Govt Prescribes Method for Payment of Tax on issuance of Invoice by Registered Persons having Turn Over less than Rs 1.5 crores [Read Notification]
Read more at: http://www.taxscan.in/govt-prescribes-method-payment-tax-issuance-invoice-registered-persons-turn-less-rs-1-5-crores/12097/
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*#GST*
September GSTR3B due date is 20.10.2017 . And will not be extended so file well before time says govt.
# *GST Notifications issued* of recent GST Council Decisions
*1. Exemption from Charging GST on reverse charge basis u/s.9(4) of CGST Act*
CBEC has issued Notification No. 38/2017 – Central Tax (Rate) dated 13.10.2017 providing exemption to registered persons from paying CGST under reverse charge on supply of goods or services from unregistered person to registered person till 31.03.2018. The similar notification is also issued for IGST.
http://www.cbec.gov.in/htdocs-cbec/gst/notfctn-38-cgst-rate-english.pdf
*2. No GST on advance payment for small taxpayers*
Registered person whose aggregate turnover in the preceding financial year did not exceed 1.5 crores or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than 1.5 crores and who did not opt for the composition levy under section 10 of the CGST Act, 2017 shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act. Accordingly, such persons shall be not be liable to pay tax on advance received by them.
http://www.cbec.gov.in/resources/htdocs-cbec/gst/notfctn-40-cgst-english.pdf
*3. Issue of single Invoice cum bill of supply*
Registered person supplying taxable as well as exempted goods or services or both to an unregistered person shall issue a single “invoice-cum-bill of supply” for all such supplies.
http://www.cbec.gov.in/resources/htdocs-cbec/gst/notfctn-45-cgst-english.pdf
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CBEC notifies Deferment of Reverse charge on Unregistered Suppliers Vide Notification No. 38 (CGST(Rate)) dt 13-10-17 till March 31, 2018. The notification has not mentioned any clear date of its applicability.
CBEC issued Press Release dated 12 Oct, 2017 regarding Leasing of vehicles purchased and leased prior to 1st July, 2017 would attract GST at a rate equal to 65% of the applicable GST rate (including Compensation Cess).
GST Council to take up real estate in November meeting and Aadahaar could be made manadatory for buying internationl air tickets and cars.
Delhi High Court has issued notice to the MCA and RoC on a petition challenging the disqualification of more than one lakh directors of shell companies. High Court also stayed the disqualification of three such directors.
DIPP has launched a Scheme of budgetary support under GST Regime to the units located in States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim for a residual period for which each of the units is eligible, a new scheme is being introduced.
RBI proposed retail customers access to the currency trading platform, and that prices should be in line with the inter-bank market through an in built mechanism on the platform.
The Director General of Foreign Trade has made amendments in Para 5.25 (Re-Export / Repair / Replacement of Capital Goods Imported under EPCG Scheme) of the Handbook of Procedures (HBP) of FTP 2015-20, with immediate effect.
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📺 *Updates*
➡1. Threshold limit for GST registration is also applicable for persons making inter-State supplies of services
➡2. Apex Court lays down guidelines for designating Senior Advocates by SC and all HCs
https://corporatelaws.taxmann.com/fileopennew.aspx?id=101010000000177184&mode=home&page=
➡3. Material produced before SetCom could be used by AO if SetCom proceedings got abated.
Vikas Shipping Corporation v. Union of India.
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#Economy: Exports grew at a six-month-high rate of 25.7% in Sept year-on-year, maintaining the momentum of 13 months of interrupted rise and despite the problems of getting refunds under the GST regime.This was the second month of exports expanding in double digits after outbound shipments were up 10.29% in August. The country exported goods worth $28.61 billion in September against $22.76 billion in the same month last year.In the third month into the GST, export growth picked up mainly owing to rising global crude prices, which pushed up processed petroleum exports by nearly 40%, apart from a broad-based improvement in exports of major foreign exchange earners such as engineering goods and gems and jewellery.
