PUBLISHER ALL GUJARAT FEDERATION OF TAX CONSULTANTS TAX PULSEBY AGFTC VOLUME: 7 JANUARY 2024 agftc_guj @ agftc_guj @ agftc 4234
PUBLICATION COMMITTEEAdv. ( Dr.) Dhruven V. Shah Chairman Adv. Bharat L . Sheth Adv. Samir Siddhapuria Adv. Ashutosh Thakkar CA Ketul S. Soni Co- Chairmen CONTRIBUTORS CA Ketul Soni CA J igar Parikh CS Nirav Soni CA Mahadev Birla CA Jenil Shah
The following information provides general updates on direct and indirect tax by AGFTC (All Gujarat Federation of Tax Consultants). However, tax laws and regulations can vary by jurisdiction and may change frequently. The updates provided are for informational purposes only and should not be considered as legal or professional advice. It is always recommended to consult with a qualified tax professional or refer to official government sources for the most accurate and up-to-date information specific to your situation. AGFTC and its authors/contributors cannot be held responsible for any errors, omissions, or reliance on the information provided in the free profession updates. Opinions, views, statements, results, replies, etc., published in the Journal are of the respective authors/contributors. Neither All Gujarat Federation of Tax Consultants nor the authors / contributors are responsible in any way whatsoever for any personal or professional liability arising out of the same. No part of this publication may be reproduced or transmitted in any form or by any means without the permission in writing from AGFTC. No part of the contents of the Journal should be used as, or be regarded as a substitute for, professional advice. READER'S SUGGESTIONS AND VIEWS: We invite the suggestions and views from readers for improvement of Publication. Kindly send your suggestions on [email protected] DISCLAIMER Page 1 of 21
INDEX No. Particulars Contributor 1 President Message CA Ravi H. Shah 2 Chairman’s Communication Adv. (Dr.) Dhruven V. Shah 3 Managing Committee and Sub Committees for the year 2023 - 2024 4 Income Tax Updates CA Ketul Soni 5 Goods and Service Tax Updates CA Jenil Shah 6 Income Tax Judgments CA Ketul Soni 7 GST Judgments CA Jigar Parikh 8 RERA Updates / Judgments CA Mahadev Birla Page 2 of 21
President’s Message Dear Esteemed Members of AGFTC, As we usher in the new year, I trust this message finds you in good health and high spirits. It is my privilege to reach out to you through the pages of our esteemed Monthly Journal, Tax Pulse, to discuss some critical aspects of the tax landscape that will shape our journey in 2024. Adapting to Change: The world of taxation is ever-evolving, with regulations and compliance requirements shifting in response to global economic trends. It is imperative for us, as members of AGFTC, to remain adaptable and proactive in navigating these changes. Embracing a mindset of continuous learning and staying updated on the latest tax developments will undoubtedly position us as leaders in our field. Technological Advancements: The integration of technology into tax practices is accelerating at an unprecedented pace. Automation, artificial intelligence, and data analytics are transforming the way we approach tax matters. I encourage each member to explore and leverage technological tools that not only enhance efficiency but also contribute to strategic decision-making. Global Perspectives: The interconnectedness of the global economy necessitates a broad perspective on tax matters. AGFTC members are part of a diverse community, and understanding international tax implications is crucial. Let us engage in collaborative discussions and share insights that contribute to a comprehensive understanding of the global tax landscape. Sustainable Practices: In today's world, sustainability is not just a buzzword; it is a fundamental consideration in all aspects of business, including taxation. As responsible members of AGFTC, let us explore how tax practices can align with environmental, social, and governance (ESG) principles. This alignment not only contributes to societal well-being but also positions our community as a driver of positive change. Community Engagement: Our strength as an association lies in the collective knowledge and experience of our members. I encourage each one of you to actively participate in AGFTC events, webinars, and knowledgesharing sessions. Engaging with fellow members not only enriches your professional network but also fosters an environment of collaborative growth. In conclusion, as we navigate the intricate realm of tax matters in 2024, let us face the challenges with resilience, innovation, and a commitment to excellence. Together, we can uphold the highest standards in our profession and collectively contribute to the advancement of the taxation landscape. Thank you for your continued dedication to excellence, and I look forward to our shared successes in the year ahead. Best Regards, Warm regards, CA Ravi Shah President of AGFTC 2023-24 Page 3 of 21
