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Home e-Newsletters Index Year 2023 September Day 20 - Wednesday

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TMI Tax Updates - e-Newsletter
September 20, 2023

Case Laws in this Newsletter:

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



Articles


News


Notifications


Circulars / Instructions / Orders


Highlights / Catch Notes

    GST

  • Valuation - inclusion cost of material / reimbursement of expenses - where the value of materials and cost of execution of work for installation of electric lines are borne by the recipient of service and the appellant charges supervision fee only, the value of materials and cost of installation shall not be included in the value of supply for determination of taxable value under GST and the appellant shall be liable to pay GST only on the supervision charges. - AAAR

  • Process amounting to manufacture or not - mixing of scent (mixture of various perfumes and not Jarda Scent) in raw unmanufactured tobacco dust - the product of the appellant is appropriately classifiable under Ch-2401 of GST Tariff subject to the process adopted by the appellant as provided under Explanatory Note to Ch-2401. - AAAR

  • Reversal of Input Tax Credit - raw materials purchased are already used in the manufacture of finished goods and the finished goods are destroyed in the fire accident completely - ITC is required to reversed - AAR

  • Classification of goods - Automobile Accessories - Electrical & mechanical spare parts of electric vehicle - Electrical & mechanical spare parts of electric vehicle are not covered by any description in the Notification No. 01/2017. Therefore they fall under residual entry S.No 453 of Schedule-III - AAR

  • Income Tax

  • Income taxable in India - dividend income earned by the assessee - such income is exempted under Omani Tax Laws - Appellant (Revenue) has not been able to demonstrate as to why the provisions contained in Article 25 of DTAA and Article 8 (bis) of the Omani Tax Laws would not be applicable and, consequently, we hold that the appeals have no substance - SC

  • Reopening of assessment u/s 147 - Failure to rely upon the decision of HC / SC at objection stage - We fail to understand why these decisions could not have been taken at this stage itself so that the AO, having regard to the law laid down by the courts and on the submissions made by petitioner, could have discharged the notice u/s 148 of the Act. There is no reason to postpone it to the assessment proceedings stage. - HC

  • Revision u/s 263 - goodwill created by virtue of demerger scheme - the Assessing Officer had examined the aspect of the assessee’s claim during the course of acceptance, in the opinion of the Tribunal, the Assessing Officer while passing order u/s 143(3) had taken a plausible view sustainable in the eye of law. Relying on the decision, it was held that the assessee company is entitled to claim depreciation on goodwill expended at the time of amalgamation of companies. - Revision is not sustainable - HC

  • Reopening of assessment - genuineness of the purchase transactions - information was not supplied to the petitioner - Despite these documents having been placed by the petitioner/assessee before the AO, the AO concluded that the petitioner had nothing to submit by way of a proper explanation regarding the transactions in issue. - Mater restored back - HC

  • Reopening of assessment - under-declaration of the investment made - Whether merely because certain issues and additions were considered during the block assessment proceedings, which were deleted by the appellate authority on technical grounds, the same, could not form the basis for triggering reassessment proceedings? - ITAT rightly quashed the reassessment proceedings - HC

  • Income deemed to accrue or arise in India - Royalty receipt - there was no transfer of copyright in the ‘off the shelf’ sale software; the consideration received thereby could not be construed as royalty and hence was not taxable - the Tribunal was right in concluding, that the consideration received by the respondent/assessee, did not constitute royalty - HC

  • Validity of draft assessment order passed u/s 143(3) r.w.s. 144 r.w.s. 144C(1) - reference to DRP - the final assessment order was passed by the AO on 19.12.2017 and served the same to the assessee on 21.12.2017. Therefore assessee has an option to challenge the final assessment order before the CIT(A) in accordance with law. Therefore no merits in the grounds raised by the assessee. The present appeal filed by the assessee is devoid of merits and against the provisions of section 144C (2)(b)(ii). Therefore the appeal filed by the Assessee is hereby dismissed. - AT

  • Depreciation - Determination of cost of acquisition - Reduction of amount of subsidy - Explanation 10 to section 43(1) - the said section is not applicable on the facts of the case in hand in as much as the subsidy has not been granted for meeting cost of any asset but for larger public interest of industrial development of the State of Punjab. - Further, even if the action of the Assessing Officer has to be accepted, then the same should have been taken in A.Y 1999-2000, and not after a gap of 10 years - AT

  • Denial of registration u/s 12A - activities are charitable in nature or not? - As per the bye laws of the assessee society, the membership is open to all state government officers, officers of All India Services serving in Uttarakhand and officers of central government serving and residing in Uttarakhand. - CIT(E) directed to grant registration - AT

  • Revision u/s 263 - source of cash deposited in the Bank account - There is a direct nexus between the transaction of sale and the cash deposited in the bank account of the assessee as the transaction of sale of land is registered on 26.04.2010 and the cash was also deposited by the assessee on the same date. AO has accepted the deal of sale of agriculture land with a conscious and independent application of mind. - AT

  • Deduction u/s 80P(2)(a) - interest income - When the assessee is wholly and exclusively doing its business for its members, the earning of interest on FDs with the banks is incidental to the assessee society’s business of accepting the deposit and provision of credit facilities from/to its members. Hence, the interest income has rightly been treated as business income by the assessee society and assessed to tax under the head “profit and gains of business”. - AT

