Publications Archives

Disallowance u/s 40(a)(i) on account of retrospective amendment in the meaning of term ‘royalty’ as defined under section 9 deserves to be deleted. CIT-11 Vs. NGC Networks (India) Pvt. Ltd. (Bombay HC).
————————————————————–
CBDT clarifies that no Coercive action would be taken u/s 56(2)(viib) against the valuation of shares of a Startup defined under Notification G.S.R. 501(E) dated 23.05.2017.
————————————————————–
Processing charges to the extent amortised only up to the period of capitalisation of the qualifying asset (not entire processing charges) can only be capitalised- ITFG Bulletin-14
————————————————————–
As per Amendment Act 2017, associates are at par and also to be included for the purpose of consolidation, besides subsidiaries.
————————————————————–
Section 134 Financial Statement, Board reports :
Earlier, the CEO is required to sign the financial statement only if he is a Director of the company, post amendment, the CEO shall sign the Financial statement whether he is appointed a Director or not. Section 134 (3) (1).
————————————————————–
Dividend Distribution Tax paid on distribution of dividend to preference shareholders classified as liability is in the nature of borrowing cost and eligible for capitalisation-ITFG Bulletin-13.
————————————————————–
Financial guarantee given by the directors in connection with loan taken by company without any consideration are not required to be accounted for and only disclosed as related party transaction- ITFG Bulletin-13.
————————————————————–
Information about major customers (i.e. contributing 10% or more of total revenue) needs to be disclosed even if the company operates in only one segment- ITFG Bulletin 13.
————————————————————–
(i) Notification no 11/2018 – Central Tax issued rescinding earlier notification for applicability of way bill (both for intra and inter state ) provisions w.e.f., 01.02.18.It shall be made compulsorily from a date to be announced.

(ii) If the consigner or consignee is unregistered taxpayer and not having GSTIN, then user has to enter “URP” (Unregistered Person) in corresponding GSTIN column.

(iii) The validity of the e-way bill starts when first entry is made in Part- B i.e., vehicle entry is made first time in case of road transportation or first transport document no. entry in case of rail/air/ship transportation, whichever is the first entry. It may be noted that validity is not re- calculated for subsequent entries in Part-B.

(iv) The e-way bill once generated cannot be edited or modified. Only Part-B can be updated to it. Hence, e-way bill generated with wrong information has to be cancelled and generated afresh again. The cancellation is required to be done within twenty-four hours from the time of generation
————————————————————–
To invoke section 2(22)(e) beneficial owner of Shares is to be considered. Being a registered shareholder is of no relevance. [National Travel Services vs. Commissioner of Income-Tax, Delhi, VIII]
————————————————————–
The Auditing and Assurance Standards Board of ICAI has issued the revised formats in consultation with RBI of the statutory auditor’s report for urban cooperative banks (UCBs).
————————————————————–
SEBI’s circular dt. 26th Sept, 2017 prescribing guidelines for prevention of unauthorised trading by stock brokers is to be effective from 1st April 2018.
————————————————————–
MCA has rolled out a new web service “RUN” i.e. Reserve Unique Name w.e.f. 26th January, 2018 for reserving the name of a proposed Company and for changing the name of existing Company. Under the said process, re-submission of the Application is not allowed. Further, there will be no fees for incorporation of Companies having nominal share capital up to Rs.10 Lacs. The approved name shall be valid for a period of 20 days from the date of approval (for a new Company) or 60 days (for changing name of an existing company).
————————————————————–
Revenue cannot direct assessee to act in a manner in defiance to the principles of commercial expediency and in turn to damage its own business interest. Mumbai Bench deleted addition u/s 41(1) for commission overdue to Kuwaiti agent for over 1400 days. ITAT Mumbai [Pyramid Consulting Engineers Pvt. Ltd v DCIT CIR 3]
————————————————————–
In the process of bringing Accounting Standards nearer to Ind AS, ASB has issued Exposure draft of AS 16 – Property, Plant and Equipment and requested comments by 24th Feb 2018. The upgraded Standard AS 16 is almost similar to AS 10 with few differences which are included as an appendix of the draft standard.
————————————————————–
A penalty notice u/s 271(1)(c), which does not strike out the irrelevant portion & which does not specify whether the penalty is for “concealment” or for “furnishing inaccurate particulars” renders the penalty order void [Jeetmal chorasia Vs. ACIT (ITAT Kolkata)]
————————————————————–
– A new Self Help Portal, https://selfservice.gstsystem.in/ will be launching n 22.01.2018 to enable taxpayers to report issues and problems related to GST system and its services, can raise tickets, check status. Mail ID helpdesk@gst.gov.in will be discontinued.

– The late fee payable for failure to file forms GSTR-1, GSTR-5, GSTR-5A and GSTR-6 has been reduced to Rs.50/day and would be Rs.20/day for NIL returns.

– For migrated taxpayers, the last date of filing Form GST REG-29 for cancellation of registration is extended to 31.03.2018

– Taxable persons who obtained voluntary registrations can apply for cancellation even before the expiry of one year from the effective date of registration.
————————————————————–
Companies carrying on the activity of NBFC whether or not registered with RBI will also be subject to the same roadmap for the applicability of IND AS to NBFC.
————————————————————–
International Accounting Standards Board (IASB) has issued annual improvements to IFRS Standards making four amendments to 4 IFRS namely IFRS 3 Business Combinations, IFRS 11 Joint Arrangement, IAS 12 Income taxes and IAS 23 Borrowing Costs.
————————————————————–
Paragraph 34 of IND AS 108, Operating Segments requires entities to disclose information about its major customers i.e. those contributing 10% or more of its total amount of revenue. Such disclosure is required even in case where the company operates in only one segment.
————————————————————–
The International Financial Reporting Standard (IFRS) Board has notified that IFRS 9 and IFRS 15 would become effective for annual periods beginning on or after 1 January 2018.
————————————————————–
Prior to amendment as per Finance Act, 2014, in order to avail benefit of Sec 54 the assessee was required to invest sale proceeds arising on sale of capital asset in a residential house within stipulated period irrespective of its location. The additional condition of Investing in residential property situated in India has been introduced by Finance Act, 2014 prospectively as per AAR ruling. [AAR in case of Dipankar Mohan Ghosh]
————————————————————–
The International Accounting Standards Board (Board) issued an update to the IFRS Taxonomy 2017 for IFRS 17 Insurance Contracts which includes IFRS Taxonomy elements to reflect the new presentation and disclosure requirements introduced by IFRS 17 Insurance Contracts, issued by the Board in May 2017.
————————————————————–
– At the time of registration u/s 12A, CIT is entitled only to examine the object of trust and not books of accounts. [Vidyadayani Shiksha Samiti Vs. CIT (ITAT Delhi)]

– Penalty u/s 271(1)(c) can’t be levied, merely on account of different method for computation of arm’s length price used by the AO and no dishonesty is found in the conduct of the assessee [Halcrow Consulting India Pvt. Ltd Vs. DCIT (ITAT Delhi)]
————————————————————–
Interest income on non performing inter-corporate deposit not recognised as per RBI Prudential norms would not be taxable in the hand of NBFC. SC [CIT v Vasisth Chay Vyapar Ltd]
————————————————————–
– Newly Registered Taxpayers can now file Form ITC-01 to take ITC in respect of inputs held/contained in stock/semi-finished/finished goods on the day immediately preceding the day it become liable to pay tax under GST.

– The Composition dealers, who opt out of composition scheme and opt to pay tax as normal taxpayer can now file Form ITC -01 to take ITC in respect of inputs held/contained in stock/semi-finished/finished goods or on capital goods on the day immediately preceding the day it become liable to pay tax under GST.

– Application for GST registration can be accessed from the GST portal for cancellation of GST registration.

