Income Tax Law Updates
Notification/Circulars:
NOTIFICATION NO. 29/2022 dated 12-04-2022
The CBDT has notified ‘The Somnath Temple managed by Shree Somnath Trust (PAN: AAATS9555Q) as a place of historic importance and a place of public worship of renown for the purposes of the section 80G.
NOTIFICATION NO. 30/2022 dated 12-04-2022
The Central Board of Direct Taxes (CBDT) has notified ‘Rajasthan Electricity Regulatory Commission’ a Commission constituted by the State Government of Rajasthan for the purposes of clause (46) of section 10 of the Income-tax Act, 1961. Petition filing fees, licence fees and interest earned on investment of RERC shall be eligible for exemption.
ESI Order/Instruction dated 13-04-2022
Employers are allowed to deposit ESI Contributions for the month of March 2022 up to 30.04.2022 instead of 15.04.2022. Accordingly, the employers are also allowed to file the Return of contribution up to 26.05.2022 instead of 11.05.2022 for the contribution period from October, 2021 to March, 2022.
Case Laws/Judgements:
PCIT Vs Consortium Nussli Comfort Net (Delhi High Court) dated 25/03/2022
The Hon’ble HC held that Section 292BB does not give the power to condone the failure or delay in issuing the statutory notice required to be issued under Section 143(2) of the Act. Section 292BB deals with failure of service of notice and not with regard to failure to issue notice. Further the notice under Section 143(2) of the Act was not issued within the period of six months prescribed for the purpose, jurisdiction assumed by the Assessing Officer under Section 143(3) of the Act was assumed erroneously.
St. Francis De Sales Church Trust Vs ACIT (ITAT Mumbai) Dated 28/03/2022
ITAT condones delay of 41 Months in filing CIT Appeal by holding that it was not clear to the assessee as to what was the nature of the disallowance resulting to a higher demand and the assessed income getting higher than the returned income.” Upon hearing the parties, we find that this is a harsh decision as there is no supposition that everybody is the custodian of law, though ignorance of law is not an excuse for any wrong action. But in the instant case, according to the assessee, it could not realize the effect and consequence of the order passed under section 143(1). This, according to us, is a convincing reason.
Roman Catholic Diocese of Eluru Vs ACIT (ITAT Visakhapatnam) dated 07/04/2022
The Hon’ble ITAT held that the agricultural produce of the Utasamudram and Seethanagaram villages are being used for the feeding of boys and girls in the orphanages. This being a social and charitable activity where the assessee is exploiting his own natural resources, we set aside the order of the Ld. CIT (E) and allow the appeal of the asessee.
HC held that since four years had expired from the end of the relevant assessment year, as provided under Section 151(1) of the Act, it is only the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner who could have accorded the approval and not the Additional Commissioner of Income Tax. On this ground alone, we will have to set aside the notice dated 31st March 2021 issued under Section 148 of the Act, which is impugned in this petition. In view thereof, the consequent orders and notices will also have to go.
Corporate International Financial Service Ltd. Vs ITO (ITAT Delhi) dated 07/04/2022
CIT(A) is obliged to dispose of the appeal on merits: What cannot be permitted in law to be done directly, cannot be permitted to be done indirectly either, as is well settled. In view of the foregoing discussion; it is amply clear that Ld. CIT(A) was in error in dismissing the appeal in limine for non-prosecution of appeal by the assessee. We draw support from order of Hon’ble Bombay High Court in the case of CIT vs. Premkumar Arjundas Luthra (HUF) [2016] 240 taxman 133 for the proposition that Ld. CIT(A) is required to apply her mind to all issues which arise from impugned order before her whether or not the same had been raised by appellant before her; and further, that CIT(A) is obliged to dispose of the appeal on merits.