Chairman’s Communication Dear AGFTC Members and Esteemed Readers, As we kick off the new year, I am pleased to extend my warmest greetings to each of you. It is with great enthusiasm that I share some insights on the upcoming content in our Monthly Journal, Tax Pulse. As the Chairman of the Publication Committee, my goal is to ensure that the content we deliver remains not only informative but also tailored to the evolving needs of our esteemed members. Curating Relevant Content: Our commitment to providing valuable insights and expert opinions in Tax Pulse remains unwavering. In the coming months, we are dedicated to curating content that delves into the latest trends, regulatory changes, and innovative practices in the field of taxation. Expect thoughtprovoking articles, case studies, and interviews with industry leaders that will enhance your understanding of the dynamic tax landscape. Member Spotlights: We recognize the exceptional talent within our AGFTC community. To highlight and celebrate our members' achievements, we will be introducing a new section featuring Member Spotlights. This will provide a platform to showcase your successes, innovative approaches, and contributions to the tax domain. Your stories inspire us all, and we look forward to sharing them with our readers. Interactive Features: Engagement is key, and we want Tax Pulse to be more interactive than ever. Look out for polls, surveys, and discussion prompts that encourage active participation from our readership. Your perspectives and experiences are invaluable, and we aim to create a platform where your voices can be heard and shared. Emerging Trends Series: To keep you ahead of the curve, we will be introducing an Emerging Trends Series, focusing on the latest developments in taxation, technology, and global business practices. This series aims to provide you with foresight into what lies ahead, enabling you to adapt proactively to emerging challenges and opportunities. Your Input Matters: The success of Tax Pulse relies on your feedback and contributions. I encourage each member to share your thoughts, suggestions, and ideas for future topics. Our goal is to tailor our content to meet your needs and provide a valuable resource that enriches your professional journey. In closing, I am excited about the prospects that 2024 holds for AGFTC and our Monthly Journal. Your support and engagement are pivotal to the success of Tax Pulse, and I am confident that together, we will continue to elevate the standards of excellence within our community. Thank you for your continued participation, and I look forward to an enriching year of insights and collaboration. Warm regards, Adv. (DR) Dhruven Shah Chairman of Publication Committee 2023-24 Page 4 of 21
Managing Committee for the Year 2023-24 No. Name of the Member Designation Mobile No. Email ID 1 CA RAVI H SHAH President 9825271171 [email protected] 2 CA (Dr.) VISHVES A SHAH Sr. Vice President 9825471182 [email protected] 3 ADV HIREN VAKIL Immediate Past President 9978390284 [email protected] 4 ADV ANIL K SHAH Vice President (South Zone) 9374721983 [email protected] 5 ADV MAHENDRA H SWAMI Vice President (North Zone) 9898220549 [email protected] 6 ADV RAMESH TRIVEDI Vice President (Saurashtra Zone) 9824218580 [email protected] 7 ADV SUNIL C SHAH Vice President (Central Zone) 9825047598 [email protected] 8 ADV ASHUTOSH R THAKKAR Vice President (Ahmedabad Zone) 9824500479 [email protected] 9 CA SHRIDHAR K SHAH Hon. Secretary 9376832362 [email protected] 10 ADV AMIT SONI Hon. Jt. Secretary 9824701193 [email protected] 11 CA SHIVAM BHAVSAR Hon. Jt. Secretary 9429906707 [email protected] 12 DHRUVIN MEHTA Hon. Jt. Secretary 8511995588 [email protected] 13 ADV MAULIN SHAH Hon. Treasurer 9426358803 [email protected] 14 ADV ANIL R PARIKH Mgn. Com. Member 9824032160 [email protected] 15 ADV BHARAT DAVE Mgn. Com. Member 9426464560 [email protected] 16 ADV CHETAN GAJJAR Mgn. Com. Member 9998154200 [email protected] 17 ADV DIPESH D SHAKWALA Mgn. Com. Member 9925433455 [email protected] 18 ADV JIGNESH A BHAGAT Mgn. Com. Member 9824019569 [email protected] 19 ADV NARENDRA D KARKAR Mgn. Com. Member 9825293554 [email protected] 20 ADV NITIN VADODARIYA Mgn. Com. Member 9377939045 [email protected] 21 ADV RATILAL VAGHASIYA Mgn. Com. Member 9825068026 [email protected] 22 ADV RUPESH R SHAH Mgn. Com. Member 9879134599 [email protected] 23 CA KETAN N SHAH Mgn. Com. Member 9898118284 [email protected] 24 CA MAULIK PATEL Mgn. Com. Member 9824753530 [email protected] 25 CA MITISH MODI Mgn. Com. Member 9824156015 [email protected] 26 CA PARTH DOSHI Mgn. Com. Member 9727907756 [email protected] 27 CA RAJENDRA KABRA Mgn. Com. Member 9825412653 [email protected] 28 CA SANJAY D PATEL Mgn. Com. Member 9879092340 [email protected] 29 CA SANJEEV C BUDDH Mgn. Com. Member 9898006770 [email protected] 30 KANUBHAI KATHIRIYA Mgn. Com. Member 9824539875 [email protected] 31 RAMESH T KACHRANI Mgn. Com. Member 9825436050 [email protected] 32 CA SUVRAT SHAH Mgn. Com. Member 9825651549 [email protected] 33 SR. ADV. SAURABH N. SOPARKAR Co – Opted Member President - ITAT Bar Association, Ahmedabad 34 CA ASHISH TEKWANI Co – Opted Member President - Income Tax Bar Association 35 ADV. KINJAL R. SHAH Co – Opted Member President - Tax Advocate Association Gujarat 36 CA PURSHOTTAM KHANDELWAL Co – Opted Member 37 CA VISHAL DOSHI Co – Opted Member 38 CA VIKAS JAIN Co – Opted Member 39 ADV. MRUDANG VAKIL Co – Opted Member Page 5 of 21
