The battle for custody of tax refunds; No exemption u/s. 54B on investment made in the name of the spouse ....and lots more!!
Issue No. 206 / May 21th, 2020
Dear Professionals,
“Taxsutra Database”, a true Income-tax Research is an archive of over 107240+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC & ITAT’. A completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience; Search results supported by active filters around Court Level, Location, Case Numbers and Citation; A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
We are glad to present to you the 206th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!
Expert Column
The inordinate delays in the issue of refunds, particularly in the cash-crunch times of COVID-19 crisis, have prompted certain taxpayers to take the custody battle to Courts, latest ruling on the issue being in the case of Vodafone Idea Ltd by the Apex Court.
BS Nagaraj and GL Rinitha, Chartered Accountants, in their article explore on the issue in light of the aforesaid ruling and provisions relating to processing of refunds and the recent legislative changes. The authors discuss the changes in law with amendments in Sec. 143(1D) which stated that processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2) and introduction of Sec. 241A which laid down provisions on withholding of refunds in certain cases. The authors further discuss the implications of the SC ruling in Vodafone and ponder “If the observations of the Hon’ble SC on the interplay between sections 143(1), 143(1D) and 143(2) as they stood prior to AY 2017-18, are interpreted on a standalone basis to mean that once notice under 143(2) is issued, there is no requirement for 143(1) processing, it may lead to a conclusion that, there is no requirement for any discretion to be exercised by the AO”. The authors sign off stating that “While the law has since changed, the battle for custody of tax refunds is likely to continue before the Courts and the facts of each case would determine which party wins the battle!”
1) Mere inclusion of son name as joint owner does not disentitle assessee for exemption u/s 54 - ITAT sets aside, lower authorities order restricting capital gain exemption u/s 54 to the extent of 50% of the claim made on the reasoning that the new residential house has been purchased in the name of assessee and his son; ITAT notes that...... Click here to read and download ITAT order
2) Chapter VI-A benefits on expenses disallowed as they are forming part of CSR cannot be denied as that would lead to double disallowance - ITAT holds in favour of assessee, if the assessee is denied benefit of deduction u/s.80G, merely because such payment forms part of CSR, would lead to double disallowance, which is not the intention of Legislature; Rejects revenue submission that, expenditure incurred by an assessee on activities relating to CSR referred to in section 135 of Companies Act, 2013 shall not be deemed to be an expenditure incurred by assessee for purpose of business or profession and therefore, no deduction would be allowed for such expenditure; Explains that …. Click here to read and download ITAT order
3) HC: No exemption u/s. 54B on investment made in the name of the spouse - HC dismisses assessee's appeal, rejects Sec 54B exemption for investment in the name of spouse; Notes that assessee on sale of agricultural land, purchased a land worth his share, in the name of his spouse ......... Click here to read and download HC judgment
4) No prosecution initiation u/s 276C absent willful intent to evade payment of tax – HC quashes prosecution initiation u/s 276C, notes that assessee-petitioner voluntarily disclosed the undisclosed income during an inspection conducted u/s 132 and paid entire tax as demanded; HC holds that as per the.......... Click here to read and download HC judgment
5) Penalty cannot be levied u/s 271D on mere assumption of acceptance of loan / deposit – HC dismisses Revenue’s appeal, upholds ITAT order deleting the penalty levied u/s. 271D; Notes that according to the AO, the Assessee had accepted a loan or deposit in cash from one, Jivraj Desai, and therefore, a penalty u/s 271D was levied for contravention of section 269SS ......... Click here to read and download HC judgment
Access to a strong repository of Tax Rulings is a key requirement of tax professionals like yourselves. Taxsutra Database is a brand new addition to the Taxsutra bouquet of services. Largely known for its world class real time news and updates service, Taxsutra brings to you a comprehensive, easy to use Database service which offers the following features:
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Taxation of E-commerce Players in India; Performance bonus does not form part of 'salary'; Guideline value is not the market value.....and lots more!!
