GST Notification..

🔷 # *TAXATION UPDATES* #🔷
____________________________

*_PMO asks Income-Tax department to crack down on black money in banks_*

*Crack down on all black money* deposited in banks during the demonetisation period. This according to a high ranking government official is the *clear mandate given* to the income tax department by the Prime Minister's Office, and this *instruction* was *issued* within days of the RBI revealing that 99% of the demonetised Rs 500 and Rs 1000 currency bills had returned to the banking system. *Prime Minister* Narendra Modi asked the tax department to *prioritise* the *unearthing of black money* in a speech he made to the Finance Ministry's Revenue Department, CBDT and CBEC in a closed door event on Sep 1 and 2. The income tax department according to sources will now *train* its *guns on "suspicious"* and *"unusual deposits"* made post the announcement of demonetisation on Nov 8, 2016. It will *match such deposits* with previous income tax *returns* to *establish unusual activity* and also question the source of funds.

*Deposits* in the *Jan Dhan accounts* that had *peaked to Rs 64,564 cr* during demonetisation are also likely to be *under the scanner* On the other hand, when it comes to the recently rolled-out *GST* the tax department has been *advised* by the Prime Minister's Office to *not pull up* those who have *become GST compliant* despite never having filed an IT return. The government *wants to go easy* on those trying to be GST compliant, atleast for the current financial year, even if they have *not filed* their *income tax returns* the official told. However, the *tax department* will *not spare* all those *individuals* and *companies* tat have *failed to register with the GST Network* The *message is loud and clear* Do not go after those that are trying to be tax compliant even if for the first time. Instead, *focus* on those that are *refusing* to be *GST compiant* said an official.
______________________________

*_GST Council may lower tax rates if high collections continue, says official_*

The all powerful GST Council may *consider lowering tax* on items of common consumption of the high trajectory of *collections continues* over the *next few months* an official said. The *first-month collection* under the new Goods and Services Tax (GST) regime has been *encouraging* and if the *rising trend continues* until December, it would make a *case for reduction of the tax rate* he said. The *tax reduction* could be either on items of common consumption or a *cut in headline rate* which will *benefit consumers* said the official who did not wish to be identified. The *GST Council* headed by Finance Minister Arun Jaitley could *look at the aspect* once the *clear trend is available* the official said, adding that it would be evident from the November tax collection.
______________________________
_Oriental Insurance Co Ltd vs. DCIT_

S. 115JB: As *Insurance companies* are required to *prepare accounts* as per the *Insurance Act* and *not as per Schedule VI* to the Companies Act, s. 115JB does not apply. Insurance companies are *not taxed on commercial profits* but on profits as computed under the Insurance Act. Accordingly, *income earned on sale/redemption of investments* is *not chargeable to tax*
______________________________

_Pr CIT vs. Bikram Singh_

S. 68: The *use of deceptive loan entries* to *bring unaccounted money* into banking *channels plagues* the *legitimate economy* of our country. The mere fact that the *identity of the lenders* is *established & payments* are made by *cheques* does *not mean they are genuine* If the lenders do *not have the financial strength* to lend such huge sums and if there is *no explanation* as to their relationship with the assessee, *no collateral security* and *no agreement* the transactions have to be *treated as bogus unexplained credits*
______________________________

_Mahyco Seeds Ltd vs. Dy.CIT_

*_ITAT_*

*Deduction allowable* u/s 43B for *stamp-duty paid on demerger*
______________________________

_Kitara capital Private Limited vs. ITO_

*_ITAT_*

*No TDS u/s 194J* on *payment* for *subscription of e-magazine/journal* by assessee engaged in *carrying out* research for private equity investments as the same is *neither royalty nor FTS*
______________________________

_ST Microelectronics Pvt. Ltd., Vs. ACIT_

*_ITAT_*

In case of *remand of quantum addition* to AO, penalty u/s. 271(1)(c) should also be *remanded*
______________________________

OCHOA Laboratories Ltd. vs. DCIT

*_ITAT_*

*Providing free air travel, stay* and *food in hotels, local car conveyance* etc. for *prescribing medicines* of the assessee (a pharma company) is akin to *giving commission* and certainly in contravention of the public policy. *Disallowance of 50% of sales promotion expenses justified*
______________________________

_Arunkumar J. Muchhala vs. CIT_

S. 68: Argument that the assessee did *not maintain "books of account"* and so s. 68 will *not apply* is *not acceptable* It is incumbent on every assessee doing *business to maintain proper books of account* It may be in any form. If the assessee has not done so, he *cannot be allowed* to *take advantage* of his own wrong. *Burden lies on the assessee* to show from where he has received the amount and what is its nature.
______________________________

_CIT vs. Sinhgad Technical Education Society_

S. 153A/ 153C: The *seized incriminating material* have to pertain to the AY in question and have co-relation, document-wise, with the AY. This *requirement u/s 153C* is *essential* and becomes a jurisdictional fact. It is an essential condition precedent that any money, bullion or jewellery or other valuable articles or thing or books of accounts or documents seized or requisitioned should belong to a person other than the person referred to in S. 153A. Kamleshbhai Dharamshibhai Patel 31 TM.com 50 (Guj) approved. SSP Aviation 20 TM.com 214 (Del) distinguished.