#Finance:Having ruled out further extension of the date for filing Goods and Services Tax Returns, the Govt said the October 20 deadline to file the GSTR-3B would not be extended. It also said that real estate, a major area of tax evasion and black money generation, could soon be brought under GST.
#The benchmark Nifty closed at a new record high on Friday after economic data surprised positively. The rupee ended three-week high of 64.93 against the dollar, while the yields on the 10-year benchmark government security softened two basis points to 6.73. The Nifty gained 71 points, or 0.7 per cent, to close at an all-time high of 10,167, surpassing its September 18 record. The consumer inflation for Sept held steady, against expectations of acceleration, and industrial output hit high a nine-month high, data released on Thursday showed. Market players said the reading sparked hopes of an economic recovery and of a less hawkish stance from the central bank.
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Quick Reference to " Audit Committee" :-
Legal Provision:-
Section 177 of Companies Act, 2013.
Rule 6 of Companies ( Meetings of Board and it's Powers ) Rules, 2014.
Regulation 18 of SEBI ( LODR ) Regulations, 2015. ( Applicable in case of Listed Company ).
Rule 6A of Companies ( Meetings of Board and it's Powers ) Second Amendment Rules, 2015.
Points :-
1. The Audit Committee especially deals with Fiscal Matters and Auditors of the Company.
2. Applicability:-
#Listed Company.
# Public Co having paid up Capital of ₹ 10 Cr or +.
# Public Company having Turnover of ₹ 100 Cr or +.
# Public Company having O/S loans , Debentures, Borrowings, Deposits of 50 Cr or +.
3. Composition:-
Minimum 3 Directors with majority of Independent Director. ( 2/3rd shall be independent directors in case of Listed Companies as per LODR ).
4. Meeting :-
The audit committee shall meet at least four times in a year and not more than one hundred and twenty days shall elapse/gap between two meetings. ( In case of Listed Company ).
5. Vigil Mechanism is also a Part of Audit Committee.( Rule 7 ).
6. Audit Company Mainly Examine the Financial Statement and Scrutiny of Various aspects wrt Finance of Company.
7. The Audit Committee recommend for Appointment and Remuneration of Auditors of the Company.
8. The Members of the Audit Committee should able to read and understand the Financial Statements.
9. All related Party transactions shall require approval of Audit Committee . Audit Committee can make omnibus approval for transactions upto the value of ₹ 1 crore per transaction.
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STEPS TO FILE GSTR 2
1. Log in to the GST portal with valid credentials (User Id, Password).
2. Navigate to the GSTR 2 home page through >Return Dashboard> Select Financial Year(2017-18) and Return Filing Period and click on Search button> Click on PREPARE ONLINE option on GSTR 2 tab.
3. You will find 12 tiles on GSTR 2 page for entering data for different sections of GSTR 2.
Click on ‘GENERATE GSTR 2 SUMMARY’ to ensure that auto-populated details become available in your GSTR 2.
4. Click on each tiles and enter the required details and save to prepare the return.
5. Accept, Modify, Reject and Keep Pending auto-populated invoices /credit /debit notes
with ‘submitted’ status uploaded by the registered suppliers in their submitted GSTR 1 on the basis of records available with you and declare the Eligibility of ITC and ITC availed/reduced in section tile 3.4A or 6C.
6. One of the above four actions is mandatory on all auto-populated invoices with ‘submitted’ status available in your GSTR 2.
7. The GSTIN of the supplier, invoice number, invoice date, invoice type, reverse charge flag & POS cannot be modified. If one wants to change these fields one has to reject such auto-populated details and add them as missing invoice details.
8. Missing invoices/debit/credit notes details (not uploaded by suppliers but you have these documents) can be added through the ‘Add Missing Invoices’ tab in sections 3.4A or 6C.
The invoices of same supplier with same number but different date cannot be added as missing invoice if these are available as auto-populated invoice with ‘submitted’ status in
the recipients GSTR 2.
