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Home e-Newsletters Index Year 2020 October Day 5 - Monday

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TMI Tax Updates - e-Newsletter
October 5, 2020

Case Laws in this Newsletter:

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



Articles


News


Notifications


Circulars / Instructions / Orders


Highlights / Catch Notes

    GST

  • Best judgment assessment u/s 62 of the CGST Act - contention of petitioner is that in view of the returns subsequently filed within the period permitted u/s 62, these assessment orders had to be withdrawn as contemplated under the said Section - The remedy of the petitioner against the said assessment orders lies in approaching the statutory appellate authority against the said orders - HC

  • Income Tax

  • Assessment u/s 14A r.w.r. 8D - the disallowance under Rule 8D of the IT Rules read with Section 14A of the Act can never exceed the exempted income earned by the Assessee during the particular assessment year and further, without recording the satisfaction by the Assessing Authority that the apportionment of such disallowable expenditure made by the Assessee with respect to the exempted income is not acceptable for reasons to be assigned the Assessing Authority, he cannot resort to the computation method under Rule 8D of the Income Tax Rules, 1962. - HC

  • Loss incurred on foreign exchange derivative - Addition as speculative loss - Tribunal was right in its finding that the loss incurred on foreign exchange derivative cannot be disallowed holding it to be a speculative loss. - HC

  • Disallowance towards foreign travel - expenditure as wholly and exclusively for the business - Bonafides and genuineness of the expenses incurred by the assessee towards foreign travel was never in doubt before the assessing officer or before the CIT-A or before the Tribunal, thus, we have no hesitation to hold that the disallowance done by the CIT-A, as affirmed by the Tribunal, is erroneous. - HC

  • Computation of capital gain - computation of cost of acquisition - FMV determination - To avoid any miscarriage of justice and to allow a fresh recomputation of "cost of acquisition" or cost of improvement properly under Section 48/49 and Section 55 of the Act in the facts and circumstances of the case, we dispose of the present Appeal by setting aside the order of the Income Tax Appellate Tribunal to that extent. - HC

  • Fringe benefit tax on expenditure - FBT - Expenditure has been incurred for business necessity and not for providing any domestic benefit or amenity to the employee. The payment for visa and other charges are statutory obligations and fringe benefit tax cannot be levied - HC

  • FBT - Deemed expenditure chargeable to fringe benefit tax u/s 115WB(2)(H) - there was no fringe benefit in in-house training expenditure - repayment of loan obtained for purchase of acquisition of assets cannot be brought within the purview of fringe benefit tax - HC

  • Disallowance under section 40A(3) - Cash purchase - cash payments through truck drivers - According to the assessee, the truck driver acts as an agent of the assessee. - There is no privity of contract between the person receiving the sums in cash and the assessee and the truck driver. Such payments are not protected under rule 6 DD (k) of the Rules. On this premise, we reject contention of the assessee. - AT

  • Deduction u/s 80IB(11A) - milling of the paddy - integrated business of handling, storage and transportation of the food grains - The activities involving the cleaning, steaming, soaking, drying, polishing, grinding etc.are covered by the expression “handling” and the assessee is certainly conducting such activities which would entitle to the benefit of deduction under section 80IB(11A) of the Act - AT

  • TDS u/s 194H - “payment to Gateways” - Non deduction of tds - the “sale made on the basis of a credit card” is the transaction of the merchant establishment and that the credit company only facilitates the electronic payment for a certain charge and the commission retained by the credit card company is therefore in the nature of normal banking charges and not in the nature of commission/brokerage for acting on behalf of the merchant establishment. - No TDS liability - AT

  • Disallowance of provision for professional cost - Accounts of the company are audited by reputed CA firm and therefore it cannot be said that it is an inadvertent error. Even if the same is considered as an inadvertent error, the assessee has not taken any step to revise the return of income. Therefore, we fully concur with the findings of the Ld. CIT(A) that assessee has not adopted consistent accounting principle on year to year basis and it is not open to the assessee to claim the expense on provision basis in one year and on accrual basis in the other year. - AT

  • Proceedings initiated u/s 144C - legality of the order by framing the so-called draft assessment order - while framing the said draft assessment order, the AO not only issued and served demand notice, but has also initiated the penalty proceedings. - no hesitation to hold that the proceedings, when the demand notice was issued and served upon the assessee and penalty proceedings were simultaneously initiated making all subsequent proceedings and orders non-est. - AT

