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Home e-Newsletters Index Year 2021 May Day 12 - Wednesday

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TMI Tax Updates - e-Newsletter
May 12, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Grant of Bail - GST evasion - Fraudulent availment of ITC -Looking at point (vi) above and considering the magnitude and the scale of the alleged fraud involving public money and the critical stage, when investigation to get hold of the mastermind/ king pin and other key conspirators as well as the modus operandi is underway in which Petitioner through his sole proprietary concern, as well as through the Pvt. Limited Company, is alleged to be an active participant, at this stage, we are not inclined to indulge into the request for grant of bail under Article 226 of the Constitution of India. - HC

  • Income Tax

  • Validity of the application filed u/s 245(C) - Settlement Commission - the prime consideration and pre-condition for entertaining an application is true and full disclosure of income and subsequent adding, deletion or insertion would dis-entitle the Settlement Commission from entertaining an application. - In the present case, the Settlement Commission exceeded its jurisdiction by settling the issues, even after filing of the additional statement of facts by the assessee on two occasions, providing further disclosure of income. - the Settlement has caused prejudice to the interest of the Revenue and therefore, regular assessment is to be made to cull out the truth and proceed with the matter in the manner known to law. - HC

  • Reopening of assessment u/s 147 - Bogus LTCG - AO had applied his independent mind to the information and upon due satisfaction, led to form an opinion that, the amount of claim of LTCG claimed by the assessee is chargeable to tax has escaped assessment, which facts suggests that, there is live link between the material which suggested escapement of income and information of belief - the assessee failed to make out a case - HC

  • Capital gain on sale of land - Nature of land - it is undisputed fact that assessee has sold agricultural land on which he was carrying out agricultural activities prior to its sales. Thus , we note that assessee is an agriculturist and has been carrying out agricultural operation on the land for many years. In the Revenue records the said land is an agricultural land. - based on the factual position, we are of the view that assessee has sold an agricultural land which is not a capital asset - AT

  • Capital receipt chargeable to tax u/s.45 - claim of exemption u/s.10(2A) - amount received by the assessee partner from the partnership firm - There was no transfer of relinquishment of rights in favour of the continuing partners. We find that in the instant case the firm i.e. Pranik Landmark Associates had only paid the amounts lying to the credit of the partner i.e. the assessee and had not paid even a penny more than the amount lying in the credit of the partner’s current account - AT

  • Unsecured loans u/s 68 - As the directors of the lending companies had filed affidavits confirming the loan transactions before the ld AO which had not been disputed. Once the averments made in the affidavit are not disputed or refuted, the same are to be construed as true and correct - Decision of apex court of 1956 followed - AT

  • Addition on account of negative reserves - The negative reserves would be nothing but premium receivable by the insurance company. However, there would always be a chance that policyholder might not continue with the insurance polity bought by him which would result in non-receipt of premium which was otherwise receivable by the insurance company. Therefore, the same could not be taxed. - AT

  • Disallowance of redemption on account of provisions made for redemption of preference shares while computing the books profit u/s 115JB - Since the issue is fully covered in favour of the assessee in his own case - the CIT(A) is quite justifiable which is not liable to be interfere with at this appellate stage - AT

  • Addition in respect of interest paid on External Commercial Borrowings (ECB), payment of guarantee fee and service fee - the assessee has been able to substantiate that the payments have been made for the purpose of assessee’s business. The TPO cannot sit in the judgment whether these expenses were necessary for conducting the business or whether any benefit has been derived from the expenditure so incurred. - AT

  • Customs

  • Validity of detention and seizure of goods - classification of scrap - The DRI has firstly detained the goods, which later on had been seized. Assuming that the stage of adjudication of show cause notice is yet to come, this Court has no intent to go into the issue of classification at all as it would be for the proper officer to workout the same on following the due procedure and on requisite scrutiny however, noticing that the order of detention and seizure by the DRI itself is unsustainable, we allow the petition by quashing and setting aside the seizure and the panchnama. - HC