Issue No. 205 / May 13th, 2020
Dear Professionals,
“Taxsutra Database”, a true Income-tax Research is an archive of over 107070+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC & ITAT’. A completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience; Search results supported by active filters around Court Level, Location, Case Numbers and Citation; A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
We are glad to present to you the 205th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!
Key Takeaways from Handpicked Rulings
1) ITAT: Guideline value is not the market value, it`s only guidance to determine the market value – ITAT holds that guideline value and comparable instances in the locality need to be taken into consideration while determining the fair market value (FMV); Directs lower authorities to find out the guideline value from the concerned registration authorities ............ Click here to read and download ITAT order
Editorial Note: Circle rates are only to act as a guide for the assessment of the duty chargeable on the value of any immovable property ........ Click here to read and download HC judgment
2) HC: Initiation of the period of limitation provided u/s 254(2) starts from the date of actual receipt of the order passed by Tribunal (ITAT) which is sought to be reviewed – HC allows Assessee`s writ, holds that Rule 24 of the ITAT Rules mandates ITAT to decide the appeal on merits and sans examination by ITAT on merits, there is no cogent reason for the ITAT not to entertain the application for recall; Notes that as the order passed by ITAT is not touching upon the merits of the case, it deprives the Court to evaluate, if any, substantial question of law u/s 260A of the Act, thereby impinging upon assessee’s right to get the issue decided by the final fact-finding authority ................ Click here to read and download HC judgment
3) Performance bonus does not form part of 'salary' for the purposes of computing HRA exemption u/s 10(13A); No HRA disallowances on rent paid over 10% of the basic salary – ITAT allows assessee`s (salaried individual) appeal, notes that lower authorities denied benefit of 10(13A) on the ground that any commission or bonus linked to the turnover or the performance has to be treated as salary and hence............. Click here to read and download ITAT Order
4) HC: Instruction of the CBDT cannot be forfeited, if it is against the statutory provision - HC holds that no retrospective benefit of Section 11 & 12, if an application for registration u/s 12A provided from the following financial year in which the application for registration is made and registration was subsequently granted; Sets-aside the order passed by the ITAT, rules in favour of Revenue; Notes that the benefit of registration could not have been extended for the impugned AY 2011-12,............. Click here to read and download HC judgment
5) No reason to deviate and disallow 100% of expenses without there being any change in facts for the impugned assessment year- ITAT deletes suo-moto disallowances of expenditure debited to the profit and loss account made by the Akshaye Khanna (Actor and film production) in his statement of total income; Notes that in the preceding financial year, the AO has made similar disallowances and the ITAT have ................. Click here to read and download ITAT Order
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Expert Column
Recent developments in India concerning International Taxation, could be seen as an albatross around the neck for the non-resident e-commerce players. With an increase in compliance burden and potential increase of costs, many of the e-commerce players consider unilateral measures taken by India as a deterrent to an effective business model. In this regard,
Bharathi Krishnaprasad (Principal Associate, Lakshmikumaran & Sridharan) and Harshit Khurana (Senior Associate) in their article today discuss various provisions of Indian Income Tax as applicable to e-commerce players in India.
Briefly elucidating the provisions of equalisation levy as enhanced by Finance Act 2020, the authors state that considering that the levy has been introduced, not under the Income Tax law as tax on income, rather as an independent levy under a separate legislation, the non-resident e-commerce operators might be denied tax credits for the same. The authors also discuss the impact of the proposed profit attribution rules and Significant Economic Presence (SEP) under the domestic laws and opine that “these rules once implemented, will have significant impact on the traditional businesses as well.” Further with respect to the recently introduced Sec.194-O, the authors highlight that the provision is silent on the residential status and thus one may take a position that non-resident e-commerce operator should not be obligated to deduct tax since responsibility of TDS deduction is of ‘any person’ making the payment, which would only mean residents who have tax presence in India.
