowance u/s. 40A(3) of the Act on the basis of the bills/vouchers/ledger account produced before him, we are of the considered opinion that the disallowance u/s. 40A(3) made by the AO under the facts and circumstances of this case is not justified and the provisions of 6DD(k) will come to the rescue of the assessee. - AT

  • Income Tax:

    Addition u/s 41(1) on bogus creditors - amount received from 10 parties are not sundry creditors as they have advances for booking of plot of lands of which few have been transferred to sales account as and when the registry of plot of land is completed. Provision of Section 41(1) are not applicable on this case as the assessee has not claimed the alleged amount of advances from customers as an allowance or deduction in any assessment year in respect of loss, expenditure or trading liability. - AT

  • Income Tax:

    Exemption u/s 11 - effective date of cancellation of registration u/s 12AA(3)/(4) - an assessee unwilling to avail the “benefit” of registration “obtained” under section 12A cannot be, directly or indirectly and by actions or by inactions, compelled by the revenue authorities, to continue with the said registration “obtained’ by the assessee, particularly when it pertained to the registration obtained in a period prior to the insertion of section 12AA. The present cancellation of registration under section 12A must, therefore, be held to be effective from 20th March 2015. - AT

  • Income Tax:

    Addition u/s 68 r.w.s. 115BBE - The assessee had explained the source of deposits of cash and the AO did not discharge the burden by examining the family members. Since the assessee stated that he looks after the entire agricultural operations which is common in joint families, we, do not find any reason to suspect the source of cash deposits in the bank account and the same stands explained, hence, we set aside the orders of the lower authorities and delete the addition made by the AO. - AT

  • Income Tax:

    Transfer pricing addition on account of Corporate guarantee - performance guarantees in the instant case are a specie of the genus of corporate guarantee and cannot be given a treatment different from the corporate guarantee as urged by the assessee. Ex consequenti, we hold that the so-called performance guarantee transactions at sr. nos. 3 and 4 are in the nature of corporate guarantee transactions and do not require any separate treatment vis-à-vis the remaining eight transactions - AT

  • Income Tax:

    Intra-court appeal against rejection of Contempt proceedings against the IRS officer / Deputy Commission of Income Tax - if the appellant's role is only that of an informant and upon information given, the Court is convinced that no proceedings for contempt is required to be initiated, then the appellant cannot be heard to say that he should be permitted to maintain an intra-court appeal against the finding of the Contempt Court especially when, his role terminates the moment the information is placed before the Court. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - the competent authority has given the satisfaction in hand writing and has expressed his satisfaction with regard to reasons recorded and accorded the sanction to issue impugned notice. Therefore, the approval for reassessment was granted on the date on which the impugned notice was issued. In this circumstances, the contention raised by the learned advocate for the writ applicant that sanction was not obtained before issuance of the notice cannot be accepted. - HC

  • Income Tax:

    Assessment u/s 153A - The undisputed position in this case is that the IO and AO are not one and the same. The last of the authorisations in this case is on 04.09.2018 and the seized materials ought to have been handed over, in terms of Section 132(9A) on or before 03.11.2018. Admittedly, the handing over has been only on 20.08.2019, more than nine months beyond the stipulated date. Though this constitutes a gross procedural irregularity, it does not, in my considered view, vitiate the notices issued, as assuming a situation where the handover had been within time, the notices might still have been issued only on 01.11.2019. Thus, the jurisdiction assumed cannot be faulted on this score. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - The only mistake that the department committed was to dispatch the notice u/s 148 of the Act to the address at the address of Agriculture land and not to the residential address of the writ applicant - In such circumstances, it is obvious that the writ applicant could never be said to have receive such notice. - HC

  • Income Tax:

    Reopening of assessment u/ 147 - Revenue has to prima facie indicate as to which of the conditions of Section 10(10D) of the Act are not fulfilled. In other words, how the amount in question is not exempted u/s 10(10D) - even an assessment under Section 143(1), in the form of an intimation, cannot be reopened under Section 147 unless some new / fresh tangible material comes into possession of the Assessing Officer, subsequent to the intimation under Section 143(1) of the Act. - HC

  • Income Tax:

