TIMELINES

RECENT AMENDMENTS

ITAT JUDGEMENTS

HITT Holland Institute of Traffic Technology B.V vs. DCIT, International Taxation dt. 04.04.2018 [KOLKATA BENCH]
Profits from Offshore Supply of Equipment and Services cannot be attributed to the Installation PE of the Assessee in India Read More

Kunal R. Gupta vs. Income Tax Officer dt. 28.02.2018 [MUMBAI BENCH]
The Assessing Officer cannot suspect the validity of Family Arrangement merely because there is no dispute over the title property. Read More

DCIT vs. Vodafone West Ltd, dt. 04.04.2018 [AHMEDABAD BENCH]
Roaming Charges’ and ‘Discounts Offered to Distributors’ not liable for TDS deduction Read More

DCIT, Jaipur vs. JVVNL dt. 05.04.2018 [JAIPUR BENCH]
Counsel: Shri P.C.Parwal (CA)
Issue: Disallowance made by the AO on account of depositing employees’ contribution of PF and ESI beyond the prescribed limitation provided in the respective Acts, however, paid before the due date of filing the return of income.
Held: Issue already covered by the decision of Hon’ble Jurisdictional High Court in the case of CIT vs. State Bank of Bikaner & Jaipur, 363 ITR 70 (Raj.) as well as the decision in the assessee’s own case CIT vs. Jaipur Vidhyut Vithran Nigam Ltd., 363 ITR 307 (Raj.). Appeal of the Revenue dismissed. Read More

FROM THE BENCH

FINANCE ACT

Indian Express Newspapers & Anr. vs. Inspecting Assistant Commissioner & Ors. dt. 02.04.2018 [BOMBAY HIGH COURT]
Section 40(3) of the Finance Act, 1983 is Constitutional Read More

KVAT/ KGST

KNR Walayar Tollways Pvt. Ltd. vs. CTO, Works Contract, Palakkad dt. 14.03.2018 [KERALA HIGH COURT]
KGST Authorities directed to allow Revision of VAT Returns subject to Dept Circular Read More

CUSTOMS

M/s. Ruchi Soya Industries Ltd. vs. Union of India Ors. dt. 06.03.2018 [KARNATAKA HIGH COURT]
Finance Act, 2016 amending Section 25(4) of Customs Act, 1962 is prospective. Read More

CENTRAL EXCISE

M/s. RDB Textiles Limited vs. Commissioner of Central Excise & Service Tax, Kolkata dt. 13.02.2018 [SUPREME COURT]
Binding nature of Board Circular - it is well settled proposition that circulars that are issued by the Ministry of Finance are binding on the department of Central Excise, there being no judgment by the Supreme Court laying down the law contrary to such circulars Read More

The Directorate General of Goods and Services Tax Intelligence has now changed its gear under the GST regime. It seems that the honeymoon period is over and the Government is now ready to take strict action against the tax defaulters. The raids / surveys are conducted by the department only after receipt of relevant information of tax evasion on the basis of which relevant data is gathered from the documents and records of the defaulters as well as the data maintained by other Government Departments. The nature of evasion includes non-payment of tax, wrongful claim of tax rebates and failure to remit to the government taxes collected from customers, issue of forged or duplicate bills, etc. Generally we have seen that the Surveys are conducted simultaneously on same type of dealers. Recently DGGI conducted raids at the business premises of various cloth merchants, Mine owners. The other sectors on the radar of the department includes iron & steel, coal, automobiles, organized retail, hotel industry, etc.
Section 67 to 72 pertains to provisions of Inspection, Search, Seizure and Arrest under CGST Act, 2017. Officer not below the Rank of Joint Commissioner has been empowered to inspect / search / seize or he may even authorize any central tax officer in writing to do the same, in case a taxable person suppresses any transaction or claims excess ITC, or contravenes any other provisions of the Act, etc. The goods so seized shall be released provisionally upon execution of bond and furnishing security or on payment of tax, interest and penalty. The officers have also been given the power to inspect the goods in transit. Therefore, all the requisite documents, like invoice, E-Way bill, etc. should be carried while goods are being sent from one place to another. The Commissioner of Central Tax is empowered to or he may even authorize other officer of Central Tax to arrest a person in certain offences. Therefore, it is advised that the taxpayers must exercise caution at the time of survey being conducted at the business premises. They should give their statements very carefully and be alert as to what is being recorded in order to incriminate him. The DGGI has started taking strict action against the tax defaulters and has warned of more action in the near future if taxpayers do not file returns on time and comply with other procedures under GST.