Access to a strong repository of Tax Rulings is a key requirement of tax professionals like yourselves. Taxsutra Database is a brand new addition to the Taxsutra bouquet of services. Largely known for its world class real time news and updates service, Taxsutra brings to you a comprehensive, easy to use Database service which offers the following features:
Over 107070+Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent unreported handpicked ruling
Completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience
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A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
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Interest earned on Bank deposits not eligible for deduction u/s 80IB(10); Newly formed Trusts entitled for Sec. 12AA registration;...and lots more!!
Issue No. 204 / May 6th, 2020
Dear Professionals,
“Taxsutra Database”, a true Income-tax Research is an archive of over 106870+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC & ITAT’. A completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience; Search results supported by active filters around Court Level, Location, Case Numbers and Citation; A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
We are glad to present to you the 204th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with recent rulings.
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Key Takeaways from Handpicked rulings
1) HC : Appellate Authority is to determine the appropriate amount of tax, if any, which is liable to be paid – HC sets aside the lower authorities’ order, restores Assessee’s appeal before CIT(A) for fresh adjudication on all grounds; Notes that, appeal before HC was admitted against ITAT order which held that capital gain would be applicable in AY A.Y 2009 -10 when the original transaction took place and not the year of rectification deed executed altering the original sale deed. However, Chartered Accountant who appeared before the CIT(A) ............... Click here to read and download HC judgment
2) Interest earned on Bank deposits not eligible for deduction u/s 80IB(10) – ITAT holds that interest income earned was from the investment made by the assessee in Bank deposits and not from the business of the assessee of developing housing projects; Notes, that the expression “derived from” in section 80IB(10) envisages a direct or first degree connection of the income eligible for ............... Click here to read and download ITAT order
3) HC upholds addition treating advance money not used for the purpose for which received, as income - HC observes that it was not merely that the advance received was treated as income by the AO, the addition was made as the advance money (received for the purpose of procuring land on behalf of TATA Housing) was used for purpose other than procuring the land and no document/ evidence was produced to support the claim that there was no surplus being generated from the said advance thereby with-holding the information .............. Click here to read and download HC judgment
4) ITAT: Addition based on mere presumption, guess-work or conjectures without affording opportunity of being heard, unsustainable - ITAT upholds CIT(A)’s order deleting addition of Rs. 10.20 crores on account of alleged difference in receipts as per the bank account of the assessee and receipts as per its books of account for an assessee engaged in the business of equity trading, derivatives trading and in real estate investment; Notes that the AO made additions on the basis of certain information .............. Click here to read and download ITAT order
5) HC: Private trust properties cannot be attached to recover tax dues of the trustees - HC admits writ, quashes attachment orders in respect of properties held by the Family Benefit Trust (‘the trust’) and recovery notices against the trust; HC notes that the trust was formed and settled by the Will of .......... Click here to read and download HC judgment
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Expert Column
Registration u/s 12AA is condition precedent to claim exemption under Sections 11 to 13 of the IT Act and charitable institutions also need to be registered u/s 80G of the IT Act for its donors to avail deductions. At the stage of granting registration, objects of trust / institution, purported utilization of its income, application of funds for charitable purposes, actually commenced etc usually form the grounds of consideration for grant of registration to these trusts. Recently in the case of Ananda Social & Educational Trust reported in [TS-5038-SC-2020-O] SC finally provided relief to those Charitable Trusts that have been denied registrations until now, solely for not undertaking any activities prior to applying for registration, SC held that “a newly registered Trust is entitled for registration u/s. 12AA on the basis of its objects, without any activity having been undertaken”.
In this regard Jatin Proothi (Chartered Accountant) in his article highlights that in many cases it was not possible to satisfy the CIT(E)s about whether the activities of the trust are genuine or not as required by sub clause (i) of clause (a) of sub section (1) of Section 12AA. The author examines the SC judgment to opine that it will save many newly registered public charitable or religious trust on the issue of grant of registration u/s 12A without any activities carried on by them.