9. Invoice details which are saved by the supplier and not submitted are also available in GSTR 2 with ‘saved’ status. The details of such invoices can be added though missing invoice tab. This has been done to facilitate quick updation of invoices.
10. Furnish the invoice/credit debit note details of supplies of goods and services received from unregistered supplier and the Eligibility of credit and credit availed/reduced on them.
11. Furnish the invoice/credit debit note details of import of services and the Eligibility of credit and credit availed/reduced on them.
12. Provide the Bill of entry wise details of goods imported from outside of India or received from SEZ units and the Eligibility of credit and credit availed on them.
13. Provide summary details of
a. Advances received and liability on them
b. Adjustment of advance tax paid earlier for supplies made in the tax period
c. Consolidate values of inward supplies from composition taxpayers, nil rated, other exempt and non GST
d. Reversals and Reclaim of ITC under different provisions of GST law.
e. HSN summary of inward supply
14. After providing the above details in applicable tiles click on ‘GENERATE GSTR 2 SUMMARY’ to update the tiles summary. Remember that initially the tile summary is zero even though there are auto-populated invoices available in your GSTR 2. The summary on the tiles is summary of invoices/debit/credit notes accepted/modified and added by you and other details. The System takes around 10 minutes to create a Generate GSTR 2 summary report.
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15. GSTR 2 can be prepared online if the invoice numbers are few, around 100. If the auto-populated invoices are large, it is advisable to use offline tool for preparing GSTR 2. The offline tool can be downloaded from https://www.gst.gov.in/download/returns
16. After you have prepared GSTR 2 using Offline Tool, generate JSON file using offline tool. The key steps for preparing GSTR 2 through offline tool are as follows
a. Download the version 2.0 of Return Offline tool.
b. Extract and Install it on your Computer. An icon will be created on the Desktop of your computer
c. Download the auto-populated file of GSTR 2 by clicking on prepare offline tab on GSTR 2 tiles on Return home page and generating the download file by clicking on
“Download data for GSTR 2” and clicking on the file/s generated after some time.
d. Open the downloaded file in the offline tool and prepare your GSTR 2 by taking action on the auto-populated invoices with submitted status and furnishing other
required details. A JSON file can be generated by clicking on Generate JSON tab.
e. Log in the portal and upload the generated JSON file.
f. The downloaded file opened in the offline tool can also be exported as an excel file and the actions of Accept /Reject /Modify/Keep Pending can be stated in the action taken column of the excel file and other details furnished in the different worksheets to prepare the excel file of GSTR 2. This excel file can then be imported in the offline tool and a JSON file prepared which can then be uploaded to the portal to prepare your GSTR 2.
17. Click on ‘preview’ and download the draft preview report as pdf document and verify the entered data with your accounting records. In case of any discrepancy correct the furnished data.
18. Ensure, there is no error in the furnished data. Remember, once you submit your GSTR 2, you cannot make any changes in the GSTR 2. Any changes can then be made only in next tax period GSTR 2 through amendment tables.
19. Click on Submit button to submit the GSTR 2.
20. Click on File Return button, and file the return with applicable mode of electronic signature (DSC/EVC) after selecting the authorized signatory.
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After the GST Council’s decision of rationalizing the GST Reverse Charge in its last meeting we were all awaiting the Relevant Notifications. Today i.e. 13th October, 2017 the Notifications are released as per details hereunder:-
No. 38/2017 - Dated: 13-10-2017 - CGST Rate à Under CGST
No. 32/2017 - Dated: 13-10-2017 - IGST Rate à Under IGST
No. 38/2017 - Dated: 13-10-2017 - UTGST Rate à Under UTGST
Pursuant to above notifications, reverse charge has been suspended till 31.3.2018 w.e.f 13.10.2017 i.e. the date of Relevant Notifications.
