Corporate and Professional Updates On 19th February 2019

Direct Tax Updates:

Case Law On Income Tax:

• Shrivardhan Mohta Vs. Union Of India

Prospective application of Black Money – the Act of 1961 does not impose a punishment of imprisonment while the Act of 2015 does. In such circumstances, it cannot be said that, the petitioner has been sought to be punished twice for the same offence – Calcutta High Court.

• M/S. Vasan Healthcare P Ltd. Vs. The Additional CIT Central Range-2, Chennai

Penalty u/s 271D and 271E – If loan in cash is taken once or twice, in exceptional exigencies, may be a ground for interference, but when the fact remains that a lender not even licensed was illegally giving loans only in cash and accepting repayment in cash cannot be a ground for condonation of regular transaction with such unauthorised lender – Madras High Court.

• DCIT, Circle 19 (1) New Delhi Vs. M/S Oxigen Services(P) Ltd.

Depreciation on POS terminals – assessee was entitled to the depreciation at 60% on the ground that the equipment was akin to a computer – ITAT Delhi.

• M/S. Jaya Permai Enterprise(India) Pvt. Ltd. Vs.ITO, Ward- 15 (2) (2) Mumbai

Levy of penalty levied u/s 271(1)(c) – disallowance under section 40(a)(ia), does not amount to concealment of income – No penalty – ITAT Mumbai.

Indirect Tax Updates:

• Two new features in the Official Website including System Generated Acknowledgement of Application of Appeal and the Population of Data from EWB System into Form GSTR-1.
• The Directorate General of Goods and Services Tax Intelligence has unearthed a fraud worth a whopping Rs 1,000 Crore in the state of Chhattisgarh. The GST officials said that such traders are on their radar and the GST intelligence department is keeping a close tab on the tax evaders.
• GOM panel set up to Review Tax Rate on lottery favours a uniform GST rate of either 18% or 28%– a final call on which would be taken by the GST Council at its meeting on February 20. Currently, a State-Organised Lottery attracts 12% GST while a State-Authorised Lottery attracts 28% tax.
• CBIC issues Clarification regarding tax payment made for Supply of Warehoused Goods while being deposited in a Customs Bonded Warehouse for the period July, 2017 to March, 2018.
• CBIC vide it’s Circular No:89 dated 18th February 2019 seeks to clarify situations of mentioning details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1.

RBI Updates:

• The Reserve Bank of India will pay Rs.28,000 crore as interim dividend to the government, which will help the Centre meet its revised budget estimates that include an allocation for the first ever income transfer to farmers and burnish its fiscal credentials ahead of the general elections.
• RBI in its Board Meeting on February 18 decides to transfer Rs 28,000 Crore as Interim Dividend to the Govt for the period of July to December 2018. The interim surplus has been decided after a limited Audit Review and after applying the Economic Capital Framework.
• RBI Governor Shaktikanta Das will meet top officials of state-run banks and Private Sector Lenders later this month to discuss the issue of transmission of the RBI’s rate cut move to the wider economy.
• RBI will inject Rs 12,500 Crore into the system through Purchase of Government Securities on Thursday which is Feb 21 to increase liquidity. The purchase will be made through Open Market Operations.

Key Due Dates:

• Due dates of GSTR-3B (summary return of January)for the month of January 2019 is 20th February 2019.

Quote of the day:

It’s NOT the job you DO It’s HOW you DO the job.”