Blog

Sep 16, 2018

Clarification regarding the scope of principal-agent relationship under GST Act

The Central Board of Indirect Taxes and Customs Vide Circular No. 57/31/2018-GST has clarified the following: 1) If the invoice for further supply is issued by the agent in his name, then such services will be treated as the services provided by the agent on behalf of the principal and hence, the agent is required to obtain registration mandatorily as required by Section 24 of CGST Act. 2) However, if the agent issues an invoice in the name of the principal, such service shall not be treated as a service provided by the agent to the principal and hence, the agent shall obtain GST registration .....

Sep 16, 2018

Notification of due dates for filing GST returns

The Central Board of Indirect Taxes and Customs Vide Notification No 32/2018, 33/2018, 34/2018 – Central Tax dated 10/08/2018 has introduced a one-time scheme to waive off late fee payable for delayed furnishing of FORM GSTR-1 for the period from July, 2017 to September, 2018 &amp; extended the due dates as under: &nbsp; <table style="width: 282px; height: 88px;"> <tbody> <tr> <td style="width: 72px;">&nbsp; Form</td> <td style="width: 50px;">Period</td> <td style="width: 140px;">Due date for GSTR 1</td> </tr> <tr> <td style="width: 72px;">GSTR 1-Monthly</td> <td style="width: 50px;">July,.....

Sep 16, 2018

Master Circular for Commodity Derivative Market

Securities Exchange Board of India(SEBI) on 07-09-2018 has issued a Master Circular in relation to Commodity Derivatives Market. It is a compilation of various circulars issued earlier by the Commodity Derivatives Market Regulation Department(CDMRD). https://www.sebi.gov.in/legal/master-circulars/sep-2018/master-circular-for-commodity-derivatives-market_40276.html.....

Sep 16, 2018

Insertion of Rule 11UAB

Section 28(via) of the Income Tax Act, 1961 states “The fair market value of inventory as on the date on which it is converted into, or treated as, a capital asset determined in the prescribed manner shall be chargeable to tax under the head "Profits and gains of business or profession”. Central Board of Direct Taxes vide Notification No. SO 4213(E) dated 30-08-2018 inserted new Rule 11UAB which provides rules for the determination of fair market value of inventory: <table style="height: 88px;" width="412"> <tbody> <tr> <td style="width: 198px;">Inventory</td> <td style="width: 198px;">Fai.....

Sep 16, 2018

Relaxation of additional fees and extension of last date of filings of Form BEN-2

A beneficial owner shall file a declaration disclosing his beneficial interest in Form No. BEN-2 with the company, within thirty days after acquiring such beneficial interest in the shares of the company. The Ministry of Corporate affairs vide Circular No. 07/2018 dated 06/09/2018 stated the following :- Time limit for filing the BEN-2 form would be 30 days from the date of deployment of BEN-2 e-form on the MCA-21 portal and no additional fee shall be levied if the same is filed within 30 days from the date of deployment of the said e-form. http://www.mca.gov.in/Ministry/pdf/Gener alCircular.....

Sep 16, 2018

When department had correct address of assessee furnished in return of income, sending notice at incorrect address available with bank and then drawing presumption of service of notice on ground that notice was not received back unserved, cannot be sustained

The Honorable High Court of Allahabad in the above case has held that when new address has been furnished by the assessee in his return of income, notices cannot be sent at an old address available on records. https://www.taxmann.com/filecontent.aspx ?Page=CASELAWS&amp;id=101010000000183116 &amp;isxml=Y&amp;search=&amp;tophead=true&amp;tophead =true.....

Sep 16, 2018

Where assessee had availed deduction under section 80-IC for a period of 5 years at the rate of 100 per cent, he would be entitled to deduction on substantial expansion for remaining 5 assessment years at the rate of 25 per cent and not at rate of 100 per cent

Deduction under Section 80-IC is available to manufacturing units situated in the State of Sikkim, Himachal Pradesh and Uttaranchal and North-Eastern States. The exemption under section 80-IC is provided at the rate of 100% of such profits and gains for five assessment years commencing with the initial assessment years and, thereafter, 25% for next five years. The deduction is limited to a period of 10 years. In the above case, the assessee had claimed a deduction of 100% for the first five Asst. Years. Later, the assessee had again claimed 100% deduction for the 6th Asst. Year on the ground t.....

