Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

The ACIT, Circle-1, Kota Versus Shri Subhash Pareta, Prop. M/s Pareta Associates And Vice-Versa

Levy of penalty u/s 271D and 271E - violation of provisions of section 269SS and 269T - Held that:- The initial onus lies on the assessee and not on the Revenue. The assessee has merely contended that these are advances to staff and its contractors for meeting the site expenses and repayment thereof, however it has failed to demonstrate the same with verifiable evidence. There is nothing on record to support the contention of the assessee that 13 persons in respect of whom provisions of section .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

69SS or 269T has not cross examined the above version of the assessee by issuing summons u/s 131 or commission u/s 133(6) to any of the persons whose names are mentioned in the annexure and the fact that all these cash payments being only for loan and advances is not established beyond doubt and no presumption based financial liabilities can be levied upon the assessee. CIT(A) has further highlighted certain contradictions in the findings of the Add CIT. As we have held above, the initial onus i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

their repayment, both in cash, which have clearly violated the provisions of section 269SS and 269T of the Act without any reasonable cause. On perusal of records, we find that there is not enough material on record for us to take a view in the matter. In the interest of justice and fair play, we are setting aside the matter to the file of the ld CIT(A) to examine the same afresh taking into consideration the above discussions. Appeals filed by the Revenue are allowed for statistical purposes - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ctively. None appeared on behalf of the assessee. The ld DR was heard. Based on material available on record, all these appeals are being disposed off by this consolidated order. The respective grounds of the appeal are as under:- 183/JP/17 (Ground of Revenue s appeal) On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting penalty of ₹ 60,29,868/- imposed u/s 271D of the Act without appreciating and ignoring the findings of the Addl. CIT; 15/JP/17 (Ground o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the case, the ld. CIT(A) has erred in deleting penalty of ₹ 46,31,452/- imposed u/s 271E of the Act without appreciating and ignoring the findings of the Addl. CIT. 14/JP/17 (Ground of assessee s appeal) That the ld. CIT(A) grossly erred in not allowing the legal ground raised by the Assessee that the penalty order passed u/s 271-E is time barred, in view of the limitation applicable u/s 275(1)(c) which is affirmed by Hon. Rajasthan High Court in the case of Hissaria Bros. (The Assessm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

imitation u/s 275(1)(c) of the Act. It was accordingly contended that the initiation for levy of penalty should be reckoned from the date of passing of the assessment order. 3. The ld DR drawn our reference to circular No. 9/DV/2016 dated 26- 4-2016 issued by CBDT and submitted that the ld CIT(A) view is also in consonance with the departmental view as specified by the Board Circular. The contents of the CBDT Circular read as under: Commencement of limitation for penalty proceedings under sectio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me High Courts have held that the limitation commences at the level of the authority competent to impose the penalty i.e. Range Head while others have held that even though the Assessing Officer is not competent to impose the penalty, the limitation commences at the level of the Assessing Officer where the Assessing Officer has issued show cause notice or referred to the initiation of proceedings in assessment order. 2. On careful examination of the matter, the Board is of the view that for the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s have commenced with the issuance of the notice issued by the Joint Commissioner. From statutory provision, it is clear that the competent authority to levy penalty being the Joint Commissioner. Therefore, only the Joint Commissioner can initiate proceedings for levy of penalty. Such initiation of proceedings could not have been done by the Assessing Officer. The statement in the assessment order that the proceedings under sections 271D and 271E are initiated is inconsequential. On the other ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the rank of Joint Commissioner of Income Tax) may be advised to make a reference to the Range Head, regarding any violation of the provisions of section 269SS and section 269T of the Act, as the case may be, in the course of the assessment proceedings (or any other proceedings under the Act). The Assessing Officer, (below the rank of Joint Commissioner of Income Tax) shall not issue the notice in this regard. The Range Head will issue the penalty notice and shall dispose/complete the proceeding .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to the Supreme Court will be adequate response for the time being or some legislative amendment is called for. 4. During the course of appellate proceedings before the ld CIT(A), the assessee has drawn support from two decisions of the Hon ble Rajasthan High Court in case of Hissaria Bros reported in 291 ITR 244 and subsequent decision in case of Jitendra Singh Rathore reported in 352 ITR 327 which has considered the earlier decision. We refer to the legal proposition which has been laid down by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Court has specifically held as under:- "38. We are, therefore, of the opinion that since penalty proceedings for default in not having transactions through the bank as required under Sections 269SS and 269T are not related to the assessment proceeding but are independent of it, therefore, the completion of appellate proceedings arising out of the assessment proceedings or the other proceedings during which the penalty proceedings under Sections 271D and 271E may have been initiated has no r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

