Updates -Income tax, GST & Company Law 10 June 2017

Updates -Income tax, GST & Company Law
10 June 2017

Spirituality
Yada samharate cayam
Kurmo nganiva sarvasah
Indriyanindriyarthebhyas
Tasya prajna pratisthita

(Text 58, Ch2, Contents of Gita Summarized)

Meaning:  One who is able to withdraw his senses from sense objects, as the tortoise draws its limbs within the shell, is firmly fixed in perfect consciousness.


                                                                                                                               
Refer Link http://inspireourself.blogspot.in



Income Tax

1.    Reassessment was valid if loss on sale of share was set-off on misstated fact that it was linked to brokerage business (SLP dismissed against High Court ruling that where originally loss on account of sale of shares was allowed on misrepresentation of fact that impugned loss was connected with sharebroking business of assessee, re-opening of assessment treating said loss as speculative was justified) [2017] 82 taxmann.com 10 (SC)

2.    AO could enquire into unexplained credit found in books even under unamended provision of sec. 68: HC (Even under unamended provision of section 68, an income-tax officer was not precluded from making an inquiry about true nature and source of sum found credited in books even if same was credited as receipt of share application money.) [2017] 82 taxmann.com 12 (Calcutta)/[2017] 394 ITR 27 (Calcutta).

3.    No disallowance of interest if advance was made to subsidiary out of reserves and not from interest bearing funds (Where no interest bearing fund was advanced to subsidiary company on account of share application money, no part of interest expenditure was to be disallowed) [2017] 82 taxmann.com 11 (Bombay)

4.    AO wasn’t justified in hiking GP ratio merely due to increase in turnover without considering other relevant facts (1.Where in year under consideration, turnover of assessee had increased, Gross Profit Ratio would be lesser than that of earlier year 2. Merely because contractee agreed to pay diesel expenses to extent of 30 per cent, excess expenses above 30 per cent borne by assessee could not be disallowed) [2017] 82 taxmann.com 18 (Gujarat))

5.    Withdrawing statement rendered during survey after a period of 2 years couldn't be said to be bona fide: HC
(Where assessee surrendered certain income by way of declaration and withdraw same after two years without any satisfactory explanation, it could not be treated as bona fide and, hence, addition would sustain) [2017] 81 taxmann.com 476 (Delhi)
6.    High Court admits appeal against Rs 2.6 crores addition on ‘Dharma Production’
(Appeals admitted to decide whether expenditure incurred in respect of preparation of positive prints as well as advertisement and publicity of film were not part of cost of production of film under rule 9A of the Income-tax Rules, 1962 and whether order deleting penalty was erroneous and contrary to well established principles of law as Tribunal had committed mistake in deleting addition on account of positive films and on account of advertisement and publicity as these expenditures were not part of cost of production made by Commissioner(Appeals) by invoking rule 9A. The assessee did not provide any evidence with regard to services rendered. The mis-match in bills were not explained and there was no independent evidence to substantiate claim of expenditure incurred for purpose of business) [2017] 82 taxmann.com 163 (Bombay)

7.    Sec. 54 relief was available even if investment was made in new property before execution of sale deed
(Refer full judgment on link https://incometaxindia1.blogspot.in/2017/06/sec-54-relief-available-even-if.html)

                                 
Goods and Service Tax (GST)

1.    GST Council constitutes 18 Sectoral Groups for smooth roll-out of GST (Refer Press Information Bureau, Government of India, Ministry of Finance dated 09th June 2017)

2.    GST may impact gold demand in short term: WGC(The net impact of GSTin the world's largest gold consumer market would be "positive" even as there will be short-term challenges, affecting not only the demand but also manufacturers/retailers' working capital and recycling business, the World Gold Council (WGC) said today.) (Source http://timesofindia.indiatimes.com [09-06-2017]

3.    Commerce Ministry sets up GST facilitation cell to address issues regarding GST (Source - http://www.business-standard.com [08-06-2017])
4.    Need more time to prepare for GST rollout, says manufacturers' body(The All India Manufacturers'Organisation (AIMO) has asked the Centre to postpone the implementation of goods and services tax(GST) to October 1, as the industry has no time to prepare for the new tax regime.) Source - http://www.business-standard.com [08-06-2017]
5.    Paranoid about security, setting up analytics centre: GSTN CEO
(GST-Network, the firm providing IT backbone for Goods and Services Tax (GST), will set up a hi tech security monitoring and analytics centre to forewarn on cyber threats and secure the IT system handling over 300 crore invoices a month, a top official said.) Source - http://www.business-standard.com [08-06-2017]
6.    Walmart India launches toll-free GST helpline to enable smooth transition (Source - http://www.business-standard.com [08-06-2017])
7.    Industry gets 90 days to claim credit for GST transition stock(Traders and retailers can file declarations within 90 days claiming a tax credit for transition stock after the GST rolls out from July 1.) Source - http://economictimes.indiatimes.com [07-06-2017]







FEMA,FCRA

1.    FAQs on Non resident accounts in India (Updated 2017)
(Refer link https://femanfcra.blogspot.in/2017/06/faqs-on-non-resident-accounts-in-india.html)

2.    Updation of Bank Accounts on FCRA Website before 22 June (FCRA Dept has  issued circular on 7th June 2017 refer link  https://fcraonline.nic.in/home/PDF_Doc/fc_Circular_30052017.pdf stating that all NGOs must ensure that their latest Designated and Utilisation accounts should be updated on the FCRA website.)

Company Law

1.    Petition for initiation of corporate insolvency process to be dismissed when debts are barred by limitation: NCLT (Where operational creditor entered into a business conducting agreement with corporate debtor to conduct and manage business of running a music concept store on its behalf subject to payment of monthly conducting fee, since due to failure of corporate debtor to pay agreed amount it was dispossessed on 26-3-2012, a subsequent petition filed under section 9 against corporate debtor in year 2017 was barred by limitation) [2017] 82 taxmann.com 14 (NCLT - Mum.)





Refer Link for regulatory updates on Income tax, GST, Company Law, FEMA: 

1. https://incometaxindia1.blogspot.in 
2. http://gstindia1.blogspot.in
3. http://secretarialandcorporatelaws.blogspot.in
4. https://femanfcra.blogspot.in

Bipul Kumar
Business Consultant
Email : businesssosimple@gmail.com
Mob.: 9560084833

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