News
Micro, Small and Medium Enterprises (MSME) – Clarifications on investment, etc.
25 August 2020
Reiterating a recent clarification by Ministry of Micro, Small and Medium Enterprises, the Reserve Bank of India (RBI) has clarified that the value of plant and machinery or equipment for all purposes of the Notification No. S.O. 2119(E) dated June 26, 2020 and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the Financial Year as defined in the Income Tax Act, 1961 and not cost of acquisition or original price.
Faceless assessment introduced in Income Tax
17 August 2020
With the renaming of E-assessment Scheme 2019, the Central Board of Direct Taxes (CBDT) has launched “Faceless Assessment Scheme” under Income Tax. It may be noted that the Central Board of Indirect Taxes (CBIC) has also recently launched faceless assessment in respect of Customs clearances at various specified ports. While the faceless assessment under Customs will be fully implemented pan India by December 31, 2020, the scheme under Income Tax is effective from August 13, 2020.
Computer program – Invention must be examined as whole, considering technical effect achieved and its technical contribution
17 August 2020
The IPAB has allowed the appeal in a case where the Controller had earlier refused to grant patent to a computer program observing that the objections as regards lacking novelty as well as falling under Section 3(k) of the Patents Act persisted. The invention taught delaying a hit to the web (internet) unless necessary parameters to construe the request were extracted from the user.
Execution proceedings – Delhi High Court formulates detailed affidavit of assets and income of judgement-debtor
06 August 2020
The Delhi High Court has formulated detailed formats of affidavit of assets and income of the judgement-debtor to be filed at the threshold of execution proceedings. The Court in its judgement dated August 5, 2020 also laid down detailed guidelines for the Executing Court. It observed that this will curb the delay and expedite disposal of execution proceedings.
Refund of credit accumulated on input services due to inverted duty structure, available
04 August 2020
The Gujarat High Court has allowed refund of accumulated credit of input services in case of inverted duty structure. Explanation (a) to Rule 89(5) of CGST Rules was read down to the extent it denied refund of ITC as accumulated on account of ”input services”.
E-Commerce – Consumer Protection (E-Commerce) Rules, 2020 notified
28 July 2020
Within few days of coming into force of major provisions of the Consumer Protection Act, 2019, the Department of Consumer Affairs in the Ministry of Consumer Affairs, Food and Public Distribution has issued Consumer Protection (E-Commerce) Rules, 2020 which have come into force from July 23, 2020.
Foreclosure charges are not liable to service tax – CESTAT Larger Bench
20 July 2020
The Larger Bench of the CESTAT has held that ‘foreclosure charges’ levied by banks and non-banking financial companies on premature termination of a loan can not be subjected to levy of service tax under Banking and Other Financial Services (“BoFS”).
Civil Court’s jurisdiction barred in copyright suit arising from insolvency resolution plan – NCLT to adjudicate
10 July 2020
In an interesting case of intersection of insolvency and copyright laws, the Delhi High Court has held that the suit for alleged infringement of copyrights, arising out of and/or is in relation to the insolvency resolution plan of a corporate debtor must be adjudicated by the NCLT and that the proceedings in the Civil Court are barred.
Loans on exorbitant interest rates covered under Extortionate Credit Transactions
06 July 2020
Observing that the short-term loans advanced by few Appellants on exorbitant rates of interest (40% to 60% per annum) were covered under Extortionate Credit Transactions as prohibited under Section 50(1) of the Insolvency and Bankruptcy Code, 2016, the NCLAT has set aside the entire transactions as illegal and void and held them as not entitled to any relief.
TRAN-1 – Delhi High Court decision in Brand Equity stayed by Supreme Court
22 June 2020
The Supreme Court of India has on 19-06-2020 stayed the Delhi High Court decision in the case of Brand Equity Treaties Ltd. v. Union of India (decision dated 05-05-2020). The High Court had held that an assessee can avail Input Tax Credit of the accumulated Cenvat credit as on 30-06-2017 by filing GST Form TRAN-1 beyond the period of limitation prescribed under Rule 117 of Central Goods and Services Tax Rules, 2017.