It is Important to Note that notifications are suspending the Reverse Charge Provisions only pursuant to Section 9(4) of the CGST Act, 2017, Section 5(4) of the IGST Act, 2017 & Section 7(4) of the UTGST Act, 2017 respectively.
Hence all cases where the Liability to Pay Reverse Charge was casted on Registered Dealers where the Inward Supply was from Unregistered Dealers shall only stand exempted for such Registered Dealers. Other cases of Reverse Charge i.e. Notified Categories viz GTA etc or E-Commerce Operator’s RCM shall still Continue.
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*Notifications issued* of recent GST Council Decisions
*1. Exemption from Charging GST on reverse charge basis u/s.9(4) of CGST Act*
CBEC has issued Notification No. 38/2017 – Central Tax (Rate) dated 13.10.2017 providing exemption to registered persons from paying CGST under reverse charge on supply of goods or services from unregistered person to registered person till 31.03.2018. The similar notification is also issued for IGST.
http://www.cbec.gov.in/htdocs-cbec/gst/notfctn-38-cgst-rate-english.pdf
*2. No GST on advance payment for small taxpayers*
Registered person whose aggregate turnover in the preceding financial year did not exceed 1.5 crores or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than 1.5 crores and who did not opt for the composition levy under section 10 of the CGST Act, 2017 shall pay the central tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act. Accordingly, such persons shall be not be liable to pay tax on advance received by them.
http://www.cbec.gov.in/resources/htdocs-cbec/gst/notfctn-40-cgst-english.pdf
*3. Issue of single Invoice cum bill of supply*
Registered person supplying taxable as well as exempted goods or services or both to an unregistered person shall issue a single “invoice-cum-bill of supply” for all such supplies.
http://www.cbec.gov.in/resources/htdocs-cbec/gst/notfctn-45-cgst-english.pdf
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Govt Expands the List of ‘Handicrafts Goods’ [Read Notification] #GST #TaxNews
Read more at: http://www.taxscan.in/govt-expands-list-handicrafts-goods/12113/
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Govt Empowers State Tax Officers for Processing and Grant of Refund under CGST Act [Read Notification]
Read more at: http://www.taxscan.in/govt-empowers-state-tax-officers-processing-grant-refund-cgst-act/12089/
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Govt Prescribes Method for Payment of Tax on issuance of Invoice by Registered Persons having Turn Over less than Rs 1.5 crores [Read Notification]
Read more at: http://www.taxscan.in/govt-prescribes-method-payment-tax-issuance-invoice-registered-persons-turn-less-rs-1-5-crores/12097/
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Due Date for Filing July to September Returns by Person Supplying Online Information and Database Access or Retrieval Services Extended till 20th Nov [Read Notification]
Read more at: http://www.taxscan.in/due-date-filing-july-september-returns-person-supplying-online-information-database-access-retrieval-services-extended-till-20th-nov/12093/
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CBEC has given effect to few GST Council Decisions through few notifications. These are as under:
- Persons making inter-State supplies of taxable Services exempted from registration under GST if turnover on all India basis is below Rs. 20 Lakhs (10 Lakhs for special category states) - http://lunawat.com/Uploaded_Files/Attachments/F_3837.pdf
- Exemption from payment of tax under RCM u/s 9(4) of CGST Act, 2017 till 31.03.2018 - http://lunawat.com/Uploaded_Files/Attachments/F_3838.pdf
- Amendment made to notification no. 32/2017-CT dated 15.09.2017 to add certain items to the list of “handicrafts goods” - http://lunawat.com/Uploaded_Files/Attachments/F_3829.pdf
- State Tax Officers cross-empowered for processing and grant of GST Refund - http://lunawat.com/Uploaded_Files/Attachments/F_3830.pdf
- Notifies registered persons having aggregate turnover less than Rs 1.5 crores, the time for making payment and furnishing details and returns under GST - http://lunawat.com/Uploaded_Files/Attachments/F_3831.pdf
- Time limit for filing of FORM GSTR-4 extended to 15th November 2017 - http://lunawat.com/Uploaded_Files/Attachments/F_3832.pdf
- Time limit for filing of FORM GSTR-5A extended to 20th November 2017 - http://lunawat.com/Uploaded_Files/Attachments/F_3833.pdf
