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Home e-Newsletters Index Year 2019 July Day 11 - Thursday

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TMI Tax Updates - e-Newsletter
July 11, 2019

Case Laws in this Newsletter:

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



TMI SMS


Highlights / Catch Notes

  • GST:

    Evasion of GST - Jurisdiction of inspect and search - cotton seeds and bales - even if the authority has reason to believe that the goods liable to be confiscated are likely to be secreted, the authority will have the power to pass an order of prohibition pursuant to the order of seizure.

  • GST:

    Refund of IGST - Export of goods in July 2017 - zero rated supplies - simultaneous duty drawback claim - circular dated 9.10.2018 explains the provisions of the drawback and it has nothing to do with the IGST refund. Thus, the circular will not save the situation for the respondents - Refund to be allowed with 7% interest.

  • GST:

    Search and seizure - pure service - parking lots - under Article 3 of the Notification, pure service by way of any activity in relation to any function entrusted to a Municipality under Article 243W of the Constitution is exempted from payment of GST Act - interim order staying all further proceedings for realization of GST for municipal parking lots which, prima facie, is not payable

  • Income Tax:

    Reopening of assessment - Substance over Form - Failure to disclose material fact - Duty of the AO to make an enquiry to test the correctness of the disclosure made even if the statutory forms signed and certified by the Chartered Accountant

  • Income Tax:

    Dis-allowance of the commission paid to non-resident foreign agents - under invoicing - Non disclosure of Commission to the agent paid at the time of import - There is no tax effect whatsoever by reason of the expenditure made by foreign buyers by way of commission paid outside India. - Claim cannot be denied.

  • Income Tax:

    Non adjudication of grounds by tribunal - Liability of TDS u/s 194C - Tribunal ought to have rendered a finding on the grounds raised by the assessee with regard to the applicability of Section 194C on the IUC paid to the other telecom operators and remanded on alternative ground - without any finding on the applicability of Section 194C the order passed by the Tribunal should be and shall be read as an open remand to the AO

  • Income Tax:

    Exemption u/s 11 - registration u/s 12AA - the assessee is carrying out certain activities which can be termed as religious activities but in our considered opinion can also be construed as a charitable activities - there is no bar in granting a registration u/s 12AA to the Application trust for religious purposes - directed to grant registyration

  • Income Tax:

    Allowability of interest expenditure u/s 36(1)(iii) - prior to its amendment by Finance Act, 2015 - prohibition of claim of interest on revenue account only where capital was borrowed for acquisition of an asset for ‘extension of existing business or profession’ - since capital borrowed resulted in acquisition of asset without resulting in extension of existing business per se - revenue expenditure

  • Income Tax:

    Exemption u/s 10(20A) - Delhi metro - the assessee failed to satisfy the condition of “authority constituted by under any Central, State of Provincial Act”, it is merely registered or incorporated under the Companies Act, 1956 - no exemption

  • Income Tax:

    Deduction u/s 54F - claim made for the first time before the CIT(A) - the appellate authority has power to consider a claim not made in the return and deduction u/s 54F was duly allowable where the property was purchased in the name of the wife of the assessee

  • Income Tax:

    Interest earned on short term deposits - capital receipt OR Income from Other Sources - two Authorities below and the Tribunal, proceeded on the legal principle without making an in-depth study on the facts - the settled legal principle is that the law has to be applied to the facts of the given case and not in the reverse - remanded to AO to record his finding on facts

  • Income Tax:

    Capital gain on sale of Floor Space Index(FSI)/transfer of development rights(TDR) - FSI/TDR rights have accrued in favour of the assessee following promulgation of Development Control Rules for Greater Mumbai, 1991 and generated by the plot itself and there is no cost of acquisition - not liable for any capital gain tax

  • Income Tax:

    Deduction u/s 80IA - claim not made in the return of income - records clearly show that all the details were available with the AO and no fresh details were required to be filed or taken into consideration - the appellate authorities can allow additional grounds to be canvassed, if it is found to be bonafide and the omission to seek for such relief was a bonafide omission - deduction allowed

  • Income Tax:

    Addition u/s 69 - value of gold and diamond in Peak in WPS account - the details were culled out from the books maintained by the assessee - no doubt, assessee did not offer convincing explanation before the AO, but Tribunal was convinced with the explanation read with the statements given by the customers and job workers in remand report - no addition called far

  • Income Tax:

    Revision u/s 263 - Addition u/s 2(22)(e) - alleged loan & advances to concern - in assessment proceedings the Assessee had in fact placed audited statements which showed that sum received through AAIPL had been converted to shares allotted to AAIPL during AY 2014-15 - revenue has not been able to persuade this Court that the amount remained in the nature of loans and advances - no revision

  • Income Tax:

    Deduction u/s 80IB - process involved in converting Carcass into meat - final product produced is commercially different from the raw-material (Buffalo Carcasses) and the process of production involved a number of steps and processes which resulted not only in qualitative changes, but also a distinct product for end-use of the consumer - deduction allowable

  • Income Tax:

    Compensation received on termination of network participation agreement from Citibank - Income deemed to accrue or arise in India - received does not fit into any of the definition of royalty either under IT Act or as per DTAA - it falls u/s.28(va)(b) as the business receipt and As per Article 7 of Indo-US DTAA, same is taxable only in USA and not in India - matter however, remanded to inquire for existence of PE in India

  • Customs:

    Anti dumping duty - imports of extra Float glass and processed glass - ADD has been imposed upon ‘clear’ and ‘tinted’ variety of float glass - since both types of glasses are different and ‘extra clear glass’ is not manufactured in India then there is no reason to cause injury to the domestic glass industry - not liable of ADD

  • Indian Laws:

    Dishonor of cheque - insufficiency of funds - present petitioners were Directors and were in charge of and responsible for day to day affairs and management of accused company and therefore, they are liable for prosecution.

