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Home e-Newsletters Index Year 2021 August Day 30 - Monday

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TMI Tax Updates - e-Newsletter
August 30, 2021

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Seeking release of detained machinery - Expired E-Way bill - machines used in the business of dealing - detention on the ground that the excavator had no registration in the State of Tripura which was violative of Section 192A of the Motor Vehicles Act - the tax authorities must make a clear distinction between deliberate tax evasion and technical or minor defects which manifest no intention to evade tax. When the IGST liability has been fully discharged, no intention can be attributed on part of the petitioner to evade tax. - HC

  • GST:

    Seeking grant of bail - generation of invoices without actual supply of goods - the enlargement of the petitioner on bail, at this stage, is likely to hamper the investigation and tamper evidence which may amount to compromising with the entire investigation of the case. - Application rejected - HC

  • GST:

    Seeking grant of Bail - issuance of fake invoices - In appropriate cases, the detention of the Petitioner for a longer period can be ordered, even if he has undergone more than one-half of the sentence prescribed, but such discretion should be used to deny the benefit under Section 436-A of Cr.P.C. when the accused mischievously or purposefully delaying the trial and the delay in disposal is attributable to him. - trial Court directed to release the Petitioner on bail - HC

  • Income Tax:

    Exemption u/s 11 - Registration u/s 12AA denied - manipulative treatment of funds - at the stage of registration, the CIT exemption cannot deny the registration merely on the basis of the receipt of loan amount. No other reason was given by the CIT exemption for rejecting the application for registration. - assessee is entitled to registration under section 12AA - AT

  • Income Tax:

    Addition u/s 40A(2) - unreasonable professional fees to spouse - AO has not examined any details and has not given any valid reason and no comparable was brought on record and simply rejected the submissions made by the assessee. Therefore, we are of the opinion that the disallowance made by the Assessing Officer under section 40A(2) of the Act is not correct. - AT

  • Income Tax:

    Disallowance of expenses and interest - When the AO required the assessee to furnish the relevant details, it was the assessee who was at fault. - Neither the AO was justified in making total disallowance of expenses nor the CIT(A) was justified in coming to the conclusion that no interest disallowance could be made without proper verification and further deleting disallowance by 90% of the remaining expenses. - Matter restored back - AT

  • Income Tax:

    Understatement of income - treatment of lease transactions as sales transaction - The Income Tax Authorities has not doubted the legal effect of the lease deed (being unregistered one). When the lease is transfer of right to enjoy the property, such transfer can be made expressly or by implication. The mere fact that it is an unregistered lease deed would not stand in the way to determine whether in fact it was a transfer of property under lease - AT

  • Income Tax:

    Addition of interest on overdue deposits - ascertained liability or not - Additions made in the rectification proceedings u/s 154 - when the Assessing Officer himself has accepted the claim of the assessee in assessment year 2009-10, then action of the assessing officer in rectifying the assessment order and making addition on the same ground in assessment year 2013-14 i.e. present assessment year, is not justified. - AT

  • Income Tax:

    Retraction of surrender of LTCG - Transaction were accepted as bogus but later claimed as Genuine - Subsequent event of the SEBI order holding the transaction in the said scrip to be genuine was sufficient enough for the assessee to raise a legitimate ground before the Ld. CIT(A) for claiming the Long Term Capital Gains earned as exempt. - CIT(A) directed to admit the additional ground raised by the assessee and thereafter adjudicate the same in accordance with law - AT

  • Income Tax:

    Eligibility of exemption u/s 10B - Export of IT services from STP - AO observed that, assessee could not provide details of input software purchased for rendering IT enabled services as well as output software for IT enabled services rendered by the assessee. He also emphasized that the assessee could not submit any evidence regarding job work done from third parties. - CIT-A deleted the addition. - Order of CIT(A) confirmed - AT

  • Income Tax:

    Power of DRP to enhance the assessment u/s 144C(5) - The Dispute Resolution Panel being an Expert Panel, is bound to ascertain the correctness or otherwise of the Draft Assessment Order passed by the Assessing Officer. In the event of identifying omission or commission or excessive exercise, the Dispute Resolution Panel is empowered under sub-section (8) to confirm or reduce or enhance the variations. - there is no infirmity in respect of exercise of powers by the DRP and the notice issued for enhancement. - HC

  • Income Tax:

    Reopening of assessment u/s 147 - objections in reassessment proceedings - whether violation of procedures since the reopening of the assessment proved ? - correctness of the reasons set out by the JCIT, and the rejection of objections raised by the respondent by order by the 2nd appellant, can be decided during the re-assessment proceedings and not in the writ. - HC

  • Corporate Law:

    Requirement to deposit Stamp Duty and Registration Fee - conversion of the petitioner from ‘Partnership Firm’ to ‘Limited Liability Partnership’ - Once there is no transfer of immovable property under an instrument, then the question of compulsory registration of that non-existent instrument and payment of stamp duty on it is not warranted. Neither the stamp duty nor the registration fee, therefore, is payable in such circumstances. - HC

  • Indian Laws:

    Dishonor of Cheque - acquittal of the accused - There is no finding recorded by the learned courts below regarding service of legal notice upon the petitioner, much less the date of receipt of legal notice by the petitioner although the petitioner had specifically denied receipt of the legal notice - The condition precedent for filing the case under Section 138 of the Negotiable Instruments Act, 1881, having not been satisfied, the complaint itself was not maintainable on the day it was filed and accordingly, the petitioners could not have been convicted under the said Section. - HC

