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Home e-Newsletters Index Year 2022 May Day 24 - Tuesday

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TMI Tax Updates - e-Newsletter
May 24, 2022

Case Laws in this Newsletter:

GST Income Tax Customs Insolvency & Bankruptcy PMLA Service Tax Central Excise Indian Laws



Highlights / Catch Notes

  • GST:

    Detention of goods alongwith the vehicle - breakdown of vehicle - non-extension of the validity of the e-way bill - intent to evade tax or not - the explanation offered by the respondent / writ petitioner was an acceptable explanation and a case cannot be made out that there was a deliberate and willful attempt on the part of the respondent / writ petitioner to evade payment of tax so as to justify invocation of the power u/s 129 of the Act. - Refund of amount paid allowed - HC

  • GST:

    Rectification of mistake - Levy of penalty - U/s 161 of the Act any rectification, which adversely affects any person is possible only after following the principles of natural justice. Since the order impugned substantially affects the assessee as penalty is sought to be imposed, which demand did not form part of notice dated 13.08.2020, without giving an opportunity of hearing, the orders under challenge are set aside. However, the respondents are permitted to proceed further by issuing a fresh notice and pass orders in accordance with law. - HC

  • GST:

    Benefit of exemption - Educational services - services supplied for the exams - As all criteria are complied with and the State Examination Board being the ‘educational institution’ in so far as it provides services by way of conduct of exams at Sr. No. 1 to 12 in the list given is eligible to avail the benefit of exemption - For the other activities like Diploma courses, applicant failed to submit that these are recognized by law, not eligible for exemption - conducting departmental examination is also not eligible for exemption - AAAR

  • Income Tax:

    Claim of deduction u/s 10A / 10AA on Disallowance made u/s 40(a)(ia) due to non deduction of TDS - Business Development Commission paid to its US based Associated Enterprises (AE) - there was no requirement on the part of the assessee to deduct TDS on such payments and accordingly, no disallowance u/s 40(a)(i) would be attracted - Since, the disallowance itself do not survive, the grounds raised in cross-appeal stand dismissed as infructuous. The assessee’s appeal stand dismissed as infructuous. - AT

  • Income Tax:

    TP Adjustment - Extraordinary one-time cost due to change in assumption for actuarial valuation - Since the actuary determined the amount of the provision to be created at the end of the year, the same became an operating cost without any need for reduction. We, therefore, do not find any force in the submission of the ld. AR that a part of the provision for approved gratuity etc. should be treated as non-operating when the full amount of such provision has been claimed as deduction for the year only. - AT

  • Income Tax:

    Reopening of assessment u/s 147 - Non consideration reply of assessee u/s 148A - Since the impugned order under Section 148A(d) has been passed on 5th April, 2022 i.e. after receipt of the detailed reply of the petitioner dated 4th April, 2022, the Assessing Officer should have considered the same as it was available on record. By not considering the reply of the petitioner dated 4th April, 2022, the mandate of Section 148A(c) has been violated as it casts a duty on the Assessing Officer, by using the expression ‘shall’ to consider the reply of the petitioner/assessee in response to the notice under Section 148A(b) before making an order under Section 148A(d). - HC

  • Income Tax:

    Validity of Faceless Assessment Order passed u/s 144B - variation as proposed in the draft assessment order or final draft assessment order or revised draft assessment order - a request for personal hearing through video conference denied - Order set aside - Matter restored back - HC

  • Income Tax:

    Stay of demand - 1st respondent as the appellate authority exercises quasi-judicial powers. Power to consider prayer for stay is incidental and ancillary to the power to hear appeals. As a quasi-judicial authority, Commissioner (Appeals) is not bound by the administrative circulars issued by CBDT. He has to apply his own independent mind in the facts and circumstances of each case. - HC

  • Income Tax:

    Penalty u/s 271(1)(c) - in the present case the result of assessing the income either under the head ‘income from other sources’ or u/s.68 of the Act, the liability to pay any additional tax does not arise and once there is no tax sought to be evaded, penalty u/s.271(1)(c) of the Act cannot be levied. - AT

