No 54 B Exemption in case agriculture land purchased prior to sale of agriculture land
IT : Where assessee purchased a piece of agricultural land prior to sale of agricultural land owned by him, assessee's claim for deduction under section 54B in respect of land so purchased was to be rejected
IT : Where assessee incurred certain expenditure on levelling of agricultural land for purpose of irrigation from canal, benefit of indexed cost of improvement was to be granted in respect of said expenditure while computing capital gain arising from sale of said piece of agricultural land
IT : While computing deduction under section 54B, stamp duty paid by assessee was to be considered as part of cost of purchase of agricultural land
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[2018] 100 taxmann.com 51 (Jaipur - Trib.)
IN THE ITAT JAIPUR BENCH
Mathur Lal
v.
Income-tax Officer, Ward 2(2), Kota*
IT APPEAL NO. 940 (JP) OF 2018
I. Section 54B of the Income-tax Act, 1961 - Capital gains - Transfer of land used for agricultural purposes (Applicability of) - Assessment year 2014-15 - Whether where assessee purchased a piece of agricultural land prior to sale of agricultural land owned by him, assessee's claim for deduction under section 54B in respect of land so purchased was to be rejected - Held, yes [Para 13] [In favour of revenue]
II. Section 48 of the Income-tax Act, 1961 - Capital gains - Computation of (Indexed cost of improvement) - Assessment year 2014-15 - During relevant year, assessee earned capital gain from sale of agricultural land - Assessee's case was that while computing amount of capital gain, Assessing Officer did not allow benefit of indexed cost of improvement in respect of levelling of land - Commissioner (Appeals) confirmed said disallowance - In appellate proceedings, assessee brought on record receipt of said expenditure which showed that levelling of land was done that's purpose of irrigation from canal - Whether on facts, it could be concluded that assessee had established that certain cost had been incurred for improvement of agricultural land and, thus, assessee's claim deserved to be allowed - Held, yes [Para 10] [In favour of assessee]
III. Section 54B of the Income-tax Act, 1961 - Capital gains - Transfer of land used for agricultural purposes (Computation of) - Assessment year 2014-15 - Whether while computing deduction under section 54B, stamp duty paid by assessee was to be considered as part of cost of purchase of agricultural land - Held, yes [Para 13] [In favour of assessee]
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NAA confirms Profiteering Charges for not reducing price of Chocolates after GST Rate Reduction [Read Order]
Read more at: http://www.taxscan.in/naa-profiteering-charges-price-gst-rate/31405/
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NAA holds J&J Distributor Guilty of not passing GST Benefits [Read Order]
Read more at: http://www.taxscan.in/naa-jj-distributor-guilty-gst-benefits/31388/
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Petition in Gujarat HC challenges Press release for Form GSTR-3B changing last date for Credit [Read Petition & Order]
Read more at: http://www.taxscan.in/petition-gujarat-hc-challenges-press-release-form-gstr-3b-changing-last-date-credit/31401/
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# ICAI invites comments on Exposure Draft of Guidance Note on Reports in Company Prospectuses (Revised 2018) issued by the AASB by 21.12.2018.
# GST: E-way bill - temporary registration of car in the selling state purchased for personal use - can brand new car be treated as used car - detention of car due to omission to upload e-way bill is illegal – Kun Motor Co. Pvt. Ltd. & Anr Vs ASTO (2018 (12) TMI 531 - Kerala HC).
# GST: If the entire consideration is received after the date of completion of construction, then the transaction would not be liable to GST – AAR, Karnataka in Bindu Ventures (2018 (12) TMI 536).
# GST: The applicant is liable to pay GST on the value of building constructed and handed over to the land owner in terms of the Joint Development Agreement – AAR, Karnataka in Nforce Infrastructure India Pvt. Ltd. (2018 (12) TMI 534).
# GST: Separate GST registration is not required for imports received at Haldia Port Kolkata for Mumbai head office, cab be cleared anywhere – AAR, Maharashtra in Sonkamal Enterprises Pvt. Ltd. (2018 (12) TMI 532).
# IT: Additions of Gift u/s 56 - surrender of the rights of shares in favour of the another close relative is exempted u/s 56(2)(vii)(c) - Sri Kumar Pappu Singh Vs DCIT (2018 (12) Tmi 525 - ITAT Visakh).
