Income Tax Law Updates
Notification/Circular:
Notification No. 94/2022/ F. No. 370142/34/2022-TPL dated 10-08-2022
In exercise of the powers conferred by clause (a) of the tenth proviso to clause (23C) of section 10 and sub-clause (i) of clause (b) of sub-section (1) of section 12A 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:- In the Income-tax Rules, 1962, after rule 17A the following rule shall be inserted, namely: – “17AA. Books of account and other documents to be kept and maintained.— (1) Every fund or institution or trust or any university or other educational institution or any hospital or other medical institution which is required to keep and maintain books of account and other documents under clause (a) of tenth proviso to clause (23C) of section 10 of the Act.
Case Laws/Judgement:
Markand Induprasad Bhatt Vs DCIT (ITAT Ahmedabad) Date of Order 15/07/2022
Hon’ble ITAT held that the assessee has the opportunity to file revise return of income by following the provision of section 139(5) of the Income Tax, however he lost the opportunity but that does not mean that the mistake made by the assessee cannot be corrected. As such the provisions of section 154 of the Act are applied for both i.e. for assessee as well as income tax authority referred u/s 119 of the Act. Thus we hold that there is a mistake apparent from record which needs to be rectified under the provisions of section 154 of the Act. We direct accordingly. Hence the ground of appeal of the assessee is allowed.
Phool Singh Vs ITO (ITAT Delhi) Date of Order 15-07-2022
We do not find any merit into the objection of the assessee that the land in question being agricultural land cannot be treated as capital asset. The sale-deed itself goes to demonstrate that what was being transferred was industrial land. Therefore, there is no ambiguity on these facts. The objection of the assessee that land was an agricultural land is devoid of merit, hence, rejected.
Ambica Alloys & Steel India Ltd. Vs DCIT (ITAT Ahmedabad) Date of Order 27/07/2022
Hon’ble ITAT held that the assessee in the instant set of facts is eligible to claim deduction of expenditure on purchase of Rolling Mill Rolls as revenue expenditure.
Hon’ble ITAT held that the issue in question is already mentioned in the Rules and Regulation of the Society which indicates that the fees like entrance fees as well as life membership are part of the corpus fund and accordingly are in the nature of capital receipt.
Sanjay Subhashchand Gupta Vs ACIT (ITAT Mumbai) Date of Order 04-08-2022
Hon’ble ITAT Mubai held that since the tax dispute for the year under consideration has been settled under VSV Scheme, therefore, it is not open to the assessee to pursue the legal remedy of appeal as well.
Goods and Services Tax Law Updates:
Notification/Circular
IRDAI Circular: GA&HR/CIR/MISC/171/8/2022 dated 11/08/2022
As per the MoF (Dept. of Revenue), GoI Notification No. 04/2022 – Central Tax (Rate), dt. 13th July, 2022 (effective from 18th July, 2022), the central tax (GST) exemption provided to the Authority vide Notification No. 12/2017 – Central Tax (Rate) dt. 28.06.2017 in respect of the services provided by the Authority to Insurance companies under the IRDA Act, 1999 has been withdrawn. Therefore, all insurers are advised to ensure that any payment made to the Authority towards fees / charges etc., due / paid on or after 18th July, 2022, shall be made along with GST @ 18%.
Case Laws/Judgement:
Hon’ble High Court held that The appellant is aggrieved by the action of the respondents in allegedly recovering tax without issuance of any order under Section 74(9) of the CGST Act, 2017. The respondent / department is directed to issue show cause notice to the appellant.
Updates from Other Laws:
Notification/Case Laws/Judgement:
RBI Instruction: RBI/ 2022-23/ 108 DOR.ORG.REC.65/ 21.04.158/ 2022-23 dated 12-08-2022
Outsourcing of Financial Services – Responsibilities of regulated entities employing Recovery Agents The Reserve Bank of India has from time to time advised regulated entities (REs) that the ultimate responsibility for their outsourced activities vests with them and they are, therefore, responsible for the actions of their service providers including Recovery Agents.
Weekly Newsletter Income Tax, GST and Other Law [2nd Week, August 2022] GST Updates, Income Tax Updates, Tax India Updates
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