Recent News : On 13th May, 2019, MCA has clarified that companies which had filed form ADT-1 as an attachment through form GNL-2 for appointment of auditors are required to file e-form ADT-1 up to June 15, 2019.||Even after the decision of Maxopp Investment 402 ITR 640 (SC) which upholds the applicability of Section 14A disallowance on "strategic investments", the assessee is entitled to contend that the investments are "legacy" or "one-time" and that there is in fact no expenditure incurred to earn the tax-free income. [CIT vs. Alpha G. Corp Development Ltd., Delhi HC (ITA 599, 648, 655/2018)]|| The fact that the company is loss-making does not mean that shares cannot be allotted at premium. The DCF method is a recognised method though it is not an exact science & can never be done with arithmetic precision. The fact that future projections of various factors made by applying hindsight view cannot be matched with actual performance does not mean that the DCF method is not correct. [India Today Online Pvt. Ltd vs. ITO (ITAT Delhi)]||MCA extended due date of filing e-form INC-22 A (Active) till June 15,2019.|| • Clarification has been issued in respect of utilization of Input Tax credit in accordance with old provision till the new order of utilization as per newly inserted rule 88A is implemented on the GST common portal|| • High court has confirmed action of department for charging interest in GST on gross amount without giving benefit of ITC available despite of council meeting wherein they have recommended interest to be paid on net tax liability||As per settled law, notice for reopening of assessment against a dead person is invalid. The fact that the AO was not informed of the death before issue of notice is irrelevant. Consequently, the s. 148 notice is set aside and order of assessment stands annulled (Alamelu Veerappan 257 TM 72 (Mad) followed). (Rupa Shyamsundar Dhumatkar vs. ACIT [HC-Bombay])||Linkage of PAN with Aadhar card is mandatory from A.Y. 2019-20 [Union of India vs. Shreya Sen (SC)].||The judgement in PCIT vs. NRA Iron & Steel 103 TM.com 48 (SC) is distinguishable on facts & does not apply to a case where the assessee has discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants by producing the PAN details, bank account statements, audited financial statements, Income tax return acknowledgments and the investors have shown the source of source & personally appeared before the AO in response to summon issued u/s 131 of the Act. [ITAT Kolkata in case of M/s Baba Bhootnath Trade & Commerce Ltd. vs. ITO]||“Assessing Officer has to mandatorily dispose off the objection filed by an assessee, in response reassessment notice u/s 148, via speaking order. [HC of Karnataka in Mphasis Ltd. vs. ACIT]”]||Payment gateway charges paid to a bank for swiping credit cards are in the nature of fees for banking services and not "commission" or "brokerage". Accordingly, no TDS is deductible u/s 194H on the aforesaid charges [PCIT vs. Make My Trip India Pvt. Ltd.]||In the absence of any exempt income, disallowance u/s 14A & Rule 8D of the Act of any amount is not permissible (Essar Teleholdings 401 ITR 445 (SC) followed, Cheminvest 378 ITR 33 (Del) approved). [PCIT vs. Oil Industry Development Board-(SC)]||Merely because the High Court has admitted the Appeal and framed substantial questions of law, it cannot be said that the entire issue is debatable one and under no circumstances, penalty could be imposed (CIT vs. Dharamshi B. Shah 366 ITR 140 (Guj) followed). [PCIT vs. Rasiklal M. Parikh (Bombay HC)]||The ‘trinity’ of prima facie case, financial stringency & balance of convenience are basic tents which are indispensable in consideration of a stay petition. The CBDT's Circulars & Instructions are in the nature of guidelines & cannot substitute or override the basic tenets. The AO is required to assist a taxpayer in every reasonable way. Even if the assessee has not specifically invoked the three parameters for grant of stay, it is incumbent upon the AO to do so & pass a speaking order. [Mrs. Kannammal vs. ITO / Jayanthi Seeman vs. PCIT- Madras High Court]||If the interest free funds available to the assessee are sufficient to meet its investments, it could be presumed that the investments are made from the interest free funds available with the assessee and not from funds [CIT Vs. Reliance Industries Ltd. [SC])||The practice of conversion of un-accounted money through cloak of Share Capital/Premium must be subjected to careful scrutiny especially in private placement of shares. Filing primary evidence is not sufficient. The onus to establish credit worthiness of the investor companies is on the assessee. The Assessee is under legal obligation to prove the receipt of share capital/premium to the satisfaction of the AO, failure of which, would justify addition of the said amount to the income of the Assessee. [PCIT vs. NRA Iron & Steel Pvt. Ltd- Supreme Court] || The AO cannot impose pre-condition to deposit the minimum amount (15/20%) of disputed demand in accordance with CBDT circular in order to stay the remaining demand. The AO has to apply his mind to the application of stay of demand and should have pass appropriate order. [Turner General Entertainment Networks India Pvt. Ltd vs. ITO (HC-Delhi)] || MCA vide circular dated 21/02/19 clarified that period of 30 days for filing initial return in MSME Form I shall be reckoned from the deployment of form on MCA portal.

