Tax INFORM- April 2024

The fortieth issue of our monthly tax newsletter – Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax – 

Domestic Tax Rulings:

• Delhi HC holds that minor linguistic variation between reasons conveyed to Assessee and reasons recorded by AO cannot invalidate proceedings.
• Incriminating material for specific AY does not warrant proceedings in all AYs, confirms Delhi HC.
• Bombay HC sets aside order under Section 148A(d) on account of difference in quantum of income escaping assessment.
• Valuation method under angel tax provision is solely the Assessee’s choice: Delhi HC.
• Delhi HC upholds Section 11 exemption to NASSCOM based on the principle of mutuality.

Notifications/ Circulars:

• CBDT facilitates taxpayers to file commonly used ITRs from April 1.
• CBDT notifies forms for verification and acknowledgment of ITRs for AY 24–25.
• Finance Ministry invokes MFN clause, notifies lower Royalty & FTS Tax Rate under India-Spain DTAA.

Indirect Tax – 

Goods & Services Tax

Case Laws:

• Although SCN reply filed subsequent to issuance of assessment order, Assessee to be given opportunity to explain alleged disparity: Madras HC.
• Delhi HC holds that GSTIN cannot be cancelled retrospectively ‘merely’ because of non-filing of GST returns.
• West Bengal AAAR confirms that contributions to sinking fund are taxable at the time of receipt as per Section 13(2) of the GST Act.

Notifications/ Circulars:

• Technical glitches in portal: ‘Nil’ interest for GSTR-3B filing delays.
• CBIC issues investigation guidelines to improve the ease of doing business.