"October, 2018" Archive

Securitization of lease receivables is a taxable receipt in the year of securitisation

L & T Finance Limited Vs DCIT (Bombay High Court)

Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the amount of Rs.1.69 Crores credited to the profit and loss account on account of securitization of lease rentals receivable in subsequent years is chargeable to tax in the assessment year 2002-03 ?....

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CIT cannot pass a revision order unless assessee is given opportunity of being heard

Ambuja Cements Limited Vs CIT (ITAT Mumbai)

Ambuja Cements Limited Vs CIT (ITAT Mumbai) Section 263(1) of the Act obligates the Commissioner to give the assessee an opportunity of being heard before passing of his order. No doubt the Commissioner is not disentitled to consider a point which is not stated in the notice so issued. However, the obligation to given an […]...

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No deduction U/s. 80-IB(10) if Assessee utilises only small part of eligilble FSI

ITO Vs J R construction (Gujarat High Court)

Where assessee utilized only a small part of eligilble FSI remaining part was sold, then assessee was not entitled deduction under section 80IB. In respect profits assessee for sale of unutilized part....

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Set off of unabsorbed business losses against capital income on slump sale

Gouranga Cement Pvt.Ltd. Vs DCIT (ITAT Kolkata)

Gouranga Cement Pvt. Ltd. Vs DCIT (ITAT Kolkata) It is undisputed fact that the assessee has the earned the long term capital income by way of transfer of the business assets such as factory building, Plant & Machinery, electric installation under the head slum sale. Thus the nature of LTCG is in the nature of […]...

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No VAT on dyes & chemicals washed away during Job work & get embedded into final product.

M/s A P Processors, Vs State of Haryana (Punjab and Haryana High Court)

Whether on the facts and in the circumstances of the case, the learned Tribunal was justified in upholding the levy of tax on chemicals used as consumables in the process of job work of dyeing of fabric by assuming that property in the goods has passed on to the principals?...

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Adjudicating Authorities & Appellate Tribunal under Benami Property Law- Reg.

Order No. S.O. 5602(E) (31/10/2018)

section 26 of the Benami Act provides that the Adjudicating Authority shall not pass order after the expiry of one year from the end of the month in which the reference has been received by it from the Initiating Officer and whereas, on the date on which the Adjudicating Authority under the Benami Act shall discharge the functions under ...

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Reopening of assessment not invalid for filing of return with wrong jurisdiction

Smt. Vidhya Poonia Vs ITO (ITAT Jaipur)

Smt. Vidhya Poonia Vs ITO (ITAT Jaipur) AO at the time of initiation of proceedings under section 148 has to form the belief on the basis of the material available which is sufficient for coming to the conclusion that prima facie income assessable to tax has escaped assessment, therefore, filing of return with wrong jurisdiction could [&...

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MVAT: e-CST module in MAHAGST portal modified to address issues

Trade Circular No. 31T of 2018 (31/10/2018)

The department has received representations from trade, stating difficulties in obtaining e-CST declarations/certiticates for period 2016-17 due to incorrect entries filed by dealer while filing annual returns u/s 20(4)(b) of MVAT Act, 2002.The present e-CST module in MAHAGST portal is modified to address above mentioned issue...

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Tax Audit Due date extension: Status of Writ filed in various High Courts (Updated on 31.10.2018)

Here we have compiled Status of Writ Filed in Various High Court for Extension of Tax Audit Due Date. As per our knowledge 12 writ petition been filed with various High Courts out of which Six Writ petition been already disposed off, Five are pending and status of one is not known to us. 1. […]...

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Posted Under: Income Tax |

Autonomy of RBI Is an Essential & Accepted Governance Requirement

Autonomy for Central Bank, within the Framework of the RBI Act, Is an Essential and Accepted Governance Requirement: Says Government The autonomy for the Central Bank, within the framework of the RBI Act, is an essential and accepted governance requirement. Governments in India have nurtured and respected this. Both the Government and the...

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Posted Under: Income Tax |

CBDT notifies Indian commodity Exchange U/s. 43(5)(e)(iii)

Notification No. 76/2018-Income Tax (31/10/2018)

Central Government hereby notifies Indian commodity Exchange Limited as a ‘recognised association’ for the purpose section 43(5)(e)(iii) with effect from 01.11.2018 subject to fulfillment of  conditions specified in Notification No. 76/2018 dated 31st of October, 2018. Government of India Ministry of Finance Department of Re...

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CBDT notifies Charutar Arogya Mandal, Gujarat U/s. 35(1)(ii)

Notification No. 75/2018 -Income Tax (31/10/2018)

CBDT notifies M/s Charutar Arogya Mandal, Gujarat has been approved by Central Government under section 35(1)(ii) of the Income-tax Act, 1961 from Assessment year 2019-2020 onwards in the category of 'University, College or other Institution', engaged in research activities vide Notification No. 75/2018 Dated 31st October, 2018....

