# *DTAA*: India signs much awaited Double Taxation Avoidance Treaty with Hong Kong that seeks to improve transparency in tax matters and help curb tax evasion and avoidance.
# *GST*: Levy of GST on Works Contract on which VAT was imposed previously - The appropriate person who would be in a position to give reply is that the Commissioner of Commercial Taxes, who shall give a reply - Coimbatore Road Cont.Wel.Assn. Vs. State of TN & Ors. (2018 (3) TMI 900 - Madras HC).
# *IBC*: Initiation of CIRP - applicant has not come with clean hands and has suppressed facts - it is no longer res integra that pendency of a suit or court proceedings is no bar for initiation of insolvency proceedings under the Code - In Re : Miditech Pvt. Ltd. (2018 (3) TMI 903 – NCLT, ND).
# *IT*: Application for rectification made u/s 154 has been rejected in breach of principles of natural justice, i.e. without granting the petitioner a personal hearing - the impugned order is quashed and set aside - Mugdha Shirish Agarkar Vs Pr.CIT & Ors. (2018 (3) TMI 898 - Bombay HC).
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Emami Infrastructure Ltd vs. ITO (ITAT Kolkata)
S. 47(iv) Transfer/ Capital Gains: The term 'subsidiary company’ is not defined under the Income-tax Act and so will have to be given the meaning in s. 4(1)(c) of the Companies Act. A subsidiary of a subsidiary (step-down subsidiary) is also a subsidiary of the parent. Consequently, transfers between the holding company and the step-down subsidiary are not "transfers" which can give rise to capital gains or loss
The transaction in question cannot be regarded as transfer in view of provisions of section 47(iv) of the Act, as it is a transfer of capital asset by a company to its subsidiary company and as a second step down 100% subsidiary company is also as subsidiary of the assessee company under the Companies’ Act 1956 as the term ‘subsidiary company’ has not been defined under the Income-tax Act, 1961
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*Capital Gain Exemption can’t be Denied merely on ground that Assessee has a Partial or Fractional Ownership of Residential House: ITAT* [Read Order]
Read more at: http://www.taxscan.in/capital-gain-exemption-cant-be-denied-merely-on-ground-that-assessee-has-a-partial-or-fractional-ownership-of-residential-house-itat/19314/
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#GST: For claiming transitional credit under proviso to Sec. 140(3), *Tran 2* has to be filed by *31.03.2018* for all six tax periods i.e. July 2017 to December 2017.
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Only 16% of initial GST Returns filed for July-Dec matched with Final Returns
Read more at: http://www.taxscan.in/initial-gst-returns-filed-july-dec-matched-final-returns/19246/
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Net Income from Derivative Trading in commodity should be assessed as Business Income of Speculation Business: ITAT* [Read Order]
Read more at: http://www.taxscan.in/net-income-from-derivative-trading-in-commodity-should-be-assessed-as-business-income-of-speculation-business-itat/19240/
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*Jewellery received by a Lady during the Span of 20 years of Marriage can’t be treated as Unexplained: ITAT* [Read Order]
Read more at: http://www.taxscan.in/jewellery-received-lady-span-20-years-marriage-treated-unexplained-itat/19264/
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*Investment Promotion Scheme: Rajasthan HC seeks response from Central- State Govts, GST Council*
Read more at: http://www.taxscan.in/investment-promotion-scheme-rajatstan-hc-response-central-state-govts-gst-council/19265/
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*Expenses Incurred for Earning Dividend Income including Finance Charges are allowable as Deduction: ITAT* [Read Order]
Read more at: http://www.taxscan.in/expenses-incurred-earning-dividend-income-finance-charges-allowable-deduction-itat/19256/
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IGST Refund to Exporters: Govt Clarifies Issues on EGM related Errors* [Read Circular]
Read more at: http://www.taxscan.in/igst-refund-exporters-clarifies-egm-related-errors/19271/
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*Depreciation not allowable on Non-Compete Fee paid for Acquisition of Going Concern: ITAT* [Read Order]
Read more at: http://www.taxscan.in/depreciation-not-allowable-on-non-compete-fee-paid-for-acquisition-of-going-concern-itat/19297/
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GST Portal issues Advisory for change in Taxpayer type from SEZ to Regular or Regular to SEZ*
Read more at: http://www.taxscan.in/gst-portal-issues-advisory-for-change-in-taxpayer-type-from-sez-to-regular-or-regular-to-sez/19301/
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GST: CBEC to verify 50,000 Transitional Credit Claims* [Read Letter]
Read more at: http://www.taxscan.in/gst-cbec-to-verify-50000-transitional-credit-claims/19284/
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RBI Notifies Due Dates for Filing Returns by NBFCs* [Read Notification]
Read more at: http://www.taxscan.in/rbi-notifies-due-dates-filing-returns-nbfcs/19278/
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CBEC issued Clarifications on exports related refund issues in GST – Circular No. 37/11/2018- GST dated March 15, 2018 clarified various issues in relation to processing of claims for refund.
