The Income Tax Department has introduced the Income Tax Return (ITR) Offline utility for Assessment Year 2021-22. The department has made available the Offline utility of ITR-1 and ITR-4 as of now.
Significant Points to remember
The Offline Utility is enabled only for ITR-1 and ITR-4. Other ITRs will be added in the utility in subsequent releases. The Utility is based on new technology “JSON”.
It is enabled to import and pre-fill the data from an e-filing portal. You can fill the balance data. You can also edit the profile data other than PAN data in the utility, however, it is suggested to edit the same in your Profile at e- filing website and regenerate prefill data.
Facility to upload ITR at the e-filing portal is not enabled. You can fill and save it either within the utility or export output json file to your system. Once filing is enabled, you can upload the same at the e-filing portal.
Upcoming Releases
There are a few add-ons will be enabled in subsequent releases namely Pre-fill data related to tax payments, Upload of ITR, Questionnaire based functionality to help you identify which ITR is applicable to you, Payment of taxes through this utility, and Facility to verify and upload ITR through the utility itself.
Steps to be Followed
Let us understand the execution steps for ITR 1 & ITR 4.
Firstly, Once you access the e-filing portal . You can download the Utility by clicking on Downloads, then Offline Utilities, then select Income Tax Return Preparation Utilities.
It is noteworthy that Windows 7 or later are supported, Intel Pentium 4 processor or later that’s SSE2 capable or AMD K10 or
above core architecture,1.5 GB of RAM or more and HDD – 500 MB or more of free space.
Secondly, On click of link for the Utility presented against ITR-1 or ITR-4, a ZIP file will start getting downloaded on your system. Open the Utility from the extracted folder.
Thirdly, after you Extract the downloaded utility as a ZIP file, open the Utility from the extracted folder. In case you receive this message, you click the “Run Anyway” option in the dialogue box.
Fourthly, once you click on “Run Anyway”, your utility will start installing, after which you can proceed with filing your ITR.
Also Read: JSON enabled only for ITR 1 and ITR 4
Fifthly, As soon as you install the utility, you will be landed to Homepage. Click on “Continue” to fill your Income- tax Return for AY 2021-22.
Sixthly, You will find 3 tabs namely if you are filling the return for the first time, click on “File returns” in this tab, If you have already started to file your return, you can see the draft version of your returns in this tab and click on “edit” and it will show you all pre-filled ITR data you had earlier imported into the utility.
Seventhly, after click on “File returns”, select the radio button to “Import pre-filled data”. On click of this option, the prefilled data already saved by you on your system in .json format can be imported to prefill the information in the income tax return.
Eighthly, enter the “PAN” for whom you want to fill the return and select the “Assessment year” and click on “Proceed”. Assessment Year 2021-22 can only be selected.
Ninthly, Pre-filled json can be downloaded post login to the e-Filing portal from ‘My Account -> ‘Download Pre-Filled for AY 2021-22’ and can be imported to the utility for prefilling the personal and other available details. Attach the pre-filled JSON file from your system and click on “proceed”.
Tenthly, On click of Proceed in earlier screen, you will be navigated to “Income Tax Returns” screen, where you can see the Basic pre-filled details from the imported JSON file. Click on “File Return” to continue.
Eleventhly, select the Status applicable to you and click on “Continue”. Status will be pre-filled based on your last year’s data and will be editable.
Twelfth, Select the ITR type which you want to file from the dropdown and “Proceed”. A user-friendly questionnaire to identify ITR applicable to you will be available in subsequent release of the offline utility.
Thirteenth, click on “Let’s get started” to start filling your return.
Fourteenth, fill the applicable and mandatory fields of the ITR form-> Validate all the tabs of the ITR form and Tax will be calculated.
Fifteenth, after confirming all the schedules, you can Preview and submit your Return.
Sixteenth, you can either “Download” or “Print” the preview by clicking on the respective buttons. You can download the Preview on your system. It will be downloaded in pdf format.
Seventhly, click on “Proceed to validation”, to validate the Return.
Lastly, All the errors need to be validated by the user after that he can “Download JSON”. Just click on the error, you will be navigated to the field related to that error.
Subscribe Taxscan Premium to view the JudgmentThe Central Bureau of Investigation ( CBI ) has arrested the then Superintendent of GST, Hyderabad in an ongoing investigation of a case.
