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Home e-Newsletters Index Year 2019 May Day 15 - Wednesday

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TMI Tax Updates - e-Newsletter
May 15, 2019

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy FEMA PMLA Service Tax Central Excise CST, VAT & Sales Tax Wealth tax Indian Laws



Highlights / Catch Notes

  • Income Tax:

    GAAR and GST - reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance - Order under section 119 of the Income-tax Act, 1961

  • Income Tax:

    Stay of demand - application of comparables in transfer pricing - in previous assessment year, the very same Tribunal allowed an appeal in favour of assessee - this case would not fall under the category of a case where the application for stay deserved to be rejected outright - stay granted subject to condition

  • Income Tax:

    Deduction u/s. 54 - the booking of bare shell of a flat is a construction of house property and not purchase, therefore, the date of completion of construction is to be looked into which is as per provision of section 54 - time window of three years period available to assessee - deduction allowed

  • Income Tax:

    Approval u/s 80G(5)(vi) - donations being liable to be misused wholly on the basis of the assessee-society being prosperous - While that may invite a charge of the promoters being over-zealous or over ambitious, it surely does not lead to the inference of seeking donation for admission, i.e., of the approval u/s. 80G(5)(vi) being liable to be misused a distinct possibility - approval granted

  • Income Tax:

    Receipts from sale of spontaneous growth of trees - it is a capital receipt not liable to tax - The provisions of section 55(2)(a) cannot be applied to spontaneous growth of trees and is to be applied only to goodwill, trade mark, brand name, right to manufacture, produce or process any article or thing or right to carry on any business, tenancy rights, stage carriage permits or loom hours etc.

  • Income Tax:

    Attachment orders u/s 281B - no sale of immovable property can be made after the expiry of three years from the end of the financial year in which the order giving rise to a payment of any tax, interest, fine, penalty or any other sum, for the recovery of which the immovable property has been attached - the properties attached were not brought to sale within three years - attachment order lost their potency

  • Income Tax:

    TDS u/s 195 - Disallowance u/s 40(a)(ia) on account of professional consultancy fees - AO has failed to point out in what manner the professional income has arisen or accrued in India or the said party had any PE or business connection in India or rendered any services in India - TDS u/s 195 does not arise - no disallowance

  • Income Tax:

    Assessment u/s 153A - Unexplained cash credit u/s 68 - The addition of share application money was on the basis of Bank account found in search - the said Bank account as well as the transactions reflected therein were duly disclosed by the assessee in its return of income originally filed - addition sustainable being outside the scope of section 153A and not based on any incriminating material found

  • Income Tax:

    Addition towards interest u/s. 244A on income tax refund - in mercantile system of accounting same is to be taxed in the assessment year under consideration as the income was accrued and received by the assessee - cannot postpone on the reason that it would be withdrawn or reduced by the Department subsequently - If there is withdrawal or reduction, the remedy lies elsewhere and not at this stage

  • Income Tax:

    Penalty u/s 271(1)(c) - the assessee had declared LTCG and had claimed it as exempt u/s 10(38) as it suffered STT but subsequently withdrew the claim - at the most it may be considered as an unsubstantiated or wrong claim but it cannot be held to be furnishing of inaccurate particulars of income or concealment of income - no penalty

  • Income Tax:

    Penalty u/s 271D - Accepting cash loans - contravention of the provisions of section 269SS ad 269T - Penalty u/s 271D is subject to the provisions of section 273B and not automatic - when the assessee provides a reasonable explanation, the penalty is not leviable

  • Customs:

    Seeks to further amend notification No. 50/2017-customs dated 30th June 2017 to postpone the implementation of increased customs duty on specified imports originating in USA from 16th May, 2019 to 16th June, 2019.

  • Customs:

    Prohibited goods or not - the import of plant growth regulators is not prohibited absolutely. They may actually fall under the category of “restricted goods”, and the restriction is with regard to registration - once conditions are not complied with, they become prohibited goods.

  • Customs:

    Classification of goods - Electronic Nicotine Delivery systems (ENDS) including e-Cigarettes, Heat-Not Burn devices, Vape, e-Sheesha, e-Nicotine Flavoured Hookah, and the like devices - Drugs or not - circular dated 27.11.2018, all Customs Authorities have been requested to ensure import consignments of 'ENDS' are referred to drug control authorities - circular stayed till final determination that 'ENDS' is drug or not

  • Customs:

    Imposition of penalty u/s 112(b) of Customs Act, 1962 - goods were duly covered by prescribed job work documents and the same were also taken on record in the books of the accounts of the appellant - the quantities which have been received were not liable for confiscation u/s 111 of the Customs Act as the same were covered by legitimate documentation - not liable for the penalty

  • Customs:

    Refund of SAD - appellant has not adopted the same code while describing the product in their sale invoices - the adjudicating authority has not come to a conclusion that the product sold was entirely different - there was nothing on record to disbelieve the Chartered Accountant's certificate which certified that both products are one and the same - claim for refund was sustainable

  • DGFT:

    Imports of Maize (feed grade) under the TRQ Scheme for 2019-20.

  • FEMA:

    Foreign Direct Investments (FDI) - Non-compliance of the condition of minimum capitalization - Since the business of development and construction of township could not be commenced due to the action of the respondent, the period of compliance with the condition had yet to commence. The allegation is, therefore, premature and, therefore, the question of contravention does not arise.

  • Corporate Law:

    Creation of the encumbrance over the assets of the Respondent Company - if the Respondents want to block out Petitioner, hiding behind the Arbitration clause, in equity, they cannot claim discretionary relief to create such a huge liability of ₹ 1250 Lakhs, riding on the back of NCLT Order which, prima facie, is against the Articles of Association.

