Insolvency and Bankruptcy Code:
Total admitted case as on 15th September,18 = 1157
Total cases closed by Resolution as on 15th September, 18= 46
Total cases closed by Liquidation as on 15th September, 18 = 202
Till 1Q FY2019, a total 34 cases were closed by approval of resolution plan as against 136 cases were closed by commencement of liquidation, i.e. a resolution to liquidation ratio of 1:4.
On a cumulative basis, the financial creditors could recover 55.5% of their claim from these 34 resolution cases. In 47% cases, the recovery rate is less than 50% with 5.63% being the lowest.
From the first few closed cases, it is clearly seen that liquidation has dominated over resolution. From the 170 cases closed as on June 30, 2018, as many as 136 cases ended up with the commencement of liquidation as against only 34 cases closed with resolution plan.
.
===========>
.
Tax Audit Due Date Extension- Delhi HC listed case for 26.11.2018
Northern India CA Federation Vs. Central Board Of Direct Taxes (Delhi High Court)
In respect of appeal filed by Northern India CA Federation by which it requested Hon’ble Delhi High Court to direct CBDT to extend the due date of Tax Audit and relevant Income Tax Returns to 31st October 2018. Hon’ble High Court while hearing the matter on 25th September 2018 has *adjourned the matter to 26th November 2018, which is even beyond the due date extension requested by Petitioner Northern India CA Federation so same be treated as death of this writ.*
.
===========>
.
# ICAI: Council at its 378th Meeting held on 26/27 Sep’ 18 decided that Internal Auditor can’t undertake GST Audit simultaneously.
# GST: Excel based Offline utility of Form GSTR-10 (Final Return) is now available in the download section of GST portal.
# GST: MoF modifies Guidelines for Deductions and Deposits of TDS by the DDO under GST as clarified in Cir.No.65/39/2018-DOR, dt.14.09.2018 – Cir.No.67/41/2018-DOR, dt.28.09.2018.
# GST: ITC cannot be allowed on stock transfer from the Head Office to its branches in other States at Zero Value – AAR West Bengal in ACCGST&CX (2018 (9) TMI 1768).
# IT: Credit card commission expenses - payments to banks on account of utilization of credit card facilities would be in the nature of bank charge and not in the nature of commission within the meaning of Sec. l94H – Velankani Info.Sys.Ltd. Vs. DCIT (2018 (10) TMI 68 - ITAT B’lore).
.
===========>
.
Rajasthan High Court gave directions to CBDT for further extension of Income Tax Return filing date and Tax Audit Return filing date to 31st October-2018 and waiver of interest u/S 234A of the Income Tax Act.
CGST/Tamil Nadu GST: Where petitioner could not avail input tax credit in view of lack of clarity in new transitional provisions under GST Act, it was directed to place all material facts in accordance with Circular No. 39/13/2018-GST, dated 3-4-2018 before Jurisdictional Officer, who would forward same to Nodal Officer.
October 2018 Due Dates:
(a)5th October- DIR 3 KYC of Directors
(b)7th October- TDS Deposit - Sep 2018 Month
(c)14th October- ADT 1 for Appointment of Auditor
(d)15th October- TCS Return for Jul to Sep 2018
(e)- Tax Audit & ITR for FY 2017-18
(f)18th October- GSTR 4 for Composition Dealer for Jul 2017 to Sep 2018
(g)20th October- GSTR 3B - Sep 2018 Month
(h)30th October- AOC 4 for FY 2017-18
(i)31st October- GSTR 1 for July 2017 to Sep 2018
(j)31st Oct- TDS Return for Jul to Sep 2018
MCA plans to put in place a stricter disclosure framework for independent directors, including providing details about their resignation from companies, as part of continuing efforts to bolster corporate governance standards.
SBI has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from Rs 40,000. The lower limit will be effective from October 31. “In view of the increase in the number of complaints received by banks around fraudulent transactions at ATMs.
.
===========>
.
Legal updates
1. Service Tax- Appellant provides ‘time share’ facilities at its resorts, service tax is demanded on Interest on instalments sales. Interest on instalment is not includible as it cannot partake the character of consideration for the services provided and is not taxable to service tax. The penalties set aside and appeal partly allowed.
