Income Tax Law Updates

Notification/Circular:

CBDT Circular No. 11 of 2022 dated 03-06-2022 [F. No.370142/4/2021-TPL]

Clarification regarding Form No 10AC issued till the date of this Circular: The conditions contained in Form No. 10AC, issued between 01.04.2021 till the date of issuance of this Circular, shall be read as if the said conditions had been substituted with the conditions as provided in the Table 1 of this circular with effect from 1st April, 2022. The Board has listed down conditions that shall be considered while granting registration/approval or provisional registration/ provisional approval to trusts and institutions in view of amendments made by the Finance Act, 2022.

Notification No. 57/2022/ F. No. 370142/31/2021-TPL(Part III) dated 31-05-2022

New Income Tax Rule 44FA. Form and manner of filing appeal to the High Court on ruling pronounced or order passed by the Board for Advance Rulings under sub-section (1) of section 245W.

Case Laws/Judgement:

DCIT Vs Kingfisher Capital CLO. Ltd. (ITAT Mumbai) Appeal Number : ITA No. 465/M/2021 Date of Order 10-05-2022

Hon’ble ITAT held that when the respondent company has already gone into liquidation vide order dated (supra) and is no more in existence the present appeal filed by the Revenue is not maintainable in the present format as liquidator has not come up before the Tribunal despite numerous notices to file the amended form 36A in the present appeal.

Share India Vs CIT (ITAT Hyderabad) Appeal Number : ITA No.1589/Hyd/2019 Date of Order 13-05-2022

Hon’ble ITAT held that Section Registration u/s 12A cannot be denied for receipt of fund From Foreign Entity. The Ld. CIT(E) has nowhere observed in his order that any of the object or activity undertaken by the assessee is ingenuine or against the prescription of section 2(15) of the act. Therefore the refusal of the registration by Ld. CIT(E) is not on a sustainable ground. Being so, the Ld. CIT(E) has wrongly rejected the application of the assessee. On the basis of aforesaid discussion, we direct the Ld. CIT(E) to grant the registration as applied for by the assessee. The Ld. CIT(E) shall, however, be at liberty to impose any condition(s), as he deems fit, in accordance with the law.

Goods and Services Tax Law Updates:

AAR/Case Laws/Judgement:

In re: Monalisa Co-Operative Housing Society Limited (GST AAR Maharashtra) Date of Order 31-05-2022

The Hon’ble AAR has pronounced the ruling as the receipt of a gratuitous payment from an outgoing member for the time he has resided in the society is taxable under the CGST Act, 2017. The contribution made by the outgoing member is nothing but consideration and we reproduce the definition of the term ‘consideration’ under the CGST Act as under:-Section 2 (31) of the CGST Act, 2017.

In re Dishman Carbogen Amcis Limited (GST AAR Gujarat) Date of Order 01-06-2022

The Hon’ble AAR has pronounced the ruling as the car purchased by the company is sold after using it for business purpose, shall be charged under GST. GST rate leviable would be 18% (9% CGST & 9% SGST). The Value for intended supply shall be the difference between the consideration received for supply of said car and the depreciated value of the said car on the date of supply. Depreciation is as per Section 32 Income Tax Act.

In re Kasturi & Sons Ltd. (GST AAR Maharashtra) Date of Order 31-05-2022

Whether Applicant is eligible for the exemption from payment of GST on the monthly license fee to be received by them on the proposed letting out on Leave and License Basis of their residential building at Flat No. 19, admeasuring 1305 sq. ft. (carpet) area, on the First floor, Flat No.21, admeasuring 1336 sq.ft on the First Floor, and Terrace T2 Flat admeasuring 1323 sq.ft, on the 6th Floor, of Kasturi Building, situate at Jamshedji Tata Road, Mumbai 400020, to M/s. Life Insurance Corporation of India for residential purpose of their staff, as per SI. No. 12 of the Notification No.12/2017-CT(Rate), dated 28-6-2017 and corresponding SI. No. 12 of Notification No.12/2017-ST(Rate) under Maharashtra Goods and Service Tax Act, 2017.

Updates from Other Laws:

EPFO Circular No. 4670 dated 03-06-2022

Central Govt. vide EPFO Circular No. 4670 dt. 03/06/2022 approves 8.10% interest rate on provident fund deposits for year 2021-2022: The Ministry of Labour and Employment, Government of India has conveyed the approval of the Central Government to credit interest @ 8.10% for the year 2021-22 to the account of each member of the EPF scheme.