List of Tax Flash News

01 January 2022 to 20 December 2022

Date

Title

Citations
12/20/2022 Indirect Tax Weekly Updates -
12/19/2022 Recommendations of the 48th GST Council Meeting  Press Release dated 17 December 2022, Ministry of Finance
12/15/2022 The taxpayer is not eligible for charitable institution related approval since it is involved in commercial activities Fernandez Foundation v. CIT (ITA No. 1884 & 1885/Hyd/2019)-Taxsutra.com
12/14/2022 Indirect Tax Weekly Updates -
12/14/2022 Indirect Tax Weekly Updates -
12/07/2022 The taxpayer is entitled to set-off of loss and deduction under Section 80G against the foreign dividend income  Specified foreign company means a foreign company in which the Indian company holds 26 per cent or more of equity share capital
12/07/2022 Revaluation of assets credited to a partner’s account is taxable as capital gains under Section 45(4) – Supreme Court CIT v. Mansukh Dyeing and Printing Mills (Civil Appeal No. 8258 and 8259 of 2022) - Taxsutra.com (This decision deals with the period prior to the amendment to Section 45(4) by the Finance Act, 2021) 
12/01/2022 India Tax Konnect - November 2022 -
12/01/2022 The Singaporean subsidiary of an Indian company has a fixed PE as well as an agency PE in India Redington Distribution Pte. Ltd v. DCIT (IT(TP) A No.14/Chny/2020)(Chennai)-Taxsutra.com
11/23/2022 Capital gain of a Mauritian company on the sale of shares of an Indian company is not taxable under the pre-amended India-Mauritius tax treaty UOI v.Azadi Bachao Andolan [2002] 125 Taxman 826 (SC)
11/16/2022 Indirect Tax Weekly Updates -
11/14/2022 Capitation fees received by an educational institution are not eligible for exemption available to a charitable trust Exemption for income from property held for charitable or religious purposes
11/09/2022 Supreme Court ruling on higher pension benefit under the Employees’ Pension Scheme, 1995 Notification G.S.R 609(E) dated 22 August 2014
11/09/2022 Taxes are deductible for Leave Travel Concession claims involving foreign travel – Supreme Court  Section 10(5) of the Income-tax Act, 1961 read with Rule 2B of the Income-tax Rules, 1962
11/04/2022 The Supreme Court, while dealing with exemption relating to charitable institutions, interprets 'General Public Utility' and discards the' Predominant Object' test The Supreme Court dealt with a batch of appeals with a lead case, namely 'ACIT (Exemptions) v.Ahmedabad Urban Development Authority', Civil Appeal no. 21762 of 2017 - Taxsutra.com
11/04/2022 India Tax Konnect - October 2022 -
11/01/2022 An educational institution is not eligible for tax exemption under Section 10(23C) of the Income-tax Act when it is not engaged ‘solely’ in educational activities – Supreme Court  American Hotel & Lodging Association, Educational Institute [2008] 301 ITR 86 (SC)
10/20/2022 Plea of promissory estoppel would not be available against the exercise of the legislative functions of the State Hero Motocorp Ltd Vs Union Of India & Ors. [2022-VIL-82-SC]
10/18/2022 India Tax Konnect - September 2022 -
10/12/2022 No Equalisation Levy on online advertisement charges since the advertiser, targeted audience and advertising platform are outside India and the Indian remitter is merely acting as a conduit Equalisation Levy @ 6 per cent
09/17/2022 India Tax Konnect - August 2022 -
09/17/2022 CBDT releases additional guidelines to remove difficulties for deduction of tax under Section 194R  CBDT Circular 12 of 2022, dated 16 June 2022
09/12/2022 CBIC issues guidelines on the filing of Form GST TRAN-1 and TRAN-2 Union of India & Anr. v. Filco Trade Centre Pvt. Ltd. & Anr.[2022-VIL-38-SC and 2022-VIL-63-SC]
