Income Tax Law Updates

Notification/Circular:

Notification No. 04 of 2022 dated 26-07-2022 [F. No. DGlT(S)/ADG(S)- 1/FiLLil’ form for LLP/2022-23]: ​Procedure of PAN application & allotment through Simplified Proforma for incorporating Limited Liability Partnerships (LLPs) electronically Form FiLLiP of Ministry of Corporate Affairs.

Case Laws/Judgement:

Navin Sirahmal Mukim Vs ITO (ITAT Pune)  ITA No. 657/PUN/2020 Date of Order 30/06/2022 

Hon’ble ITAT held that the assessee allegedly purchased diamonds through the Hawala purchase bills and thereafter utilized the same in the manufacture of the jewellery. In such a situation, the entire amount of purchase bills does not requires addition but only the profit element because the diamonds must have been actually purchased at lower prices in lieu of which costly hawala purchases were recorded, which were used in the jewellery-making,.

Ajay Verma Vs Income Tax Officer (ITAT Lucknow) Date of Order 06/07/2022

ITAT find that the share of profit from a partnership firm is specifically exempt under the provisions of Section 10(2A) of the Act and the undisputed fact is that such share was received from the partnership firm in which the assessee was a partner. The assessee had filed with the ld. CIT(A), copy of partnership deed as well as detailed copy of the ITR of the firm, wherein the assessee was a partner and from where he had received the share of profit. Therefore, in view of above facts and circumstances of the case, addition for share of profit from a partnership firm cannot be taxed.

Goods and Services Tax Law Updates:

Notification/Circular:AAR/Case Laws/Judgement:

In re Jaideep Ispat and Alloys Pvt. Ltd (GST AAAR Madhya Pradesh) Dated 26/07/2021

Hon’ble AAAR held that Section 100(1) mandates that only a ruling pronounced under sub-section (4) of section 98 of CGST, Act, 2017 can be appealed before the Appellate Authority for Advance Ruling. AAAR find that the Advance Ruling Authority in its Order No.01/2021 has rejected the application of the appellant under section 98(2) of CGST, Act, 2017, and it cannot be said to be any advance ruling pronounced under sub-section (4) of section 98 of CGST Act, 2017, therefore the appellants appeal fails on this count also.

Updates from Other Laws:

Notification/Case Laws/Judgement:

RBI/2022-2023/95 CO.DPSS.POLC.No.S-760/02-14-003/2022-23 dated July 28, 2022

RBI Restriction on Storage of Actual Card Data [Debit Card or Credit Card]: With effect from October 1, 2022, no entity in the card transaction / payment chain, other than the card issuers and / or card networks, shall store CoF data, and any such data stored previously shall be purged.

RBI PRESS RELEASES Dated Jul 29, 2022

Premature redemption under Sovereign Gold Bond (SGB) Scheme – Redemption Price for premature redemption due on August 05, 2022 (Series I of SGB 2016 – 17) In terms of GOI Notification F.No.4(7) – W&M/2016 dated July 14, 2016 (SGB 2016 – 17, Series I – Issue date August 05, 2016) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the third due date of premature redemption of the above tranche shall be August 05, 2022.

RBI NOTIFICATION dated 28th July, 2022 [Foreign Exchange Department]

The limit of USD 750 million or equivalent per financial year is temporarily increased to USD 1500 million or equivalent. This dispensation will be available for ECBs raised till December 31, 2022.

MCA General circular No 08/2022 dated 26/07/2022

Clarification on spending of CSR funds for “Har Ghar Tiranga” campaign by MCA vide general circular No 08/2022 dated 26/07/2022 The Ministry of Corporate affairs has issued a general circular dated 26/07/2022 permitting the companies to spend their CSR funds for activities related to the ‘Har Ghar Tiranga’ campaign.

Weekly Newsletter Income Tax, GST and Other Law [4th Week, July 2022]