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Reverse Cenvat credit on bottles procured from sister units & sold in market: CESTAT

M/s Hindustan Coca Cola Beverages Pvt. Ltd. Vs Commissioner of Central Excise (CESTAT Hyderabad)

M/s Hindustan Coca Cola Beverages Pvt. Ltd. Vs Commissioner of Central Excise (CESTAT Hyderabad) The facts of the case in dispute are that the appellant availed on common input services and goods and obtained to the services reversed under Rule 6(3A). The only questions to be decided are a) whether the value of the goods […]...

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Charitable Purpose u/s. 2(15) of Income Tax Act ,1961

Courts have held that the expression ‘charitable purpose’ is sufficiently wide in scope to include a variety of activities. For instance, promotion of sports and games is a charitable purpose...

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Posted Under: Income Tax |

FAQs Related to Income Tax Provisions of charitable trust and NGOs

FREQUENTLY ASKED QUESTIONS (FAQs) Q.1 Are NGOs and other charitable and non-profit organizations entitled to claim tax exemption under income tax law in India? Are donors who contribute to such organizations also entitled to any tax deduction? Ans. Yes, such exemption is available to, (i) public charitable trusts or other legal obligatio...

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Posted Under: Income Tax |

TDS on Purchase of Immovable Property (Section 194IA)

1. Deductor & Deductee: Any person responsible for paying any sum to a resident transferor by way of consideration for transfer of an immovable property (i.e. building or part of building or any land other than agricultural land) is liable to deduct tax at source u/s 194-IA. This provision came in June 2013. In other […]...

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Posted Under: Income Tax |

Assessee in default Under Income tax Act, 1961

When any sum is payable as a result of any order passed under the Act, then the Assessing Officer shall serve upon the assessee a notice of demand U/s 156 specifying the sum so payable. Whereas Section 143 (1) is itself deemed as notice of demand & demand notice U/s 156 need not to be […]...

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Posted Under: Income Tax |

PML (Maintenance of Records) Second Amendment Rules, 2018.

Notification No. G.S.R. 1078(E) (31/10/2018)

Ministry of finance notified Prevention of Money-laundering  (Maintenance of Records) Second Amendment Rules, 2018 with effect from 31st October, 2018. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, in rule 9, in sub-rule (1A), for the words “three days”, the words “ten days”, shall be substituted. Un...

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Tariff Notification No. 89/2018-Customs (N.T.) Dated 31.10.2018

Notification No. 89/2018-Custom (N.T.) (31/10/2018)

Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification No. 89/2018-CUSTOMS (N.T.) New Delhi, 31st October, 2018 S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect ...

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GST Rule 142A Procedure for recovery of dues under existing laws

Extract of Rule 142A of Central Goods and Service Tax Rules, 2017 as inserted vide Notification No. 60/2018-Central Tax Dated 30th October, 2018. 142A. Procedure for recovery of dues under existing laws. – (1) A summary of order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other [&helli...

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Posted Under: Income Tax |

Ghost of Sabarimala will continue to haunt for some time, at least…

The Author in this article tries to put forth the consequences of the issue involved in Sabarimala temple matter decided by the constitution bench of Court of India on 28-Sept-2018...

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Posted Under: Income Tax |

Restoration of Provisional Attachment under GST- How to apply?

A. FAQs on Filing Application for Restoration of Provisional Attachment under GST Q.1 What is Restoration of Provisional Attachment? Ans: If proceedings are pending under section 62 or 63 or 64 or 67 or 73/74 i.e. (proceedings are yet to be concluded) and Commissioner/ Competent authority is of opinion that for the purpose of protecting [...

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Posted Under: Income Tax |

Re-Assessment Order under Karnataka VAT after GST rollout is Valid

M/s. Prosper Jewel Arcade LLP Vs The Deputy Commissioner Commercial Taxes (High Court Karnataka)

M/s. Prosper Jewel Arcade LLP Vs The Deputy Commissioner Commercial Taxes (High Court Karnataka) The Court further added that “therefore, the larger constitutional questions raised in the present writ petition and as sought to be canvassed by the learned Senior Counsel for the petitioner like the substitution of Entry 54 in List II, eff...

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Allow to amend TRAN-1 (CENVAT credit) if mistake is bonafide

OEN India Ltd. Vs Union of India & Others (Bombay High Court)

OEN India Ltd. Vs Union of India & Others (Bombay High Court) HC directs Petitioners to file representation to CBIC. This representation would be considered by the CBIC for verification and the bona fides of the claim made by the Petitioners. If satisfied, Petitioners would be allowed to amend the Trans­1 form to reflect the [&hellip...

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Empanelment for Concurrent Audit of National Insurance Company Ltd.

Tender Document For Selection Of CA Firm For Concurrent Audit Of Investment Operations Of Empanelment for Concurrent Audit of National Insurance Company Ltd....

