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Home e-Newsletters Index Year 2021 July Day 5 - Monday

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TMI Tax Updates - e-Newsletter
July 5, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Detention of goods alongwith vehicle - detention of goods on the ground that out of the two e-way bills generated by the petitioner validity of one of them had expired - While permitting the GST authorities to carry on assessment if the competent authority is of the opinion that there has been any infraction of any rules, regulations or statutory requirement. However, pending such adjudication the goods and the vehicle may be released, subject to condition of making deposit of 25% amount (or bank guarantee )- HC

  • GST:

    Continuous Blocking of the electronic credit ledger beyond one year - Input tax credit - fake invoices issued by non-existing firms - Rule 86(A)(1) - The continuance of blockage of petitioner’s electronic credit ledger cannot continue beyond one year - HC

  • Income Tax:

    Exemption u/s 11 - whether the hostel activity of the trust which is imparting dental education in the institution established by it is a business activity incidental to the attainment of its objectives? - Having held that the activity of running the hostel is not a separate business activity and surplus income from the hostel fee cannot be treated as profit and gains of a separate business or commercial activity of the trust, it is held that the exemption under Section 11(1) of the Act cannot be disallowed to the assessee - HC

  • Income Tax:

    Validity of the Order of assessment passed after the death of the assessee - In the instant case, admittedly, after conclusion of the submissions, before an order was passed by the Assessing Officer, the assessee expired. Therefore, by virtue of Section 159(2) of the Act, the proceeding could not have held to have been abated and could have been continued against the legal representatives. Section 159(2)(a) of the Act creates a legal fiction therefore, full effect has to be given to the same. It is not a case where the proceedings were initiated against the assessee who had already expired. - HC

  • Income Tax:

    Validity of reopening of assessment u/s 147 - The only contention of the writ applicant is that during the course of the assessment proceedings, the Assessing Officer could not have called for further information by issuing the impugned show cause notice - This contention is thoroughly fallacious and not tenable in view of the scheme of the Act. - The case on hand is not one in which it can be said that the jurisdictional fact did not exist. We should not interfere with the impugned show cause notices - HC

  • Income Tax:

    TDS on accommodation provided by the petitioner to its employees - computation of rent for the purpose of computing perquisites - The respondents had not demanded any quantified amount so that we can direct the department to correct the error, if any. If the petitioner had made an error in computation, it is either by the petitioner to approach the authority for rectification if time is available or for the concerned employees to seek refund of excess deduction of taxes from the salaries. - HC

  • Income Tax:

    Addition u/s. 56(2)(vii)(b) - difference in the value of shares transferred by the assessee company to its holding company, pursuant to a scheme approved by the Hon’ble Jurisdicational High Court - the appointed date is 01/04/2013 and hence, the value considered by the assessee, which is nearer to the date is appropriate. The valuation date taken by the AO is not in accordance with the appointed date approved by Hon’ble High Court and in this view of the matter appointed date taken and the valuation done by the AO is incorrect. - AT

  • Income Tax:

    Revision u/s 263 - scope of limited scrutiny - the issue of valuation of closing work-in-progress as well as matter relating to agriculture income, which are held by the ld PCIT as matters not been examined by the AO, are matters which are not part of the reasons for which the case was selected for limited scrutiny and are not even remotely connected, therefore, no fault lie on the part of the AO resulting in order being held as erroneous and prejudicial to the interest of revenue. - AT

  • Income Tax:

    Expenditure incurred in respect of ESOP (Employees Stock Option Programme) - the employees have been given shares of the holding company at a discounted price and the assessee has borne the discount amount on behalf of its employees. - Hence, in effect, it is a staff welfare programme of the assessee and hence the same is allowable as deduction u/s 37(1) - AT

  • Income Tax:

    Treatment of interest earned on fixed deposits made out of funds of the assessee in the period prior to commencement of business - 'revenue or capital' receipt - the interest received to the extent of ADB loan parked in investments in FDRs is not revenue in nature and not liable to be taxed under the head "income from other sources" - AT

  • Customs:

    Refund of additional duty - rejection of refund claim on the ground of failure to fulfill the Condition D of N/N.102/2007-C - mere cutting of the imported goods into small pieces will not amount to manufacture and refund of additional duty under N/N.102/2007 cannot be denied. - AT

  • Indian Laws:

    Dishonor of Cheque - prosecution against the person who signed the cheque or the person who has authorized the signatory - The law on the point is made very clear. When accused No. 1 alone signed the Cheque in question, even though it is stated that accused No. 2 had authorized accused No. 1 to sign the Cheque, will not make her liable for the offence punishable under Section 138 of the N.I. Act. It is only accused No. 1 who signed the Cheque and issued in favour of the complainant and therefore, he can be prosecuted before the trial Court. - HC

  • Service Tax:

    Refund of unutilized cenvat credit - validity of SCN - As per the Notification No.27/2012, there is no requirement to debit in the service return, the only requirement under Condition 2(h) of Notification No.27/2012 dt. 18/06/2012 is that the amount i.e. claimed as refund under Rule 5 of the said Rules shall be debited by claimant from his cenvat credit account at the time of making the claim and this condition has been followed by the appellant before filing the claim of refund but the impugned order has misconstrued and misinterpreted the requirement of Notification No.27/2012 - AT

  • Service Tax:

    Refund of unutilized cenvat credit - validity of SCN - transitional credit under GST - The transition of refund amount into GST regime was merely inadvertent error and the same was made good by the appellant by reversing the credit into GSTR-3B filed in May 2018 - the appellant has not violated conditions of the N/N. 27/2012 dt. 18/06/2012 - AT

  • Service Tax:

    Delayed payment of service tax - completion certificate valid or not - construction of residential complex - Mere evasion of tax does not invite penalties unless and until there is the evidence of some positive act on part of the appellant to show his intend to not to pay the tax. The said evidence is miserably missing in the present case. The proviso to Section 73 of Finance Act could not have been invoked by the Department in the present case - In present case, Show Cause Notice of the year 2017 raising the demand from the year 2012 onwards is, therefore held barred by time. - AT

  • Central Excise:

    Clandestine manufacture and clearance - Cigarettes - Raw material which was found lying in the factory of the appellant was admittedly not manufactured by the appellant and as such the same is not dutiable in the hands of the appellant. Thus, there is no requirement of confiscation of raw material in the facts and circumstances - AT


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (7) TMI 128
  • 2021 (7) TMI 127
  • 2021 (7) TMI 120
  • Income Tax

  • 2021 (7) TMI 108
  • 2021 (7) TMI 107
  • 2021 (7) TMI 106
  • 2021 (7) TMI 105
  • 2021 (7) TMI 104
  • 2021 (7) TMI 103
  • 2021 (7) TMI 96
  • 2021 (7) TMI 94
  • 2021 (7) TMI 93
  • 2021 (7) TMI 92
  • 2021 (7) TMI 91
  • 2021 (7) TMI 90
  • 2021 (7) TMI 89
  • 2021 (7) TMI 87
  • 2021 (7) TMI 86
  • 2021 (7) TMI 85
  • 2021 (7) TMI 124
  • 2021 (7) TMI 84
  • 2021 (7) TMI 83
  • 2021 (7) TMI 82
  • 2021 (7) TMI 81
  • 2021 (7) TMI 76
  • 2021 (7) TMI 80
  • 2021 (7) TMI 121
  • 2021 (7) TMI 79
  • 2021 (7) TMI 119
  • 2021 (7) TMI 118
  • 2021 (7) TMI 75
  • 2021 (7) TMI 114
  • 2021 (7) TMI 78
  • 2021 (7) TMI 113
  • 2021 (7) TMI 112
  • 2021 (7) TMI 111
  • 2021 (7) TMI 77
  • 2021 (7) TMI 110
  • Customs

  • 2021 (7) TMI 100
  • Insolvency & Bankruptcy

  • 2021 (7) TMI 109
  • 2021 (7) TMI 99
  • Service Tax

  • 2021 (7) TMI 102
  • 2021 (7) TMI 95
  • 2021 (7) TMI 88
  • 2021 (7) TMI 125
  • Central Excise

  • 2021 (7) TMI 101
  • 2021 (7) TMI 98
  • 2021 (7) TMI 97
  • 2021 (7) TMI 122
  • CST, VAT & Sales Tax

  • 2021 (7) TMI 126
  • 2021 (7) TMI 116
  • Indian Laws

  • 2021 (7) TMI 123
  • 2021 (7) TMI 117
  • 2021 (7) TMI 115
 

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