Sub Committees of AGFTC for the year 2023-24 REPRESENTATION COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. DHIRESH T SHAH, AHMEDABAD Chairman 9825188888 [email protected] 2 ADV. BHARAT K. JANI, AHMEDABAD Co-Chairman 9824062066 [email protected] 3 ADV. HARISH N. SHAH, AHMEDABAD Co-Chairman 9825413630 [email protected] 4 CA BHAILAL K PATEL, AHMEDABAD Co-Chairman 9825033927 [email protected] 5 ADV. (Dr.) DHRUVEN V. SHAH, AHMEDABAD Co-Chairman 9824028247 [email protected] 6 ADV. HIREN R. VAKIL, AHMEDABAD Co-Chairman 9978390284 [email protected] MOFUSSIL COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. PRAFUL C SHAH, AHMEDABAD Chairman 9725444089 [email protected] 2 CA VIMAL PARIKH, GODHARA Co-Chairman 9825246552 [email protected] 3 ADV. TARAK DESAI, GODHRA Co-Chairman 9427309429 [email protected] 4 ADV. DIPESH SHAKWALA, SURAT Co-Chairman 9925433455 [email protected] 5 SHASHIKANT SHAH, HALOL Member 98980 47100 [email protected] 6 CA PIYUSH PANCHAL, NADIAD Member 9879399655 [email protected] 7 CA JAPAN YAGNIK, MEHSANA Member 9825046598 [email protected] 8 BHUPENDRA THAKKAR, AHMEDABAD Member 9898589386 [email protected] 9 ADV. BHARAT DAVE, BHAVNAGAR Member 9426464560 [email protected] 10 CA SANJIV BUDDH, JAMNAGAR Member 9898006770 [email protected] 11 ADV. SURESH THAKKAR Member 9825638597 smthakkar [email protected] CONVENTION COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. (Dr.) DHRUVEN V. SHAH, AHMEDABAD Chairman 9824028247 [email protected] 2 ADV. KARTIKEY B. SHAH, AHMEDABAD Co-Chairman 8980678777 [email protected] 3 CA. KENAN SATYAVADI, AHMEDABAD Co-Chairman 9016240310 [email protected] 4 ADV. CHINTAN H SHAH, AHMEDABAD Member 9624066550 [email protected] 5 ADV. RAJESH J. SHAH, AHMEDABAD Member 9825050376 [email protected] 6 CA RAGHAV THAKKAR, AHMEDABAD Member 9726175888 [email protected] TAX GURJARI COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. KARTIKEY B. SHAH, AHMEDABAD Chairman 8980678777 [email protected] 2 CA SAVRAT SHAH, AHMEDABAD Co-Chairman 9825651549 [email protected] 3 CA PARTH DOSHI, AHMEDABAD Co-Chairman 9727907756 [email protected] 4 CA KETUL S. SONI, NADIAD Co-Chairman 8128518370 [email protected] 5 HETAL B SHAH, AHMEDABAD Co-Chairman 9825385824 [email protected] 6 ADV. AMIT SONI Co-Chairman 9824701193 [email protected] Page 6 of 21
PUBLICATION COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. (Dr.) DHRUVEN V. SHAH, AHMEDABAD Chairman 9824028247 [email protected] 2 ADV. BHARAT L. SHETH, BHAVNAGAR Co-Chairman 9825565282 [email protected] 3 ADV. SAMIR SIDHPURIA, AHMEDABAD Co-Chairman 9898057711 [email protected] 4 ADV. ASHUTOSH THAKKAR, AHMEDABAD Co-Chairman 9824500479 [email protected] 5 CA KETUL S. SONI, NADIAD Co-Chairman 8128518370 [email protected] DIRECT TAX COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. DHINAL SHAH, AHMEDABAD Chairman 9825029950 [email protected] 2 CA MITISH MODI, SURAT Co-Chairman 9824156015 [email protected] 3 ADV. RATILAL VAGHASIA, AHMEDABAD Co-Chairman 9825068026 [email protected] 4 CA KAMLESH PARIKH, ANAND Member 9825084244 [email protected] 5 CA SANJAY PATEL, ANAND Member 9825957230 [email protected] 6 BHARAT R. OZA, JAMNAGAR Member 9825212925 [email protected] INDIRECT TAX COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV.BHARAT L SHETH, BHAVNAGAR Chairman 9825565282 [email protected] 2 ADV. SAMIR SIDDHPURIA, AHMEDABAD Co-Chairman 9898057711 [email protected] 3 ADV. HARDIK MODH, AHMEDABAD Co-Chairman 9825800523 [email protected] 4 ADV. KULIN PATHAK, SURAT Member 9825564527 [email protected] 5 CA JIGAR PARIKH, VADODARA Member 80001 56230 [email protected] 6 CA PIYUSH PANCHAL, NADIAD Member 9879399655 [email protected] 7 CA SHIVAM BHAVSAR, AHMEDABAD Member 9429906707 [email protected] WEBSITE & IT COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 CA ASHISH TEKWANI, AHMEDABAD Chairman 98252 88644 [email protected] 2 CA SHRIDHAR SHAH, AHMEDABAD Co-Chairman 9376832362 [email protected] 3 CA SHIVAM BHAVSAR, AHMEDABAD Co-Chairman 9429906707 [email protected] 4 ADV. HIRAK SHAH, AHMEDABAD Member 9687304857 [email protected] 5 DHRUVIN MEHTA, AHMEDABAD Member 8511995588 [email protected] 6 CA. PARIN P. SHAH, AHMEDABAD Member 9998043089 [email protected] RRC COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 CA (Dr.) VISHVES SHAH, AHMEDABAD Chairman 9825471182 [email protected] 2 ADV. JIGNESH BHAGAT, AHMEDABAD Co-Chairman 9824019569 [email protected] 3 ADV. MAHENDRA SWAMI, PATAN Co-Chairman 9714566456 [email protected] 4 ADV. TEJAS SHAH, AHMEDABAD Member 9825011851 [email protected] 5 ADV. JIGNESH SHAH, AHMEDABAD Member 9898372730 [email protected] 6 CA MAULIK PATEL, AHMEDABAD Member 9824753530 [email protected] 7 CA RAJENDRA KABRA, AHMEDABAD Member 9825412653 [email protected] Page 7 of 21
MEMBERSHIP GROWTH COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. RUPESH SHAH, AHMEDABAD Chairman 9879134599 [email protected] 2 ADV. MRUDANG VAKIL, AHMEDABAD Co-Chairman 9825072194 [email protected] 3 CA. MITISH MODI, SURAT Co-Chairman 9824156015 [email protected] 4 ADV RAMESH TRIVEDI, BHAVANGAR Member 9824218580 [email protected] 5 ADV. NARENDRA KANSARA, AHMEDABAD Member 9879475600 [email protected] 6 ADV. BHARAT DAVE, BHAVNAGAR Member 9426464560 [email protected] 7 ADV. SHAILESH MAKWANA, AHMEDABAD Member 9824051868 [email protected] 8 ADV. APAL SHAH, AHMEDABAD Member 9426625004 [email protected] 9 CA SANJIV BUDDH, JAMNAGAR Member 9898006770 [email protected] LEGAL COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 ADV. ASHUTOSH THAKKAR, AHMEDABAD Chairman 9824500479 [email protected] 2 ADV. PRAFUL C SHAH, AHMEDABAD Co-Chairman 9725444089 [email protected] 3 ADV. KARTIKEY SHAH, AHMEDABAD Co-Chairman 8980678777 [email protected] 4 CA PRATIK KANARIYA, AHMEDABAD Member 99985 76549 [email protected] 5 ADV. RUPESH SHAH, AHMEDABAD Member 9879134599 [email protected] CONSTITUTION COMMITTEE No. Name of the Member Designation Mobile No. Email ID 1 CA BAKUL I. SHAH, PALANPUR Chairman 9428137737 [email protected] 2 ADV. PRAFUL C SHAH, AHMEDABAD Co-Chairman 9725444089 [email protected] 3 ADV. (Dr.) DHRUVEN SHAH, AHMEDABAD Co-Chairman 9824028247 [email protected] 4 CA (Dr.) VISHVES SHAH, AHMEDABAD Member 9825471182 [email protected] 5 ADV. RUPESH SHAH, AHMEDABAD Member 9879134599 [email protected] 6 CA ASEEM L THAKKAR, AHMEDABAD Member 9825030443 [email protected] Page 8 of 21
