🌴 Facts and Findings: There was a huge mismatch in receipts appearing in Form 26AS vis-a-vis receipts credited in Profit and Loss account. The Assessee never disclosed and claimed TDS from certain parties during assessment proceedings also, though he had opportunity to do so. Therefore, the Assessee had deliberately concealed particulars during assessment proceedings, and Accordingly, reopening of assessment was justified. It could not be said that reopening was based on change of opinion but facts which emanated after rectification application had been filed by the Assessee. The High Court of Madras held that it was incorrect on part of Assessee to state that reopening of original assessment was on assumptions and presumptions.
.
========>
.
New NCLT ruling gives leeway to companies that want to restructure, give exit to some shareholders
🌴National Company Law Tribunal (NCLT) has ruled that companies can reclassify their equity shares as preference shares, paving the way for more flexible capital reorganisation for private companies.
🍁This means companies can do this to give a structured exit to some of their shareholders going ahead, say industry trackers.
🍃The ruling brings clarity that such *re-classification does not tantamount to reduction of 'equity share capital' per se*.
🍂The NCLT said there is nothing in the existing law that says that such a conversion is disallowed
☘️Many companies could also look to convert equity into preference shares in situations where they wish to repay debt from group companies or give better terms to existing creditors who hold equity.
▶️https://www.google.com/amp/s/m.economictimes.com/news/company/corporate-trends/new-nclt-ruling-gives-leeway-to-companies-that-want-to-restructure-give-exit-to-some-shareholders/amp_articleshow/86500917.cms
🎗️Preference shares are also known as preferred stock that get dividends before other shareholders.
⭐In case a company files for bankruptcy, preference shareholders are entitled to be paid before other equity shareholders.
🍥Equity shareholders only get dividends after all the other liabilities are fulfilled by the company, as they are essentially the owners in the company.
☘️Even the dividend can be fixed for preference shareholders, which is not possible for equity shareholders.
🍃According to the details of the case some minority shareholders were seeking dividends from their investments, but at the same time they were not interested in holding any position or management control. The company then started the process of converting equity shares into optionally convertible redeemable preference shares.
🍥 The Registrar of Companies (ROC) had objected to such a conversion claiming there was no provision in the law to do it.
🍁The company had argued that the conversion of shares is not barred by any provision of the law, and that such conversion only amounts to reorganization of the share capital.
The NCLT allowed the conversion.
.
========>
.
⚫Economy shifting to different plane', India needs 4-5 big banks like SBI says FM, more bank mergers in coming times.
⚫India has emerged as Dubai's second biggest trading partner after China with the overall volume touching 38.5 billion dirham in the first half of 2021.
⚫Top property developers are looking to add millions of square feet of office properties in the next three to five years.The developers have set the ball rolling on big projects, as the demand for workspace is once again going up after the pandemic.
⚫Tata Steel, ONGC lead surge in advance tax; top 20 firms pay 47% more in Q2. Reliance Inds, Tata Motors, HDFC, and ITC skip payment.
⚫RBI green focus likely to change way of financing. As the world suffers from unseasonal rains and cyclones, sporadic wildfires lasting days, reducing assets worth billions to ashes, extreme weather events have become a crucial component. Rs 41369 cr transmission projects on offer soon to boost green corridors With these, RE connectivity and private participation will get a fillip.
⚫Farmers unions is organising a nationwide strike to mark the first anniversary of three controversial laws getting Presidential assent.
.
========>
.
✅ Reminder to pay your Annual (2021-22 ) Membership / COP Fee latest by 30th September 2021. Non Payment within stipulated time may result in removal of Membership/COP and cessation of Practice.
Please Login SSP Portal to Pay online Fee.
✅MCA has extended deadline for holding Annual General Meeting from September 30, 2021 to November 30, 2021.
.
========>
.
🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Whether an auditor is required to provide to the client or to main auditor of the Head Office of the same enterprise access to his audit working papers?
👉 Ans :No, working papers are the property of an auditor. An auditor is not required to provide the client access to his audit working papers. The main auditors of an enterprise do not have right of access to the audit working papers of the branch auditors. The auditor, may at his discretion, in cases considered appropriate by him, make portions of, or extracts from his working papers available to the client.
🏵️ FAQ: Whether Joint Auditors can demand the working papers of one another?
👉 Ans :No, the working papers are the property of an auditor. Therefore, no Joint Auditor can demand the working papers of the other auditor.
🏵️ FAQ: Whether a joint auditor will be responsible for the work done by other joint auditor?
👉 Ans :The Council direction under Paragraph 2.15.1.2(ii) under Clause (2) of Part I of the Second Schedule to the Act, appearing in Volume II of the Code of Ethics, prescribes that in respect of audit work divided among the joint auditors, each joint auditor is responsible only for the work allocated to him including proper execution of the audit procedures. However, on the other hand, all the joint auditors are jointly and severally responsible for the work which is not inter-se divided among the auditors.
.
========>
.
👉Exposure Draft of Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12, Income Taxes
https://www.icai.org/post/ed-of-deferred-tax-related-to-assets-and-liabilities-arising-from-a-single-transaction
👉Announcement by CL&CGC ICAI regarding Extension of time for holding of Annual General Meeting (AGM) for the Financial Year ended on 31.03.2021 by Two Months beyond the due date - (24-09-2021)
https://resource.cdn.icai.org/66663clcgc53814.pdf
👉India needs 4-5 more 'SBI size' banks to meet changing requirements of economy: FM Sitharaman
https://economictimes.indiatimes.com/industry/banking/finance/banking/india-needs-4-5-more-sbi-size-banks-to-meet-changing-requirements-of-economy-fm-sitharaman/videoshow/86545954.cms
.
========>
.
Case Laws Updates
1️⃣ Rule 86A provides for Interim restriction of attachment, bi-parte hearing order should be passed to make it permanent. (M/s Sahil Enterprises. v. Union of India).
2️⃣ Section 83 of GST, Court quashed the Attachment on grounds of 'willfil misclassification of goods'. (Monopoly Innovation).
3️⃣ HC allows refund under Inverted Duty Structure in case of input and output supplies being same. (BMG Informatics Pvt Ltd)
4️⃣ Extended period of limitation can be invoked only when “suppression‟ or “collusion” is wilful with an intent to evade tax. (SOTC Travels Services Pvt Ltd.)
5️⃣ Maha AAR: GST applicable on Royalty paid on Tertiary Treated Water supplied to MAHAGENCO. (Nagpur Municipal Corporation).
.
========>
.
✅Please pay the annual ICAI Membership / CoP fees for FY 2021-22, on or before 30th September 2021 (if yet not paid), which shall be made online through Self Service Portal (SSP)* i.e., - https://eservices.icai.org/ after logging in from your account.
✅ Audit of Charitable Trusts - 30-11-2021 is Extended Due date for furnishing Audit Report for Public Charitable Trusts.
✅CBDT issues order u/s 119(2)(b) of Income-tax Act, 1961 in F. No. 299/22/2021-Dir(Inv.III)/174 dated 28.09.2021, for filing applications for settlement before Interim Board for Settlement by 30.09.2021, subject to certain conditions.
.
==============>
.
📲 Download my official Android app "Updates by CARJ" 📚 to stay connected with latest news and updates 📝
Thanks for reading
