Income Tax Law Updates:
Dharmista Mehta Vs ITO (ITAT Mumbai) ITA No. 1885/Mum/2017 Date of Order : 12-10-2022
Hon’ble ITAT held that the assessee in the case before us is entitled to claim exemption under section 54 to the extent she had invested towards the purchase of new residential property under consideration upto the date of filing of belated return under section 139(4) i.e. 31.03.2014. In the case before us assessee purchased new property well before the deadline given in section 139(4) i.e. 30.04.2013 for Rs. 1,66,74,200/-. Which we find is much in excess of LTCG of Rs. 1,19,45,236/-. We therefore, in terms of our aforesaid observations set-aside the order of the CIT(A) and vacate the disallowance of the assessee’s claim of exemption under section 54 of Rs. 1,19,45,236/- as was sustained by him. 19. In the result, an appeal filed by the assessee is allowed.
PCIT Vs Rishikesh Buildcon Pvt. Ltd. (Delhi High Court) Date of Judgement 17-11-2022
Hon’ble High Court we answer the question of law against the Revenue and in favour of the Assessee by holding that, in the facts and circumstances of the present appeals, the ITAT was correct in law in deleting the penalty imposed by the Additional Commissioner of Income Tax, under Section 271D of the Act, on the ground that the penalty order(s) dated 29th September, 2009, was passed beyond the time period prescribed by Section 275(1)(c) of the Act, the same having been passed after the lapse of six months from the end of the month in which the penalty proceedings were initiated by the AO.
DCIT Vs Ganga Developers (ITAT Mumbai) ITA No. 2328/Mum/2021 Date of Order: 12-10-2022
Hon’ble ITAT held that compensation received in respect of award agreement which has been exempted from levy of income tax as per provisions of Section 96 of that act shall also not be taxable Under the provisions of the income tax act. Section 96 of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (in short RFCTLARR) as well as CBDT circular no.36/2016 dated 25thOctober 2016. Assessee submits that as the compensation has been received under that Act, the amount received is exempt under Section 10(37) of the Act.
Hon’ble High Court vide above judgement held that the refund due to the petitioners shall be processed without any further delay and shall be issued at any rate within a period of 2 months from the date of receipt of a certified copy of this judgement. If the petitioners are entitled to any interest on account of the delayed payment of refund, the same shall also be granted to the petitioners. The Court directed the CPC Unit at Bengaluru to process the refund along with Interest which are due to the petitioners which is not processed due to technical defect.
Goods and Services Tax Law Updates:
Hon’ble High Court held that the initiation of proceedings by under section 73 (1) of the C.G.S.T. Act, 2017 for alleged contravention of the C.E.A. and Finance Act, read with C.C.R. against the petitioner by filing TRAN 1 in terms of Section 140 of the C.G.S.T. Act for transition of CENVAT Credit as being inadmissible under the existing law was beyond his jurisdiction. Consequently the Order in Original dated 30th March, 2022 passed by the being without jurisdiction cannot be sustained in the eye of law.
The petitioner has not received the show cause notice. The show cause notice issued to the driver is not adequate. Therefore, the impugned order is liable to be set aside.
Tube Investment of India Limited (GST AAR Uttarakhand) AR No. 12/2022-23 Dated 24-11-2022
AAR RULING: The nominal amount of recoveries made by the Applicant from the employees who are provided food in the factory canteen is a “Supply” by the applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017. Further, the GST is applicable on both the amount i.e. amount paid to the canteen service provider and also on the nominal amount recovered from the employees.
Updates from Other Laws:
Hon’ble High Court set aside the order of the Additional Special Court for CBI, Chennai and the petitioner was discharged from the prosecution. Hon’ble High Court held Even on a demurrer, on a perusal of Form 15CB, we find that a Chartered Accountant is required to only examine the nature of the remittance and nothing more. The Chartered Accountant is not required to go into the genuineness or otherwise of the documents submitted by his clients.
RBI Press Release: 2022-2023/1275 dated 29-11-2022
The Reserve Bank announces the launch of the first pilot for retail digital Rupee (e₹-R) on December 01, 2022. As per RBI, Digital Rupee (e₹) is the legal tender issued by a Central Bank in a digital form. It is the same as a fiat currency and freely convertible against the physical currency already in circulation. One of the major differences between CBDCs and physical currency is that the former will have an infinite life as it cannot be damaged or lost in any physical form
Clarification on encashment of National Savings Certificates (IX Issue) — Reg. (i). Though NSC IX Issue is a discontinued scheme, NSC IX Issue certificates may be discharged / encashed / closed in any Departmental Post Office, following the procedures prescribed in Chapter 13 of POSB CBS Manual Volume (Corrected up to 31.12.2021). (ii) NSC IX Issue certificates which have already been discharged in the SOs following the prescribed procedures, shall be treated as regular.
Weekly Newsletter Income Tax, GST and Other Law [4th Week, November 2022] GST Updates, Income Tax Updates, Tax India Updates
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