INCOME TAX
REGULATORY UPDATES
- Order Under section 119 Circular 5/2021
Order under section 119 of the Income-tax Act, 1961 Section 44AB of the Income-tax Act, 1961 (‘the Act’) read with rule 6G of the Income-tax Rules, 1962 (‘the Rules’) requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20th July, 2018 with effect from 20th August, 2018. However, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in abeyance till 31st March, 2019 vide Circular No. 6/2018 dated 17.08.2018, which was subsequently extended to 31st March, 2020 vide Circular No. 912019. Vide circular no. 10/2020 dated 24.04.2020, it was further extended to 31st March, 2021. In view of the prevailing situation due to COVID-19 pandemic across the country, it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till 31st March, 2022.
- Circular 2/2021
Residential status of certain individuals’ relaxation due to COVID-19.
For more details see Circular 2/2021 dated 3/3/2021.
RECENT JUDICIAL RULINGS ON INCOME TAX
1. The Supreme Court ruled that payments made by an Indian resident to a foreign company for import of computer software for sale in India will not be assessed as “royalty”. Engineering Analysis Centre of Excellence Private Limited Vs. CIT & Anr. (Supreme Court of India)
2. ITAT directs matter to AO to examine afresh Rate of Gross Profit declared on Unaccounted Turnover
3. Income Tax Appellate Tribunal (ITAT) Jaipur Bench in the case of the assessee, M/s Alokik Steels Pvt. Ltd
4. Lottery includes Gambling as an Element of Chance which requires no skill can’t attain the Status of Trade: Guwahati High Court
5. ITAT directs production of Documentary Evidence in Support of Medical Services provided to Poor and Rural Areas so as to avail exemption
6. The Income Tax Appellate Tribunal (ITAT), Allahabad bench directed the production of documentary evidence in support of medical services provided to the poor and the rural areas so as to avail exemption
7. Additions towards share capital in question would not ipso facto tantamount to alleged concealment of income: ITAT deletes penalty: The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench while deleting the penalty held that the Additions towards share capital in question would not be ipso facto tantamount to alleged concealment of income. In the case of M/s. Aagam Shares & Commodities Pvt. Ltd. earlier named KGMS Financial Services Pvt. Ltd. is engaged in the business of dealing in stock market and purchase and sale of shares.
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