Income Tax Law Updates

Notification/Circular:

Notification No. 83/2022/ F. No. 370142/30/2022-TPL dated 12-07-2022

In exercise of the powers conferred by sub-section (2) of section 158AB read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:–– 1. Short title and commencement.––(1) This rule may be called the Income-tax (Twenty Second Amendment) Rules, 2022. (2) They shall come into force from the date of its publication in the Official Gazette. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in Part IIIA, rule 16 shall be renumbered as rule 15A thereof and after rule 15A as so numbered, the following rule shall be inserted, namely:— “16. Application under section 158AB to defer filing of appeal before the Appellate Tribunal or the jurisdictional High Court.”

Case Laws/Judgement:

Axis Bank Ltd. Vs CIT (ITAT Ahmedabad) ITA No. 1682/Ahd/2019 Date of Order 29/06/2022

Hon’ble ITAT vide above order held that the addition made on account of excess depreciation claimed, having been surrendered by the assessee itself without any prior detection by the Revenue, the excess claim having been demonstrated to have been made for bonafide reasons, it is surely not a case for levy of penalty at all.

Goods and Services Tax Law Updates:

Notification/Circular:

GST Notifications Remarks
Notification No. 11/2022-Central Tax (Rate) dated 13-Jul-2022 The Central  Goods  and  Services Tax  Act,  2017  (12  of  2017),  the  Central  Government,  on  the recommendations  of  the Council, hereby  rescinds  the  notification  of  the  Government  of  India  in  the  Ministry  of Finance (Department of Revenue) No. 45/2017-Central  Tax  (Rate),dated  the  14thNovember,  2017,  published  in  the  Gazette  of India,  Extraordinary,  vide number G.S.R.1391(E), dated the 14thNovember, 2017, except as respects things done or omitted to be done before such rescission.
Notification No. 10/2022-Central Tax (Rate) dated 13-Jul-2022 The  Central Government, on the recommendations of the Council,hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.  02/2022-Central  Tax  (Rate),  dated  the  31stMarch,  2022,  published  in  the  Gazette  of  India, Extraordinary,  Part  II,  Section  3,  Sub-section  (i), videnumber  G.S.R.  237(E).,  dated  the  31st March, 2022.
Notification No. 09/2022-Central Tax (Rate) dated 13-Jul-2022 The  Central  Goods  and  Services  TaxAct,  2017  (12  of  2017),  the  Central Government,  on  the  recommendations  of  the  Council,  hereby  makes  the  following  further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 5/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), videnumber G.S.R. 677(E), dated the 28th June, 2017.
Notification No. 08/2022-Central Tax (Rate) dated 13-Jul-2022 The Central Government, on the recommendations of  the  Council,hereby  makes  the  following  further  amendments  in  the  notification  of  the Government  of  India,  in  the  Ministry  of  Finance  (Department  of  Revenue),  No.  3/2017-Central Tax  (Rate),  dated  the  28th  June,  2017  published  in  the  Gazette  of  India,  Extraordinary,  Part  II, Section 3, Sub-section (i), videnumber G.S.R. 675(E) dated the 28th June, 2017, namely, in the said notification, in the TABLE, against S. No. 1, for the entry in column (4), the entry “6%” shall be substituted.
Notification No. 07/2022-Central Tax (Rate) dated 13-Jul-2022 The Council,  hereby  makes  the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of  Revenue),  No.2/2017-Central  Tax  (Rate),  dated  the  28thJune,  2017,  published  in  the  Gazette  of  India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.674(E), dated the 28thJune, 2017
Notification No. 06/2022-Central Tax (Rate) dated 13-Jul-2022 The Central Government, on the recommendations of the  Council,  hereby  makes the  following further amendments in the  notification of the  Government of India  in the Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), videnumber G.S.R. 673(E), dated the 28thJune, 2017.
Notification No. 05/2022-Central Tax (Rate) dated 13-Jul-2022 The  Council,  hereby  makes  the  following  further  amendments  in  the notification  of  the  Government  of  India,  in  the  Ministry  of  Finance  (Department  of  Revenue), No.13/2017-Central  Tax  (Rate),  dated  the  28th  June,  2017,  published  in  the  Gazette  of  India, Extraordinary,  Part  II,  Section  3,  Sub-section  (i), vide number  G.S.R.  692(E), dated the 28th June, 2017.
Notification No. 04/2022-Central Tax (Rate) dated 13-Jul-2022 The Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.12/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017.
Notification No. 03/2022-Central Tax (Rate) dated 13-Jul-2022 The  Council,  hereby  makes  the  following further amendments  in  the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 11/2017-Central  Tax  (Rate),  dated  the  28thJune,  2017,  published  in  the  Gazette  of  India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017.

AAR/Case Laws/Judgement:

B.C. Mohankumar Vs Superintendent of Central Goods & Service Tax (Madras High Court) W.P. No. 13272 of 2022 and WMP. Nos.12569 & 12571 of 2022 Date of Order 16-06-2022

Hon’ble high court held that the word ‘may’ only refers to the discretion to reject and not to blatantly violate the principles of natural justice. If the assessing authority is inclined to reject the application, which he is entitled to, he must assign reasons for such objection and adhere to proper procedure, including due process. In light of the above discussion, the impugned order is set aside. Let the petitioner be heard on the objection raised and orders be passed on the application for registration dated 13.05.2022 within a period of four (4) weeks from today. This writ petition is allowed.

Updates from Other Laws:

Notification/Case Laws/Judgement:

RBI/2022-2023/90 A.P. (DIR Series) Circular No.10 dated 11-07-2022

RBI vide circular dated 11-07-2022 has allowed international trade settlement in Indian Rupees: As per above circular, in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, the RBI has decided to put in place an additional arrangement for invoicing, payment, and settlement of exports / imports in INR. Accordingly, for settlement of trade transactions with any country, AD bank in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country.

SEZ Notification F.No. K-43013(12)/1/2021-SEZ dated 14-07-2022 

Govt. vide above SEZ Notification has further amended the Special Economic Zones Rules, 2006. New Rule 43A has been inserted, namely “Work from Home”. Under this rule, A Unit may permit its employees, including contractual employees, as specified, to work from home or from any place outside the SEZ. The employees covered are employees of the IT and IT enabled Services SEZ units; employees, who are temporarily incapacitated; employees, who are travelling; and employees, who are working offsite.

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