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Home e-Newsletters Index Year 2020 August Day 18 - Tuesday

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TMI Tax Updates - e-Newsletter
August 18, 2020

Case Laws in this Newsletter:

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



TMI SMS


Highlights / Catch Notes

  • GST:

    Release of detained goods - detention on the ground that the consignment was not supported by the original invoice and there was variation detected in the goods transported from the description in the invoice - Goods directed to be released on furnishing bank guarantee - HC

  • GST:

    Provisional attachment of Bank Accounts - Period of one year has expired - Although no specific date has been mentioned in the impugned order of provisional attachment of the bank account, yet having regard to the statement made by the learned counsel that the attachment came into force from 2-8-2019, we take it that the order of provisional attachment has come to an end. - HC

  • GST:

    Provisional attachment of Bank Accounts - Section 83 of the CGST Act - Expiry after a period of one year - As on 22.06.2020, the provisional attachment of bank account of the petitioners, the communication/order dated 28.05.2019 ceases to operate with the effect from 27.05.2020 - Respondents directed to defreeze the petitioners’ bank account within a period of two weeks - HC

  • Income Tax:

    Condonation of delay in filing an appeal - delay of 442 days - The explanation for delay of 442 days in our view is insufficient, unsatisfactory and unreasonable. Therefore, the vague explanation without any particulars or details cannot be accepted as a reasonable cause. - HC

  • Income Tax:

    Rejection of books of accounts - The material purchased in cash or part payment made in cash is fully supported by invoices or vouchers. The same invoices were produced during the assessment proceeding. Each payment duly supported by the external invoices. Hence, this is incorrect contention that these are supported by internal vouchers only - Rejection of books of account on the basis of insignificant defects in all respect, is not justified u/s 145 - AT

  • Income Tax:

    Capital gain from sale of commercial property - intra-head adjustment of loss - Benefit of carry forward of long term capital loss on the sale of shares for the current year - if, after work out of deduction u/s 54F if the capital gain arose on sale of certain assets is not chargeable to capital gain than the loss arose to assessee on sales of another assets cannot set off from gain of such assets. It is not necessary that one should first apply Section 70(3) and thereafter only, the assessee could invest the capital gain arising from the long term capital asset. - AT

  • Income Tax:

    Production Services Agreement - Permanent Establishment (PE) in India - the contract between the two entities was primarily that of a principal and agent. - M/s DBPL was acting as an independent entity which was required to carry out the assigned work independently and the assessee could not said to be PE of that entity in India. - AT

  • Income Tax:

    Penalty u/s 271B - non-furnishing of the Audit Report before the specified date - As the AO has failed in his duty in verifying whether books of account were audited before the specified date and only emphasized on the fact of furnishing the audit before the specified date , we do not find any reason for confirming the penalty levied u/s 271B - AT

  • Income Tax:

    Income from other sources - Addition u/s.56(2)(viib) - The revenue authorities cannot force the assessee to adopt particular method for valuing the fair market value of the share especially when Rule 11UA(1)(c)(b) provides that it is the option of the assessee to chose any method either discounted or book value method for estimating the fair market value of the shares issued by it during the relevant financial period. - AT

  • Income Tax:

    Block assessment u/s 158BC - period of limitation u/s 158BE - In the case of the assessee herein on 07-11-2001, the investigation wing of department after almost one year has only converted the non-existent prohibitory order into deemed seizure, and therefore in the present case the panchnama dated 07-11-2001 is only for the purposes of extending the limitation period. - Therefore, the assessment order dated 28-11-2003 is barred by limitation - AT

  • Income Tax:

    LTCG - As explained the reasons for not-depositing the amount in Capital Gains Accounts Scheme which is also not disputed. Since the assessee has substantially complied with section 54(1), therefore, a mere non-compliance of a procedural requirement under section 54(2) itself cannot stand in the way of the assessee in getting the benefit under section 54. - AT

  • Income Tax:

    Depreciation on the assets acquired under slump sale - when two or more words which are susceptible of analogous meaning are coupled together, they are understood to be used in their cognate sense. The words take colour from each other and are quantified by the meaning of each other, more general is restricted to a sense analogous to that looks of the less general - Invocation of 5th proviso to section 32 is correct to the extent of computation of depreciation on the WDV of assets taken over from the transferor company. - AT

  • Income Tax:

    Determination of Income from house property - Suppression of rental income - We could appreciate the case of the AO, if he has made reference to the rent deed of adjoining properties and pointed out that this leased property could be fetch this much rent, and therefore, the annual letting value of the assessee’s house property is to be determined equivalent to the amount on which original rent fixed between the assessee and BWP. - AT

  • Income Tax:

    Capital gain computation - There was an amendment under the provisions of section 55A where the word ‘variance’ was inserted but such amendment is applicable with effect from 01-07-2012 which is prospective in nature.- AT

