Income Tax Law Updates:

Notification/Circulars

Notification No. 11/2022/F. No. 370133/16/2020-TPL

The Central Government hereby makes the amendment in the notification of the Government of India, Ministry of Finance (Department of Revenue), Number 89 of 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 3952(E), dated the 2nd November, 2020.

Notification No. 10/2022 dated 21st January, 2022

Certain Income of National Skill Development Corporation, will be exempted under clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961).

Notification No. 11/2022 dated 21st January, 2022

Certain Income of West Bengal Electricity Regulatory Commission’, Kolkata, will be exempted under clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961).

Income Tax Case Laws:

Shriram Retail Holdings Pvt. Ltd. Vs DCIT (ITAT Chennai)

That loss suffered by the assessee on account of forfeiture of share warrant would be deductible Short-Term Capital Loss.

I.T.O. Vs Bhagchand Jain (ITAT Jaipur) 

Disallowance of depreciation on vehicles is also not warranted with the facts and merits of the case as depreciation being a statutory allowance and hence cannot be restricted on the basis of personal use. 

MMG Constructions LLP Vs Union of India (Karnataka High Court)

Allowing less than 24 Hours to respond to SCN is Violation of Principles of Natural Justice. Accordingly, we set aside the assessment order and the demand notices. The jurisdictional Assessing Officer issued the notice dated 28.09.2021 under section 142(1) of the Act, calling upon the petitioner to furnish the documents and information on or before 29.09.2021 at 4.00 p.m.

Goods and Services Tax Law Updates:

AAR/Case Laws/Judgements

In Re Shree Dipesh Anilkumar Naik (Gujarat AAAR order dated 22-12-2021)

Gujarat AAAR confirms 18% GST on sale of developed plots: In the present case, the appellant is the owner of the land, who develops the land/gets the land developed with an infrastructure such as Drainage line, Water line, Electricity line, Land leveling etc. as per the requirement of the approved Plan Passing Authority (Jilla Panchayat) and thereafter, sells such developed land as plots. 

In re Corbett Nature Reserve (GST AAR Uttarakhand) 

Aahana Naturopathy Centre not eligible for GST Exemption: The exemption at Entry No. 74 of Exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is applicable to services falling under the Heading 9993.

The facilities of Ayurveda (the ancient Indian art of healing), Nature Cure (drugless cure), Yoga (Mind Body balance), Western Spa therapies (body detox) and multitude of relaxing therapies and that the therapies are provided under the guidance of Wellness experts in a hygienic, eco friendly and luxurious environment and that the time-tested holistic therapies not only guide to preserve health and cure disease but also promote sound sleep and reduce the ageing process.

Karnataka Traders V/s State of Gujarat [GUJARAT HC] dated 06-01-2022

Mere change of route without anything more would not necessarily be sufficient to draw an inference that the intention was to evade tax. In the same manner, mere undervaluation of the goods also by itself is not sufficient to detain the goods and vehicle far from being liable to confiscation.

Corporate Law

Guidance Note on Division III to Schedule III to Companies Act 2013 for NBFC who is required to comply with Ind AS

SEBI amends mutual funds norms; requires financials of MF schemes to be prepared in accordance with Ind-AS

SEBI amends the existing SEBI (Mutual Funds) Regulations, 1996. The amendment is effective immediately except the amendments in few regulations will be effective from April 1, 2023. Major amendment includes a mandatory provision to wind up after repayment to unitholders. Earlier, it was up to unitholders to wound up a scheme or not after repayment. Amended norms require preparation of financials of MF schemes in accordance with Ind-AS.