In a significant ruling, a division bench of the Gujarat High Court has held that since the assessee does not have ill-intent to evade GST as the e-way bill expired during the transit. The petitioner, Orson Holdings Company Limited challenged an order demanding the tax and penalty under Section 129(3) of the Central Goods &…
A division bench of the Gujarat High Court has quashed an order cancelling GST registration on the ground that the show-cause not does not contain the reasons for such an action. A search proceeding was carried out by the Central GST Department at the premises of the petitioners, M/s Dee Cubes Diamonds Pvt Ltd. The…
The GST department of Delhi Government has issued a circular prescribing the manner of filing of unutilized ITC on account of export of electricity. The department has received requests stating that though electricity is classified as “goods” in GST, there is no requirement for filing of Shipping Bill/ Bill of Export in respect of export…
The Delhi State Government has issued the manner of re-credit in Electronic Credit Ledger (ECL) in Form GST PMT-03A. Difficulties were being faced by the taxpayers in taking re-credit of the amount in the electronic credit ledger in cases where any excess or erroneous refund sanctioned to them had been paid back by them either…
In a recent ruling while slamming the income tax department for ignoring the grievance of the assessee, the Income Tax Appellate Tribunal (ITAT), Kolkata bench has held that the income tax authorities should charge legitimate taxes from the taxpayers.
The assessee, M/s Kkalpana Plastic Ltd, contended that he was never served upon the second rectification order and that he came to know of the second rectification order only on receipt of demand notice dated 03.02.2020 and that all the correspondences were made under the impression and in response to the earlier rectification petition dated 23.01.2013.
On first appeal, the CIT(A) has dismissed the appeal observing that the assessee was aware of the second rectification order dated 30.07.2014. Whatever the case may be, it is apparent from the record that the assessee was neither served with earlier rectification order dated 11.06.2014 nor with the second rectification order dated 30.07.2014.
The assessee though continued to file various applications not only to the Assessing Officer but also to the CPGRAM portal till 04.04.2019, and thereafter, when he was served with the demand notice dated 03.02.2020, he filed the present appeal.
A bench of Shri Sanjay Garg, Judicial Member and Shri Rajesh Kumar, Accountant Member held that “the facts show that it is not a case where the assessee-appellant had remained negligent in persuing its remedy before the competent authority, rather it is a case of official apathy where the genuine grievance of the assessee has been overlooked, ignored and rejected and uncalled for demand was raised from the assessee. It has been held time and against that the Income Tax Authorities should charge legitimate taxes from the taxpayers.”
“In this case, not only the Assessing Officer but also the CIT(A) has failed to exercise jurisdiction vested with him. In view of this, the impugned order of the CIT(A) is quashed. The second rectification order dated 30.07.2014 is also hereby quashed and consequential demand raised by levying tax @20% on LTCG is also set aside,” the ITAT said.
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In a significant ruling, the Supreme Court, today quashed the order of Single and Division bench of Calcutta High Court quashing and setting aside the election of office bearers of EIRC of ICSI held on 27-12-2021 by explaining the difference between vacation of office and resultant absence from meeting and general absence from meeting.
The respondent, Mr. Biman Debnath was Vice Chairman of the Institute and was allowed to chair the meeting for the limited purpose of election to the post of Chairman for the remaining period of the current year ending on 18.01.2022 in terms of Regulation 119(2). Allegedly, the respondent was disrupting the meeting, the remaining members decided to proceed with the agenda item i.e. electing the chairman for the remaining period and for that purpose appointed another respondent, Mr. Anil Kumar Dubey to chair the said item. That thereafter elections took place and Mr. Anil Kumar Dubey was duly elected as Chairman for the remaining period.
The Respondent, who did not participate in the election and/or contest filed the writ petition before the learned Single Judge contending inter alia that the meeting dated 27.12.2021 chaired by Mr. Anil Kumar Dubey was illegal. The High Court allowed the plea and quashed the election.
As per Regulation 114(4) whether any dispute arises regarding any election to a Regional Council, the matter may be referred by the candidate concerned within 30 days from the date of the declaration of the result of the election, to the President and the decision shall be final.
A bench of Justice M R Shah and Justice M.M. Sundresh observed that “Under the circumstances, in view of Regulation 114(4) of the Regulations, the High Court ought not to have entertained the writ petition challenging the validity of the election. Even otherwise, it is required to be noted that even as per Regulation 114(4), the election can be challenged by the candidate concerned. In the present case respondent no.1 who challenged the election of the office bearers did not even contest the election. Under the circumstances the High Court erred in entertaining the writ petition challenging the election at the instance of the respondent no.1 who even did not contest the election of the office bearers.” The bench concluded.
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In a significant ruling granting relief to all GST taxpayers, a two-judge bench of the Delhi High Court has directed the Central Government to allow the taxpayers to claim an input tax credit under Form GST TRAN-1 till 30th June 2020 since the statutory time limit for the same is a directory and therefore, the period of limitation of 3 years under the Limitation Act would apply.
