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Home e-Newsletters Index Year 2020 December Day 10 - Thursday

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TMI Tax Updates - e-Newsletter
December 10, 2020

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Detention of goods alongwith the vehicle - errors in the dates of invoice and the date shown in the e-way bill - The petitioner is permitted to clear the goods and the vehicle on furnishing a bank guarantee for the amount demanded - HC

  • Release of provisionally attached goods u/s 83 - show cause notice u/s 70 have been issued - the petitioners have not filed any objection against the impugned provisional attachment dated 22.07.2020. Therefore, the impugned orders cannot be said to suffer from any manifest error of law. - HC

  • Income Tax

  • Genuineness of business expenditure - Audit of the Books of Accounts of the Limited Companies is mandatorily provided for in the Companies Act also and therefore, if the Audit Report and Audited Balance Sheet is available on the record, the expenditure in question can safely be presumed to have been verified by the Auditors as well. The Books of Accounts regularly maintained by the Assessee in the ordinary course of business have neither been rejected by the Assessing Authority in the present case nor have been otherwise disbelieved. Therefore, such Expenditure in the hands of the Assessee was required to be allowed by the Assessing Authority. - HC

  • Depreciation on leased assets u/s 32 - In the instant case, the revenue has accepted the claim of the assessee for depreciation under Section 32 of the Act for the Assessment Year 2002-03 and 2003-04. Therefore, the revenue cannot be allowed to take a different stand for the Assessment Year 2004-05 - HC

  • Exemption under Section 10B - Carry forward of losses under section 72 - the requirement of submission of declaration in terms of Section 10B(8) of the Act has to be treated as mandatory whereas, the requirement of submission of declaration by a time limit has to be treated as directory as the provision does not provide for any consequence by non filing of the declaration by the time limit. - HC

  • Additions on account of Client-code modification (CCM) - undisclosed profit on future and option transaction in shares - Whole basis of making additions in the hands of the assessee is information of DIT (Inv.) wherein it was alleged that the profits were shifted by client code modification. To substantiate these allegations was the onus of revenue. The assessee had filed confirmatory letters of all category-3 clients wherein all these clients owned up the transactions and also confirmed that the profits so earned by them on these transactions were duly reflected in their respective returns of income. - Addition deleted - AT

  • Revision u/s 263 - PCIT is incorrect in coming to the conclusion that Assessing Officer has not examined the issue and applied his mind insofar as investments in fixed deposits - once the Assessing Officer has taken one of the two views permissible in law on which the PCIT does not agree and which resulted in loss of revenue, it cannot be treated as erroneous order prejudicial to the interests of the revenue, unless the view taken by the Assessing Officer is completely unsustainable in law. - AT

  • Addition u/s 69A - unaccounted income of the assessee company - Double addition - AO was under the obligation to reduce the sum of 81 lakhs from the income of the director in the situation where he proposed to add the same in the hands of the assessee. But the AO has not done so despite having sufficient information in his hand. As such the action of the AO has resulted the double addition of the same income. - AT

  • Capital Gains - Whether land belonged to the ''HUF'' and not to the assessee? - there was no mentioned that the land was being sold by the assessee as Karta of 'HUF' - proceeds of the sale were also deposited/retained by the assessee in his individual capacity and further the land so purchased out of the proceeds of the sale was also in the name of the assessee in individual capacity - plea that the income/capital gains should have been assessed in the name of the 'HUF' seems to be an afterthought. - AT

  • Allowable expenditure - salaries paid to the employees of the Department of Urban Estates on account of transfer of functions overtaken by the HUDA - In the absence of diversion of employees from Department of Estates, HUDA would have to hire outside manpower and also require to pay them accordingly. Keeping in view the functions performed by the employees for HUDA the expenses out of salary cannot be treated as non business expenditure. - AT

  • Corporate Law

  • Maintainability of petition - Once it is admitted under IB Code initiating CIRP, which may end, either in approval of a resolution plan or an order for liquidation of the Corporate Debtor. Thus, under both situation, the management will never come again in the hands of the Suspended Management. - Even if the petition filed under Section 241-242 is kept in abeyance, then even it is not going to fulfil the objective of Section 241-242 of the Companies Act. Therefore, there is no reason for keeping the application filed under Section 241-242 be pending till the final outcome of the IB petition - Tri

  • IBC

  • Fresh claim after the approval of Resolution Plan - Since the CIRP has crossed the culminating point with approval of the Resolution Plan of ‘Shri Dutt India Pvt. Ltd.’, the Appellants cannot be allowed to reopen the CIRP and direct de novo exercise after the CIRP period has come to an end. - AT

  • Service Tax

  • Whether the assessee is correct in discharging service tax on gross amount charged under Section 67 of the Finance Act, 1994 after availing CENVAT credit on inputs or whether they have to pay service tax under Rule 2A(ii)(B) of Service Tax (Determination of Value) Rules 2006 as assessed by the department? - the discharge of service tax liability at full rate by the appellant by applying the provisions of section 67 of the Finance Act, 1994 cannot be called in question by the Revenue - AT

  • Reversal of CENVAT Credit - works contract service - there is only one transaction of Works Contract Service which is taxable service of which certain portion has been exempted. There are no distinct transactions for two services involved. In such a situation, Rule 6 doesn't become applicable, it is only one distinct service. - AT

  • Central Excise

  • Maintainability of petition - Validity of Rule 17(2) of the Pan Masala Packing Machines (Capacity, Determination and Collection of Duty) Rules, 2008 - The reason that the pre-deposit being burdensome does not appeal to us - The challenge to the vires of Rule 17(2) of the Pan Masala Rules is rather without substance and therefore we do not consider it necessary to deal with the same in this case. - HC

  • VAT

  • Principles of natural justice - best judgement assessment done by ex-parte order - The Assessing Authority is bound to act in a rational manner while resorting to best judgement assessment in view of the facts on record it is clear that only one bill of ₹ 11,570/- was available as material to assess the evaded sales. There was nothing more before the Assessing Authority to form an opinion that sales equal to the declared sales should be determined as evaded sales - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2020 (12) TMI 312
  • 2020 (12) TMI 311
  • 2020 (12) TMI 310
  • 2020 (12) TMI 309
  • Income Tax

  • 2020 (12) TMI 308
  • 2020 (12) TMI 307
  • 2020 (12) TMI 306
  • 2020 (12) TMI 305
  • 2020 (12) TMI 304
  • 2020 (12) TMI 303
  • 2020 (12) TMI 302
  • 2020 (12) TMI 301
  • 2020 (12) TMI 300
  • 2020 (12) TMI 299
  • 2020 (12) TMI 298
  • 2020 (12) TMI 297
  • 2020 (12) TMI 296
  • 2020 (12) TMI 295
  • 2020 (12) TMI 294
  • 2020 (12) TMI 293
  • 2020 (12) TMI 292
  • 2020 (12) TMI 291
  • 2020 (12) TMI 290
  • 2020 (12) TMI 289
  • Corporate Laws

  • 2020 (12) TMI 288
  • 2020 (12) TMI 287
  • 2020 (12) TMI 286
  • Insolvency & Bankruptcy

  • 2020 (12) TMI 285
  • 2020 (12) TMI 284
  • Service Tax

  • 2020 (12) TMI 283
  • 2020 (12) TMI 282
  • 2020 (12) TMI 281
  • Central Excise

  • 2020 (12) TMI 279
  • CST, VAT & Sales Tax

  • 2020 (12) TMI 280
  • 2020 (12) TMI 278
  • 2020 (12) TMI 277
  • 2020 (12) TMI 276
 

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