Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Tax Updates - TMI e-Newsletters

Home e-Newsletters Index Year 2022 April Day 20 - Wednesday

TMI e-Newsletters FAQ
You need to Subscribe a package.

Newsletter: Where Service Meets Reader Approval.

TMI Tax Updates - e-Newsletter
April 20, 2022

Case Laws in this Newsletter:

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



Articles


News


Notifications


Highlights / Catch Notes

    GST

  • Seeking grant of Regular Bail - unauthorised and fraudulent claim of input tax credit - cheating and fraud - There is no suggestion in the Status Report that the applicant neither has prior criminal antecedents nor is there any material to suggest that he is a flight risk. The applicant has been in custody for a period of approximately nine months - The chances of the applicant tampering with the evidence is therefore unlikely. - Bail granted - HC

  • Revocation of cancellation of the registration of petitioner - non-filing of returns for continuous period of six months - In the peculiar facts and circumstances, the authority ought to have condoned the delay which unfortunately was not done, despite the writ applicant having made a fervent request for condonation of delay in filing appeal seeking revocation of cancellation of registration. - On account of procedural lapses, the High Court should not be flooded with writ applications. The procedural aspects should be looked into by the authority concerned very scrupulously and deligently. Why unnecessarily give any dealer a chance to make a complaint before this Court when it could have been easily avoided by the department. - HC

  • Classification of goods - rate of tax - The Composite supply of works contract is provided by the applicant sub-contractor to the main contractor who is further providing services specified in item (vii) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or Government Entity - the impugned supply of the applicant is covered under Sr.No. 3(x) f Notification No. 11/2017-CTR dated 20.06.2017 as amended from time to time. - with effect from 01.01.2022, the impugned services supplied by the applicant will not be covered under Sr. No. 3 (x) of Notification No. 11/2021-CTR dated 28.06.2017 as amended from time to time. - AAR

  • Income Tax

  • Disallowance of rates & taxes being reversal of CENVAT credit on scrap written off - In case, the assessee is able to explain CENVAT credit with necessary details, then the Assessing Officer is directed to delete additions made towards disallowance of reversal of CENVAT credit on scrap written off. - AT

  • Deduction claimed u/s. 54 - LTCG - In the present case, the assessee has purchased property in the name of married daughter, although she was divorced, but she is an independent for purpose of the Income Tax Act. Therefore, we are of the considered view that benefit of deduction u/s.54 of the Act cannot be allowed, when property has been purchased in the name of married daughter. - AT

  • Revision u/s 263 by CIT - buy back of shares from its own holding company - deemed dividend under section 2(22)(d) - dividend distribution tax u/s 115-O - CIT has flagged a pertinent issue and fully justified as to how the assessment order was erroneous as well as prejudicial to the interest of the revenue. Upon perusal of assessment orders, we find that this issue was never delved into by Ld. AO or Ld. TPO and there was complete non-application of mind on the sated issue. - AT

  • Revision u/s 263 - issue of bonus shares would amount to distribution of dividend or not - the assessee has issued only equity shares and there are no preference shares. The bonus has been issued to equity shareholders only. Thus, the assessee’s case do not fall either in Clause (a) or Clause (b) of Sec.2(22). This being so, the amount of bonus could not be held to be dividend and accordingly, Sec.115-O would have no application in such a case. - AT

  • Addition treating the cash deposit in bank account as Income other Source - the assessing officer has just brushed aside the evidences without even a word on why they are not acceptable and how these are fabricated documents. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. - Additions deleted - AT

  • Long term capital gains arising on sale of house property - cost of improvement - CIT(A) rightly observed that the air conditioners are at best categorized as furnishing in order to improve the living condition inside the building and it do not enhance the value of building or longevity of the building per se. - AT

  • Condonation of delay - delay of 41 months in filing appeal before the CIT(A) - according to the assessee, it could not realize the effect and consequence of the order passed under section 143(1) - this is a harsh decision as there is no supposition that everybody is the custodian of law, though ignorance of law is not an excuse for any wrong action. But in the instant case, according to the assessee, it could not realize the effect and consequence of the order passed under section 143(1). This, according to us, is a convincing reason. - Delay condoned - AT