What We Can Do

Our Services

Assurance

At Luthra & Luthra we focus on building close client relationships that add long-term value.

Read More

Corporate Governance

In this dynamic era growth of an organization merely depends upon its attitude towards corporate governance.

Read More

Transaction Advisory

At Luthra & Luthra we focus on building close client relationships that add long-term value.

Read More

Insolvency and Bankruptcy

Insolvency & Bankruptcy Services: Prior to the enactment of the Insolvency and Bankruptcy Code, 2016,

Read More

IFRS

IFRS are considered as “principle based” set of standards and establish broad rules rather than dictating specific treatments.

Read More

Goods and Service Tax

Overview of the Tax Advisory & Compliance Services

Read More

Business Support

Corporate Taxation

Our taxation team stays constantly abreast with changes in tax policies, administration & regulations.

Read More

Transfer Pricing and International Taxation

Industries Verticals

Airlines / Flight Handling Agencies / Airports

Automobiles

BPO / KPO

Construction / Infrastructure / Road Projects

Consulting Engineering

Consumer Goods

Energy & Environment Consulting

Financial Services / Banking / Insurance

Hospitality

Information Technology Sectors

Investment Funds

Manufacturing

Mining

NGO’s

Retail / Wholesale Trading

Schools / Management Institute / Training

Sports

Telecommunication / Media

Luthra & Luthra has a long history of accelerating our clients’ growth, growing their revenue and adding to their delight

