"01 September 2018" Archive - Page 2

Merely because Agricultural land is declared as industrial land same cannot be held to be a capital asset

ITO Vs Meera Thapa Prop (ITAT Delhi)

ITO Vs Meera Thapa (ITAT Delhi) Assessee has sold agricultural land as it has been proved by the certificate of Tehsildar and other land records. He further held that merely because the land is declared as industrial land same cannot be held to be a capital asset and capital gain cannot be charged on sale […]...

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Place of supply – Intermediary Services

The confusion still persists about payment of CGST + SGST or IGST on intermediary services. We have tried to analyses the legal position and implications thereof. As per Section 2(13) of IGST Act:  (13) “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goo...

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Posted Under: Income Tax |

No Deduction on failure to remit employees’ contribution to EPF within statutory due date

M/s. Popular Vehicles & Services Pvt. Ltd. Vs The Commissioner of Income Tax (Kerala High Court)

M/s. Popular Vehicles & Services Pvt. Ltd. Vs CIT (Kerala High Court) Sub-clause (va) of Section 36(1) takes care of the employee’s contribution, which stands unaffected by Section 43B as the restriction available in Section 43B is already available under the Explanation to the said clause, with a qualification of the payment be...

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Interest-free loan to sister concern- Sufficient own funds-No Disllowance can be made

Yogendra Khandelwal Vs ACIT (ITAT Jaipur)

Undisputedly, interest-free funds available with assessee were far in excess of amount advanced to sister concern and a presumption would arise in favour of the assessee that interest-free funds had been utilized for advancing interest free loan to the sister cocnern, therefore, disallowance of deduction under section 36(1)(iii) was not j...

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If no income U/s. 5 than no notional income can be brought to tax U/s. 92: ITAT Rules in the case of Shilpa Shetty

Shilpa Shetty Vs ACIT (ITAT Mumbai)

Mumbai ITAT Ruling – Section 92 of the Act is not an independent charging section to bring in a new head of income or to charge tax on income which is otherwise not chargeable under the Act. Accordingly, the ITAT held that, if no income accrues or arises or is received by the assessee under […]...

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Section 40A(2)(b): Interest Rate on Permanent Loan cannot be compared with Rate on Temporary Loan

CIT Vs Shiv Agrevo Ltd. (Rajasthan High Court)

CIT Vs  Shiv Agrevo Ltd. (Rajasthan High Court) The prevailing market rates of interest for the loans of permanent nature were between 18 per cent, to 24 per cent, whereas the cases compared by AO pertained to the loans of temporary nature and that the assessee had advanced money for the purpose of business needs. […]...

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Disclosure requirement relating to SBNs not applies to F.Y. 2017-18

In Notes to Account as well as Audit Report, the disclosure requirement relating to SBNs are not applicable for the Financial Year 2017-18 & subsequent years. Consequent disclosures may be made in the Financial Statements/Audit Reports....

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Posted Under: Income Tax |

Goods seized for non filing of Part-B of E-way Bill must be be released on security

New Shiva Transport Service Vs State of U.P. (Allahabad High Court)

The submission of Sri Vishwjit, learned counsel for the petitioners is that the seizure is on account of non filing Part-B of E-way Bill. Part-B of E-Way Bill requires the details of the vehicle carrying the goods and the destination....

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Input Tax Credit with respect to Customs House Agents / Broker Services

GST is settling down and the council is the ray of hopes for further journey and so far. Although, we are trying to comply with the stringent provisions about availment of the Input Tax credit, we are still grappling with few of the input services. Typically, industry keeps importing inputs and capital goods from outside […]...

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Posted Under: Income Tax |

Verification of Transitional Credit (TRAN-1) claimed under GST in Electronic Credit Ledger

Internal Circular No. 23A of 2018 (01/09/2018)

It is hereby clarified that the MGSTD (State Tax) authorities should only verify the Transitional Credit in respect of MVAT and Entry Tax. In other words, the State Tax Authorities should not undertake the verification of the CENVAT credit pertaining to the Central Excise Act or, as the case may be, the Service Tax Act....

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