"10 June 2020" Archive

GST Council’s 40th Meeting – Expectations of Trade & Industry

The next GST Council meeting is scheduled to be held on 12.06.2020 through video conferencing mode. This is the first meeting post COVID-19 lockdown in the Country. Though Govt. has tried to give various reliefs in the month of April & May’2020 through Ordinance, Notifications & Circulars but the same seems to be meager in [&hel...

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GST on Director’s remuneration – CBIC clarifies

Circular No: 140/10/2020 - GST (10/06/2020)

CBIC clarifies on  Leviability of GST on remuneration paid by companies to the independent directors or  those directors who are not the employee of the said company  and Leviability of GST on remuneration paid by companies to the directors, who are also an  employee of the said company Vide Circular No: 140/10/2020 – GST Dated ...

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GST Refund of accumulated ITC for invoices not reflected in GSTR-2A

Circular No. 139/09/2020-GST (10/06/2020)

CBIC clarifies that Circular No. 135/05/2020­GST dated 31st March, 2020 does not in any way impact the refund of ITC availed on the invoices / documents relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) etc.. It is hereby clarified that the treatment of refund of such ITC relating to [&hel...

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Transportation of Goods under GST regime

In this Article, am trying to collate all the provisions related to ‘Transportation of Good’ under CGST Act, 2017. Notification No. 12/2017-Central Tax Rate, dated 28.06.2017, has exempted various services from CGST by providing entries and accordingly, Entry No. 6 provides exemption to: 6. Services provided by Central Governm...

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Rectification Under Section 154 of Income Tax Act,1961

Hello readers, we all understand rectification just as correction in any order passed by Income tax authority concerned so let's review every clause of section 154 in detail with relevant judgement and my significant findings to it....

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TDS on payment to contractors Under Section 194C

As per Section 194C, deduction of TDS is required to be made from payments of any amount to resident contractors or sub-contractors. 1. DEDUCTION OF TDS FROM PAYMENT TO RESIDENT CONTRACTORS :- Sec 194C(1) provides that any person responsible for paying any sum to resident contractor for carrying out any work (including supply of labor) in...

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Question of Deductibility of an Expenditure U/s. 57(iii) of Income Tax Act, 1961

The provisions of the Income-tax Act relating to allowances disclose that the expenditure or outgoing sought to be deducted should bear a character which has a connection with or relation to the particular activity which produces the income or constitutes its source....

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Distinction between Capital & Revenue Receipt

In CIT vs. Bharti Hexacom Ltd. [2014] 221 TAXMAN 323, the Delhi High Court has observed (at page 341), that if the money paid related to structure of assessee’s profit making apparatus and affected the conduct of business, the sum received for cancellation or variation of agreement, would be a capital receipt....

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Claim your Income Tax Refund for six years

You are required to file your income tax return in case your gross total income exceeds the amount of the basic exemption limit. You can file your return of income for claiming refund of taxes even if your income does not exceed the exemption limit due to TDS or payment of advance taxes . ...

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Section 80D Deduction & Tips for buying Health Insurance Plan

Deduction Under Section 80D In Relation To Health Insurance Premium/Medical Expenditure & A Few Important Points To Be Kept In Mind Before Investing In A Health Insurance Policy! Medical or Health Insurance is gaining popularity in India these days. After the spread of COVID-19 pandemic, having a health insurance policy has become...

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Section 10 | CGST Act 2017 | Composition Levy under GST

Section 10 of CGST ACT 2017– We will discuss today provisions of Section 10  in simplified manner- Section 10- This Section provides for a registered person to opt for payment of taxes under a scheme of composition, the conditions attached thereto and the persons who are entitled, but not mandated, to make payment of tax […]...

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SC shows concern for poor plight of migrant labour- orders facilitation of stranded labour

Modi Government announced early  Lockdown to save the country from Covid- 19. The whole world applauded his timely action. The limited number of infected people & low mortality in our country as compared to the Western world speaks volumes of the timely imposition of lockdown and remedial measures undertaken by our government. But in...

