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Home e-Newsletters Index Year 2023 February Day 1 - Wednesday

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TMI Tax Updates - e-Newsletter
February 1, 2023

Case Laws in this Newsletter:

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



Articles


News


Notifications


Circulars / Instructions / Orders


Highlights / Catch Notes

    GST

  • Detention of goods - Levy of penalty - Movement of goods through valid e-way bill - bogus firms - Once, it is found that selling dealer was bogus firm, the goods carrying the e-way bill generated by such firm is of no benefit to the petitioners as the same has been used for transiting the goods from non bona fide dealer from undisclosed place. - HC

  • Cancellation of registration of petitioner - the impugned order does not assign any reason whatsoever for cancelling registration of the petitioner and is passed only on the ground that reply to the show cause notice is not given. The non-submission of reply to the show cause cannot be a ground for cancellation of the registration. - HC

  • Blocking of electronic credit ledger - appropriate authority directed to intimate to the appellant within ten days from the date of receipt of server copy of this judgment and order the reasons for which the electronic credit ledger of the appellant was blocked along with the information as to which authority had passed such an order. - HC

  • Income Tax

  • Seeking no objection certificate from the Income Tax Department in order to leave India - no objection certificate is not being issued as the Petitioner does not have a PAN number - Let the company’s official along with the Petitioner appear before the Income Tax Department on 7th February, 2023 - On the said date whatever documents or undertakings are required from the Petitioner or his employer, shall be submitted to the Income Tax Department and Form 30B shall be issued within two weeks thereafter - HC

  • Reopening of assessment u/s 147 - high value shares transaction/activities - Assessing Officer will carry out a de novo exercise from the stage at which notice under Section 148A(b) is positioned. Before proceeding further, the AO will furnish the relevant information concerning the petitioner, after redacting information which concerns third parties. - HC

  • Jurisdiction to conduct search u/s 132 - it is statutorily enjoined for a search to be conducted by the jurisdictional officers of that assessee only. The sole exceptions to this rule are in regard to locations that fall within the jurisdiction of a different officer, subject to satisfaction of, and compliance with, the requisite conditions, under the proviso to Section 132 and Section 132(1A). - HC

  • Disallowance of transport expenses - Estimation of income by applying the results for the second (subsequent) year, liable to be estimated, to the first year. That would be putting the cart before the horse. There has been clearly no adjudication by the ld. CIT(A) qua the disallowance of transport expenditure, made by the AO u/s. 37(1). - AT

  • Assessment u/s 153A - Addition u/s 68 - bogus LTCG - we do not find any infirmity in the order of the learned CIT-A the extent holding that that the addition of unaccounted long-term capital gain which is proved to be bogus is based on material found during the course of search and satisfies all the conditions prescribed under section 153A - no merit in the cross objections of the assessee, hence it is dismissed. - AT

  • Revision u/s 263 - In the instant case the PCIT has tried to super impose his view in exercise of powers u/s. 263 of the Act over one of the possible view taken by Assessing Officer. This is not in accordance with the settled law. - AT

  • TDS u/s 194C - Disallowance made u/s 40(a)(ia) of the Act - the provisions of sec.194C are not attracted for expenses claimed as “security charges”. Supply of manpower may not fall under the provisions of sec. 194J relating to “professional fees”. - Additions deleted - AT

  • Rectification u/s 154 - The AO had only denied the relief in the absence of any such clear cut evidence and the ld. AR has also failed to point out as to what was the mistake committed by the Revenue Authority while processing the return u/s 143(1) of the Act. - No merit in the appeal of the assessee - AT

  • Allowability of deduction u/s 36(1)(viii) - specified entity being the cooperative bank - The term “long term finance” has been defined under clause (h) to mean any loan or advance provided for a period for not less than 5 years. We do not perceive any distinction between term “development of housing in India” and “purchase & construction of housing in India for residential purposes - Claim allowed - AT

  • Income deemed to accrue or arise in India - amount received by the assessee on account of Time Charter of its ship as “royalty‟ and taxing the same u/s 9(1)(vi) - the payment received by the owner from the charterer has to be reckoned as payment from operations of carriage of goods from one port in India to another port in India, which falls under the ambit of carrying out shipping business or shipping operators. - the income of the assessee has rightly been offered to tax u/s 44B - AT

  • Fees for technical services (FTS) - India France DTAA - claiming the benefit of the restricted definition under India USA DTAA - Since the assessee has been found not to have ‘made available’ any technical knowledge, experience, skill, or know-how, therefore, Management Service Fees received by the assessee cannot be taxed under the provisions of Article 13 of the India France DTAA read with para 7 of the Protocol to the India France DTAA and Article 12(4) of India USA DTAA. - AT

  • Income deemed to accrue or arise in India - TSIS Service Fee received - The term ‘Royalty’ is not as widely defined in India France DTAA as in the India Singapore DTAA, which was taken into consideration by the coordinate bench of the Tribunal in the case of sister concern. - AO directed to delete the addition in respect of TSIS Service Fees received by the assessee. - AT

  • Levy of interest u/s 234C and 234B - Estimation of income for advance tax - business of Portfolio Management Services - lower authorities had not controverted the facts reported by the assessee that because of uncertainty about the equity market it cannot estimate before hand amount of performance fees as discussed supra for the purpose of calculation of advance tax. - AT

