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Home e-Newsletters Index Year 2021 May Day 5 - Wednesday

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TMI Tax Updates - e-Newsletter
May 5, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    Income Tax

  • Reopening of assessment u/s 147 - Sham transaction of gift - No new material surfaced during the reassessment proceedings on which the AO could have formed a requisite belief with regard to escapement of assessment and the assessee had disclosed all the materials fully and truly during the previous assessment proceedings. Under the circumstances, the impugned Notice under Section 148 of the Act dated 26.02.2019 assuming jurisdiction under Section 147 of the Act after the expiry of four years from the end of the relevant assessment year is clearly without jurisdiction of law and cannot be sustained in law - HC

  • Reopening of assessment u/s 147 - reopening beyond the period of four years - Merely because while framing assessment for the subsequent year, the AO noticed certain irregularity in the claim by itself would not be sufficient to satisfy requirements of the proviso to Section 147 - It is possible that the specific angle of the depreciation earlier claimed to be set off against the income of the current year of the eligible business may not have been in the mind of the Assessing Officer. - Notice quashed - HC

  • Penalty u/ s 271(1)(c) - Disallowance on account of personnel expenses, operative expenses and finance expenses - it a “mere disallowance” of an expense does not warrant a penalty for filing inaccurate particulars of income u/s 271(1)(c). - AT

  • Proceedings u/s. 153C r.w.s. 153A - Recording of satisfaction - CIT (Appeals) not given finding that what basis he came to such conclusion that there was a recording of satisfaction by the Assessing Officer of searched person. We are of the opinion that recording of satisfaction is legal issue which shall be examined by the learned CIT (Appeals) after calling the relevant record from the AO of searched person and decide the issue afresh. - AT

  • Penalty u/s 271G - under TNMM adopted by the assessee, the profit of the international transaction has to be furnished, whereas the assessee has only furnished the entity level margins which consists of overall profits on AE and significant non non-AE transactions - reasonable cause for non-compliance - In the interest of justice, we vacate the order of learned CIT(A) and set aside the issue to the learned CIT(A). - AT

  • Addition u/s 56(2)(vii)(b) - In this case, the Assessing Officer has not found any specific fault in rejecting or not satisfying with the valuation made by the assessee. When the Assessing Officer has not found any defect or error in the valuation of shares by the assessee company, it may not be necessary to apply the method of valuation prescribed under Rule 11UA of the I.T. Rules - AT

  • Addition u/s 68 - unexplained cash deposited in bank accounts - Bank account / statement as books - an addition made in respect of a cash deposit in the bank account of an assessee, in the absence of the same found credited in the ‘books’ of the assessee maintained for the previous year, cannot be brought to tax by invoking the provisions of Section 68. - AT

  • Customs

  • Refund of SAD - Process amounting to manufacture or not - sterilization, re-packing, re-labelling etc. - From the reply given by the assessees to the show cause notice, dated 01.10.2015, it appears that the assessees did not raise the plea that the Notification No.102/2007 was in supersession of the earlier Notification nor there was any argument made by the assessees with regard to the effect of the Circular No.34/2010-Customs, dated 15.09.2010. Thus the matters requires to be re-examined - Matter remanded back - HC

  • First time violation of import condition - The petitioner knows that if tomorrow he imports another consignment without Phytosanitary Certificate, then his fate is doomed because such a consignment can never ever be cleared. That is all the more so, because of the order passed in these writ petitions - That apart, as rightly pointed out by the learned counsel for the petitioner, it is not as if a second or third violation cannot be condoned at all. - HC

  • Central Excise

  • Area based exemption - benefits under the Northeast Industrial Policy - As the Notification dated 27.03.2008 provides for a legal right to the assessee to claim for a special rate to be fixed in the event of there being any add-ons to the goods manufactured, without an appropriate decision being taken on such claim for special rate, it would be inappropriate for the department to proceed against the petitioners as per the rates provided in the Notification dated 27.03.2008. - HC

  • VAT

  • Stay of recovery - The first appellate authority proceeds to pass a rather mechanical order calling upon the petitioner to remit a further 25% of tax and furnish a bank guarantee for the balance. This is akin to orders that are routinely passed in stay applications and ought not to be passed, as a matter of rote. - HC


Notifications


News


Case Laws:

  • Income Tax

  • 2021 (5) TMI 125
  • 2021 (5) TMI 124
  • 2021 (5) TMI 122
  • 2021 (5) TMI 121
  • 2021 (5) TMI 120
  • 2021 (5) TMI 119
  • 2021 (5) TMI 118
  • 2021 (5) TMI 117
  • 2021 (5) TMI 103
  • 2021 (5) TMI 102
  • 2021 (5) TMI 101
  • 2021 (5) TMI 100
  • 2021 (5) TMI 99
  • 2021 (5) TMI 98
  • 2021 (5) TMI 97
  • 2021 (5) TMI 96
  • 2021 (5) TMI 95
  • Customs

  • 2021 (5) TMI 129
  • 2021 (5) TMI 128
  • 2021 (5) TMI 123
  • Corporate Laws

  • 2021 (5) TMI 108
  • Insolvency & Bankruptcy

  • 2021 (5) TMI 116
  • 2021 (5) TMI 115
  • 2021 (5) TMI 114
  • 2021 (5) TMI 113
  • 2021 (5) TMI 112
  • 2021 (5) TMI 111
  • 2021 (5) TMI 110
  • 2021 (5) TMI 109
  • 2021 (5) TMI 107
  • 2021 (5) TMI 106
  • 2021 (5) TMI 105
  • 2021 (5) TMI 104
  • Central Excise

  • 2021 (5) TMI 127
  • CST, VAT & Sales Tax

  • 2021 (5) TMI 126
  • Indian Laws

  • 2021 (5) TMI 130
 

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