– Persons registered as Tax Deductors/ Collectors or to whom UIN has been allotted cannot file for cancellation of GST registration.
————————————————————–
RBI, on 4th January, 2018, issued a Master Direction on Foreign Investment in India which inter alia lists out prohibited sectors / persons, entry routes and permitted sectors, permitted investments by persons resident outside India, mode of payment, pricing guidelines, downstream Investment, taxes and remittance of sale proceeds etc. It comprises of ten annexures which provide directions and instructions on Foreign Investment in India and its related aspects under FEMA such as investment on non-repatriation basis, investment in LLP, issue of IDR’s etc.
————————————————————–
A Cryptocurrency is a digital or virtual currency. At present there are over 1000 cryptocurrencies.

The accounting and financial reporting of cryptocurrencies depends upon various parameters and their classifications. It can be classified as:
1. Inventory: Entities which deals in cryptocurrencies as their business operations have to meet the requirements of Ind AS 2 regarding recognition and measurement of inventories.
2. Intangible Assets: Entities purchasing cryptocurrencies occasionally may treat them as intangible assets in accordance with the INDAS 38.
3. Cash and Cash Equivalents: In India this classification is not feasible in accordance with the definition given under INDAS 7 Cash Flow Statement.
————————————————————–
The ICAI has issued an Exposure Draft (ED) of Amendments to Indian Accounting Standard (Ind AS) 20, Accounting for Government Grants and Disclosure of Government Assistance. The purpose of proposing these amendments in Ind AS 20 is to allow the options to present non-monetary government grants at nominal value and government grants related to assets by deducting the same from the carrying amount of the asset.
————————————————————–
The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft 63, Social Benefits, which addresses accounting for the delivery of social benefits such as retirement, unemployment and disability. The draft defines social benefits and proposes requirements for the recognition and measurement of social benefit schemes and disclosure requirements.
————————————————————–
The Accounting Standards Board of the ICAI issued Exposure Draft of the Amendments to Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance wherein amendments are proposed in Ind AS 20 to allow the options to present non-monetary government grants at nominal value and government grants related to assets by deducting the same from the carrying amount of the assets.
————————————————————–
Amount disallowed u/s 14A of the Act not to be added back to arrive at book profit for MAT computation u/s 115JB of the Act. [CIT v. Bengal Finance & Investments Pvt. Ltd. (Bombay HC]
————————————————————–
Interest under section 234B shall be payable on failure to pay advance Alternate Minimum Tax u/s 115JC [GIE Jewels vs. ITO, ward 2(1), ITAT Jaipur]
————————————————————–
SEBI on January 5, 2018 revised the existing framework for Electronic Book Mechanism for issuance of debt securities on private placement basis to make it mandatory for issue size of Rs. 200 Cr or more (previously Rs. 500 Cr and above) w.e.f. April 1, 2018.
————————————————————–
Annual franchise fee paid by KKR to BCCI for participation in IPL is an allowable revenue expense as it facilitates participation in league/ team for only the year for which such payment is made : Knight Riders Sports (P.) Ltd. v. ACIT Mumbai [ITAT Mumbai].
————————————————————–
GST UPDATE

– Traders and Manufacturers under composition scheme are now require to pay GST @1% (i.e. 0.5% CGST plus 0.5% SGST) of the turnover in state.
– Registered person reporting wrong aggregate turnover and opts to file FORM GSTR-1 on quarterly basis may be liable for punitive action.
————————————————————–
Auditors are now required to report on Internal Financial Control with reference to financial statements only as per Section 143(3)(i) as per Companies (Amendment) Bill, 2017
————————————————————–

SEBI on 3rd Jan 2018 has amended the existing regulatory framework governing the scheme of arrangement to expedite the processing of draft scheme and to prevent misuse. Accordingly provisions not to apply on merger of divisions of wholly owned subsidiary with parent company. The valuation report and the fairness opinion to be provided by an Independent Chartered Accountant and SEBI Registered Merchant Banker respectively; the requirements for submission of certain documents to the stock exchange after the Scheme is Sanctioned, has been done away with.
————————————————————–
IASB has sought comments (till 15th Jan 2018) on proposed amendment to the definition of “material” in IAS 1 & IAS 8 to align the definition in IFRS & Conceptual Framework for financial reporting and to overall improve the understanding of current requirements.
————————————————————–

Amendment in Section 11 prospective, thus double benefit may be availed for years prior to amendment by way of claim of depreciation alongwith cost of acquisition of asset as application of income. (CIT V. Rajasthan and Gujarati Charitable Foundation Poona) [SC]

————————————————————–
Licence fee received by assessee for giving its hotel with furniture and fixture to a company for running hotel for a specified period to be taxed as business income and not income from home property

(Palmshore Hotels (P.) Ltd. V. CIT, [Kerala HC]

————————————————————–
Date of transfer of capital asset to be considered as date on which the complete control/ possession over the capital asset is transferred and not when the Development Agreement is executed. (CIT V. Dr. Arvind S. Phake)

————————————————————–

– CBDT circular prohibiting freebies/monetary benefits to doctors is prospective in nature [ITO vs. Sunflower Pharmacy (ITAT Ahmadabad)]
– Section 271D doesn’t provide/suggest for transaction to be invalid, illegal or null in case of contravention of section 269-SS of the Act. The payer of money in cash, in violation of section 269-SS, can always have the money recovered. [Surinder singh vs. state of H.P. (High court of Himachal Pradesh)]

————————————————————–

GST UPDATE
– Due Date to file Form GSTCMP-03 for intimation stock details held on the date preceding the date from which the option to pay tax under Composition scheme is exercised extended to 31st January 18
– Due Date to file Form GSTR-1 by the person with aggregate turnover upto 1.5 Cr for the period July to Sep, 2017 extended to 10th Jan, 2018
– Due Date to file Form GSTR-1 by the person with aggregate turnover above 1.5 Cr for the period July to Nov, 2017 extended to 10th Jan, 2018
– Waiver of late fee for failure in furnishing the Form GSTR-4 by the due date in excess of Rs 25 per day and in case of Nil tax return fee in excess of Rs 10 per day
– The provisions related to e way bill shall come in force w.e.f 01st February 2018.

————————————————————–

– MCA gives one time opportunity to defaulting companies and disqualified directors to file documents till 31st March 2018.
– The e-Form CODS 2018 likely to be available from 20.02.2018.

————————————————————–

The Internal Audit Standards Board (IASB) of ICAI issued an exposure draft proposing to revise the definition of internal audit as follows ‘Internal audit provides independent assurance on effectiveness of internal controls, risk management processes and contributes to enhancing governance for achieving organizational objectives.

————————————————————–

The International Accounting standard Board (IASB) has published for public consultation and feedback proposed narrow-scope amendments to IAS 8 Accounting Policies, Change in Accounting Estimates and Errors.

The purpose of the proposed amendments is to help companies distinguish accounting policies from accounting estimates.

The distinction is important because changes in accounting estimates often affect a company’s profit or loss, but changes in accounting polices do not.

————————————————————–

GST updates
– Merchant exporter registered with EPC or commodity board recognized by department of commerce can avail the benefit of concessional rate of 0.1%.
– Credit of education cess and SH education cess c/f in ER.1 can-not be taken under GST.
– An ISD cannot accept invoices on which tax is to be discharged under reverse charge mechanism.
– Manufacturer who was not registered under excise, can-not take deemed transitional credit of the goods in the absence of duty payment documents.
– Job work challan details need not to be uploaded in GSTR-1

————————————————————–

The Internal Audit Standards Board of The Institute of Chartered Accountants of India (ICAI) has invited comments on proposed revision to the Preface to the Framework and Standards on Internal Audit and the proposed Framework Governing Internal Audits. This framework intends to promote professionalism in the conduct of an internal audit assignment by the internal auditor and to ensure basic minimum standards of quality worthy of the qualification of the internal auditor and to promote the credibility of the internal audit report issued.