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Petition in Gujarat HC challenges Press release for Form GSTR-3B changing last date for Credit [Read Petition & Order]
Read more at: http://www.taxscan.in/petition-gujarat-hc-challenges-press-release-form-gstr-3b-changing-last-date-credit/31401/
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GST UPDATE:
-Tutti-frutti being papaya product taxable at rate of 12% GST under HSN 2006 00 00: (AAR KARNATAKA)
-Composite supply with principal supply being exempt supply treated as exempt composite supply: (AAR KARNATAKA)
-Supply of development rights by land owner to developer liable to GST: (AAR KARNATAKA)
Resent Circulars & Notifications
65/2018-Central Tax, dt. 29-11-2018 Seeks to extend the due date for filing of FORM GSTR - 4 for the quarter July to September, 2018 for taxpayers in Srikakulam district of Andhra Pradesh.
http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-65-central-tax-english-2018.pdf;jsessionid=1D1B2949B48666C2A37E15927096B405
03/2018-Integrated Tax,dt. 22-10-2018 Seeks to supersede Notification No.8/2017 – Integrated Tax, dated 14.09.2017
http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-3-2018-igst-english.pdf;jsessionid=A164DD952D558E4504DC4CA5A559046A
14/2018-Union Territory Tax,dt. 08-10-2018 seeks to notify the constitution of the Authority for Advance Ruling in the Union Territories (without legislature).
http://www.cbic.gov.in/resources//htdocs-cbec/gst/Notification-14-2018-Union-Territory-Tax-English.pdf;jsessionid=2579BFED2CBBE9E67025C84F3B990CBE
CIRCULARS: 73/2018 05-11-2018 Scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credre agent.
http://www.cbic.gov.in/resources//htdocs-cbec /gst/Circular-No-73.pdf;jsessionid=7506FBED995C8776CDBA1CA9B2B6C9CF
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Direct tax collections are up 15.7% for the April-November period from corresponding period a year ago.Collections added to Rs 6.75 lakh crore while refunds amounting to Rs 1.23 lakh crore have been issued during April-November, which is 20.8% higher than refunds issued during the same period.
ITAT JAIPUR BENCH held in the case of Jagdish Wadhwani vs ITO that disallowance of indexed cost of Improvement under Section 54 was justified if assessee fails to prove the quantum of expenses incurred.
Finance Ministry has extended the due date for filing annual return by three more months. “The competent authority has decided to extend the due date for filing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C till 31st March, 2019.
Sebi has lined up a slew of relaxations for new-age ventures in sectors like e-commerce, data analytics and bio-technology to raise funds and get their shares traded on stock exchanges.The proposed changes renaming the 'Institutional Trading Platform.
Mr Urjit Patel has resigned as Governor Reserve Bank of India. His resignation comes against the backdrop of increasing tensions between the Finance ministry and the Reserve Bank of India. Shri Hasmukh Adhia appointed as RBI Governor with immediate effect.
U.K. Westminster Magistrate’s Court in London ruled against Mallya. Judge Emma Arbuthnot found that he had made misrepresentations and said that it was a case of conspiracy to defraud. The case will now be referred to the U.K.’s Home Office.
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No GST Levy on Petrol, Diesel until Revenue Stabilizes, says Former CEA
Read more at: http://www.taxscan.in/gst-petrol-diesel-revenue-cea/31413/
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Breaking: GSTR-1 Due Date extended
Read more at: http://www.taxscan.in/breaking-gstr-1-due-date-extended/31438/
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ICAI recommends Practice Management Software for Chartered Accountants and CA Firms
Read more at: http://www.taxscan.in/icai-software-chartered-accountants/31465/
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SUPREME COURT : In M/s Emkay Global Financial Services Ltd. vs. Girdhar Sondhi
For setting aside an arbitral award will not ordinarily require anything beyond the record that was before the Arbitrator and if there are matters not contained in such record, and are relevant to the determination of issues arising under Section 34(2)(a), they may be brought to the notice of the Court by way of affidavits filed by both parties.
Read full case law at : https://dasgovernance.com/2018/12/11/supreme-court-in-m-s-emkay-global-financial-services-ltd-vs-girdhar-sondhi/
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No Addition on the basis of TDS claimed if corresponding income not taxable due to Cash system of accounting
IT: In terms of Rule 37BA, revenue could not, merely because credit for tax deducted at source was erroneously claimed by assessee, bring corresponding professional receipts to tax, if such receipts were otherwise not assessable as income in accordance with law
[2018] 100 taxmann.com 150 (Delhi - Trib.)
