Corporate and Professional Updates 23rd April 2018
Page Contents
Direct Tax:
- Bombay High Court held that income in respect of sale of flats by assessee, a builder and developer accrued when possession of flat was given and not when allotment letter was issued[TS-186-HC-2018(BOM)]
- ITAT dismisses Revenue’s miscellaneous petition for AY 2010-11 claiming that ITAT did not adjudicate on ground relating to Information Technology Enabled Services (ITES); Notes that ITAT in original order had ruled upon the applicability of Related Party Transaction (RPT) filter relating to ITES segment; Thus, ITAT does not find merit in Revenue’s contention [TS-254-ITAT-2018(B ang)-TP]
- ITAT dismisses, as withdrawn, Revenue’s appeal and Wells Fargo India’s cross appeals in light of resolution under APA for AY 2011-12; Considers letter submitted by AO to CIT(DR) that AY 2011-12 formed part of the rollback years for which APA was signed agreeing to operating margin of not less than 18% which assessee complied with for subject AY; Thus, ITAT states that “appeal of the Revenue as well as the Cross Objection of the assessee are dismissed as withdrawn” [TS-251-ITAT-2018(H YD)-TP]
- ITR-1 form has been activated on the official e-filing portal of the Income Tax Department. The single Income Tax Return (ITR) form, notified by the CBDT on April 5, has been put on its website.
- CBDT has issued a sternly worded directive dated 16th April 2018 stating that a number of complaints are being received in the Tax Payer Services Directorate regarding harassment, misconduct and high handedness of Officers and staff.
- ITAT Delhi in Meenu Goel vs. ITO has held that capital gains from penny stocks cannot be assessed as unexplained cash credit u/s 68 if the assessee has produced documentary evidence to prove the source, identity and genuineness of the transaction and the AO has not found any fault with it.
INDIRECT TAX
- CESTAT Delhi held the finished products which are different types of food preparations and are new marketable products and are liable to excise duty subject to due classification as available in the Central Excise Tariff.M/s Bharat Hotel Limited Vs CCE (CESTAT Delhi)
- CBEC has issued a circular, regarding Reduction of litigation in Central Excise and Service Tax by amending instruction for legacy matters and approval to extend withdrawal on the basis of identical matters.
- CBIC clarified that LUT shall be deemed to be accepted on Generation of ARN, No documents required to be physically submitted to Jurisdictional Office.
FAQ on E-WAY BILLS:
- Query: What has to be done by the transporter if consignee is refusing to take goods or rejects the goods for quality reason?
- Answer: There is a chance that consignee or recipient may reject to take the delivery of consignment due to various reasons. Under such circumstance, the transporter can get one more e-way bill generated with the help of supplier or recipient by indicating supply as ‘Sales Return’ and with relevant document details and return the goods to supplier as per his agreement with him.
Read our articles:
- E-Invoice Mechanism under the GST
- Blocking/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN
- Reasons for the Movement of Goods under the GST
Other updates
- The Payment of Gratuity (Amendment) Bill, 2018 has come into force on 29th March, 2018. The Act has increased the maximum limit of gratuity for private and public-sector employees from Rs 10 lakhs to Rs 20 lakhs.