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Home e-Newsletters Index Year 2022 June Day 25 - Saturday

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TMI Tax Updates - e-Newsletter
June 25, 2022

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Securities / SEBI Insolvency & Bankruptcy FEMA Service Tax Central Excise CST, VAT & Sales Tax Indian Laws



Highlights / Catch Notes

  • GST:

    Seeking grant of bail - wrongful availment of Input Tax Credit - this Court after considering all the aspects of the matter, particularly the period of detention and the amount involved finds appropriate that if the applicant deposits Rs.70 lakhs under protest or admission of the disputed amount, which would be adjusted in accordance with law, the applicant can be enlarged on bail with the conditions imposed. - HC

  • GST:

    Profiteering - supply of Services by way of admission to exhibition of cinematography films - There is no dispute relating to the fact that the Respondent has increased the base prices of the admission tickets in respect of the regular category and continues to charge the cine-goers at the prevailing rates despite a reduction in the GST - the Respondent has realized an additional amount to the tune of Rs. 12,83,999/-from the recipients of 'Regular Category' which included both the profiteered amount and GST on the said profiteered amount. Thus the profiteering amount is determined as Rs. 12,83,999/-as per the provisions of Rule 133 (1) of the CGST Rules, 2017 in respect of 'Regular Category' only. - NAPA

  • GST:

    Profiteering - Project Suncity Avenue-102 - The Authority determines that the Respondent has profiteered an amount of Rs. 2,62,56,652/-. Therefore, given the above facts, the Authority under Rule 133 (3) (a) of the CGST Rules orders that the Respondent shall reduce the price to be realized from the buyers of the flats commensurate with the benefit of ITC received by him. - However, the penalty under Section 171 (3A) cannot be imposed on the Respondent retrospectively. - NAPA

  • Income Tax:

    Validity of reopening of assessment u/s 147 - CIRP proceedings - The proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be pressed into service to dilute the rights of the Income Tax Department under the Income Tax Act, 1961 to re-open the assessment under Section 148 of the Income Tax Act, 1961. - Income Tax Department was not precluded from reopening the assessment completed under Section 143(3) of the Income Tax Act,1961. - HC

  • Income Tax:

    Demand against company merged - scope of Proceedings under provisions of IBC - As position of law in this regard is that, the proceeding under provisions of Insolvency and Bankruptcy Code, 2016 overrides the proceedings under the Income Tax Act, 1961. In other words, all the proceedings initiated or pending before different authorities shall stand abated in terms of approval of resolution plan by the NCLT. - AT

  • Income Tax:

    Credit of Dividend Distribution Tax (DDT) u/s. 115-O - technical default committed at the time of filing of challan - In our view, the assessee has already approached the CPC thrice and also approached Ld. CIT(Appeals) for redressal of its grievance and there is no denial that the assessee has paid and deposited DDT within the due date. It is a fit case where the assessee should be granted necessary credit of DDT paid. - AT

  • Income Tax:

    Capital gain computation - FMV determination - reference to DVO - indexed cost of acquisition - assessee’s land is situated in New City Light Area of Surat, which is costly area and prices of the land in the said area is very higher side. Therefore, considering the entirety of the facts and taking a holistic view the fair market value @ 607 per square meter should be adopted to meet the end of justice. Accordingly, the AO is directed to apply rate of ₹ 607 per sq. meter for calculation of indexed cost of acquisition for the purpose of computation of long-term capital gain in the hands of the assessee. - AT

  • Income Tax:

    Ex-parte order passed by CIT- A - Denial of natural justice - the principle of audi alteram partem is the basic concept of natural justice. The expression "audi alteram partem" implies that a person must be given an opportunity to defend himself. This principle is sine qua non of every civilized society. - AT

  • Income Tax:

    Deduction u/s 80IA in respect of profits of the eligible undertaking - So far as interest on delayed payment from customers is concerned, such payments were made by various members have direct nexus with the profit and gains derived from undertaking. So far as interest earned on deposits with GEB is concerned, the same is not derived from the business activity of the assessee nor flowing directly from the industrial undertaking therefore, not eligible for deduction under Section 80IA of the Act. Thus, the assessee partly succeeded on this ground of appeal. - AT