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Buying or Selling Property below the Stamp Duty Value

In India buying or selling of properties (Land & Building) at a value lower than the stamp duty value is very much prevalent to save the Stamp Duty on registration, which causes loss of revenue to the Government. Loss is not of just Stamp Duty revenue but also of Income Tax revenue that is to be paid by assessee on Income under head Capit...

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Is Indian Economy Sinking ? It’s Impact on Common Man & Financial Tips

As per the World bank Forewarn the global economy is going to shrink by 5.2%  this year resulting into a global economic crisis deepest recession catastrophe ever in decades. We cannot deny the fact that Indian economy is under devastating & catastrophic change and is witnessed sinking due reasons below – 1. Contraction in mark...

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Guidelines on Public Disclosures by Health Insurers

Ref. No: IRDAI/HLT/MISC/CIR/146/06/2020 (10/06/2020)

IRDAI releases Guidelines on Public Disclosures by Insurers on the qualitative and quantitative parameters of the health services rendered to policyholders...

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Decoding SEBI Relaxations in FPO’S Norms Due to Covid 19

Relaxations from certain provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 in respect of Further Public Offer (FPO’s) Overview  Securities and Exchange Board of India (SEBI) in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, vide notific...

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Matters requiring Special Resolution Under Companies Act, 2013

Matters requiring Special Resolution Under Companies Act, 2013 What is a special resolution? As per section 114(2), a resolution is considered as a special resolution when three conditions are satisfied. The three conditions are : (a) the intention to propose the resolution as a special resolution has been duly specified in the notice cal...

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Advanced ICITSS/ IT Test in Home Based Mode by ICAI

Examination Department The Institute of Chartered Accountants of India IMPORTANT ANNOUNCEMENT No. 13-CA (EXAM)/Advanced ICITSS/2020 Dated: 10th June 2020 Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS) -Adv. Information Technology Test – Home Based Mode It has been decided to conduct Advanced ICITS...

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Anti-Dumping duty on nylon tyre cord fabric extended till 11.12.2020

Notification No. 15/2020-Customs (ADD) (10/06/2020)

CBIC amends notification No. 30/2015-Customs (ADD) dated 12th June, 2015 to extend the levy of Anti-Dumping duty on nylon tyre cord fabric originating in or exported from China for a further period of 6 months vide Notification No. 15/2020-Customs (ADD) dated 10th June, 2020. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)...

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Invoke NDPS Act in narcotics drug cases affected by Custom formations

Instruction No. 10/2020-Customs (10/06/2020)

I am directed to state that the Hon'ble Home Minister has directed that in all cross-border narcotics drug cases affected by the Custom formations, NDPS Act, 1985 should also be invoked under which Custom officers are duly empowered to provide effective deterrence to cross-border smuggling of drugs....

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Govt revises export policy of Diagnostic kits/laboratory reagents

Notification No. 09/2015-2020-DGFT (10/06/2020)

The Notification No. 59 dated 04.04.2020 is amended to the extent that only diagnostic kits/reagents as described in para 1(A) and all diagnostic instruments/apparatus/reagents as described in para 1(B) falling under any HS code, including HS codes specified above, are ‘restricted’ for exports whether as an individual item or ...

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Economic effect of Private equity buyouts

Private equity transactions, which used to be more commonly referred to as venture capital transactions, cover a range of arrangements which have one common feature: the source of the money that finances the transaction. This source is typically a fund set up expressly for investing in unquoted securities (private equity) rather than publ...

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Types of Foreign Currency Account opened by Resident Individuals

In India, a Resident Individual can maintain 3 types of Foreign Currency (FC) Accounts for putting through the bona fide transactions.. -Exchange Earners Foreign Currency (EEFC) Account -Resident Foreign Currency (Domestic) [RFC(D)] Account -Resident Foreign Currency (RFC) Account Q 1. Define Foreign Currency Account (FC Account)? Ans: Th...

