Income Tax Law Updates:
Hon’ble High Court held that same question came up for consideration in other decision of Karnataka High Court where after considering the judgment in Elbit Medical Diagnostics Ltd., the Court has come to the conclusion that retainer in service are professional service and issue was answered in favour of the assessee.
Hon’ble High Court held that the assessee had entered into derivative contracts in order to hedge its exchange risk in respect of export proceeds receivable by it in foreign exchange. Forward contracts entered into by the assessee were not by way of trading per se in foreign exchange derivatives.
Hon’ble ITAT held that referral fees paid to doctors and nursing home cannot be allowed as deduction while computing the business income of an assessee. An identical issue was dealt by the Hon’ble Supreme Court in Apex Laboratories (P.) Ltd. vs. DCIT, 442 ITR 1 (SC), wherein, the Hon’ble Apex Court held that gifting freebies, and payment of referral fees etc. is clearly prohibited by law and cannot be allowed as deduction u/s 37(1) of the Act.
Hon’ble Supreme Court held that having gone through the judgment and orders passed by the Tribunal as well contd. as the High Court, we are of the opinion that no error has been committed by the Tribunal and/or the High Court on the chargeability of TDS amount on non-convertible debentures and fixed deposit of the value less than Rs.5,000/-. Both, the Tribunal as well as the High Court have concurrently found that on non-convertible debentures and fixed deposit of the value less than Rs.5,000/-, there shall not be any TDS leviable. We are in complete agreement with the view taken by the Tribunal as well as the High Court. Once, there is no liability to deduct TDS on non-convertible debentures and fixed deposit of the value less than Rs. 5,000/-, there is no question of charging any interest. However, at the same time the issue of whether the levy of the interest was time barred considering Section 201(1) / 201(1)(a) of the Income Tax Act, 1961 has not been dealt with and considered in High Court, we keep the question of law on the aforesaid open.
The Supreme Court of India held that income tax returns do not necessarily furnish an accurate guide of the real income particularly when parties are engaged in a matrimonial conflict. Hence, it is for the Family Court to determine what would be the real income based on a holistic assessment.
Goods and Services Tax Law Updates:
CGST Notification No. 24/2022 – Central Tax Dated 23rd November, 2022
Central Goods and Services Tax (Fourth Amendment) Rules, 2022 – CBIC omitted following GST Rules 122,124,125,134 and 137 vide Notification No. 24/2022 – Central Tax Dated 23rd November, 2022 which are related to National Anti-Profiteering Authority. It amends rule 127 (Duties of the Authority) and inserts and an explanation below rule 137. Rule 122 relates to Constitution of the Authority, Rule 124 relates to Appointment, salary, allowances and other terms and conditions of service of the Chairman and Members of the Authority. Rule 125 relates to Secretary to the Authority, Rule 134 relates to Decision to be taken by the majority and Rule 137 relates to Tenure of Authority.
Hon’ble High Court held that rejecting the refund solely on the inadvertent error that had transpired would be hypothetical and the conclusion of the officer to this effect is thus set aside. Incidentally, the petitioner has also circulated an order passed by the same respondent officer in the case of another assessee by name ‘Shri Shakti Exports’ wherein refund, as sought in similar circumstances has been granted, the officer, taking a lenient view. In light of the discussion as aforesaid, the impugned order is set aside. The officer shall issue the refund within a period of eight (8) weeks from today after satisfying himself in regard to the quantum of refund as on the date of refund of application.
AAR RULING: Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members, not eligible for exemption as mentioned in Entry No. 3 of the Notification Number 12/2017 -Central Tax (Rate), dt 28th June, 2017.
Authority regarding action consequential to issuance of Show Cause Notice and for issuance of recurring SCN in case of an enforcement action initiated by the State authorities against a taxpayer assigned to Centre and vice versa.
Updates from Other Laws:
Kerala High Court held that as Central Bureau of Investigation (CBI) is included in the second schedule to RTI Act, 2005, CBI is not liable to furnish any information. The Central Bureau of Investigation is not liable to provide any information as is sought for by the appellant. As per Section 8(i)(b) of the Act, 2005, any information which would impede the process of investigation or apprehension or prosecution of offenders is exempted from disclosure. So also, as per Section 8(1)(j) of Act, 2005, there shall be no obligation to give information which relates to personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual, unless the Central Public Information Officer or the State Public Information Officer or the appellate authority, as the case may be, is satisfied that the larger public interest justifies the disclosure of such information. It is equally important to note that, the appellant, in fact, is seeking third-party information only for his purpose, which is not permitted.
Letter No. RBI/2022-23/139 FIDD.CO.FSD.BC.No.13/ 05.02.001/ 2022-23 dated 23-11- 2022
Modified Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC) during the financial years 2022-23 and 2023-24. The applicable lending rate to farmers and the rate of interest subvention for the financial years 2022-23 and 2023-24 will be as follows:
Financial Year Lending rate to farmers Rate of Interest Subvention
2022-23 7% 1.50%
2023-24 7% 1.50%
Hon’ble High Court held that petitioner (Wife) cannot be accused for dishonour of the cheque issued by her husband and he (husband) alone can be prosecuted for the same.
Weekly Newsletter Income Tax, GST and Other Law [3rd Week, November 2022] GST Updates, Income Tax Updates, Tax India Updates