————————————————————–

The new revenue standard (Ind AS 115, Revenue from Contracts with Customers) is expected to be applicable to Indian companies following Ind AS road map from 1 April 2018 replacing the current standards on Ind AS 18, Revenue and Ind AS 11, Construction Contracts.

————————————————————–

Quality Review Board has issued a Report on Audit Quality Review (2016-17) providing findings, analysis and summary of observations made by the Technical Reviewers in review reports.

————————————————————–

The Auditing and Assurance Standard Board of the Institute of Chartered Accountants of India has sought comments on exposure draft (ED) on the Guidance note (GN) on Audit of Banks 2018 edition by 13 January 2018.

————————————————————–

The International Accounting Standard Board (IASB) has issued annual improvements to International Financial Reporting Standard (IFRS) Standards 2015-2017 cycle, which makes narrow – scope amendments to four IFRS Standards namely: IFRS 3 – Business Combinations; IFRS 11 – Joint Arrangements; IAS 12 – Income Taxes; and IAS 23 – Borrowing Cost. Amendments would become effective from 1 January 2019; however, early application is permitted.

————————————————————–

Income tax rules amended to allow the tax department to deliver the notices to assessee at address given by them to bank, insurance companies, post office etc. in case notice is undeliverable at the address supplied to tax department.

————————————————————–

Advance deposit of central excise duty in personal ledger account to constitute actual payment of liability for the purpose of section 43B of the Act. [CIT vs. Modipon Limited, Supreme court]

————————————————————–

In order to ensure uniformity of disclosures under Regulation 11(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, a standard format has been prescribed with effect from December 22, 2017, for filing Application with SEBI to seek exemption from the obligation to make open offer for acquiring shares under such regulations.

————————————————————–

SEBI through its Circular dated December 19, 2017 pertaining to disclosure of holding of specified securities and holding of specified securities in dematerialized form, amended clause 2(c) to include public shareholder and non-public non-promoter shareholder in addition to promoters and promoter group to provide the details of their shareholding to be accompanied with PAN (first holder in case of joint holding) and to be consolidated on the basis of PAN and folio number to avoid multiple disclosures of shareholding of the same person.

————————————————————–

GST Update

(i) Taxpayers with annual turnover below 1.5 Cr can opt to file quarterly return or monthly return
(ii) If the taxpayer has filed GSTR-1 and GSTR-3B then GSTR-2 and GSTR-3 are not required to be filed for claiming refund
(iii) If taxpayer misses Shipping and invoice details in a month, they can add details in subsequent months and get refund
(iv) Due Date to file Form GST ITC-01 by a registered person who become eligible to avail ITC during period July to November 17 extended to 31st January 18
(v) Due Date to file Form GSTR- 5A by a person supplying OIDAR services from a place outside India to a non-taxable online recipient for the period July to December 17 extended to 31st January 18
(vi) Due Date to file Form GSTR- 5 by a Non- resident taxable person for the period July to December 17 extended to 31st January 18

————————————————————–

– In case of online refund, RFD-01A along-with ARN to be submitted manually to the department.
– Supplies to SEZ are chargeable to IGST, But the same can be made without payment of tax after filling of LUT/BOND.
– ITC can-not be availed by composition dealer on tax paid under reverse charge.
– Supplies of goods by a registered person to EOUs are deemed exports and refund of tax paid on such can be claimed either by the recipient or supplier of such supplies.
– Supply of services having place of supply in Nepal or Bhutan, against payment in INR is exempt from IGST

————————————————————–

The new revenue standard (Ind AS 115, Revenue from Contracts with Customers) is expected to be applicable to Indian companies following Ind AS road map from 1 April 2018. This standard would replace the current standards on Ind AS 18, Revenue and Ind AS 11, Construction Contracts. The new standard Ind AS 115, introduces a new framework – five step model – for the analysis of revenue transactions. The new revenue model is expected to apply to all industries and all types of revenue generating transactions.

————————————————————–

The Companies (Amendment) Bill, 2017 was passed by the Rajya Sabha on Tuesday (19th December, 2017). The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country.

————————————————————–

Subsidy granted by the Govt. to achieve the objects of acceleration of industrial development and generation of employment is capital in nature since taxability of the subsidy is determined based on the objects of subsidy and not on the form in which it is granted. CIT vs. Chaphalkar Brothers Pune (Supreme Court)

————————————————————–

Due date for taxpayers having Aadhaar Number or Enrolment Number to link the same with Permanent Account Number (PAN) has been extended till 31.03.2018.

————————————————————–

Intimation u/s 143(1)(a)(vi) to be issued in case of ITR-1 only when a) income appearing in Form 26AS or Form 16A or Form 16 is not included in computing the total income; or b) when any item or head of income has altogether been omitted to be included in ITR. [CBDT Instruction No. 09/2017 Dated 11.10.2017]

————————————————————–

MCA has notified the Companies (Cost Records & Audit) Amendment Rules, 2017 dated December 7, 2017, w.e.f 01/04/2016. “Indian Accounting Standards” have been defined to mean Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules, 2015. Form CRA-1 (Form in which Cost Records shall be maintained) and Form CRA-3 (Form of the Cost Audit Report) have been substituted with retrospective effect.

————————————————————–

ICSI introduces Secretarial Standard – 3 (SS-3) on Dividend which prescribes set of principles in relation to declaration & payment of interim/ Final dividend (on equity as well as preference share capital) and matters related thereto and shall come into effect from 1st January 2018. SS-3 shall not apply to a Company limited by guarantee not having share capital and does not deal with Dividend, if any, declared by Companies under liquidation.

————————————————————–

Guarantee fee charged by UK based holding company from its Indian subsidiary, not in nature of interest and in absence of any specific provision, to be taxed as other income in India. ( Johnson Matthey Public Ltd. Company v DCIT (Int tax)) (Delhi ITAT)

————————————————————–

The 24th GST Council Meeting held on 16th Dec 2017 through video conferencing decides that Inter-State e-way Bill to be made compulsory from 1st of February, 2018

(i) The nationwide e-way Bill system will be ready to be rolled out on a trial/Voluntary basis latest by 16th January, 2018.
(ii) Mandatory e-way Bill system for Inter-State movement of goods w.e.f 1st February, 2018.
(iii) The States may choose their own timings for implementation of e-way Bill for intra-State movement of goods on any date before 1st June, 2018

————————————————————–

Availability of Latest functionality on GST Portal

(i) Functionality to file quarterly GSTR1 returns has been provided on the GST Portal, for those taxpayers whose value of clearance is less than Rs. 1.5 Cr in current or previous financial year.
(ii) Functionality to amend details of invoices/credit or debit notes etc filed in previous period, through Table 9 of Form GSTR 1
(iii) Form GST TRAN 2 is now available on the GST Portal

————————————————————–
Financial guarantee given by the directors in connection with loan taken by company without any consideration are not required to be accounted for and only disclosed as related party transaction- ITFG Bulletin-13.
————————————————————–
Information about major customers (i.e. contributing 10% or more of total revenue) needs to be disclosed even if the company operates in only one segment- ITFG Bulletin 13.
————————————————————–
(i) Notification no 11/2018 – Central Tax issued rescinding earlier notification for applicability of way bill (both for intra and inter state ) provisions w.e.f., 01.02.18.It shall be made compulsorily from a date to be announced.

(ii) If the consigner or consignee is unregistered taxpayer and not having GSTIN, then user has to enter “URP” (Unregistered Person) in corresponding GSTIN column.

