As we are hearing a lot about crackdown by GST or Income Tax department on Tax evasion, we should be aware of the other agencies also which may take action in cases where Tax evasion is unearthed. The GST / Income Tax Departments after the Tax Evasion is discovered may transfer the case to Enforcement Directorate for further investigation if they suspect that any of the provisions of laws have been infringed, the enforcement of which is the prime objective of ED. It is a specialized financial investigation agency under the Department of Finance, Government of India which is engaged in enforcement of the following laws:

 

1. Foreign Exchange Management Act,1999 (FEMA) - A Civil Law, with officers empowered to conduct investigations into suspected contraventions of the Foreign Exchange Laws and Regulations, adjudicate, contraventions, and impose penalties on those adjudged to have contravened the law.

 

2. Prevention of Money Laundering Act, 2002 (PMLA) - A Criminal Law, with the officers empowered to conduct investigations to trace assets derived out of the proceeds of crime, to provisionally attach/ confiscate the same, and to arrest and prosecute the offenders found to be involved in Money Laundering.

 

Notices & Summons are issued by ED and personal attendance is mandated. If the person summoned or against whom Notice is issued does not comply with the Summons or Notices proceedings are initiated under the Acts mentioned above including arrest.

 

To be contd...

 

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Daga Royal Arts v. Income-tax Officer, Ward- 2(2), Jaipur dt. 15.05.2018 [JAIPUR BENCH]
No disallowance under section 40A(3) where identity of sellers from whom various plots of land had been purchased in cash and source of cash payments as withdrawals from assessee's bank account had been established and genuineness of transaction had also been established as evidenced by registered sale deeds and lastly, test of business expediency had also been met Read More

Dy IT v. M/s. Inventaa Industries Private Limited dt. 09.07.2018 [HYDERABAD BENCH]
Mushroom is an ‘Agricultural Product’, No Tax on its Production Read More

Amar Das vs. ITO, Durgapur dt. 13.07.2018 [KOLKATA BENCH]
Deeming provisions under section 50C of the Income Tax Act, 1961 cannot be invoked when the land is treated as stock in trade and the assessee is not an investor in land and is only a trader in lands. Read More

Shri Ashwani Jaipaty vs. The DCIT, Ghaziabad [DELHI BENCH]
Penalty under Section 271(1)(c) of the Income Tax Act, 1961 cannot be leviable when addition is made by invoking deeming provisions. Read More

Sardar Mal Cold Storage & Ice Factory, In re dt. 11.06.2018 [2018] [AAR - RAJASTHAN]
Cold storage services in respect of agricultural produce exempt from GST Read More

Rhizo Organic, In re dt. 16.06.2018 [2018] [AAR- RAJASTHAN]
Bio-fertilizers, other than those put up in unit container & bearing brand name, are exempt from GST Read More

Habufa Meubelen B.V., In re dt. 16.06.2018 [2018] [AAR - RAJASTHAN]
No GST on salary remitted by HO to liaison office in India for normal functioning of liaison office Read More

VNR Seeds (P.) Ltd., In re dt. 06.06.2018 [2018] [AAR - CHHATTISGARH]
No ITC on packing materials used for exempted supply of seeds Read More

GST

Naga Distributors vs. Union of India & Ors. dt. 28.06.2018 [HIGH COURT OF KERALA]
Kerala HC directs authorities to allow ITC during Migration to GST Read More

FEMA

NDTV Vs. FEMA 2018-TIOL-1201-HC-MUM-FEMA dt. 26.06.2018
Enforcement Directorate cannot attempt to sway exercise of RBI's discretionary power to compound offences. Read More

• CBIC Press Release dt 12.07.2018 to inform GSTPs for exam Read More
• CBIC Press Release dt 12.07.2018 to invite bids for TP Read More
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• CBIC Press Release dt 16.07.2018 on - "CBIC to Observe Third Refund Fortnight to Clear Pending Refunds" Read More