Saurashtra Region Zonal Committee 2023-24 No. Name of the Member Designation Mobile No. Email ID Place 1 Ramesh N. Trivedi Ex-Officio Member 9824218580 [email protected] Bhavnagar 2 Bharat J. Dave Ex-Officio Member 9426464560 [email protected] Bhavnagar 3 CA Sanjeev C. Buddh Ex-Officio Member 9898006770 [email protected] Jamnagar 4 Nitin V. Vadodaria Ex-Officio Member 9377939045 [email protected] Botad 5 Hemant Patel Chairman 7016940815 [email protected] Bhavnagar 6 Manish V. Sojitra Co-Chairman 9825220678 [email protected] Gondal 7 Alpesh Upadhyay Co-Chairman 9974067354 [email protected] Jamnagar 8 CA Dipak Shah Co-Chairman 9825229278 [email protected] Surendranagar 9 Mahesh Shilu Member 9428119045 [email protected] Botad 10 Bharat R. Oza Member 9825212925 [email protected] Jamnahar 11 Alpesh J. Lunadaria Member 9824289910 [email protected] Rajkot 12 Amarkumar N. Deshaval Member 9913539409 [email protected] Somnath 13 Piyush M. Pandya Member 9426214111 [email protected] Amreli 14 Vidyut V. Buch Member 9825225826 [email protected] Gandhidham Central Region Zonal Committee 2023-24 No. Name of the Member Designation Mobile No. Email ID Place 1 Sunil C Shah Ex-Officio Member 9825047598 [email protected] Godhra 2 Maulin B Shah Ex-Officio Member 9426358803 [email protected] Godhra 3 Adv. Amit Soni Ex-Officio Member 9824701193 [email protected] Nadiad 4 CA Piyush Panchal Chairman 9879399655 [email protected] Nadiad 5 CA Vimal A Parikh Co-Chairman 9825246552 [email protected] Godhra 6 CA Brijesh Shah Co-Chairman 9825187070 [email protected] Anand 7 Adv. Ajit Tiwari Co-Chairman 9824032251 [email protected] Vadodara 8 Arpit Shah Member 9824003636 [email protected] Nadiad 9 CA Hardik Patel Member 9723403561 [email protected] Anand 10 CA Jigar Parikh Member 8000156230 [email protected] Vadodara 11 Ankit S Shah Member 9879244177 [email protected] Anand 12 CA Abdul Wahab G Pathan Member 9426419900 [email protected] Dahod 13 Kalpesh Manubhai Shah Member 9825007914 [email protected] m Vadodara 14 Adv Pranav shah Member 9879628222 [email protected] Vadodara 15 CA Rajesh V Jain Member 9913125397 [email protected] Halol 16 CA Jagrut Shah Member 9879733843 [email protected] Nadiad Page 9 of 21
North Region Zonal Committee 2023-24 No. Name of the Member Designation Mobile No. Email ID Place 1 Mahendra Swami Ex-Officio Member 9714566456 [email protected] Patan 2 Rameshchandra Kachrani Ex-Officio Member 9825436050 [email protected] Deesa 3 Dilipkumar Bachubhai Thakkar Chairman 9825265596 [email protected] Deesa 4 CA Parag Malvi Co-Chairman 9825068407 [email protected] Palanpur 5 CA Mulchand Khatri Co-Chairman 9825998993 [email protected] Palanpur 6 Subhash M. Shah Co-Chairman 9825297250 [email protected] Palanpur 7 Suresh N. Thakkar Member 9825638597 [email protected] Deesa 8 Adv. Satish Banawala Member 9898034334 9106633422 [email protected] Deesa 9 Hitesh Kanubhai Prajapati Member 9104044091 [email protected] & [email protected] Mehsana 10 Kiritkumar Nayanbhai Patel Member 9825087806 [email protected] Mehsana 11 Pradhanji Sujaji Parmar Member 9426036291 [email protected] Deesa 12 Kanubhai Dhirajlal Popat Member 9727906060 [email protected] Patan 13 Hiralal B. Patel Member 9879593205 [email protected] Siddhpur 14 Davram Rajgor Member 942753122 [email protected] Deesa South Region Zonal Committee 2023-24 No. Name of the Member Designation Mobile No. Email Id Place 1 Anil K. Shah Ex-Officio Member 9825564527 [email protected] Surat 2 Dipesh Shakwala Ex-Officio Member 9925433455 [email protected] Surat 3 CA Mitish Modi Ex-Officio Member 9824156015 [email protected] Surat 4 Kulin C Pathak Chairman 9825564527 [email protected] Surat 5 Janak Patchigar Co-Chairman 9824100803 [email protected] Surat 6 Bhavesh Gandhi Co-Chairman 9998281128 [email protected] Navsari 7 CA Kashyap Gandhi Co-Chairman 9825116117 [email protected] Vapi 8 CA (Dr.) Shailendra Saxena Co-Chairman 9377410260 [email protected] Bharuch 9 Rajnikant Patel Member 9879529424 [email protected] Surat 10 Dhirajbhai Shingala Member 9825128255 [email protected] Surat 11 Tushar Vakilna Member 9601810505 [email protected] Surat 12 Aashish Choksi Member 9824176119 [email protected] Surat 13 CA Akshay M. Modi Member 9624157679 [email protected] Surat 14 Adv Dhaval Bharatbhai Zaveri Member 9374211777 [email protected] Surat 15 CA Rajesh Bhauwala Member 9374721803 rajeshbhauwala@rajeshbhauwala. com Surat 16 CA Nilkanth Paragji Desai Member 9825114988 [email protected] Surat 17 Kishor P. Mandaliya Member 9825375329 [email protected] Surat Page 10 of 21
Recent Notifications Notification No. Date Subject Link 103/2023 18-Dec-2023 Income-tax (Twenty Eighth Amendment) Rules, 2023. Amendment in Rule 17C Permitting “investment by way of acquiring units of POWERGRID Infrastructure Investment Trust” as forms and modes of investment or deposit under clause (xii) of sub-section 5 of Section 11 of Income Tax Act, 1961. https://incometaxindia.gov.in/c ommunications/notification/not ification-103-2023.pdf 104/2023 19-Dec-2023 Income-tax (Twenty Ninth Amendment) Rules, 2023. Amendment in Rule 10TA & 10TD Regarding Safe Harbor Rules for International Transaction https://incometaxindia.gov.in/c ommunications/notification/not ification-104-2023.pdf 105/2023 22-Dec-2023 Income-tax (Thirtieth Amendment) Rules, 2023. ITR-1 SAHAJ FORM for A.Y. 2024- 25 https://incometaxindia.gov.in/co mmunications/notification/notific ation-105-2023.pdf Recent Circulars Circular No. Date Subject Link 20/2023 28-Dec-2023 Guidelines U/s 194O(4) of the Income Tax Act, 1961 regarding removing difficulties for TDS to be deducted on payment of certain sums by ecommerce operator to e-commerce participant. https://incometaxindia.gov.in/co mmunications/circular/ciruclar20-2023.pdf Page 11 of 21 Income Tax Updates Contributed by CA Ketul Soni
