Today updates: DIRECT TAX:- IT: Late filing fee u/s 234E – late filing of TDS return prior to 01 JUN 2015 – demand notices u/s 200A for intimation for payment of fee u/s 234E can be said as without any authority of law and the same are quashed and set aside to that extent – Sri Fatheraj …
GSTN will start migrating existing taxpayers onto its system from next month : In the recent interview of Mr. Navin Kumar, Chairman of GSTN with the Business Line, he said that the Goods and Services Tax Network (GSTN) will start migrating over 80 lakh taxpayers onto its system from the next month for the smooth implementation of …
Today update DIRECT TAX: Income Tax: Where assessee trust was carrying on micro finance business in a commercial manner so as to earn profit and there was no iota of charity carried on by assessee, exemption under section 11 could not have been granted to assessee .( Assistant Commissioner of Income-tax v. Grama Vidiyal Trust) Income Tax …
DIRECT TAX: Income Tax: Interest paid by the contractor to finance its business wasn’t includible in cost of inventory; No understatement of WIP Deputy Commissioner of Income-tax, Central Circle 2(2), Bangalore v. JSR Constructions (P.) Ltd. [2016] 71 taxmann.com 184 (Bangalore – Trib.) Income tax: ITAT Chennai in the below-citied case held that Continuance of …
TODAY UPDATES: DIRECT TAX: CBDT has issued a clarification regarding u/s 119 of the Income Tax Act, 1961 dated 9th September 2016 vide F. No. 225/195/2016-ITA II dated 14th September 2016. CBDT clarified that the extended due date of filing return would also apply for the tax audit report. ITAT Indore in the below citied …
Direct Tax:
Gujrat High Court in the below citied case held that A private complaint without any further investigation by the authorities surely not be a tangible material to enable the AO to form a belief that income chargeable to tax had escaped assessment.(Biyani Impex Private Limited Vs. ITO
ITAT Delhi in the below citied case held that the amount of payment of interest are hire purchases cannot be characterized as interest payable and this provisions of Section 194A of the Act are not attracted in such transactions.(Pearl Drinks Ltd. Versus ITO, Ward-14 (2) , New Delhi)
IT: TDS default – Considering the penal nature of Sec-221 it would be in the fitness of things to make a distinction between a case where the TDS is deposited suo-motu before any proceedings are initiated by the AO and a case where the deposit of the TDS is made after initiation of proceedings by the AO but before levy of penalty – Kamlesh M. Kanungo HUF Vs DCIT (TDS)-2(1), Mum (2016 (9) TMI 606 – ITAT Mumbai)
IT: Addition u/s 68 – entry operators admitted on oath that they ran a racket assessee has to prove that it was not a beneficiary of the racket – ITO, W-6(3), New Delhi Vs Meghna Towers Pvt. Ltd. & Vica-Versa (2016 (9) TMI 654 – ITAT Delhi)
IT: The AO cannot insist the assessee to prove the authenticity of circumstances leading to write off the bad debts – Hi-Tech Electrothermics & Hydropower Ltd. Vs DCIT, Cir-12(1), New Delhi (2016 (9) TMI 653 – ITAT Delhi)
Direct cash deposit in suppliers bank a/c not attract Disallowance u/s 40A (3)
INDIRECT TAX:
ST: Pre-mature cenvat credit on input services – credit availed before making payment – Rule 4(7) of CCR 2004 – credit cannot be denied – CCE, Jaipur Vs Samcor Glass Ltd. (2016 (9) TMI 684 – CESTAT New Delhi)
ST: Cenvat credit cannot be denied on playing cards supplied as free gift along with final product -Manik Machinery Manufacturers Pvt. Ltd Vs C.C.E., Mumbai-IV (2016 (9) TMI 623 – CESTAT Mumbai)
VAT & ST: It would prima facie appear that the goods stored by the petitioner in the bonded warehouse being sold before the import is completed there would be no liability to pay VAT on such transaction – Trafigura India Pvt. Ltd. Vs State of Gujarat And 4 (2016 (9) TMI 614 – Gujarat High Court)
Gujrat High Court in the below citied case held that the assessee is entitled to interest for delayed refund of amount deposited to Govermnent. However assessee not entitled to interest on interest for delayed refund. .(STATE OF GUJARAT Versus M/s UNJHA PHARMACY)- 2016 (9) TMI 667
Chandigarh CESTAT holds that manufacturing / tie up based agreement between assessee [owner of different brands of Indian Made Foreign Liquor (‘IMFL’)] and bottlers will not be considered as agreement for payment of royalty by bottlers to asseessee, hence not liable to service tax. [TS-371-CESTAT-2016-ST]
RBI & SEBI UPDATE
SEBI deems share transfer by promoters by way of gift as sale .
RBI has set up a working group to review the guidelines for hedging of commodity price risk by residents in the overseas market amid rising volumes of cross-border trade. (more…)
Today updates: Direct Tax: ITAT Pune in the below citied case held that penalty u/s.271D shall not be levied where assessee had taken cash loan from her husband and mother-in-law which has been repaid in cash.The expression “reasonable cause” in section 273B for non imposition of penalty u/s.271D and 271E would have to be construed …
Today Day: Direct Tax: Systematic / Regular sub-leasing of premises is taxable as business income. [Bombay Plaza Pvt. Ltd. vs. A.C.I.T. (ITAT Kolkata)] No penalty for not declaring STCG due to bonafide mistake/clerical error. [Shri Raj Dutta vs. JCIT (ITAT Delhi)] Section 145A is not applicable on taxable services.[CIT vs. Knight Frank (India) Pvt. Ltd. …
Today Day Update : DIRECT TAX: CBDT: No Enquiry or investigation in respect of document / evidence relating to Income Declaration Scheme (IDS), 2016 found during the course of Search u/s 132 or Survey action u/s 133A of the Income-tax Act,1961 – Circular No. 32 of 2016, dt.01 SEP 2016. CBDT clarifies that no enquiry or investigation in …
CORPORATE AND PROFESSIONAL UPDATE SEPT 2, 2016 DIRECT TAX: IT: Applicability of Article 8 visavis Article 24 of DTAA – income assessable to tax at Singapore on the basis of accrual or remittance – The contention of the revenue that the certificate of the Singapore revenue authorities is opposed to provisions of section 10 of the …