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Home e-Newsletters Index Year 2022 July Day 14 - Thursday

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TMI Tax Updates - e-Newsletter
July 14, 2022

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Detention of vehicle - Levy of tax with interest and penalty - mismatch between the registration number of the vehicle and the vehicle number mentioned in the e-way bill - Matter is remanded back to the file of respondent No.1, who shall hear both sides including the petitioner and thereafter, pass fresh order in accordance with law and in the light of the decision rendered by this Court in SAME DEUTZFHR INDIA P. LTD. - HC

  • GST:

    Applicability of CGST and SGST Tax Rate - composite supply of works contract - listed works executed for Andhra Pradesh Industrial Infrastructure Corporation (APIIC) - it is evident that all of them are meant for business purpose only. Moreover, the applicant did not provide any information or documentary proof clarifying that the constructions are for use other than for commerce, industry, or any other business or profession, to be eligible for concessional rate of 12% (6% CGST + 6% SGST) - applicable rate of tax is 18% - AAR

  • Income Tax:

    Exemption u/s 10B - High Court has committed a grave error in observing and holding that the requirement of furnishing a declaration under Section 10B (8) is mandatory, but the time limit within which the declaration is to be filed is not mandatory but is directory. The same is erroneous and contrary to the unambiguous language contained in Section 10B (8) - We hold that for claiming the benefit u/s 10B (8) the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139(1) are to be satisfied and both are mandatorily to be complied with. - SC

  • Income Tax:

    Application for Income tax settlement rejected u/s 245D - This court is of the view that the restrictive circumstances under which an Interim Board can entertain an application is applicable, only when an application is filed afresh or pending and not applicable to cases, where the High Court in exercise of its powers under Article 226 of the Constitution of India, set asides an earlier order and remands back the matter for fresh consideration. The powers of the High Court which emanate from the Constitution, cannot be curtailed by a law made by the legislature, such law being subordinate to the Constitution. - HC

  • Income Tax:

    Addition towards depreciation on JCB Machine - JCB machine was used for manual loading and unloading of the finished goods, which otherwise would have required huge manpower. Since the JCB machine was used for loading and unloading of material and finished products, we see no reason to interfere in the impugned order overturning the assessment order on the ground that there was no use of JCB machines in the assessee’s business. - AT

  • Income Tax:

    Addition u/s 41(1) - Principal amount waived off by the bank which was utilized for trading activity is capital amount - Since loans have been actually utilized for the above said purpose, which are on the capital front and when the same is written off during the year on a one time settlement, it is nothing but capital receipt and not a revenue receipt. - Not taxable - AT

  • Income Tax:

    Addition u/s 68 of share application money - once the assessee is able to prove that the money received by it was returned in the account of the same party, then there remains no doubt to draw an inference that the advances received by the assessee were unexplained cash credit. Therefore in our considered view, the assessee has discharged its onus imposed under section 68 of the Act. - AT

  • Income Tax:

    Penalty u/s 221 r.w.s. 140A - default of non-payment of taxes on due date - Provisions of Section 140A (3) can apply only when there is a self-assessment tax payable with respect to the return filed u/s 139 of the act. Further, if there is a failure u/s 140 A (3) then only assessee can be held to be “assessee in default”. As in the present case there is no return of income filed u/s 139 of the income tax act, therefore any penalty based on that return, does not survive. - AT

  • Income Tax:

    Validity of reopening of assessment u/s 147 - by the time, assessment order for the assessment year 2004-05 was passed on 31.12.2010, six year period for reopening of assessment for the assessment years 2002-03 & 2003-04 was expired on 31.03.2009 & 31.03.2010 and thus, we are of the considered view that reopening of assessment in terms of section 150(1) of the Act, is clearly barred by limitation, because of exception provided u/s. 150(2) of the Income Tax Act, 1961, and thus, notice issued u/s. 148 and consequent assessment order passed u/s. 143(3) r.w.s. 147 for the assessment years 2002-03 & 2003-04 is barred by limitation. - AT

  • Income Tax:

    Unsecured loan u/s 68 - Bogus cash credits - where there is a statutory rebuttable presumption against the assessee, as in case of cash credits etc., u/s 68 or unexplained investment u/s 69, the initial burden of proof is on the assessee to show that the cash credit is genuine or the investment is not unexplained. The AO should, therefore, always examine as to who has to discharge the burden of proof. - AT

  • Income Tax:

    Addition on account of excess stock of jewellery found during survey - addition u/s 69A and not under Income from Business - On a careful reading of the specific reasons for surrendering the income wherein very clearly the assessee states that; "it is submitted that certain discrepancies were observed related to cash deposit/income etc. However, is, order to by peace of mind and to avoid any litigation and is order to settle the group cases of the persons covered " - The wordings are very clear and categoric. We have taken into consideration the PMGKY Scheme 2016 and have also taken into consideration two Circulars which clarify those i.e. Circular No. 2/2017 and 9/2017. - Additions deleted - AT

  • Income Tax:

    Addition u/s 68 - bogus liability allegedly shown by the assessee - receipt of the shares on loan - It appears to us that the nature of transactions as well as the modus operandi involved in the same was not properly understood by the AO while doubting the genuineness of the same while CIT(A) not only understood the same properly but also appreciated the exact nature of transactions to hold that the said transactions were genuine which were entered into by the assessee in the normal course of its business as a dealer in shares. - AT

  • Income Tax:

    Bad debts - the assessee has not satisfied the condition laid down in section 36(1)(vii) r.w.s. 36(2) - As per section 36(2) of the Act, deduction shall not be allowed unless such debt or part there of has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year, or represents money lent in the ordinary course of business or banking or money lending which is carried on by the assessee. Being so, in our opinion, the assessee cannot claim the written off investment in the field of capital as bad debt or business expenditure. - AT

  • Customs:

    Recovery of customs duty - warehoused goods - priority to recover dues - attachment of property - charge created by the second respondent Bank / financial institution, being a secured creditor - the second respondent bank being a secured creditor and created right over the property in question prior to the alleged attachment raised by the appellant and hence, they have preferential right over the claim of the appellant. - HC

  • Direct Taxes:

    Benami Property Transaction - cross examination of witnesses - As in the absence of any provision of law as well as the compelling circumstances warranting the respondent authorities to provide an opportunity of cross examination of witnesses, whose statements have been relied on by the respondent authorities to the appellant at the stage of section 24 proceedings, the plea raised by the appellant in this regard, cannot be countenanced. - order for continuing the provisional attachment order of the property as an interim measure sustained - HC

  • Indian Laws:

    Dishonor of Cheque - the pre-condition of filing a complaint under Section 138 of the NI Act of sending a statutory notice has not been satisfied in the present case. Therefore, no cause of action arose in favour of the respondent/complainant to file the subject complaint. He, therefore, could not have instituted the complaint nor the trial court could have taken cognizance of the offence and issued process against the petitioner. - HC

  • Indian Laws:

    Contempt of Court - Considering the facts and circumstances on record and the facts that the Contemnor never showed any remorse nor tendered any apology for his conduct, we impose sentence of four months and fine in the sum of Rs.2,000/- upon the Contemnor. The fine shall be deposited in the Registry of this Court within four weeks and upon such deposit, the amount shall be made over to the Supreme Court Legal Services Committee. In case the amount of fine is not deposited within the time stipulated, the Contemnor shall undergo further sentence of two months. - SC

  • Indian Laws:

    Condonation of delay of about 9 years and 4 months in filing application - A litigant should not be penalised for the laches or misconduct on the part of his learned advocate. In the present case, though the petitioner should have been more diligent in pursuing his case before this Court, an opportunity should be granted to him to contest his appeal on merit. - Delay condoned with cost - HC

  • Service Tax:

    Consulting Engineer Service - there is no logic and/or reason to exclude a” body corporate” from the definition of “consulting engineer” and to exclude the services of a “consulting engineer” rendered by a “body corporate” to exclude and/or exempt from the service tax net. Such an interpretation would lead to anomaly and absurdity. As observed hereinabove, it will create two different classes providing the same services which could not be the intention of the Parliament/Legislature. - SC

  • Central Excise:

    Interest on demands made by the appellant during investigation - any deposits made if have not been confirmed as duty the time bar of Section 11B of Central Excise Act cannot be invoked. It stands clear that the amount in question was not the amount of duty after the Tribunal set aside the duty liability of the appellant. Hence, it is held that section 11 B is not applicable to such deposits. - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (7) TMI 566
  • 2022 (7) TMI 565
  • 2022 (7) TMI 564
  • 2022 (7) TMI 563
  • 2022 (7) TMI 562
  • 2022 (7) TMI 561
  • Income Tax

  • 2022 (7) TMI 560
  • 2022 (7) TMI 556
  • 2022 (7) TMI 555
  • 2022 (7) TMI 554
  • 2022 (7) TMI 553
  • 2022 (7) TMI 552
  • 2022 (7) TMI 559
  • 2022 (7) TMI 551
  • 2022 (7) TMI 550
  • 2022 (7) TMI 549
  • 2022 (7) TMI 548
  • 2022 (7) TMI 547
  • 2022 (7) TMI 546
  • 2022 (7) TMI 545
  • 2022 (7) TMI 544
  • 2022 (7) TMI 543
  • 2022 (7) TMI 542
  • 2022 (7) TMI 511
  • 2022 (7) TMI 541
  • 2022 (7) TMI 540
  • 2022 (7) TMI 539
  • 2022 (7) TMI 538
  • 2022 (7) TMI 558
  • 2022 (7) TMI 537
  • 2022 (7) TMI 536
  • 2022 (7) TMI 535
  • 2022 (7) TMI 557
  • 2022 (7) TMI 534
  • 2022 (7) TMI 533
  • 2022 (7) TMI 532
  • 2022 (7) TMI 531
  • Benami Property

  • 2022 (7) TMI 530
  • 2022 (7) TMI 529
  • 2022 (7) TMI 528
  • Customs

  • 2022 (7) TMI 527
  • 2022 (7) TMI 526
  • Insolvency & Bankruptcy

  • 2022 (7) TMI 525
  • Service Tax

  • 2022 (7) TMI 524
  • 2022 (7) TMI 523
  • 2022 (7) TMI 522
  • Central Excise

  • 2022 (7) TMI 521
  • 2022 (7) TMI 520
  • CST, VAT & Sales Tax

  • 2022 (7) TMI 519
  • 2022 (7) TMI 518
  • Indian Laws

  • 2022 (7) TMI 517
  • 2022 (7) TMI 516
  • 2022 (7) TMI 515
  • 2022 (7) TMI 514
  • 2022 (7) TMI 513
  • 2022 (7) TMI 512
  • 2022 (7) TMI 510
 

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