Latest GST Notifications (Central Tax) 1. 01/2024 - Extension of due date for filing of return in FORM GSTR-3B for the month of November, 2023 for the persons registered in certain districts of Tamil Nadu. https://taxinformation.cbic.gov.in/view-pdf/1009980/ENG/Notifications 2. 02/2024 - Extension of due date for filing FORM GSTR-9 and FORM GSTR-9C for the Financial Year 2022-23 for the persons registered in certain districts of Tamil Nadu. https://taxinformation.cbic.gov.in/view-pdf/1009980/ENG/Notifications 3. 03/2024 - Seeks to rescind Notification No. 30/2023-CT dated 31 st July, 2023 https://taxinformation.cbic.gov.in/view-pdf/1009980/ENG/Notifications 4. 04/2024 - Seeks to notify special procedure to be followed by a registered person engaged in manufacturing of certain goods. https://taxinformation.cbic.gov.in/view-pdf/1009980/ENG/Notifications (Central Tax Rate) 1. 01/2024 - Seeks to amend Notification No 01/2017- Central Tax (Rate) dated 28.06.2017 https://taxinformation.cbic.gov.in/view-pdf/1009974/ENG/Notifications GSTN Portal Updates and Advisory 1. Advisory: Date extension for reporting opening balance for ITC reversal 1. In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Reclaimed Statement was introduced on the GST portal. This statement was made available to help the taxpayers in tracking their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5). Kindly click here for the detailed advisory provided earlier. 2. Now to facilitate taxpayers further, opportunity to declare opening balance for ITC reversal in the statement has been extended till 31st January, 2024. 3. Kindly note that after declaring the opening balance for ITC reversal, only three amendment opportunities post the declaration will be provided to correct declared opening balance in case of any mistakes or inaccuracies in reporting. 4. Facility to amend declared opening balance for ITC reversal will be available till 29th February, 2024. Read More: https://www.gst.gov.in/newsandupdates/read/619 Page 12 of 21 Goods and Service Tax Updates Contributed by CA Jenil Shah
Advisory: Advisory on the functionalities available on the portal for the GTA taxpayers: The following Functionalities are made available on the portal for the GTA Taxpayers. 1. Filing of Online Declaration in Annexure V and Annexure VI for the existing GTA Taxpayers 2. Filing of Online Declaration in Annexure V for the Newly registered GTA Taxpayers 3. Uploading manually filed Annexure V Form for the FY 2023-24 on the portal Read More: https://www.gst.gov.in/newsandupdates/read/620 Page 13 of 21
ITAT held Section 40A(3) disallowance not valid when cash payment made due to freezing of bank account of Govt. Department. Shashikala Ram Kumar vs. ASST CIT [2023] 156 taxmann.com 204 (Hyderabad-Trib.) In a case involving a tours and travels business, the Assessing Officer (AO) disallowed cash payments exceeding Rs. 20,000 under section 40A(3). The assessee provided evidence of bank account attachment by governmental agencies, making cheques impractical. Despite this, both the AO and CIT(A) upheld the disallowance. The Hyderabad Tribunal ruled in favor of the assessee, emphasizing that section 40A(3) allows exceptions, and bank account freezing by a government agency is a valid reason. Quoting a precedent, it affirmed that no disallowance should occur in such circumstances under rule 6DD of the Income Tax Rules. High court held Application for NIL TDS certificate cannot rejected just because of non-filling of Income Tax Returns for past four years. Bitkuber Investments Private Limited v. DCIT [2023] 156 taxmann.com 384 (Karnataka) In a case where an assessee applied for a nil tax deduction certificate under section 197, the Assessing Officer (AO) rejected it, citing non-filing of returns for the past four years among other reasons. The Karnataka High Court ruled in favor of the assessee, emphasizing that Rule 28AA(1) and (2) of the Income Tax Rules don't make filing returns for the previous four years or payment of tax a mandatory condition for applying under Section 197. It highlighted that the focus should be on estimated liability and income, not retrospective tax compliance. Tribunal directed AO to allow index cost of acquisition even though assessee forgot to claim in Return of Income. Alok Ghosh vs. Income Tax Officer [2023] 156 taxmann.com 549 (Kolkata – Trib) In a case where the Assessing Officer (AO) disallowed the assessee's deduction claim under section 54 for the sale of two properties, citing failure to file a revised return, the Tribunal ruled in favor of the assessee. The Tribunal emphasized that the assessee acknowledged the mistake and requested the matter to be remitted back to the AO. The Tribunal directed the AO to reconsider the claim, providing the assessee with a reasonable opportunity to substantiate it. The appeal was thus allowed in favor of the assessee. Page 14 of 21 Income Tax Judgments Contributed by CA Ketul Soni