  • Income Tax:

    Disallowance being commission on sales paid to the shareholder Director(s) - If directors in terms of Board resolution are entitled to receive commission for rendering services to the company and if it was in terms of employment on the basis of which they have been rendering services, then such remuneration/commission is part and parcel of salary. - AT

  • Customs:

    Levy of Ground Rent on Containers - steamer agents - scope of the term owner - distinction between storage of goods and demurrage charges - time limitation for de-stuffing the goods and return of the container - scope of the term "May" - can it be treated as "Shall" - Held No - SC

  • Customs:

    Requirement to make pre-deposit - undue hardship in making payment - appellant contends that there has been no production, and that there are various liabilities on the appellant - on the basis of the contentions advanced and the facts stated, we are of the view that it would cause undue hardship if the appellant is directed to make the pre-deposit. - Relief granted - HC

  • IBC:

    Approval of Resolution Plan - Corporate Debtor is MSME - CIRP process - there was compromise of confidentiality regarding liquidation value which appears to have been known to the Respondent No.2 before submitting the Resolution Plan. Apart from this the plant and machinery were not owned by the Corporate Debtor, and the Resolution Plan submitted on the hypothesis that the plant and machinery would be available for business and explanation is clearly a Plan which is not feasible and viable. - matter remitted back to the Adjudicating Authority with a direction to send back the Resolution Plan to the Committee of Creditors to resubmit the Plan - AT

  • Service Tax:

    Recovery of service tax - Before adjudicating the issues raised in the show-cause notice, if the respondents proceed u/s 87(b) of the Finance Act and Section 79(1)(c)(i) of the Act read with Section 142(8)(a) of the CGST Act, 2017, the petitioner will indeed be put to hardship. Such proceedings are ordinarily to be initiated only after adjudication process is over. - HC

  • Service Tax:

    Works Contract Service - composition scheme is optional at the option of the assessee - The appellant is not entitled to composition scheme as they have not opted for the same; secondly, they are disputing the addition of material components supplied free by the principal as required under the composition scheme; the details and actual cost of the material thus supplied needs to be arrived at. - AT

  • Central Excise:

    Waiver of pre-deposit - undue hardship to make the deposit - Section 35F - Undisputedly, the assessee has stopped production from the year 2013. Ever since then, there is neither production, nor generation of any income. In the absence of any income being generated, we are of the view that it would cause undue hardship if the appellant is directed to make the pre-deposit. - Partial relief granted - HC

  • VAT:

    Validity of assessment order - deemed assessment - 'assessment' in Section 9(2) includes reference to a deemed assessment and the timelines set out for the bar of limitation under TNVAT Act would apply with equal force in matters of CST. - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2020 (8) TMI 335
  • 2020 (8) TMI 334
  • 2020 (8) TMI 333
  • 2020 (8) TMI 332
  • 2020 (8) TMI 331
  • 2020 (8) TMI 330
  • 2020 (8) TMI 329
  • 2020 (8) TMI 328
  • Income Tax

  • 2020 (8) TMI 327
  • 2020 (8) TMI 326
  • 2020 (8) TMI 323
  • 2020 (8) TMI 325
  • 2020 (8) TMI 322
  • 2020 (8) TMI 321
  • 2020 (8) TMI 320
  • 2020 (8) TMI 319
  • 2020 (8) TMI 318
  • 2020 (8) TMI 317
  • 2020 (8) TMI 316
  • 2020 (8) TMI 315
  • 2020 (8) TMI 314
  • 2020 (8) TMI 313
  • 2020 (8) TMI 324
  • 2020 (8) TMI 312
  • 2020 (8) TMI 311
  • 2020 (8) TMI 310
  • 2020 (8) TMI 309
  • 2020 (8) TMI 308
  • 2020 (8) TMI 307
  • 2020 (8) TMI 306
  • 2020 (8) TMI 305
  • 2020 (8) TMI 304
  • 2020 (8) TMI 303
  • 2020 (8) TMI 302
  • 2020 (8) TMI 301
  • Customs

  • 2020 (8) TMI 299
  • 2020 (8) TMI 300
  • 2020 (8) TMI 298
  • Insolvency & Bankruptcy

  • 2020 (8) TMI 297
  • Service Tax

  • 2020 (8) TMI 296
  • 2020 (8) TMI 295
  • Central Excise

  • 2020 (8) TMI 294
  • 2020 (8) TMI 293
  • 2020 (8) TMI 292
  • CST, VAT & Sales Tax

  • 2020 (8) TMI 291
  • 2020 (8) TMI 290
  • 2020 (8) TMI 289
  • Wealth tax

  • 2020 (8) TMI 288
  • Indian Laws

  • 2020 (8) TMI 287
  • 2020 (8) TMI 286
 

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