Sep 16, 2018

Where assessee had entered into agreement with UK based university for providing certain technical services for which it had agreed to bear Indian taxes, liability of assessee to deduct TDS under India-UK DTAA from payments made to UK University was to be computed on gross amount of fees paid to University

The Honorable High Court of Madras in the instant case has held that TDS on payments made to non-residents for technical services has to be deducted on the gross amount including the tax liability undertaken by the assessee. https://www.taxmann.com/filecontent.aspx?Page=CASELAWS&amp;id=101010000000183448&amp;isxml=Y&amp;search=&amp;tophead=true&amp;tophead=true.....

Sep 16, 2018

Where petitioner had failed to make full and true disclosure of undisclosed income with reference to foreign property and foreign bank accounts, of which petitioner was a beneficial owner i.e., Income Tax Settlement Commission had rightly rejected settlement application filed by petitioner as invalid

The Honorable High Court Of Delhi in the above case has held that in case the assessee has filed an application with ITSC for the settlement of cases relating to him, the ITSC has right to reject the application made in case the applicant doesn’t disclose the details of undisclosed income, bank accounts and the property in his name. https://www.taxmann.com/filecontent.aspx?Page=CASELAWS&amp;id=101010000000183441&amp;isxml=Y&amp;search=&amp;tophead=true&amp;tophead=true.....

Oct 16, 2018

TDS and TCS provisions under GST

<!-- wp:paragraph --> <p>The Central Board of Indirect Taxes and Customs Vide Notification No 50/2018 &amp; 51/2018 – Central Tax dated 13th September, 2018 has notified that the provisions of Section 51 &amp; 52 shall come into force from 1st October 2018.<br> Key provisions of Section 51:-<br>  Following people shall be required to deduct tax at source @2% ( CGST 1% + SGST 1%) on the payment made or credited to the supplier where the total value of supply under a contract exceed Rs.2,50,000/-excluding GST: -<br> (a) a department or establishment of the Central or State Government, or<br.....

Oct 16, 2018

Monthly report of FPI registration on SEBI’s website

<!-- wp:paragraph --> <p>The Securities Exchange Board of India(SEBI) Vide its Circular No SEBI/HO/FPIC/CIR/P/2018/135 dated 10th October 2018 has decided that – For the purpose of ensuring transparency in processing of applications for FPI(Foreign Portfolio Investors) registration, the average time taken by the DDP(Deisgnated Depository Participant) shall be disseminated on SEBI’s website on a monthly basis.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br> https://www.sebi.gov.in/legal/circulars/oct-2018/monthly-report-of-fpi-registration-on-sebi-s-website_40694.html</p> <!-- /wp.....

Oct 16, 2018

Participation of Eligible Foreign Entities (EFEs)in the commodity derivatives market

<!-- wp:paragraph --> <p>Currently, foreign entities are not permitted to directly participate in the Indian commodity derivatives market, even if they import/export various commodities from/to India. It has been decided to permit foreign entities having actual exposure to Indian commodity markets, to participate in the commodity derivative segment of recognized stock exchanges for hedging their exposure. Such foreign entities shall be known as “Eligible Foreign Entities” (EFEs).<br>Criteria for Eligible Foreign Entity:</p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>.....

Oct 16, 2018

Extension of due date of furnishing ITRs and Tax Audit Reports of AY 2018-19

<!-- wp:paragraph {"align":"left"} --> <p style="text-align:left">The Central Board of Direct Taxes vide its Order under Section 119 of the Act dated 24th September, 2018 has extended the due date for filing of<br> Income Tax Returns &amp; Tax Audit reports till 15th October 2018. However, liability to pay interest under Section 234A remains. Further, pursuant to the order of Bombay High Court in case of Rajasthan Tax Consultants Association v. Union Of India, the due date has been further extended till 30th October 2018 vide Order dated 8th October 2018.<br> 1.https://www.incometaxindiaefilin.....

Oct 16, 2018

Amendments made in Schedule III(Preparation of Financial Statements) of Companies Act, 2013

<!-- wp:paragraph --> <p> The Ministry of Corporate affairs vide Notification dated 11/10/2018 has made amendments in Schedule III of the said Act. Key changes are as follows:</p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>Loan receivables have been classified further. </li><li>Description of purpose of each reserve has been specified. </li><li>Names of headings of Fixed Assets and Securities Premium Reserve have been modified. </li><li>MSME Disclosures and further classification of Receivables &amp; Payables in IND AS Compliant Financials. </li><li>Division III has been.....

