Judiciary updates (Income tax & GST)- 25th Nov 2021

INCOME TAX

HC directs AO to pay ₹25000 to PM CARES for not following section 144B

Parag Kishorchandra Shah Vs The National Faceless Assessment Center & Ors. (Bombay High Court) dated 27/10/2021

Transfer Pricing Officer: Quasi-capital are treated differently than normal loan transactions

Bilakhia Holdings Pvt. Ltd. Vs ACIT (ITAT Surat) dated 11/10/2021

GST

No withholding of GST refund on account of need for verification of suppliers to supplier of ultimate exporter

Bhagyanagar Copper Private Limited Vs Central Board of Indirect Tax and Customs (Telangana High Court) dated 28/09/2021

GST Registration cancellation on Hyper-Technical grounds causes Revenue Loss: HC

CIGFIL Retail Pvt. Ltd. Vs Union of India (Calcutta High Court) dated 10/11/2021

Vires of Section 16(2) of CGST Act, 2017 challenged before HC

Unifab Engineering Project Pvt. Ltd. and anr. Vs Deputy Commissioner CGST And CEX (Bombay High Court) dated 16/11/2021

Provisional attachment after expiry of one year breaches Section 83 provisions of CGST Act

Formative Tex Fab Vs State of Gujarat (Gujarat High Court) dated 21/10/2021

Services by ‘Airbus Group India’ are ‘Intermediary service’ & liable to GST

 In re Airbus Group India Pvt. Ltd.  (GST AAAR Karnataka dated 09/11/2021

Bombay HC issues notice in challenge to Constitutional validity of 16(4) of CGST Act

Meta Tiles Pvt. Ltd. Vs Union of India (Bombay High Court) dated 29/10/2021

Regards

Bipul Kumar

Judiciary updates (Corporate Laws)-20 Nov 2021

Complaint filed by Company cannot be denied merely because Managing Director’s name appeared first in complaint

Bhupesh Rathod Vs Dayashankar Prasad Chaurasia & ANR. (Supreme Court of India) dated 10/11/2021

Criminal liability on officers arises only when offence is committed by company

Dayle De’souza Vs Government of India (Supreme Court of India) dated 29/10/2021

HC dismisses Plea of assessee to quash ED Summons in Money Laundering Case

The plea by assessee to quash Enforcement Directorate summons in a money laundering case was quashed as assessee had failed to make out a case for interference for the invocation of 226 of the Constitution and 482 of Cr.P.C.

Anandrao Vithoba Adsul Vs Enforcement Directorate (Bombay High Court) dated 14/10/2021

Regards,

Bipul Kumar

What is National Single Window System ? / All CG/SG approvals under one mouse click / Complete Business set up guidelines

Dear Sir,

Please find below YouTube video link on What is National Single Window System ? II All CG/SG approvals under one mouse click II Complete Business set up guidelines


https://youtu.be/lpV_U3bBmZE

Regards,
Bipul Kumar

Judiciary updates (Tax & Corporate Laws)-15 Nov 2021

Default bail U/s. 167(2) Cr.P.C. cannot be equated with discretion of Court U/s. 437, 438 or 439 Cr.P.C.

Amandeep Singh Bhui Vs Inspector (Preventive) Central Goods and Service Tax (Punjab and Haryana High Court) dated 28/10/2021

GST on reimbursement received from MMRDA

 In re Maha Mumbai Metro (M3) Operation Corporation Limited (GST AAR Maharashtra) dated 10/11/2021

Writ maintainable Alternative Remedy available examining records, facts mis-match

Kanunga Extrusion Private Limited Vs Assistant Commissioner (ST) (Madras High Court) dated 21/10/2021

Income Tax

No addition on account of capitalization of royalty expenses as same is revenue in nature

Honda Motorcycle and Scooter India Pvt. Ltd. Vs ACIT (ITAT Delhi) dated 09/11/2021

Other Corporate Laws

Stamp Duty refund cannot be denied for delay in Application due to Judicial Proceedings

Rajeev Nohwar Vs Chief Controlling Revenue Authority Maharashtra State, Pune and Others (Supreme Court of India) dated 24/09/2021

