Tax INFORM- October 2024

The forty-fifth 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:

• The assessing officer lacks authority to consider a time barred revised return of income.
• Long-term capital gains were disallowed as financial statements failed to correspond with business activities.
• Banks acquiring securities as part of their banking business classified as stock-in-trade and not investments.
• Re-assessment proceedings time barred under the older regime quashed.
• Employees not liable for deposit of TDS on failure of employer.
• Correction of bona fide mistakes permitted under Section 264 of the Income Tax Act, 1961.

Notifications/ Circulars:

• Circular No. 10/2024: Extension of timelines for filing of various reports of audit for the Assessment Year 2024-25.
• Circular No. 11/2024: Order authorizing income-tax authorities to admit an application or claim for refund and carry forward of loss and set off thereof under Section 119(2)(b) of the Income-tax Act, 1961.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Provisional attachment of properties is not permitted beyond a period of one year.
• Fuel cost borne by service recipient not to be included in the transaction value of GTA services for GST.
• Referring to Circular No. 221/15/2024, the time of supply for annuity payments is held to be earlier than the invoice issuance date or payment receipt date.
• Constitutional validity of clauses (c) and (d) of Section 17(5) of the CGST Act upheld.

Notifications/ Circulars:

• Clarifications regarding the applicability of GST on certain services.
• Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 54th meeting held on 9th September 2024 at New Delhi.