Oct 16, 2018

Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and Aoc-4 (Financial statement) under the Companies Act, 2013- State of Kerala

<!-- wp:paragraph --> <p>The Ministry of Corporate affairs vide Circular No. 09/2018 dated 5th October 2018 has decided to relax the additional fees payable by companies having registered office in the State of Kerala on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e-Form MGT-7 upto 31.12.2018, wherever additional fee is applicable.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br> http://www.mca.gov.in/Ministry/pdf/GeneralCircularKerala_05102018.pdf</p> <!-- /wp:paragraph -->.....

Oct 16, 2018

External Commercial Borrowings (ECB) Policy – Liberalisation

<!-- wp:paragraph --> <p>Reserve Bank Of India vide Cirulcar RBI/2018-2019/54 A.P. (DIR Series) Circular No.10 dated 3rd October 2018 has liberalized the norms relating to External Commercial Borrowings. As per the present norms, ECB up to USD 50 million or its equivalent can be raised by eligible borrowers with minimum average maturity period of 3 years. It has been decided to allow eligible ECB borrowers who are into manufacturing sector to raise ECB up to USD 50 million or its equivalent with minimum average maturity period of 1 year.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br.....

Oct 16, 2018

Completed Assessment reopened on the ground that certain transactions were not disclosed during the original assessment - Vide Decision of High Court of Madras in Sun Direct TV Pvt. Ltd. V. Assistant Commissioner of Income-tax, Chennai

<!-- wp:paragraph --> <p><strong>Facts of the case:</strong></p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>Completed assessments were sought to be reopened by the revenue after a lapse of six years on ground that there were some materials on record and informations that assessee had received money from company SAEHL in name of share subscription along with share premium of Rs.203.98 crores.</li><li>Assessee has also allotted shares to Kalanithi Maran and his wife only at Rs.10 per share without any premium.</li><li>Revenue contended that the Share premium invested by SA.....

Oct 16, 2018

Judgements relating to linking of Aadhar

<!-- wp:paragraph --> <p>The Honorable Supreme Court Of India vide Justice K.S. Puttaswamy (RETD.) V. Union of India has held the following –<br> <u>Aadhaar Constitutionally valid</u> - The Aadhaar Act serves legitimate State interest and good governance to ensure fruits of welfare schemes reach to unprivileged and marginalized section of the society by preventing<br> leakages, pilferages and corruption in the implementation of welfare schemes. It does not violate right to privacy, nor is it unconstitutional.<br> </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><u>Aadhaar for students n.....

Oct 16, 2018

Where it was alleged that Rule 89(5) of CGST Rules, 2017, as amended vide Notification Nos. 21/2018-CT and 26/2018-CT, denies grant of refund of unutilized tax credit in respect of tax paid on input services which is ultra vires to Constitution as well as CGST Act, 2017 and demand notice was to be stayed - Decision of High Court Of Gujarat in Shree Rama Newsprint Ltd. V. Union of India

<!-- wp:paragraph --> <p><strong>Facts of the case :</strong> The assessee has challenged the validity of Section 89(5)<br> as amended by notifications issued later on the following grounds:</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Section 54(3) of the CGST Act, 2017 – A registered person may claim refund of any unutilised input tax credit at the end of any tax period :<br> Provided that no refund of unutilised input tax credit shall be allowed in cases other than – </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p> i. zero-rated supplies made without payment of tax;<br> ii.....

Oct 16, 2018

No levy of Service Tax/GST on the fee paid for award of license for sale of liquor - Vide Decision Of High Court Of Punjab And Haryana in Rajwinder Singh V. Commissioner, CGST Commissionerate, Jalandhar

<!-- wp:paragraph --> <p><strong>Facts of the Case:</strong> The petitioner(Rajwinder Singh) has received notices dated 29.05.2017, 14.07.2017 and 11.01.2018 asking him to furnish certain information with reference to levy of service tax on the fee paid for award of license for sale of liquor.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>The respondent(CGST Commissionerate,Jalandhar) fairly submitted that he has received instructions to the State that in 26th meeting of GST Council held on 10.03.2018 it has been decided that no GST/Service Tax is leviable on the fee paid for grant of l.....