  • Exemption u/s 10(38) - LTCG - general insurance business - In the present assessment year the ld AO has himself allowed exemption u/s 10(15)(iv)(h) of the Act in regard to investment of tax free in public sector bonds. But still the Ld. AO, without citing reasons as to how u/s 10(15)(iv)(h) of the Act is applicable and Section 10(38) of the Act is not applicable, made the distinction and made the addition avoiding Section 10 of the Act. - the assessee is entitled exemption u/s 10(38) like any other assessee for computation of Income - AT

  • TDS done by the Ld. AO on the interest granted u/s. 244A(1) - taxability of interest on refund in terms of Article 12(3)(a) of the India- Italy DTAA - the interest in question received by the assessee u/s. 244A(1) from the Government of India will not be taxable. Consequently, no tax was required to be deducted thereon by the Ld. AO while remitting the said interest to the assessee and thus AO is directed to grant the refund of the TDS so done. - AT

  • Customs

  • Liability of nominee directors for offence / non compliance committed prior to their appointment - EPCG Scheme - non-fulfilment of export obligation - at the time when such nominee directors were appointed such obligations would not have been at the forefront and there is no justification in expecting the newly appointed directors to apply their minds to the obligations that had crystallized long prior to their appointment and previously in time. - Orders quashed - HC

  • Refund of the Customs Duty paid in respect of the imported goods - Period of limitation - provisional assessment - The only provision, therefore, that applies is Section 27 and hence, the rejection of refund by taking recourse to Section 26A (3) by the authorities below is incorrect - Section 27 also prescribes a time-limit of one year, but the same is subject to the saving proviso provided under sub-section (1B). - AT

  • Indian Laws

  • Key Expectations on Budget 2023 - Stay Tuned with us on Feb 1, 2023 since 11.00 AM onwards

  • Service Tax

  • Rejection of declaration in Form-SVLDRS-1 - The SVLDR Scheme is a legislation introduced for liquidation of legacy disputes on the one hand and recovery of unpaid taxes to the government on the other. The Respondent cannot contend that the portal was not updated. Once SVLDRS-2 has been issued and there has also been a follow up from the Respondents with respect to the said Form as well as the hearing that was fixed at the appointed date and time, the Respondent-Authorities cannot renege on the same. - HC

  • Levy of service tax - activity of soil conservation and land reclamation - the entire amount received by the appellant from the government in the shape of grant is in the nature of reimbursement i.e. to say the actual expenditure incurred for the provision of the service is reimbursed by the Government of Gujarat. For that reason also the amount paid by the Government to the appellant cannot be taxed as does not fall within the definition of consideration for service. - AT

  • Central Excise

  • Levy of penalty - abating the fraud - ex-superintendent of Central Excise with other person - Rebate claim - habitual offender - Appellant had perpetuated the fraud - The economic offenders/ white collared criminals need to be dealt in the strictest manner so as maintain uniformity and well being in the society and not endanger the economy of the country - It has been settled by various authorities that the word “possession” or similar phrases used in the statute do not imply physical possession of the goods but would imply possession in law. - AT

  • VAT

  • Interest on the refund amount - The contention that the petitioner is guilty of inaction for an inordinately long period is also unpersuasive. - Once the petitioner had filed the application for seeking refund of the amount along with interest, it was incumbent upon the respondents to either allow or reject the same as per law. The inaction, if any, is largely on the part of the respondents. - HC


Case Laws:

  • GST

  • 2023 (1) TMI 1231
  • 2023 (1) TMI 1225
  • 2023 (1) TMI 1224
  • 2023 (1) TMI 1223
  • 2023 (1) TMI 1222
  • Income Tax

  • 2023 (1) TMI 1232
  • 2023 (1) TMI 1230
  • 2023 (1) TMI 1229
  • 2023 (1) TMI 1228
  • 2023 (1) TMI 1227
  • 2023 (1) TMI 1226
  • 2023 (1) TMI 1221
  • 2023 (1) TMI 1220
  • 2023 (1) TMI 1219
  • 2023 (1) TMI 1218
  • 2023 (1) TMI 1217
  • 2023 (1) TMI 1216
  • 2023 (1) TMI 1215
  • 2023 (1) TMI 1214
  • 2023 (1) TMI 1213
  • 2023 (1) TMI 1212
  • 2023 (1) TMI 1211
  • 2023 (1) TMI 1210
  • 2023 (1) TMI 1209
  • 2023 (1) TMI 1208
  • 2023 (1) TMI 1207
  • 2023 (1) TMI 1206
  • 2023 (1) TMI 1205
  • 2023 (1) TMI 1204
  • 2023 (1) TMI 1203
  • 2023 (1) TMI 1202
  • 2023 (1) TMI 1201
  • 2023 (1) TMI 1200
  • 2023 (1) TMI 1199
  • 2023 (1) TMI 1198
  • 2023 (1) TMI 1197
  • 2023 (1) TMI 1196
  • Customs

  • 2023 (1) TMI 1195
  • 2023 (1) TMI 1194
  • Corporate Laws

  • 2023 (1) TMI 1193
  • 2023 (1) TMI 1192
  • Insolvency & Bankruptcy

  • 2023 (1) TMI 1191
  • 2023 (1) TMI 1190
  • PMLA

  • 2023 (1) TMI 1189
  • Service Tax

  • 2023 (1) TMI 1188
  • 2023 (1) TMI 1187
  • 2023 (1) TMI 1186
  • 2023 (1) TMI 1185
  • 2023 (1) TMI 1184
  • Central Excise

  • 2023 (1) TMI 1183
  • 2023 (1) TMI 1182
  • CST, VAT & Sales Tax

  • 2023 (1) TMI 1181
  • 2023 (1) TMI 1180
  • 2023 (1) TMI 1179
 

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