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Section 68: Sales declared as Income in books cannot be treated as cash credit

Bhagwant Merchants Private Limited Vs ITO (ITAT Kolkata)

ITAT states that the assessee has disclosed the sale of shares in its books of account. Once the sale is declared as income by the assessee, the question of treating the same amount as a cash credit u/s 68 of the Act results in double addition. Thus, the addition is also bad on merits. Hence, the appeal of the assessee is allowed....

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Section 7- IBC, 2016 & IBC Amendment Ordinance, 2019

Section 7- Insolvency and bankruptcy Code, 2016 and IBC Amendment Ordinance, 2019 Filing of Application under section 7 of IBC Insolvency and bankruptcy code was enacted on 28.05.2016, with the intent of consolidating & amending the law relating to reorganization and insolvency resolution in a time bound manner. Section 6 of the code ...

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Champions, Portal For MSME

The CHAMPIONS stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. It was launched by the Ministry of Micro, Small and Medium Enterprises on 1st June, 2020. The portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping a...

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Conundrum around IBC (Amendment) Ordinance, 2020

Eventually, the IBC (Amendment) Ordinance, 2020 (Ordinance) is out to surcease the anticipations and discussions around suspension of Sections 7, 9 and 10 of Insolvency Bankruptcy Code, 2016 (Code) Covid 19, pandemic has impacted the business, economy, and financial market worldwide. In India for combating the spread of disease, nationwid...

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Checklist for Company Incorporation Through Spice+

The checklist for incorporation of a Private Company are as follows: 1. For Name Approval The following documents are required for approval of name, only if required – Name should be unique and distinct from existing companies and trademark – NOC of Trademark Owner, if any – Board resolution from the Holding Company in case [&hellip...

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Penalty proceedings initiated after 4.5 years not sustainable

Amit Sabharwal Vs ITO (ITAT Delhi)

The issue under consideration is whether the penalty proceeding initiated after 4.5 years from date of original assessment order is justified in lawand also when order was silent about the levy of penalty under section 271B?...

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No Slump Sale if price based on individual assets & liabilities

CIT Vs Shiva Distilleries Limited (Madras High Court)

The issue under consideration is whether ITAT was right in law in holding Section 50B i.e slump sale was not applicable in present case of assessee?...

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Penalty can be levied on same ground on which proceedings was initiated

Sam India Builtwell (P) Ltd. Vs DCIT (ITAT Delhi)

ITAT states that, disclosure of manner in which undisclosed income was earned and substantiating the manner in which undisclosed income was earned are two different things. Hence, there is no clarity in the stand of the Revenue for initiation of penalty under Section 271AAA,...

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Availment of ineligible drawback & IGST: Search & seizure by DRI justified

Shri Vishnu Processors Vs Union of India and others (Punjab and Haryana High Court)

The issue under consideration is whether the Search and resultant seizure of documents and record by Director of Revenue Intelligence is justified under Customs Act, 1962?...

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Daughters of promoters are immediate relatives irrespective of marriage: SEBI

SEBI/HO/CFD/CMD1/OW/2020 (10/06/2020)

By virtue of the definition of ‘promoter group’ under the ICDR, the daughters of the promoters are immediate relatives and are a part of the promoter group irrespective of the fact that they are married and living a separate life or that they do not have any involvement in the management of the Company. Moreover, […]...

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No section 271C Penalty if TDS duly deducted & remitted at year end

ITO (TDS) Vs Om Sai Ram Enterprises Ravulapalem (ITAT Visakhapatnam)

Where assessee duly deducted tax at source under section 194C at the end of the year and remitted the same to Government account, the penalty imposed under section 271C for assessee’s failure to deduct tax at source and remittance to Government account, would not be sustainable....

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Section 154 Application can’t be rejected when mistake is apparent from record

Apex Tubes Pvt. Ltd. Vs ITO (ITAT Delhi)

Merely because assessee has inserted some figures, which are not in coherence with the other figures in the income tax return, there is a mistake apparent from the record, which needs to be rectified. Thus, the lower authorities are not justified in rejecting the application under section 154 of the act of the assessee. Hence, ITAT allow ...

