🪙 Addition made under section 68 on account of sundry creditor was deleted – ITAT Bench of Delhi held in the case of Mega international (P.) Ltd. v. DCIT [7525/Del/2017]
🪔 Facts and Findings: The AO noted that out of three sundry creditors shown by the Assessee-company in its Income Tax Return, notice served to one creditor was returned unserved. Thus, the AO has made addition to assessee's income on account of said creditor.
🌴 ITAT bench of Delhi noted that the AO proceeded to make said addition without providing sufficient opportunity to the Assessee to clarify issue or to file confirmation in respect of said creditor. Further, when confirmation in respect of such creditor was produced by the Assessee before the CIT-A, he erroneously rejected the same. Thus, considering facts, it was held that impugned addition made on account of a sundry creditor was unjustified and same was to be deleted.
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⚫The Govt is looking at easing coal stock rules to allow diversion of fuel to stations having critical level of stocks. It is looking at the possibility of reducing the benchmark of 14 days of coal stocks to 10 days for identifying and diverting coal to plants with extremely depleted stocks.
⚫The Ministry of Road Transport and Highways said, construction of 3,385.02 km of national highways so far in the current financial year 2021-22.
⚫The CBDT has issued refunds of over Rs 67,401 crore to more than 2.4 million taxpayers between April 1 and August 16.
⚫The Centre has asked all its departments to promote five-minute yoga break or 'Y-break' among employees working under them, with a view to refresh, distress and refocuses them with enhanced efficiency at workplaces.
⚫India administered over 68 crore COVID-19 vaccine doses so far.
⚫India reported 42,618 fresh COVID-19 cases in the last 24 hours wherein Kerala contributed 29,322 positive cases.
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Whether a Chartered Accountant in practice can use expression like Income Tax Consultant, Cost Accountant, Company Secretary, Cost Consultant or a Management Consultant?
👉 Ans :No, Council direction under Paragraph 2.14.1.7(ii) of Clause (7) of Part I of the First Schedule to the Act, appearing in Volume II of the Code of Ethics prescribes that it is improper for a Chartered Accountant to state on his professional documents that he is an Income-tax Consultant, Cost Accountant, Company Secretary, Cost Consultant or a Management Consultant
🏵️ FAQ: Can a Chartered Accountant in practice give the date of setting up the practice or date of establishment on the letterheads and other professional documents, etc.?
👉 Ans : No,Council direction under Paragraph 2.14.1.7(iv) of Clause (7) of Part I of the First Schedule to the Act, appearing in Volume-II of Code of Ethics prescribes that the date of setting up of the firm on the letterheads and the professional documents, etc. should not be mentioned. However, in the Website, the year of establishment can be given.
🏵️ FAQ: Can a Chartered Accountant in practice also practice as an Advocate*?
👉 Ans :Yes, Council direction under Paragraph 2.14.1.7(v) under Clause (7) of Part I of the First Schedule to the Act , appearing in Volume-II of Code of Ethics prescribes that a Chartered Accountant in practice who is otherwise eligible may practice as an Advocate subject to the permission of the Bar Council but in such cases, he should not use designation 'Chartered Accountant' in respect of the matters involving the practice as an Advocate. In respect of other matters he should use the designation 'Chartered Accountant' but he should not use the designation 'Chartered Accountant' and 'Advocate' simultaneously.
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⚫FPIs were net buyers to the tune of Rs 16,459 crore in Indian markets in August, with majority of investment coming in the debt segment.
⚫E-commerce firms such as Amazon and Flipkart are strengthening their supply chain networks with the addition of new facilities ahead of the festive season. They are also scaling up their hiring initiatives to meet consumer demand.
⚫Saudi Arabia cut oil prices for sales to Asia next month by more than twice the expected amount in a sign the world’s largest crude exporter wants to entice buyers to take more of its barrels. Saudi Aramco is rolling back pricing on all of its grades to its biggest market in Asia.
⚫Atal Pension Yojana has emerged as the most popular social security scheme under the NPS with over 2.8 crore subscribers, mainly from the non-metro centres.
⚫Morning Consult, which regularly tracks popularity ratings of a host of global leaders, has put PM Modi with 70% approval on the top of a list which included US President and UK PM.
"The highest ranking for the country's top leader in the global approval rating is a matter of pride and honour for the country.
⚫Aviation watchdog DGCA directive to DDA to reduce the height of buildings and structures in four apartments- Ganga, Yamuna, Narmada and Saraswati in D-6 society of Vasant Kunj has left the residents worried.
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MCA proposed to do away with Statutory Audit as per the Companies Act 2013 for small companies.
MCA proposed to do away with Statutory Audit as per the Companies Act 2013 for small companies
As per news updates, the Ministry of Corporate Affairs (MCA) might do away with Statutory Audit as per the Companies Act 2013 for small companies. This decision has been taken in line with the ease of doing business.