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Posted Under: Income Tax |

Appointment of Secretarial Auditor with New India Assurance Co. Ltd.

e-TENDER FOR REQUEST FOR PROPOSAL FOR SELECTION OF Practicing Company Secretaries/Firm of Practicing Company Secretaries for conducting Secretarial Audit of the Company for the year 2018-2019 of New India Assurance Company Limited....

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Posted Under: Income Tax |

18% GST on Supply of minerals & erection work as work contract services

In re Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (GST AAR Madhya Pradesh)

In re Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (GST AAR Madhya Pradesh) As per the Memorandum of Association of the Company, Main objects to be pursued by the Company on its incorporation is to carry on the business of purchasing, selling, importing, exporting, selling, trading of electrical energy, including formulatio...

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5% GST payable on Royalty to Govt for right to use minerals

In re Pioneer Partners (GST AAR Haryana)

In re Pioneer Partners (GST AAR Haryana) The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973. The royalty/dead rent paid/payable to the Government by the applica...

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18% GST payable on Construction of residential flats for MPPGCL

In re M/s. Shreeji Infrastructure India P. Ltd. (GST AAR Madhya Prdesh)

The activity in question definitely does not have any relation to the principal work of power generation entrusted by the state government to MPPGCL, and therefore the works contract service of construction of residential quarters would attract GST @18% (9% CGST + 9% SGST) in terms of Notification No.11/2017-CT Rate dtd.28.06.2017 and cor...

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‘Militry Malai Mithai’ classifiable as ‘Sweetmeat’: GST AAR

In re M/s. Italian Edibles Private Limited (GST AAR Madhya Pradesh)

The product 'Militry Malai Mithai' as described in the Application will merit classification under Chapter Heading 2106 90 of the GST Tariff as 'Sweetmeat' and would be chargeable to 5% GST ...

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No action can be taken if no specific evidence of profiteering: NAA

Sh. Raman Khaira Vs M/s. Yum Restaurants India Pvt. Ltd. (National Anti-Profiteering Authority)

Sh. Raman Khaira Vs M/s. Yum Restaurants India Pvt. Ltd. (National Anti-Profiteering Authority) We have carefully considered the Report filed by the Applicant No. 2 as well as the submissions made by the Respondent No. 1 and it is obvious from the narration of the facts stated above that the investigation conducted in the matter […...

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Manual Refunds In GST- Standard Operating Procedure

Introduction: Refund module is currently not operational on the common portal of the GSTN causing delay in filing and processing of application for refund electronically. Manual filing of applications/documents/forms pertaining to refund claims has been prescribed to overcome this difficulty and, such applications shall also be processed ...

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Posted Under: Income Tax |

GST ITC mismatching in Form GSTR1, GSTR 2A, GSTR 2 and GSTR 1A

Input Tax Credit Mismatching Procedure in Filing Form GSTR 1, Form GSTR 2-A, Form GSTR 2 and Form GSTR 1-A Everyone knows that the due date for filing Form GSTR-1 for the period from July 2017 to March 2018 is on 31.10.2018.  The Due date for filing Form GSTR-1 is necessary for Form GSTR-2, GSTR-4A […]...

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Posted Under: Income Tax |

MGT-9 is it still relevant?

It was clear that Government is not happy with the requirement of MGT-9 and Companies Amendment Act, 2017 has done away with the requirement of MGT-9. ...

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Posted Under: Income Tax |

Demand and Recovery under GST

Burden of proof in case a person claim that he is eligible for input tax credit under GST shall lie on the person who claims it. Hence an onerous duty is caste on the taxpayer to prove his credits failing which presumption of wrong availment or wrong utilization can be drawn. However in all other cases tax authorities need to prove that t...

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Posted Under: Income Tax |

Remuneration paid to managing director in previous year cannot be a criterion for invoking provisions of section 40A(2)section 40A(2)

Benninger India Private Ltd Vs. DCIT (ITAT Mumbai)

Further, the remuneration paid to managing director in the previous year cannot be a criterion for invoking the provisions of section 40A(2) of the Act as the assessee’s turnover stood at ₹ 283 lakhs as compared to ₹ 99 lakhs in immediately previous year. This has resulted into rise of 185% in turnover. ...

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Refund of Proprietary Concern can’t be adjusted towards Demand of Partnership concern

M/s Shri Mahavir Industries Vs CGST (CESTAT Delhi)

M/s Shri Mahavir Industries Vs CGST (CESTAT Delhi) A proprietary unit is an individual legal entity and any refunds due to the proprietary unit cannot be adjusted or appropriated towards the demand which may be pending recovery against an another independent legal entity, of which the proprietor of unit is a partner. It has to […]...