Nov 17, 2018

Filing of Form GSTR 10 – Final Return

<!-- wp:paragraph --> <p> The Central Board of Indirect Taxes and Customs Vide Notification No 58/2018 – Central Tax dated 26th October 2018 has notified that the persons whose GST registration has been cancelled on the recommendation of the GST council by the proper officer on or before 30th September 2018 are required to file final return in Form GSTR 10 on or before 31st December 2018. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>http://www.cbic.gov.in/resources//htdocscbec/gst/notfctn-58-central-tax-english2018.pdf;jsessionid=9F370905AB5904138E6C F6AADB241520 </p> <!-- /wp:parag.....

Nov 17, 2018

Provisions relating to TDS not applicable to supply from PSU to PSU

<!-- wp:paragraph --> <p>The Central Board of Indirect Taxes and Customs Vide Notification No 61/2018 – Central Tax dated 5th November 2018 has notified seeks to exempt a supply from one PSU to another from the provisions of TDS under GST. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>http://www.cbic.gov.in/resources//htdocscbec/gst/notfctn-61-central-tax-english2018.pdf;jsessionid=F7CDBFE56BBEEE1F69C5 F3BEC0999AF4 </p> <!-- /wp:paragraph -->.....

Nov 17, 2018

Circular clarifying collection of tax at source by Tea Board of India

<!-- wp:paragraph --> <p> The Central Board of Indirect Taxes and Customs Vide Circular No 74/48/2018 –GST dated 5th November 2018 has clarified that TCS at the notified rate, shall be collected by Tea Board respectively from the – </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>(i) sellers (i.e. tea producers) on the net value of supply of goods i.e. tea; and (ii) auctioneers on the net value of supply of services (i.e. brokerage). </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>http://www.cbic.gov.in/resources//htdocscbec/gst/Circular-No74.pdf;jsessionid=7521F478BB2304FADE2AA.....

Nov 17, 2018

Streamlining the Process of Public Issue of Equity Shares and convertibles

<!-- wp:paragraph --> <p> The Securities Exchange Board of India(SEBI) Vide its Circular No SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated 1st November 2018 has decided to introduce the use of Unified Payments Interface (UPI) as a payment mechanism with Application Supported by Block Amount (ASBA) for applications in public issues by retail individual investors through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants). The proposed process would increase efficiency, eliminate the need for manual intervention at various stages, and wil.....

Nov 17, 2018

Online application for grant of lower deduction of TDS certificate

<!-- wp:paragraph --> <p>The Central Board of Direct Taxes vide Notification No. 74/2018 dated 25th October, 2018 has notified that the application for grant of lower deduction of TDS certificate can now be furnished online and The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p> - shall lay down procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents and </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>- shal.....

Nov 17, 2018

Payments Bank and Small Finance Banks – access to Call /Notice/Term Money Market

<!-- wp:paragraph --> <p> Reserve Bank Of India vide its Circular No. RBI/2018-19/68 has clarified that Payments Banks and Small Finance Banks are eligible to participate in the Call/Notice/Term money market both as borrowers and lenders. Such eligibility is valid even prior to the completion of the process to get themselves included in the Second Schedule of Reserve Bank of India Act, 1934. The prudential limits and other guidelines on Call money market for Payments Banks and Small Finance Banks will be the same as those applicable to Scheduled Commercial Banks in terms of the Master Directio.....

Nov 17, 2018

The encashed bank guarantee and the amount paid as penalty on account of assessee's failure to perform its part of the agreement are allowable as a deduction under Section 37(1) - Decision of High Court of Delhi in Principal Commissioner of Income Tax-4 v. Green Delhi BQS Ltd.

<!-- wp:paragraph --> <p><strong>Facts of the case: </strong></p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>1. The assessee was engaged in the business of developing, maintaining and operating of Bus-Q-Shelters (BQS), metro stations etc. It entered into an agreement with the Delhi Transport Corporation (DTC) for setting up bus shelters on build, operate and transfer basis. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2. The assessee had also furnished bank guarantee of Rs. 2 crores to DTC as performance security. On DTC invoking bank guarantee, the assessee had approached the H.....