High Court held payment made for processing of milk into milk products is subject to TDS U/s 194C and not U/s 194J. PCIT v. Maahi Milk Producer Co. Ltd. [2023] 156 taxmann.com 217 (Gujarat) The assessee, in the business of selling milk, paid a dairy for processing raw milk. The assessee, deducting tax at 2% under section 194C, considered it a contract payment. The AO demanded 10% TDS under section 194J, leading to a proportionate of 8% disallowance under section 40(a)(ia). The Tribunal, and later the Gujarat High Court, ruled in favor of the assessee. They held that the payments were for job work, not technical services, as the dairy didn't provide technological expertise. The original deductions under section 194C were deemed appropriate. ITAT allow interest expense on loan taken even though assessee not shown interest income on loan given out of loan taken as recovery of interest along with principal was not certain. DCIT v. M/s Safari Biotech Pvt. Ltd. [2023] 156 taxmann.com 571 (Ahmedabad – ITAT) In a case where the Assessing Officer (AO) disallowed interest expenses on unsecured loan taken by assessee under Section 36(1)(iii) due to the assessee's decision not to charge interest income following Accounting Standard-9 (AS-9) as recovery of interest on loans given by the assessee had become virtually impossible since parties were not paying back the principal amount for a very long time, the Tribunal ruled in favor of the assessee. The Tribunal emphasized that AS-9 prescribes revenue recognition when it is measurable and collectible with certainty. The assessee's decision was in line with the Mercantile System of Accounting, and since revenue collection was uncertain, no disallowance was warranted under Section 36(1)(iii). The appeal filed by the revenue was dismissed. High Court held draft order sent to email id of Branch and not the designated email id is not justified. Indian Bank vs. Deputy Commissioner of Income Tax [2023] 156 taxmann.com 264 (Madras) The petitioner, an income tax assessee, challenged an assessment order dated 25-9-2021 for the assessment year 2019-2020. The petitioner claimed that notices and the draft assessment order were sent to incorrect email IDs, not the designated ones. The designated email was [email protected]. Despite responses to the correct email, subsequent notices were sent to different IDs. The court found a violation of natural justice, set aside the order, and remitted the case back to the ITO to pass a fresh order, emphasizing proper notice. The court noted glitches in the faceless assessment system and stressed the need for communication with the correct office of the assessee. Page 15 of 21
Tribunal held purchase of gold/ silver by Trust for making ornaments for idols cannot be held as invalid investment U/s 11(5). ACIT (Exemption) vs. Shri Mahudi Madhupuri Jain Shwetamber Murtipujak Trust [2023] 156 taxmann.com 342 (Ahmedabad-Trib.) The case involves a religious trust approved under section 12A that faced disallowance of its claim of exemption under section 11 due to the assumption that it had made an investment in gold and silver, violating the provisions of section 11(5)(b). The Assessing Officer (AO) disallowed the claim, but the Commissioner of Income Tax (Appeals) (CIT(A)) ruled in favor of the trust.The CIT(A) observed that the trust had purchased gold and silver for crafting ornaments for temple idols. The Tribunal upheld the CIT(A)'s decision, emphasizing that the trust didn't buy gold and silver as investments but for crafting purposes. It also invoked the principle of res judicata, noting that scrutiny assessments for prior years hadn't resulted in such disallowances. ITAT held net profit declared by assessee to be accepted by AO if AO didn’t dispute audited financial statement. Gopla Jaiswal vs. Income Tax Officer [2023] 156 taxmann.com 398 (Kolkata-Trib) This is a case where the Assessing Officer estimated the net profit at 8% of gross receipts under section 44AD of the Income Tax Act, 1961, even though the turnover of the assessee was Rs. 14.28 crore, which exceeds the limit of Rs. 2 crore specified under section 44AD. The Assessing Officer made this estimation based on the assessee's inadvertent tick in the column for 'no account case' in the income tax return. The Commissioner (Appeals) upheld this action, disregarding the audited financial statement of the assessee. Upon appeal to the Tribunal, it was observed that the turnover of the assessee was above Rs. 2 crore, and therefore, the provisions of section 44AD could not be applied. The Tribunal also noted that the audited financial statement, which showed a net profit rate of 2.5%, was available to the Assessing Officer. The Tribunal criticized the Assessing Officer for not examining the tax audit report and directly resorting to the provisions of section 44AD. The Tribunal concluded that the estimation of net profit at 8% was unjustified, and the book results declared by the assessee showing a net profit rate of 2.5% should be accepted. Consequently, the addition made by the Assessing Officer towards estimating profits over and above the income declared by the assessee was deleted. Page 16 of 21