(iii) The validity of the e-way bill starts when first entry is made in Part- B i.e., vehicle entry is made first time in case of road transportation or first transport document no. entry in case of rail/air/ship transportation, whichever is the first entry. It may be noted that validity is not re- calculated for subsequent entries in Part-B.

(iv) The e-way bill once generated cannot be edited or modified. Only Part-B can be updated to it. Hence, e-way bill generated with wrong information has to be cancelled and generated afresh again. The cancellation is required to be done within twenty-four hours from the time of generation
————————————————————–
To invoke section 2(22)(e) beneficial owner of Shares is to be considered. Being a registered shareholder is of no relevance. [National Travel Services vs. Commissioner of Income-Tax, Delhi, VIII]
————————————————————–
The Auditing and Assurance Standards Board of ICAI has issued the revised formats in consultation with RBI of the statutory auditor’s report for urban cooperative banks (UCBs).
————————————————————–
SEBI’s circular dt. 26th Sept, 2017 prescribing guidelines for prevention of unauthorised trading by stock brokers is to be effective from 1st April 2018.
————————————————————–
MCA has rolled out a new web service “RUN” i.e. Reserve Unique Name w.e.f. 26th January, 2018 for reserving the name of a proposed Company and for changing the name of existing Company. Under the said process, re-submission of the Application is not allowed. Further, there will be no fees for incorporation of Companies having nominal share capital up to Rs.10 Lacs. The approved name shall be valid for a period of 20 days from the date of approval (for a new Company) or 60 days (for changing name of an existing company).
————————————————————–
Revenue cannot direct assessee to act in a manner in defiance to the principles of commercial expediency and in turn to damage its own business interest. Mumbai Bench deleted addition u/s 41(1) for commission overdue to Kuwaiti agent for over 1400 days. ITAT Mumbai [Pyramid Consulting Engineers Pvt. Ltd v DCIT CIR 3]
————————————————————–
In the process of bringing Accounting Standards nearer to Ind AS, ASB has issued Exposure draft of AS 16 – Property, Plant and Equipment and requested comments by 24th Feb 2018. The upgraded Standard AS 16 is almost similar to AS 10 with few differences which are included as an appendix of the draft standard.
————————————————————–
A penalty notice u/s 271(1)(c), which does not strike out the irrelevant portion & which does not specify whether the penalty is for “concealment” or for “furnishing inaccurate particulars” renders the penalty order void [Jeetmal chorasia Vs. ACIT (ITAT Kolkata)]
————————————————————–
– A new Self Help Portal, https://selfservice.gstsystem.in/ will be launching n 22.01.2018 to enable taxpayers to report issues and problems related to GST system and its services, can raise tickets, check status. Mail ID helpdesk@gst.gov.in will be discontinued.

– The late fee payable for failure to file forms GSTR-1, GSTR-5, GSTR-5A and GSTR-6 has been reduced to Rs.50/day and would be Rs.20/day for NIL returns.

– For migrated taxpayers, the last date of filing Form GST REG-29 for cancellation of registration is extended to 31.03.2018

– Taxable persons who obtained voluntary registrations can apply for cancellation even before the expiry of one year from the effective date of registration.

————————————————————–
To remove difficulty regarding appointment and removal of Independent Directors from the Board, MCA has issued Companies (Removal of Difficulties) Order, 2018 dt. 21.02.18. Accordingly an Independent Director reappointed for second term shall be removed by the Company only by passing a special resolution. A provisio in this regard shall be insered in Section 169(1) of the Companies Act, 2013.
————————————————————–
AASB of ICAI has brought out Implementation Guide to SA 701, Communicating Key Audit Matters in the Independent Auditor’s Report, which would be applicable for audits of financial statements for periods beginning on or after April 1, 2018.
————————————————————–
Commission paid to agents for securing orders from other countries and payment thereof is allowable business expenditure u/s 37(1). : [PCIT-6 vs. Mohan Exports India (P) Ltd., Delhi High court]
————————————————————–
Taxpayers guide on various issues:
• Refund amount will be credited to the bank account registered on the GST portal. In case applicant requires receipt of refund in different bank, the same need to be added in registration details by way of non-core amendment.

• Turnover of inverted rated supply of goods shall be the value of inverted supply of goods made during the relevant period without payment of tax under bond or letter of undertaking.

• Adjusted total turnover is the turnover in a state or a union territory, as defined under clause (112) of Sec. 2 of CGST Act, excluding the value of exempt supplies other than inverted- rated supplies, during the relevant period.
————————————————————–

No re-assessment would be made after 4 years if all the material facts were disclosedby the assessee during the Original Assessment. [Shashi Agarwal Vs DCIT, ITAT Mumbai]
————————————————————–
Processing charges to the extent amortised only up to the period of capitalisation of the qualifying asset (not entire processing charges) can only be capitalised- ITFG Bulletin-14
————————————————————–
As per Amendment Act 2017, associates are at par and also to be included for the purpose of consolidation, besides subsidiaries.
————————————————————–
Section 134 Financial Statement, Board reports :
Earlier, the CEO is required to sign the financial statement only if he is a Director of the company, post amendment, the CEO shall sign the Financial statement whether he is appointed a Director or not. Section 134 (3) (1).
————————————————————–
Dividend Distribution Tax paid on distribution of dividend to preference shareholders classified as liability is in the nature of borrowing cost and eligible for capitalisation-ITFG Bulletin-13.

————————————————————–

ICAI : All efforts should be made that the allocation of work amongst joint auditors of bank should be in agreement with the management of the bank. When so required, the said allocation may be carried out in consultation with those charged with governance of the bank.
————————————————————–
Where a person gets any work done by another person as contemplated in Sec 194C without entering into any contract, the provisions of Sec 194C would not be attracted and assessee would have no liability to deduct TDS. [Principal CIT v. Swastik Construction (Gujarat HC)]
————————————————————–
Interest on delayed refund is assessable in year of receipt not in the year in which it was granted. [CIT, Kottyam vs. Malayala Manorama Co. Ltd. (Kerala HC)]
————————————————————–
Notice issued addressing to an erstwhile entity (Company converted to LLP) will not invalidate the proceedings initiated (Section 292B of Tax Laws (Amendment) Act, 1975). [Sky Light Hospitality LLP vs. ACIT, (Delhi HC)]
————————————————————–
The Union Cabinet on March 1 approved setting up of the National Financial Reporting Authority (NFRA), which will be an independent regulator for the auditing profession. This was one of the key changes brought in by the Companies Act, 2013.
————————————————————–
Service of notice to authorized representative is deemed to be service of notice on the assessee. [ITO vs. Dharam Narain (SC)]
————————————————————–
CBDT has notified Income-tax (First Amendment) Rules, 2018 substituting the existing Rule 17A & Form 10A. Now, Form No. 10A shall be furnished electronically alongwith prescribed documents, under digital signature of the person who is authorised to verify the return of income u/s 140 of the Act.
————————————————————–
RBI has come out with an Ombudsman Scheme for NBFC through notification dt. 23.02.2018 that deals with setting up of mechanism in order to address complaints received from customers and to resolve them in expeditious and fair manner. It is applicable on all NBFCs which (a) are authorised to accept deposits; or (b) have customer interface, with assets size of one billion rupees or above, as on the date of the audited balance sheet of the previous F.Y.
————————————————————–
E-way bill to be implemented from 1st April 2018 mandatorily for inter – state movement of goods.
————————————————————–
Creation of a Trust by a corporate entity for complying with the CSR responsibilities, cannot be a reason for denying registration u/s 12AA. [Nanak Chand Jain Charitable Trust vs. Commissioner of Income-tax (Exemptions), Chandigarh (Delhi ITAT)]
————————————————————–
The fact that notices issued u/s 133(6) of the Act could not be served upon the alleged vendors and they were not physically available at the given addresses does not falsify the claim of the assessee that the purchases are genuine if the assessee has produced other evidence and made payments through banking channels. [Prabhat Gupta Vs.ITO (ITAT Mumbai)]
————————————————————–
Capital Gain on transfers between the holding company and the setp-down subsidiary is exempt u/s 47(iv) of the Act [Emami Infrastructure Ltd. Vs. ITO (ITAT Kolkata)]
————————————————————–
GST Updates – 26th GST Council Meeting held on 10th March 2018
• The present system of filing GSTR-3B is extended for another 3 months i.e. till June, 2018.
• E-way bill for movement of goods between states will be implemented from April 1, 2018
• For Intra-state goods, e-way bill will be rolled out in a phase manner from April 15 to June 1, 2018.
• The liability to pay tax on Reserve charge basis has been deferred till 30.06.18
• The provision of TDS u/s 51 of the CGST Act and TCS u/s 52 of the CGST Act shall remain suspended till 30.06.18
————————————————————–
Squaring-off loan by way of allotment of equity shares is a usual business practice and a part of routine corporate debt restructuring exercise and hence cannot be held as violation of provisions of Sec. 269T. Penalty levied u/s 271E is to be deleted. [M/s. Arkit Vincom Pvt. Ltd. V ACIT (Kolkata ITAT)]
————————————————————–