- Time limit for filing of FORM GSTR-6 extended to 15th November 2017 - http://lunawat.com/Uploaded_Files/Attachments/F_3834.pdf
- Time limit for submission of FORM GST ITC-01 extended to 31st October 2017 - http://lunawat.com/Uploaded_Files/Attachments/F_3835.pdf
- CGST Rules, 2017 amended for amending GSTR1, GSTR 1A, and others - Not. dated 13.10.2017 - http://lunawat.com/Uploaded_Files/Attachments/F_3836.pdf
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Kerala HC releases Detained Goods since State has No Power to make Rules to regulate Inter-State movement of Goods under GST [Read Judgment]
Read more at: http://www.taxscan.in/kerala-hc-releases-detained-goods-since-state-no-power-make-rules-regulate-inter-state-movement-goods-gst/12075/
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*⭐Exemption from payment of tax under 9(4) of CGST and 5(4) of IGST⭐*(RCM)
All Intra-state and Inter-state transaction from unregistered dealers are made exempt from 13th Oct, 2017 vide notification No. 38/2017- Central Tax (Rate) and NN. 32/2017 Integrated Tax (Rate) till 31-03-2018.
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District Tax Bar Association, Moga Moves Representation on Difficulties faced by dealers under GST regime
Read more at: http://www.taxscan.in/district-tax-bar-association-moga-moves-representation-difficulties-faced-dealers-gst-regime/12079/
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Govt Extends Timelimit for Filing ITC-01 to 31st October [Read Notification] #TaxNews #GST #GSTNews #Taxscan
Read more at: http://www.taxscan.in/govt-extends-timelimit-filing-itc-01-31st-october/12082/
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*Much awaited Notification issued*
Notification No. 38 (Central Tax) to amend notification no. 32/2017-CT dated 15.09.2017 so as to add certain items to the list of “handicrafts goods”
Notification No. 39 (Central Tax) to cross-empower State Tax officers for processing and grant of refund
Notification No. 40 (Central Tax) to make payment of tax on issuance of invoice by registered persons having aggregate turnover less than Rs 1.5 crores
Notification No. 41 (Central Tax) to extend the time limit for filing of FORM GSTR-4
Notification No. 42 (Central Tax) to extend the time limit for filing of FORM GSTR-5A
Notification No. 43 (Central Tax) to extend the time limit for filing of FORM GSTR-6
Notification No. 44 (Central Tax) to extend the time limit for submission of FORM GST ITC-01
Notification No. 45 (Central Tax) to amend the CGST Rules, 2017
To Download the Notification please click on the following Link
http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-notfns-2017
*Notification No. 38 (Central Tax Rate) to exempt RCM payment of tax under section 9(4) of the CGST Act, 2017 till 31.03.2017*
To Download the Notification please click on the following Link
http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-rate-notfns-2017
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MCA on 6th October, 2017 directed all ROC and RD regarding the approval of applications within one week for appointment of new directors in the companies where all the directors stand vacated due to disqualification under section 164(2)(a) r/w 167(1) of the Companies Act, 2013.
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ITAT Quashes Re-Assessment under Wealth Tax Act since Reasons for Assessment was not intimated to Assessee [Read Order]
Read more at: http://www.taxscan.in/itat-quashes-re-assessment-wealth-tax-act-since-reasons-assessment-not-intimated-assessee/12051/
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Insurance & Freight Charges do not form part of ‘Sale Price’ under Bombay Sales Tax Act: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/insurance-freight-charges-not-form-part-sale-price-bombay-sales-tax-act-bombay-hc/12065/
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👉🏻Leasing of vehicles purchased and leased prior to 1st July, 2017 would attract GST.*
(Leasing of vehicles purchased and leased prior to 1st July, 2017 would attract GST at a rate equal to 65% of the applicable GST rate (including Compensation Cess)
👇🏻 👇🏻 👇🏻
https://goo.gl/h1ik8j
*👉🏻Charitable trusts under Income tax scanner for cash donations.*
(The cash transactions of trusts are under scanner, because we suspect that post-demonetization, many trusts may have been misused to divert cash in form of donations.)
