CORPORATE AND PROFESSIONAL UPDATES 25th NOVEMBER 2018

Direct Tax:

• Gujarat High court held that tax cannot be levied on gain from sale of agricultural land based on intention of buyer to use the land for business purpose.  Principal CIT Vs Heenaben Bhadresh Mehta (Gujarat High Court)
• ITAT Jaipur held that interest on income tax refund not eligible for deduction under section 80IE. M/s. OMIL JSC (JV) Kameng Kota. Vs Dy. CIT (ITAT Jaipur)
• No Income Tax sec. 68 addition if assessee failed to produce persons who had applied as shareholders; SC dismissed SLP. CIT v. Jalan Hard Coke Ltd. in SLP Civil Diary No. 16078 of 2018.
• Assessee filed details of share capital money before AO showing that there are number of share applicants who applied for allotment of shares and most of them were residing in Delhi and each application was for Rs.2 lakhs each and payment was made by DDs.
• Gujarat High Court Just Admited  Petition and issue notice to CBDT, CHIEF COMMISSIONR AND UNION OF INDIA by  of All Gujarat  Federation of Tax Consultants, to extend Due date from 30 Sept to 30 Nov, as 3cd 3cb and other forms keeps changes. Next Date of hearing is Listed 26.09.2018
• SLP filed before the SC against the order of HC has been dismissed. [2018] 95 com331.
• CBDT extends due dt for filing of Income Tax Returns & audit reports from 30th Sept,2018 to15th Oct, 2018 for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018,after considering representations from stakeholders. Liability to pay interest u/s234A of ITAct will remain .

INDIRECT TAX

• The Authority for Advance Rulings (AAR), Maharashtra ruled that 12 percent GST would be applicable to the services provided by sub-contractors to the main contractors in respect of Works Contract Services pertaining to Railways.

FAQ on GST Audit:

• Query:What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
• Answer:Section 47 of MGL provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from the due date of filing of the annual return for the financial year to which non-payment of tax relates.

MCA UPDATES

• Assessee also filed photocopies of share applications. AO required assessee to produce all persons/share applicants for examination.
• Assessee expressed its inability to produce share applicants, however, submitted that since share application had been received from identifiable persons having capacity and creditworthiness of making share application, no addition u/s 68 should be made.
• High Court by impugned order held that view taken by Tribunal in deleting the addition was just and proper as assessee could not have been assessed to tax to find out person who had applied as shareholder.

RBI Update:

• The Reserve Bank of India has issued notification regarding Co-origination of loans by Banks and NBFCs for lending to priority sector.

CORPORATE & PROFESSIONAL UPDATES:

• ANTI-RTI (Right to Information) policy of Reserve Bank of India is pulled up by Central Information Commission. The list of Defaulters of loans has to be provide within 45 days as ordered by the Supreme Court in its 2015 Judgment.
• A question is raised on the governor Urjit Patel why the name of willful Defaulters is not disclosed and has given a 10-day relief to the RBI and asked it to respond to the notice. Information Commissioner M Sridhar Acharyulu had issued the notice 2, giving Patel time till November 16 to explain. Acharyulu, who is set to retire on Tuesday, heard the matter on Friday and gave the central bank time till November 26 as sought by it. Acharyulu said, “The commission strongly recommends immediate correction and an appropriate action against RBI’s declared anti-RTI policy” and further ordered to disclose and time to time update.
• Huge addition in September payroll almost a million as per the data of EPFO. The highest addition in the past 13 months.
• Department of Industrial Policy and Promotion (DIPP) wants to amend the Public Procurement Order so that penal action can be taken against erring officials of procurement agencies of any government department if they include restrictive or discriminatory conditions against domestic suppliers in bid documents.

 Notification:

• CBDT amends Form of appeal to the Appellate Tribunal.
• Highest payroll in September as according to last 13 months

Key cases:

• In the case of Sushmita Sen Vs. ACIT received by Sushmita Sen towards damages for being sexually harassed not taxable
• SEBI asked listed companies to disclose detailed reasons for the delay in submission of financial results to the stock exchanges within one working day of the stipulated deadline. As in a case a company it was delayed which should be taken within a working day.

KEY DUE DATES

• GSTR-3B (SEP 2018)-OCT 20th, 2018
• GSTR-5 (SEP 2018)-OCT 20th, 2018
• GSTR-6 (JULY 17 – AUG’18)- SEP 30TH, 2018
• GSTR-4 (JULY-SEP, 2018)-OCT 18th, 2018
• GSTR-5A (SEP 2018)-OCT 20th, 2018
• Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores- GSTR-1 (JULY- SEP, 2018)-OCT 31ST, 2018.
• Quarterly return for registered persons with aggregate turnover more than Rs. 1.50 Crores- GSTR-1-(SEP 2018)-OCT 31ST 2018