Income Tax Law Updates
CBDT Circular No. 18 of 2022 dated 13-09-2022
Additional Guidelines for removal of difficulties under sub-section (2) of section 194R of the Income-tax Act, 1961.
CBDT Guidelines dated 16-09-2022 [F.No.285/08/2014-IT(ln v.V)/ 196]
Guidelines for Compounding of Offences under the Income-Tax Act, 1961 – reg. CBDT vide above letter has issued a fresh set of Guidelines on Compounding of Offences under the Income Tax Act, 1961, in supersession of the earlier Guidelines on the subject issued in 2019, to simplify and facilitate the process of Compounding of Offences. The time limit for acceptance of compounding applications has been relaxed from the earlier limit of 24 months to 36 months now, from the date of filing of complaint. Procedural complexities have also been reduced/simplified.
CBDT Notification No. 109/2022-Income Tax Dated 14th September, 2022
CBDT notifies Rule 121A. Form of statement to be furnished by producers of cinematograph films or persons engaged in specified activity and Form N0. 52A Statement to be furnished under section 285B of the Income-tax Act, 1961 by a person carrying on production of a cinematograph film or engaged in specified activity or both vide Notification No. 109/2022-Income Tax | Dated: 14th September, 2022.
Late Kadir Usman Shaikh Vs ITO (ITAT Pune) Date of Order: 08/09/2022
Hon’ble ITAT held that there is hardly any need for us to delve deeper in the relevant factual matrix. Suffice to say, the assessee herein Shri Kadir Usman Shaikh appears to have expired well before the Assessing Officer’s penalty order dated 28.03.2014. That being the case, we quote CIT vs. S.Gouri [2019] 417 ITR 45(Madras) to hold that the impugned penalty imposed by the Assessing Officer is not maintainable against the assessee’s legal heir herein under section 159 of the Act. We therefore delete the impugned penalty for this precise reason alone. All other pleadings on merits stand rendered academic.
Goods and Services Tax Law Updates:
We have observed that construction of TP Road and other Utility Service viz. Potable Water Supply system, Recycled Water Supply, Sewerage Collection System, Industrial Effluent Collection System, Storm Water Drainage Network are not naturally bundled service and also do not supply in combination with each other. Infact construction of Road of TP-1 area and other utility services are independent work contract service to each other. Therefore, the applicant services are not composite supply in terms of Section 2(30) of CGST Act. The supply of design and construction of Roads and utility Services of TP-1 Area do not constitute composite supply.
Hon’ble CESTAT held that as per first proviso to Section 140(1), only the credit which is admissible as input tax credit under the CGST Act can be availed as input tax credit. Obviously, the quantum of credit which relates to the items which continued to be covered under the Central Excise Act would not be admissible as input tax credit under CGST Act.
Hon’ble High Court held that so long as the premises to be licensed under the Act remains under dispute between the petitioner and respondent No.5, the designated authority under the Act is well within its power not to grant or renew the license under the Act in favour of one and to the exclusion of other. The parties need to settle their dispute either amicably or through intervention of the Court. The petitioner as well as respondent No.5 may, however, apply for grant of license jointly and in case they fulfill the requirements of the Act and the Regulations framed thereunder, they shall be granted the requisite license by the designated authority. Registering authority under GST Act shall also act on similar lines.
The Hon’ble AAR pronounced ruling that (a). the Bus air-conditioning system inclusive of Rooftop unit, compressor and installation kit for one consolidated price to a single customer merits classification under heading 8415 20 10. (b). The Rooftop unit, compressor and installation kit sold to single customer for a single fitting at customer end, but price negotiated and agreed separately for each unit also merits classification under heading 8415 20 10. (c). The Rooftop unit or installation kit sold individually or in combinations thereof, as mentioned below, merit classification under heading 8415.90.00. i. Rooftop unit alone ii. Rooftop unit and compressor iii. Installation Kit iv. Compressor and installation kit v. Rooftop unit and installation kit vi. Rooftop unit and compressor The compressor sold alone merits classification under tariff heading 84148011.
Updates from Other Laws:
In view of the specific and clear mandate of Section 110A, goods could have been permitted to be released only in favour of an owner and since the Respondent had failed to prove ownership over the goods in question, as held by the adjudicating authority inasmuch as no evidence had been submitted to prove such ownership, which finding of fact has not been unsettled by the Tribunal, except to the extent that the Respondent has been held to be the owner by an erroneous legal interpretative process of the provisions of the Act. Held that the order passed by the Tribunal is unsustainable in law and hold that the goods could have been released provisionally under Section 110A of the Act, only in favour of an owner, which status the Respondent had failed to establish.
Weekly Newsletter Income Tax, GST and Other Law [2nd Week, September 2022] GST Updates, Income Tax Updates, Tax India Updates
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