"08 November 2018" Archive

No let-up in sanction of GST Refunds

There are concerns being raised about growing pendency of GST Refunds. Exporters are reassured that there is no le-tup in the sanction of GST refunds. The disposal rate is consistently improving month-on-month. As on 31st October, 2018, total GST refunds to the tune of Rs 82,775 crore have been disposed by Central Board of Indirect [&hell...

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Cabinet approves Laying down mechanism for sale of enemy shares

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the mechanism and procedure for sale of the enemy shares. Details are as follows: i. ‘In principle’ approval has been accorded for sale of enemy shares under the Custody of Ministry of Home Affairs/ Custodian of Enemy Property of India (CEPI), as per sub-sect...

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Personal use of expense incurred cannot be attributed without Sufficient Proof

Galgotia Publication (P) Ltd. Vs ACIT (ITAT Delhi)

Galgotia Publication (P) Ltd. Vs ACIT (ITAT Delhi) The present assessee before us is a company and is an entity recognised by law, as a legal person, that exist in eyes of law independently with rights and liabilities. Thus no element of personal expenses by the Directors/Office bearers can be attributed, without, there being sufficient [...

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Adjusted Rental advance given for Business for Lock in period is allowable

Apollo Munich Health Insurance Company Ltd. Vs DCIT (ITAT Hyderabad)

Apollo Munich Health Insurance Company Ltd. Vs DCIT (ITAT Hyderabad) Rental advance, when it becomes unrecoverable, it becomes the business loss and not capital loss. But in the given case, it is not unrecoverable but it was adjusted towards agreed rent for lock in period as per agreement between the assessee and landlord. Therefore, in [...

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TDS on Commission paid to NRs for services rendered outside India not become deductible for mere withdrawal of circular

ACIT Vs. Nuova Shoes (ITAT Agra)

It is not disputed that that the withdrawal of the Circulars No. 23 and 786 has been made on 22-10-2009 vide CBDT Circular No. 7 of 2009 and mere withdrawal of the circular does not negate the principles of income deemed to accrue or arise in India or outside India. ...

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Addition for sundry creditors without rejecting purchase are not sustainable

M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi)

M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi) The AO is wrong in making the impugned addition on account of sundry creditor, which are related to purchases and the same also accepted by the AO as genuine. Without rejecting the purchases, the sundry creditors cannot be treated as income of assessee  Therefore, addition made by [&he...

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ITAT condones delay in appeal filing due to fighting with CA

Shri Nitesh Agarwal, Vs ACIT (ITAT Jaipur)

Shri Nitesh Agarwal Vs ACIT (ITAT Jaipur) The assessee has explained the reasons for delay as attributable to the various problems on the business front, family front as well as the assessee was having some dispute with his C.A. In support of his explanation, the assessee has filed the record regarding the complaint against the […]...

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To avail benefit of ‘peak credit’ theory Assessee needs to explain all transactions

CIT Vs M/S. JRD Stock Brokers Pvt. Ltd (Delhi High Court)

CIT Vs M/S. JRD Stock Brokers Pvt. Ltd (Delhi High Court) The peak credit worked out by the Assessee was on the basis that the principle of peak credit would apply, notwithstanding the failure of the Assessee to explain each of the sources of the deposits and the corresponding destination of the payment without squaring […]...

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Thin Capitalization – Section 94B

India has time and again shown its commitment to BEPS initiative of the OECD and introduced several reforms in domestic tax legislation to plug loopholes, strengthen information sharing between the contracting states and prevent double non-taxation. In line with its commitment, vide Finance Act 2017; the government has introduced measures...

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GST Updates for the Month of October 2018

CIRCULARS 1. Notifications Issued under CGST Act, 2017 Regarding Refund to UIN Entities are Applicable To GST (Compensation To States) Act, 2017 Section 55 of CGST Act, 2017 prescribes for refund of taxes paid by specified International Organizations, Foreign Diplomatic Missions or Consular Posts etc on notified supply of goods or service...

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