2018-VIL-668-CESTAT-CHE-ST
Central Excise:
2. Deemed exports- When the fact of export by way of supplying to ‘SEZ’ unit is not in dispute and the fact of payment of duty by debiting the CENVAT account is also not in dispute, there is no question of denying one of the reliefs viz. the Rebate of duty u/R.18 or Export without payment of duty u/R.19, which ought to have been allowed. The writ petition is allowed in favour of assessee.
2018-VIL-431-KAR-CE
.
===========>
.
Builder not liable to pay Service Tax on ‘One-Time’ Maintenance Charges collected from Flat Buyers: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/builder-service-tax-one-time-maintenance-charges-collected-flat-buyers-bombay-hc/29146/
.
===========>
.
GST payable on Transit Fee collected by Forest Division from Private Entities: AAAR [Read Order]
Read more at: http://www.taxscan.in/gst-payable-transit-fee-collected-forest-division-private-entities-aaar/29084/
.
===========>
.
TDS can’t be recovered from Deductee / Employee in Case of Default by Deductor / Employer: Gujarat HC [Read Judgment]
Read more at: http://www.taxscan.in/tds-recovered-deductee-employee-default-deductor-employer-gujarat-hc/29151/
.
===========>
.
Last date for filing of Income Tax return of companies liable for furnishing report of International/Domestic transactions falling under Transfer Pricing provision is 30th November 2018.
.
===========>
.
E-Way Bills Number Crossed 25 Crores in September: GSTN
Read more at: http://www.taxscan.in/e-way-bills-crores-september-gstn/29143/
.
===========>
.
NFRA- DISC PROCEEDINGS AGAINST MEMBERS STAYED BY DELHI HC
The ICAI, one of the respondent to the application filed in Hon’ble High Court, has very powerfully and diligently has put up its views before the Hon’ble Delhi High Court on NFRA matter.
We professional are aware that Government tries to put a higher authority mechanism on our professional members.
NFRA was challenged in Delhi High Court on various grounds and hearing of the case was today in High Court.
After hearing the counsels the Hon’ble Delhi high court passed the order to stay any disciplinary action against any member of ICAI under NFRA and notice was issued to the Govt. and next date of hearing is 16.01.2019
.
===========>
.
Supreme Court upholds Validity of GST Cess Laws [Read Judgment]
Read more at: http://www.taxscan.in/supreme-court-gst-cess-laws/29183/
.
===========>
.
Delhi HC dismisses appeal by Students against CA Exam Results: Asks ICAI to be More Careful [Read Judgment]
Read more at: http://www.taxscan.in/delhi-hc-appeal-ca-exam-results-icai/29179/
.
===========>
..
💪 NFRA IS CHALLENGED IN THE COURT:
Dear Professional Colleagues!!
The ICAI, one of the respondent to the application filed in Hon’ble High Court, has very powerfully and diligently has put up its views before the Hon’ble Delhi High Court on NFRA matter. We professional are aware that Government tries to put a higher authority mechanism on our professional members.
♨ NFRA was challenged in Delhi High Court on various grounds and hearing of the case was today in High Court.
🏋🏻♀ The ICAI through its Legal Department strongly presented before the Court.
🏆 After hearing the counsels the Hon’ble Delhi high court passed the order to stay any disciplinary action against any member of ICAI under NFRA and notice was issued to the Govt. and next date of hearing is 16.01.2019.
.
===========>
.
No need to prove occasion for receiving gifts from relative; ITAT deleted sec. 68 additions
[2018] 97 taxmann.com 619 (Indore - Trib.)
IN THE ITAT INDORE BENCH
Smt. Geeta Dubey
v.