Access to a strong repository of Tax Rulings is a key requirement of tax professionals like yourselves. Taxsutra Database is a brand new addition to the Taxsutra bouquet of services. Largely known for its world class real time news and updates service, Taxsutra brings to you a comprehensive, easy to use Database service which offers the following features:
Over 106870+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent unreported handpicked ruling
Completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience
Search results supported by active filters around Court Level, Location, Case Numbers and Citation
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“FPI & PE funds – unintended Tax Consequences; CIT(A) power to decide stay petition; Transfer of accumulated income to unregistered.....and lot more!
Issue No. 203 / April 29th, 2020
Dear Professionals,
“Taxsutra Database”, a true Income-tax Research is an archive of over 106700 + Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC & ITAT’. A completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience; Search results supported by active filters around Court Level, Location, Case Numbers and Citation; A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
We are glad to present to you the 201st edition of ‘Taxsutra Database’, where we keep you updated with recent rulings and an expert column on FPI & PE funds – unintended Tax Consequences.
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Taxsutra Database - Expert Column
In order to fight COVID-19, countries across the globe are taking measures on restriction on travel, imposing lockdown etc. Owing to the same, many employees of a foreign entity could be stranded and forced to work remotely from India and in many cases, the employees stay-period may exceed the service PE threshold. It will be important for all MNCs to review whether these “employees” are creating corporate tax risks. In this regard OECD Secretariat on April 3rd, 2020 issued guidance addressing concerns on PE,POEM etc. during COVID-19 pandemic
To determine how business should prepare to take appropriate mitigating action, Sachin Kumar BP, (Partner Manohar Chowdhry & Associates) and Nitish Ranjan (Associate) discuss the unintended tax consequences for Foreign Portfolio investments and Private equity funds based in Mauritius or Singapore, in a situation where managers thereof are temporarily away from home country and are stranded in the host country (India). The authors' inter-alia suggest robust documentation of the employees details setting out the intention of the parties to be able to take support from the guidance by OECD to mitigate Service PE/POEM exposure .
Click here to read the article titled “FPI and PE funds – unintended tax consequences of COVID 19”
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Key Takeaways from Handpicked rulings
1) HC: Transfer of accumulated income to unregistered Society, taxable u/s 11(3) – HC upholds ITAT order holding that amount give to PSWHMMS (an unregistered society) is the income of the assessee-society in terms of section 11(3)(d) by holding that the status of the donee-society is immaterial for the purposes of application of section 11(3), despite the CBDT circular itself differentiating between the societies as enumerated in section 11(3)(d) and other societies; Notes that assessee - society (working under the State Government) is registered u/s 12AA, ................. Click here to read and download HC judgment
2) HC: Mere cash credit entries in books of a firm cannot lead to addition u/s 68 – HC holds that assessee-firm only needs to prove the source of credit entries and is not required to prove the source of the source or the creditors' credit; Opines that “where a sum is credited in the books of account of a firm from a partner, the assessee firm could discharge its onus by providing three things: (i) identity of the creditor; (ii) creditworthiness of the creditor; and (iii) genuineness of transaction in question”; Explains that as per the provision of Section 68............. Click here to read and download HC judgment
3) HC: Power of Appellate Commissioner coterminous with that of ITO u/s 251 – HC holds that, power exercisable by CIT(A) u/s 251 cannot be restricted to only the issues raised by the assessee in any appeal before him, but Commissioner can exercise his discretion and do what the ITO does and further the section also empowers him to direct the AO to do what he had failed to do; Explains that the power of the Commissioner is not bridled in any way and the language of the section is plain and simple; Notes that CIT(A) deleted additions made by the AO and had made two additions .......... Click here to read and download HC judgment
4) ITAT: Sec. 50C(2) mandates reference to DVO for valuation of the property – ITAT holds valuation by District Valuation Officer (DVO) mandatory in terms of sec. 50C(2), sets aside the issue to AO for fresh adjudication after complying with the provisions of section 50C(2) by referring the valuation of the property to the DVO; AO invoked the provisions............. Click here to read and download ITAT order