In order to promote, ease of doing business, first Turnover limit of Tax Audit was increased, then GST Audit was abolished, and now the government is planning to do away with Statutory Audit for certain classes of companies.
Once Statutory Audit for companies is done away with, companies will no more need CA Certification on their Financials and the Director of the company can self certify the documents and upload it on ROC website.
As per sources, companies with paid-up capital of up to Rs. 2 Cr and Turnover of up to Rs. 20 Cr are small companies and this benefit may be provided to them from next Financial year.
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🪙 Keyman Insurance Policy premium paid by firm for its partners is an allowable business expenditure – ITAT Bench of Lucknow held in the case of Ibrahim International Ltd Vs ACIT [ITA No. 340/Lkw/2018]
🌴 Facts and findings: The Assessee-Company, formerly a Partnership Firm paid premium on a Keyman Insurance Policy taken for its partners for AY 2007-08 which was disallowed by the Revenue holding it to be in the nature of investment. The ITAT bench of Lucknow noted that the Assessee amended its Form 36 on conversion from partnership firm into Company which was not objected to by the Revenue. The ITAT referred to CBDT Circular No. 38/2016 (accepting the ruling of the High Court of Punjab & Haryana in the case of Ramesh Steels) wherein it was clarified that the premium on Keyman Insurance Policy is admissible expenditure under section 37 and thus, allowed Assessee’s claim.
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⚫Sales of 1647 listed mfg co's recorded "extraordinarily high" growth of 75% in the first quarter of FY'22 mainly due to a very low base in the pandemic hit year ago period.
⚫Indian exporters allege global shipping co's are forming cartels. Ask govt to regulate them, bat for a larger Indian shipping company.
⚫Tesla plans fully owned retail outlets in India. It has been sourcing auto components from the country after signing up non disclosure agreements.
🌑India's sugar production is likely to decline marginally to 30.5 million tonne in the next 2021-22 season as more sugarcane will be diverted for ethanol making.
⚫Nearly 47% cases closed under the insolvency law ended up in liquidation till the end of June this year but economic value in majority of the cases had eroded even before commencement of the CIRP.
⚫ED files 15 cases for medical malpractice amid threat of third Covid wave. Probe agency identifies a trail of close to Rs 50 cr.
⚫SC gives Govt a week to fill vacancies in tribunals.
🌑The Kerala high court asked the Govt to allow the administration of the second dose of the Covishield vaccine after a gap of four weeks for those wishing to take the jab early, and willing to pay for it.
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Whether a Chartered Accountant in practice can use the designation 'Corporate Lawyer'?
👉 Ans No,a Chartered Accountant in practice is not permitted to use the designation 'Corporate Lawyer'.
🏵️ FAQ: Can a Chartered Accountant in practice/firm give advertisement in press?
👉 Ans : No,however, the members in practice may advertise the services setting out the services provided by him or his firm, and particulars of his firm, through a `Write-Up’, subject to Advertisement Guidelines issued by the Council.
🏵️ FAQ: If a member is a partner in more than one firm, is it permissible to print the names of all the firms on visiting cards, letter-heads, stationery etc?
👉 Ans :Yes,there is no violation under Clause (7) of Part I of the First Schedule to the Act.
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🇮🇳 GST Updates 07.09.2021
1️⃣ Govt. must constitute GST tribunal: SC.
2️⃣ RSS weekly Panchajanya attacks Infosys over glitches in I-T, GST portals.
3️⃣ Roti vs Malabar parotta, papad vs fryum – bizarre GST slabs for similar goods spark 4,600 cases.
4️⃣ GST authorities send out more notices, industries claim harassment. A
detailed representation to GST authorities and the CBIC to avoid hardships.
5️⃣ Punjab records 20.41% rise in GST collection in August.
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👉🏻Govt. must constitute GST tribunal - Supreme Court
( The Supreme Court on Monday said the government had no option but to constitute the Goods and Services Tax (GST) Appellate Tribunal.)
👇🏻 👇🏻 👇🏻
https://bit.ly/3yP5uly
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CBDT opens window for filing of Settelment Application to all those assessees who were eligible to file application on 31st January,2021, a day before Settelment Commission was wound up with a further condition that assessment proceedings are pending on the date of filing such application. The last date for filing application is 30th September, 2021. Settelment of application shall be done by Interim Board of Commissioners constituted by CBDT.
The time period is short. Only 24 days.
Regards
Ved Jain
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Rules on taxable PF Interest notified:
1. CBDT has come up with the Notification no. 95/2021 dated 31st August, 2021 and inserted a new Rule 9D under the income tax Rules, which shall be applicable for the FY 2021-22 and onwards.
2. As per this new Rule 9D, two Provident Fund accounts shall be maintained from the FY 2021-22 and onwards to calculate the portion of interest that is to be taxed for a contribution made above threshold limit which is Rs. 2.5 lacs for other than government employees and Rs. 5 lacs for government employees.