No recovery proceedings can be initiated without complying to provision of rule 88C in case of difference in tax on account of GSTR-1 and GSTR-3B. M/s. Caterpillar India Pvt. Ltd. v. The Assistant Commissioner Chennai [WP No. 28092 of 2023 - Madras HC] The petitioner (the applicant) had challenged the notice issued by the department basis the provisions of S. 79 stating that the procedural safeguard prescribed vide Rule 88C of CGST Rule has not been complied before issuing the notice. The court also took reliance of instruction 01/2022 dated 7 January 2022 where in it has been provided that the officer is bound to seek clarification and reason of such mis-match. More specific, after issuance of notification 26/2022 - GST dated 26 December 2022, the officer is bound to follow the procedure of issuance of GSTR1B and only thereafter, GSTR-1 may be issued. The high court squashed the notice and instructed the department to initiate the proceeding a fresh in reference to rule 88C and accordingly proceed. GST council does not have power to look in to classification of goods Parle Agro Pvt. Ltd [W.P 16608 and 16613 of 2020 - Madras HC] Emphasizing on the role of GST Council, Hon’ble Madras HC referred to minutes of GST council meeting held on 22nd December 2018 where in the council took decision to classify the flavoured milk under HS code 2202. In a detailed judgement pronounced by the Court, the petitioner submitted that GST council can only recommend the rate but cannot determine the classification of goods or service. The petitioner further stated that flavoured milk is a dairy product. Further the Food and Safety and Standards Act, 2006, (i.e, FSS Act, 2006) and Food Safety and Standards (Food Product Standards and Food Additives) Regulation 2011 also considers the flavoured milk as dairy product. The court also referred to Para 171 of the judgement of SC in the matter of Mohit Mineral wherein it has emphasised that GST council can recommend the classification. Further at para 123 of the judgement, The court has observed that ‘The Central Government can either tweak the rate on the recommendation of the 3rd respondent GST Council or by itself’.The Court held that the classification is ought to be 0402 and not under 2202. Order passed without considering the reply results in non-speaking order; the matter remanded back for fresh consideration of reply and to pass a detailed speaking order Chennai Silks Vs Assistant Commissioner (ST) (FAC) (Madras High Court) [WP No 29095 of 2023] The officer had issued DRC-01A upon the observing alleged defect mainly concerned with the reconciliation between books and returns as well as ITC verification with GSTR-2A. The Petitioner has filed detailed reply to DRC-01A and not being satisfied, the officer had issued DRC-01 - the show cause notice. The hearing was granted upon which the statement of replies were recorded by the respondent. However, upon issuance of final order in Form DRC-07, the replies were not considered; being aggrieved, the petitioner filed the writ petition before the Court. The court stated that the respondent is bound to mention the reason of rejection / objection to replies submitted by the petitioner and accordingly remanded back for passing a fresh order after considering the reply filed by the petitioner. Page 17 of 21 GST Judgments Contributed by CA Jigar Parikh
Penalty payment is required even when tax is paid along with interest within 30 days of issuance of notice Global Plasto Wares v. Assistant State Tax Officer [WP (C) No. 33787 of 2023 - Kerala HC] In the instance case, the petitioner has paid the demand proposed in the notice with in 30 days of the issuance of notice related to non-payment of tax. The said tax is paid together with applicable interest. The petitioner challenged the Order confirming the demand of penalty. The court observed that the respondent has rightly levied the penalty on account of the failure of petitioner to deposit the tax dues with in 30 days from the due date of payment of such tax. Further, the respondent also pointed that S. 73(11) is non-obstanttive and has over riding effect to this extent. Thus, when tax is not paid within 30 days from the due date of payment, the penalty demanded is valid. Roof top Solar is not an immovable property but a plant and machinery Unique Welding Products Pvt Ltd [TS-04-AAR(GUJ)-2024-GST] The AAR held the finding that roof top solar plant is not permanently fastened to building and hence does not hit by provisions of S. 17(5)(d) of CGST Act, 2017. While pronouncing this, the authority took in to consideration the agreement between MGVCL and the Applicant. Further, the applicant has also stated that through generation of electricity which is used for self consumption only is nothing but a business well with in the meaning provided under the provision of GST law; and in this regard, the entire ITC is regarded as used in the course or furtherance of their final supply of product. Thus, the entire ITC of roof top plant is attributable to plant and machinery and hence the entire ITC is eligible to them. The accounting treatment given by the applicant has also been taken in to consideration by the authority in this regard The readers are requested to kindly please read the judgement in details; as the above are only summary shared for knowledge reference purpose. Page 18 of 21