In a contempt jurisdiction, Court cannot travel beyond original judgment: SC

 V. Senthur And Another Vs M. Vijayakumar (Supreme Court of India) dated 01/10/2021

Onus to Prove Deficiency in Service is on Complainant: SC

SGS India Ltd. Vs Dolphin International Ltd. (Supreme Court) dated 06/10/2021

Regards,

Bipul Kumar

Judiciary updates-13th Nov 2021 (Corporate Laws & Income Tax)

Liability of ensuring that keyword is not an infringement of trademark lies on Google

DRS Logistics (P) Ltd. Vs Google India Pvt Ltd & Ors. (Delhi High Court) dated 30/10/2021

Criminal liability on officers arises only when offence is committed by company

Dayle De’souza Vs Government of India (Supreme Court of India) dated 29/10/2021

Forwarding of documents immediately by ED to AA after order of freezing passed under PML Rules

Since none of the other relevant material, which was the basis of the seizure under Section 17(1A) and the complaint under Section 17(4) of the PMLA were supplied to assessee, as the same were not even supplied by the ED to the AA. Thus, ED should forward a copy of the documents to the Adjudicating Authority immediately after a freezing order under PML Rule.

 J K Tyre And Industries Ltd Vs Directorate of Enforcement (Delhi High Court) dated 27/10/2021

Bombay HC grants injunction in favor of Zee Entertainment in dispute with Invesco

 Zee Entertainment Enterprises Ltd. Vs Invesco Developing Markets Fund (Bombay High Court) dated 26/10/2021

Rental income from sub-lease shall be considered as Business Income since same was business of assessee

 Shanthilal Movji Bhai Thakker Vs ITO (ITAT Chennai) dated 03/11/2021

Change in service conditions vis-à-vis non-issuance of notice of change under section 9A makes transfer order illegal

Caparo Engineering India Ltd. Vs Ummed Singh Lodhi And Anr (Supreme Court of India) dated 26/10/2021

Amount lying in stale draft account cannot be treated as income

DCIT Vs The Karur Vysya Bank Ltd. (ITAT Chennai) dated 03/11/2021

Regards

Bipul Kumar

खनन क्षेत्र की डिजिटल फोटो को जमा करने को लेकर पट्टेदार और आशयपत्र धारकों के लिए नियम बनाए गए (खनिज संरक्षण और विकास (संशोधन) नियम, 2021, Ministry of Mines Press Release dated 10 Nov 2021)

खनिज संरक्षण और विकास (संशोधन) नियम, 2021 अधिसूचित


खनन क्षेत्र की डिजिटल फोटो को जमा करने को लेकर पट्टेदार और आशयपत्र धारकों के लिए नियम बनाए गए

गलत सूचना दिए जाने के खिलाफ कार्रवाई करने का अधिकार भारतीय खान ब्यूरो (आईबीएम) को दिया गया

खान मंत्रालय ने 3 नवंबर, 2021 को खनिज संरक्षण और विकास (संशोधन) नियम- 2021 को खनिज संरक्षण और विकास नियम, 2017 [एमसीडीआर] में संशोधन करने के लिए अधिसूचित किया है।

खनिजों के संरक्षण, व्यवस्थित व वैज्ञानिक खनन, देश में खनिज के विकास और पर्यावरण की सुरक्षा के संबंध में नियम उपलब्ध कराने के लिए एमसीडीआर को खान और खनिज (विकास और विनियमन) अधिनियम, 1957 [एमएमडीआर अधिनियम] की धारा 18 के तहत बनाया गया है।

राज्य सरकारों, उद्योग संघों, खनिकों, अन्य हितधारकों और आम जनता के साथ व्यापक परामर्श के बाद संशोधित नियम बनाए गए हैं। इन नियमों में संशोधन के प्रमुख बिंदु निम्नलिखित हैं:

(i) ये नियम निर्धारित करते हैं कि भारतीय खान ब्यूरो (आईबीएम) के विशिष्ट निर्देश के अनुरूप खान से संबंधित सभी योजना और खंडों को डिजिटल वैश्विक स्थिति निर्धारण प्रणाली (डीजीपीएस) या कुल स्टेशन या ड्रोन सर्वेक्षण के संयोजन का उपयोग कर कुछ या सभी पट्टों के संबंध में तैयार किए जाएंगे।

(ii) पट्टेदार और आशयपत्र धारकों के खनन क्षेत्र की डिजिटल फोटो जमा करने का प्रावधान करने के लिए नए नियम को जोड़ा गया है। 1 मिलियन टन या उससे अधिक की वार्षिक खनन योजना वाले पट्टेदारों या 50 हेक्टेयर या उससे अधिक के पट्टे वाले क्षेत्र केपट्टेदारों को हर साल पट्टा क्षेत्र और पट्टे की सीमा से 100 मीटर बाहर तक की ड्रोन सर्वेक्षण फोटो जमा करने की जरूरत है। अन्य पट्टेदारों को हाई रेजोल्यूनश सैटेलाइट फोटो जमा करने होंगे। इस कदम से न केवल खान नियोजन अभ्यासों, खानों की सुरक्षा में सुधार होगा, बल्कि खनन कार्यों का बेहतर पर्यवेक्षण भी सुनिश्चित होगा।

(iii) नियम 34ए के अनुसार हाई रिजोल्यूशन जियोरिफ्रेन्सड अर्थो-रेक्टिफाइड मल्टीस्पेक्ट्रल सैटेलाइट फोटो जमा करने और ड्रोन सर्वेक्षण के उपयोग के लिए कार्टोसैट-2 उपग्रह लाआईएसएस-IV सेंसर से प्राप्त सैटेलाइट फोटो को भू-संपत्ति मानचित्र के पैमाने पर जमा करने की जरूरत को प्रावधान की प्रविष्टि के मद्देनजर हटा दिया गया है।

(iv) अनुपालन के बोझ को कम करने के लिए दैनिक रिटर्न के प्रावधान को हटा दिया गया है। वहीं, मासिक या वार्षिक रिटर्न में अधूरी या गलत या फर्जी जानकारी के खिलाफ कार्रवाई करने की शक्ति राज्य सरकार के अतिरिक्त आईबीएम को भी दी गई है।

(v) 25 हेक्टेयर से कम के पट्टे वाले क्षेत्र ‘ए’ श्रेणी की खदानों के लिए एक अंशकालिक (पार्ट टाइम) खनन इंजीनियर या एक अंशकालिक भू-वैज्ञानिक की नियुक्ति की अनुमति दी गई है। इससे छोटे खनिकों पर अनुपालन बोझ कम होगा।

(vi) रोजगार के अवसर बढ़ाने के लिए, खान सुरक्षा महानिदेशक द्वारा जारी पात्रता के एक द्वितीय श्रेणी प्रमाण पत्र के साथ विधिवत मान्यता प्राप्त संस्थान की ओर से दिया गया खनन और खान सर्वेक्षण में डिप्लोमा को पूर्णकालिक खनन इंजीनियर के लिए तय पात्रता में जोड़ा गया है। इसके अलावा अंशकालिक खनन इंजीनियर के लिए भी पात्रता जोड़ी गई है।

(vii) नियमों में दंड संबंधी प्रावधानों को युक्तिसंगत बनाया गया है। पहले नियम उल्लंघन की गंभीरता के बावजूद हर नियम के उल्लंघन के लिए 2 साल तक के कारावास या 5 लाख रुपये तक के जुर्माने या दोनों, के प्रावधान थे। नियमों में संशोधन निम्नलिखित प्रमुख शीर्षकों के तहत नियमों के उल्लंघन को वर्गीकृत करता है:

क. बड़े उल्लंघन: कारावास की सजा, जुर्माना या दोनों।

ख. मामूली उल्लंघन: जुर्माने को कम किया गया, ऐसे उल्लंघनों के लिए केवल जुर्माने का दंड निर्धारित किया गया है।