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For Capital gain date of asset ‘held’ is to be considered and not the date of obtaining absolute legal ownership

Ramesh A. Radhakrishnan Vs Assistant Commissioner of Income Tax (ITAT Mumbai)

Ramesh A. Radhakrishnan Vs ACIT (ITAT Mumbai) We find that the expression used is ‘held’ as against ‘acquired’ or ‘purchased’ as used in other Sections like section 54 / 54F which shows that legislatures were conscious while making use of this expression. The expressions like ‘owned’ / ‘ac...

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Block Assessment invalid if no Satisfaction recorded by AO of Searched Party

DCIT Vs. Salasar Dwellers Pvt. Ltd. (ITAT Mumbai)

DCIT Vs. Salasar Dwellers Pvt. Ltd. (ITAT Mumbai) Satisfaction in the case is not recorded by the AO of the searched party, which is a pre-condition for invoking jurisdiction u/s 153C of the Act and hence, the assessment framed u/s 153C read with Section u/s 143(3) of the Act is bad in law. FULL TEXT […]...

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Customs Electronic sealing implementation extended to 01st January, 2019

Circular No. 41/2018-Customs (30/10/2018)

CBIC has decided to extend the date of implementation of Electronic sealing for Deposit in and removal of goods from Customs bonded Warehouses to 01st January, 2019 in order to enable establishment of infrastructure and procurement of seals by warehouse owners....

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PMS fee not allowable while computing capital gain on Sale of shares

Mateen Pyarali Dholkia Vs DCIT (ITAT Mumbai)

While computing capital gain on sale of shares kept under Portfolio Management Scheme (PMS), assessee could not claim deduction of PMS fee as the same neither fell under the category of transfer fee, nor under the category of cost of acquisition/improvement....

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Sea Cargo Manifest and Transhipment (Second Amendment) Regulations, 2018

Notification No. 88/2018-Customs (N.T.) [G.S.R. 1076(E)] (30/10/2018)

(1) These regulations may be called the Sea Cargo Manifest and Transhipment (Second Amendment) Regulations, 2018. (2) They shall come into force on the date of their publication in the Official Gazette....

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Interest on enhanced compensation for compulsory acquisition of agricultural land eligible for exemption U/s. 10(37)

ITO Vs Shri Basavaraj M Kudarikannur (ITAT Bangalore)

ITO Vs Shri Basavaraj M Kudarikannur (ITAT Bangalore) We have considered the submissions of the ld. DR. It is not disputed by the AO that the land acquired was agricultural land and the conditions laid down u/s. 10(37)(i) to (iv) are applicable to the land which is in question which was compulsorily acquired. It is […]...

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HC allows release of goods on furnishing security for Tax & Penalty

Krishna Enterprises Vs State of U.P. & Ors. (Allahabad High Court)

Krishna Enterprises Vs State of U.P. & Ors. (Allahabad High Court) Heard Shri Aditya Pandey, learned counsel for the petitioner and the learned Standing Counsel on behalf of the State-respondents. The goods of the petitioner under transportation along with the vehicle have been seized vide order dated 08.05.2018 passed under Section 1...

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Slump sale of business as going concern to related party qualifies as supply

In re Merck Life Science Private Limited (GST AAR Maharashtra)

Seller has agreed to sell, transfer, convey, assign and deliver to the applicant or to any affiliates as directed by applicant for the BPL business which would be transferred as a slump sale on going concern basis. BPL business means BP business, LS Business and PM business as going concern as outlined in 'Definitions and Interpretations'...

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All you wanted to know about PAN

All you wanted to know about PAN What is PAN? All India UNIQUE 10 Alphanumeric Character allotted by the Income Tax Department. PERMANENT ACCOUNT NUMBER (PAN) does not change with, change of address or station or change of Assessing Officer, etc PAN is needed by > an Income Tax assessee, or > any person carrying […]...

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Posted Under: Income Tax |

No transfer on Gift of share in property against cash gift under Family settlement

Jyoti Rakesh Kapoor Vs. ITO (ITAT Mumbai)

Jyoti Rakesh Kapoor Vs. ITO (ITAT Mumbai) We find merits in the arguments of the assessee for the reason that the assessee has gifted her 50% share in the property in favour of her brother in law in pursuance of family arrangement between the family members for acquiring separate property for each family member. The […]...

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Show cause notice cannot pre-judge the issue- Order denying credit cannot be SCN

TVS Motor Company Ltd. Vs Asstt. Commr. of CGST & CE (Madras High Court)

TVS Motor Company Ltd. Vs Asstt. Commr. of CGST & CE (Madras High Court) The respondent states that the impugned order is only a show cause notice (SCN). This Court is unable to agree with the said stand taken by the learned Senior Panel Counsel appearing for the Revenue, as a show cause notice cannot […]...