Re-assessment notice issued in name of erstwhile private limited company now converted into LLP would not invalidate re-assessment proceedings as same was not a jurisdictional error, but an irregularity and procedural/technical lapse which could be cured under section 292B. [Sky Light Hospitality LLP v ACIT, Circle 22(1), New Delhi.B (SC)]
————————————————————–
GST Update
LUT will be deemed to be accepted as soon as ARN is generated.

If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter’s LUT will be liable for rejection and deemed to have been rejected ab initio.
————————————————————–
Seconded expatriate employees operating from the premises of Indian subsidiary and activities thereof were related to the business of Indian subsidiary, then such activities of expat employees would not constitute a PE under Article 5(4) of Indo-South Korea DTAA. [Samsung Electronics Co. Ltd. v DCIT (SC)]
————————————————————–
“CBDT, through The Gazette of India dated 3rd April 2018, notifies New ITR Form for AY 2018-19.”
————————————————————–
If an entity has complied with the conditions attached to the Government scheme under which the entity is entitled to incentive, such incentive receivable will fall under the definition of financial instruments and will be accounted for as a financial asset per Ind AS 109 – ITFG Bulletin 15
————————————————————–
If an assessee acquires shares from borrowed funds for purpose of making long term investments, the expense incurred under the head Finance Charges would not deductible u/s 36(1)(iii) since these charges are not incurred wholly or exclusively for purpose of business. [ Asia Investments(P) Ltd. V. ACIT (ITAT Mumbai)]
————————————————————–
Non-occupancy charges received by co-operative societies from its members and used for mutual benefits would be governed by doctrine of Mutuality and thus not exigible to tax [Income Tax Officer, Mumbai V. Venkatesh Premises Co-operative Society Ltd. (SC)]
————————————————————–
GST Update

• Offline tool of Form GSTR 1 has been modified to allow taxpayer to delete more than 2500 invoices at one go.

• Taxpayers can declare their opening stock and related ITC claim on additional HSN stock line items not declared in Form GST TRAN-2 of July 17, while furnishing form GSTR TRAN-2 for the month of August, 2017 onwards.
————————————————————–
Capital gain from penny stock cannot be assessed as unexplained cash credit u/s 68 on the basis of information from investigation department, if the assessee has produced sufficient documents and AO has not found any fault in it. [Meenu Goel vs. ITO (ITAT Delhi)]
————————————————————–
In case where jurisdictional authority is yet to be assigned tax payer may file its Refund application either with the Central or State tax Department.
————————————————————–
A payer cannot absolve himself from being assessee in default & consequences flowing from Sec 201(1) & 40(a)(ia) for TDS default if recipient doesn’t pay tax on income received by him from payer even for reason of a loss return. [Promain Ltd. V. DCIT (ITAT Delhi)]
————————————————————–
Section 14A r.w.r. 8D will be applicable in case of exempt dividend income from shares held as ‘strategic investment’ and ‘stock-in trade’. The dominant purpose test is not relevant to trigger this section. [Maxopp Investment Ltd vs. CIT (SC)]
Interest accrued on account of deposit of share application money is not taxable income u/s 56 of the Act. [CIT vs. Shree Rama Multi Tech Ltd (Supreme Court)]
————————————————————–
Payment to discharge contractual obligation to indemnify excise department couldn’t be held as penal in nature and to be allowed u/s 37(1). [Rajasthan HC – PCIT, Jaipur-II vs. Agribiotech Industries Ltd.]
————————————————————–
MCA has further extended the due date for filing Form AOC 4 XBRL using Ind AS for the F.Y. 2016-17 without additional fee up to 31st May, 2018 from its previous extended date 30th April, 2018.
————————————————————–
As a targeted amendment, MCA has announced that very soon the Companies (Registration Offices and Fees) Rules, 2014 shall be amended to levy additional fee of Rs. 100/- per day for late filing of Annual Return and Financial Statements under Companies Act, 2013. Once notified, the said fee shall become payable in respect of Form 23AC, 23ACA, 23AC XBRL, 23ACA XBRL, 20B, 21A, MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS.
————————————————————–
New features on GST portal :
Taxpayer has now been provided with the facility of searching details of tax official on GST Portal

