ALOK GAUR TAXATION ADVOCATE

07/08/2022

*CBDT Reduces tme limit for verification of ITR from 120 days to 30 days of transmitting the data of ITR electronically.* Refer Detailed Notification No. 05/2022.

Where ITR data is electronically transmitted but e-verified or ITR-V (i) submitted beyond the time-limit of 30 days of transmission of data -in such cases *the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow*

07/08/2022

Update on credit in TRAN-1.
Union of India & Anr. Vs Filco Trade Centre Pvt. Ltd. & Anr., Special Leave to Appeal (C) No(S). 32709- 32710/2018 – Supreme Court
The Revenue, in the present matter, has filed the SLP before the Hon’ble Supreme Court in the wake of various High Court decisions which had allowed writ petitions filed by the registered taxpayers seeking directions to avail Transitional Credit beyond statutory time limit. Considering the same, the Apex Court has issued the following direction for filing of Tran-1:-
i. GSTN is directed to open the common portal for transitional credit through TRAN-1 and TRAN-2 for 60 days i.e. w.e.f. 01.09.2022 to 31.10.2022.
ii. This facility will be available for all the assessees whether they have filed the writ or not.
iii. GSTN has to ensure that there will be no technical glitch during the aforesaid period.
iv. The concerned officers are given 90 days thereafter to verify the claim of credit on merits and pass appropriate order.
v. The allowed transitional credit is to be reflected in the Electronic Credit Ledger.
vi. The GST Council, if required, may also issue the guidelines to the field formation for scrutinizing the claims.

07/08/2022

Applicability of GST on residential property w.e.f. 18th July 2022

GST will be applicable if the residential property is rented out to a registered person under GST w.e.f. 18th July 2022.

Liability to pay GST @ 18% under the reverse charge mechanism will arise on the recipient(tenant).

The exemption has been withdrawn vide CGST(Rate) Notification no. 04/2022 dated 13.07.2022.

Same has been notified under RCM vide CGST(Rate) Notification no. 05/2022 dated 13.07.2022.

GST will not be applicable if the residential property is rented out to an unregistered person under GST w.e.f. 18th July 2022.

29/05/2022

Wonderful Judgment..

AO can’t assess any other income if issue on which reassessment notice was issued resulted in no escaped income: HC

INCOME TAX : If income, escapement of which was basis of reopening of assessment was not assessed or reassessed, it would not be open to Assessing Officer to independently assess any other income which comes to his notice subsequently in course of reopening proceedings as having escaped assessment

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts (Scope of reassessment) - Assessment year 2012-13 - Whether if income, escapement of which was basis of reopening of assessment was not assessed or reassessed, it would not be open to Assessing Officer to independently assess any other income which comes to his notice subsequently in course of reopening proceedings as having escaped assessment - Held, yes - Assessing Officer issued a reopening notice against assessee on ground that assessee had not filed return of income though she had deposited a cash of Rs. 13.40 lakhs in her bank account - Assessee filed its objections to notice stating that she had deposited cash of only Rs. 18,000 and bank had incorrectly reported cash deposit amount of Rs. 13.40 lakhs - Assessing Officer accepted same - However, Assessing Officer continued reassessment proceedings in respect of a different issue of deposit/credit of Rs. 18.81 lakhs to assessee's account other than in form of cash which was not mentioned in reopening notice issued against assessee - Whether since Assessing Officer had issued a reopening notice based on incorrect facts and same was accepted by him in order disposing off objections of assessee, entire basis on which jurisdiction was assumed under section 147 failed and, therefore, impugned reopening notice was to be quashed - Held, yes - Whether, accordingly, impugned continuation of reassessment proceedings on different issue of deposit of different amount of Rs. 18.81 lakhs independently was unjustified and same was also to be quashed - Held, yes

Yashoda Shivappa Nagangoudar
[2022] 138 taxmann.com 296 (Bombay)

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, Company Law, IFRS, Ind AS & International Taxation

29/05/2022

Wonderful Decision by the Hon’ble HC...

AO can’t assess any other income if issue on which reassessment notice was issued resulted in no escaped income: HC

INCOME TAX : If income, escapement of which was basis of reopening of assessment was not assessed or reassessed, it would not be open to Assessing Officer to independently assess any other income which comes to his notice subsequently in course of reopening proceedings as having escaped assessment

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts (Scope of reassessment) - Assessment year 2012-13 - Whether if income, escapement of which was basis of reopening of assessment was not assessed or reassessed, it would not be open to Assessing Officer to independently assess any other income which comes to his notice subsequently in course of reopening proceedings as having escaped assessment - Held, yes - Assessing Officer issued a reopening notice against assessee on ground that assessee had not filed return of income though she had deposited a cash of Rs. 13.40 lakhs in her bank account - Assessee filed its objections to notice stating that she had deposited cash of only Rs. 18,000 and bank had incorrectly reported cash deposit amount of Rs. 13.40 lakhs - Assessing Officer accepted same - However, Assessing Officer continued reassessment proceedings in respect of a different issue of deposit/credit of Rs. 18.81 lakhs to assessee's account other than in form of cash which was not mentioned in reopening notice issued against assessee - Whether since Assessing Officer had issued a reopening notice based on incorrect facts and same was accepted by him in order disposing off objections of assessee, entire basis on which jurisdiction was assumed under section 147 failed and, therefore, impugned reopening notice was to be quashed - Held, yes - Whether, accordingly, impugned continuation of reassessment proceedings on different issue of deposit of different amount of Rs. 18.81 lakhs independently was unjustified and same was also to be quashed - Held, yes

Yashoda Shivappa Nagangoudar
[2022] 138 taxmann.com 296 (Bombay)

23/04/2022

Legal News...