👇🏻 👇🏻 👇🏻
https://goo.gl/JfPhkc
*👉🏻High Court notice to government over disqualification of shell companies' directors.*
(Delhi High Court has issued notice to the Ministry of Corporate Affairs and Registrar of Companies (RoC) on a petition challenging the disqualification of more than one lakh directors of shell companies.)
👇🏻 👇🏻 👇🏻
https://goo.gl/XGc5wc
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Now is the time to file GSTR-2 till 31st Oct and GSTR2A is auto populated but a lot of process and technicalities involved in filing the same . You need check each invoices and accept /reject /modify in GSTR2 .
Small and medium businesses with annual aggregate turnover up to Rs. 1.5 crores, to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis, starting from the third quarter of this financial year i.e. October-December, 2017 .
The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore instead of Rs. 75 lacs. The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to 31.03.2018. The option once exercised shall become operational from the first day of the month immediately succeeding the month in which the option to avail the composition scheme is exercised. New entrants to this scheme shall have to file the return in FORM GSTR-4 only for that portion of the quarter from when the scheme becomes operational and shall file returns as a normal taxpayer for the preceding tax period. The due date for the first GSTR 4 is extened 15th Nov 2017 .
The reverse charge mechanism suspended till 31.03.2018 .
With no late fees for filing GSTR 3B for July and for August its high time file your return as soon as possible . Don't worry though even if any mistake committed in GSTR 3B . We will help you to correct it by properly filing GSTR-1 and GSTR-2 which then auto populates GSTR-3 and the difference in liability will be carried forward from GSTR 3B.
The summary return of GSTR-3B is set to continue till December 2017 as the return filing period of GSTR-1, 2 & 3 has been extended by a month.
Its high time for dealer having turn over less than Rs 1 Crore to choose composition levy scheme where tax will be on turn over and the rates are 2% for manufacturer , 1 % for trader and 5% for restaurants .
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GST: Counter Party Submit Status in GSTR-2A (Yes) means GSTR-1 by Supplier is final & no changes allowed. (No) means Supplier can still modify invoices.
Filing of Returns in GSTR-3 & GSTR-3B is mandatory for considering Shipping bill / Bill of Export as Claim for Refund vide Instruction No.15/2017-Customs of 09.10.2017.
MCA on 6th October, 2017 directed all ROC and RD regarding the approval of applications within one week for appointment of new directors in the companies where all the directors stand vacated due to disqualification under section 164(2)(a) r/w 167(1) of the Companies Act, 2013.
CA can be tried under Prevention of Corruption Act for offering bribe to ITO. Case H. Naginchand Kincha Vs. SP (Karnataka High Court)
Kolkata ITAT deletes addition made in respect of long term capital gains made on the allegation of penny stock in the case of Manish Kumar Baid and Mahendra Kumar Baid Vs ACIT.