CBI had registered a case on 08.07.2019 against the accused and his wife on the allegations of illicitly enriching themselves to the tune of Rs.3,74,74,046/-.(approx). During the investigation, CBI issued notices under the provisions of the Criminal Procedure Code. However, the accused did not cooperate with the investigation and also did not furnish requisite information/documents pertaining to the case. It was further alleged that the accused had influenced the witnesses and dissuaded the witnesses from joining the investigation & disclosing the relevant facts of the case. It was alleged that the accused had also furnished false & fabricated COVID-19 positive reports in the name of his family members.
The arrested accused was today produced before the Competent Court and was remanded to Judicial Custody till 07.05.2021.
The Ministry of Corporate Affairs (MCA) notified that Spending of Corporate Social Responsibility (CSR) funds for “setting up makeshift hospitals and temporary COVID care facilities” is an eligible CSR activity.
The Government has issued a notification in continuation to the Ministry’s General Circular No. 10/2020 dated March 23, 2020 wherein it was clarified that spending of CSR funds for COVID-19 is an eligible CSR activity.
It has been clarified that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID Care facilities’ is an eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care, and disaster management respectively.
“The companies may undertake the activities in consultation with State Governments subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the circulars related to CSR issued by this Ministry from time to time,” the MCA said.
The Gujarat Authority of Advance Ruling (AAR) ruled that the GST is applicable on a reverse charge basis on the amount paid for reimbursement of Stamp tax as a pure agent.
The applicant, M/s. Enpay Transformers Components India Pvt.ltd. has been engaged in the business of manufacturing and supplying Transformer components. The applicant has stated that the company is importing goods from the Holding company located in Turkey namely M/s. Enpay Endstriyel Pzarlama ve Yatirim A.S. for which the payment terms is 120 days from the date of invoice for import of goods and if the company M/s.Enpay Transformer located in India does not pay the Holding company located in Turkey (outside India) on the due date, the holding company is charging interest on late payment.
The company has obtained bank credit facility from CITI Bank based on the Corporate Guarantee issued by holding company Enpay Endustriyel Pazarlama ve Yatirim A.S. and they have paid Stamp tax in Turkey as per their land rules and they have raised reimbursement invoice of said payment to ENPAY India
The company is importing goods on a CIF basis(cost including freight) and the invoice that is raised by the seller is clearly showing the amount of Sea freight and it is also noted that at the time of Bill of Entry, the assessable value calculated for payment of IGST includes the value of Sea Freight, hence, IGST is already paid on the value of sea freight at the time of customs clearance.
The applicant has sought the advance ruling on the issue of whether the liability to pay GST on Reverse charge arises if the amount is paid as interest on late payment of invoices of imported goods. If yes, then at what rate.
Yet another clarification sought was whether Entry No.10 of Notification No.10/2017 issued under IGST is applicable if the import of goods is made on CIF(Cost including Freight basis) where the supplier is charging sea/ocean freight in his invoice itself and IGST is already paid at the time of Bill of Entry by including the same value of ocean freight in the assessable value.
The Coram of Sanjay Saxena and Mohit Aggarwal ruled that the applicant is liable to pay GST on a reverse charge basis for the amount paid as interest on late payment of invoices of imported goods for the reasons discussed hereinabove. The rate of GST will be the same as the rate of IGST leviable on the imported goods. The AAR further ruled that the applicant is liable to pay GST on a reverse charge basis on the amount paid for reimbursement of Stamp tax paid by the supplier M/s. Enpay Turkey on behalf of the applicant, since the supplier of the applicant, does not fulfill/satisfy all the conditions required for being a ‘Pure agent’ in terms of the provisions of Rule 33 of the CGST Rules, 2017.
Subscribe Taxscan Premium to view the JudgmentThe Institute of Chartered Accountants of India ( ICAI ) has opened the Correction Window for Final, Final New, IPCE, IPCE New CA Exams May 2021.
The ICAI has said that, the Correction window has opened since from April 17th and 17-04-2021 remain open till today midnight i.e. 19-04-2021 (23:59 Hrs IST).
The ICAI provides online facility to correct errors (Exam Centre/ Group/ Medium/ Syllabus) made in CA Foundation/ Intermediate/ Final Exam Application Forms.
With the help of this facility, the students may view and correct mistakes, if any, committed while submitting an online ICAI exam form and they may also apply online to change the ICAI exam center and medium and change opted group and syllabus for Nov 2020 exams. ICAI Online Correction Window for November 2020 exams are available on icaiexam.icai.org. This online facility will be available to the candidates who have submitted their exam application forms online.
