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Home e-Newsletters Index Year 2023 December Day 19 - Tuesday

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TMI Tax Updates - e-Newsletter
December 19, 2023

Case Laws in this Newsletter:

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



Articles


News


Notifications


Circulars / Instructions / Orders


Highlights / Catch Notes

    Income Tax

  • Validity of assessment order against appellant/foreign company without issuing a draft assessment order as mandated u/s 144C - Scope of term “eligible assessee”-  Assessment order passed by the Ld. AO in the case of the assessee is without jurisdiction and in violation of the mandatory provisions of section 144C(1) of the Act and therefore the assessment order passed u/s. 153C of the Act is null and void and unsustainable in law. - AT

  • Disallowance u/s. 40A(2)(b) - assessee company had paid interest on Unsecured loans and advances taken from Directors and relatives - Considering the fact, the above two parties were stood for the personal guarantee of the loans availed by the assessee company which is a business exigency. - Additions deleted- AT

  • The subscription, professional and training services rendered by the assessee does not fall within the definition of FTS both under the Act as well as under the DTAA and accordingly the same cannot be taxed in India - AT

  • Reopening of assessment - Although the petitioner has resorted to window dressing of the statement of actual of statements filed along with the Statement of Profit and Loss for the year ended 31st March 2014, it cannot be said that the petitioner has not disclosed material. There is a complete disclosure by the petitioner along with the regular returns - The reasons given for re-opening of the Assessment along with a notice issued u/s 143(2) r.w.s.147 is also based on the Profit and Loss Account - Notices and assessment order quashed - HC

  • Validity of Revision u/s 263 - Allowing Exemption u/s 54 instead of 54F - Source of LTCG is not from residential house and since the assessee had earned capital gain on transfer of plot of land - Revision order sustained - AT

  • Non-collection of TCS u/s 206C - there is no ambiguity that the seller of forest product is required to collect tax on forest produce. But the “Minor Forest Product” are the product are not covered under the Income Tax Act u/s 206C (1), sl no-(v)which is not liable to collect tax at source. We find that there is no ambiguity in the “Minor Forest Product” which are not at all liable to collect tax u/s 206C. - AT

  • Revision u/s 263 - deduction u/s 80GGC - Genuineness of donation to the political party - We agree with the observations made by PCIT that it is quite unusual that assessee is taking loans for making the aforesaid donations and accordingly, the Assessing Officer should have made further enquiries to ascertain whether the aforesaid loan is genuine in the first place or not. - AT

  • Rectification u/s 154 - AO rejected TDS Credit after issuance intimation U/s 143(1) - withdrawal of TDS is a separate activity of the deductor. The mere rejection of TDS credit is not serving the purpose. The transaction, execution of works and other evidence should be considered during withdrawn of TDS credit after processing of return U/s 143(1). The execution of section 154 can not be mechanical purpose. - AT

  • Penalty u/s 271(1)(c) - non specification of clear charge - undisclosed unsold inventory - Notice u/s. 274 r.w.s. 271(1)(c) of the Act was issued without striking off the irrelevant portion of the limb and failed to intimate the assessee the relevant limb and charge for which the notices were issued. - No penalty - AT

  • Addition on account of cash deposit during demonetization period - the assessee glumly failed to justify the genuineness of the cash on hand viz a viz its use for payment of service tax, if the assessee was having the cash why the government dues are not discharged and kept the cash on hand and not only that the filmy reasons provided by the assessee of shifting the cash on hand from one place to another is also not justified with the corroborative evidence. - AT

  • Rectification of mistake u/s 154 - deduction u/s. 10A - View taken by the Ld. AO in the proceedings initiated u/s. 154 tantamount to a change in view resulting into review of his own order which is not permissible under the provisions of section 154 of the Act. When the Ld. AO has consciously taken a view to frame the original assessment by making certain additions/disallowances, he is not empowered to take contrary view by adopting a review process for the assessment already completed. - AT

  • Addition u/s 69B - unexplained investment - it is evident that those three flats belonging to the M/s Starlight security LLP mentioned in the Escrow agreement has ultimately not been given to those three shareholders by the assessee on anyone on behalf of the assessee and matter being under litigation before the Hon’ble Bombay High Court, no addition for unexplained investment could survive in the hands of the assessee company. - AT

  • Assessment u/s 153A - disallowance of bogus Long Term Capital Gain - In five scrutiny cases of the sale of shares, i.e. TFCIL, gain earned by the assessee was accepted as a genuine by the Department itself. Out of these five cases, two are in the re-assessment u/s 147 and these assessment orders have been framed after more than one year of the search. Therefore, Department was not doubting the genuineness of the transactions - Department was not possessing any details, which authorize it to doubt the claim made by the assessee. Therefore, even otherwise on merit also, no addition is sustainable - AT