  • IBC:

    The Liquidator has rightly rejected the claim of the Applicant on the ground that the Applicant is not a Financial Creditor of the Corporate Debtor and the liability of the Corporate Debtor is restricted to the pledge of shares only which has already been meted with.

  • Service Tax:

    Applicability of exemption Notification - pure service - service was rendered in relation to establishment of electric sub-stations and construction of boundary wall of a vacant piece of land for NOIDA Authority - construction activity related to the services provided to Noida Authority, which is admittedly not for commercial purpose - exempt

  • Service Tax:

    Residential Complex Service - no positive evidence on record to establish that there were any common facilities such as park, lift, parking space, community hall or affluent treatment system - not a Residential Complex Service - ST demand cancelled

  • Service Tax:

    Classification of services - Manpower Recruitment/Supply service - the contract is for handling the agricultural produce which is a Work Order though the payment has been made on the strength of man-days provided and not for supplying the manpower service - demand on the said service is set-aside along with penalty and interest

  • Service Tax:

    Condonation of delay of more than 2½ years - not aware of order - concur with the findings arrived by the Tribunal that the appellant had failed to offer proper explanation but at the same time, the Tribunal also could have considered about allowing the petitions on taking a liberal attitude, in terms of cost, in order to compensate the prejudices which may be caused to the opposite side - condoned the delay with cost

  • Central Excise:

    Classification of goods - Power Gold - Bio Gold - NPK Fertilizer, Organic Manure and Soil Conditioner - No reason to classify the products under 38249090, which is a residuary entry for miscellaneous chemical products.

  • Central Excise:

    Re-credit of CENVAT - the Respondent had paid service tax from cenvat credit, but the same was objected by the department then paid the said service tax amount in cash - Once they paid the service tax in cash, they become eligible for the re-credit of amount paid by them from cenvat

  • Central Excise:

    CENVAT Credit - input service - the distributor/commission agent appointed by the appellant outside India has to make every effort to promote the products manufactured by the appellant - it is thus not merely an activity of sale of finished products - explanation added with effect from 03.02.2016 was merely clarificatory in nature applicable to commission paid for sales commission activities prior to 03.02.2016 - eligible for credit

  • Central Excise:

    Time Limitation of Rectification Application - Section 35C(2) of the Central Excise Act, 1944 - the period of limitation of six months was substituted for a period of four years by the Finance Act 2002 with effect from 11.05.2002 - no merit in the contention that the period of limitation cannot be applied, where the application filed by the Assessee

  • VAT:

    Audit assessment u/s 34(8A) of the VAT Act - The provisions of section 34(8A) cannot be understood or interpreted as enabling or empowering the Assessing Officer to correct an error, which might have been committed in the course of passing the audit assessment order- not permitted


TMI Short Notes


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2019 (7) TMI 472
  • 2019 (7) TMI 471
  • 2019 (7) TMI 470
  • Income Tax

  • 2019 (7) TMI 436
  • 2019 (7) TMI 435
  • 2019 (7) TMI 434
  • 2019 (7) TMI 405
  • 2019 (7) TMI 404
  • 2019 (7) TMI 403
  • 2019 (7) TMI 402
  • 2019 (7) TMI 443
  • 2019 (7) TMI 433
  • 2019 (7) TMI 410
  • 2019 (7) TMI 409
  • 2019 (7) TMI 408
  • 2019 (7) TMI 407
  • 2019 (7) TMI 406
  • 2019 (7) TMI 432
  • 2019 (7) TMI 412
  • 2019 (7) TMI 411
  • 2019 (7) TMI 442
  • 2019 (7) TMI 413
  • 2019 (7) TMI 417
  • 2019 (7) TMI 431
  • 2019 (7) TMI 430
  • 2019 (7) TMI 429
  • 2019 (7) TMI 428
  • 2019 (7) TMI 416
  • 2019 (7) TMI 415
  • 2019 (7) TMI 441
  • 2019 (7) TMI 440
  • 2019 (7) TMI 439
  • 2019 (7) TMI 438
  • 2019 (7) TMI 437
  • 2019 (7) TMI 427
  • 2019 (7) TMI 426
  • 2019 (7) TMI 425
  • 2019 (7) TMI 424
  • 2019 (7) TMI 423
  • 2019 (7) TMI 422
  • 2019 (7) TMI 421
  • 2019 (7) TMI 420
  • 2019 (7) TMI 419
  • 2019 (7) TMI 418
  • 2019 (7) TMI 414
  • Customs

  • 2019 (7) TMI 469
  • 2019 (7) TMI 467
  • 2019 (7) TMI 466
  • Insolvency & Bankruptcy

  • 2019 (7) TMI 465
  • 2019 (7) TMI 464
  • Service Tax

  • 2019 (7) TMI 463
  • 2019 (7) TMI 462
  • 2019 (7) TMI 447
  • 2019 (7) TMI 448
  • Central Excise

  • 2019 (7) TMI 459
  • 2019 (7) TMI 445
  • 2019 (7) TMI 458
  • 2019 (7) TMI 457
  • 2019 (7) TMI 444
  • 2019 (7) TMI 461
  • 2019 (7) TMI 446
  • 2019 (7) TMI 460
  • CST, VAT & Sales Tax

  • 2019 (7) TMI 456
  • 2019 (7) TMI 455
  • 2019 (7) TMI 454
  • 2019 (7) TMI 453
  • 2019 (7) TMI 452
  • 2019 (7) TMI 468
  • Indian Laws

  • 2019 (7) TMI 451
  • 2019 (7) TMI 450
  • 2019 (7) TMI 449
 

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