This online facility will be available to the candidates, in a single window. Candidates would not be able to seek a change of center/ Group/ medium/ syllabus through Correction Window-II for a fee, after the issue of admit cards for upcoming exams.
The Reserve Bank of India (RBI) replied on the RTI Application in respect of Signing and certification from CA.
Firstly, signing on Project Report for Loan Purposes with seal/UDIN of CA thereon. The query was that if there is specific circular/notification issued by them to the commercial banks demanding signing on Project Reports/CMA Report by CAs while advancing New/ Old Loans.
Giving certification/ Signing on Unaudited balance sheets and on Income Tax Returns of Clients (for those who does not fall under the category of Audit Cases such as Income Tax, Company Act etc) & generating UDIN thereon.
The RBI replied that no specific instructions are issued in this regard. However, it may be noted that credit related issues are mostly deregulated. The Reserve Bank of India has advised banks to have documents of investment policy, loan policy, loan recovery policy etc. prepared and duly vetted by their Boards of Directors. Banks are required to take credit related decisions based on Board approved policies subject to the instructions contained in our Master Circular on “Loans and Advances – Statutory and Other Restrictions” issued vide DBR. No.Dir.BC.10/13.03.00/2015-16 dated July 1, 2015 which is available on RBI’s website under the head ‘Notifications’.
Secondly, if any policy drafted by RBI with such Banks to get Certificate of Know your customer by CA if client is known to him and validity of the same.
The Bank clarified that no specific instructions are issued in this regard.
Subscribe Taxscan Premium to view the JudgmentThe National Informatics Centre (NIC) developed the E-Way Bill System under the Goods and Services Tax ( GST ) regime and has come up with the GST E-Way Bill Journey of 3 Years.
Impact of Functionalities in E-Way Bill system
The system will auto calculate the distance between the source and destination, based on PIN codes. User can enter the actual distance limited to only 10% more than the auto calculated distance. This has controlled the incorrect entry of distance and thereby reduced recycling of EWBs.
If the EWB is once generated using an invoice number or document number, then none of the other parties can generate another EWB using the same invoice number. This has resulted into reduced generation of EWBs on the same invoice number. This has increased the tax compliance.
The system will auto calculate the distance between the source and destination, based on PIN codes. User can enter the actual distance limited to only 10% more than the auto calculated distance. This has resulted into controlled the incorrect entry of distance and thereby reduced recycling of EWBs.
If the EWB is once generated using an invoice number or document number, then none of the other parties can generate another EWB using the same invoice number, which has reduced generation of EWBs on the same invoice number. This has increased the tax compliance.
The transporters and taxpayers may now extend the EWB both in transit or movement, by using the form of extension of validity. This has Facilitated transporters to extend the EWBs for the consignments which have been kept in go-downs for transshipment.
Transporters and Taxpayers can now view their EWBs which are about to expire in a period of 4 days. This helped in managing consignments and EWBs in a more systematic way.
EWB is now integrated with Vahan system. The vehicle numbers entered in EWB system will now be verified for its existence/correctness in Vahan database. The system alerts the user on entry of incorrect vehicle numbers. This has reduced the entry of incorrect vehicle numbers and thereby reduced fraudulent transactions.
If the GST registered taxpayer has not filed Return 3B for the last two successive months in GST common portal, then the GSTIN is blocked for further EWB generation. This has resulted into improved tax compliance at the GST Common portal.
The transporters registered in multiple states can now obtain a common enrolment number for moving the goods, which has helped the transporters to update part-B details during the transshipment which happens when goods move across multiple states.
E-Way Bill is now integrated with the e-Invoicing system. That is with a single request , the E-Way Bill is generated by auto populating the invoice details in Part-A.
Significance of E-Way Bill during Covid-19 Lockdown
During the Covid-19 lockdown the E-Waybill system was one of the vital sources of information of economic activities in the country. The system provided a number of reports for monitoring the essential commodities that moved across the nation. The Covid-19 medical supplies report gave important insights on the type, value and the quantity of the medical items.
Future Proposals
Firstly, the Authority proposes a real time report on Vehicle movement for selected E-Way Bill which will help the officer in knowing the trail of movement by the vehicle.
Secondly, real-time report on vehicles moving without e- Waybills for a selected toll plaza which will help the officer in intercepting only those vehicles which are not having e-waybills.
Thirdly, analysis reports on identifying EWB with no movement of goods which will help the officer in identifying cases of bill trading and circular trading.