ग. अन्य नियमों के उल्लंघन को अपराध की श्रेणी से हटा दिया गया है। इन नियमों मेंरियायत पाने वाले या किसी अन्य व्यक्ति पर कोई विशिष्ट बाध्यता को आरोपित नहीं किया। इस तरह, 24 नियमों के उल्लंघन को अपराध मुक्त कर दिया गया है।

(viii) निर्धारित अवधि के भीतर अंतिम खदान बंद करने की योजना प्रस्तुत न करने की स्थिति में पट्टाधारक के वित्तीय बीमा या परफॉरमेंस सिक्योरिटी को जब्त करने के प्रावधान को जोड़ा गया है।

(ix) श्रेणी ‘ए’ और श्रेणी ‘बी’ की खदानों के लिए वित्तीय बीमा की राशि को मौजूदा तीन और दो लाख रुपये से बढ़ाकर क्रमशः पांच लाख रुपये और तीन लाख रुपये कर दिया गया है।

संशोधन नियम की अधिसूचना खान मंत्रालय की वेबसाइट  (www.mines.gov.in) पर उपलब्ध है।

Judiciary updates-12th Nov 2021 (Income tax, GST & Corporate Laws)

Income Tax

ITAT disallows grossing up of TDS deducted on interest paid to AE

Lite-on Mobile India Pvt. Ltd. Vs DCIT (ITAT Chennai) dated 03 Nov 2021

Disallowing finance charges, which were allowed in earlier years, needs re-consideration – Matter remanded back to AO

Southern Hills Developers Pvt. Ltd. Vs DCIT (Karnataka High Court) dated 31 Aug 2021

Deduction allowable on loss suffered by assessee on Foreign Exchange Fluctuation Loss

PCIT Vs United Spirits Ltd. (Karnataka High Court) dated 02 Sept 2021

No interest expense disallowance when own fund exceeds capital work-in-progress

Axis Bank Limited Vs DCIT (ITAT Ahmedabad) dated 28 Oct 2021

GST

Separate GST registration need not be obtained at the place of importation

In re Pine Subsidiary Industry (GST AAR Karnataka) dated 29/10/2021

AAR cannot give ruling on whether HSN or SAC needs to be mentioned in invoice

 In re GEW (India) Pvt. Ltd. (GST AAR Karnataka) dated 08/11/2021

GST on job work services such as anodizing, plating, on goods/materials belonging to registered persons

In re ALCOATS (GST AAR Karnataka) dated 29 Oct 2021

Manpower services provided to Government entities not exempt from GST

 In re Sree Vinayaka Enterprises (GST AAR Karnataka) dated 29/19/2021

AAR cannot give ruling on value for levy of IGST on imports

In re HDL Industries (GST AAR Karnataka) dated 29/10/2021

Corporate Laws

Gold smuggling not covered within the definition of terrorist act under Unlawful Activities (Prevention) Act

Mohammed Shafi P. Vs National Investigation Agency (Kerala High Court) dated 02 Nov 2021

Arbitrator has Substantial Discretion in Awarding Interest U/s. 31(7)(a) of Arbitration Act: SC

Punjab State Civil supplies Corporation Limited (SC dated 20/10/2021)

Regards,

Bipul Kumar

NALSA observes Legal Services Day (Ministry of Law and Justice Press Release dated 09 Nov 2021)

The National Legal Services Authority (NALSA) observed Legal Services Day in Greater Noida, Uttar Pradesh today. iOS Mobile App was also launched on the occasion. Shri Justice N.V.Ramana, Chief Justice of India & Patron-in-Chief, NALSA was the Chief Guest for the function. Union Minister of Law & Justice Shri Kiren Rijiju and Shri Justice Uday Umesh Lalit were the guests of honour for the function. Shri Justice Rajesh Bindal, Chief Justice, Allahabad High Court and Shri Justice M.N.Bhandari, Executive Chairman, UP State Legal Services Authority and other dignitaries including Judges, Supreme Court of India, Judicial Officers, etc. shall also be gracing the said occasion.