  • Disallowance claim of deduction u/s.80- IA - the assessee is found to have executed works contract attracting the explanation to sub-section 13 of 80IA – A partnership firm is not a creation of statute but it is a body of individuals regulated by the statute namely Partnership Act - The assessee fails to satisfy the applicability clause of the provision as envisaged under section 80IA(4)(i) - AT

  • Additional Depreciation on Power Generation Unit - u/s 32(1)(iia) - The provisions do not state that setting up of a new machinery or plant, which was acquired and installed after 31-3-2002, should have any operational connectivity to article or thing that was already being manufactured by the assessee. - AT

  • Status of a private discretionary trust - AOP OR Individual - The Ld. CIT(A) has interpreted the meaning of AOP - the subsequent amendment by explanation to section 2(31) wherein the AOP can be formed without the common objective of deriving income, profits or gains, thus concluding that private discretionary trust will come under the purview of AOP. In addition to this, the proviso to section 164(1) also states that under the circumstance provided therein, the income of the discretionary trust shall be assessed to tax as AOP. - Order of CIT(A) sustained - AT

  • Service Tax

  • CENVAT Credit - input service - amount paid to the broker / property consultant for purchasing the immovable property to be used for providing output service of renting of immovable property - The amount in question is the amount given to the person who rendered the services of getting purchased the immovable property through which the output service of renting of immovable property could not have been provided. The brokerage/ consultancy services received for setting up of said immovable property is accordingly held to be an eligible inputs service.- AT

  • Central Excise

  • Maintainability of revenue appeal - Inappropriateness of the direction given in the circular issued by the Department to follow regime of call-book - threshold monetary limit - The assessee can raise grounds independent of that contention. But if the assessee chooses to raise ground regarding call-book regime, that contention must await the outcome of the proceedings pending before this Court in the connected cases listed today. - SC

  • VAT

  • Exemption from Entry tax - Iron & Steel (MS Angle, MS Channel, MS Plate, MS Beam, etc.) used in expansion of Cent Plan - capital goods or not - the certificate of Charted Accountant nowhere mentions as to how the consumption of iron & steel is directly connected with the plant & machinery or its accessories or its components - Only by referring or describing the user will not help the assessee for treating the iron & steel used for the constructions of buildings as “capital goods”, more precisely, as “plant & machinery”. - HC


Case Laws:

  • GST

  • 2022 (4) TMI 867
  • 2022 (4) TMI 866
  • 2022 (4) TMI 865
  • 2022 (4) TMI 864
  • 2022 (4) TMI 863
  • Income Tax

  • 2022 (4) TMI 862
  • 2022 (4) TMI 861
  • 2022 (4) TMI 860
  • 2022 (4) TMI 859
  • 2022 (4) TMI 858
  • 2022 (4) TMI 857
  • 2022 (4) TMI 856
  • 2022 (4) TMI 855
  • 2022 (4) TMI 854
  • 2022 (4) TMI 853
  • 2022 (4) TMI 852
  • 2022 (4) TMI 851
  • 2022 (4) TMI 850
  • 2022 (4) TMI 849
  • 2022 (4) TMI 848
  • 2022 (4) TMI 847
  • 2022 (4) TMI 846
  • 2022 (4) TMI 845
  • 2022 (4) TMI 844
  • 2022 (4) TMI 843
  • 2022 (4) TMI 842
  • 2022 (4) TMI 841
  • 2022 (4) TMI 840
  • 2022 (4) TMI 839
  • 2022 (4) TMI 838
  • 2022 (4) TMI 837
  • 2022 (4) TMI 836
  • Customs

  • 2022 (4) TMI 835
  • 2022 (4) TMI 834
  • Insolvency & Bankruptcy

  • 2022 (4) TMI 833
  • 2022 (4) TMI 832
  • 2022 (4) TMI 825
  • Service Tax

  • 2022 (4) TMI 831
  • 2022 (4) TMI 830
  • Central Excise

  • 2022 (4) TMI 829
  • 2022 (4) TMI 828
  • CST, VAT & Sales Tax

  • 2022 (4) TMI 827
  • 2022 (4) TMI 826
 

Quick Updates:Latest Updates