Start-ups forced to cut their losses?

The Start-up India campaign introduced by the Prime Minister in January 2016 completed its 5th year in December 2020. The campaign aimed at making India one of the largest Start-up eco-systems in t...

Arrangements of sec. 50C not applicable on exchange of leasehold rights in land and building

During the assessment proceedings, the Assessing Officer (AO) noticed that Stamp Duty value of the property transferred by assessee was more than its sale consideration.  

AO required as...

User guide for filing new online application to Policy Relaxation Committee under FTP: DGFT

Section 2.58 of FTP accommodates unwinding of Policy and Procedures on grounds of authentic difficulty and unfavorable effect on exchange. A Policy Relaxation Committee will be fittingly establishe...

Notional interest earned on refundable security deposit can't be treated as consideration

Fact of the Case 

The appellant was engaged in the business of renting commercial property. It intended to enter contractual arrangements with potential tenants whereas ...

Another CIRP couldn’t be maintained against corporate debtor when CIRP against it was already admitted

In the instant case, the Corporate-Debtor Company was involved in real estate activities and the Petitioner-financial creditor, an individual, agreed with corporate debtor to buy residential flat d...

Matter about sections in balance record add up to affirmation of debt for limitation period alluded to a bigger seat

The corporate debtor had availed a loan from the lenders, and it failed to repay dues and banks assigned debt in favour of Asset Reconstruction (the financial creditor). 

    &...

Piyush Goyal looks for India Inc's aid to ensure new startup don't sell out 'cheap' to international investor

Days after Prime Minister Narendra Modi reported a Rs 1,000-crore seed fund for a new startup, Commerce Minister Piyush Goyal has now asked to set up Indian organizations and business-people to "de...

Other Income - Taxable even if irrecoverable

A severe debt, in simple terms, means a debt that cannot be recovered. Companies often find themselves in an uncomfortable position chasing debtors to recoup their debts. The pain can be double if ...

No TDS u/s 194H on service charges paid to companies for routing transactions of payments

Assessee was a nationalised bank. During assessment proceedings, revenue submitted that a third partly viz., National Financial Switch and Cash Tree were acting as agents and were collecting charge...

GST to be levied on common maintenance fund/deposit collected by society from its members

Fact of the Case 

  • The applicant society provided services to maintain common facilities/amenities to its members.  
  • It filed a motion for advance judgm...
No GST on supply of goods from a spot in a non- taxable area to somewhere else in non- taxable region: AAR

Fact of the Case 

  • The applicant company was engaged in the business of manufacturing goods like pumps designed for handling water, single and multi-stage pumps desi...
Once resolution has been approved in respect of corporate debtor it becomes binding on all creditors including Govt

In the instant case, pursuant to petition to initiate corporate insolvency proceedings, the appellant-Corporate debtor's resolution plan was approved by the NCLT.  

Thereafter, the marke...

High Court refuses to reopen its own decision regarding eligibility of exemption u/s 58A

In the instant case, the Registrar of Companies complained to petitioners, a non-banking financial company and its officers, under section 58A of the Companies Act, 1956/ Corresponding Section 73 o...

Govt may announce steps to ease e-commerce export & imports

The public authority in the financial plan one week from now is relied upon to report estimates, for example, broadening the facility of mass clearance for e-commerce imports and exports with the e...

Constitutional validity of Rule 86B challenged in Gujarat HC, notice issued to Govt

Rule 86B of the Central Goods and Services Tax Rules, 2017 has been introduced w.e.f. 1st January 2021 vide Notification No. 94/2020 - Central Tax which allows utilization of IT...

Power charges collected by the lessor on sub-meter readings will add up to recovery by genuine agent: Gujarat AAR

Fact of the Case 

The applicant entered into a lease agreement with Govt. to provide a building on rent along with interior infrastructure (such as fittings, lightings e...

Reading a section vis-à-vis Understanding a decision

Now and again when you experience a choice made by a legal authority clearly, subsequent to appreciating and clarifying the subtleties of misleadingly comparative arrangements, You, as an expert, g...

Royalty paid to acquire technical know-how to be used in manufacture is capital expenditure

Assessee paid royalty to Hitachi Construction Machinery Company Private Limited, Japan (HCM). Such an amount was paid for the use of technical know-how and a grant of rights for manufacturing Hitac...

