CORPORATE AND PROFESSIONAL UPDATE OCT 24, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 24, 2016

Direct Tax:-

• Sum paid to brothers for vacating house held as cost of improvement of house Nanubhai Keshavlal Chokshi HUF v. Income-tax Officer, Ward- 6 (2), Ahmedabad [2016] 74 taxmann.com 113 (Ahmedabad – Trib.)
• Discrepancies in docs under penultimate sales would also lead to denial of export exemption Commissioner of Commercial Tax v. Shakti Containers[2016] 74 taxmann.com 39 (Gujarat)
• ITAT denies set-off of speculative loss when assessee misstated that it was connected with brokerage business commissioner of Income-tax, Kol-II v. Eureka Stock & Share Broking Services Ltd.[2016] 74 taxmann.com 114 (Calcutta)
• IT: Notice u/s 148 for reopening assessment by the very same officer who executed the scrutiny assessment and granted exemption U/s 11- It is a case of change of opinion – Notice quashed – Gujarat State Board of School Textbooks Vs ACIT (2016 (10) TMI 775 – Gujarat High Court)
• Attachment order had be lifted when ITAT deleted all tax demand and revenue didn’t apply for stayShangkalpam Industries (P.) Ltd. v. Income Tax Officer, Company ward VI(1), Chennai [2016] 74 taxmann.com 102 (Chennai – Trib.)
• The Delhi High Court in Pr CIT vs. Samcor Glass Ltdhas warned the department not to harass taxpayers by reopening assessments u/s 147/148 in a mechanical and casual manner. Pr CIT directed to issue instructions to AOs to strictly adhere to the law explained in various decisions and make it mandatory for them to ensure that an order for reopening of an assessment clearly records compliance with each of the legal requirements. AOs also directed to strictly comply with the law laid down in GKN Driveshafts 259 ITR 19 (SC) as regards disposal of objections to reopening assessment.
• The Karnataka High Court inColumbia Sportswear Company vs. DIT has held that a liaison office of a foreign co which identifies a manufacturer in India, negotiates the price, helps in choosing raw material to be used, ensures compliance with quality and gets material tested is not a ‘permanent establishment’ under Article 5 of India-USA DTAA.
• CBDT vide Notification No. 95/2016 notified director, vigilance and anti-corruption bureau, Kerala U/s. 138(1)(a)(ii) to whom in public interest disclosure of information respecting assessees can be made by income tax Department.

Recent update judgement on Settlement Commission

• Honorable SC on 25.09.2023, in a judgment on issue of immunity from penalty and prosecution by the Settlement Commission, delivered that: the assessee ought to have
  • made full & true disclosure before Settlement Commission.
  • Co-operated with Settlement Commission in proceedings before it.
• The Honorable SC also held that “ having regard to legislative intent, frequent interference with the orders or proceedings of Commission should be avoided. There are ltd Grounds on which an order or proceeding of the Commission can be judicially reviewed. High Court should not scrutinize an order or proceeding of Commission as an appellate court.
• Honorable SC upheld the order of Settlement Commission may granting immunity from prosecution& penalty.

Indirect Tax:-

• HC dismisses writ petition, denies assessee cross examination of Chemical Examiner of Central Revenue Control Laboratory who gave sample testing report of imported goods; Person whom assessee seeks to cross examine is an officer / Govt. servant who was discharging statutory duty and therefore, not a witness to the proceedings. [TS-415-HC-2016(MAD)-CUST]
• HC dismisses writ petitions, refuses to interfere with order of Settlement Commission that directed payment of excise duty liability against removal of leather goods by assessee by indulging in manipulation of records of sister concerns and job-workers to avail SSI exemption. [TS-414-HC-2016(MAD)-EXC]
• ST: Activity of toll collection on commission basis would not fall under the category of business auxiliary services so as to make the same liable to service tax – service not liable to tax –Prakash Asphal Ting & Toll Highways (India) Ltd. Vs CCE, Jaipur-II (2016 (10) TMI 746 – CESTAT New Delhi)
• VAT: Taxability of a Car Stereo System – electronic goods falling under Entry 75 or motor vehicle falling under Entry 18 – It cannot be gainsaid that a car stereo does add to the comfort for the use of a motor vehicle – car stereo held as accessory – to be taxed accordingly – Sony India Pvt. Ltd. Vs CIT & Anr. (2016 (10) TMI 720 – Allahabad High Court)
• Quarterly returns under DVAT Act and CST Act for dealers registered in Delhi for the 2nd quarter of 2016 ended on 30.09.2016 is due to be filed on or before 28.10.2016.
• Body building of buses on job-work basis should be valued under rule 10A of Excise
  HMM Infra Ltd. v. Commissioner of Central Excise, Panchkula[2016] 74 taxmann.com 86 (SC)
• Discrepancies in docs under penultimate sales would also lead to denial of export exemption
  Commissioner of Commercial Tax v. Shakti Containers[2016] 74 taxmann.com 39 (Gujarat)

RBI UPDATE :

• The Reserve Bank of India decided to allow foreign investment up to 100 per cent under the automatic route in ‘other financial services’.
• RBI issued operational guidelines for sovereign gold bonds 2016-17 series III vide notification No.RBI/ 2016-17/ 99I DMD. CDD.No.894 /14.04.050/2016-17 October 20, 2016.

 

MCA UPDATE :

• MCA has recently revised Forms CHG-8, AOC-4 and 20-B. Stakeholders are advised to check the latest version before filing.
• MCA:MGT-07/20B filed but the same has not been taken on records due to non-submission/non-uploading of CD are requested to upload the data in excel sheet by 07th November 2016.

GST UPDATE :

• Under GST proposed GST Rates. Food items-Exempt, Gold, Silver-4%, Essential items-6%, Luxury items, FMCG, cigarettes-26%+cess, most items-18%, Others-12%.
• Under GST w.e.f.  8/11/16, existing 80 lac assessees will be able to access their data migrated to GSTN, make necessary corrections & upload relevant documents.
• GSTCouncil to meet on 3-4 Nov to consent on Rates, Draft Bill, Etc.

Read our articles:

• E-Invoice Mechanism under the GST

Blocking/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN

Key Dates:

• Issue of DVAT Certificate for deduction made in the month of September-22/10/2016
• E-return of DVAT for the quarter ended September(Form 61 and CST-1)-25/10/2016
• Filling of half yearly service tax return-25/10/2016

Everyone has two eyes. But no one has the same view. So always try to prove that you are right but never attempt to prove that others are wrong. The kite gives us a nice & wonderful message. Fly high & high. But stay connected to the ground to our roots or else you will be lost.

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