Fourthly, analysis reports on the recycling of EWB for tax evasion-prone commodities will help the officer in identifying tax-evading taxpayers.
The Institute of Chartered Accountants of India (ICAI) has clarified regarding the applicability of the provisions of Section 139 of the Companies Act 2013 read with Rule 5 and 6 of the Companies (Audit and Auditors) Rules, 2014.
The query put forth was whether a Proprietary firm (having FRN) or individual CA who is practicing either in his own name or trade name can be appointed for two terms as per Section 139 of Companies Act, 2013.
Section 139 of the Companies Act, 2013 provides that subject to the provisions of this Chapter, every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting and the manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed.
No listed company or a company belonging to two class or classes of companies as may be prescribed, shall appoint or re-appoint namely an individual as auditor for more than one term of five consecutive years and an audit firm as auditor for more than two terms of five consecutive years.
As per Rule 5 and 6 of Companies (Audit and Auditor) Rules, 2014, the Class of Companies who are required to comply with the provisions of Section 139.
Firstly, all unlisted public companies having paid up share capital of rupees ten crore or more; Secondly, all private limited companies having paid up share capital of rupees fifty crore or more.
As per Explanation I to Rule 6 of Companies (Audit and Auditor) Rules, 2014, the term “same network” includes the firms operating or functioning, hitherto or in future, under the same brand name, trade name or common control.
Thirdly, all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more. The ICAI stated that a Proprietary firm (having FRN) or individual CA who is practicing either in his own name or trade name can be appointed as auditor only for one term as per Section 139 of Companies Act, 2013.
The Karnataka Authority of Advance Ruling (AAR) ruled that no GST is applicable on Rent received from Backward Classes Welfare Department.
The applicant, Sri Puttahalagaiah is an individual and owner of the premises and has entered into an agreement with the Extension Officer, Backward Classes Welfare Department, Government of Karnataka to rent out his property to run post metric Girl’s Hostel and constitute rent/ letting out of 10,441 sq.ft building consisting of seven rooms, two halls, 11 toilets, 10 bathrooms and bore well, for a rent of Rs. 1 per month.
The applicant has furnished a magazine published by the Government of Karnataka which pertains to action plan of backward classes Welfare Department 2019-20, where in it is reported that backward Classes Welfare Department has been established for the welfare of backward classes to implement programmes of overall development of backward classes which are notified by the Government of Karnataka.
The Backward Classes Welfare Department is providing hostel facilities to the students of backward classes studying in Government/ Government aided institutions after matriculation.
The applicant is of the opinion that since he is letting out his property to Backward Classes Welfare Department who in turn is using it for welfare of weaker section of the society of the backward classes students where the annual income of the family is less than threshold for the creamy layer, therefore the service provided by him to Backward Classes Welfare Department to run post metric Girl’s Hostel is exempted service as it is covered under Article 243G of the Constitution.
The applicant has sought the advance ruling in respect of the taxability of rent received from Backward Classes Welfare Department.
The coram of Dr. M.P.Ravi Prasad and Mashood Ur Rehman Farooqui noted that the applicant has rented his property to the Backward Classes Welfare Department, Government of Karnataka, who in turn is using the same for providing hostel facilities to the post metric girls of backward classes. This is in relation to the function entrusted to a panchayat under article 243G of the constitution which is covered by the 27th entry of the 11th schedule which says Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes.
The AAR ruled that since the applicant is providing to the State Government pure services by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution, the same is covered under entry number 3 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, and hence is exempted under the CGST Act, 2017. For the same reasons, the activity is also exempted under the KGST Act, 2017.
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The Central Board of Indirect Taxes and Customs ( CBIC ) has enabled the New features of Form GSTR-2B & GSTR-3B made available to taxpayers under QRMP Scheme.
The new features related to the filing of Statement/ Returns by taxpayers under QRMP Scheme, for the quarter Jan-Mar., 2021, which has been made available to them are summarized below.
