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Home e-Newsletters Index Year 2020 December Day 30 - Wednesday

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TMI Tax Updates - e-Newsletter
December 30, 2020

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy PMLA Service Tax Central Excise Indian Laws



TMI SMS


Highlights / Catch Notes

    GST

  • Scope of powers under Rule 86A - power and procedure for blocking the input tax credit (ITC) in the electronic credit ledger of a registered person during any inquiry or investigation - it cannot be said that the inquiry or investigation initiated as regards the fake/bogus invoices for the purpose of ITC is malafide or based on absolutely no materials. From what has been stated in the reply affidavit filed on behalf of the respondents, it could be said that prima facie, there is something which the Revenue has noticed and, therefore, are looking into the same before taking any final call as regards the claim of the writ applicants to avail the ITC. - Writ petition dismissed - HC

  • Indefeasible right vis-a-vis the benefit of the ITC - No vested right accrues before taking credit. - the vociferous submission of the learned counsel appearing for the writ applicants as regards the indefeasible right to avail the ITC vis-a-vis Rule 86A of the Rules should fail and hereby fails. - HC

  • Grant of Bail - allegation of bogus input tax credit - For the purpose of granting or refusing bail there is no classification of the offences except the ban under Section 437(1) of the Criminal Procedure Code against grant of bail in the case of offences punishable with death or life imprisonment. Hence there is no statutory support or justification for classifying offences into different categories such as economic offences and for refusing bail on the ground that the offence involved belongs to a particular category. - The petitioner is directed to be released on bail subject to conditions - HC

  • Refund of ITC of CGST and SGST - The ITC of CGST and SGST started accumulating correspondingly. In such circumstances, as on date on account of such amendment in operation, the writ-applicants have Nil balance of IGST in its electronic credit ledger and the IGST balance is converted into CGST and SGST. In other words, the balance of CGST and SGST got artificially inflated as a result of the appropriation of IGST credit. - The respondents are directed to sanction and pay the refund after first reversing the entries of utilization of the subject credit and debiting the said amount from the credit ledger consequently available to the writ-applicant - HC

  • Refund of IGST - Zero Rated Supplies - it appears that the writ-applicant had claimed higher duty drawback - it is evident that the petitioner has claimed drawback of the customs component only for their exports and there arises no question of denying the refund of IGST. - In the case of the writ-applicant, the drawback rates being the same, it represents only the Customs elements, which did not get subsumed in the GST and thus, the writ-applicant cannot be said to have availed double benefit i.e. of the IGST refund and higher duty drawback. - HC

  • Income Tax

  • Allowability of claim - additional claim by way of letter, which are not claimed in the return of income by the assessee - Deduction towards forex loss - Income Computation Disposal Standard-6 has relevance to the year under consideration and the placing of reliance by A.R. on this standard is misplaced. Coming to the allowability of deduction, in our opinion, assessee is entitled for forex loss relevant to the assessment year under consideration only to the tune of ₹ 41,96,702/- and not entire amount of ₹ 62,60,285/-. - AT

  • Disallowance u/s 14A - authorities below directed to extend the benefit of the assessee on account of diminution in the value of investments while working out the disallowance to be made under the provisions of Section 14A read with Rule 8D of Income Tax Rules. - AT

  • TDS u/s 194C - Disallowance of freight expenses - No TDS was deducted - the AO has noted that a separate truck was engaged in almost all cases of transportation, numbering 599, subcontracted. There is no finding by the Revenue of any oral or written contract with the sub-contractors for transportation. Every GR is therefore to be treated as a separate contract. And with each such contract not exceeding the prescribed limit for tax deduction at source - TDS not required to be deducted - AT

  • Addition u/s 68 - unexplained land advances received back by the appellant - assessee has advanced the amount and also a fact that transaction is not materialized because the legality of the agricultural land is the issue. It is also a fact that mediator is arranged repayment of the amount - The addition made by the AO and confirmed by the ld. CIT(A) is not correct - Additions deleted - AT

  • Scope of limited scrutiny - In the present case, the day on which case was converted into full scrutiny i.e. on 21.12.2016 the ld. AO on the very next day passed the order of assessment by making the addition which were beyond the scope of limited scrutiny. - Further looking at the earlier notices, u/s 142(1), it is apparent that AO started making roving enquiries on the issue which was not the subject matter of limited scrutiny. He even framed draft assessment order and then sought approval of Pr CIT for conversion in to Full scrutiny from Limited scrutiny. Non-adherence to CBDT instruction which are binding on the AO makes the order of the ld. AO illegal and without jurisdiction . - AT