Dhruv Sachdeva
v.
Assistant Commissioner of Income Tax, New Delhi
_____________________
Section 199 of the Income-tax Act, 1961, read with rule 37BA of the Income-tax Rules, 1962 - Deduction of tax at source - Credit for tax deducted (Procedure of) - Assessment year 2011-12 -
👉Assessee was following cash system of accounting - 👉He received certain amount as professional receipts after payer deducted tax at source under section 194J -
👉Assessee claimed credit for prepaid taxes on account of TDS, even in respect of those professional receipts appearing in Form 26AS which were not shown by assessee as professional receipts in return of income for relevant year -
- In course of assessment, Assessing Officer made addition which had resulted because of mismatch between gross professional receipts as per Form 26AS and receipts shown by assessee in return of income
-Commissioner (Appeals) relying upon Rule 37BA, confirmed said addition on ground that assessee had taken credit of corresponding tax deducted at source
~Whether provisions under Rule 37BA do not authorize revenue to bring such amounts to tax which are not assessable during relevant year on basis of regular method of accounting followed by assessee - Held, yes -
~Whether, therefore, revenue could not, merely because credit for tax deducted at source was erroneously claimed by assessee, bring corresponding professional receipts to tax, if such receipts were otherwise not assessable as income in accordance with law - Held, yes -
~Whether in view of aforesaid, impugned order of Commissioner (Appeals) was to be set aside and matter was to be remanded back to recompute income of assessee in accordance with cash system of accounting followed by him - Held, yes [Para 4.2]
[In favour of assessee/Matter remanded]
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Income tax department has collected Rs. 6.75 trillion in direct taxes this year up to November, accounting for close to half of its full-year target of Rs 11.5 trillion. The April-November gross direct tax receipts show a 15.7% jump in revenue compared to the same time a year ago.
GST Notification on Annual Return Portal enhancement to file GSTR-9 will be likely till 31st January, 2019. So, The Government want another 1/5 month to get it operational.Notification brought in for extending due date to file GSTR-9 (Annual Return).
Commerce and industry ministry has floated a draft to amend the existing patent rules with a view to further streamline examination of applications. The draft rules will amend the Patents Rules, 2003, the department of industrial policy and promotion (DIPP).
Sebi is considering steps to strengthen the framework for debenture trustees, including raising minimum net worth requirement for registration of such entities and introducing e-voting provision to obtain consent of the unit holders.
Central Govt has decided to increase its contribution to the NPS for the central govt employees to 14% and also made the entire withdrawal amount tax free at the time of retirement.The central govt contribution to the NPS will be increased to 14% from the current 10%. The minimum employee contribution stands at 10%.
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👉A day after Urjit Patel resigned as RBI Governor, the government today appointed Shaktikanta Das as the new RBI chief. He is the 25th Governor of the Reserve Bank of India.
👉The Central Government has extended the due date for filing GSTR-1, the quarterly return for registered persons with aggregate turnover up to Rs. 1.50 Crores for the period of October to December 2018 to 31st January 2019.
👉The chartered accountants apex body ICAI has signed an MoU with the Indian Institute of Management, Ahmedabad, for conducting management training programmes for CAs.
👉Think & Learn, which runs India’s largest online tutoring platform Byju’s, has raised $300 million in fresh funding from South African Internet giant Naspers and CPP Investment Board Private Holdings (CPPIB).
👉The country's largest lender SBI is running pilot projects to disburse agricultural loans digitally and expects to roll out the services very soon. It will help in providing digital loans to farmers using technology.
👉The UPSC has sought fresh applications from over 6,000 private sector specialists who have applied for 10 posts of joint secretaries in the central government through 'lateral entry' mode .
👉The board of Reliance Jio, a subsidiary of Reliance Industries Limited (RIL), approved a scheme to hive off the fibre and tower businesses into separate companies as they feel this would provide a better leverage to raise funds.
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Late fee GSTR1 started and tax payers are shocked
GST portal has started showing warning for late filing fee on GSTR-1 and late fee is being charged now. Till now late filing fee was charged only on delay in filing of GSTR-3B.
However from today many taxpayers have started seeing pop up for late filing fee on GSTR-1.
