Public Policy
Current
GSTN Advisory
GSTN issues advisory on time limit for reporting invoices on the IRP Portal.
GSTN Update dated 12-4-2023
Service tax
Service tax – Import of ‘Engineering Design & Drawings’ – CESTAT view that same activity cannot be taxed as ‘goods’ and ‘services’ is absolutely erroneous.
CC, CE & ST v. Suzlon Energy Ltd., 2023-TIOL-35-SC-ST.
Principles of natural justice
Principles of natural justice were not in violation when assessee had no bonafide intention to produce documents.
Debabrata Das v. Addl. Commissioner, Central Goods & Services Tax and Central Excise – [2023] 149 taxmann.com 133 (Calcutta).
Section 6
Section 6 – Test of residence of company u/s 6(3) is where the sole right to manage and control of the company lies, not its domicile or place of registration.
Mansarovar Commercial (P.) Ltd. v. CIT – [2023] 149 taxmann.com 178 (SC).
Section 80-IB
No deduction is admissible u/s 80-IB on the profits earned from DEPB/Drawback Schemes.
Saraf Exports v. CIT – [2023] 149 taxmann.com 145 (SC).
CBDT Notification
CBDT notifies ‘348’ as Cost Inflation Index (provisional) for FY 2023-24.
Notification 21/2023, dated 10-4-2023.
Section 271C
Section 271C penalty cannot be imposed for belated or non-payment of TDS.
M/s US Technologies International Pvt. Ltd. v. CIT – [2023] 149 taxmann.com 144 (SC).
Section 68
Section 68 – SLP dismissed against impugned order of the HC that where assessee had failed to establish genuineness of unaccounted income found in garb of cash sales in its accounts during scrutiny assessment and there was sufficient material on record to show that cash sales were fabricated, Tribunal could not have deleted additions and penalty u/s 271(1)(c) on mere ground that sales tax authorities had accepted books of account and VAT was paid on such cash sales.
J.M.J. Essential Oil Company v. CIT – [2023] 148 taxmann.com 448 (SC).
Section 153C
Amendment to section 153C by Finance Act, 2015 w.e.f. 1-6-2015 (w.r.t. incriminating material pertaining to third party) shall apply to searches conducted before 1-6-2015.
ITO v. Vikram Sujitkumar Bhatia – [2023] 149 taxmann.com 123 (SC).
Section 50
Section 50 – CIT rightly held AO’s order as erroneous & prejudicial to revenue u/s 263 as it allowed payment by company to shareholders under arbitral award as COI in computing capital gains.
CIT v. Paville Projects (P.) Ltd. – [2023] 149 taxmann.com 115 (SC).
Archive
GSTN Advisory
GSTN issues advisory on time limit for reporting invoices on the IRP Portal.
GSTN Update dated 12-4-2023
Service tax
Service tax – Import of ‘Engineering Design & Drawings’ – CESTAT view that same activity cannot be taxed as ‘goods’ and ‘services’ is absolutely erroneous.
CC, CE & ST v. Suzlon Energy Ltd., 2023-TIOL-35-SC-ST.
Principles of natural justice
Principles of natural justice were not in violation when assessee had no bonafide intention to produce documents.
Debabrata Das v. Addl. Commissioner, Central Goods & Services Tax and Central Excise – [2023] 149 taxmann.com 133 (Calcutta).
Section 6
Section 6 – Test of residence of company u/s 6(3) is where the sole right to manage and control of the company lies, not its domicile or place of registration.
Mansarovar Commercial (P.) Ltd. v. CIT – [2023] 149 taxmann.com 178 (SC).
Section 80-IB
No deduction is admissible u/s 80-IB on the profits earned from DEPB/Drawback Schemes.
Saraf Exports v. CIT – [2023] 149 taxmann.com 145 (SC).
CBDT Notification
CBDT notifies ‘348’ as Cost Inflation Index (provisional) for FY 2023-24.
Notification 21/2023, dated 10-4-2023.
Section 271C
Section 271C penalty cannot be imposed for belated or non-payment of TDS.
M/s US Technologies International Pvt. Ltd. v. CIT – [2023] 149 taxmann.com 144 (SC).
Section 68
Section 68 – SLP dismissed against impugned order of the HC that where assessee had failed to establish genuineness of unaccounted income found in garb of cash sales in its accounts during scrutiny assessment and there was sufficient material on record to show that cash sales were fabricated, Tribunal could not have deleted additions and penalty u/s 271(1)(c) on mere ground that sales tax authorities had accepted books of account and VAT was paid on such cash sales.
J.M.J. Essential Oil Company v. CIT – [2023] 148 taxmann.com 448 (SC).
Section 153C
Amendment to section 153C by Finance Act, 2015 w.e.f. 1-6-2015 (w.r.t. incriminating material pertaining to third party) shall apply to searches conducted before 1-6-2015.
ITO v. Vikram Sujitkumar Bhatia – [2023] 149 taxmann.com 123 (SC).
Section 50
Section 50 – CIT rightly held AO’s order as erroneous & prejudicial to revenue u/s 263 as it allowed payment by company to shareholders under arbitral award as COI in computing capital gains.
CIT v. Paville Projects (P.) Ltd. – [2023] 149 taxmann.com 115 (SC).