Auto Generation of Form GSTR-2B, for the QRMP taxpayers
a)Form GSTR-2B contains details of filed IFFs (for Month M1 & M2) & filed Form GSTR 1 (for Month M3).
b)Form GSTR 2B has two sections of ITC i.e. ITC available and ITC not available (which flows from the supplier’s filed IFF & Form GSTR-1, imports, etc). It also contains the tax liability of the taxpayer (which flows from the taxpayer’s own filed IFF & Form GSTR-1).
c)Taxpayers can view and download their system generated Quarterly Form GSTR-2B for Jan-March, 2021 quarter, by clicking on the Auto-drafted ITC statement for the quarter on 14th April 2021, by selecting the last month of the quarter (M3).
d)The default view of Form GSTR-2B is quarterly. However to view Form GSTR-2B of a particular month (M1, M2 or M3), taxpayer has an option to select appropriate month, from the view drop-down to view that month’s data.
e)A hyperlink ‘View advisory’ has also been provided, which on clicking displays the criteria/ cut-off dates considered for quarterly GSTR-2B as a pop-up, with details of Supplies from/type i.e. Monthly taxpayer, Taxpayer in QRMP Scheme, NRTP, ISD & Import from Overseas/SEZs, and ‘From date’ and ‘To date’ based on which Form GSTR-2B has been generated.
Auto-population of ITC in Form GSTR-3B for the QRMP taxpayers
a) Figures of ITC available and ITC to be reversed will now be auto-populated in Table 4 of Form GSTR-3B, for the QRMP taxpayers, from their system generated quarterly Form GSTR-2B.
b) On the GSTR-3B dashboard page, an additional button ‘System computed GSTR-3B’ has also been provided, by clicking which system computed Form GSTR-3B can be downloaded in PDF format.
c) Taxpayer can edit the auto-drafted values as per their records and save the updated details.
d) The system will show a warning message to taxpayers in case ITC available is increased by more than 5% or ITC to be reversed is reduced even partially, by them. However, the system will not stop the filing of Form GSTR-3B in such cases.
The Central Board of Indirect Taxes and Customs ( CBIC ) has updated GST Return Forms GSTR-1, GSTR-3B, and Matching Offline Tool for taxpayers in QRMP Scheme.
With effect from 1st January, 2021, all taxpayers with Annual Aggregate Turnover up to Rs 5 Crore have been given an option to file their Form GSTR-1 Statement and Form GSTR-3B return on a quarterly basis. They also have an option to file B2B invoice details in Invoice Furnishing Facility (IFF) for months 1 and 2 (eg. Jan and Feb) of the quarter in order to pass on the credit, whereas the remaining invoices have to be declared in the Quarterly Form GSTR-1 of Month 3 (e.g. March).
The salient points related to filing of Form GSTR-1 Statement & auto-population of liability in Form GSTR-3B for taxpayers under QRMP Scheme for the quarter Jan-Mar., 2021, are summarized below:
a)Before filing Form GSTR-1, taxpayers may note the following:
| Period | Type of Statement | If in saved state | If in submitted state | After filing |
| Jan. & Feb., 2021 | IFF | RESET to delete the saved records and then add these details in Form GSTR-1 (Quarterly) before filing | File IFF before filing Form GSTR-1 (Quarterly) | Invoices filed in IFF in Jan and Feb need not be entered again in Form GSTR-1. If these are entered again, portal will give an error at save stage itself. |
b)Liability in Table-3 [except 3.1(d)] of Form GSTR-3B, for the taxpayers under QRMP Scheme, will be auto-populated on the basis of IFF filed, if any, for the Jan and Feb months and quarterly Form GSTR-1 for the Quarter. Liability on account of inward supplies attracting reverse charge in Table 3.1 (d) is auto-populated from the taxpayer’s FORM GSTR 2B. The System computed liability will also be made available in PDF format on taxpayer’s GSTR-3B (Quarterly) dashboard.
Note: Data in Saved/ Submitted stage in Form GSTR-1 or in IFF, will not be auto-populated as Liability, in Table-3 of Form GSTR 3B.
II.Matching Offline Tool
a) The Matching Offline Tool has been updated for taxpayers under QRMP Scheme. In the Matching tool dashboard page, an option to select the quarter has been provided and in the purchase register, quarters Apr-Jun, Jul-Sep, Oct-Dec and Jan-Mar have been added to the tax periods. b) The system generated Form GSTR-2B JSON file can be used for matching details with their purchase register, using the updated Matching Offline Tool. Taxpayers can now navigate Services > Returns > Returns Dashboard, select the Financial Year and Return Filing Period > SEARCH and click on Download button on Auto – drafted ITC Statement – GSTR -2B tile to download system generated Form GSTR-2B JSON file.
The Indian Government is open to engaging in discussions around the minimum global corporate tax being initiated by the United States (US) and said that the issue of equalisation levy or digital taxes should also be addressed positively.
The Biden administration in the US is calling for the world’s biggest multinational companies to pay levies to national governments based on their sales in each country, as part of an ambitious proposal for a global minimum tax.