3. The Rule also specifies the method to calculate the closing balance in both the PF accounts.
4. Non Taxable contribution account balance as on 31/3/22 shall be the aggregate of:
Non Taxable PF account opening bal+ contribution during the year+ interest- withdrawal
5. Taxable contribution account balance as on 31/3/22 shall be the aggregate of:
Contribution during the year+ interest- withdrawal
6. So the interest earned on the excess contributions of PF above Rs 2.5 L or Rs 5 L as the case may be, would be taxable.
CA Aniket Kulkarni
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Regarding Exempt LT Capital Gain of Rs. 1 lac u/s 112A
I had received many queries that ITD portal is not showing exempt LTCG of upto Rs. 1 lac and showing the same as part of Total Income.
I would like to bring to your kind notice that this is not a flaw but is exactly as per law.
Language of 112(2) does not exempt such income, but on the other hand, while computing tax, first 1 lac shall be excluded.
Thus it will become part of Total Income per se, but while computing tax, it will be excluded.
So pls stop worrying about it.
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CBDT amends Income-tax Rules, 1962 to ease authentication of electronic records submitted in faceless assessment proceedings
👉For easing the process of authentication of electronic records in faceless assessment proceedings, the Government has amended Income-tax Rules, 1962 (‘the Rules’) vide notification no G.S.R. 616(E) dated 6th September, 2021. The amended Rules provides that electronic records submitted through registered account of the taxpayers in the Income-tax Department’s portal shall be deemed to have been authenticated by the taxpayer by electronic verification code (EVC). Therefore, where a person submits an electronic record by logging into his registered account in designated portal of the Income-tax Department, it shall be deemed that the electronic record has been authenticated by EVC for the purposes of section 144B(7)(i)(b) of the Income-tax Act, 1961 (‘the Act’).
👉However, under the existing provisions of section 144B(7)(i)(b) of the Act, this simplified process of authentication by EVC is not available to certain persons (such as companies, tax audit cases, etc.) and they are mandatorily required to authenticate the electronic records by digital signature. In order to provide the benefit of the simplified process of authentication by EVC to these persons, it has been decided to extend the simplified process of authentication by EVC to these persons also. Hence, the persons who are mandatorily required to authenticate electronic records by digital signature shall be deemed to have authenticated the electronic records when they submit the record through their registered account in the Income-tax Department’s portal. Legislative amendments in this regard shall be proposed in due course.
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⚫The Union Cabinet is likely to discuss a relief package for the financially stressed telecom sector. As part of the package, there could be some relaxation on payment of levies to the govt including a one year moratorium on spectrum installment due in April 2022.
⚫Govt likely to give more sops to units in SEZ's. With this incentive, manufacturers will be able to boost production.
⚫Drone use, satellite imagery for agriculture insurance may be a must. Govt, Irdai considering using AI to control fraud claims, cut delays in settlement
⚫The I-Tax dept extended the deadline for filing settlement applications for eligible taxpayers till Sept 30, as settlement commission ceased to exist from February 1.
⚫Tax portal 2.0 to integrate with bourses to track trade transactions. Will take stock of discrepancies in assessee disclosures in ITR.
⚫India crossed the 700 million mark for total doses administered in the country. More than 76% of the doses given so far were first shots, while the remaining 24% were second doses.
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Ethics of the Day*🕵🏻
🏵️ FAQ : Can a Chartered Accountant in practice use/fix a monogram of the Institute on any column/wall located inside the office or on professional documents.?
👉 Ans :No,in view of the Council directions under Clause (7) of Part I of the First Schedule to the Act, a Chartered Accountant in practice is not permitted to use/fix a monogram of the Institute on any column/wall located inside the office or on any professional documents.
🏵️ FAQ: Whether the office of a Chartered Accountant is permitted to go in for ISO certification or other similar certifications?
👉 Ans :Yes, there is no bar for a member to go in for ISO certification or other similar certifications. However, the member cannot use the expression like “ISO Certified” on his professional documents, visiting cards, letterheads or sign boards etc.
🏵️ FAQ: If a member has passed any additional course of the ICAI, is he permitted to print such qualification on visiting cards, letter heads and other stationery?
👉 Ans :It is not permissible for a member to mention the name of certificate course of the ICAI cleared by him. However, wherever diploma is awarded by the ICAI, the same can be mentioned on the visiting cards, letterheads, and other stationery. E.g. DISA (ICAI).
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CBDT inserted a new Rule 14C to ease authentication of electronic records submitted in faceless assessment proceedings. If electronic records are submitted through registered account of taxpayer on the income tax portal,separate authentication thru EVC is not required to be done.
*http://gstupdategstforcecom.blogspot.com/2021/09/cbdt-inserted-new-rule-14c-to-ease.html*
CBDT provides relief to taxpayers who were eligible to file application for settlement as on 31.01.2021 before ITSC, but could not, due to cessation of ITSC vide Finance Act,2021. Such applications can be filed by 30.09.2021 before the Interim Board,subject to certain conditions.
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