Sec. 45 – Capital Gains – Firm – Where pursuant to reconstitution of assessee partnership firm, assets of assessee were revalued and revalued amount was credited to partner’s account in their profit sharing ratio, said credit was in effect distribution of increased value of assets to partners, and so the said credits were available to partners for withdrawal, assets so revalued and credited into capital accounts could be said to be ‘transfer’ which would fall in the category of ‘otherwise’ u/s 45(4) and said amount would be chargeable to tax as short term capital gain.
Mansukh Dyeing and Printing Mills v. CIT – [2023] 151 taxmann.com 306 (SC).
CBDT releases guidelines to remove difficulty in implementation of TCS on LRS & Overseas Tour Package.
Circular No. 10 of 2023, dated 30-6-2023.
Sec. 12A – Exemption – Where assessee continued to avail benefit of exemption, solely on the basis of registration in year 1987 till AY 2007-08 and it was never the case on behalf of Revenue and even Commissioner that in earlier years registration was not granted, order of HC holding that assessee would not be entitled to exemption u/s 12A as it failed to produce certificate of registration, was to be quashed and set aside.
Maharishi Institute of Creative Intelligence U.P. Lucknow v. CIT (E) – [2023] 151 taxmann.com 300 (SC).
Penalty proceedings are to be confined only to the ground mentioned in penalty notice. In case, the penalty notice was issued on the ground that assessee ‘had furnished inaccurate particulars of income’, assessee cannot be proceeded against on the ground that it ‘had concealed true and correct particulars of income’. Impugned penalty order not sustainable in law.
Kshema Geo Holdings (P.) Ltd. v. ITO – [2023] 151 taxmann.com 293 (Karnataka).
Sec. 145 – Lease Equalisation Charges – There is no express bar in the Act regarding application of accounting standards prescribed by ICAI, thus, deduction on account of lease equalisation charges from lease rental income can be allowed under the Act on the basis of these accounting standards.
Sehgal Leasing Investments Ltd. v. DCIT – [2023] 151 taxmann.com 252 (Telangana).
Important changes w.r.t Liberalised Remittance Scheme (LRS) and Tax Collected at Source (TCS): 1) No change in rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of mode of payment for amounts upto INR 7 lakh per individual per annum., 2) More time given for implementation of revised TCS rates and for inclusion of credit card payments in LRS., and 3) Increased TCS rates to apply from 1 October 2023.
Press Release, dated 28-6-2023.