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Home e-Newsletters Index Year 2024 January Day 16 - Tuesday

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TMI Tax Updates - e-Newsletter
January 16, 2024

Case Laws in this Newsletter:

GST Income Tax Customs Service Tax Central Excise Indian Laws



Highlights / Catch Notes

    GST

  • The need for clarity and concrete reasons in the cancellation of GST registrations.

  • Manner of compliance of conditions of pre-deposit - Debit of amount from electronic credit ledger (ECRL) is sufficient or Debit from electronic cash ledger (ECL) is must?

  • A Case of Coerced Input Tax Credit Reversal - GST recovery during search and seizure proceedings.

  • Cancellation of GST registration of petitioner - Merely, because a taxpayer has not filed the returns for some period does not mean that the taxpayer’s registration is required to be cancelled with retrospective date also covering the period when the returns were filed and the taxpayer was compliant. - HC

  • Blocked of input tax credit - The applicant is eligible to avail ITC on roof top solar system with installation & commissioning under the CGST/GGST Act - The roof top solar system with installation and commissioning constitute plant and machinery of the applicant and hence is not blocked ITC under section 17(5) of the CGST/GGST Act. - AAR

  • Income Tax

  • A Landmark Judgment on Tax Credit Entitlement - Credit of TDS if deductor failed to deposit the TDS to the Government

  • Tax Credit Entitlement - Credit of TDS if deductor failed to deposit the TDS to the Government

  • Validity of reopening of assessment - need for a direct link between the portal's information and the income allegedly escaping assessment

  • Disallowance of expenses - need for tax authorities to have a practical understanding of the nature of business operations

  • Disallowance of the assessee's business expenditure claims related to the purchase of sugarcane from member farmers, as well as the treatment of additional sugarcane price paid to growers as an appropriation of profits.

  • Additions made u/s 69 and Section 56 in the absence of direct incriminating evidence linking the assessee to the alleged unexplained investments and interest income. - Assessment of search and seizure

  • Revision u/s 263 - AO has totally overlooked that the assessee is not eligible for deduction u/s. 80IB(11) - The contention of the ld. A.R. that this is a mistake and it should have been rectified u/s. 154 will also not come in picture because the assessee has claimed deduction under the section which is not applicable to the assessee and has not pointed out this mistake at the assessment proceedings or after the assessment order passed. - AT

  • Assessment of trust - construction of Public Toilets under the Central Government Scheme “Swach Bharat Abhiyan' - Swach Bharat Fund directly transferred to the Balance sheet without taking it into Income & expenditure account of the assessee - the assessee is not the owner of the funds but holding the same in fiduciary capacity, hence, no addition is called for on this account - AT

  • Revision u/s 263 - the assessment order passed by AO granting benefit of Article 13 to the assessee on shares acquired prior to 1st April 2017, is after making due enquires and further same is also made in accordance with the press release of Central Board of Direct Taxes , hence, cannot be considered to be erroneous insofar as it is prejudicial to the interest of the Revenue - AT

  • Disallowance u/s 14A - expenditure incurred on earning exempt income - In the given case the transaction of the consolidation of mutual funds is not considered as a transfer under section 47(xviii) and therefore it does not result in any income within the definition of section 2(24). Therefore we see merit in the contention that the assessee has not earned any income that is exempt under the Act in order invoke section 14A. - AT

  • Addition u/s 68 - Cash loan and interest income earned on such cash loan unexplained - It is not understandable as how the cash loan are unexplained, when the AO has not indicated any source of cash accumulation as from undisclosed sources, thus, even otherwise extending of such cash loans out of accumulated cash balance (presumably out of cash saved by way not showing full household withdrawal) does not justify for addition u/s 68. - AT

  • TP Adjustment - the Ld.TPO has observed that the services rendered by the assessee are under two segments, but still holds the services of the assessee under SWD segment to be similar to that of the functions performed by the assessee under ITeS segment. We also note that the reasoning by the assessee Ld.TPO to aggregate both these segments are not justifiable and therefore cannot be upheld. - Matter restored back for reconsideration - AT

  • Customs

  • Provisional release of imported goods (apples) - The dispute centers on the valuation of the imported apples.

  • Liability for payment of customs duty on sale of excess liquor from the duty-free shop

  • Demand of customs duty beyond normal period of limitation on the ground of change in classification of goods

  • Whether penalty is to be imposed when the appellant has accepted the classification and paid the entire duty along with penalty much before the issuance of the show cause notice?

