Income Tax Law Updates:
CBDT Circular No.24/2022 dated 07-12-2022
CBDT guidelines: Income-tax deduction from salaries during the Financial Year 2022-23 under section 192 of the Income-tax Act, 1961.
CBDT Press Release dated 26-12-2022-Direct Tax Collection
Gross Direct Tax collections for the Financial Year (FY) 2022-23 register a growth of 25.90%; Net Direct Tax collections for the FY 2022-23 have grown at over 19.81%; Advance Tax collections for the FY 2022-23 stand at Rs. 5,21,302 crore as on 17.12.2022 which shows a growth of 12.83%; Refunds aggregating to Rs. 2,27,896 crore have been issued in the current fiscal.
Hon’ble High Court held that the order passed by AO is bad in law, for two reasons- (a) violation of principles of natural justice, i.e. fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; (b) order passed ex parte in nature, does not assign any reasons sufficient even decipherable from the record, as to how the officer could determine the amount due and payable by the assessee. The order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences.
Hon’ble Supreme Court of India held that the Education cess paid by the respondent-assessee would not be allowed as an expenditure under Section 37 read with 40 (a) (ii) of the Income Tax Act, 1961.
Hon’ble ITAT Jaipur held that merely because the Assessing Officer did not write specific reasons for accepting the explanation of the assessee cannot be reason enough to invoke powers under section 263, and non-mentioning of these reasons do not render the assessment order “erroneous and prejudicial to the interest of the revenue”.
Hon’ble ITAT Chennai held that the assessee is entitled for 60% depreciation on UPS and Printers and thus, we direct the AO to allow 60% of depreciation on UPS and Printers as claimed by the assessee.
Kamaldeep Singh Vs ITO (ITAT Amritsar) I.T.A. No. 755/Asr/2017 Date of Order 20/12/2022
Hon’ble ITAT held that the assessment was made by the AO in the wrong hands, as the assessee was power of attorney holder of Sh. Sukhdev Singh who was the owner of the disputed land, as per reasons recorded u/s 147 and as per A.O’s order page-3. It is trite law that No addition can be made in the hands of power of attorney holder and further revenue has not brought on record any material evidence indicating that ownership of the said land belongs to appellant assessee. Therefore, we hold that the assessment order is passed without jurisdiction.
Goods and Services Tax Law Updates:
48th Meeting of the GST Council – 17th December, 2022: The 48th GST Council met under the Chairmanship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via virtual mode in New Delhi.
CGST Circular No. 188/20/2022-GST dated 27-12-2022
Prescribing manner of filing an application for refund by unregistered persons English.
CGST Circular No. 187/19/2022-GST dated 27-12-2022
Clarification regarding the treatment of statutory dues under GST law in respect of the taxpayers for whom the proceedings have been finalised under Insolvency and Bankruptcy Code, 2016 English.
CGST Circular No. 186/18/2022-GST dated 27-12-2022
Clarification on various issue pertaining to GST English.
CGST Circular No. 185/17/2022-GST dated 27-12-2022
Clarification with regard to applicability of provisions of section 75(2) of Central Goods and Services Tax Act, 2017 and its effect on limitation English.
CGST Circular No. 184/16/2022-GST dated 27-12-2022
Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017 English.
CGST Circular No. 183/15/2022-GST dated 27-12-2022
Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19.
Whether mere transfer of monetary proceeds by the IVL India Environmental R&D PVT Ltd (hereinafter referred to as ‘the Applicant’ or “IVL India”) to IVL Swedish Environmental Research Institute Limited (hereinafter referred to as “IVL Sweden”), without underlying import of service will be liable for payment of Integrated Goods and Service Tax under reverse charge mechanism under entry no. 1 of Notification 10/2017 – IGST (Rate) dated June 28, 2017.
