"14 March 2019" Archive

Payment For Removal of Encumbrances Deductible U/s 48(1)

Shri Dinar Umeshkumar More Vs ITO (ITAT Pune)

Payment for removal of encumbrances is deductible u/s 48 (1) as expenses incurred wholly and exclusively in connection with transfer. Accordingly, value of flat allotted to Shri Uday should be accordingly reduced from the full value of consideration u/s 48....

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ALP Adjustment of International Transaction Restricted to AEs

Terex India (P) Ltd. Vs DCIT (ITAT Pune)

Adjustment on account of arm’s length price (ALP) of international transaction is restricted only to the extent of international transaction with associated enterprises (AE). ...

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Commentary on Section 168 of Companies Act, 2013

SECTION 168 OF THE COMPANIES ACT, 2013 Section 168- Resignation of Director (1) A director may resign from his office by giving a notice in writing to the company and the Board shall on receipt of such notice take note of the same and the company shall intimate the Registrar in such manner, within such […]...

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Posted Under: Income Tax |

Private Placement – of Shares or Unaccounted Money ???

Recent Judgement of Hon’ble Supreme Court in case of NRA Iron and Steel Pvt Ltd.- After this judgement, the authorities would get right to question the integrity of every issue or reissue of share capital, especially those by company in which public are not substantially interested because these companies generally issue shares on priva...

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Posted Under: Income Tax |

Analysis of applicability of section 44AD, 44AB for (F&O) transactions

Applicability of 44AD and 44AB in case of Derivative (F&O) transactions: Para 5.14 of Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 provides for method of calculating the turnover or gross receipts to ascertain whether tax audit will be applicable or not. The same is reproduced as under: Derivatives, future...

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Posted Under: Income Tax |

How are Mutual Funds taxed ?

A mutual fund distributes the returns to the investors in the form of periodic dividends and appreciation in the value of the units. The tax liability will depend upon the type of mutual fund scheme, the type of investor and the period of holding. Rules – 1. If a mutual fund scheme invests more than […]...

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Posted Under: Income Tax |

Bank Audit Check List & Procedure (Concurrent Audit)

Concurrent audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. It is part of a bank’s early warning system to ensure timely detection of irregularities and lapses. It helps in preventing fraudulent transactions at branches. here the check list and procedure, I ho...

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Posted Under: Income Tax |

Bogus share capital: Reassessment on mere investigation wing report is invalid

M/s Balaji Health Care Pvt. Ltd. Vs The ITO (ITAT Jaipur)

M/s Balaji Health Care Pvt. Ltd. Vs ITO (ITAT Jaipur) Conclusion: Reopening of assessment by AO on basis of report of Investigation Wing that assessee was beneficiary  of accommodation entries in the form of share capital/premium/loan during the financial year was not justified as AO had not carried out any further examination and analys...

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File Revised Income Tax Return- Easy Guide

The facility to upload Revised Return for the returns filed manually (Paper Filed Returns) is now enabled in e-Filing. Taxpayer are required to suffix ‘0’ (Zeros) in case the acknowledgment number of the original paper filed return is less than 15 digits. Example – Paper Filed Return Acknowledgement Number is – ...

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Input credit based on fake invoices- HC dismisses Writ Petition & Imposes Rs. One Lakh Cost

Bharat Raj Punj Vs Commissioner of Central Goods And Service Tax (Rajasthan High Court)

etitioners have claimed tax input credit on the basis of fake invoices hence Writ Petition is dismissed with cost of Rs.1,00,000/- only.29. The cost amount be deposited with the Rajasthan High Court Legal Services Authority within four weeks of the date of this order and proof thereof, be submitted with the Registrar (Judicial). If the pr...

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PPT on Active Company Tagging Identities and Verification

Ministry of Corporate Affairs > In the year 2018, the Ministry of Corporate Affairs had taken a major step by coming out with Form DIR-3 KYC, a KYC initiative for directors, in order to ascertain identities as a part of their efforts to uncover the shell companies existing to facilitate the illicit flow of funds. […]...

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Posted Under: Income Tax |

Assessee Company failed to prove genuineness of investor section 68 gets attracted: SC

Assessee company failed to prove genuineness of investor – provisions of section 68 of the Income-tax Act attracted – Supreme Court The Apex court in the case of NRA Iron and Steel Pvt Ltd (SLP 29855 of 2018) held that the assessee company is under a legal obligation to prove the source of receipt of […]...

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Posted Under: Income Tax |

Similar Treatment to Be Given in Subsequent AY in Case of Existence of Identical Facts in Previous Settled AY

M/s. Chhattisgarh Mineral Development Corporation Limited Vs ACIT (ITAT Raipur)

Assessee is a corporation of the Chhattisgarh Government and has received subsidies for opening a mine. Assessee treated the said subsidy as ‘capital receipt’, however, department contended it to be ‘revenue receipt’....

