ICDS made ultra virus by Delhi High Court!*
Delhi HC, in order to preserve constitutionality of ICDS, reads down Sec.145 (2) of Income tax Act, restricts power of Central Govt. to notify ICDS so as to ensure that they do not override binding judicial precedents or provisions of the Act
🐌Strikes down ICDS I, II, III, VI, VII, Part A of ICDS VIII as ultra vires of the Act/contrary to settled position of law as laid down by Supreme Court;
🐌HC, relying on a catena of Apex Court decisions, observes that - *That a tax cannot be levied by way of an executive action is a settled position. Tax cannot also be levied by way of administrative instructions as observed by the Supreme Court.*;
🐌HC finds merit in the contention of the Petitioners that ICDS notified under Section 145 (2) of the Act has the effect of modifying the basis for computation of taxable income as recognised by the Act and as interpreted by the Supreme Court;
🐌HC further rules that - *where the notified AS or as in this case the ICDS, seeks to alter the system of accounting, or according accounting or taxing treatment to a particular transaction, then it will require the legislature to step in to amend the Act to incorporate such change...*;
🐌HC holds that the power under Sec. 145 (2) cannot permit changing the basic principles of accounting recognized in various provisions of Income tax Act, unless amendments are carried out in the Act
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Penalty u/s 273B can’t be invoked for Restrictions on Cash Transactions If Assessee had a ‘reasonable cause’ for Violation of Law: ITAT Delhi
Read more at: http://www.taxscan.in/penalty-us-273b-cant-be-invoked-for-restrictions-on-cash-transactions-if-assessee-had-a-reasonable-cause-for-violation-of-law-itat-delhi/13040/
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Head Office and Branch Office of a Concern are not Two Separate Entities: HC Quashes Assessment under U.P. Trade Tax Act
Read more at: http://www.taxscan.in/head-office-branch-office-concern-not-two-separate-entities-hc-quashes-assessment-u-p-trade-tax-act/13048/
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Delhi HC Strikes down certain parts of ICDS Provisions and CBDT Notifications [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-strikes-certain-parts-icds-provisions-cbdt-notifications/13074/
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CBEC Takes Measures to Resolve Common Errors hindering disbursal of IGST Refund to Exporters [Read Circular]
Read more at: http://www.taxscan.in/cbec-takes-measures-resolve-common-errors-hindering-disbursal-igst-refund-exporters-read-circular/13069/
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#Aadhaar Mandatory for filing IT Returns: Madras HC Refuses to Grant Exemption [Read Judgment]
Read more at: http://www.taxscan.in/aadhaar-mandatory-filing-returns-madras-hc-refuses-grant-exemption/13079/
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*MCA Updates*
*1.* *IND-AS Companies to file their Financials mandatorily in XBRL.*
【Companies (Filing of Financial Statements in XBRL) Amendment Rules, 2017】 {W.e.f. 06/11/2017}
Confusion arose when MCA Circular 13/2017 wherein it was mentioned that Companies Voluntarily following IND-AS has to file Finacials in XBRL mode only. But there was no such requirement in law or rules. Now rules have been amended in line with the circular.
*IND-AS XBRL taxonomy also notified in rules*
_*Link -*_ http://egazette.nic.in/WriteReadData/2017/180055.pdf
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*2.* *e-form AOC-4 and AOC-4 XBRL amended to include Demonitization Disclosure (SBN Notes) in the form itself .*
Now the disclosure of SBN notes in notes to accounts and the commemts of auditor on it in his auditor report has to be filled in e-forms AOC-4 and AOC-4 XBRL.
_MCA might have done this to use data analytics tools to take data from form and then process it_
_*Link -*_
http://egazette.nic.in/WriteReadData/2017/180056.pdf
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# *GST*: prescribes Due date for generation of GSTR-2A, a read-only document upto 30 NOV 2017 & GSTR-1A from 01 DEC 2017 till 06 DEC 2017 in accordance with the extension of due date for filing Form GSTR-1 & GSTR-2 respectively – Cir.No.15 /15/2017-GST, dt.06.11.2017.
# *CBEC* prescribes procedure and Form-A & Form-B regarding procurement of supplies of goods from DTA by (EOU) / (EHTP Unit / STP Unit / BTP Unit under deemed export benefits under Section-147 of CGST Act, 2017 – Cir.No.14 /14/2017-GST, dt.06.11.2017.
# *IT Dept.* has selected 20,572 tax returns for AY 2017-18 for detailed scrutiny suspecting discrepancies in incomes before and after demonetization.
# *CBDT*: Investigations in the Panama Papers leak cases have resulted in the IT-Dept. detecting undisclosed wealth of Rs.792 crore so far even as the probe is on in "full swing".
# *IT*: Exemption from Capital Gain Tax u/s 54EC - eligible investment in the Infrastructure Bonds of National Highway Authority of India - HC condones the delay of 6 months in making investment – Dr. Sujatha Ramesh Vs. CBDT & Ors. (2017 (11) TMI 395 - Karnataka HC).
# *ST*: Non-receipt of Service Tax amount can’t come in way of their ability to pay. The fact that transactions are recorded in Books is not material, as they needed to declare the same in the ST-3 return - Demand along with penalty confirmed – Shri Sai Arihant Enterprises Vs CCE (2017 (11) TMI 351 - CESTAT Mumbai).
