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Home e-Newsletters Index Year 2021 July Day 29 - Thursday

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TMI Tax Updates - e-Newsletter
July 29, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Jurisdiction or authority to block any input tax credit - Reason to believe that input tax available in the electronic credit ledger has been fraudulently availed or is ineligible - if there is no positive credit standing in the electronic credit ledger on the date of the order, passed under Rule 86-A, that order would be read to create a lien upto limit specified in the order passed as per Rule 86-A of the Rules. As and when the credit entries arise, the lien would attach to those credit entries upto the limit set by the order passed under Rule 86- A of the Rules. The debit entry recorded in the electronic credit ledger would be read accordingly. - HC

  • Income Tax:

    Revision u/s 263 - addition on account of interest paid to loan creditors - On one hand,AO is treating the alleged loan deposits as non-genuine and adding the same to the income under section 68 of the Act, but on other hand, without proper verification, allowed the interest payment allegedly made to the loan depositors, that would render the assessment order erroneous and prejudicial to the interest of the Revenue - AT

  • Income Tax:

    Exemption u/s 11 - trust which was not registered u/s.12A - Addition of corpus donation - voluntary contribution received by the trust with a specific direction that they form part of corpus of the trust is income of the trust within the meaning of section 11 & 12 of the Income Tax Act, 1961. - AT

  • Income Tax:

    Income deemed to accrue or arise in India - shared services - the CIT(A) has failed to appreciate that the year on year rendition of services by the assessee to the Indian entity proves that technical knowledge is not transferred or made available to the Indian entity for independently function without the aid of the assessee. We therefore agree with the plea of the assessee and hold that the sum received towards shares services were not in the nature of FTS and cannot be brought to tax in India as “FTS” - AT

  • Income Tax:

    Penalty order passed u/s 271AAA - disclosure of undisclosed jewellery and cash - The levy of penalty in not automatic and not mandatory. - considering the facts circumstances, provisions and the ratio of the decision of the Hon’ble Tribunal. We set aside the order of the CIT(A) and direct the assessing officer to delete the penalty and allow the grounds of the appeal in favour of the assessee. - AT

  • Income Tax:

    Proceedings u/s 201(1) - not deducting TDS on the year-end provision - Therefore there is a sufficient and reasonable cause for not deducting TDS on the year-end provision. Assessee consistently follows this kind of accounting system for year-end provisions which is subsequently reversed in the subsequent year in the month of April, as and when the bills are received, and the payment is made to the payee by deducting TDS. Further, admittedly, assessee has paid interest under section 201(1A) which further demonstrates there was no malafide intention. - AT

  • Income Tax:

    Recovery proceedings - attachment orders - stay petition - The position emerges that there is no dispute on that petitioner has fulfilled the condition of deposit of 20% of amount for staying the effect and operation of order of demand. In the given circumstances, it would be proper that the attached property be released from attachment - HC

  • Income Tax:

    Direct Tax Vivad Se Vishwas Scheme 2020 - whether the amount which was forfeited at the time of auction, is to be credited into the account of the petitioner or is to be credited to the account of the Government, after defraying the expenses of the same, as provided in Rule 58 of Schedule II of the Income Tax Act, 1961? - The entry of ₹ 8,02,500/-, which is there in Form-26AS, is contrary to the orders passed by the authorities as well as contrary to the Rule in question i.e., Rule 58 of the Schedule II of the Income Tax Act, 1961 and is therefore required to be ignored. - HC

  • Income Tax:

    Computing value of perquisites u/s 17(2) - residential accommodation - Merely because assessee is a body or undertaking owned or controlled by the Central Government, it cannot be elevated to the status of Central Government. Thus, the assessee cannot claim that valuation of perquisites in respect of residential accommodation should be computed as in case of an accommodation provided by the Central Government. Therefore, Sl.No.1 of Table 1 of Rule 3 of the Rules does not apply to the assessee. - HC

  • Customs:

    Permission to mutilate the imported goods - 459 packages weighing 55.740 MT of mixed wet strength scrap paper (silicon paper and coated) - seeking allowance of clearance of the goods under the exemption claimed for waste paper - the Revenue has rightly construed the prayer sought for by the Importer and passed the order dated 29.12.2020 permitting provisional release of the cargo subject to certain conditions. Therefore, no error can be attributed to the manner in which the Revenue construed the Letter dated 23.12.2020 - HC

  • IBC:

    CIRP - Whether Appellant is justified to carry the appeal only because the Adjudicating Authority had given directions to produce the Balance Sheets? - The Application under Section 9 of IBC has been pending for long and against the spirit of provisions of IBC. The delay must be affecting the maximization of value of assets. The merits of the application under Section 9 have yet not been adjudicated and decided and so we are not entering in the issue whether there was a pre-existing dispute - It is apparent that for hearing the matter, the Adjudicating Authority needed a particular document which is even otherwise admittedly a public document. If that was so, there was no good reason to file the present appeal and to raise a dispute as has been raised.- AT

  • IBC:

    Validity of approved Resolution Plan - statutory dues - it is difficult to find fault with the Resolution Plan as has been approved. There is substance in the submissions made by the Resolution Professional that if the Corporate Debtor was to go in Liquidation, the Appellant would get Nil amount. - AT

  • Service Tax:

    Validity of SCN - Jurisdiction - The service tax are demanded only for other services which all are not covered under the exemption clause and therefore, these facts are to be adjudicated with reference to the documents and evidences. When there is a slightest doubt in respect of the point of jurisdiction is raised, then the benefit of the said doubt is to be given for the Revenue. - HC

  • Service Tax:

