Income Tax Law Updates

Notification/Circulars:

Notification No. 36/2022/F. No. 300196/12/2022-ITA-I dated 20-04-2022 

Certain Income of ‘SEEPZ Special Economic Zone Authority’ (PAN AAALS4995G), will be exempted under clause (46) of section 10 of the Income-tax Act, 1961.

Notification No. 35/2022/F. No. 300196/7/2022-ITA-I dated 20-04-2022 

Certain Income of ‘Gujarat Real Estate Regulatory Authority’ (PAN AAAGG1260R), will be exempted under clause (46) of section 10 of the Income-tax Act, 1961.

Notification No. 33 /2022/F. No. 203/06/2021/ITA-II dated 19-04-2022

CBDT notified Sharada Institute of Indian Management Research Foundation Trust under section 35(1)(iii) read with rules 5C and 5E of the Income-tax Rules, 1962.

Notification No. 37/2022 dated 21-04-2022

New Rule 12AB in Income Tax Rules, 1962: Filing of ITR is mandatory now where turnover, gross receipts, TDS/ TCS or deposits in saving bank accounts exceeds a certain limit.

Case Laws/Judgement:

Sri Suhas Suresh Shet Vs ITO (ITAT Bangalore) dated 05/04/2022 

The Hon’ble ITAT held that in the matter of condonation of delay in filing appeals beyond the limitation period, the courts are empowered to condone the delay, provided the litigant is able to demonstrate that there was “sufficient cause” in preferring appeal beyond the limitation period.

Goods and Services Tax Law Updates:

AAR/Case Laws/Judgement

M/s Goyal And Co Construction Pvt Ltd Vs C.S.T. – Service Tax (CESTAT Ahmedabad) dated 11/04/2022

The Hon’ble CESTAT held that it cannot be said that the income declared by the Appellant under IDS Scheme is attributable to the taxable service provided by assessee to their clients. In this case, evidence gathered by the Department is not sufficient to establish even the preponderance of probability. Therefore, the demand on the ground that the income declared under the IDS scheme is earned from the taxable service is not sustainable.

Union of India & Ors. V/s Willowood Chemicals Pvt. Ltd., Saraf Natural Stone [SUPREME COURT OF INDIA] dated 19-04-2022

Hon’ble Supreme Court held that if any tax ordered to be refunded under sub-section (5) of Section 54 to any applicant is not refunded within sixty days from the date of receipt of application under subsection (1) of that section, interest at such rate not exceeding six per cent is payable.

In Re: B.T. Patil & Sons Belgaum Construction Pvt Ltd [MAHARASHTRA-AAR ] Dated 18/04/2022

Hon’ble AAR pronounced ruling that w.e.f. 01.01.2022, contractors are not entitled for benefit of concessional rate of tax under Sr. No.3 (x) of Notification No. 11/2021 – CTR dated 28.06.2017 for providing ‘earth work’ service where service recipient is a government entity or government authority.

Updates from Other Laws:

AAR/Case Laws/Judgement

MCA Notification 19th April, 2022

The MCA, notifies the Nidhi (Amendment) Rules, 2022, according to this the public company desirous to be declared as a Nidhi shall apply, in Form NDH-4, within a period of 120 days of its incorporation for declaration as Nidhi on fulfilling certain conditions. Amended rules prohibit the non-compliant Nidhi companies to raise any deposit from its members or provide any loan to them. Further, the Net Owned Funds requirement is raised to Rs. 20 lakh; earlier the requirement was Rs.10 lakhs.

RBI Notification [RBI/2022-23/34 DOR.CRE.REC.28/ 21.04.048/2022-23] dated 21-04-2022

The RBI vide above notification has decided to extend the guidelines on Legal Entity Identifier (LEI) to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs). Further, RBI advised that non-individual borrowers enjoying aggregate exposure of Rs. 5 crore and above from banks and financial institutions shall be required to obtain LEI codes as per the specified timelines. It is further clarified that Borrowers who fail to obtain LEI codes shall not be sanctioned any new exposure.

RBI Notification 2022-23/ 92DoR.AUT.REC.No.27/24.01.041/2022-23 dated 21-04-2022: Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022. These Directions shall be called the Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022. These Directions shall be effective from July 01, 2022.