Taxpayers Guide related to Consolidated E-waybill :
A transporter can generate the consolidated e-way bills for movement of multiple consignment in one vehicle of various consignor and consignees.
————————————————————–
Delhi HC holds one time royalty payment under Trade Mark License Agreement deductible as revenue expenditure, holds that no enduring benefit conferred on assessee. [M/S HILTON ROULUNDS LTD v CIT (Delhi HC)]
————————————————————–
Draft Valuation Standards are issued by the Valuation Standards Board of ICAI, for public comments. These standards set out the practices and procedures which are generally accepted internationally having regard to prevailing legal framework, procedures and practices in India and provide a benchmark to the professionals to ensure uniformity in approach and quality of valuation output. ICAI would recommend to Government, the Insolvency and Bankruptcy Board of India (IBBI) and the Registered Valuers’ Organisations to adopt the valuation standards formulated by ICAI.
————————————————————–
The applicability of sec. 14A does not hinge on the actual earning of the tax-exempt income and circular 05/2014 (Clarification regarding disallowance of expenses under section 14A of the Income-tax At in cases where corresponding exempt income has not been earned) is in consonance with the law as explained in case of CIT v. Walfort Share & Stock Brokers P. Ltd. [2010] 326 ITR 1 (SC). [ITAT Amritsar- Lally Motors India (P.) Ltd v The Pr CIT-2, Jalandhar] (Apex Court)
————————————————————–
Amendment in section 68 of the Act with respect to ‘Source to source’ rule is prospective in operation and could not be applied to assessment prior to AY 2013-14. [PCIT-13, Mumbai vs. Veedhata Tower Pvt.Ltd. (ITAT Mumbai)]
————————————————————–
In case prosecution order is issued by Commissioner to proceed against assessee for depositing amount deducted as TDS in account of Govt. belatedly with Interest, HC quashed writ against the said order since criminal proceedings started against the Company. [Indo Arya Central Transport Ltd. V CIT (TDS),Delhi (HC, Delhi)]
————————————————————–
MCA has amended Schedule I of Companies Act, 2013. Accordingly every share certificate issued by the Company shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two Directors or by a Director and the Company Secretary, as the case may be. If the Company has a common seal, such seal shall also be affixed.
————————————————————–
Ministry of Finance has clarified that PAN and TAN mentioned in the Certificate of Incorporation issued by MCA shall be treated as sufficient proof of PAN and TAN for the Company Assessee removing the requirement of issuing PAN in the form of a laminated card.
————————————————————–
MCA has clarified that the requirement of filing in XBRL format shall remain applicable on such Companies which have filed their financial statements in XBRL format, even if the Company has moved out of any of the mandatory condition for XBRL filings. Also, Companies which have filed their financial statements under Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011, shall continue to file their financial statements and other documents, though they do not fall under the class of Companies specified therein.
————————————————————–
Taxpayers Guide related to Waybill
o A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle
o The maximum distance limit to generate e-way bill has been increased to 4000 kms from earlier limit of 3045 kms
o The taxpayer can upload his customers, suppliers and product details into e-way bill system by preparing the data as per the format provided in the tools option in the portal and upload in the master option after logging in
————————————————————–
IASB issues Exposure Draft to amend IAS 8 to introduce a new threshold for voluntary changes in accounting policy that result from an agenda decision published by the IFRS Interpretation Committee. The proposed threshold would include consideration of the expected benefits to users of financial statements from applying the new accounting policy retrospectively and the cost to the entity of determining the effects of retrospective application.
————————————————————–
An institute, though registered u/s 12AA, would still be taxed on income which has not been applied in accordance with Sec 11, or in respect of which Sec 13 comes into play & the registration u/s 12AA is purely based on objects of Institution. [B.S.A. College V. CIT(E), Lucknow (ITAT Agra)]
————————————————————–
Freight payment to shipping companies (Non-Resident), subject to provision of Section 172, would not attract provisions of Section 194C or Section 195. [Steelco Gujarat Ltd. v. Assistant Commissioner of Income Tax, Circle-4, Vadodara (ITAT AHMEDABAD BENCH ‘I’)]
————————————————————–
Payment by Prasar Bharti Doordarshan Kendra to accredited advertising agencies for securing more business is in the nature of commission and liable for TDS u/s 194H [[2018] 92 taxmann.com 11 (SC)]
To initiate reassessment proceedings of deceased person, notice u/s 148 has to be served on all legal representatives. [Shanta Kapoor Vs. ACIT-1, ITAT Agra]
————————————————————–
• E-way Bill is applicable in Odisha from 23rd May, 2018
• GST Intra-state E-way bill is compulsory from 3rd June 2018 across India.
• Damages paid for cancellation of contract will attract 18% GST
• Frequency to change return frequency for normal taxpayer is now on GST Portal.
• CBIC fixes monetary limit of Rs. 2.5 lakh for appeal filing with Commissioner (Appeal).
————————————————————–
– The due date to file GSTR 3B for the month of April 18 has been extended to 22nd May 2018.

– In case one e-way bill go through multiple modes of trasportation (say road, rail, ship, air) before reaching destination, the e-way bill can be updated with the new mode of transport by using “Update Vehicle Number” with the new mode on completion of each such previous mode of transport.
————————————————————–
• Roll out of E-way bill system for intra-state movement of goods in the States of Assam from 16th May, 2018 and Rajasthan from 20th May,2018.

• Waiver of late fee is applicable only for such registered persons who have filed the declaration in FORM GST TRAN-1 on or before the 10th day of May 2018 and the return in FORM GSTR-3B for each of such months, on or before the 31st day of May 2018.
————————————————————–
Under Rule 34(5) of the Tribunal Rules read with Shivsagar Veg. Restaurant 317 ITR 433 (Bom) & Otters Club (Bom), orders have to be passed invariably within three months of the completion of hearing of the case. The delay is incurable. Even administrative clearance cannot cure the delay. Such decisions rendered after 3 months reflect a mistake apparent from the record and have to be recalled and the appeals heard afresh. [Cromption Greaves Limited v CIT-6 (ITAT – Mumbai)]
————————————————————–
Claim of provisions for bad debts u/s 36(1)(iii) cannot be disallowed merely by issuing an intimation u/s 143(1)(a). [Bajaj Auto Finance Ltd. vs. CIT, Pune (HC Pune)]
————————————————————–
Reassessment proceedings couldn’t be quashed merely because recorded reasons were additionally approved by Commissioner (CIT). [Mayurbhai Mangaldas Patel V. ITO (HC Gujarat)]
————————————————————–
Where assessee is required to pay amount to a party in relation to a business transaction pursuant to Court order, same would be allowed as business loss. [Principal CIT V. Girishkumar Ramanlal Chokshi & Bros. (Gujrat HC)]
————————————————————–
SEBI permits Stock Exchanges to set trading hours in the Equity Derivatives Segment between 9:00 A.M. and 11:55 P.M. with effect from 01/10/2018. In case Stock Exchanges are desirous of extending the trade timings beyond the extant trading hours, prior approval from SEBI shall be required.
————————————————————–
MCA notified Companies (Registration Offices and Fees) Second Amendment Rules, 2018 effective from 07/05/2018. Accordingly, where due date of filing Annual Return and Financial Statements under Companies Act, 2013 expires after 30/06/2018, additional fee of Rs. 100/- per day shall become payable in respect of Form MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS. In all other cases, where the belated Annual Return or Financial Statements which were due to be filed under Companies Act, 1956 (Form 23AC, 23ACA, 23AC XBRL, 23ACA XBRL, 20B, 21A) or Companies Act, 2013 (Form MGT-7, AoC-4, AoC-4 XBRL, AoC-4 CFS), additional fee as per the applicable slab for the period of delay up to 30/06/2018 along with Rs. 100/- per day w.e.f 01/07/2018 shall become payable.
————————————————————–
The total number of APAs entered into by CBDT has gone up to 220, which, inter alia include 20 Bilateral APAs.
————————————————————–
– TRAN-2 has to be filed at the end of each of the six tax periods only when taxpayer has filed the GST TRAN-1 and also filed valid return of that tax period. There is no option for revision or amendment of TRAN-2. IT can be filed only once for once tax period.
– The last date of file GST TRAN-2 is 30th June 2018
————————————————————–
Delhi HC sets aside ITAT order passed u/s. 254(2) of the Act and rejected ITAT’s view that an order directing early hearing to Department is merely an administrative order. Such view of ITAT is contrary to its own ruling in Olympia Paper & Stationery Stores case wherein it was held that the Tribunal must pass the judicial orders, and not administrative orders, for expeditious and out of turn hearing of any appeal or application. [DR. Prannoy Roy v The DCIT & ORS (Delhi HC)]
————————————————————–
Rule 11UA allows the assessee the right to adopt the method of his choice for valuing shares (DCF, NAV etc). The AO has no jurisdiction to insist that the assessee should adopt only a particular method for determining the value of the shares [DCIT vs. Ozoneland Agro Pvt. Ltd (ITAT Mumbai)]
————————————————————–
Discount, allowed on the products by a company to its distributors, constitute the nature of Commission and attracts TDS u/s 194H. (Tata Teleservices Ltd. V. Income Tax Officer (ITAT Delhi Bench E)
————————————————————–
Highlights of 27th GST Council Meeting held on 04.05.2018:

o As per new Single return plan (to be effective after 6 month),all taxpayers excluding a few exceptions like composition dealer shall file one monthly return.

o Return shall be simplified also by reducing the content/information required to be filled in the return.

o Post the new return going live, provisional credit can be claimed by the return preparers in the transitional phase of 6 months based on self-calculations.
————————————————————–
Right to file appeal before Commissioner (Appeals) not to be foreclosed on ground of limitation just because Appeal was filed before Ayakar Sevakendra inadvertently. [GRD Trust V. DCIT(E), Coimbatore (HC Madras)]
————————————————————–