Biden hopes the promise of a more stable international tax system will stop the proliferation of national digital taxes and break the mould of tax avoidance and profit-shifting.
As per the tax experts the new concessional tax of 15 per cent being offered by India for manufacturing companies could be threatened by the proposals, and there is a need for a careful calibration to the new regime.
The government sources said that while taxation is ultimately a sovereign function, and depends upon the needs and circumstances of the nation, the government is open to participate and engage in the emerging discussions globally around the corporate tax structure.
The economic division and tax department will look into the pros and cons of the new proposal as and when it comes and the government will take a view thereafter, the Government added.
India has faced threats from tax havens, in the past and presently also many startups are moving to Singapore to exploit the tax arbitrage, which strictly needs to be addressed.
The Government sources, while pointing out the critical aspects said, “if they are proposing this global minimum level, then why the opposition to equalization levy, why these double standards? We also need to note that the earlier big cases under litigation, in case of a telecom and an energy company, are also due to companies exploiting residency in tax havens, even though entire business presence and income is generated in India.”
The equalisation Levy was introduced in India in 2016, with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India. It is aimed at taxing business to business transactions.
Currently, applicable rate of tax is 2% of the gross consideration to be paid, earlier the equalisation levy was at the rate of 6%.
For example, Google charges Rs. 10,00,000 from Flipkart for providing advertising service, then Flipkart shall pay Google only Rs. 9,80,000 after charging equalisation levy of Rs. 60,000 (10,00,000 @ 2%).
The Delhi High Court while dismissing the writ petition in respect of the Income Tax Demand against BT India.
The question which arose for consideration is: whether the proceedings under Sections 201(1) and 201(1a) of the Income Tax Act, 1961 could have been initiated without the concerned officer determining the jurisdictional issue as to whether the remittances made were chargeable to tax.
Mr. Ajay Vohra, learned Senior Counsel, who appears on behalf of the petitioners, i.e., the deductors, says that this was the issue which the concerned officer ought to have decided at the very threshold.
On the other hand, Mr. Aggarwal, who appears on behalf of the revenue submitted that there are several recipients in relationwhose deductions had to be made by the petitioners apart from BT Plc. It is also Mr. Aggarwal’s submission that in two assessment years i.e., 2012-2013 and 2013-2014, the petitioners have taken recourse to the remedies available under the Act.
Mr. Aggarwal goes on to submit that only a show-cause notice has been issued and therefore, this Court ought not to interfere at this stage in exercise of powers under Article 226 of the Constitution.
The division bench of Justices Rajiv Shakdher and Talwant Singh said that the record shows that the application of AAR was admitted as far back on August 7, 2015. Therefore, a large part of the problem, to say, has its genesis in the AAR not acting with due alacrity.
However, the court after having regard to the submissions of the parties, was of the view that, for the moment, the captioned writ petitions can be disposed of with the various directions.
Firstly, the concerned authority will adjudicate the impugned show cause notices qua which we are told that the petitioners have filed their replies.
Secondly, while carrying out the adjudication, the concerned authority will in the first instance determine as to whether or not the jurisdictional facts obtain in the matter i.e. whether the remittances in issue are chargeable to tax.
Thirdly, the concerned authority will, therefore, in the first instance pass an order on this aspect of the matter.
Fourthly, the concerned authority in this behalf will give personal hearing to the authorized representative of the petitioner, which will include the advocate engaged by the petitioner.
Fifthly, a speaking order will be passed and a copy of the same will be furnished to the petitioner.
Sixthly, the petitioner will have liberty to assail the same as per law by taking recourse to an appropriate remedy.
Seventhly, in case, the order passed is adverse to the interests of the petitioner, the same will not be given effect for four weeks, commencing from the date the said order is served on the petitioner. Lastly, in case, the concerned authority feels it is necessary to await the decision of the AAR in the matter concerning BT Plc, it will be free to take this aspect into account as well.
Subscribe Taxscan Premium to view the JudgmentThe Institute of Cost Accountants of India (ICMAI) notified the exemption from Practical Training for the June 2021 Term of Final Examination.
The ICMAI’s Council decided that the Practical Training requirement which is required to be completed before appearing CMA Final Examination (both or remaining groups) to be exempted only for the June 2021 Term of Final Examination due to COVID-19 pandemic situation.
Therefore, the candidates for the June 2021 Term of Final Examination are not required to undergo Practical Training.