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IBBI strengthens its Due Diligence Framework under the Insolvency and Bankruptcy Code, 2016
Read more at: http://www.taxscan.in/ibbi-strengthens-due-diligence-framework-insolvency-bankruptcy-code-2016/13033/
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12A Registration cant be revoked without Proving Foreign Contribution is likely to be used for Personal Gains: Delhi HC [Read Judgment]
Read more at: http://www.taxscan.in/12a-registration-cant-revoked-without-proving-foreign-contribution-likely-used-personal-gains-delhi-hc/13036/
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GST Council to meet on Nov 10 in Assam: Council to Cut list of items in 28%
Read more at: http://www.taxscan.in/gst-council-meet-nov-10-assam-council-cut-list-items-28/13051/
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👉🏻Do you think Demonetisation was a Good Step for Indian Economy?*
Mittro,
Give your feedback at the Link below.
👇🏻 👇🏻 👇🏻
https://goo.gl/KpVbH6
*👉🏻Income Tax to issue 1Lakh notices for huge deposits post demonetisation.*
(The Income Tax Department is set to issue notices to about one lakh entities and individuals, who deposited huge cash in banks post demonetisation and whose tax returns have been picked for detailed probe into suspected discrepancies)
👇🏻 👇🏻 👇🏻
https://goo.gl/1gRMFb
*👉🏻Due date for generation of GSTR-2A & Form GSTR-1A.*
(Circular No. 15/15/2017 – GST, Dated 06-11-2017. Due date for generation of FORM GSTR-2A and FORM GSTR-1A in accordance with the extension of due date for filing FORM GSTR-1 and GSTR-2 respectively)
👇🏻 👇🏻 👇🏻
https://goo.gl/VwK5rV
*👉🏻All GST issues to be resolved on November 10 - PM.*
(Almost all the woes being faced by businesses and traders under the four-month-old Goods and Services Tax (GST) regime would likely be resolved by the GST Council at its November 10 meeting)
👇🏻 👇🏻 👇🏻
https://goo.gl/YnPX8Z
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The Income Tax Department has picked 20,572 tax returns for “detailed scrutiny” suspecting discrepancies in incomes before and after demonetisation, official sources.
Over 13.28 crore (39.5 percent) Permanent Account Numbers (PANs) have been linked with the Aadhaar till now.
Directors’ disqualification only from defaulting firms, Corporate Affairs Ministry clarification soon http://indianexpress.com/article/business/economy/directors-disqualification-only-from-defaulting-firms-corporate-affairs-ministry-clarification-soon-4924234/
MCA has notified the revised Annual Filing Forms i.e Form AOC-4, Form AOC-4 XBRL and other documents with the Registrar are being revised on 7th November 2017.
MCA has release a press release stating that based on the massive drive undertaken by the Ministry in the recent past, around 2.24 lakh companies have been struck-off till date for remaining inactive for a period of two (2) years or more.
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Assessment can’t be Re-Opened merely by Re-Appreciating the Existing Circumstances: Delhi HC quashes demand against Airtel [Read Order]
Read more at: http://www.taxscan.in/assessment-cant-re-opened-merely-re-appreciating-existing-circumstances-delhi-hc-quashes-demand-airtel-read-order/13028/
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GST Updates :
↪GST council has setup a new advisory group that includes indsutry representatives to look into various changes in input credit, place of supply and valuation promises
↪The Government on Monday appointed revenue secretary Hasmukh Adhia as the new finance secretary
↪Expected decisions to be taken in coming GST council meeting:
1. Quarterly returns for all cos
2. Reduction in late fee from Rs 200 to Rs 50
3. Composition scheme limit to be hiked to Rs. 1.5 Cr from 1 Cr. after amendment to the Law
4. Flat levy of 1% under composition scheme for traders, manufacturers and restaurants
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#Economy:The Govt has collected Rs 4.39 lakh crore in direct taxes, up 15.2% year-on- year, during the first seven months of the current fiscal. The collection, which includes personal income tax and corporate tax, represents 44.8% of the total budget estimates of Rs 9.8 lakh crore in direct taxes for 2017-18. Gross collections (before adjusting for refunds) have increased 10.7% to Rs 5.28 lakh crore during April- October, 2017. Refunds amounting to Rs 89,507 crore were issued during the seven month period.
#The I-Tax Dept is set to issue notices to about 100,000 entities and individuals, who deposited huge cash in banks post demonetisation and whose tax returns have been picked for a detailed probe into suspected discrepancies. Issue of notices will begin this week. In the first tranche, notices will be issued to 70,000 entities who deposited over Rs 50 lakh in cash in banks but chose not to file tax returns or respond to the relevant Income Tax Department advisories.
#The e-filing of ITRs went up by 17% post demonetisation, while the rise in the 'individual filers' category was over 23%. Year-on-year data, accessed by PTI, shows that while a total of 3,21,61,320 e-returns were filed till October 31 last year the financial yearr 2016-17), the figure rose to 3,78,20,889 by this October-end (FY 2017-18).
#The Madras High Court has said that the Aadhaar number is necessary to file Income Tax returns and dismissed a plea seeking exemption from quoting it, a week after it allowed a woman to file her I-T returns without mentioning it.The order comes a week after the same judge - T S Sivagnanam - allowed the woman to file her I-T returns without quoting the Aadhaar number or Aadhaar enrolment number.
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📺 *Updates*
1. Ind AS Transition: No adjustment of Govt. grant to carrying amount of an asset if it is valued at fair value.
➡2. Denying registration under FCRA unjustified as petitioners were not directing investment for undesirable purpose
Dr. R.N. Gupta Technical Educational Societm v. Union of India
➡3. Due date for generation of GSTR-2A/1A will be according to extended date of GSTR-1/2: CBEC Clarifies
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