  • Customs

  • Classification of imported goods - Echo Family Devices - The impugned devices perform a host of functions including reception, conversion and transmission of voice or other data to produce the requisite final output warranting their classification under CTH 8517 - merely because these devices could if so chosen by the user also be used as mere speakers, the same would not justify us recognising their primordial attribute to be that of a speaker alone. - HC

  • Clearance of goods from Noida SEZ - Exemption notifications applicable to SAD - Undisputedly, the exemption notification no. 6/2004-Cus was not available during this entire period. Therefore, the appellant is not entitled to the benefit of the exemption notification not available during any of the dates of the clearance - the issue is found in favour of the Revenue and against the appellant - AT

  • Rejection of request for provisional release of the impugned goods - Gold - The goods even if there is any remote possibility of being found prohibited or restricted at the time of adjudication is there, cannot be subjected to non release in terms of Section 110A. In view of foregoing the provisional release of 26 Gold Dore weighing 5 kg plus more allowed, subject to the conditions imposed - AT

  • Benefit of exemption from customs duty - Import of Wireless Access Points [WAP]/ MIMO Product - WAP imported by the appellant works on technology and does not support LTE standard. Beetal Teletech was, therefore, justified in claiming exemption from the whole of the customs duty under Serial No. 13 (iv) of the notification. - AT

  • Corporate Law

  • Constitutional Validity - West Bengal Excise (Change in Management) Rules, 2009 - Changes in the Board of Directors - The inevitable conclusion must be that clause (d) of the proviso to Rule 5(1) of the 2009 Rules offends Article 14 of the Constitution in terms of equal treatment of a Private Limited Company when compared to the right conferred to a Public Limited Company. The petitioners have made out a case for a declaration that clause (d) of the proviso to Rule 5(1) of the 2009 Rules is ultra vires to the Constitution of India. - HC

  • IBC

  • Territorial Jurisdiction - validity of declaratory decree to the effect that the purported Assignment Deed - permanent and mandatory injunction - the jurisdiction vested in NCLT while dealing with a resolution plan is of wide ambit and any question of law or fact in relation to the insolvency resolution has to be determined by the NCLT. - HC

  • Service Tax

  • Demand of service tax - nature of activity - notice pay recovered from the ex-employee - Notice pay, in lieu of termination does not give rise to the rendition of service either by the employer or the employee - AT

  • Invocation of Extended period of Limitation - It is apparent from the record that after receiving the specific information that the appellant has short paid service tax, a letter dated 11.02.2014 was served upon the appellant requiring them to produce requisite documents and to submit the reply with the said specific information. It is very much apparent from the show cause notice itself that the said information/documents were never provided by the appellant to the department. - Demand confirmed with penalty - AT

  • Central Excise

  • Refund of excess paid duty - Unjust enrichment - Admittedly Appellant have not received the full amount as per the invoices and further at the time of finalisation of the supply bill, under the contract in question, the buyer of the goods – South Central Railway, have made adjustment of both the downward revision of the price including the excise duty - Refund allowed - AT


Case Laws:

  • Income Tax

  • 2023 (12) TMI 777
  • 2023 (12) TMI 776
  • 2023 (12) TMI 775
  • 2023 (12) TMI 774
  • 2023 (12) TMI 773
  • 2023 (12) TMI 772
  • 2023 (12) TMI 771
  • 2023 (12) TMI 770
  • 2023 (12) TMI 769
  • 2023 (12) TMI 768
  • 2023 (12) TMI 767
  • 2023 (12) TMI 766
  • 2023 (12) TMI 765
  • 2023 (12) TMI 764
  • 2023 (12) TMI 763
  • 2023 (12) TMI 762
  • 2023 (12) TMI 761
  • 2023 (12) TMI 760
  • 2023 (12) TMI 759
  • 2023 (12) TMI 758
  • 2023 (12) TMI 740
  • Customs

  • 2023 (12) TMI 757
  • 2023 (12) TMI 756
  • 2023 (12) TMI 755
  • 2023 (12) TMI 754
  • Corporate Laws

  • 2023 (12) TMI 753
  • Insolvency & Bankruptcy

  • 2023 (12) TMI 752
  • PMLA

  • 2023 (12) TMI 751
  • Service Tax

  • 2023 (12) TMI 750
  • 2023 (12) TMI 749
  • 2023 (12) TMI 748
  • 2023 (12) TMI 747
  • Central Excise

  • 2023 (12) TMI 746
  • 2023 (12) TMI 745
  • 2023 (12) TMI 744
  • CST, VAT & Sales Tax

  • 2023 (12) TMI 743
  • 2023 (12) TMI 742
  • Indian Laws

  • 2023 (12) TMI 741
 

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