  • Customs

  • Valuation of imported goods - The Commissioner (Appeals) completely failed to advert to the crucial aspect that the importers had themselves accepted the enhanced value. The Commissioner (Appeals) in fact, proceeded to examine the matter as if the assessing officer had enhanced the declared value on the basis of other factors and not on the acceptance by the importers. This casual observation is not based on the factual position that emerges from the records of the case - the Commissioner (Appeals) was not justified in setting aside the orders passed by the assessing officer on the Bills of Entry. - AT

  • DGFT

  • Amendment in Export Policy of Onions - The Export of all varieties of Onions, as described above, has been made “Free” with effect from 01.01.2021 - Notification

  • IBC

  • Claim of Retirement benefits before RP - CIRP proceedings - Since, the Resolution Professional stated that he has admitted the interest on gratuity of the applicants till the Insolvency commencement date i.e. on 28.11.2019 from the date of retirement of the applicants and already included the admitted claims in the Information Memorandum, and since the EPF authorities have already filed their claim pertaining to the PF dues of the applicants and admitted by the Resolution Professional, nothing survives for further consideration in this application. - Tri

  • PMLA

  • CBIC designated as regulator under PMLA for the purpose of dealers in precious metals and precious stones and real estate agents - Rule 2 of the PREVENTION OF MONEY-LAUNDERING (MAINTENANCE OF RECORDS) RULES, 2005

  • Service Tax

  • CENVAT Credit - short/delayed payment of service tax - It cannot be said that the appellant had any intention, much less willful intention not to pay service tax in regard to the four audit objections referred to the Audit Report - It is, therefore, more than apparent that even otherwise, the appellant did not suppress facts with an intention to wilfully evade payment of service tax. - AT

  • Principles of Natural Justice - rejection of declaration under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - SVLDRS - We perceive logic in the action of the respondent in not taking decision on the application dated 28.12.2019, which the Department was not under statutory obligation to have considered first - there are no illegality or a jurisdictional error in considering the application dated 14.01.2020, rendering earlier application as redundant, no interference is caused. - HC

  • Central Excise

  • Classification - Scope of the term Textile - Demand based on CBIC circular - It appears that the understanding of the word ‘textiles’ in common parlance has not been considered by the Board as well as by the Ahmedabad Collector while issuing the impugned Order and the Trade Notice respectively. Instead of considering the method of weaving as a relevant factor, the nature of the raw material seems to have been taken into consideration while issuing such Order and Trade Notice. The Board’s Circular and the Collector’s Trade Notice prima facie appear to be contrary to the law laid down by the Apex Court about what is ‘textiles’, and cannot be relied upon for classifying woven fabric - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2020 (12) TMI 1120
  • 2020 (12) TMI 1119
  • 2020 (12) TMI 1118
  • 2020 (12) TMI 1117
  • 2020 (12) TMI 1116
  • Income Tax

  • 2020 (12) TMI 1115
  • 2020 (12) TMI 1114
  • 2020 (12) TMI 1113
  • 2020 (12) TMI 1112
  • 2020 (12) TMI 1111
  • 2020 (12) TMI 1110
  • 2020 (12) TMI 1109
  • 2020 (12) TMI 1108
  • 2020 (12) TMI 1107
  • 2020 (12) TMI 1105
  • Customs

  • 2020 (12) TMI 1099
  • 2020 (12) TMI 1092
  • Corporate Laws

  • 2020 (12) TMI 1091
  • 2020 (12) TMI 1090
  • 2020 (12) TMI 1089
  • 2020 (12) TMI 1088
  • Insolvency & Bankruptcy

  • 2020 (12) TMI 1106
  • PMLA

  • 2020 (12) TMI 1103
  • 2020 (12) TMI 1102
  • 2020 (12) TMI 1098
  • 2020 (12) TMI 1097
  • 2020 (12) TMI 1094
  • 2020 (12) TMI 1093
  • Service Tax

  • 2020 (12) TMI 1096
  • 2020 (12) TMI 1095
  • Central Excise

  • 2020 (12) TMI 1100
  • Indian Laws

  • 2020 (12) TMI 1104
  • 2020 (12) TMI 1101
 

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