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Home e-Newsletters Index Year 2020 December Day 15 - Tuesday

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TMI Tax Updates - e-Newsletter
December 15, 2020

Case Laws in this Newsletter:

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



Highlights / Catch Notes

    GST

  • Profiteering - Restaurant Services - benefit of reduction in the rate of tax not passed on - contravention of the provisions of Section 171 of the CGST Act, 2017 - Respondent had increased the base prices of the items supplied by him to neutralise the effect of ITC of 9.11% which was not available to him after the rate reduction w.e.f. 15.11.2017. - Respondent had increased the average output taxable value i.e. the base price by 10.45% to offset the denial of input tax credit of 9.11% - the Respondent liable for profiteering under Section 171 (1) of the above Act and directed him to deposit the profiteered amount vide order dated 16.11.2018. - The time limit prescribed under Rule 133 (1) is not mandatory and it is only directory. - NAPA

  • Income Tax

  • Addition made under the head claims, receivables, debts, shortages etc. written off - the coal is not an evaporated item, rather it is solid items for which, the quantity dispatched from the weighbridge at the loading point should be received with the same weight at the weighbridge of the destination point. As per our considered opinion and looking to the facts of the case, the assessee must have claimed to the responsible transporters which is lack in this case - The supplier of the coal is also government of India enterprises, therefore, there should not be any difference in the supply of coal. therefore, the ld. CIT(A) is not justified deleting the addition made by the AO. - AT

  • TP Adjustment - interest on outstanding receivables - The realization of invoices were made with abnormal delay. This, in our considered opinion, tantamount to indirect funding made by the assessee to its AEs by allowing the AE to utilize funds of the assessee as per its whims and fancies. Merely because the assessee is a debt free company, it cannot allow its funds to be utilized by its AE for an indefinite period of time beyond the agreed credit period. - the outstanding receivables from AE constitute a separate international transaction and on which interest is to be imputed thereon and consequently ALP adjustment to be made. - AT

  • Exemption u/s 11 - applicant society has been established and registered abroad under the religious educational and charitable institution Act of 1861 in Australia and has not been registered in India - application filed under section 12AA and 80G for grant of registration, which was rejected - Assessee could not show any change in the objects of the society, any change in the source of establishment of the society and also could not controvert that the activities of the society are still being controlled by the head office located at abroad in Australia. - Order of rejection confirmed - AT

  • Revision u/s 263 - Since the assessment has already been set aside and the AO has been directed by the ld PCIT to re-frame it afresh after giving opportunity to the Assessee and after considering assessee’s explanation and all relevant material in accordance with law, therefore, we agree with the CIT and in our opinion, no interference is called for in the order of ld Pr. CIT. - AT

  • Contingent liability - provision for software expenses - the accounts of the assessee have been audited by the statutory auditors and they did not find any fault with the quantum of provision for software expenses created by the assessee. Hence it is not a case that there was no basis for creating the Provision for software purchases. - claim of expenditure allowed - AT

  • Validity of Search and seizure action - The Court can examine whether the reasons to believe have a rational connection or are relevant bearing to the formation of such belief, and are not extraneous or irrelevant to the purpose of the Section. But, as at the Court cannot sit in appeal or test the adequacy of the opinion formed by the Assessing Officer under Section 132 - having regard to the settled legal position on the subject, we are of the view that the action initiated by the Respondents under Section 132(1) of the Act qua the Petitioners does not call for any interference by this Court. - HC

  • TDS liabiity on Award and decree passed by Motor Accident Claim Tribunal - Learned Judge has lost sight of the fact that the deceased left behind him five legal representatives when he passed away. The amount has to be distributed amongst all the five of them and it cannot be that the income tax would be payable on the total sum amount awarded. - the amount of compensation will have to be divided between the persons who got money and this amount has to be spread over to the coming years. It is not one time income to them. It is compensation spread over as per the system prevailing. - HC

  • Customs

  • Permission for clearance of light melting scrap - The relief sought for in this writ petition cannot be granted by this Court as he seeks for a positive direction. It is for the respondent to consider the request of the petitioner to segregate the PET bottles from light melting scrap, which was imported by the petitioner - HC

  • Corporate Law

  • Deactivation of DIN of the Directors - The RoC is directed to, reactivate the DIN of the Director forthwith, by collecting fine/ penalty, if any, for the lapse of the Director. The Company is directed to file all the statutory document(s) along with prescribed fees/additional fee/fine as decided by Registrar of Companies within 30 days from the date on which the DIN of the director is reactivated - Tri

  • Non-compliance of Section 203 of a whole-time Company Secretary - The petitioners have been permitted to file e-form ACTIVE, INC-22A without insisting the appointment of a whole-time Company Secretary, on a provisional basis - It is evident that the petitioner-Companies have not adhered to the provisions of the Companies Act, especially Section 203 thereof. In such circumstances, the respondents (UOI/ROC) are empowered to proceed against the petitioner-Companies, in accordance with law. - HC

  • IBC

  • Initiation of CIRP - Section 10(4)(b) of IBC, 2016 contemplates that this Adjudicating Authority has the right to reject the Application if it is incomplete. As already stated supra, inspite of opportunity being granted, the Form - VI as filed by the Applicant is incomplete in all respects. Further, this Adjudicating Authority also cannot pass an order of CIRP as against M/s. Prithviraj Spinning Mills Private Limited since the name of the Company is not in existence as on date. - Tri


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2020 (12) TMI 487
  • 2020 (12) TMI 485
  • 2020 (12) TMI 482
  • 2020 (12) TMI 476
  • Income Tax

  • 2020 (12) TMI 489
  • 2020 (12) TMI 488
  • 2020 (12) TMI 483
  • 2020 (12) TMI 481
  • 2020 (12) TMI 470
  • 2020 (12) TMI 469
  • 2020 (12) TMI 468
  • 2020 (12) TMI 467
  • 2020 (12) TMI 466
  • 2020 (12) TMI 465
  • 2020 (12) TMI 462
  • 2020 (12) TMI 461
  • 2020 (12) TMI 460
  • 2020 (12) TMI 459
  • 2020 (12) TMI 458
  • 2020 (12) TMI 456
  • 2020 (12) TMI 455
  • Customs

  • 2020 (12) TMI 484
  • 2020 (12) TMI 480
  • 2020 (12) TMI 477
  • 2020 (12) TMI 472
  • Corporate Laws

  • 2020 (12) TMI 471
  • 2020 (12) TMI 463
  • 2020 (12) TMI 457
  • Insolvency & Bankruptcy

  • 2020 (12) TMI 464
  • FEMA

  • 2020 (12) TMI 486
  • 2020 (12) TMI 479
  • Service Tax

  • 2020 (12) TMI 474
  • Central Excise

  • 2020 (12) TMI 475
  • CST, VAT & Sales Tax

  • 2020 (12) TMI 473
  • Indian Laws

  • 2020 (12) TMI 478
 

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