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Sunday, 19 August 2018

19 August 2018 Updates

SUPREME COURT : In Chintalapati Srinivasa Raju vs.  Securities And Exchange Board of India*

*_The expression “reasonably expected” cannot be a mere ipse dixit – there must be material to show that such person can reasonably be so expected to have access to Unpublished Price Sensitive Information._*

*_Read full case law at :_* https://dasgovernance.com/2018/08/17/supreme-court-in-chintalapati-srinivasa-raju-vs-securities-and-exchange-board-of-india/
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No sec. 68 addition if assessee failed to produce persons who had applied as shareholders; Supreme Court dismissed SLP

Supreme Court in the case of CIT v. Jalan Hard Coke Ltd. in SLP Civil Diary No. 16078 of 2018:

Assessee filed details of share capital money before AO showing that there are number of share applicants who applied for allotment of shares and most of them were residing in Delhi and each application was for Rs.2 lakhs each and payment was made by DDs.

Assessee also filed photocopies of share applications.

AO required assessee to produce all persons/share applicants for examination.

Assessee expressed its inability to produce share applicants, however, submitted that since share application had been received from identifiable persons having capacity and creditworthiness of making share application, no addition u/s 68 should be made.

High Court by impugned order held that view taken by Tribunal in deleting the addition was just and proper as assessee could not have been assessed to tax to find out person who had applied as shareholder.

SLP filed before the SC against the order of HC has been dismissed.[2018] 95 taxmann.com 331.

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*👉🏻CBDT defers Clause 30C and 44 of Revised Tax Audit Report Form 3CD upto 31 March 2019* .

CBDT has issued a Circular (Circular No. 6 Dated 17/08/2018), defers implementation of Clause 30C and Clause 44 of the Revised Tax audit Report Form 3CD upto 31 March 2019, earlier notified on 20 July 2018 to be applicable from 20 Aug. 2018 in view of representations from stakeholders, like ICAI, etc. Accordingly, this partial deferment of amendments will not affect other changes made in Form 3CD applicable from 20 Aug. 2018. 
👇🏻 👇🏻 👇🏻
https://goo.gl/cM9L5e

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NCLT (Kolkata Bench) : In RBL Bank Ltd. vs. MBL Infrastructures Ltd.*

*_Where the request is not to extend the time limit but to exclude the period due to litigation, the exclusion is liable to be allowed._*

*_Read full case law at :_* https://dasgovernance.com/2018/08/18/nclt-kolkata-bench-in-rbl-bank-ltd-vs-mbl-infrastructures-ltd/
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CBDT has issued a Circular defers implementation of Clause 30C and Clause 44 of the Revised Tax audit Report Form 3CD upto 31 March 2019, earlier notified on 20 July 2018 to be applicable from 20 Aug. 2018 in view of representations from stakeholders, like ICAI, etc. Accordingly, this partial deferment of amendments will not affect other changes made in Form 3CD applicable from 20 Aug. 2018.

SEBI on drastically cut the timeline for listing of debt securities to six days from 12 days at present, in order to make the existing process of issuance of such securities simpler and cost effective.

Bombay high court directed the CBDT to file its reply by 23 August in a petition filed by the Association of National Exchanges Members of India (ANMI) against the NSE and Sebi. The brokers’ lobby ANMI moved the court against the capital markets regulator Sebi and NSE for holding brokers responsible for collecting STT on physical delivery of derivatives.

Ministry of Road Transport and Highways has issued an advisory to states to accept Driving Licence, Registration Certificate or other documents in 'electronic form' presented through this platform as valid under the Motor Vehicles Act, 1988 and treat them at par with the certificates issued by the transport authorities.

Due Date for GSTR-3B for the m/o July & Pay due Tax till this date- Aug 20, 2018.  

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# *IBC*: Disciplinary Processes against the IP who is a Member of the ICSI - The infractions of the professional call for no leniency. He has rendered himself a person not fit and proper to continue as an IP – IBBI in Mr. Rakesh Wadhwa (2018 (8) TMI 838).

# *GST*: Whether the money paid by the customer to the driver of the cab for the services of the trip is liable to GST and whether the applicant company is liable to pay GST on this amount? - Held YES – AAR, Ktk. in Opta Cabs Pvt. Ltd. (2018 (8) TMI 933).

# *GST*: The conversion of e-Units into diamonds would constitute a supply of diamonds liable to GST– AAR, Ktk in Rajarathnam's Jewels (2018 (8) TMI 932).

# *IT*: Levy of fee u/s 234E - Late of submission of TDS returns - all the intimations u/s 200A of the Act were issued before June 1, 2015 - Levy of fee deleted – A.R.R. Charitable Trust Vs. ACIT (2018 (8) TMI 915 - ITAT Chennai)..

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Utilization of Electronic Cash and Input Tax Credit (ITC) Ledger under GST https://studycafe.in/2018/08/utilization-of-electronic-cash-and-input-tax-credit-itc-ledger-under-gst.html
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CBDT notifies India International Exchange (IFSC) Limited under section 43(5)(d)
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https://studycafe.in/2018/08/cbdt-notifies-india-international-exchange-ifsc-limited-under-section-435d.html
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*Compounding Fee paid to Legal Metrology Dept is an allowable Expenditure: ITAT* [Read Order]

Read more at: http://www.taxscan.in/compounding-fee-paid-legal-metrology-dept-allowable-expenditure-itat/27247/
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*Interest Received by Head Office of Bank from Indian Branch not Taxable in India: ITAT* [Read Order]

Read more at: http://www.taxscan.in/interest-received-head-office-bank-indian-branch-taxable-india-itat/27241/
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SLP admitted against ruling that interest earned on funds deposited prior to commencement to business not taxable

IT: SLP granted against High Court ruling that interest received on funds deposited with banks borrowed for specific purpose of execution of mega projects prior to commencement of commercial operations will be in nature of capital receipt and will be required to be set off against pre-operative expenditure capitalized under head capital work in progress and same cannot be brought to tax under head income from other sources.

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Modi govt scheme: Gift your daughter Rs 70 lakh, save tax in Income Tax Return (ITR) filing; here`s how  via zeenews - http://www.zeebiz.com/personal-finance/news-modi-government-sukanya-samriddhi-yojana-gift-daughter-rs-70-lakhsave-income-tax-return-filing-itr-60023
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Record! Whopping Income Tax collection – Rs 10.03 lakh crore during 2017-18-https://www.financialexpress.com/money/income-tax/record-whopping-income-tax-collection-rs-10-03-lakh-crore-during-2017-18/1284104/
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UIDAI to roll out face recognition feature from September 15-https://www.financialexpress.com/aadhar-card/uidai-to-roll-out-face-recognition-feature-from-september-15/1284738/
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*NCLAT : In Rajputana Properties Pvt. Ltd. vs. Ultra Tech Cement Ltd. and Ors.*

*_Prima facie, in absence of any information through any source while scrutinizing the resolution plan under Section 30(2), the Resolution Professional cannot hold or decide as to who is ineligible under Section 29A._*

*_Read full case law at :_* https://dasgovernance.com/2018/08/19/nclat-in-rajputana-properties-pvt-ltd-vs-ultra-tech-cement-ltd-and-ors/