AAR RULING: (1). The Rajasthan Housing Board is covered under the definition of “Governmental Authority” as defined in clause (zf) Paragraph 2 vide notification no. 12/2017-Central Tax (Rate) dated 28.06.2017. (2). Further, the services provided by the Rajasthan Housing Board as governmental authority such as permission for building construction, approval of map, permission of additional Floor Area Ratio, leasing of land etc. are exempt as per notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time, under entry specified at S.No. 4 of said notification.
CBIC Notification No. 01/2022-Service Tax Dated 16-12-2022
No service tax is payable under section 66B of the Finance Act, 1994 (32 of 1994), on the “light-dues” collected by the Directorate General of Lighthouses and Lightships under the Lighthouse Act, 1927 (17 of 1927), in the period 01-07-2012 to 30-06-2017.
AAR RULING: The transfer of independent part of business pertaining to “Loan Front” app, a mobile software, qualifies to be a transfer of going concern, and the said activity amounts to “Service by way of transfer of going concern as an independent part” and thus is exempted from GST in terms of Sl.no.2 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended.
Hon’ble High Court held that when Rule 97A of the CGST Rules also permits manual filing restriction in Circular, dated 18.11.2019, seeking refund by electronic mode only may not be proper. In the light of the principles stated in the above decisions, the amounts that were paid by the petitioner furnishing the incorrect details cannot be taken as a tax due to the respondents, legally. When such is the scenario, the respondents cannot contend that the claim, if any, of the petitioner, is barred by limitation. In the light of the constitutional bench decision of the Hon’ble Apex Court in Mafatlal Industries, one cannot enrich themselves under Section 72 of the Contract Act and they are bound to return the amounts which were paid wrongfully. Hence the contention of learned Standing Counsel for the respondents that in view of decision of the Hon’ble Apex Court in VKC Footsteps India Private Limited (seventh supra) the claim of the petitioner is barred by limitation is not tenable. Ergo, it is very clear that the petitioner cannot be compelled to follow the Circular of the year 2019, which debarred the petitioner from manual filing. The petitioner cannot be compelled to do certain things which are impossible to be performed.
Updates from Other Laws:
MCA General Circular No. 11/2022 File No. Policy-17/57/2021-CL-MCA Dated 28.12.2022
In continuation to this Ministry’s General Circular No. 14/2020 dated 08.04.2020 and General Circular No. 03/2022 dated 05.05.2022 and after due examination, it has been decided to allow companies to conduct their EGMs through Video Conference (VC) or Other Audio Visual Means (OAVM) or transact items through postal ballot in accordance with framework provided in the aforesaid Circulars up to 30th September, 2023.
NPS Circular No. PFRDA/2022/40/ASP-EXIT/04 Dated 23-12-2022
Partial Withdrawal for NPS Subscribers:- It is mandatory for all the Government sector subscribers (Central/ State Govt & Central/State Autonomous Bodies) to submit their requests through their associated nodal offices. The subscribers belonging to the voluntary segment of the NPS (All citizens and Corporate) may continue to use the process as mentioned in the Circular no: PFRDA/2021/3/SUP-ASP/3 dt.14.01.2021.
Hon’ble Delhi High Court held that the Section 21 of the Chartered Accountants Act, 1949 does empower the Institute (ICAI) to proceed suo-moto and unhindered by the absence of a written complaint or allegation that may be submitted. A written complaint or allegation in writing cannot, in any manner, be understood to be a pre-requisite or a sine qua non for the initiation of action under Section 21.
Circular-Department of Posts (Financial Services Division):– Payment of maturity /premature/ closure amount of SB/ PPF/ NSS/ SSA accounts into account holder’s Bank Account through ECS outward credit facility – Reg.
Hon’ble ITAT held that when the assessment of shipping bills filed by the appellant has attained finality as department has not filed appeal against the same under section 128 of the Act; classification of goods cannot be questioned subsequently by the customs by way of issuance of show cause notice.
Weekly Newsletter Income Tax, GST and Other Law [December, 2022] GST Updates, Income Tax Updates, Tax India Updates
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