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Running school buses for fees by Trust is not a commercial activity if same is incident to achieve main object of proving education

Delhi Public School Ghaziabad Vs ACIT (ITAT Delhi)

Delhi Public School Ghaziabad Vs ACIT (ITAT Delhi) The assessee did not provide transport facility to the outsiders and was providing the same only to the students and the staff working for the society. Since transport facility was incidental to achieve the object of providing education, i.e., the object of the society, therefore, the tra...

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Articles under UAE VAT law and their Analysis

Article-2 of Decree Law Article-2 of Decree law provides scope of VAT in UAE, which provides VAT shall be levied on: a) Every Taxable Supply andDeemed Supply made by the Taxable Person. b) Import of Concerned Goods except as specified in the Executive Regulation of this Decree-Law. Definition of Taxable supply has been provided in Arti...

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Posted Under: Income Tax |

Rules, Pattern and Syllabus for GST Practitioners (GSTP) Examination

Notification No. 60/2018-Central Tax [G.S.R.1075(E).] (30/10/2018)

Examination of Goods and Services Tax Practitioners.- (1) Every person referred to in clause (b) of sub-rule (1) of rule 83 and who is enrolled as a goods and services tax practitioner under sub-rule (2) of the said rule, shall pass an examination as per sub-rule (3) of the said rule....

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Exercise Caution in dealing with MSRL Group Limited : DGFT

Trade Notice No. 36/2018 (30/10/2018)

F. No. 01/142/HQ/18-19/ECA.II Government of India Ministry of Commerce and Industry Directorate General of Foreign Trade (Enforcement-Cum-Adjudication-II) Udyog Bhawan, New Delhi Dated: 30th October , 2018 TRADE NOTICE No.36/2018 To All the RAs All the Export Promotion Councils. Subject:- Caution against dealing with MSRL Group Limited, ...

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SEBI Advisory in respect of Foreign Trading Portals

Press Releases No.: 47/2018 (30/10/2018)

It has come to the notice of SEBI that investors in India are being offered services by various firms through online web portals to trade in a variety of financial products including various types of derivatives, which are apparently traded on overseas platform/exchange. ...

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GST Return of Time Expired Drugs or Medicines – Critical Analysis of Recent Circular

1. Circular No. 72/46/2018-GST dated 26.10.2018 has been issued clarifying the procedure in respect of return of time expired drugs or medicines. Said circular clarifies that the time expired drugs or medicines can be returned either by issuance of credit note or by treating the said goods return as fresh supply and hence on an […]...

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Posted Under: Income Tax |

How I cleared my CA Final by self study?

What would be your reaction if I say I have cleared my ca final in the first attempt that’s through self-study. The reaction would be like: ‘wow’, ‘Is it possible’, ‘how had you done it ?? The answer to above is Yes, it is possible. How it is done and how even you can do […]...

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Posted Under: Income Tax |

Removal of Disqualification of Directors (in case of Struck off of name of Companies)

This summarizes the removal of disqualification of director in case where companies has been struck off. It can be done with or without the revival of the company...

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Posted Under: Income Tax |

Battle Between Festivals and Exams…!!

Yes, the battle has started again…….The battle between diwali and padhai, between cousins k sath night out or night study, between night study wali coffee or family k sath mithai…..The season has begun now….:P :P...

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Posted Under: Income Tax |

When ITC has to be blocked/unblocked from Electronic credit ledger

Memo No. 3555/GST-2 (30/10/2018)

The functionality of blocking and unblocking Input Tax Credit is an important tool for safeguarding the Government revenue particularly in cases of fraudulent activities by the taxpayers. So the jurisdictional officers are hereby directed to use this functionality for blocking/unblocking Input Tax Credit under the following situations:-...

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Disallowance U/s. 36(1)(iii) justified for Interest-free loan to sister concern without commercial expediency

M/s C.R. Auluck & Sons Pvt. Ltd. Vs ACIT (ITAT Chandigarh)

M/s C.R. Auluck & Sons Pvt. Ltd. Vs ACIT (ITAT Chandigarh) Assessee has failed to establish its case of commercial expediency.  The intention of assessee in advancing the said interest-free loan to its sister concern was not for the purpose of business because the two concerns were carrying on independent lines of manufacturing and t...

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S. 43B Overdue interest converted into loan allowable only on payment

Teesta Agro Industries Ltd Vs DCIT (ITAT Kolkata)

Explanation 3C to section 43B provides that interest payable can only be allowed to an assessee when the same is actually paid and any interest which has been converted into a loan shall not be deemed to have been actually paid. ...

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Mere investigation wing report not sufficient to treat a transaction as Bogus

ITO Vs Kapil Mittal (ITAT Jaipur)

Finding of AO is based merely on suspicion and surmises without any tangible material to show that the assessee has introduced his own unaccounted income in the share of long term capital gain even otherwise the reliance of the statements recorded by the Investigation Wing, Kolkata wherein without giving an opportunity of cross examinatio...