The Institute of Cost Accountants of India (ICMAI) has extended the time period granted to undergo Mandatory Capacity Building Training (MCBT) upto 31st December, 2021.
The practicing members who have taken the Certificate of Practice (COP) during the period 1st February, 2019 to 31st March, 2021 and have not undergone the MCBT and have to renew their COP for the year 2021-22 needs to register and undertake MCBT.
If the COP of the practising members is not renewed for the year 2021-22 due to not undertaking MCBT, it might cause hardship to those members who survive exclusively on practice notwithstanding the fact that compliance of the notified conditions as per the Notification dated 15 February, 2019 and subsequent corrigendum dated 8th March, 2019.
“It has been decided to grant extension of time for successful completion of Mandatory Capacity Building Training (MCBT) upto 31st December, 2021 to the practicing members who have taken Certificate of Practice (COP) during the period 1st February, 2019 to 31st March, 2021 and have not undergone the Mandatory Capacity Building Training (MCBT) and desirous of renewing their COP for the year 2021-22,” the Institute announced.
The Central Bureau of Investigation ( CBI ) has registered a case on the allegations that a Commissioner of Income Tax (Appeals), Udaipur while working as a public servant in different capacities in the Income Tax Department and her husband a Group General Manager (S & T), Rail Vikas Nigam Limited (RVNL), Jodhpur acquired huge movable & immovable assets during the period from April 2010 to June 2018 in their names, which were disproportionate to their known sources of income to the tune of Rs.5,53,16,763/-.(approx).
Searches at residential & office premises of accused have been conducted at Jaipur, Jodhpur and Udaipur which resulted into recovery of incriminating documents including acquisition of immovable assets worth Rs. 7.96 crore (approx); Bank balance/FDRs of Rs.70.4 lakh(approx); cash of Rs. 13.20 lakh (approx), jewellery, and also found some lockers in various banks at Jodhpur, Jaipur and Udaipur.
Investigation is continuing.
The Institute of Chartered Accountants of India ( ICAI ) has extended the Cut-off date for conversion from Earlier Scheme to Revised Scheme to appear in May/June 2021 Examinations at all levels – 12th April, 2021.
The ICAI said that, Students who have not yet converted themselves from Earlier Scheme to Revised Scheme of Education and Training implemented w.e.f. 1st July, 2017 to appear in Foundation, Intermediate and Final Examinations being held under Revised Scheme in May/June, 2021 are required to convert themselves latest by 12th April, 2021.
For conversion from the Earlier Scheme to the Revised Scheme of Education and Training, the students may visit Self Service Portal here.
The Central Bureau of Investigation ( CBI ) has arrested two Inspectors working at the Investigation Unit of Income Tax Department, Ballard Pier, Mumbai for accepting a bribe of Rs.15 Lakh from the complainant.
CBI has registered a case against three Inspectors, all working at Investigation Unit-1, Income Tax Department, Ballard Pier, Mumbai on the allegations that the accused demanded undue advantage of Rs. 15 Lakh for helping the complainant in the investigation being conducted by the Income Tax Authorities.
CBI laid a trap and caught two Inspectors of Income Tax while accepting the bribe of Rs.10 Lakh and Rs. 5 Lakh respectively from the complainant. CBI incidentally nabbed one of the said accused while he was running away at the time of his apprehension.
Searches at two places in Mumbai and one place in Delhi at the residential & office premises of the accused are being conducted. This led to the recovery of cash of Rs. 7 Lakh (approx) and incriminating documents relating to an investment in commercial & residential properties from one of the accused. Both the arrested accused are being produced today in the Special Court for CBI Cases, Mumbai.
The Goods and Services Tax Network ( GSTN ) has issued Advisory on Auto-population of E-Invoice details into GSTR-1.
For the month of March, 2021, the auto-population of e-invoices into GSTR-1 (of March, 2021) is still in progress and is likely to take some more time. Hence, notified taxpayers who are reporting e-invoices, are hereby advised not to wait for the complete auto-population, and instead proceed with preparation and filing of GSTR-1 for March, 2021 (by the due date), based on actual data as per their records.
To check whether a HSN Code is valid or not, please visit GST Portal:www.gst.gov.in > Services > User Services > Search HSN Code. The HSN Master for download in excel format will also be published shortly on the same page.
If HSN of any Goods/Service is otherwise valid but not available in the HSN master, kindly raise a ticket on GST Self-Service Portal: https://selfservice.gstsystem.in/. Additional FAQs on e-invoice released. The new version of FAQs can be accessed HERE . (Note: New additions and changes in this version are marked in blue).