  • Permission to export non-basmati white rice for which shipping bills had been filed by the Petitioner and the rotation number had also been generated - The doctrine of substantial compliance and intended use would not come in aid of the Petitioner because the purport of the Notification is to immediately put a ban on the export of Non-basmati rice - HC

  • Revocation of license of CHA firm - It has been brought to notice that at least in 8 cases, any revenue loss caused to the department, was made good and the vehicles cleared upon payment of necessary dues. Though there is no denying the fact that the appellant had committed grave error in law, and we find them to have contravened the legal stipulations. - The licence cannot be allowed to remain revoked in perpetuity - AT

  • Revocation of Customs Broker License - Though enquiry report has absolved the Customs Broker from all the charges levelled against him, the reasons were not accepted, the enquiry report was not communicated to the appellant, violating the principles of natural justice. - The revocation of Customs Brokers License is too harsh a punishment which is bound to affect the livelihood of the Customs Broker and his employees - AT

  • Corporate Law

  • Stringent approach towards ensuring compliance with auditing standards - importance of auditors' responsibilities in maintaining the integrity and reliability of financial reporting

  • Benami Property

  • Application of provisions of section 5 of the Benami Transactions (Prohibition) Amendment Act, 2016 - non-retrospective application of punitive legal provisions.

  • Applicability of the Benami Transactions (Prohibition) Amendment Act, 2016

  • Indian Laws

  • Dishonour of Cheque - Seeking waiver of deposit of 20% amount of compensation - whether there exist exceptional circumstances to exempt the petitioner from depositing the 20% of the fine - the present case be remanded back to the learned Sessions Court/Appellate Court for deciding afresh, as to whether the three exceptional circumstances being raised by the petitioner herein fall within the category of exceptional circumstances - HC

  • PMLA

  • The case of Manish Sisodia versus CBI and DoE is not just a legal battle but also a matter of significant public interest.

  • SEBI

  • Importance of transparency in corporate governance and the rights of minority shareholders

  • Service Tax

  • Extended period of Limitation - Keeping in view the fact that the position of law was not clear during the relevant time, invocation of extended period of limitation is not justified because the appellant has not suppressed any material fact from the department and was subject to regular audit and has been regularly filing monthly service tax returns with the department. - AT

  • Exemption from Service Tax - The training imparted by the HICA is not exigible to service tax. Accordingly, the demands raised on “Commercial Training and Coaching Centre Services” rendered by the appellants are not sustainable. The demand on “Airport Services” is within the exemption limit. - AT

  • Levy of service tax - Royalty paid by appellant to Government - RCM - The department does not have a case, that the activity falls within lease and that the royalty paid is rent. This is because, if so, the liability to discharge service tax would be on the government (being the service provider). The demand raised is indeed on the basis of Sl.No.61 of the exemption notification. Para 15 of the SCN also would show that the demand has been raised on the basis that the royalty which is paid periodically is not exempted from service tax. - AT

  • Refund of Service Tax - CIRP proceedings against the appellant - In the Resolution Plan, there has not been any provision made with regard to the pendency of this case. - Once the Resolution Plan has been approved by the NCLT, thereafter, the present appeal stands abated as the CESTAT has become functus officio in the matter relating to the present appeal. - AT

  • Central Excise

  • Demand based on Form-26AS information from the Income Tax Department, without pre-show cause notice consultations, invoking extended period of limitation.

  • Refund of the amount deposited under-protest - Applicability of bar of limitation under Section 11B (1) of Central Excise Act - the statutory limitation period prescribed under Section 11B is not applicable to the refund claimed by the Appellant since the amount paid by the Appellant is not a tax. - AT

  • Reversal of the cenvat credit on capital goods when the final product manufactured by use of such capital goods became exempted subsequently - the capital goods were not used exclusively for the manufacture of exempted of final product. Hence, the allegation of the show cause notice that the capital goods were used exclusively for manufacture of exempted final product is not correct. - AT

  • Denial of CENVAT Credit - the time limit of six months prescribed under Notification No.21/2014 dated 11.07.2014 is applicable only in respect of the invoices issued after 11.07.2014. As the invoices in this case were issued prior to this date , the time limit of six months is not applicable. - AT


TMI Short Notes


Articles


Notifications


Case Laws:

  • GST

  • 2024 (1) TMI 662
  • 2024 (1) TMI 661
  • 2024 (1) TMI 660
  • 2024 (1) TMI 659
  • Income Tax

  • 2024 (1) TMI 658
  • 2024 (1) TMI 657
  • 2024 (1) TMI 656
  • 2024 (1) TMI 655
  • 2024 (1) TMI 654
  • 2024 (1) TMI 653
  • 2024 (1) TMI 652
  • 2024 (1) TMI 651
  • 2024 (1) TMI 650
  • 2024 (1) TMI 649
  • 2024 (1) TMI 648
  • Customs

  • 2024 (1) TMI 647
  • 2024 (1) TMI 646
  • 2024 (1) TMI 645
  • 2024 (1) TMI 644
  • Service Tax

  • 2024 (1) TMI 643
  • 2024 (1) TMI 642
  • 2024 (1) TMI 641
  • 2024 (1) TMI 640
  • 2024 (1) TMI 639
  • 2024 (1) TMI 638
  • 2024 (1) TMI 637
  • Central Excise

  • 2024 (1) TMI 636
  • 2024 (1) TMI 635
  • 2024 (1) TMI 634
  • 2024 (1) TMI 633
  • 2024 (1) TMI 632
  • 2024 (1) TMI 631
  • 2024 (1) TMI 630
  • 2024 (1) TMI 629
  • Indian Laws

  • 2024 (1) TMI 628
 

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