penalty for not deducting tax at source while making payment to employees, or contractor, or for that matter not making payment through cheque or demand draft where it is so required to be made. Either of the contingencies does not affect the computation of taxable income and levy of correct tax on chargeable income; if Clause (a) was to be invoked, no necessity of Clause (c) would arise." 8. In the present case, the notice for issuance of the penalty proceedings under Section 271D of the A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

no relevance over sustaining such penalty proceedings. As held clearly by this Court, in such a matter, clause (c) of Section 275 (1) would be applicable. Section 275(1)(c) could be noticed as under:- "275. Bar of limitation for imposing penalties. (1) No order imposing a penalty under this Chapter shall be passed- ..... (c) in any other case, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Joint Commissioner of Income Tax for the penalty under Section 271D on 28.05.2004 was clearly hit by the bar of limitation and has rightly been set aside in the orders impugned. 10. In view of the above, our answer to the formulated question of law is that even when the authority competent to impose penalty under Section 271D was the Joint Commissioner, the period of limitation for the purpose of such penalty proceedings was not to be reckoned form the issue of first show cause by the Joint Comm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ight of legal proposition laid down by the Hon ble High Court, we now refer to the order of the ld CIT(A) to examine whether his findings are aligned to the stated legal proposition or not. The relevant findings of the ld CIT(A) are reproduced as under:- From the facts involved in the present case it is seen that the assessment was completed u/s 143(3) on 19.10.2014 by Asstt. Commissioner of Income Tax, Circle-1 Kota whereby he had mentioned in the assessment order as under It may be noted that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Kota by you for taking further necessary action The intimation recorded by the ACIT Circle 1 to the Addl. CIT Range-1 imposition of penalty was on 25-03-2015 as per the penalty imposition order of the Addl CIT and the first notice was issued by the Addl. CIT on 23-04-2015. The order was finally passed on 29/11/2015. In view of the above it has been argued that the penalty imposed by the Addl CIT Range-1, Kota in this case was beyond the limitation provided in the Act. However, since there is no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gs, the AO has stated that matter relating to penalty proceedings in respect of violation of section 269SS and 269T are being referred to the Additional/Joint CIT. In other words, the AO didn t initiate the penalty proceedings under section 271D and section 271E during the course of assessment proceedings. There is no mention of such proceedings being initiated by the AO in the assessment order. Further, there is no notice under section 271D and section 271E which has been issued by the AO to th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ngh Rathore (supra). We accordingly affirm both the order of the ld CIT(A) on this ground and hold that the penalty orders passed under section 271D and section 271E were not barred by limitation. The cross objections filed by the assessee are accordingly dismissed. 7. Now, coming to the merits of the case for levy of penalty, we refer to the findings of the Addl. CIT which are contained at para 6 to 11 of the penalty order. The Addl. CIT has referred to the specific transactions highlighted by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of section 269SS of the Act without any reasonable cause. 8. We now refer to the relevant findings of the ld CIT(A) which are reproduced as under: As regards ground of appeal no. 2, on the merits of the issue and the facts involved, it is seen that the entire order of the Addl CIT is based around Annexure A2/22, impounded during the survey proceeding. In the assessment related appeal, I have held that- Discrepancies shown in the books of accounts vis-a-vis loose sheets were precisely the reason .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