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S. 80IB Deduction cannot be denied for mere non-submission of Form 10CCB Audit Report with Return

DCIT Vs M/s Reckitt Benckiser (India) Ltd. (ITAT Kolkata)

DCIT Vs M/s Reckitt Benckiser (India) Ltd. (ITAT Kolkata) We come to Revenue’s appeal. Its sole grievance reads that the CIT(A) has erred in law and as facts in allowing arrears Section 80IB and 80IC deduction claims totaling to Rs. 1,39,48,12,000/- thereby reversing Assessing Officer’s action not taking any cognizance thereof solely ...

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Period of holding whether to be reckoned from purchase agreement registration date or stamp date

Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai)

Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai) In the instant case it is crystal clear that by virtue of agreement for sale dt. 24-04-2008, and making a part payment, the assessee has acquired irrevocable tight, title and interest including possession in the house property in the form of Godown. The registration of the property which [&h...

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IBBI – Limited Insolvency Examination- FAQs -1st November, 2018

IBBI – Limited Insolvency Examination Frequently Asked Questions (For Examinations from 1st November, 2018) 1. Why should I take the Limited Insolvency Examination? Is it mandated under any law and for what purpose? If you wish to be registered as an insolvency professional under the Insolvency and Bankruptcy Code, 2016, you must pa...

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Posted Under: Income Tax |

Notional Income cannot be added for property lying vacant due to Act of Government

DCIT Vs M/s. Turner Morrison Limited (ITAT Kolkata)

Appellant was prevented by sufficient cause not to let out this property. Therefore, the Notional Income from the said property lying vacant due to Act of Government cannot be added back. ...

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S. 276(C)(1) During pendency of stay application criminal prosecution should not be launched

Ramchandran Ananthan Pothi Vs UOI and Ors. (Bombay High Court)

Ramchandran Ananthan Pothi Vs UOI and Ors. (Bombay High Court) In the event, the petitioner seeks a stay of the order passed by the Assessment Officer by making a stay application, then, during the pendency of such application, the criminal prosecution Section 276(C)(1) of the Income  Tax Act 1961 should not be launched and, if ...

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S. 194H TDS- Incentive paid by dealers to sub-dealers cannot be equated with commission

Rakesh Kumar Vs CIT (ITAT Delhi)

Rakesh Kumar Vs CIT (ITAT Delhi) The permissive right to use the SIM cards to get access to the phone network of the telecom companies is given only to the ultimate customers who have activated the connections. Thus, in the case of the telecom company, it is the owner of the prepaid voucher/SIM card and […]...

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Compensation/damage for settlement of dispute is capital receipt

Shri Jackie Shroff Vs ACIT (ITAT Mumbai)

As could be seen, the compensation received by the assessee was not for his professional activities but for settlement of dispute between him and some other party resulting in filing of a criminal complaint. That being the case, the amount received towards compensation/damage cannot fit in to the definition of income as per section 2(24) ...

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S. 54 Cost of land cannot be segregated in computation of cost of new asset

C. Aryama Sundaram Vs CIT (Madras High Court)

C. Aryama Sundaram Vs CIT (Madras High Court) What has to be adjusted and/or set off against the capital gain is, the cost of the residential house that is purchased or constructed. Section 54(1) of the said Act is specific and clear.It is the cost of the new residential house and not just the cost […]...

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Computation of Turnover in case of business of accommodation entries and applicability of Tax Audit

Shri Mukesh Choksi Vs The ACIT (ITAT Mumbai)

Shri Mukesh Choksi Vs ACIT (ITAT Mumbai) It was submitted that the case of the assessee was akin to the share brokers and therefore only the commission should be considered as receipts of the assessee and not the purchase/ sale value of shares. In our view the claim had been rightly rejected by the CIT(A). […]...

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No service tax on activities undertaken in the capacity of a real estate developer

Prestige Estates Projects Pvt Ltd Vs Commissioner Of Central Tax (CESTAT Bangalore)

Prestige Estates Projects Pvt Ltd Vs Commissioner Of Central Tax (CESTAT Bangalore) It is seen that the amounts received by the appellants in respect of 3 activities undertaken by them i.e. ‘assignment transfer income’, assessment and bifurcation fees, ‘Khata transfer fees’ and ‘forfeiture’ amounts find their origin in the agr...

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No Penalty U/s. 271AAA on Income surrendered during Assessment

DCIT Vs Star Wire Ind. Ltd. (ITAT Delhi)

DCIT Vs Star Wire Ind. Ltd. (ITAT Delhi) It is pertinent to note that the Assessing Officer himself has recorded the statement of Shri Mohinder Kumar Gupta in the assessment order, wherein the Director of the Company has elaborated the transaction which was also confirmed by Mr. Kailash Chandra Agarwal. The assessee Company through its [&...