Delhi bench of Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) in the case of M/s Punj Lloyd Ltd versus CST Delhi, has held that an Assessee can’t be treated as ‘ Manpower Supply Agency ’ on deputation of employees to subsidiary group company for the purpose of imposing service tax.
Madras High Court recently dismissed a petition seeking to forbear the Institute of Cost Accountants of India from using the acronym, ICAI for professional opportunities earmarked for them. Currently, The Institute of Chartered Accountants of India is using the acronym
Andhra Bank invites applications from practicing Firms of CA. Period of the assignment is from April 2018 to March 2019 and the last date for submission of application online is 17.03.2018 .
United Bank of India invites application for empanelment of stock & receivable auditors for audit of inventories etc. last date. 15.04.2018. http://www.unitedbankofindia.com/uploads/NoticeEmpanelmentStockAuditor.pdf
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# *IT*: Supreme Court delivers land mark judgment on applicability of Sec-14A - *Maxopp Investment Ltd. Vs. CIT (2018 (3) TMI 805 - SC)*:
*1*. Expenditure related to exempt income - Rule 8D of the Rules is prospective in nature w.e.f. AY 2007 onward when this Rule was inserted.
*2*. Before applying the theory of apportionment, the AO needs to record satisfaction that having regard to the kind of the assessee, suo moto disallowance u/s 14A was not correct.
# *IT*: Maternal aunt is a ‘relative’ as defined under the explanation to Section 56(2)(v) - it is not permissible for the AO to judge the conduct of the donor sitting in his arm chair – No Additions - Pendurthi Chandrasekhar Vs. DCIT (CC) (2018 (3) TMI 799 – T&AP HC).
# *ICAI* warns of Stringent Action against adoption of Unfair Means by the Students as reported in respect of the CA examinations held every time.
# *ICAI*: MCA has nominated Government Nominees on the Bench-II and Bench-III of the Disciplinary Committee. CA Amarjit Chopra, Past President of ICAI has been nominated on Bench-II of the Disciplinary Committee.
# *Vikas Marg CA Study Circle* is organizing 5 CPE Hrs Seminar on *Bank Audit* on Thursday (22MAR18) at 4PM at Crystal Banquet, Nr. Nirman Vihar Metro Stn., Delhi.
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HUF can’t be treated as a ‘Donor’ of Gift for the purpose of S. 56(2)(vii)*: ITAT [Read Order]
Read more at: http://www.taxscan.in/huf-cant-treated-donor-gift-purpose-s-562vii-itat/19228/
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📺 *Updates*
➡1. No reassessment to disallow sec. 80-IA deduction if it was duly allowed by CIT(A) in appellate proceedings
Gujarat Enviro Protection & Infrastructure Ltd. v. Deputy Commissioner of Income-tax*
➡2. ALP of royalty paid to AE in pursuance of technology collaboration agreement to be determined by CUP
Johnson Matthey India (P.) Ltd. v. Deputy Commissioner of Income-tax, Circle- 4 (1), New Delhi
➡3. Foreign Exchange Gains/losses under Ind AS and AS
https://accountsandaudit.taxmann.com/topstories/105010000000015328/foreign-exchange-gainslosses-under-ind-as-and-as.aspx
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No Disallowance u/s 14A when Shares held as Stock-in-Trade: ITAT [Read Order]*
Read more at: http://www.taxscan.in/disallowance-14a-shares-held-stock-trade-itat/19212/
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*Deemed Rent from Unsold Flats not Taxable as they are Stock-in-Trade of Assessee-Builder: ITAT* [Read Order]
Read more at: http://www.taxscan.in/deemed-rent-from-unsold-flats-is-not-taxable-as-they-are-stock-in-trade-of-assessee-builder-itat/19242/
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Delhi HC confirms Penalty since Assessee not Disclosed the Source of Income* [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-confirms-penalty-assessee-disclosed-source-income/19219/
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*Punjab & Haryana HC deletes Addition since Transfer of Land to Assessee was to Facilitate Conversion of Agricultural Land to Non-Agricultural Land as per the State Laws* [Read Judgment]
Read more at: http://www.taxscan.in/punjab-haryana-hc-deletes-addition-transfer-land-assessee-facilitate-conversion-agricultural-land-non-agricultural-land-per-state-laws/19199/
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Tax payable on handing over of Possession of Immovable Property: ITAT says Even a Part Performance is ‘Transfer’ for attracting Capital Gain* [Read Order]
Read more at: http://www.taxscan.in/tax-payable-on-handing-over-of-possession-of-immovable-property-itat-says-even-a-part-performance-is-transfer-for-attracting-capital-gain/19186/
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ICAI enumerates Initiatives taken by the Insolvency Professionals’ Institute*
Read more at: http://www.taxscan.in/icai-enumerates-initiatives-taken-insolvency-professionals-institute/19192/
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# *GST*: CBEC has issued a Circular prescribing the modalities for Processing of refund applications for UIN entities – Cir.No.36/10/2018-GST, dt.13.03.2018.
