"02 November 2019" Archive

Addition U/s. 2(22)(e) not sustainable if transaction is not of loan or advance

Shravan Choudhary Vs ACIT (ITAT Jaipur)

Shravan Choudhary Vs ACIT (ITAT Jaipur) If the transaction is a business transaction between the parties then the amount received under the said transaction cannot be held as loan or advance to be treated as deemed dividend under section 2(22)(e) of the Act. The assessee explained the facts regarding the loan given by the assessee [&helli...

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Interest on FDR for security/guarantee to companies for taking contracts is Business Income

Shri Devasamparambil Hassainar Kutty Vs ACIT (ITAT Jaipur)

Shri Devasamparambil Hassainar Kutty Vs ACIT (ITAT Jaipur) Revenue has not disputed the fact that the FDRs taken by the assessee are for the purpose of furnishing the security/guarantee to the companies those have awarded the contract to the assessee. Therefore, these FDRs were furnished as a performance guarantee by the assessee. Once th...

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Reopening of assessment for non-existent and factually incorrect reasons was invalid

Shri Ram Mohan Rawat Vs ITO (ITAT Jaipur)

Shri Ram Mohan Rawat Vs ITO (ITAT Jaipur) Reasons recorded by the AO for formation of belief that income assessable to tax has escaped assessment are based on two counts. One, the assessee has made bogus purchases and the second, that the purchases are not verifiable as the as the  assessee has not filed the […]...

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Transaction of loan between two independent parties cannot be taxed in the hands of Broker to transaction

Shiv Prakash Bajaj Vs DCIT (ITAT Jaipur)

Shiv Prakash Bajaj Vs DCIT (ITAT Jaipur) It is not in dispute that the assessee surrendered a sum of Rs. 30.00 lass on account of incriminating material found during the search, therefore, the transaction of loan between two independent parties even if through the service of the assessee being broker cannot be thrust upon the […]...

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Section 54 exemption cannot be denied for mere completion of construction in short period 

Smt. Parminder Kaur Bedi Vs ITO (ITAT Jaipur) (ITAT Jaipur)

Accordingly when there was sufficient time with the assessee to complete the construction then the claim of the assessee that the house was constructed within a short period cannot be a reason for denial of the claim under section 54 of the Act....

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Are Company Secretaries doing a ‘Job’ or Rendering ‘Service’….What’s the Truth…?

As the very name suggest that CS is one of the Key Personnel who manages the Company and is made responsible for the overall Compliance under the Companies Act and other applicable legislation. He has to report to the Board of Directors for timely guidance and strategic planning and perform such other duties as have been specified under v...

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Posted Under: Income Tax |

Disqualification of Directors for Non-Filing of Annual ROC Returns

Disqualification of Directors for Non-Filing of Annual Statements or Financial Statements for continuous period of 3 years MCA in September 2017, identified over 3 Lakh directors associated with the companies that had failed to file financial statements or annual returns in MCA 21 online for a continuous period of three financial years 20...

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Posted Under: Income Tax |

Rs 95,380 crore gross GST Revenue collected in October 2019

The gross GST revenue collected in the month of October, 2019 is ₹ 95,380 crore of which CGST is ₹ 17,582 crore, SGST is ₹ 23,674 crore, IGST is ₹ 46,517 crore (including ₹ 21,446 crore collected on imports) and Cess is ₹ 7,607 crore (including ₹ 774 crore collected on imports). The total number of GSTR 3B ...

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Posted Under: Income Tax |

GST payable on reimbursement of discount / rebate from principal company

In re M/s. Santhos Distributors (GST AAR Kerala)

In re M/s. Santhos Distributors (GST AAR Kerala) It is established from the statement of the applicant that the prices of the products supplied by the applicant is determined by the supplier /principal company and the applicant has no control on the price of the products. Therefore, it is evident that the additional discount given [&helli...

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GST on value of scrap held with job work unit

In re M/s.Industrial Engineering Corporation (GST AAR Kerala)

In this case, the. applicant is not collecting the scrap of raw materials from the job work place due to the fact that if the applicant has collected the same the applicant would suffer excess amount for transportation and labour charges for the scrap than the cost realizable from the scrap. However, the job work unit, would pay GST on an...

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