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Home e-Newsletters Index Year 2022 July Day 2 - Saturday

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TMI Tax Updates - e-Newsletter
July 2, 2022

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Profiteering - allegation is that the benefit of reduction on the ITC not passed on by way of commensurate reduction in the price - The Respondent cannot deny the benefit of tax reduction to his customers and enrich himself at the expense of his buyers as Section 171 provides clear cut methodology and procedure to compute the benefit of tax reduction and the profiteered amount. - The Respondent was legally not required to collect the excess GST and therefore, he has not only violated the provisions of the CGST Act, 2017 but has also acted in contravention of the provisions of Section 171 (1) of the said Act as he has denied the benefit of tax reduction to the ordinary buyers by charging excess GST. - NAPA

  • GST:

    Profiteering - levy of penalty - supply of the products manufactured and sold by the Respondent - it is evident from the narration of facts that Respondent has denied the benefit of tax reduction to the customers in contravention of the provisions of Section 171(1) of the CGST Act, 2017 and he has thus committed an offence under Section 171(3A) of the above Act and therefore, he is liable for imposition of penalty under the provisions of the above Section with effect from 01.01.2020 onwards for the amount profiteered. - NAPA

  • Income Tax:

    Revenue expenditure or capital expenditure - Allowability of expenses on acquisition of clientele and technical human resource i.e., employees to execute the contract - it is not emerging that the assessee has acquired either complete business i.e., the profit apparatus or any capital asset. In such case, the expenses incurred are to be allowed as revenue and assessee has only amortized these expenses in 5 years and the same are allowable as revenue expenditure u/s.37 of the Act. - AT

  • Income Tax:

    Penalty @ 10% u/s 271AAA - undisclosed income - there was no other undisclosed income to identify with the seized materials/Panchanama, the assessee while filing the return of income pursuant to section 153A - taking note that the amount has been brought to tax by the AO though not shown by the assessee in the Return of Income, the penalty u/s. 271 AAA of the Act cannot be legally sustained. - AT

  • Income Tax:

    Default in payment of TDS - liability to pay interest - when the assessee is considered as in-default u/s. 201(1) - precondition - The obligation to deduct and deposit tax at source is thus with reference to tax deductible, i.e., that liable to be deducted under the provisions of Chapter-XVII of the Act, which provides for a mechanism for a lower (including nil) deduction of tax at source u/s. 197. The fact of the payee company having incurred a loss, so that it was not liable to any tax for the relevant year/s, becomes, therefore, largely irrelevant as far as assessee-payer is concerned. - AT

  • Income Tax:

    Power to CIT(A) to set aside the order and remand back to AO - CIT(A) has only directed the AO to determine the actual distance based on these findings and then accordingly deal with the adjustment to be made. There is clearly a difference between setting aside an issue to the A.O., which power the Ld. CIT(A) does not have as per Section 251 of the Act, and giving directions to the AO. An issue set aside to the AO is left for adjudication to him, while in a case giving directions, the issue is restored to the AO only for acting on the adjudication done by the CIT(A). - AT

  • Customs:

    Entitlement for waiver of rent / demurrage payable to the respondents - storage of imported consignments of R22 Refrigerant Gas contained in four containers beyond the stipulated period - restricted goods or not - The petitioner also cannot be burdened with the demurrage liability for the period thereafter as the goods were not allowed to be re-exported despite the above mentioned orders. Therefore, partial waiver up to 19.10.2015 is liable to be sustained. - HC

  • Corporate Law:

    Appointment of Additional Director or independent Director - incorrect declaration in the aforesaid Form DIR-12 or not - The subsequent documents along with the resolutions if taken at its face value makes, it is abundantly clear that Mr. Bakshi was appointed as an Additional Director and there was no intention on the part of the petitioners to appoint him as an “Independent Director” nor any attempt was made to project him as “Independent Director”. One single statement that his consent was taken as “Independent Director” cannot be construed that the board of Directors had actually appointed him as “Independent Director” and not as “additional Director” - HC

  • Indian Laws:

    Dishonor of Cheque - legally enforceable liability of a non-existent partnership firm - dissolution of partnership firm - obligation upon the partners - The question of applicability of Section 45 of the Indian Partnership Act, 1932, is only a question of law and such a question could be raised at any stage of the case and also in appeal. In fact, the learned Trial Court itself should have considered this aspect of the matter, even though it was not raised by or on behalf of the present appellant because it is the duty of any Court of Law to find out the truth and to that end, examine the applicability of the relevant provisions of the Law to the facts of the particular case which it is called upon to decide. - HC

  • Indian Laws:

    Dishonor of Cheque - pre-deposit of quantum of compensation amount - double the cheque amount has been ordered as compensation - Applying the test of deciding the rights of the parties, it has been held that it is only a direction to deposit, subject to the final outcome in the appeal and therefore is only a matter of procedure without finally determining the rights of parties. Applying the test as to whether non-passing of such order or accepting of any plea by the accused or the complainant, whether it would result in culmination of proceedings, the answer is again in the negative - HC

  • Central Excise:

    Refund of additional duty on Diesel - Exemption to goods supplied to UN or an International Organisation - in the present case the duty for which the exemption and refund is claimed is not covered by the Notification as the same was imposed under Section 133 of the Finance Act 1999 as amended issue of Section 120 of Finance Bill, 2005. Therefore, the duty which is not mentioned in the Notification cannot be given exemption. - AT

  • VAT:

    Validity of pre-assessment notice - Serious allegations have been leveled against the petitioner in the said notice. It is for the petitioner to reply to the same to distance itself from the proposals contained therein, in such proceedings. Proceedings initiated under Section 27(2) of the Tamil Nadu Value Added Tax Act, 2006 cannot be scuttled. - HC

  • VAT:

    Classification of goods - Equipment - idler - In the present case, the Petitioner does not appear to have placed on record materials to show what the function of the ‘idler’ is. The STO treated it as “machinery spare” whereas the ACST took the view that components parts and accessories thereof constituted a separate part of the entry and therefore 12% rate in respect of unspecified taxability came into play when it concerned component parts and accessories. While it is true that idler by itself may not be a complete machine, what is exigible to tax is not only the complete machinery but also spare parts and accessories of machines. - HC

  • VAT:

    Exemption from Sales Tax - goods sold for defence organization through various dealers - The requirement of Entry 29-B is that the dealer should have sold the goods to Defence Service installations and at the highest to Defence personnel and not to individuals who may or may not have further sold it to Defence personnel or Defence Services installations - HC

  • VAT:

    Validity of assessment order - The provision of TNVAT Act, 2016 does not contemplate the appointment of an Arbitrator to look into correctness or otherwise of the revision notices issued for reversing the deemed assessment order. Therefore, there are no merits in the present writ petition. The petitioner should have filed a reply to the revision notices on merits and awaited for final orders. Instead, the petitioner resorted to dilatory tactics with request to appoint a Joint Commissioner. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (7) TMI 27
  • 2022 (7) TMI 25
  • 2022 (7) TMI 34
  • 2022 (7) TMI 26
  • Income Tax

  • 2022 (7) TMI 33
  • 2022 (7) TMI 32
  • 2022 (7) TMI 31
  • 2022 (7) TMI 30
  • 2022 (7) TMI 24
  • 2022 (7) TMI 23
  • 2022 (7) TMI 22
  • 2022 (7) TMI 21
  • 2022 (7) TMI 20
  • 2022 (7) TMI 19
  • 2022 (7) TMI 18
  • 2022 (7) TMI 17
  • Customs

  • 2022 (7) TMI 16
  • 2022 (7) TMI 29
  • Corporate Laws

  • 2022 (7) TMI 15
  • Insolvency & Bankruptcy

  • 2022 (7) TMI 14
  • 2022 (7) TMI 13
  • Central Excise

  • 2022 (7) TMI 12
  • 2022 (7) TMI 11
  • 2022 (7) TMI 10
  • 2022 (7) TMI 9
  • 2022 (7) TMI 8
  • CST, VAT & Sales Tax

  • 2022 (7) TMI 7
  • 2022 (7) TMI 6
  • 2022 (7) TMI 5
  • 2022 (7) TMI 4
  • 2022 (7) TMI 1
  • 2022 (7) TMI 28
  • Indian Laws

  • 2022 (7) TMI 3
  • 2022 (7) TMI 2
  • 2022 (7) TMI 35
 

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