Income Tax Law Updates
CBDT Guidelines F. No. 225/ 81/2022/ITA-II dated 26-09-2022
CBDT has issued Guidelines vide F.No.225/81/2022/ITA-II dated September 26, 2022 for compulsory selection of returns for Complete Scrutiny during the Financial Year 2022-23 — procedure for compulsory selection in such cases — regarding.
Hon’ble High Court held that the notice issued to a dead person is not valid. Reliance in this regard can also be placed in the case of Income Tax Officer Ward 1(3)(7), Surat Vs. Durlabhbhai Kanubhai Rajpara [2020] 114 taxman.com 482 (SC). In this case, it was held that a notice issued under Section 148 of the Act against a dead person would be invalid, unless the legal representatives submit to the jurisdiction of the Assessing Officer without raising any objection. Consequently, where the legal representatives do not waive their right to a notice under Section 148 of the Act, it cannot be said that the notice issued against the dead person is in conformity with and with intent and purpose of the Act.
From a reading of the aforesaid observation as well as taking note of contention of the assessee in respect of premium paid to the insurance company cannot be brought to tax subject to the fact that assessee shall not avail deduction u/s 80C of the Act in respect of premium paid towards that insurance policy. Being so, we remit this issue to the file of AO to consider only net amount as discussed above to taxation provided assessee has not claimed deduction u/s 80C of the Act in respect of premium paid on life insurance policy or claimed any deduction u/s 10(10D) of the Act. With this observation, we remit this issue to the file of AO for fresh consideration after hearing to the assessee.
Hon’ble ITAT Chandigarh vide above order held that tax authorities cannot enforce any demand on the deductee if the amount of TDS deducted by the deductor is not deposited with the Government.
Goods and Services Tax Law Updates:
Hon’ble Delhi High Court held that renting of a residential dwelling by a proprietor of a registered proprietorship firm, who rents it in his/her own personal capacity for use as his/her own residence as well as not for use in the course or furtherance of business of his/her proprietorship firm and such renting is on his/her own account and not that of proprietorship firm shall be exempt from GST, is accepted by this Court and all the respondents are held bound by the same.
Subsidised deduction made by the Applicant from the employees who are availing food in the factory/corporate office would NOT be considered a supply under the provisions of Section 7 of CGST Act, 2017.
In Re: Srf Limited …..Appellant GUJARAT-AAR GUJ/GAAR/R/2022/41 Date : 28/09/2022
GST is not leviable on the amount representing the employees portion of canteen and transportation charges, which is collected by the applicant and paid to the Canteen and bus transporter service provider.
Held that since the audit proceedings under Section 65 of the CGST Act was already commenced by the …., it is but appropriate that the proceedings should be taken to the logical end by the …., and the proceedings initiated by the Anti Evasion and Range Office for the very same period cannot be proceeded with any further.
Delhi High Court held that the supplier has to pass on the benefit of rate reduction of GST or the benefit of ITC on every supply. The supplier cannot claim that he has passed on more benefit to one customer therefore he could pass less or no benefit to another customer than the benefit which is actually due to that customer.
Updates from Other Laws:
In terms of GOI Notification F.No.4(25) – W&M/2017 dated October 06, 2017 (SGB 2017-18 Series III – Issue date October 16, 2017) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the first due date of premature redemption of the above tranche shall be October 15, 2022 (October 16, 2022 being a Sunday).
Weekly Newsletter Income Tax, GST and Other Law [1st Week, October 2022] GST Updates, Income Tax Updates, Tax India Updates
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