Income Tax Law Updates
ITAT held that merely for not producing the cash creditors before the Ld. AO even when all the necessary documents as required to prove the identity, creditworthiness and genuineness of the cash creditors are furnished by the assessee, cannot be a reasonable basis to make addition for unexplained cash credit u/s 68 of the Act.
That section 194C is not applicable on disbursement of Fare by assessee to the Driver, the discussion around section 194-O is purely academic. Be that as it may, in our view, there is no contract/ sub-contract between the assessee and the Driver under which the Driver provides any transportation services either to assessee or to any Rider on behalf of assessee, for which the Driver is paid by assessee. The contract for transportation services is between the Driver and the Rider and the assessee only facilitates the entire process in the capacity of an “aggregator”. Accordingly, the AO and the CIT(A) erred in concluding that the assessee was providing transportation services which was sub-contracted to the Driver and consequently the assessee was liable to deduct tax at source while disbursing Fare to the Driver.
Hon’ble ITAT Delhi held that by relying upon the Judgement of Hon’ble Supreme Court on the issue of Royalty observed that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/ suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements are not the payment of Royalty for the purpose of copyright in the computer software, and the same do not give rise to any income taxable in India.
Hon’ble ITAT held that for income in the nature of windfall gain/unexpected income under other heads of income, provisions of S. 234C (1) shall not apply to any shortfall in the payment of the advance tax due on such income if the same is of the nature which can’t be foreseen by the assessee so as to enable him to estimate such income for the purpose of payment of advance tax.
We have considered the facts and circumstances of the case and gone through the entire case laws and we are of the view that the issue is covered in favour of the assessee and against Revenue that no disallowance of expenses can be made in respect of exempt income by invoking the provisions of s. 14A of the Act r/w Rule 8D of the Rules while computing book profit u/s. 115JB of the Act. Since, the issue is covered by Special Bench of this Tribunal in the case of ACIT Vs. Vireet Investment Pvt. Ltd., supra, and by the decision of Hon’ble Karnataka High Court in the case of Sobha Developers Ltd. v. DCIT, LTU, Bangalore, supra, we quash the revision order passed by PCIT and allowed the appeal of the assessee.
Goods and Services Tax Law Updates:
CBIC Circular No: 20/2022-Customs Dated: 22nd September, 2022
Classification of goods that undertake lifting and handling functions and have mobility as a function – regarding.Various references have been received in the Board regarding the classification of the goods referred as Truck Cranes or All Terrain Cranes. These are essentially goods that are used in handling and lifting heavy loads and have mobility as a function.
High court vide above Judgement held that payment of 10% mandatory pre-deposit for filing appeal u/s. 107(6) of CGST Act 2017 can be made by assessee from Electronic credit ledger and it is not mandatory that pre-deposit should have been made from the cash ledger. The pre-deposit has been made by the assessee before the Appellate Authority, and the Appellate Authority shall not insist the Firm to make deposit through electronic cash ledger and shall proceed to decide the appeal on merits strictly in accordance with law.
Updates from Other Laws:
RBI Press Release: 2022-2023/927 dated 23-09-2022
Premature redemption under Sovereign Gold Bond (SGB) Scheme – Redemption Price for premature redemptions due on September 29 and 30, 2022 (SGB 2016 Series II and SGB 2016-17 Series II): In terms of GOI Notification F.No. 4(19)-W&M/2014 dated March 04, 2016 (SGB 2016 Series II – Issue date March 29, 2016) and GOI Notification F.No. 4(7)-W&M/2016 dated August 29, 2016 (SGB 2016-17 Series II – Issue date September 30, 2016) 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 due date of the fourth and third premature redemption of the above tranches shall be on September 29, 2022 and September 30, 2022 respectively.
Weekly Newsletter Income Tax, GST and Other Law [3rd Week, September 2022] GST Updates, Income Tax Updates, Tax India Updates
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