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IPA received as Subsidy is Capital in nature & hence Not Taxable

DCIT Vs SovaIspat Limited (ITAT Kolkata)

The issue under consideration is whether industrial Promotion Assistance (IPA) received by the assessee-Company from the West Bengal Government is taxable under income tax?...

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Date of possession as date of purchase of flat for Section 54F exemption allowed

Rajiv Madhok Vs ACIT (ITAT Delhi)

The contention of the assessee is that since final consideration was paid and the possession of flat was received within a period of one year prior to the date of transfer of capital asset, the same should be considered as the date of purchase. Whereas, the stand of Department is that the date of execution of agreement for purchase of fla...

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Refund can’t be rejected merely because registration number not mentioned in invoice

Adani Enterprises Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) ST No. 22 of 2010

The issue under consideration is whether it is correct to reject the refund on the basis that the registration number of appellant not mention in invoice?...

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Procedure for Transfer of Shares by Foreign Investor to Foreign Company

Procedure to be followed for Transfer of Shares by Foreign Investor to any other Foreign Company Example A Ltd (Company Incorporated in India) B Ltd (A foreign Company holds 100% of A Ltd) C Ltd (A foreign Company holds 100% of B Ltd i.e the ultimate holding Company of A ltd. B Ltd has decided […]...

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How To Obtain DIN & What All Required To Obtain DIN

DIN APPLICATION: Any person who intends to be a Director of a Company or Designated Partner of a LLP is required to have a valid Director Identification Number (DIN) or Designated Partner Identification Number (DPIN). Such person intending to apply for DIN will be required to make an application in e-Form DIR-3. DOCUMENTS REQUIRED TO [&he...

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The Law Related to Extradition –Vijay Mallya’s Case!

Recently, the news of the Hong Kong Extradition law protests and the extradition of the defaulter Liquid baron and Kingfisher Airlines Vijay Mallya have been making headlines in news. Vijay Mallya is a noted defaulter in India who dodged in loans worth 9000 crores which he had no intention of repaying the amount and took shelter in ...

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New Era in NBFC by implantation of XBRL Returns for NBFC’s and other important updates in NBFC Guidelines

Master Direction – Non-Banking Financial Company –Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 amended up to 17.02.2020. Till now NBFC’s with an assets size up to 100 crore and NBFC with an assets size between 100 crore to 500 crore to file annual return in NBS 8 and in NBS 9 respectively...

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Evasion of GST in respect of Hand Sanitizers (Alcohol Based)

F. No.562/INT/DOGI/HQ/2018/17025 to 17045 (10/06/2020)

Sugar Mills and distilleries are also engaged in manufacturing/supplying alcohol-based hand sanitizers and are classifying the same under tariff heading 3004 (12% GST) of HSN whereas the same arc correctly classifiable under heading 3808 (18% GST) of HSN....

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Analysis of GST Notifications issued on 09th June 2020

Central Government has issued 3 Notification on 9th June 2020. Details, explanations and impact of all these Notifications been summarised precisely herein...

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Things to be kept in mind while transporting goods post June 01, 2020

Government has announced that E-way bill which has been generated on or before the 24th day of March, 2020 and its period of validity expires during the period 20th day of March, 2020 to the 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till […]...

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No addition for duly reconciled stock discrepancy which was noticed during survey

Shri Babulal Vani Vs ACIT (ITAT Indore)

Shri Babulal Vani Vs ACIT (ITAT Indore) The issue under consideration is if the assessee is in a position to reconcile the discrepancy raised under survey with positive material,then, the A.O. should give relief to the assessee or not? In the present case, the assessee is an individual engaged in the business of grain, cotton, […]...

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Hospitalization & Death of Director’s Parent genuine reason for non-attendance

Vasan Technology Pvt. Ltd. Vs ITO (ITAT Kolkata)

If the Assessing Officer passed the order without giving opportunity of being heard to the assessee, then in such situation appellate authority should set aside the impugned order and remand the matter back to the file of AO for fresh adjudication....

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Section 10(34) Exemption w/o disallowing expenses u/s 14A for Insurance Co.

