Income Tax Law Updates
Notification/Circular:
Notification No. 54/2022/F. No. 370142/51/2020-TPL(Part III)] dated 27-05-2022
The Central Board of Direct Taxes (CBDT) vide above notification has notified the Faceless Penalty (Amendment) Scheme, 2022. The board has omitted the concept of Regional Faceless Penalty Centres from the Faceless Penalty Scheme 2021. Further, it has been specified that ‘Appeal Units’ and ‘Penalty Review Units’ shall mean the Assessing Officer having powers so assigned by the Board.
Case Laws/Judgement:
Kanchan (Widow) Vs ITO (ITAT Jaipur) Appeal Number : ITA No. 184/JP/2021 Date of Order 06/05/2022
Hon’ble ITAT held that the ld. AO in the second round of litigation admitted the fact that the appellant has made the sales supported by delivery challan and invoice and copy of party’s ledger account. This sale since accepted and the receipt of the sales in cash cannot be considered as an amount of income under the provision of section 68 of the Act. As the credit in the books of account first is sales made as it is evident from the copy of the ledger filed by the assessee thus, the source of money received is clearly proved and there is no rejection of the books produced before the assessing officer. If the sales are accepted to have been made the related cash receipt recorded in the books of account arising out of the said sales is same receipt for which source is sales made. Thus, the separate receipt of cash on account such sales after accepting the cash sales as genuine the receipt does not fall within the purview of section 68 and thus the addition of Rs. 3,19,380/- is required to be deleted.
The hon’ble ITAT held that the assessee has fairly established the fact that the cash deposits are out of sale consideration as recorded in the agreement of sale. In view of the above given facts and circumstances of the case, we are of the view that the cash deposit made by assessee amounting to Rs.2.20 crores are arising out of sale of agricultural land by the assessee’s mother including assessee and hence, this cannot be treated as unexplained cash deposit.
The Hon’ble High Court held that they deems it appropriate to issue strictures to the effect that appropriate departmental action be initiated against the officers and authority concerned of the respodnent-Revenue who are involved in non-consideration of appeal of the petitioner in time as well as for not obeying and considering the judgments of the Apex Court, referred to above as well as the provisions of Section 220(6), 245 of the IT Act and the circulars of the department. The Chief Commissioner of Income Tax, Rajasthan, Jaipur, Udaipur, etc. is directed to apprise about pendency situation and statistics to the Rajasthan State Legal Services Authority, Jaipur so that in the interest of justice, the same can be considered and appropriate correspondences can be made with the higher/appropriate authorities in the larger public interest as illegal recoveries, levy of interest is imposed for the reasons beyond their control. In the case in hand, this Court further deems it appropriate to impose a cost upon the respondents which is quantified to Rs.50,000/- which the respondent-department shall pay itself or if it so chooses, the same may be recovered equally from respondents No.1 & 2 and be deposited with the Rajasthan State Legal Services Authority, Jaipur and assessee in half and half within two months of passing of this order.
Goods and Services Tax Law Updates:
Notification/Circular:
Notification No. 07/2022 – Central Tax dated 26-05-2022
The CBIC vide above notification has amended the Notification No. 73/2017–Central Tax, dated 29th December, 2017 to waive off late fees for delay in filing of Form GSTR-4 of FY 2021-22 from 1st May, 2022 till 30th June, 2022.
Instruction No.01/2022-23-GST-Investigation] Dated: 25th May, 2022: No recovery can be made unless the amount becomes payable in pursuance of an order passed by the adjudicating authority or otherwise becomes payable under the provisions of CGST Act and rules made therein. Therefore, there may not arise any situation where “recovery” of the tax dues has to be made by the tax officer from the taxpayer during the course of search, inspection or investigation, on account of any issue detected during such proceedings. However, the law does not bar the taxpayer from voluntarily making payment of any tax liability ascertained by him or the tax officer in respect of such issues, either during the course of such proceedings or subsequently.
AAR/Case Laws/Judgement:
The ‘Paintings are classifiable under Heading 9701 of the GST Tariff. The provisions of Rule 32(5) of CGST Rules will be applicable to applicant in respect of second hand i.e. used paintings which are purchased by them and then sold. The ‘Paintings are classifiable under Heading 9701 of the GST Tariff. The provisions of Rule 32(5) of CGST Rules will be applicable to applicant in respect of second hand i.e. used paintings which are purchased by them and then sold.
In Re: MH Ecolife E-Mobility Pvt. Ltd. (GST AAR Maharashtra) Date of Order : 25/05/2022
GST exempt on vehicles rented to State Transport Undertakings or Local Authorities. Where the vehicles are rented or given on hire to State Transport Undertakings or Local Authorities are eligible for the said exemption irrespective of whether such vehicles are run on routes, timings as decided by the State Transport Undertakings or Local Authorities and under effective control of State Transport Undertakings or Local Authorities which determines the rules of operation or plying of vehicles.
In re Navi Mumbai Sports Association (GST AAR Maharashtra) Date of Order : 25/05/2022
The following amount collected by the applicant from its members is liable to GST: a. Entrance /Admission fees which forms part of corpus fund b. Annual Subscription fees c. Annual Maintenance fees. The benefit of exemption as per Entry No. 80 of notification 12/2017-CTR dated 28th June, 2017 as amended will be available to the applicant only in respect of services by way of training and coaching in respect of sports viz Football, Basketball, Athletic, Cricket, swimming, Karate and Dance.
Updates from Other Laws:
Notification/Circular:
SEBI Circular No.: SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated May 23, 2022
Circular on Development of Passive Funds: The recommendations of the Working Group and the feedback received from the industry were deliberated in the Mutual Funds Advisory Committee (MFAC). Considering The recommendations of MFAC, the following have been decided.
MCA Circular No. 04/2022 [F.NO. Policy-01/2/2021-CL-V-MCA-(Part-1)] dated 27-05-2022
MCA extends relaxation in paying additional fees in case of delay in filing Form 11 (Annual Return) by Limited Liability Partnerships up to 30th June, 2022.
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