Income Tax Law Updates
Notification/Circular:
DGIT(S)/ADG(S)-2/STT Filing/2022 Notification No. 2 of 2022 New Delhi, 24th June, 2022
Format, Procedure and Guidelines for submission of Form No. 1, Form No. 2 and Form No. 2A for Securities Transaction Tax (STT)
Case Laws/Judgement:
Hon’ble High Court held that keeping in view the fact that the impugned order and notice have been issued without considering the reply filed by the Petitioner, this Court sets aside the impugned order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act by the Respondent No.1both dated 4th April, 2022 for the Assessment Year 2018-19. The Assessing Officer is directed to pass a fresh reasoned order in accordance with law after considering the reply filed by the Petitioner within eight weeks.
Nitin Madhukar Rathi Vs DCIT (ITAT Pune) ITA No. 272/PUN/2018 Date of Order 13/06/2022
Hon’ble held that in absence of proper evidence Proving Creditworthiness of Creditors additions by AO is justified. They have no creditworthiness to lend such a loan amount to the assessee which was said to have been admitted by the authorized representative on behalf of the assessee. Before us, no evidence submitted in support of the grounds filed and therefore, the order of CIT(A) is justified in confirming the addition.
Hon’ble ITAT held that what was received by the assessee by virtue of MOU is consideration received for transfer of rights in property and thus, same is assessable under the head ‘income from capital gains’. Relinquishment of right in a property is capital gain. The learned CIT(A), after considering relevant facts has rightly held that the Assessing Officer has erred in assessing compensation under the head ‘income from other sources’. Hence, we are inclined to uphold findings of the learned CIT(A) and dismiss appeal filed by the Revenue.
Goods and Services Tax Law Updates:
Notification/Circular:
Notification No. 1/2022–Compensation Cess | Dated: 24th June, 2022
The Central Govt vide above Notification has extended GST Compensation Cess levy extended till 31/03/2026 which was coming to an end on 30th June 2022.
AAR/Case Laws/Judgement:
Hon’ble High Court Held that as per Section 129 of the Central Goods and Services Tax Act, 2017 (in short ‘Act’), the impugned retention of the vehicle is clearly invalid.The provisions of Section 129 provide for the detention and seizure of the vehicle and contents upon condition that an order of detention/seizure shall be passed at the time of detention/seizure, and duly served upon the person transporting the goods.
The National Anti-Profiteering Authority vide above order held that No anti profiteering if project started after GST implementation w.e.f. 01.07.2017. The Applicants could have availed the above benefit only if the above project was under execution/implementation before coming into force of the GST as the Respondent would have been eligible to avail ITC on the purchase of goods and services after 01.07.2017 on which he was not entitled to do so before the above date. Since there is no basis for comparison of ITC available before and after 01.07.2017, the Respondent is not required to recalibrate the price of the flats due to additional benefit of ITC. Hence, the allegations of the above Applicants made in this behalf are incorrect and therefore, the same cannot be accepted.
Updates from Other Laws:
RBI Press Release: 2022-2023/422 dated 24-06-2022
The Reserve Bank encourages cardholders to tokenise their cards for their own safety. Cardholders’ payment experience will be enhanced through an added layer of security by way of tokenisation.
SEBI Circular No.: SEBI/HO/MIRSD/DoP/P/CIR/2022/89 dated 24-06-2022
SEBI has extended the commencement date of validation of KYC records. Earlier the KYC of all the existing and new clients to be done by (Know Your Client) Registration Agency (KRA) within 180 days from July 01, 2022. Now, the same has to be done within 180 days from Aug 01, 2022.
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