Nov 17, 2018

Where in order to determine admissibility of assessee's claim under section 10B, date of commencement of manufacture could be ascertained from certificate of registration by competent authority, mere wrong mentioning of said date in Form No. 56G filed in support of claim of deduction, could not be a ground to reopen assessment - Decision of High Court of Madras in MBI Kits International v. Income Tax Officer, Non-Corporate Word1(3), Chennai

<!-- wp:paragraph --> <p><strong>Facts of the case: </strong></p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>1. The assessee was formed with an object to carry on the business of manufacturing and testing chemicals. The Madras Export Processing Zone and The Government of India, Ministry of Commerce granted permission to it to carry on the business of manufacturing of test kits used for checking iodized salt. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2. Later, the assessee filed its return of income for assessment year 2010-11, claiming deduction under section 10B. </p> <!-- /.....

Nov 17, 2018

Where DRAT's (Debt Recovery Appellate Tribunal) direction to make pre-deposit was not complied with despite petitioner having sufficient economic activities in foreign country and he did neither disclose foreign assets nor appeared before Court, his writ petitions against order of pre-deposit or for extension of time were to be dismissed - Decision of High Court of Karnataka in Dr. Vijay Mallya v. State Bank of India

<!-- wp:paragraph --> <p><strong>Facts of the case:</strong> </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>1. The respondent No. 13 - Kingfisher Airlines had availed Working Capital and Term Loan Facilities from the Consortium of banks in the year 2005. The said loans were later restructured. In relation to aforesaid loans, the respondent No. 14- United Breweries (Holdings) Ltd. provided a Corporate Guarantee and the petitioner-Vijay Mallya furnished his personal guarantee. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2. The borrower ‘Kingfisher’ committed default in repay.....

Dec 16, 2018

Extension of due date for filing Form GSTR-9, GSTR-9A, GSTR-9C

<!-- wp:paragraph --> <p> The Central Board of Indirect Taxes and Customs Vide Press Release dated 7th December 2018 has decided to extend the due date for filing FORM GSTR-9, FORM GSTR-9A (Annual Returns) and FORM GSTR-9C (Reconciliation statement) till 31st March, 2019. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p> http://cbic.gov.in/resources//htdocscbec/pressrelease/Press_Release_0712.pdf;jsessionid= 5BE64F15B1F45883BFA021486D1ED66E </p> <!-- /wp:paragraph -->.....

Dec 16, 2018

Extension of due date for filing of FORM GSTR – 7 for the months of October, 2018 to December, 2018

<!-- wp:paragraph --> <p>The Central Board of Indirect Taxes and Customs Vide Notification No 66/2018 – Central Tax dated 29th November 2018 has extended the time limit for furnishing GSTR 7 (i.e. person who is required to deduct tax at source in accordance with the provisions of section 51 of CGST Act) till 31st January 2019. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>http://cbic.gov.in/resources//htdocscbec/gst/notfctn-66-central-tax-english2018.pdf </p> <!-- /wp:paragraph -->.....

Dec 16, 2018

Disclosure of reasons for delay in submission of financial results by listed entities

<!-- wp:paragraph --> <p>Regulation 33 of The SEBI Listing Regulations, 2015 specifies that, listed entities shall submit quarterly and annual financial results to stock exchanges within 45/60 days from the end of the quarter/financial year. Wherever there were delays in submission in the past, the fact of delay was intimated by the listed entity, the reasons for the same were not disclosed. Therefore, SEBI Vide its Circular No CIR/CFD/CMD-1/142/2018 dated 19th November 2018 has introduced a new requirement whereby the listed entity shall disclose detailed reasons for such delay to the stock e.....

Dec 16, 2018

Transfer of securities only in demat form- Deadline extended till 1st April, 2019

<!-- wp:paragraph --> <p>The SEBI on March 28, 2018 decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository. This measure was to come into effect from December 5, 2018. Subsequently, SEBI has received representations from shareholders for extension of the date of compliance. In view of the same, SEBI vide its Press Release No. 49/2018 dated 03rd December 2018 has extended the deadline for compliance of the aforesaid requirement til.....

Dec 16, 2018

TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

<!-- wp:paragraph --> <p> It has been brought to the notice of CBDT that incase of Senior Citizens, some Banks are making TDS deductions eventhough the amount of income does not exceed fifty thousand rupees. In view of this, The Central Board of Direct Taxes vide Notification No. 06/2018 dated 06th December, 2018 has clarified that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. </p> <!-- /wp.....