Income-tax Officer, 2(1) Ujjain*
KUL BHARAT, JUDICIAL MEMBER
AND *MANISH BORAD, ACCOUNTANT MEMBER*
IT APPEAL NOS. 108 TO 114 (INDORE) OF 2017
[ASSESSMENT YEARS 2004-05 TO 2010-11]
AUGUST 28, 2018
Section 153C, read with section 153A, of the Income-tax Act, 1961 - Search and seizure - Assessment of any other person (Period of limitation) - Assessment years 2004-05 to 2010-11 - Whether where search and seizure operation under section 132 were carried on 20-11-2009 and seized documents were handed over to Assessing Officer of assessee under section 153C in financial year 2011-12, order under section 153C should be passed by 31-3-2014 - Held, yes [Paras 9 to 11] [In favour of assessee]
II. Section 68, read with section 56, of the Income-tax Act, 1961 - Cash credits (Gifts) - Assessment years 2004-05 to 2006-07 - Assessee received gift of certain amount from her father and sister-in-law - Assessing Officer treated gift as unexplained for reason that assessee was unable to quote occasion for which she had received gifts and, accordingly, made addition under section 68 - It was undisputed that alleged gifts were received through proper banking channel and identity of donors was well established - It was also an undisputed fact that both donors i.e., father and sister-in-law, fell under category of relatives provided in Explanation (e) of section 56 of section (2) - Whether as per section 56(2)(v), for accepting a gift from any relative, no occasion needs to be proved - Held, yes - Whether, therefore, impugned addition on account of unexplained gifts was to be deleted - Held, yes [Para 14] [In favour of assessee]
III. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Personal expenses) - Assessment years 2004-05 to 2010-11 - Assessee incurred expenditure on account of vehicle expenses and vehicle insurance - Assessing Officer made disallowance of 20 per cent of vehicle expenses and vehicle insurance on account of personal element of expenditure embedded therein - Whether since expenditure in nature of vehicle and vehicle insurance were incurred by assessee in course of business of earning commission and no amount was shown specifically under household drawing, Commissioner (Appeals) was justified in sustaining disallowance of 10 per cent of vehicle expenses and vehicle insurance - Held, yes [Para 16] [In favour of assessee]
IV. Section 69C of the Income-tax Act, 1961 - Unexplained expenditure (Interest) - Assessment year 2007-08 - During course of assessment proceedings, Assessing Officer while examining details of loan payment to ICICI bank by assessee, came to a conclusion that assessee had only reduced portion of principal amount of loan but had not disclosed portion of interest paid on loan - Accordingly, addition in respect of amount of interest was made under section 69C - It was noted that from perusal of records, balance sheet and capital account it was found that interest of Rs. 1.07 lakhs on loan was reflected in capital account and this interest amount was shown as a part of other withdrawal of Rs. 1.34 lakhs - Whether since assessee had duly disclosed interest expenditure, impugned addition for unexplained expenditure was unjustified - Held, yes [Paras 19 and 20] [In favour of assessee]
V. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Interest) - Assessment years 2008-09 to 2010-11 - Assessee paid interest on loan taken to purchase a land - Assessee claimed that as land was purchased for business purpose, interest on loan needed to be allowed as an business expenditure - It was noted that assessee was not into business of purchase and sale of land - Assessee's source of income was from commission - Further, land was shown by assessee under fixed asset - Whether since assessee failed to prove use of land for business purpose, there was no room available to claim alleged interest amount as business expenditure - Held, yes [Para 23] [In favour of revenue]
VI. Section 4 of the Income-tax Act, 1961 - Income - Chargeable as (Forfeited amount) - Assessment year 2008-09 - Assessee sold agricultural land and received an advance of certain amount - For some reason this sale of land could not be fructified - Assessee after forfeiting 10 per cent of advance amount received by her paid back remaining amount to proposed buyer - Whether assessee was justified in reducing forfeited amount from cost of land and Assessing Officer could not treat amount forfeited by assessee as income of assessee - Held, yes [Para 25] [In favour of assessee]
VII. Section 80C of the Income-tax Act, 1961 - Deductions - Life insurance premium, contribution to provident fund etc. - Assessment year 2010-11 - Whether where total investment eligible for section 80C included an amount towards repayment of housing loan, assessee was eligible for deduction on total investment after excluding such amount towards repayment of loan - Held, yes [Paras 28 and 29] [In favour of assessee]
.
===========>
.