    Exemption u/s 11- The department is expected to undertake some homework in this regard seriously. The Trust should not be denied the benefit of exemption under Section 11 of the Act only on account of its disability to produce the necessary records, which got destroyed during the floods of 1978. We do not find anything doubtful or fishy as regards the Trust. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - validity of sanction-order passed u/s 151 - because of the failure on the part of respondent no.1 to correlate the information received with the ostensible formation of belief by him, respondent no.2 attempted to connect, via her counter-affidavit, that the escaped income with the “suspicious” unsecured loan entries reflected in the assessee's returns for AY 2010-2011 and 2011-2012. As correctly argued by Mr. Kochar, the counter-affidavit and the submissions made across the bar cannot be used to sustain the impugned actions. - HC

  • Customs:

    Cancellation of Customs Broker License - forfeiture of security deposit - imposition of penalty - time limitation - as per the Revenue, it is apparent case of fraud where four different firms got established based upon fake documents. - The appellant has admitted that despite the discrepancies in the documents of these importers, the CHA /appellant opted to not to bring the same to the notice of the competent Customs officers with the sole motive to safeguard his business with these importers. - Punishment imposed on Respondent, by Commissioner of Customs, of revocation of their license, when viewed in light of grave and serious acts of misconduct held established, was held justified. - AT

  • Corporate Law:

    Oppression and Mismanagement - The real reason why SP group and CPM are aggrieved by the conversion is, that most of their arguments are traceable to provisions which apply only to public and listed public companies. If re­conversion goes, they may perhaps stand on a better footing. But that would tantamount to putting the cart before the horse. One may be entitled to a collateral benefit arising out of a substantial argument. But one cannot seek to succeed on a collateral issue so as to make the substantial argument sustainable - the question is answered in favour of Tata Sons and as a consequence, all the observations made against the appellants and the Registrar of companies of the impugned judgment are set aside. - SC

  • IBC:

    Initiation of CIRP - corporate guarantor - Period of limitation - A fresh period of limitation is required to be computed from the date of acknowledgment of debt by the principal borrower from time to time and in particular the (corporate) guarantor/corporate debtor vide last communication dated 08.12.2018. Thus, the application under Section 7 of the Code filed on 13.02.2019 is within limitation. - SC

  • IBC:

    CIRP - Action against corporate person (being a corporate debtor) concerning guarantee offered by it in respect of a loan account of the principal borrower, who had committed default - Upon default committed by the principal borrower, the liability of the company (corporate person), being the guarantor, instantly triggers the right of the financial creditor to proceed against the corporate person (being a corporate debtor) - SC

  • Service Tax:

    Reversal of Cenvat Credit - There are no merits in the confirmation of demand. Though in the Order in Original as well as in the first appellate authority’s order, the department has discussed that the appellant has not put forward evidence to show that they had intimated the department as to the reversal of credit, there is no allegation in the Show Cause Notice that the appellant has not complied with the procedure of intimating the department as required under Rule 6(3A) of CENVAT Credit Rules. - AT

  • Service Tax:

    CENVAT Credit - input service distribution - tour operator service - entitlement of credit to ISD when the credit has been availed by the unit company - the appellant is only an Input Service Distributor who only distributed the credit - Demand set aside - AT


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (3) TMI 1156
  • 2021 (3) TMI 1155
  • 2021 (3) TMI 1154
  • Income Tax

  • 2021 (3) TMI 1177
  • 2021 (3) TMI 1169
  • 2021 (3) TMI 1163
  • 2021 (3) TMI 1162
  • 2021 (3) TMI 1161
  • 2021 (3) TMI 1160
  • 2021 (3) TMI 1159
  • 2021 (3) TMI 1158
  • 2021 (3) TMI 1176
  • 2021 (3) TMI 1148
  • 2021 (3) TMI 1153
  • 2021 (3) TMI 1147
  • 2021 (3) TMI 1146
  • 2021 (3) TMI 1174
  • 2021 (3) TMI 1173
  • 2021 (3) TMI 1152
  • 2021 (3) TMI 1151
  • 2021 (3) TMI 1172
  • 2021 (3) TMI 1150
  • 2021 (3) TMI 1171
  • 2021 (3) TMI 1149
  • 2021 (3) TMI 1170
  • Customs

  • 2021 (3) TMI 1167
  • 2021 (3) TMI 1166
  • 2021 (3) TMI 1165
  • 2021 (3) TMI 1164
  • Corporate Laws

  • 2021 (3) TMI 1181
  • 2021 (3) TMI 1180
  • 2021 (3) TMI 1178
  • Service Tax

  • 2021 (3) TMI 1168
  • 2021 (3) TMI 1157
  • CST, VAT & Sales Tax

  • 2021 (3) TMI 1175
  • Indian Laws

  • 2021 (3) TMI 1179
 

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