Dec 16, 2018

Relaxation on guidelines to NBFCs on securitisation transactions

<!-- wp:paragraph --> <p>In order to encourage NBFCs to securitise/assign their eligible assets, Reserve Bank Of India vide its Notification No. RBI/2018-19/82 dated 29th November 2018 has decided to relax the Minimum Holding Period (MHP) requirement for originating NBFCs. MHP in respect of loans of original maturity above 5 years shall be till the receipt of repayment of six monthly instalments or two quarterly instalments, subject to the following requirement:- Minimum Retention Requirement for such securitization / assignment transactions shall be 20% of the book value of loans being securi.....

Dec 16, 2018

Maintenance of Statutory Liquidity Ratio (SLR)

<!-- wp:paragraph --> <p>Reserve Bank Of India vide its Notification No. RBI/2018-19/86 dated 05th December 2018 has decided to reduce the Statutory Liquidity Ratio (SLR) requirement of banks by 25 basis points every calendar quarter from 19.50 per cent of their Net Demand and Time Liabilities (NDTL) to (i) 19.25 per cent from January 5, 2019 (ii) 19.00 per cent from April 13, 2019 (iii) 18.75 per cent from July 6, 2019 (iv) 18.50 per cent from October 12, 2019 (v) 18.25 per cent from January 4, 2020 (vi) 18.00 per cent from April 11, 2020. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p.....

Dec 16, 2018

Where the assessee society was set up with object of imparting education and it had entered into franchise agreements with satellite schools and also used gains arising out of these agreements in form of franchisee fees for furtherance of educational purposes, it fulfilled requirements to qualify for exemption under section 10(23C)(vi) - Decision of Supreme Court of India in Director of Income-tax (Exemptions) v. Delhi Public Schools Society

<!-- wp:paragraph --> <p><strong>Facts of the case:</strong> </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>1. Assessee society was set up with main object to establish educational institutions. It had been claiming exemption under section 10(22) since assessment year 1977-78. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2. Inview of substitution of section 10(22) with section 10(23C)(vi) with effect from 1-4-1999, assessee applied for approval of exemption under section 10(23C)(vi) for assessment year 2008-09 onwards. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>3. Ad.....

Dec 16, 2018

SLP dismissed against High Court ruling that where, during scrutiny assessment, Assessing Officer raised several queries asking assessee to justify its claim of deduction under section 10B and after considering assessee's detailed reply allowed deduction, he could not reopen assessment to examine another facet of said claim - Decision of Supreme Court Of India in Deputy Commissioner of Income-tax v. Qx Kpo Services (P.) Ltd.

<!-- wp:paragraph --> <p><strong>Facts of the case:</strong> </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>1. For Assessment year 2011-12, Assessee filed its return of income after claiming deduction under section 10B. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2. During scrutiny assessment, Assessing Officer had raised several queries asking assessee about its claim of deduction under section 10B. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>3. Assessee replied to such queries in detail, upon which Assessing Officer (AO) passed an assessment order under section 143.....

Dec 16, 2018

Where Assistant Commissioner had cancelled registration of assessee on ground that it was not carrying any business and its business was lying closed, since assessee was not served with any show cause notice in proper mode as prescribed under Act and impugned order had been passed only on basis of prima facie opinion, said order was in violation of principles of natural justice and deserved to be set aside - Decision of High Court of Allahabad in Kashi Bartan Bhandar v. State of U.P.

<!-- wp:paragraph --> <p><strong>Facts of the case:</strong> </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>1. The Assistant Commissioner by an order dated 27-1-2018 had cancelled the registration of the assessee on the ground that it was not carrying any business and its business was lying closed. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2. On writ petition, the assessee contended that (i) the impugned order was in violation of principles of natural justice as the show cause notice alleged to have been issued on 18-1-2018 was never sent in any proper mode as prescribed und.....

Jan 19, 2019

CAPITAL EXPENDITURE vs REVENUE EXPENDITURE -Ketan K Waghela, ACA(Mumbai Branch)

<!-- wp:paragraph --> <p>The line of demarcation between capital and revenue expenditure is very thin and the ultimate conclusion on the nature of the expenditure is always a question of law and fact. There are numerous case laws widening line between these expenses. As the Act does not define the terms, one has to depend on their natural meaning on case to case basis.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Recently, the case law of Flipkart has created strife in the e-commerce industry and investors. However, on appeal, it was decided in favour of Flipkart by Income Tax Appellat.....

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