  • Revision u/s 263 - Purchase of land in the name of Employees showing the sum as loan to employees - Additions u/s 69/69B - Non conversion of limited scrutiny assessment into complete scrutiny assessment - an order not made in accordance with an order, direction or instruction issued u/s. 119, is deemed to be erroneous and prejudicial to the interests of Revenue - Direction issued in the revision order sustained. - AT

  • Indian Laws

  • The judicial discipline demands that the Judge should do his duty and must not succumb to pessimism and it is not expected from him to sit leisurely with his pen down and to say that he will not hear the cases because the record is voluminous and the time at his disposal is limited. It will be a folly not to make an attempt and to sit idle abdicating one’s duty. - HC

  • Service Tax

  • Freezing of Bank Account of petitioner - No SCN was issued - Mere making of such statements of the officers of the assessee by themselves cannot lead to any conclusion that certain amount has been determined as due from the Petitioner. Finance Act, 1994 provides for various provisions for making assessment for determining the amount of service tax required to be paid by the service provider, including best judgment assessment under Section 72 which provision can be invoked when there is failure to furnish the return or failure to assess the tax. Without there being an assessment, no conclusion can be reached that any amount has become due to be paid. - HC

  • CENVAT Credit - input services - since some portion of the disputed Cenvat credit was availed by the appellant after amendment of the definition of ‘input service’ w.e.f. 01.04.2011 for the alleged personal benefit of its employees, as per the statutory provisions, the Cenvat credit shall not be available on the disputed services. - AT


Case Laws:

  • GST

  • 2020 (10) TMI 110
  • 2020 (10) TMI 109
  • 2020 (10) TMI 108
  • 2020 (10) TMI 107
  • 2020 (10) TMI 106
  • 2020 (10) TMI 105
  • 2020 (10) TMI 104
  • 2020 (10) TMI 50
  • Income Tax

  • 2020 (10) TMI 103
  • 2020 (10) TMI 102
  • 2020 (10) TMI 101
  • 2020 (10) TMI 100
  • 2020 (10) TMI 99
  • 2020 (10) TMI 98
  • 2020 (10) TMI 97
  • 2020 (10) TMI 96
  • 2020 (10) TMI 95
  • 2020 (10) TMI 94
  • 2020 (10) TMI 93
  • 2020 (10) TMI 92
  • 2020 (10) TMI 91
  • 2020 (10) TMI 90
  • 2020 (10) TMI 89
  • 2020 (10) TMI 88
  • 2020 (10) TMI 87
  • 2020 (10) TMI 86
  • 2020 (10) TMI 85
  • 2020 (10) TMI 84
  • 2020 (10) TMI 83
  • 2020 (10) TMI 82
  • 2020 (10) TMI 81
  • 2020 (10) TMI 80
  • 2020 (10) TMI 79
  • 2020 (10) TMI 78
  • 2020 (10) TMI 77
  • 2020 (10) TMI 76
  • 2020 (10) TMI 75
  • 2020 (10) TMI 49
  • Customs

  • 2020 (10) TMI 74
  • 2020 (10) TMI 73
  • 2020 (10) TMI 72
  • 2020 (10) TMI 71
  • 2020 (10) TMI 70
  • Corporate Laws

  • 2020 (10) TMI 69
  • Insolvency & Bankruptcy

  • 2020 (10) TMI 68
  • 2020 (10) TMI 67
  • 2020 (10) TMI 66
  • 2020 (10) TMI 65
  • 2020 (10) TMI 64
  • 2020 (10) TMI 63
  • 2020 (10) TMI 62
  • 2020 (10) TMI 61
  • 2020 (10) TMI 60
  • Service Tax

  • 2020 (10) TMI 59
  • 2020 (10) TMI 58
  • 2020 (10) TMI 57
  • Central Excise

  • 2020 (10) TMI 56
  • 2020 (10) TMI 55
  • CST, VAT & Sales Tax

  • 2020 (10) TMI 52
  • 2020 (10) TMI 51
  • Indian Laws

  • 2020 (10) TMI 54
  • 2020 (10) TMI 53
 

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