5) ITAT: CIT(A) is bound to follow jurisdictional HC, allows Sec. 54 / 54F benefit for investment made in spouse name – ITAT holds that assessee’s jurisdiction and PAN being transferred to Delhi, jurisdiction lies with the Hon'ble Delhi High Court, follows decision reported in [TS-724-HC-2013(DEL)-O] of Delhi HC, being jurisdictional HC to grant exemption u/s. 54F towards investment in purchase of property in the name of his wife; Assessee on appeal submitted that the date on which appeal is filed would be material point of time for consideration jurisdiction; ITAT ......... Click here to read and download ITAT order
6) HC: CIT(A) has the power to decide stay petition, remands matter to CIT(A) for disposal with direction to revenue authorities “No coercive steps” against recovery – Assessee submitted that no stay petitions was filed before the AO, hence CIT(A) should not have directed to file stay petition before AO to get suitable remedy; HC considering Assessee`s submission remands the matter back to CIT(A) to dispose of stay petitions, notes that CIT(A) instead of exercising the discretion and power ......... Click here to read and download HC judgment
Access to a strong repository of Tax Rulings is a key requirement of tax professionals like yourselves. Taxsutra Database is a brand new addition to the Taxsutra bouquet of services. Largely known for its world class real time news and updates service, Taxsutra brings to you a comprehensive, easy to use Database service which offers the following features:
Over 106700+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent unreported handpicked ruling
Completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience
Search results supported by active filters around Court Level, Location, Case Numbers and Citation
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Secondment of employees and tax litigation; SC: Depreciation claim withdrawn during subsequent search proceedings; Fess u/s 234E can be imposed.....and lots more!
Issue No. 202 / April 15th, 2020
Dear Professionals,
“Taxsutra Database”, a true Income-tax Research is an archive of over 106700 + Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC & ITAT’. A completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience; Search results supported by active filters around Court Level, Location, Case Numbers and Citation; A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
We are glad to present to you the 202nd edition of ‘Taxsutra Database’, where we keep you updated with recent rulings.
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Taxsutra Database - Expert Column
Multinational companies often depute their employees overseas to perform certain assigned activities, to provide technical assistance, or provide skill-development opportunities to employees etc. Reimbursement of salary costs of such ‘Seconded Employees’, unless carefully structured, can result in serious tax implications, both for the Indian subsidiary and the overseas company.
In this regard, Dharan V. Gandhi ( Advocate) in Part 1 of this 3 parts article series, deals with the tax implications in respect of payment made by Indian companies to their overseas counterpart for secondment of employees, more particularly employees deputed at senior positions. In Part 2, the author shall evaluate the angle of reimbursement vis-a-vis FTS and Part 3 deals with the angle of the secondment transaction vis-a-vis constitution of a Permanent Establishment
1) ITAT: Investigation Wing is part of Income Tax Department, not an external law enforcement agency – ITAT dismisses Revenue’s appeal, holds that exception in para 10(e) of the Circular No. 3/2018 which has been referred by the ld DR relates to cases where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI)..............Click here for details
2) HC: Cash credited in the books of Account maintained for any previous year cannot be taxed in next financial year – Goa Bench of Bombay HC holds that as per definition of the expression “previous year” as defined in Section 3 of the IT Act, AO was not justified to bring credit found during FY 2006-07 as the assessee income for the assessment year 2009-10,..................Click here for details
3) HC: AO must establish deliberate defiance or wilful contravention of the law – HC holds that mere conclusion in the assessment order that the assessee had failed to collect the Securities Transaction Tax (STT) or had failed to pay such STT to the credit of the Central Government, would not .......... Click here for details
4) SC: Carry forward of loss cannot be disallowed merely because Returns were filed in the old form – SC dismisses Revenue’s SLP against HC order considering that assessee has filed the return of income within the due date, though it’s in old form amounts to sufficient compliance of the provision; The AO had disallowed carry forward loss relating to AY 2007-08 on the ground that the assessee did not file.......... Click here for details
