CORPORATE AND PROFESSIONAL UPDATES 12TH JUNE 2018

Direct Tax:

• Delhi HC upholds ITAT order, denies deduction u/s 37 to assessee-individual (a lawyer) for litigation/settlement expenses incurred in respect of settlement of dues of the company for which he stood personal guarantor in his capacity as MD of the company; Notes that on company’s inability to repay substantial advances to financial institutions / banks, assessee switched gear and became a lawyer to settle the dues of the company and entered into one time settlement and incurred the alleged expenses; [TS-295-HC-2018(Del)]
• Mumbai ITAT allows assessee (a salaried employee) to change property declared as Self Occupied Property (‘SOP’) for the purpose of computing Income from House Property for AY 2011-12; ITAT notes that in the return of income, assessee declared Vasai property (from Mumbai) as SOP, however at a later stage of assessment, assessee sought to substitute Juhu Property (from a more developed locality in Mumbai) as SOP, which was rejected by AO; [TS-293-ITAT-2018(Mum)]
• Mumbai ITAT allows assessee-company’s claim of long term capital loss (LTCL) arising on sale of shares of group companies during AY 2005-06, allows set-off against long term capital gains arising on surrender of tenancy rights; Rejects Revenue’s stand that transfer of shares of some group companies (loss making companies) to another group company was a sham transaction and a tax planning to generate LTCL which could be set off against LTCG; [TS-298-ITAT-2018(Mum)]
• CBDT has dedicated a fortnight beginning June 1, 2018 for expeditious disposal of pending appeals and rectification matters. The direct tax body in a statement said the assessing officers have been directed to accord top priority to such matters and to give special attention to this area of work.
• CIT vs. Sunita Dhadda (Supreme Court)  143(3)/ 292C: If the AO wants to rely upon documents found with third parties, the presumption u/s 292C against the assessee is not available. As per the principles of natural justice, the AO has to provide the evidence to the assessee & grant opportunity of cross-examination.
• Mumbai bench of ITAT upheld the right of a taxpayer to change the selection of a house property that would be treated as self-occupied and having a ‘nil’ annual value. Consequently, the notional rent from such a house will not be taxable.

INDIRECT TAX

• Authority for Advance Ruling (AAR) in Andhra Pradesh has ruled that warehoused duty-free ship stores, which stock goods imported without payment of duty and sell to outbound ships, will be liable to pay GST on supplies made to Indian naval ships, coast guard ships and ocean-going ships.
• Union Minister Dharmendra Pradhan said that Petrol, diesel to be under GST soon, says Dharmendra PradhanAs the state owned oil industry is losing Rs 200 billion annually in terms of input credit

FAQ on E-WAY BILLS:

• Query: Whether the e-way bill is required for movement of consignment for weighment to the weighbridge?
• Answer:No e-Way bill is required for movement of goods up to a distance of 20 Km from the place of business of consignor to a weighbridge for weighment or from the weighbridge back to the place of business of consignor, within the same State, subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with Rule 55.
• Query:Whether e-way bill is required for all the goods that are being transported?
• Answer:The e-way bill is required to transport all the goods except exempted under the notifications or rules. Movement of handicraft goods or goods for job-work purposes under specified circumstances also requires e-way bill even if the value of consignment is less than fifty thousand rupees. Kindly refer to the e-way bill rules for other exemptions.

Read more about: What is core Business Activity GST

Read more about: All about GST Offenses, Penalties, and Appeals

MCA Update:

• Forms SPICe MoA and SPICe AoA are likely to be revised on MCA21 Company Forms Download page w.e.f 14th JUNE 2018. Stakeholders are advised to check the latest version before filing.
• Payment through Union bank Internet Banking has been temporarily disabled. Stakeholders are advised not to choose UBI Internet Banking for making the payment. Stakeholders can still choose any other payment option available.

KEY DATE:

• QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018
• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018