  • IBC

  • Approval of Resolution Plan - The RP cannot be permitted to ride piggyback on the CoC's decision. - The facts and circumstances of the present application point only to one inescapable conclusion, that the application has been filed by the RP only to avoid any adverse scrutiny by the IBBI. That reason is not good enough to overcome major lacunae that the present application suffers from - The application does not deserve any consideration. - Tri

  • Classification of applicant - unsecured creditors or not - the Applicant cannot take to plea that he is not aware of the fact that he is classified as unsecured creditor. Instead of going into further detail of the matter, the fact remains that even after having the knowledge with regard to the classification as unsecured creditor, the Applicant has not taken any steps and filed instant application almost after 551 days, when Code provide that an appeal has to be filed within 14 days after rejection of the claim by Liquidator. Therefore, the application is barred by limitation. - Tri

  • Condonation of delay of 796 days delay in filing the claim before the Liquidator - In view of the IBC, 2016 being a time bound process as well as the Learned Liquidator being under a compulsion to complete the liquidation process within a period of one year from the date of commencement of liquidation, the application is dismissed. - Tri

  • Initiation of CIRP - Failure to pay outstanding salary dues to the employees - Operational Creditor has not received his dues from the Corporate Debtor and the submissions made by the Corporate Debtor in this regard appears to be after thought and was not submitted by any documentary evidence. - The Operational Creditor is yet to receive his salary dues from the Corporate Debtor. The submissions made by the Corporate Debtor is not convincing and accordingly the application for CIRP of the Operational Creditor has been admitted. - Tri

  • Central Excise

  • Maintainability of appeal - availability of efficacious alternative remedy of appeal - Classification of goods - This Court has no hesitation in arriving a conclusion that the petitioners are bound to exhaust the Appellate Remedy as contemplated under Section 35-B of the Central Excise Act, 1944. T - HC

  • VAT

  • Refund of ITC - Export Sales - case of Revenue is that the petitioner should have applied for refund under Section 18(3) of the TNVAT Act, within 180 days by filing Form W under Rule 11(2), since the ITC represents ITC towards exports - The High Court cannot conduct the roving enquiry with reference to the disputed facts and circumstances, which is to be done based on the documents and evidences. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (5) TMI 334
  • 2021 (5) TMI 333
  • Income Tax

  • 2021 (5) TMI 332
  • 2021 (5) TMI 330
  • 2021 (5) TMI 324
  • 2021 (5) TMI 323
  • 2021 (5) TMI 320
  • 2021 (5) TMI 304
  • 2021 (5) TMI 303
  • 2021 (5) TMI 302
  • 2021 (5) TMI 301
  • 2021 (5) TMI 300
  • 2021 (5) TMI 299
  • 2021 (5) TMI 298
  • 2021 (5) TMI 297
  • 2021 (5) TMI 296
  • 2021 (5) TMI 295
  • 2021 (5) TMI 294
  • 2021 (5) TMI 293
  • Customs

  • 2021 (5) TMI 327
  • 2021 (5) TMI 326
  • Corporate Laws

  • 2021 (5) TMI 292
  • Insolvency & Bankruptcy

  • 2021 (5) TMI 322
  • 2021 (5) TMI 321
  • 2021 (5) TMI 319
  • 2021 (5) TMI 318
  • 2021 (5) TMI 317
  • 2021 (5) TMI 315
  • 2021 (5) TMI 314
  • 2021 (5) TMI 313
  • 2021 (5) TMI 312
  • 2021 (5) TMI 311
  • 2021 (5) TMI 310
  • 2021 (5) TMI 309
  • 2021 (5) TMI 308
  • 2021 (5) TMI 307
  • 2021 (5) TMI 306
  • 2021 (5) TMI 305
  • Central Excise

  • 2021 (5) TMI 331
  • 2021 (5) TMI 316
  • CST, VAT & Sales Tax

  • 2021 (5) TMI 329
  • 2021 (5) TMI 328
  • 2021 (5) TMI 325
 

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