————————————————————–
• No e-way bill required if consignment value is upto 1,00,000/- in respect of movement of goods originating and terminating with in the state of Delhi (Intra – state movement but without passing through any other state)

• No e-way bill is required irrespective to value of goods when sale is from the registered business place of a taxable person to an unregistered end consumer and movement is accompanied by an invoice.
————————————————————–

• Various certificates like Renewable Energy Certificates (RECs). Priority Sector Lending Certificates (PSLCs) etc. are taxable at a rate of 12%

• If the goods transit through a second State while moving from one place in a state to another place in the same State, an e-way bill is required to be generated.
————————————————————–

The words ‘concealment’ or ‘inaccurate particulars of income’ have to be read strictly before levying penalty u/s 271(1)(c) of the Act. AO should give finding as to what particulars of income has been concealed or what particulars of income are inaccurate. [CIT vs. L&T Finance Ltd (Bombay High Court)]
————————————————————–
A non-resident assessee is entitled to claim deduction of an amount equal to 5% of the adjusted total income as expenditure in the nature of Head Office (HO) Expenses. The face that the expenses are not debited in the Profit & Loss account or the books of account is irrelevant. The entries in the books of account are not conclusive. [ITAT Delhi-Ernst & Young Ltd. v ACIT (International Taxation)]
————————————————————–
On issuance of Ind AS 115, Revenue from Contracts with Customers vide the Companies(Indian Accounting Standards) Amendment Rules, 2018 , Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable), which had been issued by ICAI based on principles of Ind AS 11 and IND AS 18, stands withdrawn.
————————————————————–
If the AO wants to rely upon documents found with third parties, he has to provide the evidence to the assessee & grant opportunity of cross-examination following the principal of natural justice [CIT vs. Sunita Dhadda (Supreme Court)]
————————————————————–
If the assessee has paid consent charges/ settlement charges to SEBI under SEBI guidelines to avoid long drawn litigations, those would be considered as business expenditure as per section 37(1) of the Act. [DCIT V. Anil Dhirajlal Ambani (ITAT Mumbai]
————————————————————–
• Due date to file GSTR – 6 by ISD for the period July 17 – June 18 extended to 31st July 18.
• It is clarified by CBIC that any interest/delayed payment ch. Charged for delay in payment of brokerage amount/settlement obligation / margin trading facility shall be leviable to GST.
• Intra – State E-way bill rolled out in Chhattisgarh, Goa, Jammu & Kashmir, Mizoram, Odisha & Punjab w.e.f 1st June 2018
————————————————————–
No additions u/s 69A on excess Jewellery found during search if there was custom to gift Jewellery in family. [Vibhu Aggarwal Vs. DCIT (ITAT-Delhi)]
————————————————————–
If the assessing officer reopens the case on the basis of information received from another assessing officer without further inquiry, it means he has proceeded “mechanically” and “without application of mind”. If the CIT does not give reasons while according sanction, it implies that he has also not applied his mind. Both render the reopening void. [Sunil Agarwal Vs. ITO (ITAT-Delhi)]
————————————————————–
The Task Force constituted by Government of India, to draft a new direct tax law, has been given an extension of 3 months to submit its report. Initially the task force was required to submit its report within 6 months i.e. by May 22, 2018.
————————————————————–
Non-resident OIDAR service providers need to file return in Form GSTR-5A compulsorly even if there is no business activity in the tax period only after making full payment of taxes and other liabilities.
————————————————————–
In case an assessee claims depreciation on non-existent assets, penalty u/s 271(1)(c) would be levied for filing inaccurate particulars of income. [Sundaram Finance Ltd. Vs. ACIT (HC Madras)]
————————————————————–
ITAT says Google India should pay tax on advertisement revenue sent to parent.
————————————————————–

• CBIC to observe 3rd Refund fortnight from 16.07.18 to 30.07.18 to clear pending refunds

• Form GST ITC 03 is required to be filed where taxpayer has opted for composition scheme or goods or services or both supplied by him becomes wholly exempt or in case registration has been cancelled

• Taxpayer has to pay ITC availed in respect of inputs held in stock/ semi-finished/ finished goods held in stock or capital goods/ plan & machinery
————————————————————–
With a motive to reduce the litigation on Income-tax matters the CBDT has sharply increased the threshold limit for filing of appeal before ITAT, High Courts and Supreme Courts to Rs. 20 lakhs, Rs. 50 lakhs and Rs. 1 Crore respectively.
————————————————————–
If the alleged share applicants do not appear before the AO pursuant to the s. 131 summons and the documentation is inadequate, it is a “completely bogus claim”. The assessee cannot argue that the AO should have made inquiries from the AO of the share applicants as to their credit-worthiness. [J J Development Pvt. Ltd. Vs. CIT (HC, Kolkata)]
————————————————————–
“Interest paid to New Okhla Industrial Development Authority (NOIDA) will not attract TDS provision under section 194, as NOIDA is an organization established under a State Act. [CIT vs. Canara Bank (SC)]”
————————————————————–
While “res judicate” does not apply to income-tax matters, the principles of consistency does. If the Revenue has accepted a practice and consistently applied and followed it, the Revenue is bound by it. The Revenue can change the practice only if there is a change in law or change in facts and not otherwise. [PCIT-8 v M/s. Quest Investment Advisors Pvt. Ltd (Mumbai HC)]
————————————————————–
While computing Capital gains on sale of shares kept under Portfolio management scheme (PMS), assesse could not claim deduction of consultancy fees/ PMS fees as the same neither fell under category of transfer fee, nor cost of acquisition/ improvement. [Mateen Pyarali Dholkia V. DCIT (ITAT Mumbai)]
————————————————————–
The parent being is an investment entity is required to measure its investments in its subsidiaries (except for entities covered under paragraph 32 of Ind AS 110) at fair value through profit or loss in its consolidated financial statements as per the requirement of Ind AS 109. Further, such investment entity is required to account for these investments in the similar way in its separate financial statements as they have been accounted for in consolidated financial statements. – Educational material on IND AS 27.
————————————————————–
• GST on Reverse Charge Mechanism (RCM) u/s 5(4) of IGST / 9(4) of CGST w.r.t procurement of suppliers from unregistered persons has been deferred till 30.09.2018.

• Banks using third party ATM’s, Business Correspondents (BC) or third party warehouses, are not required to include such third party places in their GST registration.
————————————————————–
• A tax payer can apply for revocation of cancelled Registration certificate on GST portal.

• Once approved, the taxpayer’s GSTIN status will be changed from Inactive to Active w.e.f. the effective date of cancellation.
————————————————————–
• E-way bill system for intra-state movement of goods has been implemented in Delhi w.e.f 16th june 2018

• A tax payer can apply for revocation of cancelled Registration certificate on GST portal.