# *GST*: "Attention Exporters - CBEC is observing “Refund Fortnight” from 15 to 29 MAR 2018 across all field formations to deal exclusively with pending GST (IGST & ITC) Refund Claims.
# *RBI* has decided to apply the Master Direction-Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016, dt.29.09.2016 to all Government NBFCs.
# *IBC*: Corporate Laws & Corporate Governance Committee of ICAI has released the publication -'Question Bank on IBBI Limited Insolvency Examination', available at ICAI online sale portal icai-cds.org.
# *IT*: Revision u/s 263 - Lack of enquiry is a reason for taking up the case for revision u/s 263 of the Act but the inadequate enquiry can’t be a reason for taking up the case for revision u/s 263 of the Act – Fusion Voice Solutions India Pvt. Ltd. Vs. ITO (2018 (3) TMI 736 - ITAT Visakhapatnam).
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Govt. Undertakings / Companies are not Suitable Comparables for Benchmarking International Transaction: ITAT* [Read Order]
Read more at: http://www.taxscan.in/govt-undertakings-companies-comparables-benchmarking-international-transaction-itat/19173/
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*Assessee can’t be treated as ‘Manpower Supply Agency’ on Deputation of Employees to Subsidiary Company: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/assessee-treated-manpower-supply-agency-deputation-employees-subsidiary-cestat/19177/
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Benefit of Indexation of cost to be available where shares unlisted on 31.1.18 but are listed on date of transfer which happens on or after 1.4.18
E-way bill shall be required wef 01.04.2018 for inter-state supplies where value of consignment Excluding Exempted goods exceeding Rs. 50000.
GST has set up camps across India for Exporters refund beginning March 15, CBEC Chairperson Vanaja Sarna said they has already given refunds to the tune of Rs 50 billion but as much as 70 per cent of total refunds to exporters is still stuck even after eight months of GST roll out.
The government will not further extend the deadline for selling pre-GST stock with revised maximum retail price (MRP) stickers beyond this month, Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan has said.
SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents and FPIs to USD 100 million across all currency pairs involving the Indian rupee. The move will help entities engaged in forex transactions to maintain their currency risks in a better manner.
A division bench of the Delhi High Court has admitted an appeal against the order of the Single bench in the CA Final Result mismatch case and asks ICAI to produce Documents.
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RBI
RBI has decided to apply the Master Direction – Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016 dated September 29,2016 to all the Non-Banking Financial Companies, being Government Companies. Accordingly, all such NBFCs shall put in place a reporting system for filing periodic returns with the Bank, as detailed in the aforesaid Master Directions, to the extent applicable to them. The returns should be compiled on the basis of the figures available in the books of accounts of such NBFCs and filed with the RBI on-line (using the COSMOS software package) by an authorised official of the NBFC, who shall be specifically authorised in this regard by the Board of Directors of such NBFC concerned. The first set of returns should be filed with effect from the: (i) last Friday of December 2017 for the weekly return; (ii) quarter ended - December 31, 2017 for the quarterly returns; (iii) half-year ending March 31, 2018 for the half-yearly returns; and (iv) year ending March 31, 2018 for the annual returns. All weekly, quarterly returns upto December 31, 2017 shall be submitted by April 15, 2018.
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Your attention : Sec. 43 talks about returns furnishable under sub-sections (4) or (5) of Sec. 139. Last chance to revise if applicable*
🐌 *_Look at what Sec. 43 says:_*
🐌“If any person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, who has furnished the return of income for any previous year under sub-section (1) or sub-section (4) or sub-section (5) of section 139 of the said Act, fails to furnish any information or furnishes inaccurate particulars in such return relating to any asset (including financial interest in any entity) located outside India, held by him as a beneficial owner or otherwise, or in respect of which he was a beneficiary, or relating to any income from a source located outside India, at any time during such previous year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten lakh rupees.
🐌 Provided that this section shall not apply in respect of an asset, being one or more bank accounts having an aggregate balance which does not exceed a value equivalent to five hundred thousand rupees at any time during the previous year.”
🐌 Here, the law targets ‘any asset’ and not an ‘undisclosed asset’ and goes on to prescribe a hefty penalty of Rs. 10 lakhs for a mere non furnishing of information in the ITR.
🐌 In the ITR, again this is asked as an ‘Yes or No’ query and only if “Yes” is selected, a further drop down will ask for details. it is entirely possible that this portion in the ITR can be slipped by those who fill up the ITR electronically. But, the Assessing Officer has powers not to condone such a ‘failure’, even if proved to be unintentional.
🐌 So, pay attention to those cases of those who might have slipped to fill up such info for AY 2016-17 & 2017-18. Revise the same before 31.03.2018.
🐌 CBDT circular 13 of 2015 dated 6th July, 2015 containing FAQs about such provisions follows here.