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Inclusion of Notional interest on interest-free security deposit in computation of annual value u/s 23(1)(b)

DCIT Vs Moni Kumar Subba (ITAT Delhi)

DCIT Vs Moni Kumar Subba (ITAT Delhi) In the present case, the AO added notional interest on the interest free security for arriving at annual letting value. Since that was not permissible, the effect would be that such assessment was rightly set aside by the CIT (A) and the Tribunal. Therefore, the orders would not […]...

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GST: Classification of automotive chains used in petrol & diesel engines

In re Borgwarner Morse Systems India Private Limited. (GST AAR Tamil Nadu)

In re Borgwarner Morse Systems India Private Limited. (GST AAR Tamil Nadu) Whether automotive chains (i.e., silent chains used in petrol engines and roller chains used in diesel engines) manufactured by the applicant are classifiable under HSN 8409 or 7315? “Roller chains” supplied by the applicant are classifiable under CTH 7...

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TDS certificates U/s. Section 197 r.w. Rule 28AA can be issued only by concerned official

TLG India Private Limited Vs JCIT (Bombay High Court)

TLG India Private Limited Vs JCIT (Bombay High Court) It is stated that the impugned communications / certificates, copies of which are annexed to the Writ Petition as Annexures-T and U are withdrawn. The concerned official will now issue fresh certificates in accordance with law. While we allow withdrawal of these certificates and impugn...

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Posted Under: Income Tax |

Urban Improvement Trust is not a local authority & not eligible for exemption U/s. 10(20): SC

ITO Vs Urban Improvement Trust (Supreme Court of India)

ITO Vs Urban Improvement Trust (Supreme Court of India) “The High Court based its decision on the fact that functions carried out by the assessee are statutory functions and it is carrying on the functions for the benefit of the State Government for urban development. The said reasoning cannot lead to the conclusion that it is [&hellip...

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Treatment of interest income for deduction u/s 10B of Income Tax Act, 1961

Universal Precision Screws Vs JCIT (ITAT Delhi)

Assessee is entitled to deduction u/s 10B of the Act in respect of the interest income earned on FDRs made for the purposes of keeping margin money or for availing any other credit facility from banks....

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2 Years time limit u/s. 153B applies only to original order and to orders passed after remand

Surendra Kumar Jain Vs Principal CIT (Delhi High Court)

Surendra Kumar Jain Vs PCIT (Delhi High Court) The general provision of two years, in the opinion of the Court, has been provided with one important objective i.e. to cater to a specific situation where upon search and seizure operation, if new material is found, already completed assessments are revisited. Had Parliament not prescribed ...

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Bring Some Order & Discipline in Granting Refunds: Bombay HC directs CBDT

Sicom Ltd Vs DCIT (Bombay High Court)

Needless to clarify that in the absence of a clear policy, the Courts may then impose interest on the quantum of refund generated either by virtue of Court orders or by virtue of substantive proceedings arising out of refund applications. Either-way, it is the Revenue who would have to pay interest on the delayed refund and as such rates ...

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Information given by DIT (Inv) can only be a reason to suspect not reason to believe

Devansh Exports Vs ACIT (ITAT Kolkata)

Vague information given by DIT (inv) there is no other material the AO collected after preliminary enquiry which could have enabled him at the time of recording reasons to come to a conscious independent conclusion that income of the assessee has escaped assessment. ...

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Recipient of services cannot file Application for GST Advance Ruling

In re Naga Limited (GST AAR Tamil Nadu)

In the case at hand, the applicant is the recipient of the services and not supplier of such service. Accordingly, the Application is not liable for admission and therefore rejected without going into the merits of the case....

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Have you not availed any ITC of F.Y. 2017-18? What to do?

Trade & Industry was in the panic situation and confusion on various interpretation of law of availing the ITC on or before due date of filing GST Return for the month of Sept 2018. Majority of the consultants have advised their clients to avail the credit before filing the Sept Return, so as to avoid […]...

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Posted Under: Income Tax |

MCA extends due date of Filing Annual ROC Returns to 31.12.2018

General Circular No. 10/2018 (29/10/2018)

MCA decided to relax the additional fees payable by companies on e-forms AOC-4, AOC (CFS) A0C-4 XBRL and e- Form MGT-7 upto 31.12.2018, wherever additional fee is applicable....

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Appointment of GST Auditor – 10 FAQs

1. Can a company secretary can be appointed as a GST Auditor? 2. Can a member who has not obtained certificate of practice, can conducts GST Audit? 3. Can a member who is in part time practice can perform GST Audit? 4. Can registered person to appoint two or more chartered accountants as joint auditors? ...

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Posted Under: Income Tax |

All about Company Secretary (CS)

Company Secretary is a professional course conducted by Institute of Company Secretaries of India after passing course one can became professional deals in Corporate law. One can opt either to do job or its own practice or move abroad. A company secretary is a senior position in all listed Company and all other company having paid up [&...