ICAI-DISA Candidates desirous of taking ISA ET have to submit the Online ISA ET Form (by giving their ISA No. and password) that would be available on the Committee Portal at http://cit.icai.org from 16th October, 2017 to 31st October, 2017
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Service Charge Earned on Pattern Development is eligible profit for Deduction u/s 80IA of IT Act: ITAT Ahmedabad [Read Order]
Read more at: http://www.taxscan.in/service-charge-earned-pattern-development-eligible-profit-deduction-us-80ia-act-itat-ahmedabad/12046/
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S. 269SS of Income Tax Act would not be attracted in Cash Transactions between Husband & Wife: ITAT Kolkata [Read Order]
Read more at: http://www.taxscan.in/s-269ss-income-tax-act-not-attracted-cash-transactions-husband-wife-itat-kolkata/12023/
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S. 143(1)(a)(vi) would not be invoked in case of Discrepancies in Form 26AS or Form 16/16A: CBDT [Read Instructions]
Read more at: http://www.taxscan.in/s-1431avi-not-invoked-case-discrepancies-form-26as-form-1616a-cbdt/12041/
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#Economy:Industrial output expanded to a nine-month high of 4.3% in August while the consumer price index based inflation rate remained stagnant at 3.28% in Sept. The food inflation rate declined to 1.25% in September from 1.52% in August, while the widely-tracked core inflation (inflation in manufacturing items sans food products) rate increased to 4.6% from 4.5%.
#Finance:Inflow into mutual funds through systematic investment plans has hit another historic high in September. The sector collected Rs 5,516 crore during the month as the number of SIP accounts touched 16.6 million, compared with 13.5 million at the beginning of this financial year. According to sector officials, every month Rs 250-300 crore worth SIPs were added and this trend would continue. With this, the current financial year is likely to surpass Rs 7,000 crore of consistent and steady investments on a monthly basis by March. This means a massive Rs 84,000 crore of sticky inflows into MFs every year.
#Kolkata ITAT deletes addition made in respect of long term capital gains made on the allegation of penny stock in the case of
Manish Kumar Baid And Mahendra Kumar Baid Versus ACIT, Cir-35, Kolkata.
Addition u/s 68 - sale proceeds of shares of Kailash Auto Finance Limited (KAFL) treating the same as income from undisclosed sources - rejecting the assessee’s claim of long term Capital Gains (LTCG) on sale of those shares - claim of exemption u/s 10(38) - Held that:- SEBI order did mention the list of 246 beneficiaries of persons trading in shares of KAFL, wherein, the assessee and/or Ashita Stock Broking Ltd’s name is not reflected at all. Hence the allegation that the assessee and/or Ashita Stock Broking Ltd. getting involved in price rigging of KAFL shares fails. We also find that even the SEBI’S order heavily relied upon by the Id AO clearly states that the company KAFL had performed very well during the year under appeal and the P/E ratio had increased substantially. Thus we hold that the said orders of SEBI is not evidence against the assessee.
Much less to speak of direct evidence. The enquiry by the Investigation wing and/or the statements of several persons recorded by the Investigation Wing in connection with the alleged bogus transactions in the shares of KAFL also did not implicate the assessee and/or his broker. It is also a matter of record that the assessee furnished all evidences in the from of bills, contract notes, demat statements and the bank accounts to prove the genuineness of the transactions relating to purchase and sale of shares resulting in LTCG. These evidences were neither found by the AO to be false or fabricated. The facts of the case and the evidences in support of the assessee’s to be false or fabricated.
The facts of the case and the evidences in support of the assessee’s case clearly support the claim of the assessee that the transactions of the assessee were bonafide and genuine and therefore the AO was not justified in rejecting the assessee’s claim of exemption under section 10(38) of the Act. AO was not justified in assessing the sale proceeds of shares of KAFL as undisclosed income of the assessee u/s 68 of the Act. - Decided in favour of the assessee.
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📺 *Updates*
➡1. Revenue couldn’t deny vested right of filing rectification application by shortening limitation period: HC
District Central Co-op. Bank Ltd. v. Union of India
➡2. Gain from sale of asset was to be taxed u/s 50, though it wasn’t used for business purpose for several years
Smt. Meena v. Pamnani v. Commissioner of Income-tax, Mumbai.
➡3. No disallowance if assessee had sufficient interest free funds to advance interest free loan to its subsidiary.
Captronic Systems (P.) Ltd.
v. Deputy Commissioner of Income-tax, Circle- 2 (1) (1), Bengaluru*.
🙏�Thank you🙏�
Have a nice day