From Published Accounts

Corporate Social Responsibility (CSR) Obligation – Whether Day 1 Obligation?

Brand and IP Valuation: Economic Control vs. Legal Title

Building Sustainable Startups – The CA Edge

Fixed Place PE (Control and Substance over Form)

How to Avoid a “Corporate Kalesh”?

Statements Recorded Under GST Law

Allied Laws

Company Law

Wills – Recent Judicial Developments

Bond Market – Online Bond Platform Provider (OBPP)

Format for Scrutiny Notice under S. 143(2)

Glimpses of Supreme Court Rulings

Assessment — Rejection of books of account — Estimation of net profit at 8% — Disallowance u/s. 43B while computing income and tax liability — Since profit was estimated after rejecting books of account Tribunal could not restore the matter to the Assessing Officer to consider whether addition was required to be made.

Offence and prosecution — Wilful attempt to evade tax — Assessee filed a return, accepted with a refund — French Government information under DTAA alleged assessee held Swiss bank accounts — A search conducted u/s. 132 — No incriminating evidence found — Addition made on account of alleged foreign accounts — Tribunal set it aside — Criminal complaints u/s. 276C, 276D, and 277 for tax evasion and non-compliance with a notice to sign a consent form filed — Information from French, not Swiss, authorities was unauthenticated, and no evidence supported tax evasion — Without credible evidence, sections 276C, 276D, and 277 were inapplicable, and complaints were quashed — Non-signing of consent form was penalized under section 271, not warranting criminal proceedings.

Penalty u/s. 270A — Debatable issue — Receipts chargeable to tax as ‘Fees for Technical Service’ u/s. 9(1)(vii) or ‘Fees for included services’ under Article 12 of the DTAA between India and USA — Divergent views taken by the High Courts — Two views possible — Penalty u/s. 270A not leviable.

Recovery of tax — Stay of demand pending appeal before CIT(A) — Condition requiring 20 per cent., deposit of outstanding demand is contrary to law — Instruction issued by CBDT misconceived — Non-consideration of prima facie merits and undue hardship — Mechanical approach rejecting stay application solely due to non-deposit of 20 per cent amount is contrary to law — Order of conditional stay set aside — Matter remanded.

Revision u/s. 264 — Scope of Power of Commissioner — Mistake in the return of income — Detected when intimation u/s. 143(1) issued/received — Time limit to file revised return expired — Powers of the Commissioner wide enough to rectify a bonafide mistake committed by the assessee even after the expiry of the time limit to file revised return.

Solicitor’s fees — Assessability as income — Amount received by solicitor from clients for certain specific task — Amount is received in fiduciary capacity — Amount is not assessable as income.

Capital Gains – Personal effect – Vintage car owned by the Appellant was not his personal effect – the gain arising on sale thereof was liable to be taxed under the head ‘Capital Gains’

Appeal – Corporate Insolvency Resolution Process – Appeals cannot proceed while the moratorium under Section 14 of the IBC, 2016, was in operation: Insolvency and Bankruptcy Code, 2016.

If books of accounts are not maintained, foundation of audit collapses and therefore penalty cannot be levied for not getting the accounts audited.

Subject to assessee bringing on record the relevant evidence of the amount of tax deducted at source and deposited with the Government, the assessee cannot be denied her lawful right by restricting the TDS credit to the amount reflected in Form 26AS.

Where the Assessing Officer in the assessment proceedings did not make any enquiry as to whether the equipment received by the assessee free of cost from its holding / subsidiary companies was received on returnable basis or otherwise, the assessment order was erroneous and prejudicial to the interest of the revenue. If, in the set aside proceedings, the assessee satisfies the AO by substantiating based on the documents that the equipments were received on returnable basis then the AO will decide the issue on hand in the light of the order of the Tribunal in the case of Sony India Software Center Private Limited [170 taxmann.com 309 (Bang.-Trib.)]

Claim of capitalized interest, supported by evidence, which interest has been disallowed while computing capital gains, cannot be subject matter of levy of penalty under section 270A, in view of the ratio of decision of the Apex Court in Reliance Petroproducts Pvt. Ltd. [189 Taxmann 322 (SC)]

Best judgment assessment made by the AO under section 144 cannot be substituted by the judgment of CIT exercising revisionary powers under section 263.

Amendment in section 11(3)(c) vide Finance Act 2022 omitting extra period of one year following the expiry of the period of accumulation of five years applies prospectively in respect of fresh accumulations under section 11(2) made from assessment year 2023-24 onwards and not to earlier years.

Mere existence of any object allowing the charity to carry out activity outside India will not enable CIT(E) to deny registration under section 12AB.

Reassessment – Jurisdiction to make additions – No addition made on the issue for which case was reopened – Other additions not sustainable – Reassessment invalid

Unsecured Loans – Genuineness and Creditworthiness – AO issued notices u/s 133(6) to only part of the lenders – No summons issued u/s 131 – No incriminating material brought on record – Addition deleted to extent of loans repaid, balance remanded for verification

Article 12 of India-Germany DTAA – Where supply of drawings and designs is inextricably linked to sale of equipment, consideration received towards drawings and designs cannot constitute FTS

Article 13 and Article 24 of India – Singapore DTAA – in terms of the erstwhile Article 13(4), capital gains on shares acquired prior to 01 April 2017 are taxable only in Singapore and Article 24(1) i.e. Limitation of Relief, cannot be invoked if India does not have taxing right over such capital gains.

GST 2.0

From The President

Refunds under the GST Law

Goods And Services Tax

Recent Developments in GST

The Power of Gratitude

ICAI and Its Members

Cobra Effect

Miscellanea

Regulatory Referencer

Learning Events at BCAS

Tech Mantra