09/08/2022 Interest on income-tax refund received by a Dutch company is not taxable in India, beneficial treatment under the India-Italy tax treaty applied through MFN clause under the India-Netherlands tax treaty   Koninklijke Philips N.V.v DCIT (ITA Nos.437 to 441/Kol/2021)-Taxsutra.com
08/24/2022 New Overseas Investment framework under FEMA 1999 notified by Central Government and Reserve Bank of India   Notification No. G.S.R 646(E) dated 22 August 2022
08/22/2022 Income-tax Rules amended to allow claim of foreign tax credit even with delayed filing of Form 67   Rule 128 of the Rules
08/09/2022 Prescribed documentation and Forms for claiming Covid-19 related tax exemptions Notification No. 90/2022/F. No. 370142/31/2022-TPL (Part-2);Notification No. 91/2022/F. No. 370142/31/2022-TPL (Part-2);Notification No. 92/2022/F. No. 370142/31/2022-TPL (Part-2);Notification No. 95/2021/F. No. 370142/36/2021-TPL dated 05 August 2022
08/05/2022 India Tax Konnect - July 2022 -
08/05/2022 CBIC issues clarification on services of agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act CBIC Circular No. 178/10/2022-GST dated 3 August 2022
08/05/2022 CBIC issues clarification on GST rate and exemptions on certain supplies CBIC Circular No. 177/09/2022-GST dated 3 August 2022 and CBIC Circular No. 179/11/2022-GST dated 3 August 2022
07/25/2022 Amendment to Section 14A relating to disallowance of expenditure when there is no exempt income is not retrospective in nature Notwithstanding anything to the contrary contained in this Act
07/22/2022 High Court sets aside circular clarifying that GST is applicable on Annuity payment received for construction of road pursuant to 22nd GST Council decision Ministry of Finance Circular No. 150/06/2021-GST, dated 17 June 2021
07/19/2022 RBI announces measures to enhance source of forex funding for Indian financial markets  RBI Press Release on Liberalisation of Forex Flows (Revised) dated 6 July 2022
07/14/2022 Indian insurance broker remitting ‘premium’ to overseas broker is not liable to deduct tax at source and it would not be considered as dependent agent PE ITO (IT)-2(2)(2) v. International Reinsurance and Insurance Consultancy & Broking Services Pvt. Ltd (ITA No. 2823/Mum/2019)
07/14/2022 Timely filing of a declaration to opt out of a benefit of Section 10B is mandatory PCIT v. Wipro Ltd (Civil Appeal No. 1449 of 2022)
07/12/2022 Section 56(2)(viib) is applicable to conversion of CCDs into equity  shares Milk Mantra Dairy Pvt. Ltd. v. DCIT (ITA No.413/Kol/2020)-Taxsutra.com
07/08/2022 Circulars to give effect to 47th GST Council decisions CBIC Circular No. 170/02/2022-GST dated 6 July 2022
07/06/2022 Notifications to give effect to 47th GST Council decisions  CBIC Notification No. 14/2022 - Central Tax dated 5 July 2022
07/06/2022 Suppliers who supply goods at a concessional rate to companies involved in specified projects are entitled to refund under the inverted tax structure   Baker Hughes Asia Pacific Limited v. Union of India & Ors [2022-VIL-449-RAJ]
07/05/2022 India Tax Konnect - June 2022 -
07/05/2022 CBDT issues notifications on the definition of virtual digital asset, prescribes list of excluded assets and defines non-fungible tokens  Section 2(47A)(a)
07/01/2022 Recommendations of the 47th GST Council Ministry of Finance, Press Release dated 29 June 2022
06/29/2022 Applicability of TDS provisions on reimbursement of salaries of seconded employees Flipkart Internet Private Limited v. DCIT (Writ Petition No. 3619/2021, dated 21 June 2022) 
06/24/2022 Interest income is not attributable to a PE in India under the India-Japan tax treaty DCIT v. Marubeni Corporation, Japan (ITA No.: 10/Mum/2022) (Mum)
