Articles & Latest Update - income tax - Gst - thetaxtalk

Bogus Share Premium: No reason to interfere. SLP dismissed by SC

Bogus Share Premium: No reason to interfere. SLP dismissed by SC

CBDT extends due date for filing of report in respect of International group of subsidiaries of USA residents

CBDT extends due date for filing of report in respect of International group of subsidiaries of USA residents

New functionality in GST Portal

New functionality in GST Portal

Bank audit Special - RBI Enforcement on Statutory Auditors

Bank audit Special – RBI Enforcement on Statutory Auditors

Nice representation by ICSI on dormant companies, Details of Auditor filing.

Nice representation by ICSI on dormant companies, Details of Auditor filing.

GSTR- 1 & GSTR -7 returns date Extended.

Lucknow: 2100 sale deeds done without TDS – Recovery proceeding to be commenced

Deemed dividend could only have been assessed in the hands of a person who was shareholder of lender company

Beneficial Judgement- Deemed dividend could only have been assessed in the hands of a person who was shareholder of lender company

[2019] 104 taxmann.com 59 (Bombay) IT : Once Commissioner (Appeals) had passed order after verification of merit of claim of expenditure and depreciation, Tribunal was not right in law in reversing said conclusion without examining its correctness Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Orders of (Non-speaking orders) - Assessment year 2006-07 - Assessing Officer passed an order of reassessment, in which, additions were made by disallowing assessee-company's claim of expenditure as well as claim of depreciation - On appeal, Commissioner (Appeals) allowed both claims after verifying merit of claims - Commissioner (Appeals) found that in another year in assessee's own case Tribunal allowed depreciation on ground that assets were ready to use though assessee could not commence commercial production due to lack of working capital - Commissioner (Appeals) also found that Assessing Officer had changed its opinion from earlier Assessing Officer and disallowed impugned amounts - Whether Tribunal was not right in law in merely reversing order of Commissioner (Appeals) without any discussion or even any conclusion justifying of additions made by Assessing Officer - Held, yes Shirpur Gold Refinery Ltd.

ITAT couldn’t reverse order of CIT(A) without examining correctness of additions made by AO

Sum received by partner on retirement from firm isn't chargeable to tax in hands of partner

Sum received by partner on retirement from firm isn’t chargeable to tax in hands of partner

Reassessment notice held bad in law as it was sanctioned by CIT on ground which was different from the ground of AO

Reassessment notice held bad in law as it was sanctioned by CIT on ground which was different from the ground of AO

Beware : Once the cash was deposited into bank account of assessee, primary onus was on assessee to prove how the said cash was sourced to avoid as unexplained amount

Beware : Once the cash was deposited into bank account of assessee, primary onus was on assessee to prove how the said cash was sourced to avoid as unexplained amount

AAR, Madhya Pradesh: Healthcare services provided by a person other than clinical establishment do not qualify for the exemption under GST.(J C Genetic India (P.) Ltd.) The Applicant is a Healthcare company and has collaborated with diagnostic companies, certified to provide advance tests that help in the prevention and management of various health disorders. The Applicant filed an application for advance ruling to determine whether the Applicant qualifies to be ‘Clinical Establishment’ and whether healthcare services provided by it are exempt as per the exemption notification under GST? The Authority for Advance Rulings, Madhya Pradesh observed that the Applicant has a collaboration with diagnostic companies authorized by NABL (National Accreditation Board for Testing and Calibration Laboratories) and DSIR (Department of Scientific and Industrial Research) which itself indicates that the Applicant does not have its own authority for giving clear report or opinion of its own, for the tests conducted and certified by NABL. *As per the exemption notification, ‘Clinical Establishment’ means a hospital, nursing home or any other institution that offers services or facilities requiring diagnosis or treatment for illness either as an independent entity or as a part of an establishment. Hence, mere involvement in sophisticated testing would not be sufficient to qualify as a ‘Clinical Establishment’.* The Authority for Advance Rulings, Madhya Pradesh held that the Applicant is functioning as a sub-contractor to the diagnostic companies and not as a ‘Clinical Establishment’ and, hence, healthcare services provided by it, are not exempt as per the exemption notification under GST.

Healthcare services provided by a person other than clinical establishment do not qualify for the exemption under GST.(J C Genetic India (P.) Ltd.): AAR

Bogus IT Summons Fraud !!

Bogus IT Summons Fraud !!

Additional requirement in Income Tax Return Forms for FY 2018-19 (AY 2019-20)

Additional requirement in Income Tax Return Forms for FY 2018-19 (AY 2019-20)

Selling of agricultural kand after plotting & its Taxation

Selling of agricultural Land after plotting & its Taxation

Business income—Vis-a-vis income form undisclosed sources—Income surrendered during survey proceedings—Onus is on the assessee to establish the source of the surrendered income failing which it is to be categorized as deemed income under s. 69/69A/69B/69C—In this case, the income surrendered was on account of unaccounted receivables of the business of the assessee—Revenue has accepted the surrender as such, as being on account of receivables—It follows that the debtors were generated from the sales made by the assessee during the course of carrying on the business of the assessee, which was not recorded in the books of the assessee—Though the said income was not recorded in the books of the assessee the source of the same stood duly explained by the assessee as being from the business of the assessee—Even otherwise, no other source of income of the assessee is disclosed by the assessee or unearthed by the Revenue—Therefore, there is no question of treating it as deemed income from undisclosed sources under ss. 69, 69A, 69B or 69C and the same is in the nature of business income of the assessee—Consequently, benefit of set off of losses, both current and brought forward, is allowable to the assessee in accordance with law—Plea of the Revenue that set off of losses is not to be allowed in view of s. 115BBE is rejected Income from undisclosed sources—Vis-a-vis business income—Income surrendered on account of undisclosed investment in property and to cover miscellaneous discrepancies—As far as the surrender made on account of investment in Kothi is concerned neither is the same disclosed in the books of the assessee nor source of the same disclosed—Therefore, the same is to be assessed as deemed income under s. 69—Same applies to the surrender of amount to cover miscellaneous discrepancies in loose paper—Neither the nature of the discrepancies, nor any source relating to the same has been disclosed—Therefore, the same is also to be assessed as deemed income under ss. 69, 69A, 69B and 69C—In the relevant asst. yr. 2014-15, same is to be subjected to tax as per the provisions of s. 115BBE as it stood prior to the amendment by finance Act, 2016 Business income—Vis-a-vis income from undisclosed sources—Amounts surrendered on account of sundry creditors and trade advances and profit on unrecorded sales—Surrender of income made on account of sundry creditors and advances received from customers and income on account of gross profit on sale out of the books, clearly are in relation to the business carried on by the assessee and are thus in the nature of business income—Therefore, set off of business losses, both current and brought forward are to be allowed as per the provisions of law FAMINA KNIT FABS vs. ASSISTANT COMMISSIONER OF INCOME TAX (2019) 33 NYPTTJ 192 (Chd)

Income surrendered during survey proceedings – Whether Business income or income form undisclosed sources

CBIC clarification on Composition scheme for supply of Services or Goods

CBIC clarification on Composition scheme for supply of Services or Goods