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Home e-Newsletters Index Year 2021 May Day 10 - Monday

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TMI Tax Updates - e-Newsletter
May 10, 2021

Case Laws in this Newsletter:

GST Income Tax Customs Insolvency & Bankruptcy PMLA CST, VAT & Sales Tax



Highlights / Catch Notes

    GST

  • Validity of assessment order - discrepancies in the invoices accompanied by e-way bills - The conclusion in the assessment order, in fact, mentions the statement recorded by the third party dealer and in the light of the fact that this statement forms the basis of assessment, the petitioner ought to have been granted opportunity to peruse the statement and put forth its objections to the same. This has not been done, constitutes principles of violation of natural justice. - HC

  • Rejection of request for carry forward of Input Tax Credit (ITC) into the Goods and Service Tax regime - The petitioner is thus be permitted to transition the credit. After all, the consequence of such transition is only the availment of the credit and not the utilization itself, which is a matter of assessment and which can be looked into by the Assessing Officer at the appropriate stage - HC

  • Levy of Central GST and State GST - use of motor cycles, as contract carriages - The apprehensions levelled by the petitioner to the effect that other operators are adopting differing positions in regard to the taxability of business receipts stands assuaged, the respondent stating that necessary action would be taken to ensure that there is compliance, across the board. - HC

  • Bail Application of co-accused - fake/inadmissible ITC on the strength of such fake invoices - issuance of goods less invoices - not habitual offenders - the Department is still not forthcoming in filing complaint/charge-sheet in this case - Bail granted - DSC

  • Bail application - issuance of bogus invoices without actually transferring the physical goods - It seems that the entire community would aggrieved if the economic offenders who ruin the economy of the State are not brought to book as such offences affects the very fabric of democratic governance and probity in public life. Further if a murder committed in the heat of moment upon passing being aroused, the economic offence is supposed to be committed with cool calculation and deliberately with an eye on personal profit regardless of the consequence of the community - Bail application rejected - DSC

  • Income Tax

  • Unexplained income - on money receipts - Peak addition - Once the business profit is determined at 8% of undisclosed receipts, then what is required to be seen is whether the said profit of 8% is sufficient to explain all the outgoings in the form of personal expenses and personal investments made by the assessee year on year and accordingly the assessee would be entitled for benefit of telescoping. Hence there cannot be any separate addition for personal expenses as made by the lower authorities. - HC

  • Adjustment made by the CPC (Centralized Processing Centre) u/sec. 143(1) - CPC did not allow set off of brought forward losses against the short term capital gain and hence, made the adjustment and raised a demand - As the issue in question is debatable, which needs to be considered in detail both the legal aspects and factual aspects and decision has to be arrived at. Such legal issues are not permissible to decide u/sec. 143(1) - HC

  • Determining the ALP under transfer pricing provisions - Determination of market value of of electricity - When a captive power plant in an industry supplies electricity to its own manufacturing unit, there is no power distribution cost. The savings of cost of power can be determined only when the rate at which the manufacturing unit of the company purchases power in the open market from the power distribution companies is considered. Imaginary costs which are not incurred cannot guide our decision. - AT

  • Addition u/s 68 - non maintenance of books of accounts - There was no actual credit of cash or otherwise received by the assessee. No entries are made in the books of account as admittedly no books of account are maintained. Thus based on the real income thereon no addition can be made based on these false or bogus figures. - An addition u/s. 68 of the Act was made on bogus figures which are not true and when no such entries were made in the books of account - Additions deleted - AT

  • Reopening of assessment u/s 147 - addition as concealed income u/s. 69 - The fact that the assessee has consistently alleged connivance of the bank authorities coupled with the fact that the currency details and lack of PAN details of the depositor evident on record remain unrebutted on record by the tax authorities cannot be allowed to remain ignored. In the facts as they stand unless these assertions are rebutted by cogent evidence, the assessee appears to have a claim which cannot be easily discarded - Matter remitted back for fresh adjudication - AT