06/23/2022 CBDT releases guidelines to remove difficulties for deduction of tax at source on transfer of virtual digital asset  CBDT Circular 12 of 2022, dated 16 June 2022
06/17/2022 Clarification by CBIC on procedure relating to sanction, post-audit and review of refund claims CBIC Instruction No. 03/2022-GST, dated 14 June 2022
06/17/2022 CBDT releases guidelines to remove difficulties for deduction of tax under Section 194R  CBDT Circular No. 13 of 2022, dated 22 June 2022
06/16/2022 CBDT releases updated guidance on Mutual Agreement Procedure -
06/13/2022 Offshore distribution commission income is not ‘reasonably attributable’ to India DCIT v. Credit Suisse (Singapore) Ltd. (ITA no.6098/Mum./2019)
06/09/2022 India Tax Konnect - May 2022 -
06/02/2022 Additional ground can be raised before the Tribunal to apply a lower rate of DDT under a tax treaty  GE BE Private Limited v. DCIT (IT (TP) A No. 2615/Bang/2019)
05/28/2022 Clarification by CBIC on voluntary deposit of tax during search, inspection or investigation CBIC Instruction No. 01/2022-23 [GST – Investigation] dated 25 May 2022
05/27/2022 Amendment to provisions treating assessee-in-default for non-deduction of tax on payment to a non-resident is retrospective in nature Shree Balaji Concepts v. ITO (ITA No. 73/PAN/2018)
05/26/2022 The Delhi High Court deals with the nuances of the new reassessment regime Divya Capital One Private Limited v. ACIT (W.P.(C) 7406/2022)
05/25/2022 Assessee liable to pay service tax on secondment of employee from overseas group companies C.C.,C.E. & S.T. v. Northern Operating Systems Pvt Ltd. [2022-VIL-31-SC-ST]
05/23/2022 Indian importers not liable to pay IGST on ocean freight in CIF contracts – Supreme Court of India Union of India & Anr. v. Mohit Minerals Pvt. Ltd Through Director [Civil Appeal No. 1390 of 2022]
05/20/2022 The Mumbai Tribunal’s decision on the applicability of the concept of ‘beneficial ownership’ to capital gains article under the India-Mauritius tax treaty Blackstone FP Capital Partners Mauritius V Ltd v. DCIT (ITA Nos. 981 and 1725/Mum/2021) 
05/18/2022 CBDT issues circular amending functionality of ‘Compliance check for Section 206AB & 206CCA’ CBDT Circular No. 11/2021, dated 17 May 2022
05/13/2022 Support services and reimbursement of training expenses are not taxable as FTS under the India-USA tax treaty Russell Reynolds Associates Inc. v. DCIT (ITA No. 1165/Del/2019)
05/13/2022 CBDT instruction for the implementation of the Supreme Court’s decision on reassessment proceedings CBDT Instruction No. 01/2022, dated 11 May 2022
05/10/2022 Deduction of 1/3rd of total consideration towards the value of land is ultra-vires – Gujarat High Court
 Munjaal Manishbhai Bhatt v. UOI [2022-VIL-319-GUJ]
05/10/2022 Indian associate enterprise of a Singapore company does not constitute a PE in India AB Sciex Pte Ltd v. ACIT (ITA No. 514/Del/2021)
05/05/2022 Notice issued after 1 April 2021 under the old reassessment regime shall be deemed to have been issued under the new reassessment regime - Supreme Court UOI & Others v. Ashish Agarwal (Civil Appeal No. 3005/2022) 
05/04/2022 India Tax Konnect - April 2022 -
05/03/2022 CBDT notifies manner for filing updated return of income CBDT Notification No. 48/2022, dated 29 April 2022
04/29/2022 Reimbursement of salaries paid to seconded employees is not taxable as FTS Toyota Boshoku Automotive India Pvt Ltd v. DCIT [2022] 138 taxmann.com 166 (Bang)
04/22/2022 Prescribed conditions for mandatory filing of return of income  CBDT Notification No. 37/2022/F. No. 370142/01/2020-TPL(Part 1)
04/20/2022 The reassessment notice e-mailed on the last date is valid since it has gone out of the tax authority's control Malavika Enterprises v. CBDT [2022] 137 taxmann.com 398 (Mad)
