The primary functions of ED are as under:

 

1. Investigate contravention of FEMA. It involves adjudication by appropriate authorities of ED and penalty upto 3 times the amount can be levied.

 

2. Investigate offences under PMLA, 2002 under which confiscation and attachment of property derived from proceeds of crime is done. The person is also prosecuted for the offence of money laundering. There are 156 offences under 28 statutes which are Scheduled Offences under PMLA.

 

3. Conclude proceedings under FERA where Show Cause Notices were issued which may result in imposition of Penalty. Also, pursue prosecutions undergoing under FERA in the concerned courts.

 

4. Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to contraventions of FEMA.

 

5. Aid foreign countries in matters pertaining to money laundering and restitution of Assets under PMLA and to seek cooperation in such matters.

 

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ITO, WARD-I, KISHANGARH VS. SMT. SUMAN JAIN dt. 24.07.2018 [JAIPUR BENCH]
Issue: Amount of Rs. 40.17 lacs deleted by the ld. CIT(A) without appreciating the fact that it was all sham transactions. Bogus claims of LTCG were made. Held: Under the powers vested by section 268A(1) of the I T Act, CBDT has recently issued Circular No. 3/2018 dated 11th July, 2018 (F No. 279/Misc. 142/2007-ITJ(Pt) instructing the authorities below that departmental appeal should not be filed before ITAT where the demand/tax effect does not exceed Rs. 20 lacs. Exceptions have also been stated. The present appeal is not covered by any exceptions mentioned in the said CBDT circular. Since the tax demand in dispute in this departmental appeal is below the limit set out by CBDT for the appeal, the appeal of the assessee is not maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. DISMISSED Read More

CLC & Sons (P.) Ltd. vs. Assistant Commissioner of Income-tax, Circle- 3 (1), New Delhi, dt. 19.07.2018 [ITAT SPECIAL BENCH, NEW DELHI]
Goodwill will fall under the expression 'or any other business or commercial rights of similar nature' and, hence, qualifies for depreciation u/s 32(1). Read More

Income Tax Officer, Ward-8(4), Ahmedabad vs. Upkar Retail (P.) Ltd. dt. 18.06.2018 [AHMEDABAD BENCH]
Loss incurred on account of derivatives would be deemed business loss under proviso to section 43(5) and not speculation loss, Explanation to section 73 would not be applicable. Read More

ITO, Kolkata v. M/s Datex Ohmeda (India) Pvt Ltd. dt. 20.06.2018 [AHMEDABAD BENCH]
Benefit under Section 47(ivb) can’t be availed If Demerger not in manner envisaged under Section 2(19AA) Read More

GST

Rishi Gupta vs. Flipkart Internet (P.) Ltd. dt. 18.07.2018 [NATIONAL ANTI-PROFITEERING AUTHORITY]
ISSUE: Where applicant had ordered a Godrej Interio Almirah through respondent and tax invoice dated 7-11-2017 was issued to him for an amount of Rs. 14,852 by supplier but at time of delivery another invoice dated 29-11-2017 was issued by supplier for an amount of Rs. 14,152 and applicant had alleged that he had paid an amount of Rs. 14,852 to respondent and by not refunding differential amount, respondent was resorting to profiteering which amounted to contravention of provisions of section 171
HELD: The difference in price was due to different rate of GST on both dates and supplier had charged correct rates of GST which were prevalent at time of placing of order and supply of Almirah through two invoices and, therefore, no illegality had been done by supplier while executing order placed by applicant and allegation of violation of provisions of section 171 was not established. Read More

Sanjay Kumar Bhuwalka vs. Union of India, dt. 09.07.2018 [HIGH COURT OF CALCUTTA]
Bail was to be granted to persons arrested for GST evasion using fake invoices in name of shell companies, thereby facilitating irregular availment and utilization of input tax credit by such entities to whom such fake invoices were issued. Grant of bail is a rule and rejection of bail is an exception. Thus, bearing in mind evidence having been collected by Investigating Agency as per which it was found that more than 40 such fake/shell companies were being operated by accused persons against whom investigation is under process and in consideration of compounding nature of offence, persons were asked to furnish a bond of sum of Rs. 50 lakhs each on condition to deposit of Rs. 39 crore to the Government Exchequer pursuant to grant of bail. Read More

Gati Kintetsu Express (P.) Ltd. vs. Commissioner,Commercial Tax of MP, dt. 05.07.2018 [HIGH COURT OF MADHYA PRADESH]
The petitioner transporter company was transporting goods from Pune(Wadki), Maharashtra to Noida via Indore and other different places had not uploaded Part-B of e-way bill but as distance was more than 1200-1300 kilometers it was mandatory for petitioner to file Part-B of e-way bill giving all details including vehicle number before goods were loaded in vehicle ,petitioner violated provisions of Rule 138 of M. P. Goods and Service Tax Rules, 2017 and Section 68 and, therefore, GST Authority rightly imposed penalty under section 122 and directed petitioner to pay same. Read More

INCOME TAX

Kudrat Sandhu vs. Union of India, dt. 16.07.2018 [SUPREME COURT OF INDIA]
Superannuation age of President and Members of ITAT will be 65 years and 62 years respectively. Read More

COMPANY LAW

Cyrus Investments (P.) Ltd. vs. Tata Sons Ltd. dt. 09.07.2018 [NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH]
The NCLT observed that the board and majority of its members lost confidence in Mistry after he sent out certain crucial information about the company to the Income Tax department, leaked details to the media and came out openly in public against the company's shareholders and its board. Read More

• Press Release by PIB dt 18.07.2018 to inform appointment of Grievance Redressal Officers/Nodal officers for implementation of e-way bill system. Read More
• Press Note by PIB on Exchange Rate of Foreign Currency Relating To Imported and Export Goods. Read More
• Press Note by PIB on GST Law Amendments. Recommendations made during the 28th meeting of the GST Council held in New Delhi on 21st July, 2018 Read More
• Press Note by PIB on GST Rates Reduction on several Goods Read More
• Press Note by PIB on GST Rate changes on several Services Read More
• Press Note by PIB on GST Council approval for Simplified GST Return Read More
• Press Note by CBIC on opening of migration window. Read More
• Press Note by PIB on Profit, losses, GNPAs of Public Sector Banks. Read More
• Press Note by PIB on Identification of Benami Properties by Government of India Read More
• Press Note by PIB on Measures to Recover Loan Amount from NPAs Read More
• Press Note by PIB on Indian Money in Swiss Bank Read More