  • Income Tax:

    Exemption u/s 11 - Profit motive - commercial activities as hit by the proviso to Sec. 2(15) - The majority of rent received by the assessee include rental from marriage functions and rent earned from other events like cultural, spiritual and educational seminars etc. It is nowhere the findings that the assessee has not adhered to the conditions as applicable to a charitable trust or any of the objects of the assessee are profit-motive. Under these circumstances, it could not be concluded that the assessee carried out separate commercial activities and it was hit by the proviso to Sec. 2(15). - AT

  • Income Tax:

    Taxability of a sum received as interest on enhanced compensation - Exemption u/s. 10(37) - Thus interest received under Section 28 of the LA Act by the assessee is part of enhanced compensation and is not liable for Income tax. - AT

  • Income Tax:

    Addition u/s 68 - unexplained cash credit - AO may invoke the provisions of section 147 against the person who where the owners of the bank accounts where the sum are diverted - If the account is found to be operated by the assessee, the assessee is also duty bound to state whether he is an accommodation entry provider or owner of the money. No doubt, onus lies on the assessee. If the assessee gives names of the beneficiary as mentioned in the bank account, the addition deserves to be made in the hands of the beneficiary.- Tri

  • Customs:

    Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between the Republic of India and Japan) Amendment Rules, 2022 - Notification

  • Customs:

    Anti-dumping duty (ADD) imposed on PU Leather originating in or exported from China PR - Notification

  • Customs:

    Rate of exchange of one unit of foreign currency equivalent to Indian rupees - For Import of Goods and Export Goods - Notification

  • Customs:

    Revocation of Customs Broker License - Forfeiture of security deposit - levy of penalty - It was incumbent on the appellant-Custom Broker that they conduct all possible enquiries through independent reliable sources/ documents to verify the credentials of the clients. No such effort made by the appellant and no such document relied upon have been placed on record. Thus, they have failed to observe due diligence in this regard and thus ended up facilitating fake importers. - AT

  • Customs:

    Levy of penalty u/s 112 of CA - Smuggling - Gold - The case of Revenue against these appellants have made out on the basis of their statements recorded at the time of investigation or the statement of the co-accused. All such statements were retracted soon thereafter. Further, these statements have also not stood the test of cross-examination during the adjudication proceedings - Levy of penalty against two persons set aside - Against one person, levy of penalty reduced from Rs. 1 lakh. to Rs. 25,000/-. - AT

  • DGFT:

    Enlistment of an Agency and amendment in details of an authorized agency under Appendix 2E of FTP, 2015-2020 - Nag-Vidarbha Chamber of Commerce- authorized to issue Certificate of Origin (Non-preferential) - Public Notice

  • Corporate Law:

    Companies (Incorporation) Second Amendment Rules, 2022 - Form INC-9 substituted - Notification

  • Indian Laws:

    Dishonor of Cheque - complaint has been lodged beyond the statutory period of limitation - the instant case learned ACJM has acted beyond his jurisdiction by issuing summons to the petitioner without even taking cognizance of the offence, contrary to the provision laid down in the Act, without having any occasion of being satisfied for condoning the delay. Taking of cognizance on satisfactory condonation of delay are statutory requirements which cannot be presumed on issuance of process to accused. The impugned order is bad in law and is not tenable under such circumstances. - HC

  • PMLA:

    Nature of transaction - sale and purchase of land or merely investment in the property - there is nothing on record to show that the petitioners were intentionally projecting or claiming any “proceeds of crime” as untainted one. Therefore, in the absence of the same, merely because in the scheduled offence, the CBI investigation suggest that the other accused who had applied for obtaining licence from the department of the State of Haryana in conspiracy with the State functionaries, wherein the petitioners are cited only as witnesses, in the absence of any material, the offence of money laundering under Section 3 of the PMLA is not attracted from the bare perusal of the complaint. - HC

  • SEBI:

