Income Tax Law Updates
Notification/Circulars:
Notification No. 14/2022 dated 03rd March, 2022
The Central Government approves ‘Sri Shankara Cancer Foundation, Bangalore (PAN: AAHTS5593F)’ under the category of ‘University, College or other institution’ for Scientific Research for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.
Case Laws/Judgements:
Creative Museum Designers Vs ITO (Calcutta High Court dated 10-02-2022)
The Supreme Court in the case of Thanthi Trust has held that the word “education” occurring in Section 2(15) of the Act has to be given a wider meaning and not to restrict it to mean formal school education.
It is held by Hon’ble Supreme Court that as far as the penalty inflicted under the provisions is a civil liability is concerned, mens rea or actus reus is not an essential element for imposing civil penalties. Taking note of the exposition of law on the subject, it is well-settled that mens rea or actus reus is not an essential element for imposing penalty or damages for breach of civil obligations and liabilities.
Goods and Services Tax Law Updates:
AAR/Case Laws/Judgements
In re Smt. Rama Devi Guttikonda (GST AAR Telangana) Order dated 23-03-2022
Obesity is not a disease and hence reduction of weight cannot be seen as a treatment against a disease. Therefore, the product Orlistat which does not fit into the definition “therapeutic or prophylactic” and reduced GST rate benefits.
Luit Developers Private Limited Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
That figures reflected in Form 26AS cannot be used to determine Service Tax liability unless there is any evidence shown that it was due to a taxable service as held in Kush Constructions(supra). Also, figures shown to Income Tax authorities cannot be used to determine Service Tax as held in Synergy Audio Visual Workshop Pvt Ltd(supra) and Deluxe Enterprises.
Updates from Other Laws:
Case Laws/Judgements
Padmanabha Vs State of Karnataka (Karnataka High Court) Dated 09-02-2022.
The Hon’ble HC held that it is the common experience that Commercial Tax office, is considered to be one of the the hubs of corruption. Poor and gullible drivers would fell prey for the illegal demands day in and day out. While an innocent needs to be protected by the court of law, it is the equal duty and responsibility of the court of law to punish a culprit. All efforts must be made that real culprit does not escape from the rigors of law.
Hemalatha Vs Venkatesh (Karnataka High Court) Dated 16/02/2022
That a beneficiary of Section 6 of the Hindu Succession Act cannot claim a benefit by way of partition as regard to joint family properties without reference to the properties already received by her at the time of marriage as dowry/gift or otherwise.
Manual Vs State Of Kerala [Kerala High Court dt. 23-02-2022]
HC held that the only privilege enjoyed by the Admin of a WhatsApp group over other members is that he can either add or delete any of the members from the group. He does not have physical or any control otherwise over what a member of a group is posting thereon. He cannot moderate or censor messages in a group. Thus, the Creator or Administrator of a WhatsApp group, merely acting in that capacity, cannot be vicariously held liable for any objectionable content posted by a member of the group.
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