Shri Justice Uday Umesh Lalit lauded the students of Maharishi University who launched a skit on the occasion on the importance of Legal Aid Awareness. He stressed the importance of the wide dissemination through various modes of communication in making people aware of people’s constitutional right to get free legal aid. He wished to eradicate the lack of knowledge on this right so that more people will come forward to avail of the right. He stressed the importance of the law students engaging in the legal aid events to eradicate the ignorance about constitutional rights of the citizens.

Addressing the gathering, Shri Kiren Rijiju commended the legal services authorities on their initiatives and measures taken for spreading legal awareness in each part of the country. He said judges are busy with their work on hearing the cases and so services of NALSA are required to spread the legal awareness to the citizens. He expressed happiness in seeing Lok Adalat being conducted and serving justice on time. He said this brings justice to the doorsteps of the people. He said more focus should be given to the lower judiciary. He said the bridge between access to justice and the common man has to be bridged. He said a strong judiciary is required for democracy to be robust.

He emphasized on bringing all the Law Colleges & Universities in upgrading their standards. He said the Government is looking at alternative redressal mechanisms and other such avenues for the career of law students. He recalled the Prime Minister’s promise of making India a global hub of arbitration. He  argued for bringing a simple and small law so that the common man can understand the law easily.

The Minister mentioned Article 8 of Universal Declaration of Human Rights, 1948 that provides that “Everyone has the right or an effective remedy by the competent national tribunals for acts violating the fundamental rights granted by the constitution or by law.” 

He noted that Article 39 A of the Constitution of India spells out the paradigm for ensuring justice to all. He said the Constitutional vision of “Equal Justice and Free Legal Aid” is imperative for a nation whose millions of people are living in abject poverty. He said having fundamental rights doesn’t make a country great. People should be aware of the fundamental duties and oblige them. He said a common man can live a dignified life, if he is given proper legal aid.

Shri Justice NV Ramana lauded NALSA for spreading legal awareness and upholding justice for the poor and the needy. He quoted Swami Vivekananda’s mantra “Arise, awake and stop not till the goal is reached” and said that the skit performed a while ago was reflective of this mantra. He commended the law students for making the legal services day a grand success. He expressed happiness for observing legal services day on such a grand scale.

He recalled the legal services movement during the period of freedom struggle. He said earlier the service of legal aid was confined to the courtroom and now it has expanded to legal awareness, legal literacy, social action litigation, alternative dispute resolution mechanism, etc.

He said on this occasion a new building for the mediation centre was inaugurated in the supreme court premise. He urged the law students to be the voice of those who have none and be alert about the social problems and act to solve it. He lauded the law students for disseminating legal awareness among the people. He commended the launch of the multi-language portal of NALSA thereby extending the reach of the NALSA. He commended the work of NALSA in spreading legal awareness among the people.

Hon Chief Justice of India Justice N V Ramana inaugurated a four day short film festival on the Legal aid awareness which is being organised under the aegis of the Chhattisgarh State Legal Services Authority. Over 300 entries have been received for the festival on Crimes on women and children, drug awareness etc.

Prizes were also distributed to the winners of the Moot Court Competition and elocution competition among students of Law Colleges. 

***

Judiciary updates (Income tax, GST & Corporate Laws) -09th Nov 2021

Income Tax

ITAT condone the delay in appeal filing as delay was in e-filing & not on manual filing

Gemini Iron and Steel (P) Ltd. Vs ITO (ITAT Chennai) dated 02/11/2021

TDS not deductible on exempt supplementary rent – Section 10(15A)

InterGlobe Aviation Ltd. Vs JCIT (ITAT Delhi) dated 29/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

GST

SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

Godrej & Boyce Mfg. Co. Ltd. Vs Union of India and Ors. (Bombay High Court) dated 29/10/2021

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Corporate Laws

Judgment debtor cannot raise objections to executions in installments: SC

Dipali Biswas & Ors. Vs Nirmalendu Mukherjee (Supreme Court of India) dated 05/10/2021

Beneficial scheme cannot run contrary to express terms of provisions

 Union of India Vs Abhiram Verma (Supreme Court of India) dated 30/09/2021

Regards

Bipul Kumar