    Modification in Cyber Security and Cyber Resilience framework of Stock Exchanges, Clearing Corporations and Depositories - Circular

  • SEBI:

    Revised format of security cover certificate, monitoring and revision in timelines - to protect the interest of investors - Circular

  • Central Excise:

    Area Bases Exemption - fixation of special rate representing the actual value addition - Recovery of refund / reversal of credit received by the petitioner as per the interim order - Later Hon'ble SC has upheld the validity of withdrawal of area based exemption - the Principal Commissioner, the Respondent No. 2 herein directed to decide the applications of the Petitioner on its own merit as regards the claim for fixation of the special rate to actual value addition to the manufactured goods of the given financial years - HC

  • Central Excise:

    Refund claim - provisional assessment not opted - It is settled that even though the assessee has not opted for provisional assessment but the duty was paid in excess admittedly the assessee’s claim of refund within stipulated time of one year, the refund is admissible. The refund cannot be rejected only on the ground that assessee has not opted for provisional assessment - AT

  • Central Excise:

    Recovery of CENVAT Credit - The finding/the reason quoted is apparently wrong as appellant has been an importer and not the manufacturer. Question of any amount of excise duty does not at all arise to ever be the liability of the appellant. Further the silence of any reference to the availment of credit in Section 28B of Customs Act or Section 11D of Central Excise Act is also observed to be an erroneous finding for the reason that irrespective both the sections are silent about the availment of credit but the simultaneous provisions in Rule 3 and Rule 5 of Cenvat Credit Rules entitle the appellant to avail the said credit. Admittedly the same has not been availed. Hence, the collection of amount of said duty from the customers was justified. - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (5) TMI 1078
  • 2022 (5) TMI 1077
  • 2022 (5) TMI 1076
  • 2022 (5) TMI 1075
  • 2022 (5) TMI 1072
  • 2022 (5) TMI 1074
  • 2022 (5) TMI 1073
  • Income Tax

  • 2022 (5) TMI 1065
  • 2022 (5) TMI 1064
  • 2022 (5) TMI 1063
  • 2022 (5) TMI 1033
  • 2022 (5) TMI 1032
  • 2022 (5) TMI 1071
  • 2022 (5) TMI 1070
  • 2022 (5) TMI 1062
  • 2022 (5) TMI 1031
  • 2022 (5) TMI 1069
  • 2022 (5) TMI 1030
  • 2022 (5) TMI 1061
  • 2022 (5) TMI 1060
  • 2022 (5) TMI 1059
  • 2022 (5) TMI 1068
  • 2022 (5) TMI 1029
  • 2022 (5) TMI 1028
  • 2022 (5) TMI 1058
  • 2022 (5) TMI 1057
  • 2022 (5) TMI 1056
  • 2022 (5) TMI 1054
  • 2022 (5) TMI 1027
  • 2022 (5) TMI 1026
  • 2022 (5) TMI 1025
  • 2022 (5) TMI 1067
  • 2022 (5) TMI 1066
  • 2022 (5) TMI 1055
  • Customs

  • 2022 (5) TMI 1050
  • 2022 (5) TMI 1049
  • 2022 (5) TMI 1053
  • 2022 (5) TMI 1052
  • 2022 (5) TMI 1051
  • Insolvency & Bankruptcy

  • 2022 (5) TMI 1048
  • 2022 (5) TMI 1047
  • 2022 (5) TMI 1046
  • 2022 (5) TMI 1045
  • 2022 (5) TMI 1023
  • PMLA

  • 2022 (5) TMI 1044
  • 2022 (5) TMI 1043
  • Service Tax

  • 2022 (5) TMI 1042
  • Central Excise

  • 2022 (5) TMI 1039
  • 2022 (5) TMI 1038
  • 2022 (5) TMI 1037
  • 2022 (5) TMI 1036
  • 2022 (5) TMI 1035
  • 2022 (5) TMI 1041
  • 2022 (5) TMI 1040
  • Indian Laws

  • 2022 (5) TMI 1034
  • 2022 (5) TMI 1024
 

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