Updates: Income Tax, GST & Company Law (22 June 2017)

Updates: Income Tax, GST & Company Law (22 June 2017)


INCOME TAX


1.Additions u/s 69 was unsustainable if assessee had duly explained source of investments

Section 69 addition unjustified where assessee had explained source of investment but Commissioner (Appeals) failed to consider same) [2017] 82 taxmann.com 268 (Amritsar - Trib.)


2. HC granted stay on pre-deposit requirement as demand raised on assessee was less than his total refund due 


Where on merit assessee, a state Government charitable institute, was likely to win the case and further it had refund due and pre-deposit in other cases quantifying more than amount required to be pre-deposited in instant appeal, stay on pre-deposit to be granted) [2017] 82 taxmann.com 172 (Punjab & Haryana).


3. Time limit to file rectification application couldn't be extended by virtue of any subsequent order: HC

No appeal against original assessment on issue of 'set off of capital loss' being filed while issue of 'quantum of capital gain' was challenged, period of limitation for rectification of order on first issue would not get extended by virtue of subsequent order) [2017] 82 taxmann.com 148 (Allahabad)

4. Declaring an income admitted during search saves assessee from section 271AAA penalty: ITAT 

Where notice was issued under section 153A and assessee filed return, penalty under section 271AAA could not be levied on amount which assessee had already admitted in statement recorded under section 132(4) during search but was leviable on income which was not admitted in above statement) [2017] 82 taxmann.com 173 (Mumbai - Trib.)

5. Special audit of Ashram of 'Asharam Bapu' was valid if search papers specified large scale money laundering 

Where during search of Asharam Bapu's ashram across country, large scale money laundering was revealed and looking at multiplicity and complexity of transactions found in requisitioned documents in 45 gunny bags, Assessing Officer passed order of special audit after obtaining proper approval of Principal Commissioner and giving opportunity of hearing, same could not be said to be illegal) [2017] 82 taxmann.com 207 (Gujarat).


Goods and Service Tax (GST)

1. Prime Minister Narendra Modi today said that the roll-out of the Goods and Services (GST) tax from July 1 will be "historic" and the world will witness how political parties of different ideological hues came together to usher in this major reform (Source - http://economictimes.indiatimes.com [20-06-2017])

2. Registration of firms can be cancelled for not passing on benefits 

Companies not passing on benefits of reduced prices on account of the proposed goods and services tax (GST) to customers may lose their registration. An anti-profiteering authority that will be set up will have the powers to debar an errant assessee from conducting business if he does not pass on lower prices on account of the GST to customers. Finance Minister Arun Jaitley has said the anti-profiteering provisions are not to be used unless the government is forced to do so.

Based on the recommendations of the Directorate General of Safeguards, if Authority is satisfied that profiteering has been done by a company, it may order:
  •  Reduction in prices
  •  Returning money to the customer along with interest
  •  Depositing money in Customer Welfare Fund in case the customer does not claim it or is not identifiable
  •  Imposition of penalty equivalent to the amount of profiteering
  •  Cancellation of registration Source - http://www.business-standard.com [21-06-2017]

3. Won't blink on GST launch, no excuse for biz not being ready: FM Jaitley(Source -http://www.business-standard.com [21-06-2017]

4.Hospitals can bear up to 2% hike in costs due to GST: Apollo Hospitals

    Health care on tax drip

  •    Health care exempt from GST; maintains status quo
  •   Diagnostics put in 18% and 12% tax slabs; diagnostics placed at total 16% prior to    GST
  •    GST of 18% also on furniture such as beds, dentist's chair and operating table
 •  Some medicines have become more expensive under the GST regime Source - http://www.business-standard.com [21-06-2017]




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