04/14/2022 Sub-contracting charges paid to Chinese subsidiary are taxable as FTS Infosys Limited v. DCIT [IT(IT)A No.4/Bang/2014]
04/13/2022 Supreme Court’s decision on the validity of assessment order issued in the name of amalgamating company post amalgamation  PCIT v. Mahagun Realtors (P) Ltd [2022] 137 taxmann.com 91 (SC)
04/13/2022 Australia agrees to amend its domestic tax law to stop taxation of offshore income of Indian firms providing technical services to Australian clients  Press Release dated 2 April 2022; Letter of Australian Govt. dated 2 April 2022; Letter of Indian Govt. dated 2 April 2022 – Taxsutra.com
04/12/2022 Computation of taxability of interest on excess contribution made by employee to their Provident Fund account EPFO Circular No. WSU/6(1)2019/ Income Tax/Part-I (E-33306), dated 5 April 2022
04/08/2022 CBDT notifies e-Dispute Resolution Scheme, 2022 CBDT Notification No. 26 & 27/2022, dated 5 April 2022
04/08/2022 Tax relief on income arising from foreign retirement funds CBDT Rule 21AAA under the Income-tax Rules, 1962 (Rules)
04/07/2022 Subscription fees for CRM services are not taxable as royalty under the India-Singapore tax treaty Salesforce.com Singapore Pte Ltd v. DDIT [2022] 137 taxmann.com 3 (Del)
04/06/2022 Payments made to Facebook towards banner advertisement are not taxable in India Play Games 24X7 Private Limited v. DCIT (ITA No. 1533/MUM/2019)
04/05/2022 Indian distributor of a Mauritian sports channel company does not constitute a dependent agent PE in India  Taj TV Limited v. DCIT [2022] 194 ITD 547 (Mum)
04/04/2022 Additional ground with respect to DDT liability cannot be raised before the Income-tax Appellate Tribunal JCIT v. Texas Instruments India Pvt Ltd (IT (TP) A No. 275/Bang/2019) 
04/04/2022 The Bangalore ITAT decision on the applicability of TDS on year-end provisions Biocon Ltd v. DCIT (ITA No.1248/Bang/2014)
03/31/2022 India Tax Konnect - March 2022 -
03/31/2022 Maharashtra Legislature passes bill for settlement of pre-GST arrears -
03/29/2022 Foreign tax credit is available in India on taxes deducted on commission income in Singapore    Dynamic Drilling & Services Pvt. Ltd. v. ACIT (ITA. Nos. 8154 AND 8155/Del/2019) 
03/28/2022 Standard Operating Procedure for scrutiny of GST returns for FY 2017-18 and 2018-19 issued by CBIC CBIC Instruction No. 02/2022-GST dated 22 March 2022, Ministry of Finance 
03/23/2022 Reassessment notice issued by an e-mail after the expiration of the limitation period is time-barred   Daujee Abhushan Bhandar Pvt. Ltd v. UOI (Writ Tax No. 78 of 2022)
03/21/2022 Testing and certification related services are not taxable as FTS under the India-US tax treaty     ITO v. Star Rays [ITA No.725/SRT/2018 (AY 2015-16)]
03/21/2022 Ahead of the IPO, Government clears 20 per cent FDI in LIC under the Automatic Route and makes other changes to bring clarity to the FDI policy   GOI Press Note No. 1 (2022 Series) DPIIT File No 5(3)/2021-FDI Policy dated 14 March 2022
03/16/2022 Japanese company’s Indian Joint Venture company does not constitute a fixed place or a supervisory PE in India  FCC Co. Ltd. v. ACIT [2022] 136 taxmann.com 137 (Del)
03/15/2022 A foreign holding company is not required to deduct tax at source since the shares were purchased by its wholly owned subsidiary company  Ingram Micro Inc. v. ITO (ITA.No.160/2022)
03/08/2022 Loss on account of permanent diminution in the value of an investment in US subsidiary company is allowed as business expenditure   PCIT v. Vaibhav Global Ltd. (ITA No. 53/2021)
02/28/2022 India Tax Konnect - February 2022 -
