CBDT Amends Income Tax Rules 1962 In View Of IFSC Related Proposals In Finance Act 2023

The Central Board of Direct Taxes (CBDT) vide notification no. G.S.R. 514(E) published on 17th July 2023 has amended the Income Tax Rules, 1962 in view of IFSC Related Proposals in Finance Act 2023. The new amendment may be called as Income-tax (Twelfth Amendment) Rules, 2023. The amendment was made by CBDT in exercise of the powers conferred by clause (i) of sub-section (3) of section 80LA, clause (4E) of section 10, sub-section (7) of section 115UB, clause (d) of sub-section (8)...

Mere Pendency Of An Appeal Would Not Detract From The Excise Duty Refund Demand: Delhi High Court

The Delhi High Court has held that the mere pendency of an appeal or an order of stay that may operate would not detract from the obligation of any person claiming a refund to make an application within the period prescribed and computed with reference to the "relevant date"."We do so observe in light of the indubitable principle that an order of stay that may operate in an appeal does not efface the demand or the obligation of refund that may have sprung into existence. It merely places the...

CBDT Amends Definition Of Investment Fund Under Income Tax Act, 1961

The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has recently issued an important amendment to its previous Notification No. 55/2019, dated 26-07-2019, pertaining to the definition of an investment fund under the Income Tax Act, 1961. The notification elucidates the criteria for funds that are established or incorporated in India and fall under the regulatory oversight of either the Securities and Exchange Board of India (SEBI) or the International ...

No GST Payable On Activity Of Holding Of Shares Of Subsidiary Company By The Holding Company: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the taxability of shares held in a subsidiary company by the holding company.The Board has received the representations from the trade and field formations seeking clarification on whether the holding of shares in a subsidiary company by the holding company will be treated as a ‘supply of service’ under GST and will be taxed accordingly or whether such transaction is not a supply.CBIC has clarified that...

CBIC Extends GST Amnesty Scheme For GSTR-9 & GSTR-10 For Non-Filers

The Central Board of Indirect Taxes and Customs (CBIC) has extended the GST Amnesty Scheme for GSTR-9 & GSTR-10 for non-filers.The deadline for submitting the GSTR-10 form has been moved from the original 30th June 2023 to the 31st August 2023, according to the notification.GSTR-9 & GSTR-10 non-filers are allowed an additional amount of time to complete their filing requirements as a result of the Central Government's decision to extend the deadline.Form GSTR-9 is an annual return to be...

No Evidence Of Supplier Of Tea Involved In Smuggling Poppy Seeds: Calcutta High Court Releases Vehicle And Tea

The Calcutta High Court has released the attached vehicle and tea on the grounds that the tea supplier was not involved in smuggling poppy seeds.The bench of Justice Krishna Rao has observed that tea is perishable in nature, no involvement of the supplier of the tea with the smuggled poppy seeds has been ascertained, and the Directorate of Revenue Intelligence has no objection if the consignment of the petitioner is released.The petitioner sought direction from the respondent authorities for the...

Jharkhand High Court Rejects ESL Steel’s ITC Claim Prior To The Approval Of The Resolution Plan By NCLT

The Jharkhand High Court rejected ESL Steel’s Input Tax Credit (ITC) claim prior to the approval of the resolution plan by the National Company Law Tribunal (NCLT).The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that the liability of the earlier management may not be shifted to the current management, but at the same time, the credit available to the earlier management will also not be available to the current management as the current management was not a...

Bombay High Court Quashes Reopening Income Tax Assessment After 4 Years Merely On The Change Of Opinion

The Bombay High Court has quashed the reopening of income tax assessments after 4 years merely on the change of opinion of the Assessing Officer (AO).The bench of Justice K. R. Shriram and Justice Firdosh P. Pooniwalla observed that the Assessing Officer had in his possession all primary facts, and it was for him to draw a proper inference as to whether the brought forward unabsorbed depreciation should be adjusted against capital gains or profit and gains from business or profession. There was...

Welding Electrodes Used For Repairing Plant & Machinery Are Capital Goods: Rajasthan High Court Allows CENVAT Credit To Hindustan Zinc

The Rajasthan High Court has granted CENVAT Credit to Hindustan Zinc and held that welding electrodes used for repairing plants and machinery are capital goods and inputs.The bench of Justice Vijay Bishnoi and Justice Yogendra Kumar Purohit has relied on the decision of the Supreme Court in the case of Jawahar Mills Ltd. vs. CCE, in which it was held that Welding Electrodes are eligible inputs for availing of CENVAT Credits and can also be considered capital goods since they are used for repair...

ITAT Upholds Interest On 'Outstanding Interest Receivable' Against Parle Biscuits

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the levy of interest on 'outstanding interest receivable' against Parle Biscuits.The bench of Kuldip Singh (Judicial Member) and Padmavathy S. (Accountant Member) has observed that in a transfer pricing transaction, what needs to be looked into is whether, in an uncontrolled similar transaction, the third party would charge such interest or not. The interest on a loan is compensation received towards the utilisation of...

Tax Cases Weekly Round-Up: 9 July To 15 July, 2023

Supreme Court Revenue Dept Can't Recover Refunded Cess Amount Because Refund Was Based On A Judgment Which Was Later Overruled : Supreme Court Case Title: Commissioner of CGST and Central Excise (J and K) vs M/s Saraswati Agro Chemicals Pvt. Ltd. Citation : 2023 LiveLaw (SC) 522 The Supreme Court has upheld the decision of the Jammu and Kashmir and Ladakh (J&K&L) High Court where the court had held that the assessee was not liable to return the Education Cess...

Output Tax Was Paid Using ITC, Railway Can’t Deny GST Reimbursement On Price Variation: Gauhati High Court

The Gauhati High Court had held that railways cannot deny GST reimbursement on account of price variation merely on the grounds that the output tax was paid through an electronic credit ledger using the Input Tax Credit (ITC).The bench of Justice Devashis Baruah has observed that the petitioner would be entitled to his PVC claim in terms of the contract, and GST paid by the Petitioner from its electronic credit ledger has to be taken into consideration while computing the Price Variation Claims...