The bench comprising Justice Sanjeev Narula and Justice Vipin Sanghi was considering a bunch of petitions were the petitioners, contended that the Input tax credit is the property and the same cannot be deprived without the Authority of law in terms of Article 300A of the Constitution. There is no substantive provision in the GST Act to deprive the claim on the basis of the period of making the claim, the petitioners argued.
It was further contended that the limitation period provided under the Rules and not the Act and no penal consequences and the same is a directory. It was further contended that in the absence of a period of limitation being provided under the Statute, the general period of limitation of 3 years should be held to apply for making a claim.
Accepting the contentions, the bench observed that the provisions of Rule 117 as being directory in nature, insofar as it prescribes the time-limit for transitioning of credit and therefore, the same would not result in the forfeiture of the rights, in case the credit is not availed within the period prescribed.
“Transitory provisions, as the word indicates, have to be given its due meaning. The transition from pre-GST Regime to GST Regime has not been smooth and therefore, what was reasonable in ideal circumstances is not in the current situation. In absence of any specific provisions under the Act, we would have to hold that in terms of the residuary provisions of the Limitation Act, the period of three years should be the guiding principle and thus a period of three years from the appointed date would be the maximum period for availing of such credit,” the bench said.
Transition Form or TRAN-1 is filed by those taxpayers who are eligible to claim the credit on the tax already paid in the pre-GST regime. In order to claim the complete amount as a credit, TRAN-1 is to be filed along with the particulars of stock carried forward.
The judgment is a great relief to all those who could not file TRAN-1 and claim the input tax credit as the direction would apply in rem, said Advocate Ruchir Bhatia, the counsel appeared for one of the petitioners.
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The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for filing of GSTR-4 by the composition dealers for the financial year ending 31st March, 2020, till the 15th day of July, 2020.
Earlier, the due date for filing the said self-assessed tax return was 7th July 2020.
GSTR-4 is a Return that has to be filed by a Composition Dealer under the Goods and Services Tax (GST) regime. Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer opting for the composition scheme is required to furnish only 1 return which is GSTR-4.
The notification said that “the said persons shall furnish the return in FORM GSTR-4 of the Central Goods and Services Tax Rules, 2017, for the financial year ending 31st March, 2020, till the 15th day of July, 2020.”
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The Central Board of Indirect Taxes and Customs (CBIC) has notified that the late fee for delay in filing of the returns, GSTR-3B and GSTR-1 for the periods February, March and April shall be waived.
The notification would be a great relief for the businesses affected by lockdown due to the COVID-19 outbreak.
The notification published in the gazette on Friday said that “the amount of late fee payable under section 47 shall stand waived for the specified tax period for the class of registered persons who fail to furnish the returns in FORM GSTR-3B by the due date, but furnishes the said return according to the condition mentioned in the notification.
As per the notification, the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year, need not pay the late fee for the months February, March and April if they can file the return before 24th June.
The taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees five crores in the preceding financial year is exempted from late fee for the three months if they file the return on or before 29th July and 30th June.
Further, the taxpayers having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year need not pay the late fee, if they can file the returns for the months of February, March and April by 30th June, 3rd July and 6th July.
Waiving the late fee for GSTR-1, the Notification also said that “the amount of late fee payable under section 47 of the said Act shall stand waived for the months of March, 2020, April, 2020 and May, 2020, and for the quarter ending 31st March, 2020, for the registered persons who fail to furnish the details of outward supplies for the said periods in FORM GSTR-1 by the due date, but furnishes the said details in FORM GSTR-1, on or before the 30th day of June, 2020.”
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The Competition Commission of India ( CCI ) has revised guidance notes to Form I with a view to incorporate the changes made in Green Channel. The revised Form I, under the Green Channel, will be used to file the notice under Section 6(2) of the Competition Act, 2002 (Act) and Regulation 5(2) of the Combination Regulation.
The guidance notes provide the scope of information and documents to be submitted along with the form. It also provides clarification regarding eligibility criterion for Green Channel. The CCI issues guidance notes for parties to facilitate them to make a filing before it.
As part of its ongoing and regular efforts to streamline M&A filings process and make it simpler and faster, in August 2019, the CCI introduced an automatic system of approval for combinations under Green Channel and revised Form I to file the notice under Section 6(2) of the Competition Act, 2002 (Act) and Regulation 5(2) of the Combination Regulation.
In case of any other guidance on the information requirement in the Form I, the parties may request Pre-Filing Consultation (PFC) with the officers of the CCI. The parties are encouraged to seek PFC as per the guidelines available on the CCI’s website.
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With a view to strengthen the country’s fight against the corona virus pandemic, the Institute of Chartered Accountants of India ( ICAI ) has appealed its members to contribute towards the emergency fund.
