Tax
Tax Cases Weekly Round-Up: 20 August To 26 August, 2023
Supreme CourtSupreme Court Recalls Judgment Holding That No Indirect Taxes Can Be Levied On Duty-Free Shops At AirportsCase Title: Commissioner of CGST and Central Excise Mumbai East vs Flemingo Travel Retail LtdCitation: 2023 LiveLaw (SC) 673The Supreme Court has recalled its Division Bench judgment dated 10 April 2023, where the top court had ruled that Duty-Free Shops situated in the...
CBDT Allows Income Tax Exemption To Unique Identification Authority Of India
The Central Board of Direct Taxes (CBDT) has granted income tax exemption to the Unique Identification Authority Of India.‘Unique Identification Authority of India’ is a statutory Authority established under the provisions of the AADHAAR Act, 2016 by the Government of India.The CBDT has notified the tax exemption in respect of grants/subsidies received from the Central...
DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court
The Delhi High Court has held that the Directorate General of Goods and Service Tax Intelligence (DGGI) cannot be stopped from taking intelligence-based enforcement action when investigations by other authorities are going on.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that if any of the authorities have found it necessary to investigate the petitioner based on...
SEBI Mandates Additional Disclosures By Foreign Portfolio Investors
The Securities and Exchange Board of India (SEBI) has issued a circular aimed at promoting heightened transparency among Foreign Portfolio Investors (FPIs) meeting specific criteria. This initiative comes as a response to concerns regarding concentrated equity portfolios and potential misuse of the FPI route for regulatory circumvention.The circular highlights the observation that certain...
Bombay High Court Quashes Reopening Of Assessment After 4 Years In The Absence Of Concealment By Assessee
The Bombay High Court has quashed the reopening of the assessment after 4 years in the absence of concealment by the assessee.The bench of Justice K. R. Shriram and Justice Firdosh P. Pooniwalla observed that where the assessee has fully disclosed all the material facts, it is not open for the Assessing Officer to reopen the assessment on the ground that there is a mistake in the assessment....
SEBI Notifies Modification In Cyber Security, Cyber Resilience Framework Of Stock Exchanges, Clearing Corporations & Depositories
In a recent development, the Securities and Exchange Board of India (SEBI) has announced a notable modification in the Cyber Security and Cyber Resilience framework for Stock Exchanges, Clearing Corporations, and Depositories. SEBI's latest circular dated August 24, 2023, revises certain aspects of the existing cybersecurity guidelines. These changes stem from previous circulars,...
DPIIT Notifies Draft Patents (Amendment) Rules, 2023
On August 22, 2023, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, released the "Draft Patents (Amendment) Rules, 2023". These rules are aimed at updating the regulation of patent applications and their processing, which are currently governed by the Patents Rules of 2003 (2003 Rules).The 2003 Rules replaced the previous Patents Rules of 1972...
CBDT Operationalises Introduces E-Advance Ruling In Delhi, Mumbai
The Central Board of Direct Taxes (CBDT) on 19.08.2023, issued a notification regarding the operationalisation of the Board for Advance RulingsCBDT had constituted three Boards for Advance Rulings in September, 2021. Further, by Notification No. 07 of 2022, the Scheme of E-advance Ruling was introduced with an objective to make the entire process of advance rulings with a minimal interface...
HSBC Not Liable To Deduct TDS On Nostro Account Maintenance Charges: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, HSBC, was not under obligation to withhold tax from Nostro Account Maintenance Charges in terms of Section 195 of the Income Tax Act and therefore could not be treated as an ‘assessee in default’.The bench of Rahul Chaudhary (Judicial Member) has observed that Nostro Account Maintenance Charges are in...
ITAT Deletes TP-Adjustment On Payment Of Export Commission And Model Fee Against Honda Subsidy
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the adjustment on account of Arm's Length Pricing (ALP) of the export commission payment against the Honda subsidy.The bench of Challa Nagendra Prasad (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the issues of transfer pricing adjustment with respect to the determination of an ALP of Rs. nil...
Interest Certificate Not Necessary For Claiming Section 24(B) Deduction: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the interest certificate is not necessary for claiming section 24(b) deduction.The bench of Aby T. Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that PCIT erred in holding that the Assessee was ineligible for interest deduction as it did not furnish the certificates from the lender banks as...
ITAT Allows Rs.1,094.14 Cr Loss To Standard Chartered Bank Arising From Securities Scam As Business Loss
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the loss of Rs. 1,094.14 crore to Standard Chartered Bank arising from a securities scam as a business loss.The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the loss suffered by the assessee was a result of both the nature of the arrangements the assessee had...