JSW Steel's net benefit jumps multiple times to Rs 2,669 crore

Sponsored by a solid recovery in steel interest, JSW Steel on Friday revealed a heavenly arrangement of numbers for the three months of October-December, as the net benefit expanded almost multiple...

Expert opinion: Justice cannot be blindfolded

One of the most recognized legal symbols visible in the architecture of the Supreme Court Building in the United States of America is the female figure representing Justice, who is depicted in thre...

AO ought to allot purposes behind award of lower derivation declaration if assessee has applied for nil allowance certificate

Assessee filed an application seeking issuance of a certificate for nil deduction of tax. In this connection, assessee was asked to provide certain details which were provided by it. The applicatio...

Active Pharmaceutical Ingredients not eligible for concessional rate of GST as not directly administered in humans: AAR

Fact of the Case 

  • The applicant was engaged in manufacture of Active Pharmaceutical Ingredients known as bulk drugs namely Danuorubicin, Epirubicin, Idarubicin and ...
Proficient expenses of director other than pay is available under RCM premise: AAAR Rajasthan

Fact of the Case 

  • The appellant made bone China Crockery, Transfer Sheet Decalcomania, other Utensils Item and Moulds. It filed an application for an advance ruling...
An IP who is more than 70 yrs of age can't make an application for grant of 'Authorization for Assignment'

Regulation 7A of IP regulations requires every Insolvency Professional (IP) to have ‘Authorization for Assignment’ (AFA) before undertaking any assignment after 31-12-2019.Without AFA, an IP is...

NCLT admits ISRO-arm Antrix Corp. supplication to liquidate Devas mixed media for getting contract from Govt. through misrepresentation

In the instant case, the NCLT admitted plea filed by ISRO-arm Antrix Corporation Limited to wind up Devas multimedia under section 271 and Section 272 of Companies Act, 2013 for obtaining contract ...

About 50% respondents feel Budget 2021 will revive their business

Around 50% of the business respondents feel that the upcoming Union Budget will revive their business, while a dominant part are optimistic about financial recovery and request improvement. 

Once composite installment made in regard of 90 years rent is suitable over time of rent in equivalent extent

Assessee took a plot on lease for a term of 90 years. It had an option to pay the advanced annual rent on an annual basis or commuted one-time lease lease for the period of lease. Assessee opted fo...

CBDT assign all punishment cases to National Faceless Penalty Center besides in 3 cases

In exercise of power conferred pursuant to paragraph 3 of the Faceless Penalty Scheme, 2021, the Central Board of Direct Taxes (CBDT) has directed that all penalty cases,  

pending as we...

Banking Sector: Key GST Implications and Challenges

The introduction of GST was one of the most important tax reforms and it is imperative to understand key GST implications relevant to Banks/Non-Banking Finance Companies/Financial Institu...

Science Center can't be treated as Educational Institution, GST exemption not available

Fact of the Case 

The applicant Science Centre was established by India's renowned Scientist, Dr. Vikram Sarabhai to inculcate scientific temper among the students at yo...

IBBI confines Insolvency Professional to acknowledge new project for disregarding segment 208

In the instant case, the NCLT admitted application under section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) of corporate debtor.&nbs...

SC protects new owners from liability of prior offences of erstwhile management of corporate debtors

In this landmark ruling, the Supreme Court upheld sections 3, 4, and 10 of the IBC (Amendment) Act, 2020. Section 3 of the Amendment Act amended section 7(1) of the IBC requiring a minimum threshol...

Government is working with SBI to launch an e-commerce portal for MSME

The MSME Ministry is working with the State Bank of India to launch the e-commerce portal for MSMEs that will help them market and sell their items in India and universally like stages, for example...

Right of restoration of appeal vis-à-vis Vishwas Act’

The Direct Tax Vivad Se Vishwas Act, 2020 was promulgated and notified as Act No. 3 of 2020 dated 17th March 2020 pursuant to being accorded assent from the Hon'ble President of India. &n...

Onus is on AO to create similar cases in order to demonstrate that installment made to directors were immoderate

During the scrutiny proceedings, the Assessing Officer (AO) asked the assessee-company to explain remuneration paid to its directors. The assessment furnished the details of remuneration paid to di...