• Once approved, the taxpayer’s GSTIN status will be changed from Inactive to Active w.e.f. the effective date of cancellation.
————————————————————–
Where the transactions between the shareholder & company were in nature of current account, that is, business transactions, the provisions of deemed dividend as per Sec 2(22)(e) of the Act would not be applicable. [CIT V. Gayatri Chakraborty (HC-Calcutta)]
————————————————————–
BSE has issued a circular to Listed Companies with respect to enforcement of SEBI Orders in the matter of appointment of Directors. Accordingly, all Listed companies and its Nomination Committees while considering a person for appointment as Director, shall verify that the said person is not debarred from holding the office of Director pursuant to any SEBI order and shall specifically affirm the same to the Stock Exchange while making Corporate Announcements. Further, in case an existing Director is restrained from acting as a Director, he shall voluntarily resign with immediate effect, failing which the listed entity shall initiate the process of removal of such Director under Companies Act, 2013, and inform the Exchange about the same.
————————————————————–
Legal notice or messages sent through WhatsApp messaging app are valid legal evidence under law, and the blue tick over the messaging app is a valid proof that the respondent has accepted the communication. [SBI Cards & Payment Services Pvt. Ltd vs Rohidas jadhav (Mumbai HC)]
————————————————————–
Business transactions between assessee (substantial shareholder cum director) and the company were intermingled and the outstanding balances occurred due to commercial exigencies such as regular trading business and consistent services rendered by assessee. CBDT circular 19/2017 shall be applied which specifically excludes trade advances arising out of commercial transactions from the purview of Sec. 2(22)(e). [The ACIT v Smt. Rathinam Thirupathiswamy (ITAT Chennai)]
Where AO did not find that assessee had incurred any expenditure which was directly attributable to investment made in partnership firm for earning exempt income under section 10(2A), no disallowance could be made under section 14A [Hon’ble Mumbai ITAT in case of Wadhwa Residency (P.) Ltd. Vs. Additional CIT, Mumbai]
————————————————————–
Supreme court dismissed SLP against HC ruling that section 14A cannot be invoked where no exempt income was earned by assessee in relevant assessment year. [CIT, (Central) 1 vs. Chettinad Logistics (P.) Ltd]
————————————————————–
Beneficiary shareholder shall consider the voting rights on shares held by its nominee or in a fiduciary capacity while evaluating the significant influence over the investee. – Educational material on IND AS 28
————————————————————–
If the AO reopens the assessment by obtaining the sanction of the Commissioner of Income Tax instead of the Additional Commissioner of Income Tax, there is a breach of section 151 which renders the reopening void. [CIT V. Aquatic Remedies P Ltd. (HC-Bombay)]
————————————————————–
“When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the assessee and it must be interpreted in favor of the revenue. Over-Ruling decision passed in 1971 in the case of Sun Export [Supreme Court in Commissioner of Customs (Import), Mumbai vs. Dilip Kumar and Co. & Ors.]
————————————————————–
CBDT extends due date for filing of ITR for taxpayers for AY 2018-19 from July 31, 2018 to Aug. 31, 2018 vide Circular F no. 225/242/2018/ITA II dt. 26.07.18.
————————————————————–
• MCA notified amendment in Companies Accounts Rules requiring additional disclosure in Board Report with respect to maintenance of cost records and compliance with the provisions relating to prevention of sexual harassment of women at workplace.

• MCA notified amendment in Companies Accounts Rules wherein matter for the Board Report of One Person Company and Small Company has been specified.
————————————————————–
CBDT’s OMs dated 29.02.2016 & 31.07.2017 by which AO’s have been directed to grant stay of disputed demand on payment of 20%/ 15% does not fetter the power of the AO & CIT to grant stay on payment of amounts lesser than 15%/ 20%. The AO/ CIT have to deal with the prima facie merits and give reasons for rejection of the stay application. [PCIT v LG Electronics India Pvt Ltd (SC)]
————————————————————–
Re-assessment notice to be set-aside in case underlying reasons for notice weren’t found correct [Haryana Paper Distributors (P.) Ltd. Vs. PCIT (HC-Gujrat)]
————————————————————–
Due date to file GSTR- 6 for ISD for the period from July 17 to August 18 has been extended till 30th September 2018.
————————————————————–
A GSTP cannot submit an application on taxpayer’s behalf. He can only prepare and save the application. To submit the application, taxpayer has to login to the GST portal and file it using EVC or DSC as applicable.
————————————————————–
Notice issued in name of dead person is not enforceable in law there is no statutory obligation on part of legal representative of deceased to immediately intimate death of assesse. [Madras HC in case of Alamelu Veerapan V. ITO]
————————————————————–
• Quarterly returns for business turnover up to Rs 5 crore instead of monthly filings. However, tax payment would be monthly.
• Turnover limit to opt for composition scheme has been recommended to raise from 1 Cr to 1.5 Cr
• In case of non-payment to supplier within 180 days from invoice date, ITC availed need to be reversed , no need to pay interest
• The order of cross utilization of ITC has been rationalized
• Hotels to be taxed on actual tariff basis not on declared tariff
• GST Rates on many goods has been reduced
————————————————————–
Mushroom is not a ‘vegetable’, ‘plant’, ‘fruit’ or ‘animal’ but is a ‘fungus’. Anything which is produced by performing basic operations on the soil is an “agricultural product” and the income therefrom is “agricultural income”. The nature of the product and the fact that it is not a ‘plant’,‘flower’, ‘vegetable’ or ‘fruit’ is irrelevant. The only relevant aspect is whether the production is by performing some basic operations on the soil. [ITAT HYDERABAD – DCIT v M/s. Inventaa Industries Private Limited]
————————————————————–
MCA extended the due date for filing of e-Form DIR-3 KYC from 31 Aug. 2018 to 15 Sept. 2018 without any fee in respect of FY 2017-18.
————————————————————–
Foodstuffs, medicines, medical stores of perishable nature, clothing and blankets imported for thepurpose of donation of relief and rehabilitation of people affected by flood in Kerala have been exempted from whole of custom duty and IGST.
————————————————————–

Where assessee was an agriculturist and owned agricultural land, mere fact that said land had beensold to an industrial unit & had potential to be used for industrial purpose, could not be a determinative factor to treat profit earned by assessee on sale of that land as business income. [HC Guj. in case of Principal CIT V. Heenaben Bhadresh Mehta]
————————————————————–
Reduction in time taken for listing after the closure of the issue to 6 working days from 12 working days for debt securities, NCRPS and SDI.
————————————————————–
To ease the process of issuance of securities on private placement basis through Electronic Book Provider Platform, SEBI on Aug 17 has provided some additional facilities effective from Oct 01.
————————————————————–
Due date to furnish Form GSTR-1 by registered persons with aggregate turnover of more than Rs. 1.5 crore in the preceding/ current financial year, for the periods from July, 2018 to March, 2019 will be 11th day of the month succeeding such month.
————————————————————–
Due date to furnish Form GSTR-1 by registered persons with aggregate turnover up to Rs. 1.5 crore in the preceding/current financial year, for the periods from July, 2018 to March, 2019 shall be as under:
• July – September, 2018 – 31st October, 2018
• October – December, 2018 – 31st January, 2019
• January – March, 2019 – 30th April, 2019
————————————————————–
Due date to furnish Form GSTR-3B for each of the moths from July, 2018 to March, 2019 will be 20th day of the month succeeding such month after discharge his liability towards tax, interest, penalty, fees or any other amount payable.
————————————————————–
If there is no discussion whatsoever by the tribunal of the various case laws cited in the submission filed by the assessee, the order is non-speaking and has to be recalled. [Amore Jewels Private Ltd vs. DCIT (HC-Bombay)]
————————————————————–
An entity should not exclude the appropriation made to mandatory reserves, which is merely appropriation of profits and doesn’t result in reduction of the profit as well as net assets of the associate, from the result of operations of the associate that would be used for the purpose of computing the investor’s share. – Educational material on IND AS 28
————————————————————–

Cash payments exceeding Rs.20,000/- could be made to farmers without attracting any disallowance u/s 40A(3) since this transaction is clearly covered by exemption under Rule 6DD(e)(i). [Principal CIT V. Keshvalal Mangaldas (HC Gujarat)]
————————————————————–

RBI has cancelled licenses of 368 NBFCs till June 2018 for failure to meet the regulatory norms and majority of such NBFCs are those who failed to meet requirement of NOF of Rs. 2cr.
————————————————————–
A cashback of 20% on the GST component will be credited to consumers on the GST component if payment is made digitally though prescribed modes
————————————————————–
Payment of tax under RCM u/s 9 (4) of the CSGT Act has been deferred till 30th September 2019
————————————————————–