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TDS Credit cannot be denied even if TDS not deposited by deductor

High Court of Gujarat in case of Devarsh Pravinbhai Patel v/s Asst Commissioner Of Income Tax vide order dated 24th September 2018 has held that TDS credit needs to be given by Income-tax authorities to the deductee even if TDS is not deposited by the deductor. Where employer deducted tax at source on salary payments […]...

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Posted Under: Income Tax |

GST on Main Propulsion engine for ships, Marine Gear box, Marine generator

In re C S Diesel Engineering Private Limited (GST AAR Maharashtra)

In re C S Diesel Engineering Private Limited (GST AAR Maharashtra) Question :- 1) Please confirm that Main Propulsion engine for ships falling under HSN code 8408 1093, Marine Gear box falling under heading 8483 and marine generator falling under 8502 1100 and Marine engine for other applications like pumps falling under sub-heading 8408 ...

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Insolvency and Bankruptcy (Application to Adjudicating Authority) Amendment Rules, 2019

Notification No. G.S.R. 222(E). (14/03/2019)

1. (1) These rules may be called the Insolvency and Bankruptcy (Application to Adjudicating Authority) Amendment Rules, 2019.(2) These rules shall come into force from the date of their publication in the Official Gazette....

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CBDT exempts income of Prayagraj Mela Pradhikaran u/s 10(46)

Notification No. 22/2019-Income Tax [S.O. 1372(E).] (14/03/2019)

Central Government hereby notifies for the purposes of the said clause, ‘Prayagraj Mela Pradhikaran, Prayagraj’, an authority constituted by the State Government of Uttar Pradesh, in respect of the following specified income arising to that authority, namely:—...

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Conditions rendering Advance Authorisation Scheme Nugatory are Unsustainable

Messrs Maxim Tube Company Pvt Ltd. Vs Union of India (Gujarat High Court)

Messrs Maxim Tube Company Pvt Ltd. Vs Union of India (Gujarat High Court) CONCLUSION – Condition that renders the very scheme of advance authorization nugatory, does not have any nexus to the objective of the advance authorization i.e. to boost export, is unsustainable in law. FACTS – Para 4.14 of the FTP was amended vide […]...

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Notification No. 13/2019-Customs (ADD) Dated: 14th March, 2019

Notification No. 13/2019-Customs (ADD) [G.S.R. 219(E)] (14/03/2019)

Seeks to prescribe provisional assessment for ‘Saturated Fatty Alcohols’ when originating in or exported from subject countries by M/s PT. Energi Sejahtera Mas (producer) Indonesia through M/s Sinarmas Cespa Pte Ltd (exporter/trader) Singapore and imported into India. MINISTRY OF FINANCE (Department of Revenue) Notification No...

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Notification No. 12/2019-Customs (N.T./CAA/DRI), Dated: 12.03.2019

Notification No. 12/2019-Customs (N.T./CAA/DRI) (12/03/2019)

Notification No. 12/2019-Customs (N.T./CAA/DRI), Dated: 12.03.2019 to appoint  Common Adjudicating Authority mentioning Name of Noticee (s) and Address, Show Cause Notice Number and Date, Name of Adjudicating Authorities and Common Adjudicating Authority appointed....

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DPT-3 information of all borrowings to ROC

Now Every company (other than Banking company, NBFC and Housing finance company) to which these rules apply, shall on or before the 30th day of June, of every year, file with the Registrar, a return in Form DPT-3 and furnish the information contained therein as on the 31st day of March of that year duly audited by the auditor of the compa...

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Posted Under: Income Tax |

Notification No. 11/2019-Customs (N.T./CAA/DRI) Dated: 12.03.2019

Notification No. 11/2019-Customs (N.T./CAA/DRI) (12/03/2019)

Notification No. 11/2019-Customs (N.T./CAA/DRI), Dated: 12.03.2019 to appoint  Common Adjudicating Authority mentioning Name of Noticee (s) and Address, Show Cause Notice Number and Date, Name of Adjudicating Authorities and Common Adjudicating Authority appointed. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TA...

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Notification No. 10/2019-Customs (N.T./CAA/DRI), Dated: 12.03.2019

Notification No. 10/2019-Customs (N.T./CAA/DRI) (12/03/2019)

Notification No. 10/2019-Customs (N.T./CAA/DRI), Dated: 12.03.2019 to appoint  Common Adjudicating Authority mentioning Name of Noticee (s) and Address, Show Cause Notice Number and Date, Name of Adjudicating Authorities and Common Adjudicating Authority appointed. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TA...