Goods and Services Tax Law Updates:
AAR/Case Laws/Judgements
The applicant is rendering composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017, to GMIDC, a Government Authority, and such rendering of composite supply of works contract involves predominantly earth work that is, constituting more than 75 per cent of the value of the works contract. Thus, the impugned activity of the applicant is covered under the Sr. No. 3 (vii) of Notification No. 11/2017-CTR dated 28.06.2017 as amended by Notification No. 31/2017 – CTR dated 13.10.2017.
In Re: Venkateshwara Infrastructure JV (MAHARASHTRA-AAR GST) Dated 31-03-2022
The applicant is supplying Composite supply of works contract involving predominantly earth work (that is, constituting more than 75per cent, of the value of the works contract) and such supply is being provided to the Central Government, i.e. Central railways. Therefore, the impugned supply of the applicant is covered under the provisions of Sr. No. 3 (vii) of Notification No. 11/2017 – CTR dated 20.06.2017 and taxable @5%.
In Re: Nagpur Waste Water Management Pvt. Ltd. (MAHARASHTRA-AAAR) Dated 01-04-2022
Tertiary Treated Water (TTW) will be eligible for exemption in terms of entry at SI.No. 99 of the Exemption Notification No. 02/2017-C.T. (Rate) dated 28.06.2017.
In Re: B.P. Sangle Constructions Pvt. Ltd. (MAHARASHTRA-AAR GST) Dated 31-03-2022
The escalated value shall be added to the original value of the contract and the total of the escalated value plus the original value of the contract will be the transaction/taxable value u/s 15 of the Act, on which GST must be discharged by the applicant.
In re Meerabai Tukaram Borade (GST AAAR Maharashtra) Appeal Order dated 01-04-2022
The impugned services of the renting out of immovable properties provided by the Appellant to the Social Justice Department of the Government of Maharashtra will be exempt from the levy of GST in terms of SI. No. 3 of the Notification No. 12/2017- C.T. (Rate) dated 28.06.2017, and accordingly, the TDS provisions made under section 51 of the CGST Act, 2017, will not be applicable therein.
United Spirits Limited Vs Commissioner of Central Taxes (CESTAT Bangalore) Date of Order 11/04/2022
Hon’ble CESTAT held that the fees paid by the appellant to the State Government during the course of manufacture and trading of alcoholic beverages does not amount to provision of any service. Accordingly, no service tax can be demanded. Hence, the impugned order is modified and appeal is allowed with consequential relief, if any.
Updates from Other Laws:
AAR/Case Laws/Judgements
SEBI Circular No.: SEBI/HO/CFD/DIL2/CIR/P/2022/45 dated 05-04-2022
SEBI hikes UPI limits to Rs. 5 lakhs for individual investors applying for public issues: SEBI has decided that all Individual Investors applying in Public Issues where the application amount is upto 5 Lakhs shall use UPI and also provide their UPI ID in bid-cum-application form submitted with either syndicate member or Stock broker, or DP or an RTA. Earlier, the National Payments Corporation of India vide. circular dated 09.12.2021, hiked transaction limit in UPI from Rs. 2 lakh to Rs. 5 lakh for UPI based Application Supported by Blocked Amount in Initial Public Offers(IPOs).
NOTIFICATION dated 08-04-2022 [F. No. C.2/1/2018-SEZ(Part)]
Publication of the Notification for Amendment in SEZ Rules, 2006: These rules may be called the Special Economic Zones (Amendment) Rules, 2022. They shall come into force on the date of their publication in the Official Gazette i.e. 08-04-2022.
NOTIFICATION dated 08-04-2022 [F. No. 1/13/2013-CL-V, Vol.IV]
Companies (Incorporation) Amendment Rules 2022.: These rules may be called the Companies (Incorporation) Amendment Rules, 2022. They shall come into force from the date of their publication in the Official Gazette
The SEBI has notified the SEBI (Issue and Listing of Non-Convertible Securities) (Amendment) Regulations, 2022. The amendment regulations require an issuer to ensure that the secured debt securities are secured by 100% security cover or higher security cover as per the terms of the offer document and/or Debenture Trust Deed sufficient to discharge the principal amount and interest.
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