  • Validity of the order passed u/s 147 - insufficient reason to believe - There is no basis mentioned in the reasons for the belief of the Assessing Officer that the assessee’s entire claim of deduction under Section 48 of the Act was incorrect. And this escapement of income has absolutely no link or correlation with the information in the possession of the AO that the other co-owner of land had incorrectly claimed deduction under Section 54B of the Act. - Reassessment order quashed - AT

  • IBC

  • Validity of Admission of application for CIRP by the NCLT of the respondent no. 2 (SBI) after condoning delay and without making the appellant Bank as party - Period of limitation - if the OTS proposals are found to have been made by the Corporate Debtor and the balance sheet reflected the debt in the financial year ending 31st March, 2015, then in fact, there would be no delay on the part of the Respondent No. 2- State Bank of India in initiating the proceeding as the same would be within the extended period of limitation provided under Section 18 of the Limitation Act. - SC

  • Approval of Resolution Plan - when to obtain approval from the CCI? - Although, the RP subsequently clarified that approval can be obtained even after the approval by the CoC, which was in accordance with the prevalent legal position as settled by this Tribunal in Arcelor Mittal and other cases - Section 31, sub-section (4) proviso has to be read to mean that though the approval by the CCI is ‘mandatory’, the approval by the CCI prior to approval of CoC is ‘directory’ - AT

  • Who is entitled to get the income tax refund after de-merger - Jurisdiction to direct the IT Department and RBL Bank Ltd. - It is submitted that, income tax refund which had been wrongly credited by the IT Department to CLCI-Respondent No.4 - NCLT rightly dismissed the request of the appellant - AT

  • Central Excise

  • Refund of unutilised CENVAT credit on closure of factory in the form of cash - since the accumulated cenvat balance lying in the books was claimed as refund, in my considered view, it cannot be said that such claim is barred by limitation of time. In other words, availment of cenvat credit is an indefeasible right of an assessee and such right conferred under the statue cannot be taken away on the ground of limitation. - Third Member Bench decision - Refund allowed - AT

  • VAT

  • Effect of the amendment - Retrospective or prospective - It may be clarified that the expression “proceed to determine” is found in the amendment made to the KVAT Act with effect from 2017 Finance Act, whereas in the earlier amendment, the expression clearly was to “complete the assessment” in the third proviso of sub-section (1) of Section 25 which is also a clear indication of the intention of the Legislature to give a command to the concerned assessing officers seized of the proceedings which had been initiated under sub-section (1) of Section 25 to complete within the time-frame as stipulated in the said proviso. The amendment to the Kerala Finance Act, 2017 is with effect from 01.04.2017 and does not have any retrospective effect. - SC


Case Laws:

  • GST

  • 2023 (9) TMI 857
  • 2023 (9) TMI 856
  • 2023 (9) TMI 855
  • 2023 (9) TMI 854
  • 2023 (9) TMI 853
  • 2023 (9) TMI 852
  • 2023 (9) TMI 851
  • Income Tax

  • 2023 (9) TMI 858
  • 2023 (9) TMI 850
  • 2023 (9) TMI 849
  • 2023 (9) TMI 848
  • 2023 (9) TMI 847
  • 2023 (9) TMI 846
  • 2023 (9) TMI 845
  • 2023 (9) TMI 844
  • 2023 (9) TMI 843
  • 2023 (9) TMI 842
  • 2023 (9) TMI 841
  • 2023 (9) TMI 840
  • 2023 (9) TMI 839
  • 2023 (9) TMI 838
  • 2023 (9) TMI 837
  • 2023 (9) TMI 836
  • 2023 (9) TMI 835
  • 2023 (9) TMI 834
  • 2023 (9) TMI 833
  • 2023 (9) TMI 832
  • 2023 (9) TMI 831
  • 2023 (9) TMI 830
  • 2023 (9) TMI 829
  • 2023 (9) TMI 828
  • Customs

  • 2023 (9) TMI 827
  • 2023 (9) TMI 826
  • 2023 (9) TMI 825
  • 2023 (9) TMI 824
  • Corporate Laws

  • 2023 (9) TMI 823
  • 2023 (9) TMI 822
  • Insolvency & Bankruptcy

  • 2023 (9) TMI 821
  • 2023 (9) TMI 820
  • 2023 (9) TMI 819
  • Service Tax

  • 2023 (9) TMI 818
  • 2023 (9) TMI 817
  • 2023 (9) TMI 816
  • 2023 (9) TMI 815
  • 2023 (9) TMI 814
  • 2023 (9) TMI 813
  • 2023 (9) TMI 812
  • 2023 (9) TMI 811
  • 2023 (9) TMI 810
  • 2023 (9) TMI 809
  • 2023 (9) TMI 808
  • Central Excise

  • 2023 (9) TMI 807
  • 2023 (9) TMI 806
  • 2023 (9) TMI 805
  • 2023 (9) TMI 804
  • 2023 (9) TMI 803
  • 2023 (9) TMI 802
  • CST, VAT & Sales Tax

  • 2023 (9) TMI 801
  • 2023 (9) TMI 800
 

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