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MSME FORM-I Pursuant to Order Dated 22nd January, 2019 Issued U/s. 405 of Companies Act, 2013

1) Introduction: Whereas, the Central Government vide notification S.O. 5622 (E), dated, 2nd November, 2018  has directed that all companies, who get supplies of goods or services from Micro & Small Enterprises & whose payments to Micro & Small Enterprise suppliers exceed 45 days from the date of acceptance or the date of de...

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Posted Under: Income Tax |

No profiteering if post discount rate remains same pre & post rate reduction

Kerala State Level Screening Committee on Anti-Profiteering Vs M/s. Somany Ceramics Ltd. (National Anti-Profiteering Authority)

Respondent had not increased the discounted per M2price of the above product which had remained Rs. 374.74/- before and after the tax reduction, as was evident from both the invoices issued by him before and after the tax reduction and therefore, the benefit of tax reduction has duly been passed on to the customers by the Respondent. Hen...

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No profiteering by Asian Paints, who passed tax reduction benefit to customers

Kerala State Screening Committee on Anti-profiteering Vs M/s Asian Paints Ltd. (National Anti-Profiteering Authority)

Kerala State Screening Committee on Anti-profiteering Vs M/s. Asian Paints Ltd. (National Anti-Profiteering Authority) From the invoices referred, it is evident that the Respondent had maintained the same base price post reduction in the rate of tax w.e.f. 15.11.2017, resulting in reduction in the cum-tax price from Rs. 175.40/- to Rs. 16...

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No GST reduction on Little Stars Dhoti so profiteering allegation not sustainable

State Level Screening Committee on Anti-Profiteering, Kerala Vs M/s Ramraj Handlooms (NAA)

State Level Screening Committee on Anti-Profiteering Vs M/s Ramraj Handlooms (NAA) In this case there was no reduction in the rate of tax on ‘Little Stars Dhoti’ w.e.f. 01-07-2017 and that the rate of tax in the Post-GST era has also been increased from CST @ 2% to IGST @ 5%. therefore, the allegation of […]...

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GST AAR application submitted without filing fees is liable for rejection

In re The Kreations Builders & Devlopers (GST AAR Maharashtra)

In re The Kreations Builders & Devlopers (GST AAR Maharashtra) It is mandatory as per section 97(1) read with Rule 104 of the CGST/MGST Act to pay applicable fee of Rs. 5000/- each under SGST and CGST Act to be deposited as per the provision of Section 49 of the Act. If not the application […]...

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Long duration post graduate programs offered by IIMB exempt from GST

In re Indian Institute of Management, Bengaluru (GST AAAR Karnataka)

In re Indian Institute of Management, Bengaluru (GST AAAR Karnataka) a) Pursuant to the enactment of the IIM Act, 2017, with effect from 31st January 2018, the long duration post graduate programs offered by IIMB will be exempt from GST under SI.No 66 of the Notification No 12/2017 CT(R) as amended. During the period 31st […]...

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Gratuity: Eligibility Criteria, Income Tax Exemption Limit & Calculation

‘Gratuity’ in simple term is a reward given by the employer to his employee at the time of his retirement / resignation / termination / death. Present article contains the answer to the basic gratuity related questions like what is the eligibility criteria of gratuity, what is the gratuity calculation formula and what is the […...

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GSTR-9 Annual return under Goods & Services Tax (GST)

GSTR – 9 is an Annual Return to be filed once in a year by the registered taxpayers under GST. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGST and IGST. In 31st meeting of GST Council  which was  held on 22.12. 2018 GST […]...

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Posted Under: Income Tax | ,

LTCG can’t be treated as bogus for mere astronomical rise in share price

Mukta Gupta Vs ITO (ITAT Delhi)

Mukta Gupta Vs ITO (ITAT Delhi) Conclusion: Long-term capital gains on sale of shares could not be treated as bogus on the reason that the price of these shares had risen manifolds and the reason for astronomical rise was not related to any fundamentals of market. Once the transactions were duly proved by trading from […]...

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Disallowance cannot be made for provision for gratuity for mere non-payment

Thiruvalla East Co-operative Bank Ltd. Vs ITO (ITAT Cochin)

Disallowance under section 43B could not be done  in respect of provision for gratuity made for the benefit of the employees for the reason that no actual payment was made....

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Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

No exemption has been provided in Ind AS 7 with regard to its applicability as provided in AS 3. So, companies which will be required to prepare financial statements as per Ind AS will be required to prepare statement of cash flows as per Ind AS 7. Cash and cash equivalents: Cash on hand, demand […]...

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Posted Under: Income Tax |

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