Tax insights

Supreme Court rules that gifting of freebies by Pharmaceutical Companies to medical practitioners is not allowable expenditure under the Income Tax Act, 1961

1 July 2022
Distribution of incentives (i.e. freebies) by pharmaceutical and allied health sectors industries to doctors, medical practitioners etc. and its allowability of claim as business expenditure in the light of Explanation 1 to section 37(1) of the Income-tax Act, 1961 (‘the Act’) has been one of most litigated issue.

Supreme Court rules that gifting of freebies by Pharmaceutical Companies to medical practitioners is not allowable expenditure under the Income Tax Act, 1961

1 July 2022
Distribution of incentives (i.e. freebies) by pharmaceutical and allied health sectors industries to doctors, medical practitioners etc. and its allowability of claim as business expenditure in the light of Explanation 1 to section 37(1) of the Income-tax Act, 1961 (‘the Act’) has been one of most litigated issue.

CBDT Extends Safe Harbour Rules to Assessment Year 2022-23

1 July 2022
On 17 June 2022, Central Board of Direct Taxes (‘CBDT’) issued Notification No. 66 /2022/F. No. 370142/26/2022-TPL. Vide this Notification, the CBDT has extended the Safe Harbour Rules (‘SHR’) to Assessment Year (‘AY’) 2022-23 relevant to the previous year 2021-22.   

Guidelines for removal of difficulties under section 194R of the Income Tax Act, 1961

1 July 2022
Finance Act 2022 inserted a new section 194R of the Income Tax Act, 1961 (‘the Act’), which mandates a person, who is responsible for providing any benefit or perquisite (whether convertible into money or not) to an Indian resident, to deduct tax at source at the rate of 10% of the value of such benefit or perquisite.

Extension of Due-date for filing of return in Form GSTR 3B for the month of April 2022 till 24 May 2022

1 July 2022
In view of persistent technical glitches faced by GSTN leading to non-updation of GSTR 2B report with supplier filings pertaining to April 2022 for several taxpayers, Central Board of Indirect Taxes and Customs (CBIC) vide Central Tax Notification No. 05/2022 dated 17 May 2022 has extended the due-date for filing of return in Form GSTR 3B till 24 May 2022

Jaipur Tribunal Rules that Mere reflection of higher income in Form 26AS not a reason to make additions to the returned income offered by the assesse

1 July 2022
Recently, the Hon’ble Income-tax Appellate Tribunal (‘ITAT’) bench - Jaipur in the case of M/s Shri Jeen Mata Buildcon Pvt. Ltd vs. the ITO has passed a verdict on 8 March 2022 in favour of the assessee and deleted the addition made based on mere reflection of higher income in Form 26AS of the assessee.  

Jaipur Tribunal Rules that Mere reflection of higher income in Form 26AS not a reason to make additions to the returned income offered by the assesse

1 July 2022
Recently, the Hon’ble Income-tax Appellate Tribunal (‘ITAT’) bench - Jaipur in the case of M/s Shri Jeen Mata Buildcon Pvt. Ltd vs. the ITO has passed a verdict on 8 March 2022 in favour of the assessee and deleted the addition made based on mere reflection of higher income in Form 26AS of the assessee.  

Ruling pronounced by National Company Law Tribunal in case of Panasonic Group –GAAR not to interfere with the rights of the taxpayers to arrange its affairs tax efficiently

1 July 2022
Recently, Chandigarh Bench of National Company Law Tribunal (‘NCLT’) approved the scheme of arrangement (‘Scheme’) between Panasonic Group Companies under section 230-232 of the Companies Act, 2013 which provided for the amalgamation of the entities based on commercial rationale and factors like reduction in operating and marketing cost, economies in procurement, i

Brief Note on Section 194R: TDS on benefit of perquisite in respect of business or profession

1 July 2022
The Finance Act 2022 has introduced section 194R of the Income Tax Act, 1961 (‘the Act’), which provides for deduction of tax (‘TDS') by any person who is providing benefit or perquisite (whether convertible into money or not) to an Indian resident arising from carrying out a business or profession carried out by such resident person.

Supreme Court validates the reassessment notices issued under unamended section 148 of the Income Tax Act between 01 April 2021 to 30 June 2021

1 July 2022
Finance Act 2021 revamped the entire reassessment proceedings with effect from 01 April 2021, wherein the pre-existing regime was substituted with the corresponding new regime along with introduction of new section 148A of the Income Tax Act, 1961 (‘the Act’) and changes in time limitation for issuance of notices.  

Mohit Minerals Private Limited Supreme Court Ruling - No levy of IGST on ocean freight in case of import of goods on CIF basis

1 July 2022
In view of careful interpretation and analysis of the fundamentals of Constitution, the Supreme Court verdict in the case of M/s. Mohit Minerals Pvt Ltd has clearly etched its spot as one of the most significant rulings of the recent times.

Key Amendments passed in the Finance Act 2022 vis-s-vis Original Finance Bill 2022

1 July 2022
The Finance Bill 2022 was introduced in the Lok Sabha on 1st February 2022. On 24th March 2022, the Finance Minister, Nirmala Sitharaman, proposed about 39 changes to be made in the Bill and the same was passed by the Lok Sabha on March 25, 2022 incorporating such proposed amendments.

Suo motu Disallowance u/s 40(a)(i) or 40(a)(ia) does not exonerate the assesse from the liability u/s 201 of the IT Act

30 June 2022
As per the provisions of section 40(a)(i)(a) of the Income Tax Act, 1961 (‘IT Act’), if an assessee who pays a sum of money by way of interest, royalty, fees for technical services or any other sum to a person outside India or within India, fails to deduct and/or deposit TDS as per the provisions of Chapter XVII-B with the government, the amount so paid will be dis

Applicability of E-invoicing for a person with a turnover of Rs.20 crores or above w.e.f. 1 April 2022

1 March 2022
E-invoicing provisions under GST had been made effective from 1 October 2020 for persons whose aggregate annual turnover exceeds Rs.500 crores. The exemption limit was reduced from Rs.500 crores to Rs.100 crores with effect from 1 January 2021 and further brought down to Rs.50 crores with effect from 1 April 2021.

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