Real Estate (Regulation and Development) Act, 2016 (RERA,2016) Case law study Mrs Sushant Karkera V/s Conoor Builders Pvt Ltd This article attempts to discuss the liability of the land owner being a co-promoter to pay the interest for delay in possession of flat by promoter. Issues: Whether it is compulsory to make co-promoter as a party to the complaint? Whether the complaint is maintainable due to non-joinder of necessary party as a respondent? Whether land owner being a co-promoter is liable to pay interest for delay possession? Provisions: Section 2(zk) Promoter means: (i) a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees; or (ii) a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures thereon; or (iii) any development authority or any other public body in respect of allottees of— (a) buildings or apartments, as the case may be, constructed by such authority or body on lands owned by them or placed at their disposal by the Government; or (b) plots owned by such authority or body or placed at their disposal by the Government, for the purpose of selling all or some of the apartments or plots; or (iv) an apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments or buildings for its Members or in respect of the allottees of such apartments or buildings; or (v) any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale; or (vi) such other person who constructs any building or apartment for sale to the general public. Explanation.—For the purposes of this clause, where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder; Page 19 of 21 RERA Updates / Judgments Contributed by Adv (CA) Mahadev Birla
Section 18: Return of amount and Compensation 18(1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building, — (a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or (b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed. Fact of the Case: The complainant booked the flat no 73 in the project known as “The Gateway” in Andheri (W) Mumbai for a consideration of Rs 2,18,89,000/-. As per registered agreement to sale dated 26.11.2014, possession of flat was to be given on or before 31.12.2016. Due to failure on part of promoter to deliver the possession on time, the allottee sent a legal notice to the promoter. the promoter in his reply stated that flat could not be delivered on time as the land owner has filed litigation. The promoter raised the objection with respect to maintainability of the complaint on the ground of non-joinder of land owner as a party in this case, further it is stated that development permission is also received in the name of land owner so land owner should make the party in this case. However, the allottee claimed that he is entitled for interest from the promoter as there is no privity of contract between the allottee and landowner and entire money was paid to promoter. The doctrine of privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such. In this case the contract for sale or purchase was made between the allottee and promoter therefore land owner is not liable to pay interest and therefore it is not necessary to make the landowner as a party in the case. Further, allottee has placed the reliance on the judgement of apex court in the matter of Vaidehi Akash Housing Pvt Ltd and Goregaon Pearl CHS and stated that the owner is not liable to pay interest for the delayed possession since he has no privity of contract with the owner. MahaRERA Order: MahaRERA Authority has ordered the promoter to pay the interest to the allottee for for every month till the date of occupancy certificate on the actual amount paid by the complainant at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under the provisions of section 18 of The Real Estate (Regulation and Development) Act, 2016 and the Rules made there under . Page 20 of 21
While deciding the present matter MahaRERA Authority has considered the following points:- a. There is no privity of contract between the complainant and the said owner as it is not party to the registered agreement for sale dated 26-11-2014 executed between the complainant and the respondent. Moreover, admittedly, the complainant has paid entire money to the respondent. Hence, by accepting the same, the respondent cannot shift its statutory liability being promoter of the project to the owner. b. As a promoter, having sound knowledge in the real estate sector, the respondent was fully aware of the market risks when he launched the project and signed the agreement with the home buyers. Moreover, if the owner was delaying the permissions, in that event they could have approached the competent forums including the court of law for expediting the required permissions for completion of this project. However, no such step seems to have been taken by the respondent. c. If the project was getting delayed due to the aforesaid reasons cited by the respondent, then the respondent should have informed the same to the complainant and should have revised the date of possession in the agreement at that relevant time by executing the rectification deed with the complainant or should have offered refund of the amount to the complainant, if the said delay was not acceptable to him. d. Agreement was executed between the parties when the provision of MOFA were in force. As per the MOFA, the promoters were entitled to seek an extension of 6 months for any force majeure reasons. Likewise, in this case even if the justifications cited by the respondent is accepted, it is entitled to seek only 6 months extension as per the provisions of MOFA in the date of possession mentioned in the agreement for sale from 31-12-2016 till 30-06-2017. Conclusion: When there is no privity of contract between the land owner and the allottee, then land owner is not liable to pay the interest for delay possession of flat. Adv (CA) Mahadev Birla Page 21 of 21