  • Penalty u/s 271(1)(c) - Addition on account of non-genuine gifts - Penalty proceedings are separate and independent. It is an admitted fact that assessee offered the additional income, though, after issuing notice under section 142(1) by AO. Assessee was having in position of certain evidence in the form of declaration, details of donor and PAN number which were furnished the AO. It is also an admitted fact that no efforts were made by AO by issuing any notice to the donor under section 133(6) of the Act or any summon under section 133(1) of the Act. Facts remaining same that a gift received by assessee was treated as non-genuine gift for the want of complete evidence - No penalty - AT

  • Disallowance of Depreciation on furniture provided at the residence of employee - the assessee has not filed any evidence to prove the fact that the concerned Individual was having any casual connection of employment with the assessee - claim was rightly rejected - AT

  • Penalty levied u/s 271(1)(c) - the assessee has given evidences, on which no findings was given by Ld. CIT(A), in our view, the assessee reasonably explained the facts qua this addition before Ld. CIT(A. Therefore, in our view, this is not a fit case for sustaining the levy of penalty under section 271(1)(c) - AT

  • Unexplained reduction in closing work in progress - As there was a difference on account of change in following of accounting standard from AS 7 to AS 9 in the valuation of closing work in progress and that was already disallowed by AO in his order by observing as follows and once again disallowing this difference amounting to double disallowance, which should be disallowed - AT

  • Customs

  • Refund of the redemption fine and penalty remitted - Department application for revision is pending but no stay / interim protection sought against the order of Commissioner (appeals) - the Customs Department takes re-course to revision before the Government, it is incumbent upon them to also seek interim protection for retention of the assets seized by them at the original instance, if they so desire. Failure to do so would entitle the assessee in the respective cases to seek return/refund of the assets seized. - HC

  • IBC

  • Initiation of CIRP - Suffice to say that the Corporate Debtor admitted that in-spite of receipt of demand notice from the Operational Creditor it could not make payment of operational debt, due and payable due to his weak financial condition. - The fact proved on record is that the Corporate Debtor is an insolvent and its insolvency has to be resolved by the process of law - Tri

  • Initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute not - For the purpose of defeating the claim of the Operational Creditor, the Corporate Debtor is raising a feeble defence, which is not supported by any documentary evidence, that the Purchase Manager is not the Authorized Signatory of the Corporate Debtor in order to acknowledge the accounts - Tri


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (5) TMI 262
  • 2021 (5) TMI 261
  • 2021 (5) TMI 259
  • 2021 (5) TMI 258
  • 2021 (5) TMI 227
  • 2021 (5) TMI 226
  • Income Tax

  • 2021 (5) TMI 266
  • 2021 (5) TMI 265
  • 2021 (5) TMI 263
  • 2021 (5) TMI 256
  • 2021 (5) TMI 255
  • 2021 (5) TMI 254
  • 2021 (5) TMI 252
  • 2021 (5) TMI 251
  • 2021 (5) TMI 250
  • 2021 (5) TMI 249
  • 2021 (5) TMI 245
  • 2021 (5) TMI 244
  • 2021 (5) TMI 243
  • 2021 (5) TMI 242
  • 2021 (5) TMI 241
  • 2021 (5) TMI 240
  • 2021 (5) TMI 239
  • 2021 (5) TMI 238
  • 2021 (5) TMI 237
  • 2021 (5) TMI 234
  • Customs

  • 2021 (5) TMI 267
  • 2021 (5) TMI 260
  • Insolvency & Bankruptcy

  • 2021 (5) TMI 253
  • 2021 (5) TMI 248
  • 2021 (5) TMI 247
  • 2021 (5) TMI 246
  • 2021 (5) TMI 236
  • 2021 (5) TMI 235
  • 2021 (5) TMI 233
  • 2021 (5) TMI 232
  • 2021 (5) TMI 231
  • 2021 (5) TMI 230
  • 2021 (5) TMI 229
  • 2021 (5) TMI 228
  • PMLA

  • 2021 (5) TMI 264
  • CST, VAT & Sales Tax

  • 2021 (5) TMI 257
 

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