0

NUMBER OF YEARS EXPERIENCE

0

LOCATIONS

0

QUALIFIED PROFESSIONALS

0

OTHER TEAM MEMBERS

0

PARTNERS

RECENT NEWS

On 13th May, 2019, MCA has clarified that companies which had filed form ADT-1 as an attachment through form GNL-2 for appointment of auditors are required to file e-form ADT-1 up to June 15, 2019.
--------------------------------------------------------------
Even after the decision of Maxopp Investment 402 ITR 640 (SC) which upholds the applicability of Section 14A disallowance on "strategic investments", the assessee is entitled to contend that the investments are "legacy" or "one-time" and that there is in fact no expenditure incurred to earn the tax-free income. [CIT vs. Alpha G. Corp Development Ltd., Delhi HC (ITA 599, 648, 655/2018)]
--------------------------------------------------------------
The fact that the company is loss-making does not mean that shares cannot be allotted at premium. The DCF method is a recognised method though it is not an exact science & can never be done with arithmetic precision. The fact that future projections of various factors made by applying hindsight view cannot be matched with actual performance does not mean that the DCF method is not correct. [India Today Online Pvt. Ltd vs. ITO (ITAT Delhi)]
--------------------------------------------------------------
MCA extended due date of filing e-form INC-22 A (Active) till June 15,2019.
--------------------------------------------------------------
• Clarification has been issued in respect of utilization of Input Tax credit in accordance with old provision till the new order of utilization as per newly inserted rule 88A is implemented on the GST common portal
--------------------------------------------------------------
• High court has confirmed action of department for charging interest in GST on gross amount without giving benefit of ITC available despite of council meeting wherein they have recommended interest to be paid on net tax liability
--------------------------------------------------------------
As per settled law, notice for reopening of assessment against a dead person is invalid. The fact that the AO was not informed of the death before issue of notice is irrelevant. Consequently, the s. 148 notice is set aside and order of assessment stands annulled (Alamelu Veerappan 257 TM 72 (Mad) followed). (Rupa Shyamsundar Dhumatkar vs. ACIT [HC-Bombay])
--------------------------------------------------------------
Linkage of PAN with Aadhar card is mandatory from A.Y. 2019-20 [Union of India vs. Shreya Sen (SC)].
--------------------------------------------------------------
The judgement in PCIT vs. NRA Iron & Steel 103 TM.com 48 (SC) is distinguishable on facts & does not apply to a case where the assessee has discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants by producing the PAN details, bank account statements, audited financial statements, Income tax return acknowledgments and the investors have shown the source of source & personally appeared before the AO in response to summon issued u/s 131 of the Act. [ITAT Kolkata in case of M/s Baba Bhootnath Trade & Commerce Ltd. vs. ITO]
--------------------------------------------------------------
“Assessing Officer has to mandatorily dispose off the objection filed by an assessee, in response reassessment notice u/s 148, via speaking order. [HC of Karnataka in Mphasis Ltd. vs. ACIT]”
--------------------------------------------------------------
Payment gateway charges paid to a bank for swiping credit cards are in the nature of fees for banking services and not "commission" or "brokerage". Accordingly, no TDS is deductible u/s 194H on the aforesaid charges [PCIT vs. Make My Trip India Pvt. Ltd.]
--------------------------------------------------------------
In the absence of any exempt income, disallowance u/s 14A & Rule 8D of the Act of any amount is not permissible (Essar Teleholdings 401 ITR 445 (SC) followed, Cheminvest 378 ITR 33 (Del) approved). [PCIT vs. Oil Industry Development Board-(SC)]
--------------------------------------------------------------
New return formats have been proposed to be implemented on pilot basis w.e.f 1st April, 2019 and would be mandated across the country from July, 2019.
--------------------------------------------------------------
Taxpayers having turnover upto Rs. 5cr. may opt for quarterly filing of new return under GST.
--------------------------------------------------------------
Merely because the High Court has admitted the Appeal and framed substantial questions of law, it cannot be said that the entire issue is debatable one and under no circumstances, penalty could be imposed (CIT vs. Dharamshi B. Shah 366 ITR 140 (Guj) followed). [PCIT vs. Rasiklal M. Parikh (Bombay HC)]
--------------------------------------------------------------
CBDT extends the cut-off date for intimating the Aadhaar number and linking PAN with Aadhaar from March 31, 2019 to September 30, 2019. [Press Release dated 31.03.2019]
--------------------------------------------------------------
The ‘trinity’ of prima facie case, financial stringency & balance of convenience are basic tents which are indispensable in consideration of a stay petition. The CBDT's Circulars & Instructions are in the nature of guidelines & cannot substitute or override the basic tenets. The AO is required to assist a taxpayer in every reasonable way. Even if the assessee has not specifically invoked the three parameters for grant of stay, it is incumbent upon the AO to do so & pass a speaking order. [Mrs. Kannammal vs. ITO / Jayanthi Seeman vs. PCIT- Madras High Court]
--------------------------------------------------------------
If the interest free funds available to the assessee are sufficient to meet its investments, it could be presumed that the investments are made from the interest free funds available with the assessee and not from funds [CIT Vs. Reliance Industries Ltd. [SC])
--------------------------------------------------------------
MCA issued clarification on filing of e-form RD-1 w.r.t. change in financial year and conversion of public into private company.
--------------------------------------------------------------
The practice of conversion of un-accounted money through cloak of Share Capital/Premium must be subjected to careful scrutiny especially in private placement of shares. Filing primary evidence is not sufficient. The onus to establish credit worthiness of the investor companies is on the assessee. The Assessee is under legal obligation to prove the receipt of share capital/premium to the satisfaction of the AO, failure of which, would justify addition of the said amount to the income of the Assessee. [PCIT vs. NRA Iron & Steel Pvt. Ltd- Supreme Court]
--------------------------------------------------------------
The AO cannot impose pre-condition to deposit the minimum amount (15/20%) of disputed demand in accordance with CBDT circular in order to stay the remaining demand. The AO has to apply his mind to the application of stay of demand and should have pass appropriate order. [Turner General Entertainment Networks India Pvt. Ltd vs. ITO (HC-Delhi)]
--------------------------------------------------------------

  • It is clarified vide circular that it is mandatory for the taxpayer to mention proper place of supply on the tax invoice issued in case of interstate supplies made, non-compliance of which will attract penal actions
  • In case where during the period July, 17 to March, 18, CGST and SGST paid by the taxpayers instead of IGST, payment of such CGST and SGST will be deemed equal to IGST paid.
  • GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment
  • GST shall be levied at effective GST of 1% without ITC on affordable housing properties.
--------------------------------------------------------------
    MCA vide circular dated 21/02/19 clarified that period of 30 days for filing initial return in MSME Form I shall be reckoned from the deployment of form on MCA portal.
--------------------------------------------------------------

OUR SEMINARS

OUR ACTIVITIES

Head Office
A-16/9, Vasant Vihar, New Delhi – 110057
Email Us
delhi@llca.net
Call Us
+91-11-42591800