02/24/2022 Business support services are not taxable as FTS in view of the MFN clause under the India-Belgium tax Magotteaux International SA v. DCIT (ITA No. 1358/DEL/2015)
02/23/2022 Freebies given by pharmaceutical companies to medical practitioners are not allowed as business expenditure – Supreme Court Apex Laboratories Pvt. Ltd. v. DCIT [2022] 135 taxmann.com 286 (SC)
02/18/2022 Revision petition before CIT is maintainable for claims which are not made in the original or revised tax returns and where assessment is completed Hapag Lloyd India Private Limited v. PCIT (writ Petition No. 2322 of 2021)
02/16/2022 Consideration paid exceeding net assets of the amalgamating company is goodwill, eligible for depreciation Altimetrik India Pvt. Ltd. v. DCIT [IT(TP)A No. 2511/Bang/2019]
02/16/2022 Remedial hearing would have to be granted to the person affected by blocking of electronic credit ledger – Bombay High Court Dee Vee Projects Ltd vs The Government of Maharashtra and 3 Ors [2022-VIL-113-BOM]                                              
02/16/2022 No separate notification is required to avail the benefit of 'Most Favoured Nation’ clause GRI Renewable Industries S.L v. ACIT (ITA No. 202/Pun/2021)
02/10/2022 Since interest on income-tax refund is not effectively connected with a PE, it is taxable at a concessional rate as per the interest article under the India-USA tax treaty Transocean Offshore International Ventures Ltd. v. DCIT (ITA No. 5895/DEL/2017)
02/09/2022 TDS on cloud service related payment is restricted to 8 per cent, since 2 per cent EL was paid Google Asia Pacific Pte Ltd v. CIT (W.P.(C) 215/2022)
02/07/2022 CBDT issues clarification on applicability of MFN clause in certain tax treaties CBDT Circular No.3/2022, dated 3 February 2022
02/07/2022 Public consultation document on Pillar One: Draft model rules for nexus and revenue sourcing OECD Public Consultation dated 4 February 2022
01/31/2022 SEBI (ICDR) (Amendment) Regulations, 2022 -
01/20/2022 Computation of capital gains on amounts received under a unit-linked insurance policy CBDT Notification No. 8/2022/F. No. 370142/61/2021-TPL, dated 18 January 2022
01/19/2022 Allocation of salary cost to Branch Offices liable to GST – Maharashtra AAAR Cummins India Limited [2022-VIL-03-AAAR]
01/13/2022 Goodwill recognised due to revaluation of debtors and inventory post slump sale is not eligible for depreciation Middleby Celfrost Innovations Pvt. Ltd. v. DCIT (I.T.A. Nos.953 to 955/Bang/2019)
01/12/2022 The claim of Foreign Tax Credit allowed even in case of delay in filing of Form No. 67 as such filing is not mandatory but a directory requirement Brinda RamaKrishna v. The Income Tax Officer [2022] 135 taxmann.com 358 (Bang)
01/12/2022 CBDT further extends timelines for filing of Income-tax returns and audit reports for the Assessment Year 2021-22 CBDT Circular No. 01/2022, dated 11 January 2022
01/10/2022 CBIC instruction regarding assessment of ‘automobile parts’ under Customs Tariff CBIC Instruction No. 01/2022-Customs dated 5 January 2022, CBIC, Ministry of Finance
01/07/2022 Marketing services rendered by a foreign company for Indian company’s business outside India are not taxable as FTS Orkla Asia Pacific Pte. Ltd. v. DCIT (ITA No.193/Bang/2019)
01/06/2022 Revisionary proceedings initiated by the CIT against the final assessment order passed by the tax officer pursuant to DRP’s direction is invalid Barclays Bank PLC v. CIT (ITA No. 827/Mum/2021)
01/05/2022 Vouchers traded by the Appellant are goods and not actionable claims – Karnataka AAAR
 Premier Sales Promotion Pvt Ltd [2021-VIL-74-AAAR]
01/05/2022 CBDT notifies new Faceless Appeal Scheme 2021 CBDT Notification No. 139/2021, dated 28 December 2021