Income Tax Law Updates

Notification/Circulars:

Notification No. 47/2022 F.No.300196/43/2017-ITA-I] dated 28-04-2022 

Certain Income of ‘Tamilnadu Construction Workers Welfare Board’ (PAN AAATT9440P), will be exempted under clause (46) of section 10 of the Income-tax Act, 1961.

NOTIFICATION No. 48/2022/F. No. 370142/18/2022-TPL(Part-1) dated 29-04-2022

CBDT notifies New Form ITR-U for filing of updated return. The Finance Act, 2022 has introduced a new concept of updated return, wherein it allows up to 24 months to file the return of income. The CBDT has notified a new Rule 12AC and new Form ITR-U for filing of such updated return of income.

Case Laws/Judgements:

M/s. Akik Tiles Pvt. Ltd. Vs JCIT (ITAT Ahmedabad) Date of Order 13/04/2022 

There is no ambiguity to the fact that the AO is not expected to interfere in the decision making process of the assessee. In the business environment, there are certain decisions which are taken by the assessee depending upon the market forces.

ITO Vs Rahul Bharatbhushan Jain (ITAT Ahmedabad) Date of Order 22/04/2022 

The Hon’ble ITAT held that for applicability of s. 40A(3) of the Act, if a person makes different payments in cash to the same person in excess of Rs 20,000 (w.e.f. A.Y. 2018-19 Rs 10000/-) in a single day even though on separate cash memos, such aggregate payment will be disallowed u/s 40A(3).

Goods and Services Tax Law Updates:

AAR/Case Laws/Judgements

Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company Limited Vs Commissioner of CGST  (CESTAT Delhi) Date of Order 12-04-2022

The Hon’ble CESTAT held that the Late payment surcharge, Metre Renting Charges, Supervision charges, Metre rent and reconnection and dis-connection charges are not liable to Service Tax.

In Re: Crystal Crop Protection Limited [MAHARASHTRA-AAR] Dated 21/04/2022

Hon’ble AAR pronounced ruling that the transaction of transfer of business by way of merger of two GST registrations/ distinct persons would constitute ‘supply’ under the GST law.

In Re: Romell Real Estate Private Limited [MAHARASHTRA-AAR] Date 21/04/2022 

Case Decided Issues Involved :- Since provisions of Sec 95 (a) are very clear and unambiguous that only a supplier can file an application for advance ruling, the applicant cannot seek an advance ruling in relation to the supply where he is a recipient of services.