CBIC issued instructions for its officers while filing Appeals/Petitions before Courts/ Tribunals

Circular No. 1077/01/2021 – CX Dated 19th January 2021

BIC has directed its officers to strictly adhere to the aspect of limitation in filing appeals/ petitions before Cour...

Both settling and execution under GST can be begun for giving fake invoices

Fact of the Case 

The petitioners were company directors and searched the company's premises of the petitioners and some documents came to be seized. The department clai...

IBBI discards SCN issued to enlisted valuer association for selecting ineligible individuals with an alert

In the instant case, a Show Cause Notice was issued to the Managing Director of ‘PVAI Valuer Professional Organization’ (PVAI-VPO) registered with the Insolvency and Bankruptcy Board of India (...

Government should boost & inspire local production, supply chains by partnering with MSMEs

The MSME sector was one of those sectors that were worst hit by covid-19 pandemic. With more than 25-30 million positions lost in the time of March-June 2020 alone according to SKOCH Group overview...

Sec. 40A(3) disallowances couldn't be attracted if identity of sellers & source of cash payment were established

A notice was issued to assess under Section 153A. In response to such a notice the assessee filed a return of income declaring nil income.  

Thereafter, a notice was issued for scru...

Transfer of Development Rights is taxable under GST

Fact of the Case 

The applicant was involved in the business of undertaking construction development projects including building residential apartments, commercial compl...

NCLAT maintains confirmation of appeal u/s 7 on inability to give ownership of granted flats

In the instant case, the Respondent was purchaser of flat in the appellant-corporate debtor's project and booking of flat was made under a Construction linked plan with stipulated period for comple...

Director not associated with everyday affairs isn't liable of misrepresentation in issue of GDRs by Company: SAT

In the issuance of GDR by the company 'M', a bank account was opened with Lisbon Bank, Banco, for purpose of receiving subscription money in respect of GDR and bank was authorized to use subscripti...

To create awareness about SME listing BSE has signs MoU with Maharashtra government

Leading stock trade BSE said it has held hands with the Maharashtra government to make mindfulness about advantages of listing among small and medium enterprises (SMEs) of the state.  

MSMEs look for extension of credit guarantee scheme with Interest subvention scheme

MSMEs, which were allotted Rs 3.7 lakh crore of the Atmanirbhar bundle a year ago by the public authority, are looking for an additional lift to the credit side of their requirement to get back in ...

A liberated director will be held obligated uniquely in regard of a demonstration by Co. which happened with his assent

updated In the instant case, the Scheme was floated by the company Assurre Agrowtech Limited, and it came to notice by the SEBI that the Scheme was nothing else but a collective investment scheme w...

Prohibition on auditor not economical proof to induce that such auditor acted dishonestly

The appellant was appointed as statutory auditor of a company who issued an auditor report for financial years 2014-15 and 2015-16. Thereafter, inspection of respondent company was ordered based on...

ITAT will undoubtedly choose claim on benefits regardless of whether assessee was absent during hearing : Bombay High Court

Assessee-challenged the assessment orders passed by the Assessing Officer (AO) by assessing income of assessee under section 144 read with section 147 of the Income-tax Act.CIT(A) excused the allur...

Advantage of Sec. 54G exception isn't accessible if land was advised as metropolitan land after its deal: High Court

Assessee had a factory at Anekal, Bangalore. It decided to shift its operations from a district in the State of Andhra Pradesh. The plot held by the assessee was sold on 26-9-1997 and the sale proc...

Papad of various shapes and sizes to be named 'un-seared FRYUMS' under heading 2106 90 99, available at 18%

Fact of the Case

  • The candidate was occupied with the matter of assembling and promoting of "Papad" of various shapes and sizes which would stay in an un-cooked/semi-cook...
Reimbursement of costs made by the HO to contact office can't be treated as a thought: AAR

Fact of the Case

  • The applicant was having no other source of income and solely dependent on the head office (HO).It received reimbursement of all the expenses incurred f...
Major things & Tips to consider while taking Home Loan

Property is a resource that encourages you to receive various finance-related advantages. Regardless of whether you are searching to buy property for investment purposes or for finding your new hom...

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