For the benefit of taxpayers, a concise ready reckoner on e-invoice is released in English as well as Hindi. Please find the same here: https://www.gstn.org.in > Our Projects > e-invoice > At a Glance > e-invoice – At a Glance / e-invoicing – Ek Nazar Me
The President of India, in exercise of the powers conferred by clause (2) of Article 124 of the Constitution of India, appointed Shri Justice Nuthalapati Venkata Ramana, Judge of the Supreme Court, to be the Chief Justice of India.
A notification in this regard has been issued by the Department of Justice, Ministry of Law & Justice today. The Warrant of Appointment and a copy of the Notification of Appointment have been handed over to Shri Justice N. V. Ramana.
Justice Nuthalapati Venkata Ramana, will take over as the Chief Justice of the Supreme Court of India on 24th April, 2021. He will be 48th Chief Justice of India.
He is first-generation lawyer, having agricultural background, and hails from Ponnavaram Village, Krishna District in Andhra Pradesh. He is an avid reader and literature enthusiast. He is passionate about Carnatic music.
He was called on to the Bar on 10.02.1983. He practiced in High Court of Andhra Pradesh, Central and Andhra Pradesh Administrative Tribunals, and the Supreme Court of India. He specialized on Constitutional, Civil, Labour, Service and Election matters. He has also practiced before Inter-State River Tribunals.
During his practice years, he was a Panel Counsel for various Government Organizations and as Additional Standing Counsel for Railways in the Central Administrative Tribunal at Hyderabad before rendering services as Additional Advocate General of Andhra Pradesh.
Justice Nuthalapati Venkata Ramana served as puisne Judge of the Supreme Court of India from 17.02.2014. He served as Chairman, Supreme Court Legal Services Committee from March 7, 2019 to November 26, 2019. He has also served as the Executive Chairman of National Legal Services Authority (NALSA) since 27.11.2019. Initially he was appointed as a Permanent Judge of Andhra Pradesh High Court on 27.06.2000. He also functioned as Acting Chief Justice of his parent High Court from 10.3.2013 to 20.5.2013.
The Delhi High Court ruled that the tribunal rightly deleted additions towards Pre-operative expenses, Advertising expenses.
The assessee, Miele India is in the business of trading and therefore, expenses incurred prior to the commencement of business were rightly added back by the AO. In support of this plea, it was pointed out that the AO has indicated that the assessee in his written note had stated that its business commenced on October 29, 2009. It was submitted that the ‘experience centre’ was launched only on October 29, 2009 and therefore, that had to be taken as the actual date when the assessee had set-up its business.
The mere fact that the assessee obtained stock of the goods, that it intended to trade in, was not enough. Since the assessee is a trading entity, it needed an outlet such as an experience centre for conducting its business; which, as indicated above, was set-up only on October 29, 2009.
Mr. Shlok Chandra, counsel behalf of the revenue, has assailed the order of the Tribunal in respect of two issues namely deletion of the addition made by the assessing officer towards pre-operative expenses and advertising expenses.
Mr. Chandra urged that the Tribunal had erred in deleting the addition made qua advertising expenses by ignoring the fact that the said expenses had been incurred to build goodwill.
In other words, the argument was that if the expenses were capital in nature, it could not have been treated as revenue expenses.
On the other hand, Mr. Piyush Kaushik, who appears on behalf of the assessee, submitted that there is a difference between the setting-up of business and commencement of business; as long as the assessee is ready to carry on business and there are facts and circumstances obtaining in a case, which point in this direction, then, it can be safely concluded that the business has been set-up and, therefore, any expenses incurred would have to be allowed as a deduction.
The division bench of Justice Rajiv Shakdher and Justice Talwant Singh said that the expenditure incurred being a business expenditure, which was incurred wholly and exclusively for the purposes of business, and did not lead to the creation of a capital asset in the assessment year in issue, ought to have been allowed by the AO.
“The rationale adopted by the A.O. for disallowing the expenditure was completely flawed. Goodwill, which is built, based on the reputation acquired by the business over the years, is an intangible asset, which is monetized, ordinarily, when the business is sold. Therefore, for the A.O. to disallow advertising expenditure on this basis was completely erroneous,” the court observed. Therefore, the court while dismissing the revenue’s appeal held that the expenditure was incurred for the subject AY and, therefore, the addition made by the AO was rightly deleted by the CIT(A), a decision which was sustained by the Tribunal.
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