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Posted Under: Income Tax |

Request to extend last date of Annual Return Form 10A-VAT- Rajasthan

As Members are occupied in Tax Audit Report under the Income Tax Act, 1961 (due date is 31.10.2018) and also in GST Reconciliation and Rectification work, we hereby request your good self to kindly extend the due date of filing Annual Return under VAT in Form 10A (Period ending 30-June-2017) for the dealers who moved to GST Regime from 31...

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Posted Under: Income Tax |

Vacancy for Chartered Accountants in Indirect Tax (GST)

Mumbai Based well known Firm of Chartered Accountants needs CAs to work in field of recently enacted GST Act, 2017 and in the field of Audit (Statutory, Internal, Tax) with post qualification experience from 0 to 10 Years....

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Posted Under: Income Tax |

Dispose non-time-barring assessments in significant numbers: CBDT

F.No. 380/02/2018-IT (B) (29/10/2018)

Efforts should also be made to dispose of non-time-barring assessments in significant numbers after the time-barring assessments have been completed so that cash collection from the current demand can be made during the current financial year itself....

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Section 44AD (Presumptive Taxation (AY 2018-19)

1. Applicability of Section 44AD  Any business which has a turnover of less than Rs. 2 crores can opt for presumptive taxation under this section. Following class of businesses are out of scope of Section 44AD. – Life Insurance Agents – Commission of any kind – Running the business of Plying, Hiring or leasing Goods […]...

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Posted Under: Income Tax |

Understand Your Form 16

Form 16 becomes quite a topic of discussion in all office campuses during the tax filing season. Though we know that Form 16 is for tax filing, many of us still find it hard to understand the components of Form 16 while filing the return. Understanding Form 16 is the key to better tax planning....

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Posted Under: Income Tax |

Sunset Review investigation on imports of PVC Suspension Grade Resin

Case No. SSR 17/2018 (29/11/2018)

The product under consideration in the previous investigations as well as present investigation is homo-polymer of vinyl chloride monomer (suspension grade), where various polymer chains are not linked to each other, falling under Customs Classification No. 3904. ...

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GST Council: Journey so far- 918 decisions, 294 Notifications, 30 meetings

GST Council met 30 times, took 918 decisions since its Constitution; 96% of decisions already been implemented through 294 Notifications Till date, the Goods and Services Tax ( GST) Council  has taken 918 decisions related to GST laws, rules, rates, compensation and taxation threshold etc. More than 96% of the decisions have already been...

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Posted Under: Income Tax |

Rules 2C, 2CA & 11AA and Form Nos 10G, 56 & 56G -draft notification

F No 370142/14/2018-TPL (29/10/2018)

Amendment of Rules 2C, 2CA and 11AA and Form Nos 10G, 56 and 56G of the Income-tax Rules, 1962-draft notification for inputs from the stakeholders and the general public...

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Creation of GST Helpdesks for MSME sector to support MSMEs

F.No. 349/94/2017-GST(Pt) (29/10/2018)

Government of India is launching a program on 02nd November, 2018 at Vigyan Bhawan to support MSMEs and to reach out to them wherein Department of Financial Services will be the nodal agency to monitor overall progress. ...

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Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme in India

The PMRPY scheme is targeted for workers earning wages upto Rs. 15,000/- per month. Publicity and awareness campaign is an integral component of the PMRPY scheme for encouraging employers including Micro, Small and Medium Enterprises (MSMEs) to avail benefits....

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Posted Under: Income Tax |

TDS on Sale of Property in India – Simplified

In case of Sale of Property by Residents IN case of sale of immovable property by the residents in India buyer is required to deduct tax @ 1% u/s 194 IA of Income Tax Act, 1961 on sale consideration if value of property exceeds Rs. 50 Lacs. TDS shall also be deducted in case of […]...

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Posted Under: Income Tax |

Master Guide on GST Annual Return and Audit

Master Guide on GST Annual Return and Audit, covering: How to Go Head with Annual Return and GST Audit, Analysis of GSTR 9 Form and How to fill the same, Analysis of GSTR 9C Form and How to fill the same...

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Posted Under: Income Tax |

Diwali Clean Up of P.Y Sales Invoices in GST before 31st October !

September month’s GSTR-1 would be the last chance to amend the invoices relating to period July 2017 to March 2018. After filing this return taxpayers would not be able to amend any details of invoices like date, invoice number, GSTIN, rate of tax, invoice value, taxable value etc....

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Posted Under: Income Tax | ,

India’s Ambitious Ayushman Bharat Health Insurance

In the 2018 Union budget, Finance Minister Arun Jaitley announced an ambitious plan to provide free health insurance to 11 crore poor families. This scheme is also being termed as the world’s biggest public-funded health insurance plan. The announcement raised a few questions with respect to its implementation. In the current budget Ind...

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Posted Under: Income Tax |

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