  • Corporate Law:

    Restoration of name of the Company - name struck off from the Register of Companies u/s 248(5) - in the light of huge investment made by the directors/company and the appellant is continuously making efforts to set up the industry and also still depositing the instalments towards land, it would be just that the name of the company is directed to be restored

  • Corporate Law:

    Compounding of offence - non-compliance with the CSR initiatives - for violation of provisions of section 134(3)(o) r.w.s 135 of the Companies Act, 2013 - prosecution instituted by ROC in the Court of Special Judge - As per section 441(1) Tribunal has power to compound an offence even after institution of any prosecution - offence compounded

  • Indian Laws:

    Dishonor of Cheque - cheque issued by a proprietorship firm - Proceedings againt the individual / proprietor - There was no requirement to implead his sole proprietary concern as an accused person nor there was any need to additionally implead the applicant by his trade name.

  • IBC:

    Liquidation - expiry of lime limit of 270 days for resolution - the ‘Resolution Plan’ under I&B Code was not submitted within time and therefore, the ‘Committee of Creditors’ declined to consider the same - the Adjudicating Authority having ordered for liquidation, it cannot be held to be illegal

  • PMLA:

    Offence under PMLA - attachment of Appellant's residential property - PMLA is a preventive measure and not a punitive measure. In the present case inspite of admitted fact that the amount in far excess of the alleged POC is secured with the CBI Court, the appellant cannot be compelled to again secure the amount.

  • Service Tax:

    Principles of natural justice - imposing a liability under Section 73(2) after amalgamation - The lack of knowledge on the part of the petitioner about the proceedings, is bona fide in this case - Matter restored before the adjudicating authority.

  • Service Tax:

    Rejection of VCES Application - combined declaration for more than one ST-3 return periods - non payment of tax as for part of declaration - While it is possible to split the period in respect of which the declaration is filed, it is not possible to split the declaration itself - Petition dismissed.

  • Central Excise:

    Classification of goods - Laces - while determining the classification by the CRCL, no process of manufacturing was examined and retest of the samples were denied - There is a gross violation of principle of natural justice - demand set aside.

  • VAT:

    Levy of penalty - Recording of transaction in the books of accounts - It was not a case where the penalty proceedings could legally be initiated and in fact, the Assessing Authority as well as the Tribunal were illegally and arbitrarily proceeded to impose and confirm the penalty.

  • VAT:

    The petitioner cannot rest his case based on the clarifications which were issued much prior to the amendment and those clarifications were assessee specific and does not bind the Court.

  • VAT:

    Refund of VAT - refund claimed on the ground that its output tax liability is less than the input tax paid - there is no mismatch between the selling and purchasing dealers. Yet a demand is sought to be raised in respect of alleged mismatch. - Petition allowed.


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2019 (5) TMI 834
  • Income Tax

  • 2019 (5) TMI 857
  • 2019 (5) TMI 856
  • 2019 (5) TMI 855
  • 2019 (5) TMI 854
  • 2019 (5) TMI 853
  • 2019 (5) TMI 852
  • 2019 (5) TMI 851
  • 2019 (5) TMI 850
  • 2019 (5) TMI 849
  • 2019 (5) TMI 848
  • 2019 (5) TMI 847
  • 2019 (5) TMI 846
  • 2019 (5) TMI 845
  • 2019 (5) TMI 835
  • 2019 (5) TMI 844
  • 2019 (5) TMI 843
  • 2019 (5) TMI 842
  • 2019 (5) TMI 841
  • 2019 (5) TMI 840
  • 2019 (5) TMI 839
  • 2019 (5) TMI 838
  • 2019 (5) TMI 860
  • 2019 (5) TMI 859
  • 2019 (5) TMI 792
  • 2019 (5) TMI 791
  • 2019 (5) TMI 837
  • 2019 (5) TMI 790
  • 2019 (5) TMI 836
  • 2019 (5) TMI 858
  • Customs

  • 2019 (5) TMI 833
  • 2019 (5) TMI 832
  • 2019 (5) TMI 831
  • 2019 (5) TMI 830
  • 2019 (5) TMI 829
  • 2019 (5) TMI 828
  • 2019 (5) TMI 793
  • Corporate Laws

  • 2019 (5) TMI 827
  • 2019 (5) TMI 826
  • 2019 (5) TMI 825
  • 2019 (5) TMI 824
  • 2019 (5) TMI 823
  • Insolvency & Bankruptcy

  • 2019 (5) TMI 822
  • 2019 (5) TMI 821
  • 2019 (5) TMI 820
  • 2019 (5) TMI 819
  • FEMA

  • 2019 (5) TMI 818
  • 2019 (5) TMI 817
  • PMLA

  • 2019 (5) TMI 816
  • 2019 (5) TMI 815
  • Service Tax

  • 2019 (5) TMI 814
  • 2019 (5) TMI 813
  • Central Excise

  • 2019 (5) TMI 811
  • 2019 (5) TMI 812
  • 2019 (5) TMI 810
  • 2019 (5) TMI 809
  • 2019 (5) TMI 808
  • 2019 (5) TMI 807
  • CST, VAT & Sales Tax

  • 2019 (5) TMI 806
  • 2019 (5) TMI 805
  • 2019 (5) TMI 804
  • 2019 (5) TMI 803
  • 2019 (5) TMI 802
  • 2019 (5) TMI 801
  • 2019 (5) TMI 800
  • 2019 (5) TMI 799
  • 2019 (5) TMI 798
  • Wealth tax

  • 2019 (5) TMI 797
  • Indian Laws

  • 2019 (5) TMI 796
  • 2019 (5) TMI 795
  • 2019 (5) TMI 794
 

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