Max Life Insurance Company Ltd. Vs DCIT (ITAT Delhi)

Max Life Insurance Company Ltd. Vs DCIT (ITAT Delhi) The issue under consideration is whether assessee is liable for exemption u/s 10(34) of the Act without disallowing any expenditure under section 14A? ITAT noted that this issue is duly covered by decision of Mumbai Bench of this Tribunal in case of ICICI Prudential Insurance Co. [&hell...

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Airline not liable for delay in receiving transshipment application at Air Cargo due to arrest of Officers

Qatar Airways Vs Commissioner of Customs (Air) (Madras High Court)

Since there was total or near total disruption of work due to alleged arrest of the customs officers and therefore, the delay in receiving and processing of transshipment application should not be at the cost of the Qatar Airways and assessee was not liable for demurrages and transshipment charges by Air Port Authority of India...

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Appeal can be filed before High Court against an order of acquittal passed by a Magistrate on complaint

K. Rajalingam Vs R. Suganthalakshmi (Madras High Court)

As against an order of acquittal passed by a Magistrate on a complaint, an appeal will lie only before the High Court, under Section 378 (4) of Cr.PC. In such cases, the complainant has to seek for Special leave under Section 378 (5) of Cr.PC.Since the decision rendered in S. Ganapathy V. N. Senthilvel ((2016) 4 CTC 119) was per- incuriam...

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Section 80HHC Exchange Rate Fluctuations is Export Turnover 

J.P. Khaitan Vs Mr. Debasish Chowdhury (Calcutta High Court)

The issue under consideration is whether extra realization made in rupees for export sale proceeds in foreign exchange due to adverse exchange rate of rupee would be part of the export turnover in the year of receipt and qualify it for deduction u/s Section 80-HHC ?...

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No Disallowance U/s. 40(a)(ia) if retainer-ship expense shown by recipient in their return

Demarte Silk and Sarees Vs ITO (ITAT Chandigarh)

The issue under consideration is whether A.O. is correct in disallowing the expense of retainership debited in P & L on the basis of non deduction of TDS u/s 194C when the Same was shown as salary by recipient in their Income Tax return?...

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Bail Granted for offense of Wrongful Availment of ITC under GST

Mohit Vijay Vs Union Of India (Rajasthan High Court)

Mohit Vijay Vs Union Of India (Rajasthan High Court) In the present case, petitioner filed bail application u/s 439 CrPC for the offense of wrongful availment of Input Tax Credit under Section 132(1)(b)(c)(f)(j) and (I) of the Central Goods and Service Tax Act, 2017. High Court States that, the grant or denial is regulated, to […]...

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Deduction u/s 57 allowed if nexus exist between income earned & amount expended

Shri Kailash Chand Soni Vs ACIT (ITAT Jaipur)

Shri Kailash Chand Soni Vs ACIT (ITAT Jaipur) The issue under consideration is whether the addition on account of disallowance of interest expenses which are in accordance the provisions of section 57(iii) of the Income Tax Act, 1961 is justified in law? In the present case, the assessee has taken unsecured loans from various parties [&he...

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No adjudication proceedings solely based on inculpatory statements of witnesses & notice alone

Jet Unipex Vs Commissioner of Customs (Madras High Court)

Adjudication proceedings under the Customs Act, 1962 could not solely be based on the inculpatory statements of witnesses and noticee alone. Such statements could be only used for corroborating the case which the Department proposed to establish before the quasi-judicial authorities....

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Exporter liable to pay fine for violation of terms of DFCE Scheme

Kanak Exports Through Its Proprietor Mr. Satish Bansal Vs Union Of India (Delhi High Court)

The issue under consideration is whether the imposition of cost of one lakh rupees on an exporter for the blatant violation of the Duty-Free Credit Entitlement Scheme (DFCE) is justified in law?...

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ITAT remits back case of Actor Dulquer Salmann to AO

ACIT Vs. Shri Dulquer Salmann (ITAT Chennai)

ITAT Remit Back the case of Actor Dulquer Salmann (Assessee)  back to Assessing Officer (AO) as Information reconciling  source for investments which were added as undisclosed income were placed before it but not placed before AO....

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December 2020