  • Income Tax:

    Benefit of Section 54EC - Amount invested in bonds issued by NHAI - Period of limitation for investment - the investment made by the Appellant in bonds issued by NHAI on 06.03.2013 falls with the period of six calendar months and thus, meets the requirement of Section 54EC of the Act. - the Appellant is entitled to benefit of section 54EC of the Act in respect of amount invested in bonds issued by NHAI. - AT

  • Income Tax:

    Validity of Reassessment proceedings u/s 147 - There was no failure to disclose material facts and failure to place a version favourable to the Revenue cannot be a reason to reopen the assessment in the light of the undisputed factual material referred by us extensively it is apparent that the re-opening was fully impermissible in law. The facts which are taken from the Auditor’s report, computation of income and return filed itself would indicate that the assessee had disclosed what was relevant and necessary for the purpose of making assessment. The assessee did not hold back any document nor failed to supply any information. - AT

  • Income Tax:

    Nature of expenditure - Allowability of general management fees incurred when the assessee is still in the process of completing the project of IT/ITES project - the revenue expenditure incurred till the business is set-up should only add to the capital cost of the project. - The doctrine res-judicata has no application to the income-tax proceedings merely because the claim came to be in the earlier years, it is does not mean that the Assessing Officer should allow the same when he is conscious of the non-allowability of the claim in view of well settled position of law in this issue. - AT

  • Customs:

    Classification of imported goods - Cards (Populated Printed Circuit Boards) OSLM-5-100G-WL3N for DWDM Equipment-Photonic Service Switch (PSS) 1830 - The Department has not drawn any samples and did not obtain technical opinion to support their claim that the impugned goods are complete machines or equipment capable of independent function themselves so as to merit classification under CTH 85176270. On the contrary, the respondents could demonstrate by technical literature; samples that the goods imported by them are Populated Circuit Boards (PCBs) used in PSS 1830 and therefore, the impugned goods are parts of PSS and as such merit classification CTH 85177010. - AT

  • Indian Laws:

    Power to enhance the sentence awarded by the trial court - Dishonor of Cheque - insufficiency of funds - hile the Trial Court has consciously imposed fine of Rs. 5,000/- and no compensation ordered, in the appeal by the accused, no power vested on the Appellate Court to enhance the sentence ordering compensation in the absence of appeal by the complainant. The compensation is not an independent component under Section 138 of Negotiable Instruments Act which is a special Act. It should be part of the fine amount and fine is part of sentence. It is a trite principle of law that, in appeal preferred by the accused person sentence cannot be enhanced. Therefore, the order of the Appellate Court perverse, contrary to law, hence liable to be set aside. - HC

  • Indian Laws:

    Dishonor of Cheque - vicarious liability of Director - The petitioners admit that the cheque was drawn by them and handed over to the respondent-complainant. However, they contend that the cheques were issued only as security for the balance amount, which is liable to pay after certification. If that is so, the petitioners ought not to have given those cheques with specific dates and amounts without certification. After presentation of the cheques and institution of the complaint - the petitioners herein are liable to face the trial and prove their innocence - HC

  • Indian Laws:

    Validity of suit promissory notes / negotiable instrument - material alteration - The evidence on record clearly points out alteration of numerical '1' as '7', changing the year of execution from 2001 to 2007. Once it is established that there is material alteration to the year in the negotiable instrument, which is crucial to seek enforcement of the liability, Section 87 comes into operation. Therefore, the plaintiff cannot seek enforcement of alleged liability from the defendant. - HC

  • Service Tax:

    SVLDRS - rejection of application for non payment of tax in time - difficulty in making payment through NEFT / RTGS - The facts on record indicates that the amount of Rs.41,331.20/- was indeed paid by the petitioner which however was re-credited back due to technical glitches. Therefore, the legitimate the benefit of the above scheme cannot be denied to the petitioner. Mistake is on account of the system evolved which failed to accept the payment. - Relief granted - HC

  • Service Tax:

    Levy of service tax - applicability of Reverse Charge Mechanism - Business Auxiliary Service - he services have been provided by the foreign agents to the foreign site office/branch office of Appellant and thus, the service cannot be said to be received in India when the same is provided outside India, used outside India and paid outside India. - The payment of local tax abroad will be an indicator to decide whether a service is provided and consumed outside India or has been consumed/received in India - the impugned order confirming the service tax liability on the appellant cannot be sustained. - AT

  • Service Tax:

    Levy of service tax - applicability of Reverse Charge Mechanism - the services have been provided by the foreign Insurance Company to the foreign site office/branch office of Appellant and thus, the service cannot be said to be received in India when the same is provided outside India, used outside India and paid outside India. In view of the above, it is found that the impugned order is not sustainable with reference to the above-mentioned Service Tax liability confirmed against the appellant. - AT

  • Central Excise:

    Refund of CENVAT credit of CVD and SAD paid by them - appellant has paid the duties only after issuing SCN - there is no allegation of any fraud, collusion or suppression of facts with intent to evade payment of duty. There is no evidence placed before me to establish that the duties were paid after adjudication and rendering a finding of fraud, collusion or suppression of fact with intent to evade payment of duty. In such circumstances, the credit cannot be denied - the appellant is eligible for credit of CVD and SAD paid by them. - AT

  • VAT:

    Appealable order or not - endorsement on the application made by the petitioner - the argument of the learned Government Pleader that appeal itself may not lie cannot be accepted. The word 'any order' referred to in Section 31 cannot be limited to only assessment orders. If that was the intention of the Legislature, the same would have been incorporated therein. In the absence of the same, the endorsement made by the Assistant Commissioner on 21.11.2019 can be challenged in an appeal. - HC


Articles


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (6) TMI 1082
  • 2022 (6) TMI 1078
  • 2022 (6) TMI 1076
  • 2022 (6) TMI 1077
  • 2022 (6) TMI 1075
  • Income Tax

  • 2022 (6) TMI 1073
  • 2022 (6) TMI 1072
  • 2022 (6) TMI 1071
  • 2022 (6) TMI 1070
  • 2022 (6) TMI 1068
  • 2022 (6) TMI 1067
  • 2022 (6) TMI 1074
  • 2022 (6) TMI 1080
  • 2022 (6) TMI 1069
  • 2022 (6) TMI 1066
  • 2022 (6) TMI 1065
  • 2022 (6) TMI 1064
  • 2022 (6) TMI 1063
  • 2022 (6) TMI 1062
  • 2022 (6) TMI 1079
  • 2022 (6) TMI 1061
  • 2022 (6) TMI 1060
  • 2022 (6) TMI 1059
  • 2022 (6) TMI 1028
  • 2022 (6) TMI 1027
  • 2022 (6) TMI 1058
  • 2022 (6) TMI 1057
  • 2022 (6) TMI 1056
  • 2022 (6) TMI 1081
  • 2022 (6) TMI 1053
  • 2022 (6) TMI 1052
  • Customs

  • 2022 (6) TMI 1051
  • Corporate Laws

  • 2022 (6) TMI 1050
  • 2022 (6) TMI 1049
  • Securities / SEBI

  • 2022 (6) TMI 1048
  • Insolvency & Bankruptcy

  • 2022 (6) TMI 1047
  • 2022 (6) TMI 1046
  • 2022 (6) TMI 1045
  • 2022 (6) TMI 1044
  • FEMA

  • 2022 (6) TMI 1043
  • Service Tax

  • 2022 (6) TMI 1055
  • 2022 (6) TMI 1042
  • 2022 (6) TMI 1041
  • Central Excise

  • 2022 (6) TMI 1040
  • 2022 (6) TMI 1054
  • CST, VAT & Sales Tax

  • 2022 (6) TMI 1039
  • 2022 (6) TMI 1038
  • Indian Laws

  • 2022 (6) TMI 1037
  • 2022 (6) TMI 1036
  • 2022 (6) TMI 1035
  • 2022 (6) TMI 1034
  • 2022 (6) TMI 1033
  • 2022 (6) TMI 1032
  • 2022 (6) TMI 1031
  • 2022 (6) TMI 1030
  • 2022 (6) TMI 1029
 

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