Our team believes it is time that government rethink its strategy to make GST successful in India. Today results of 3 states were announced and public has shown anger on current government.
Half of the time site is down or GST laws and rules are not made very clear. Time of taxpayers is wasted but no compensation is paid for that and government is collecting late fee for every form now.
It is advised to tax payers and consultants to file their returns on time as there is no provision to waive late filing fee after due date unless announced and waived for all tax payers.
Consultants are already complaining about various malfunctions on site and this is going to be an extra financial burden on them.
We request government to waive fee on GSTR-1 till this month and from next month government can charge the fee as still GST is in implementation mode and government should not meet its collection target by charging heavy late filing fee.
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Petition in Rajasthan HC challenges Constitutional Validity of Provisions on Detention, Seizure and Release of Goods and conveyances in transit and Levy Penalty [Read Petition]
Read more at: http://www.taxscan.in/petition-rajasthan-hc-challenges-constitutional-validity-provisions-detention-seizure-release-goods-conveyances-transit-levy-penalty/31431/
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IBC LEGAL UPDATES
1. Supreme Court held that so long as a dispute exists in facts and is not spurious in nature, the NCLT must reject the application u/s 9 of IBC. IT held that IBC is not intended to be a substitute to a recovery forum, and where there is existence of real dispute, the provision of IBC cannot be invoked.
Transmission Corporation of Andhra Pradesh ltd. Vs. Equipment conductors and cables ltd. MANU/SC/1192/2018
2. NCLAT allowed appeal filled u/s 7 of IBC for initiation of Corporate Insolvency Resolution Process jointly against 2 respondents. It held that if two corporate debtors entered in a joint venture for developing the land, in which one party is developer and another is land owner, the application u/s 7 will be maintainable against both of them jointly. Therefore, NCLT order shall stand set aside.
MAMATHA VS. AMB INFRABUILD PVT. LTD MANU/NL/0301/2018
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# ICAI: The CCBMP has arranged Practice Management Software for members in practice & CA Firms of ICAI. To know more, pls click https://www.icai.org/new_post.html?post_id=15286&c_id=240.
# RBI: Shaktikanta Das has been appointed governor of Reserve Bank of India to replace Urjit Pate.
# NPS: The Central Govt has made entire withdrawal from NPS tax free at the time of retirement.
# NCLT Kolkata has ordered winding up of 13 Saradha Group defunct companies and directed the official liquidator to take possession of assets and properties of all these companies on winding up petitions filed by MCA authorized Serious Fraud Investigation Office (SFIO).
# GST: Fee collected from Lions Club members are not for the purposes of making any ‘supply’ - The fees collected are used for social causes - No GST liability – AAR, Maharashtra in Lions Club of Poona Kothrud (2018 (12) TMI 590).
# IT: Bogus long term capital gain - revenue did not indicate any specific evidence against the assessee in above terms qua the LTCG derived from transfer of share in STIL - additions deleted - Swati Mall Vs ITO (2018 (12) TMI 576 – ITAT Kolkata).
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IIM Ahmedabad to conduct management training programmes for Chartered Accountants
The chartered accountants’ apex body ICAI has signed a MoU with the Indian Institute of Management, Ahmedabad for conducting management training programmes for CAs. The objective of the initiative is to establish mutual cooperation between the institutes for offering and co-hosting open enrolment and customized training programs exclusively for Chartered Accountants (CAs).
“Mutual collaboration will bring a new dimension to the area of accounting and management education in the country.
Courses conducted under the MoU will provide an opportunity for chartered accountants to enhance their management skill sets required for key positions in business and industry.
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NCLAT : In Gaurav Pandey vs. Eternity Investment Services Pvt. Ltd. & Anr.
Since the parties have reached for settlement much prior to the date of admission of application under Section 7, so there been no default on the date of admission, Financial Creditor can withdraw the application as well as the petition can be dismissed by Tribunal.
Read full case law at : https://dasgovernance.com/2018/12/12/nclat-in-gaurav-pandey-vs-eternity-investment-services-pvt-ltd-anr/
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GST: Advance Ruling Application can be withdrawn through E-mail [Read Order]
Read more at: http://www.taxscan.in/gst-advance-ruling-application-e-mail/31455/
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GST Evasion of Rs. 3.25 Crore detected
Read more at: http://www.taxscan.in/gst-evasion-3-25-crore/31489/