  • Indian Laws:

    Dishonor of cheque - maintainability of appeal - correctness of acquittal of accused - Allegation is that the complainant has misused the signed cheque which was kept in the office of the accused was stolen - Though the accused denies, he admits that two cases are filed against him in the cross-examination and hence his evidence is not credible. - the appellate Court has committed an error in reversing the finding of the trial Court without drawing presumption available in favour of the complainant. Therefore, nothing inspires this Court that the evidence led by the accused amounts to rebutting the evidence of the complainant. - HC

  • IBC:

    Initiation of CIRP - NCLT rejected the application - From the records it is clear that the loan amount has not come to the account of the Respondent Company. The transaction between the Appellant, a partnership firm and the Director of the Respondent Company in his personal capacity. - There is no doubt that the Financial contract means, a contract between a Corporate Debtor and Financial Creditor. However, the MoU dated 05.07.2019 does not fit in this clause, in view of its genuineness, as Questioned by the Respondent. - AT

  • Service Tax:

    Delay in filing of appeal before the Commissioner (Appeals) - Non-Receipt of Order-in-original - Recovery of service tax - Even the SCN also not come to the notice of the appellant till the recovery proceedings were initiated against him - principles of natural justice - - Commissioner (Appeals) directed to decide the appeal on merit - AT

  • Central Excise:

    Recovery of refund granted erroneously - It is settled legal position that inordinate delay in adjudication results into denial of principles of natural justice. In the case in hand, the assessee cannot be blamed for delay as they had never delayed the proceedings. Adjudication proceedings have to be culminated within reasonable time and if not, it would be vitiated. The act on the part of Revenue of keeping the show cause notice pending for unduly long period is arbitrary and it would, in my opinion, vitiate the entire proceedings. - AT

  • Central Excise:

    Determination of aggregate Value - SSI Exemption - inclusion of value of goods destroyed in flood in the aggregate value of clearance or not - The value of such damaged goods, which were never cleared for home consumption, cannot be added to the total turnover - AT

  • Central Excise:

    Reversal of cenvat credit - inputs used for the output goods supplied to BHEL under exemption for Mega Project - Job-Work - When the appellant took suo-moto re-credit, the same amounts to only correction of accounts, to which Rule 9(1) has no application - it is held that Rule 6(6) is squarely applicable in the present case, and therefore the credit was rightly taken by the appellant. - AT

  • Central Excise:

    Interest on delayed refund - if Revenue is of the view that this amount could not be collected at that stage, the Revenue was free to refund the said amount but the respondent enjoyed the amount without any authority of law. - The ld. AR failed to show that in case the amount deposited under protest is governed under Section 11AB of the Act for claims of interest. - Interest @12% granted - AT


Articles


Notifications


News


Case Laws:

  • GST

  • 2021 (8) TMI 1180
  • 2021 (8) TMI 1179
  • 2021 (8) TMI 1175
  • 2021 (8) TMI 1172
  • 2021 (8) TMI 1170
  • 2021 (8) TMI 1137
  • 2021 (8) TMI 1136
  • Income Tax

  • 2021 (8) TMI 1186
  • 2021 (8) TMI 1132
  • 2021 (8) TMI 1185
  • 2021 (8) TMI 1184
  • 2021 (8) TMI 1183
  • 2021 (8) TMI 1182
  • 2021 (8) TMI 1181
  • 2021 (8) TMI 1167
  • 2021 (8) TMI 1166
  • 2021 (8) TMI 1173
  • 2021 (8) TMI 1165
  • 2021 (8) TMI 1164
  • 2021 (8) TMI 1163
  • 2021 (8) TMI 1162
  • 2021 (8) TMI 1189
  • 2021 (8) TMI 1171
  • 2021 (8) TMI 1188
  • 2021 (8) TMI 1158
  • 2021 (8) TMI 1157
  • 2021 (8) TMI 1156
  • 2021 (8) TMI 1147
  • 2021 (8) TMI 1145
  • 2021 (8) TMI 1187
  • 2021 (8) TMI 1143
  • 2021 (8) TMI 1142
  • 2021 (8) TMI 1141
  • 2021 (8) TMI 1140
  • Customs

  • 2021 (8) TMI 1168
  • 2021 (8) TMI 1159
  • Corporate Laws

  • 2021 (8) TMI 1154
  • 2021 (8) TMI 1153
  • 2021 (8) TMI 1149
  • 2021 (8) TMI 1148
  • 2021 (8) TMI 1135
  • Insolvency & Bankruptcy

  • 2021 (8) TMI 1134
  • 2021 (8) TMI 1133
  • 2021 (8) TMI 1155
  • 2021 (8) TMI 1151
  • 2021 (8) TMI 1150
  • PMLA

  • 2021 (8) TMI 1176
  • Service Tax

  • 2021 (8) TMI 1161
  • 2021 (8) TMI 1160
  • Central Excise

  • 2021 (8) TMI 1131
  • 2021 (8) TMI 1169
  • 2021 (8) TMI 1152
  • 2021 (8) TMI 1146
  • 2021 (8) TMI 1144
  • CST, VAT & Sales Tax

  • 2021 (8) TMI 1178
  • 2021 (8) TMI 1139
  • Indian Laws

  • 2021 (8) TMI 1177
  • 2021 (8) TMI 1174
  • 2021 (8) TMI 1138
  • 2021 (8) TMI 1130
 

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