jected the books of accounts and estimated N.P. in the course of Assessment proceedings even after the special audit was done by an independent auditor? Therefore, when the Addl CIT is relying on the assessment proceeding from where the reference of violation of provisions of section 269SS and 269T have been invoked, he has to acknowledge the established legal position that once N.P. in such a case has been estimated, other additions based on the books of accounts cannot survive and in the prese .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and sub contractors. The amounts written in these rough site records were in the nature of advances and payments linked to staff & subcontractors & given in the course of business and were not loans. In the course of the assessment proceedings, the assessee had given an entry wise detail of the transactions, in cash for all 251 entries identified by the Auditor and the A.O. out of which excluded the entries being loans/deposits liable for action u/s 269SS. In the present case, while impo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e business, which addition made was contested in the appeal order and the same was confirmed by the undersigned vide appeal no. 391/14-15 vide order dated 11/03/2016. The Addl. CIT has also acknowledged that the details submitted by the assessee do not reflect the true state of affairs , which is precisely the reason why the books had been rejected. The assessee was not considered as being up to the mark in maintaining the proper details of his financial activities but due to the same reason, hi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wever, there is no finding if the debit balances were carried forward from earlier year or not since mostly these pertain to earlier part of the year. Further, the Addl. CIT has failed to mention any interest payments appearing in the annexure so as to prove that these were actually loans & repayments. No loans and advances in the course of business can possibly be without interest and if these were unaccounted cash loans, the interest would also be reflected somewhere as these were in any c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in cash in violation of section 269SS and similarly for repayment also the same condition should have been followed before treating it as violation of section 269T. The Addl. CIT during the proceeding u/s 269SS or 269T has not cross examined the above version of the assessee by issuing summons u/s 131 or commission u/s 133(6) to any of the persons whose names are mentioned in the annexure. For example, the payment to one Ashfaque who is a Sub-Contractor, with TDS deduction mentioned was verifia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hanically and just for the sake of it without carrying out cross verifications or independent enquiries to strengthen his findings though he had a period of 6 months at this disposal for passing the order. Thus, the fact of all these cash payments being only for loan & advances is not established beyond doubt. On the basis of the above, it is concluded that the Addl. CIT has just reached conclusions. Half-baked additions not based on enquiries cannot be sustained in appellate proceedings. No .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

loan in cash under section 69C-Tribunal set aside said addition- It was noted that revenue had not filed any document or material to show that in fact loan was taken and interest payment was made-Moreover, persons to whom interest was paid, their details and particulars were not ascertained verified and examined- Whether in aforesaid circumstances, Tribunal was justified in deleting impugned addition- Held, yes [ para9][In favour of assessee] Section 269SS, read with section 269T, of the Income- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

been a cause for further verification and investigation, but mere suspicion cannot be a ground to hold that loan/deposits were received in cash. The findings of the Tribunal were not perverse. Further, the revenue has not filed any document or material to show that in fact loan was taken and interest payment was made. The persons to whom allegedly interest was paid, their details and particulars were not ascertained, verified and examined. (Relevant part) ..If Revenue wanted to take the view tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ate that the assessee has accepted loan or deposit from any other person. The name of the assessee is completely absent from the said document. Identical is the situation in the years under appeal before us. None of the documents indicate that the assessee i.e. M/s Home Developers (P) Ltd. has taken any loan or deposit from any other person. The above finding of the ITAT has been upheld by the Hon ble jurisdictional High Court held that though there is a doubt but it is not established that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

able in the years under appeal also. In these years also, at the most, if can be the doubt of the Assessing officer that unaccounted transactions are in the nature of the loan taken. However, the doubt or suspicion of the Assessing Officer is not enough to hold that the assessee had taken loan/deposit in cash. Moreover, in the years under appeal, the Assessing officer made further presumptions that there was repayment of loan in cash though there is no such noting on the loose paper. In our opin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he provisions of section 68 to verify these credits as to whether these were genuine or not. The Addition should then have been made u/s 68 as unexplained which was not done, thereby leading to conclusion that these entries were explained. 5) In a balance sheet which is part of the assessment record (dated 29/02/2011), there is a site incharge/cash/WIP of ₹ 40 lakhs shown by the assessee on the asset side, on which the Addl CIT has not commented upon but the special Auditor has accepted in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

balances in the Balance Sheet which would confirm the stand taken the department? Thus it can be seen that there are inherent contradictions in the findings reached by the Addl CIT while passing the orders u/s 271D & 271E in this case. It is to be noted that for a transaction to be termed as loan or-deposit within the meaning of Section 269SS of the Act, there should be two entities or persons namely lender and borrower or depositor and recipient in the instant case since the identity of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es. The Mumbai B Bench of the Tribunal in the case of Karnataka Ginning & Processing Factory v. n. CIT (2001) 72 TTJ (Mumbai) 307: (2001) 77ITD 478 (Mumbai), at p. 478, held as follows:- Quite apart from the question of existence of reasonable cause, we are not sure whether the amounts received by the assessee from VE can be termed as loan or deposits . The words are not defined in the Expln. (iii) below Section 269SS except saying that loans or deposits means loan or deposit of money. The t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce that there was any stipulation as to the period or any stipulation for interest. It is, therefore, a matter of grave doubt as to whether the amount received from VE can be characterized as loans or deposits. In our view, they can be more appropriately referred to as temporary advances. Such temporary advances are outside the purview of Section 269SS. Thus in our considered opinion and in view of the various judicial pronouncements on this matter, we hold that the transaction of this case on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or deposit so as to attract violation committed under Section 269SAS and Section 271D of the Act. Under the facts & circumstances as discussed above and the legal precedents available in this regard, it is held that the order of the Addl CIT was based on presumptions, unsustainable on facts and in law. Thus, in the absence of any cogent basis for the findings as well as absence of any material independent verification to establish that the amounts mentioned in the loose papers listed as anne .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