    Classification of services - renting of immovable property service or Support Services of Business and Commerce - assessee has rendered composite services whereas as per the assessee, they have rendered only ‘Renting of Immovable Property Service’ - the services rendered by the appellant fall under the category of ‘Renting of Immovable Property service’ and the applicable services tax on such rental or lease charges has been correctly paid. - AT

  • Service Tax:

    CENVAT Credit - input services - services used in setting up their plants - Although setting up the factory is not manufacture in itself, it is an activity directly in relation to manufacture. Without setting up the factory, there cannot be any manufacture. Services used in setting up the factory are, therefore, unambiguously covered as ‘input services’ under Rule 2 (l) (ii) of the CENVAT Credit Rules, 2004 as they stood during the relevant period (post 1.4.2011). The mere fact that it is again not mentioned in the inclusive part of the definition makes no difference. - AT

  • Service Tax:

    Levy of service tax - liquidated damages recovered by the appellant for acts of default - consideration for tolerance of an act or not - it is not possible to sustain the view taken by the Commissioner that since BHEL did not complete the task within the time schedule, the appellant agreed to tolerate the same for a consideration in the form of liquidated damages, which would be subjected to service tax under section 66E(e) of the Finance Act. - AT

  • Service Tax:

    Extended period of limitation - The ingredients mentioned in terms of proviso to Section 73(1) has not been fulfilled by the Department and moreover in the present case, the appellant has a bona fide belief that they are not liable to pay service tax on the differential freight amount collected - the issue involved relates to interpretation of provisions of a statute and in such a situation, extended period cannot be invoked. - AT

  • Service Tax:

    Legality and validity of the show-cause notice - pre-show-cause notice consultation dated 12.4.2019 delivering the same to the petitioner assessee at 13.55 hours and calling upon them to remain present before the respondent No.2 at 16.00 hours. - The petitioners having requested for reasonable time for the effective consultation, without considering the said request, the respondent No.2 issued the show-cause notice on the same day i.e. on 12.4.2019. Such a high-handed action on the part of the respondent No.2, not only deserves to be deprecated but to be seriously viewed. - HC

  • Central Excise:

    CENVAT Credit - The adjudicating authority does not dispute the usage of impugned input services for providing the output services but has disallowed the credit only on the ground that these are not connected with the business activity or not necessary for providing output service. In this regard, it is noted that once for the previous period such nexus has been accepted by the department than there is no basis for denial of such nexus for the subsequent period - also, it is a settled position of law that there cannot be two different yardsticks i.e., one for allowing refund and the other for deciding the eligibility of CENVAT credit. - AT

  • VAT:

    Condonation of delay - sufficient cause - Request for Reopening of assessment order for accepting declarations in Form ‘C’ - power of authorities to reopen the proceedings after lapse of four years - no material particulars are placed on record with regard to the date of such closure - as no ‘sufficient cause’ has been made out by the petitioner to explain the delay in filing declarations in Form ‘C’, we are of the opinion no case for directing to reopen the assessment is made out. - HC

  • VAT:

    Arrears of sales tax - actual defaulter - collection of arrears after lapse of 14 years - The first respondent has not collected the recovery of sales tax vigilantly from the defaulters. Thus, the actions initiated after lapse of many years cannot be sustained. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (7) TMI 1057
  • Income Tax

  • 2021 (7) TMI 1102
  • 2021 (7) TMI 1101
  • 2021 (7) TMI 1100
  • 2021 (7) TMI 1099
  • 2021 (7) TMI 1098
  • 2021 (7) TMI 1097
  • 2021 (7) TMI 1096
  • 2021 (7) TMI 1087
  • 2021 (7) TMI 1084
  • 2021 (7) TMI 1083
  • 2021 (7) TMI 1082
  • 2021 (7) TMI 1058
  • 2021 (7) TMI 1056
  • 2021 (7) TMI 1053
  • 2021 (7) TMI 1052
  • 2021 (7) TMI 1079
  • 2021 (7) TMI 1077
  • 2021 (7) TMI 1076
  • 2021 (7) TMI 1075
  • 2021 (7) TMI 1074
  • 2021 (7) TMI 1073
  • 2021 (7) TMI 1072
  • 2021 (7) TMI 1071
  • 2021 (7) TMI 1070
  • 2021 (7) TMI 1069
  • 2021 (7) TMI 1106
  • 2021 (7) TMI 1105
  • Customs

  • 2021 (7) TMI 1066
  • 2021 (7) TMI 1051
  • 2021 (7) TMI 1049
  • 2021 (7) TMI 1108
  • 2021 (7) TMI 1104
  • Corporate Laws

  • 2021 (7) TMI 1067
  • Insolvency & Bankruptcy

  • 2021 (7) TMI 1085
  • 2021 (7) TMI 1093
  • 2021 (7) TMI 1091
  • 2021 (7) TMI 1086
  • 2021 (7) TMI 1081
  • 2021 (7) TMI 1080
  • 2021 (7) TMI 1078
  • PMLA

  • 2021 (7) TMI 1065
  • Service Tax

  • 2021 (7) TMI 1095
  • 2021 (7) TMI 1094
  • 2021 (7) TMI 1092
  • 2021 (7) TMI 1090
  • 2021 (7) TMI 1088
  • 2021 (7) TMI 1064
  • 2021 (7) TMI 1107
  • Central Excise

  • 2021 (7) TMI 1089
  • 2021 (7) TMI 1063
  • CST, VAT & Sales Tax

  • 2021 (7) TMI 1068
  • 2021 (7) TMI 1062
  • 2021 (7) TMI 1061
  • 2021 (7) TMI 1060
  • 2021 (7) TMI 1059
  • 2021 (7) TMI 1055
  • 2021 (7) TMI 1054
  • 2021 (7) TMI 1050
  • 2021 (7) TMI 1103
 

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