“The COVID-19 pandemic marks an unprecedented time in modern history that will require the best of humanity to overcome. Little would have we realised the unfolding of epidemic like this, which situation is yet unfolding, and have brought the economic momentum to a much lower trajectory. Situation like this would need support to collaborate with the government initiatives to scale up governmental efforts to help those in distress,” the Institute said in a statement.
“At this moment, the affected people in India will need help to tide over the viral disease, and in this scenario, ICAI has decided to stand with our distressed fellow countrymen, and actively participate in the national effort to support them at this difficult time. Due to the ongoing lockdown, much needed on the ground of social distancing and therefore ‘stay home’ advisory from the government; some of our fellow countrymen will need extensive support from the government. Further, we need to contribute to the government initiatives to bolster necessary infrastructure and human ware to fight this epidemic,” the Institute said.
The link to donate the contributions to provide much-needed relief for the people affected by the viral disease and those who are in distress is available in the official website.
As per the press release, the donations can be made through Demand Draft, Cheque, RTGS and online mode; offline collections in form of cheques/demand draft should be given in the name of “ICAI COVID 19 Relief Fund”.
All such offline contributions can be made in the ICAI Bank Account having the following details:
Bank: HDFC Bank
Account No.: 50100098409265
IFSC No: HDFC0000590
The collected amount will be given to PRIME MINISTER’S NATIONAL RELIEF FUND. All contributions towards this Fund are exempt from Income Tax under Section 80G. The donors are requested to give their name, membership number /student registration number, address, amount and date of contribution, PAN details (if any) so that receipts could be obtained from Prime Minister’s National Relief Fund for onward transmission to the donors. The address and other contact details are available in the website.
The Institute of Chartered Accountants of India (ICAI), while addressing the students concerns over the CA Articleship, clarified that such period of lockdown due to COVID-19 pandemic shall be counted as being on articleship training.
In a press release, the Institute said that it has been closely watching the situation arising out of the spread of Novel Coronavirus COVID-19 and the current stage is where the lockout has resulted in the closure of offices and bare minimum CA Articleship training work being made feasible through online means.
“We are all aware that until further orders, such restrictions are going to continue till 14th April 2020,” it said.
“Those who are already registered and undergoing articled training, are hereby informed that the period of absence arising out of said lockdown due to COVID -19 pandemic shall not be counted for the purposes of deduction of any leaves, meaning thereby that such period shall be counted as being on articleship training for the period aforesaid,” the press release said.
“Accordingly, the students who are already undergoing articled training and are appearing for May 2020 and subsequent examinations need not worry on this count for loss of any period not served during the above lockdown. Further, to ease out the situation at both the ends, matters related to timing and manner of payment of stipend in the intervening period arising out of the lockdown, may be mutually decided between the principal and the article assistant,” it added.
On Saturday, an official from the Institute has said the body will analyze the situation in mid-April and will make an appropriate decision regarding the conducting of its May examinations.
The Central Bureau of Investigation ( CBI ) has arrested an Income Tax Officer; an Inspector, both posted at Nagaur (Rajasthan) and a Chartered Accountant in a bribery case of Rs. 4 lakh.
A case was registered on a complaint, against two Income Tax Officers, an Income Tax Inspector, all of them of the Income Tax Department, Nagaur (Rajasthan); a Chartered Accountant and others U/s 120 B of the Indian Penal Code and Section 7 of PC Act, 1988 (as amended in 2018).
The allegations were that these officials of the Income Tax Department demanded a bribe of Rs. 5 lakh from the complainant, through the Nagaur based Chartered Accountant, for settling issues arising out of an Income Tax survey conducted by the Income Tax Department on the business premises of the complainant’s firms and his family members at Nagaur. CBI laid a trap and caught the Chartered Accountant while demanding and accepting the negotiated bribe amount of Rs.4 lakh. During the investigation, an Income Tax Officer and Inspector were also arrested.
Searches were conducted at the residential and office premises of the accused at 10 different places at Nagaur, Jaipur and Merta City (Rajasthan) which resulted in the recovery of incriminating documents.
All the arrested accused will be produced today in the Court of Special Judge, CBI Cases, Jodhpur (Rajasthan).
The Central Board of Direct Taxes (CBDT) has notified the Income Tax (Third Amendment) Rules, 2018 wherein the Government has withdrawn the exemption of Transport Allowance of Rs. 1,600 pm to the salaried class.
Earlier, an exemption of Rs. 1600 was given towards transport allowance to an employee to meet his expenditure for the purpose of commuting between the place of residence and duty.
The Budget 2018-19, pronounced on 1st February 2018 has proposed to withdraw the said benefit to the employees. Now, the Finance Act, 2018 has been passed by the Parliament.
The notification shall come into force on the 1st day of April 2019 and shall apply to the assessment year 2019-2020 and subsequent assessment years.
Salaried employees get a fixed quantity of money or other forms of allowances apart from their salary for specific requirements of the employees. Most allowances are a part of the total income unless they come under some specific exemption under the Income Tax Act. Allowances are given to employees for their services or as compensation for working in unusual conditions.
