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Monday, 14 January 2019

14 January 2019 Updates

Forwarded as received -

📌📌Most Important Update

CA Final and Inter Exams will be Held in June 2019 instead of May 19 due to Lok Sabha Elections

Announced by CA Dhiraj  Khandelwal & Vandana D Nagpal, BOS Director at
National CA Students Conference, Mumbai

📌📌Most Important Update 2

From Nov 19 Chartered Accountancy Course shall be reduced by 40% and all unnecessary content shall be reduced.

Announcement by ICAI will be out soon

Announced by CA Dhiraj  Khandelwal & Vandana D Nagpal, BOS Director at
National CA Students Conference, Mumbai
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HC upheld additions on basis of ‘window-dressed’ financials prepared for bank loans:

[Binod Kumar Agarwala v. CIT [2018] 94 taxmann.com 422 (Calcutta)]

The assessee approached a bank to obtain the credit facilities on basis of books of account prepared by a firm of Chartered Accountants. Subsequently, different financial statements were presented before Income-tax Dept. which were audited by another Chartered Accountants Firm. The financials for Income-tax purposes were not commensurate with what was reflected in the books of account presented before Bank. The Assessing Officer made additions due to difference in two audited balance sheets.

The High Court held in favour of revenue that once assessee presents the financial statements, as certified by a Chartered Accountant, for obtaining bank loan, he can’t subsequently backtrack from such position at the time of filing annual accounts for purpose of taxation. The assessee can’t argue that that earlier accounts had been prepared on estimation basis for presentation thereof to bank.

When financial statement of an assessee is accompanied by a certificate as to its fairness, it couldn’t be tailor-made to suit a particular purpose or window-dressed to make it attractive for bankers to rely thereupon. Thus, it was open to the Assessing Officer and income tax authorities to pin assessee down on basis of assessee's representation contained in earlier balance-sheet and make additions.

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👉🏻Companies may soon be able to rectify GST returns for Non-IT errors
(GST Council has directed a committee for IT grievance redressal to quickly draw up a solution that will give relief to industry)
👇🏻 👇🏻 👇🏻
https://goo.gl/dZnoxG

👉🏻Govt re-promulgates ordinance to amend Companies Law
(The ordinance has amended 16 sections of the Act so as to modify the punishments from fine to monetary penalties to lessen the burden on the Special Courts)
👇🏻 👇🏻 👇🏻
https://goo.gl/mBmXse

👉🏻FinMin considers steps to prevent composition dealers from charging GST from buyers
(Revenue Department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers)
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https://goo.gl/pXLeZY

👉🏻Creditor Can Proceed Against Guarantor Even Without Proceeding Against Borrower - NCLAT
(NCLAT has held that financial creditor can proceed against corporate guarantor even before proceeding against corporate debtor)
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https://goo.gl/Mi1fN2

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👉Indian businesses may soon be able to amend GST returns mandated for carrying forward tax credit from the previous regime for non-IT related errors as well. The GST Council has directed a committee for IT Grievance Redressal to quickly draw up a solution that will give relief to industry.

👉Finance Ministry is planning to make it mandatory for Composition Dealers and Service Providers to declare their GST Registration Status in Invoices to ensure that they do not charge any tax from buyers. The measure, once implemented, would check the widespread practice of Composition Dealers of charging GST from purchasers and not depositing it with the exchequer

👉CBIC clarifies that the services provided by the Asian Development Bank (ADB) and International Finance Corporation (IFC) are exempted from the GST regime

👉RBI warns Govt over NPA spike in MUDRA Loans, which is the Govt’s flagship scheme to support micro enterprises in the country -- the Pradhan Mantri Mudra Yojana.

👉RBI is working on a new set of rules that would link Remuneration of Banks CEOs to parameters like Balance Sheet Size of a Bank, Loan Delinquency, Profits and Governance Record. The proposed framework is expected to provide a broad template to the board of directors of banks while approving increase in salary, performance bonus and stock options to the senior most executive.

👉NCLT admits insolvency plea against Parsvnath Landmark, subsidiary of Parsvnath Developers,  for inordinate delay in the development of the project and non-refund of homebuyers payment.

👉SEBI may soon Issue Norms & guidelines mandating Foreign Brokers to Store Data Locally. Several foreign brokerages and custodians typically store data digitally in regional centres such as Hong Kong and Singapore.

👉Govt may provide Remission of State Levies (RoSL) benefits to certain sectors including chemical and engineering as part of the proposed incentive package for exporters to boost the country's outbound shipments. Currently, RoSL, which is to offset indirect taxes levied by states such as stamp duty, petroleum tax, electricity duty and mandi tax that were embedded in exports, is provided to textiles exporters.

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ICAI is migrating its Information Systems to an Integrated Online Platform b/w 11-18th Jan 2019, hence all activities for students and members remain affected until then. For any query, contact at 0120-3045979, 0120-2975833 or SSP.Support@icai.in.

# GST: Refund of IGST - rejection of application reiterating the deficiencies already pointed out in the deficiency memo, without consideration the reply of the assesse - Revenue directed to reconsider the application on merit – Sri Gayathri Cashews Vs AC-GST&CE, (2019 (1) TMI 610 - Madras HC).

# IBC: Though the resolution applicant has no voting right in the CoC; and it is the CoC to approve or reject the resolution plan, an opportunity ought to have been provided to the resolution applicant to attend the meeting of the CoC in which the Resolution Plan is to be considered - Nitrex Chemicals India Ltd. Vs Ravindra Beleyur (2019 (1) TMI 523 – NCLT, Chennai).

# PMLA: The contention that assets acquired prior to enactment of the PMLA could never fall under the scope of the definition of the expression ‘proceeds of crime’ and consequently are immune from the provisions of the PMLA, is erroneous and is accordingly rejected – Abdullah Ali Balsharaf & Anr. Vs Directorate of Enforcement & Ors. (2019 (1) TMI 515 - Delhi HC).

# IT: Compensation received from Transfer of Development Rights (TDR) - the land and building earlier in the possession of the Assessee continued to remain with it - any receipt from transfer of TDR cannot be taxed as a capital gain - Pr.CIT Vs Shri Manohar H. Kakwani (2019 (1) TMI 545 - Bombay HC).

# IT: Levy of Fee u/s 234E for late filing of TDS returns - the provisions of Section 234E of the Act imposing a fee for delayed filing of statement of tax deducted at source are not ultravires the provisions of the Constitution - Biswajit Das Vs Union of India & Ors.. (2019 (1) TMI 604 - Delhi HC).