HC set-asides reassessment order passed by AO without dealing with objections raised by assessee

INCOME TAX : Where Assessing Officer passed a reassessment order without dealing with objections raised by assessee and without passing a speaking order, matter was to be remanded back to take into consideration objections filed by assessee and to pass a speaking order

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General (Speaking order) - Assessment year 2018-19 - Whether where preliminary objections have been raised by assessee against reassessment proceedings, same are required to be dealt with in accordance with law as it is not an ordeal but a substantive requirement - Held, yes - Assessee-company filed its return of income which was accepted and an assessment order was passed - Subsequently, a survey has been conducted at assessee under section 133A - On basis of same, Assessing Officer issued a reopening notice against assessee - Assessee filed objections against reasons recorded for reopening of assessment - However, Assessing Officer without dealing with such objections raised by assessee and without passing any speaking order for same proceeded to pass reassessment order - Whether Assessing Officer was to be directed to take into consideration objections filed by assessee and to pass a speaking order - Held, yes

Jothi Malleables (P.) Ltd.
[2022] 137 taxmann.com 120 (Madras)

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, Company Law, IFRS, Ind AS & International Taxation

23/04/2022

23/04/2022

Legal Update....

28/03/2022

Something Relevant to all Business n Professionals persons:-

Section 194R – A bolt from the blue

बजट में TDS का एक नया सेक्शन भी लाया गया है. जिसके तहत बिजनेस और किसी प्रोफेशन से जुड़े टैक्स पेयर्स को अगर कोई लाभ या सुविधा मिलती है, तो उसपर 10 प्रतिशत टीडीएस कटेगा. नए सेक्शन 194R के नियम को 1 जुलाई, 2022 से लागू कर दिया जाएगा.

Rationale for bringing this TDS provision Hon’ble Finance Minister in her budget speech has stated while introducing this provision that “It has been noticed that as a business promotion strategy, there is a tendency on businesses to pass on benefits to their agents. Such benefits are taxable in the hands of the agents. In order to track such transactions, I propose to provide for tax deduction by the person giving benefits, if the aggregate value of such benefits exceeds Rs.20,000 during the financial year.”

As per memorandum explaining the Finance Bill, following has been stated regarding the proposed section:

As per clause (iv) of section 28 of the Act, the value of any benefit or perquisite, whether convertible into money or not, arising from business or exercise of profession is to be charged as business income in the hands of the recipient of such benefit or perquisite. In many cases, such recipient does not report the receipt of benefits in their return of income, leading to furnishing of incorrect particulars of income. This amendment will take effect from 1st July, 2022.

Section 194R in its present form would be a big compliance challenge for businesses as there are multiple types of perquisites & benefits which are extended to their dealers/ distributors/agents/ channel partners etc. with the objective of incentivizing and motivating them for the growth of business. Some examples of common perquisites/ benefits are:

1.Travel packages

2. Gift Cards/vouchers

3.Products under incentive scheme – Gold Coins/ Vehicles/ phones etc

4.Usage of business assets etc

26/06/2021

*Government grants further extension in timelines of compliances*

*Also announces tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19*

👉The Government has granted further extension of timelines of compliances under Income Tax Act. It has also announced tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19. The details are as follows:
*A. Tax exemption*

👉I. Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of Covid-19. In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years.

II. Unfortunately, certain taxpayers have lost their life due to Covid-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arisen due to the sudden loss of the earning member of their family. In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs. 10 lakh in aggregate for the amount received from any other persons.

👉Necessary legislative amendments for the above decisions shall be proposed in due course of time.

*B. Extension of Timelines*

👉 In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices. In order to ease compliances to be made by taxpayers during this difficult time, reliefs are being provided through Notifications nos. 74/2021 & 75/2021 dated 25th June, 2021 Circular no. 12/2021 dated 25th June, 2021. These reliefs are:

👉Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for which the last date of filing under that section is 1st June, 2021 or thereafter, may be filed within the time provided in that section or by 31st August, 2021, whichever is later.

👉The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 31A of the Income-tax Rules,1962 (hereinafter referred to as “the Rules”), as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.

👉The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.

👉The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.

👉The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.

👉The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc., required to be made on or before 30th June, 2021, may be made on or before 31st August, 2021.

👉The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1st April, 2021 to 29th September, 2021 (both days inclusive), may be completed on or before 30th September, 2021.

👉The Quarterly Statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37 BB of the Rules, may be furnished on or before 31st July, 2021.

👉The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21, which is required to be filed on or before 30th June, 2021, may be furnished on or before 31st July, 2021.

👉The Annual Statement required to be furnished under sub-section (5) of section 9A of the Act by the eligible investment fund in Form No. 3CEK for the Financial Year 2020-21, which is required to be filed on or before 29th June, 2021, may be furnished on or before 31st July, 2021.

👉Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which is required to be uploaded on or before 15th July, 2021, may be uploaded by 31st August,2021.

👉Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission) under sub-section (1) of Section 245M of the Act in Form No. 34BB, which is required to be exercised on or before 27th June, 2021, may be exercised on or before 31st July, 2021.

👉Last date of linkage of Aadhaar with PAN under section 139AA of the Act, which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

👉Last date of payment of amount under Vivad se Vishwas(without additional amount) which was earlier extended to 30th June, 2021 is further extended to 31st August, 2021.

👉Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as 31st October, 2021.

👉Time Limit for passing assessment order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

👉Time Limit for passing penalty order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

👉Time Limit for processing Equalisation Levy returns which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

Regards
*Alok Gaur*

13/06/2021

Some relaxation in GST rates...