CIT is relying on the assessment proceeding from where the reference of violation of provisions of section 269SS and 269T have been invoked, he has to acknowledge the established legal position that once N.P. in such a case has been estimated, other additions based on the books of accounts cannot survive and in the present appeal, the penalty imposed u/s 271D and 271E for violation of provisions of section 269SS and 269T respectively is arising out of entries in those very rough books of account .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Therefore, the transactions which impact the net profit from the construction activity undertaken by the assessee during the year are under consideration of the AO and the AO not satisfied with such determination of net profit, has replaced net profit based on his understanding and material available on record. But where there are transactions which are not connected to the determination of net profit and are not reflected in the profit/loss account and are basically stand alone balance sheet tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecorded at all or not fully recorded and which attract the provisions of section 269SS/269T. In our view, the said action of the Additional CIT is not vitiated merely on the ground that the books of accounts have been rejected and net profit has been estimated by the AO provided it can be proved that these are independent financial transactions not connected with the transactions in respect of which the net profit has been estimated by the AO. In support, useful reference can be drawn to the leg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted by him under section 13 after rejecting the books of accounts of the assessee as unreliable. Whether in a given case, the ITO may tax the cash credit entered in the books of account of the business and at the same time, estimate the profit must however depend upon the facts of each case. 10. In light of above, we donot agree with the view of the ld CIT(A) that where the veracity of the books of accounts themselves being question, the Add. CIT should not have considered these entries to be th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f loans and advances is nowhere brought out in the penalty order and reliance has only been placed on the special auditor s report. 12. In this regard, on perusal of the assessment and penalty order, we observe that certain transactions in the nature of loans/deposits were culled out of total cash transactions found to have been undertaken by the assessee during the year based on documents found during the course of survey and subsequent report of the special auditor. A set of transactions were .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee acknowledged these transactions but at the same time, submitted that these transactions are not in the nature of loans and advances but advances given to staff, labour and subcontractors in the course of business for making payments at various sites and provisions of section 269SS and 269T should not be invoked. In support of the said contention, a solitary example was given of a transaction with Munna Bhai who was claimed to be one of site-in-charge of a construction project. The Add C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ature of financial transactions of loan/deposits which have been received and repaid in cash. In support, the Add CIT referred to transactions with one Shashi ji during the period under consideration. 13. In the above factual matrix, what we observe is that these are merely contentions of the assessee not supported by any credible verifable evidence. There are around 13 persons which have been identified by the Add. CIT with whom the assessee company has multiple transactions during the year whe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd accordingly, no penalty can be levied under section 271D and 271E. The basis of such show-cause is the documents found during the course of survey and subsequent report of the special auditor who has analysed various cash transactions undertaken by the assessee and come to a conclusion that the provisions of section 269SS and 269T are violated. It is for the assessee to rebut the same with appropriate evidence. The transactions are undertaken by the assessee and it is for the assessee to demo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion 269SS and 269T has been invoked by the Add CIT. There is nothing on record to support the contention of the assessee that 13 persons in respect of whom provisions of section 269SS and 269T have been invoked by the Add CIT are assessee s employees and/contractors and transactions with them are in the regular course of business for meeting site expenses. What is the nature and character of the transactions, the debits and credits and linkage with the business and individual sites/projects etc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

Forum: Cess paid instead of SGST

News: RBI Reference Rate for US $

Forum: 3B mistake

Forum: Input credit of gst paid on urd

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector reg.

Forum: transfer of shares

Forum: Input tax credit

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

Forum: GST return filing software online | Easy GST compliance management

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version