Income Tax Law Updates
Notification/Circular:
Notification No. 73/2022/F. No. 370142/29/2022-TPL (Part-I) dated 30-06-2022
In exercise of the powers conferred by section 295 read with section 194S 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) These rules may be called the Income-tax (20th Amendment) Rules, 2022. (2) They shall come into force from 1 st day of July, 2022. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 31A, –– (i) after sub-rule (1), the following shall be inserted, namely:-
Case Laws/Judgement:
Hon’ble ITAT held that Excise Duty Exemption is not chargeable to Income Tax. The excise duty exemption has been admittedly the capital receipt and the finding of the ld. CIT(Appeals) that the excise duty exemption is not liable to be taxed under the normal provisions of the Income Tax Act being not in dispute for us, the alleged capital receipt cannot be categorised as part of the book profit. In the case of assessee being covered by the excise duty notification, such sum collected on the goods manufactured and sold is in the nature of incentive subsidy given for establishing the units in backward areas and to generate employment opportunities.
Hon’ble ITAT held that imparting skill development is akin to providing education we hereby hold that the assessee is eligible for registration u/s 12AA of the Act. The word ‘education’ is to be given wide interpretation which includes training and developing the knowledge, skill, mind and character of the students by normal schooling. The assessee with the affiliation of Ministry of Skill Development & Entrepreneurship (MSDE) under the scheme has provided training to youths of India and falls under the category of Education and/ or Advancement of any other objects of general public u/s 2(15) of the Act.
ITO Vs Jitendra Shanabhai Patel (ITAT Ahmedabad) ITA No.2571/Ahd/2017 Date of Order : 29/06/2022
Hon’ble ITAT held that the acquisition of agricultural land owned by the assessee was done by the Government and thus Section 10(37) of the Act are attracted. Further evidence shows that the bills for sale of agriculture produce were before the AO and the agricultural operations carried out through Bhagiya and the same were not disputed by the Revenue authorities. Thus, there is no need to interfere with the findings of the CIT(A). As regards consideration of the rural agricultural land acquired by Government for business activity under section 2 (13) of the Act, the same cannot be treated as the adventure in trade. The CIT(A) has given proper finding to that effect.
Hon’ble ITAT held that on recovery of late payment charges, service tax etc provisions of Income Tax TDS does not apply, hence we delete the addition made by the Assessing Officer.
Goods and Services Tax Law Updates:
Notification/Circular:
Order No. F. No. 354/17/2022-TRU (Ministry of Finance) dated 8th July, 2022
Exemption from GST on final cost of flag supplied under Har Ghar Tiranga programme-reg. The undersigned is directed to refer to your D.O. letter F. No. 42-22/119/2022- AKAM dated 20th May, 2022 regarding ‘Har Ghar Tiranga’ and to state that “Indian National Flag” is already exempt from GST (copy of notification enclosed). In terms of this notification, “Indian National Flag” adhering to the Flag Code, 2002 (including the amendments, as made vide order dated 30′h December, 2021) would be exempt from GST.
GST Circular No. 176/08/2022-GST dated 06-07-2022: Withdrawal of Circular No. 106/25/2019-GST dated 29.06.2019.
GST Circular No. 175/07/2022-GST dated 06-07-2022: Manner of filing refund of unutilized ITC on account of export of electricity.
GST Circular No. 174/06/2022-GST dated 06-07-2022: Prescribing manner of re-credit in electronic credit ledger using FORM GST PMT-03A.
GST Circular No. 173/05/2022-GST dated 06-07-2022: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification.
GST Circular No. 172/04/2022-GST dated 06-07-2022: Clarification on various issue pertaining to GST.
GST Circular No. 171/03/2022-GST dated 06-07-2022: Clarification on various issues relating to applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 in respect of transactions involving fake invoices.
GST Circular No. 170/02/2022-GST dated 06-07-2022: Mandatory furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.
AAR/Case Laws/Judgement:
Held that action of the Central Excise Authority making recovery of demand more than the statutory pre-deposit amount required to be made in filing Appeal against adjudication order, from the other refundable amount by attachment of bank account and recovery from the bank account of the assessee by way of demand draft is not sustainable in law in view of the facts and circumstances as appears from record and discussion made above and the same are declared as arbitrary and illegal.
Updates from Other Laws:
AAR/Case Laws/Judgement:
Hon’ble High Court held that the nature of activities conducted by the BCCI are commercial in nature and hence, covered under the term ‘shop’ for the purpose of ESI Act and notification issued thereunder.
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