5) SC: Depreciation claim withdrawn during subsequent search proceedings, would not give rise to penalty - SC dismisses Revenue’s SLP challenging HC order quashing penalty proceedings initiated u/s 271(1)(c); AO noticed that during search proceeding as per the statement u/s. 132(4) director of the company reduced the claim of depreciation on IPRs to avoid litigation and to buy peace; AO initiated and levied the penalty invoking Expl. 5A to section 271(1)(c) and CIT(A) sustained AO’s order;......... Click here for details
6) ITAT Third Member - Explanation to section 73 does not differentiate between 'delivery based transactions' and 'derivative transactions in F&O segment' and same applies to the entire business of purchase and sale of shares, whether such trading is delivery based or non-delivery based and, whether there is ............. Click here for details
7) ITAT - NRI Stayed in India for 283 days, not entitled to exemption u/s 10(4)(ii) – ITAT upholds CIT(A) order that the assessee would be a "person resident in India" as per clause (v) of section 2 of FEMA, not eligible for exemption u/s 10(4)(ii); States that exemption of interest on Non-Resident (external) accounts, both.......... Click here for details
8) HC: Fess u/s 234E can be imposed, expenses cannot be disallowed – HC holds that non-filing TDS related documents at the time of filing of return of TDS cannot take away the benefit which will accrue to the assessee under............ Click here for details
9) HC: Notice u/s 143(2) is necessary in case of assessment proceedings u/s 158BC – God Bench of Bombay HC admits cross objection filed by assessee though ITAT has not given any finding against the assessee and at the time when this Appeal was admitted no cross-objections were filed earlier as the issue, whether notice u/s 143(2) of the IT Act is necessary or not had been decided by the.............. Click here for details
Access to a strong repository of Tax Rulings is a key requirement of tax professionals like yourselves. Taxsutra Database is a brand new addition to the Taxsutra bouquet of services. Largely known for its world class real time news and updates service, Taxsutra brings to you a comprehensive, easy to use Database service which offers the following features:
Over 106700+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent unreported handpicked ruling
Completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience
Search results supported by active filters around Court Level, Location, Case Numbers and Citation
A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
The Taxsutra Database comes at a very special Annual Subscription price of 4200 + GST AND includes a annual license to the Taxsutra Library.
BS Nagaraj and GL Rinitha, Chartered Accountants, in their article explore on the issue in light of the aforesaid ruling and provisions relating to processing of refunds and the recent legislative changes. The authors discuss the changes in law with amendments in Sec. 143(1D) which stated that processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2) and introduction of Sec. 241A which laid down provisions on withholding of refunds in certain cases. The authors further discuss the implications of the SC ruling in Vodafone and ponder “If the observations of the Hon’ble SC on the interplay between sections 143(1), 143(1D) and 143(2) as they stood prior to AY 2017-18, are interpreted on a standalone basis to mean that once notice under 143(2) is issued, there is no requirement for 143(1) processing, it may lead to a conclusion that, there is no requirement for any discretion to be exercised by the AO”. The authors sign off stating that “While the law has since changed, the battle for custody of tax refunds is likely to continue before the Courts and the facts of each case would determine which party wins the battle!”
Bharathi Krishnaprasad (Principal Associate, Lakshmikumaran & Sridharan) and Harshit Khurana (Senior Associate) in their article today discuss various provisions of Indian Income Tax as applicable to e-commerce players in India.
In this regard Jatin Proothi (Chartered Accountant) in his article highlights that in many cases it was not possible to satisfy the CIT(E)s about whether the activities of the trust are genuine or not as required by sub clause (i) of clause (a) of sub section (1) of Section 12AA. The author examines the SC judgment to opine that it will save many newly registered public charitable or religious trust on the issue of grant of registration u/s 12A without any activities carried on by them. 
To determine how business should prepare to take appropriate mitigating action, Sachin Kumar BP, (Partner Manohar Chowdhry & Associates) and Nitish Ranjan (Associate) discuss the unintended tax consequences for Foreign Portfolio investments and Private equity funds based in Mauritius or Singapore, in a situation where managers thereof are temporarily away from home country and are stranded in the host country (India). The authors' inter-alia suggest robust documentation of the employees details setting out the intention of the parties to be able to take support from the guidance by OECD to mitigate Service PE/POEM exposure .