Tax INFORM- November 2024

The forty-sixth 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:

• Notice under Section 274 must specifically include the grounds for initiation of penalty proceedings.
• Claim against TDS in view of Canon Law is untenable.
• Assessee’s right to a personal hearing cannot be denied if explicitly requested, regardless of SOP.
• Financial support intended as viability gap funding cannot be interpreted as payment for “work” under Section 194C.
• Advance towards AMC is revenue in the hands of the taxpayer at the time of receipt and is taxable in the year of collection.

Notifications/ Circulars:

• Circular No. 16/2024: Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961, in filing of Form No. 9A110/10B/I0BB.
• Circular No. 15/2024: Order under Section 119(1) of the IT Act, 1961, fixing the monetary limits of the income-tax authorities in respect of reduction or waiver of interest paid or payable under Section 220(2) of the IT Act.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• Central and State tax officers are authorized to initiate ‘Intelligence-based enforcement’ actions across the entire taxpayer base.
• System-generated provisional acknowledgment of the appeal serves as evidence of the pre-deposit payment.
• Royalty is not a tax, and GST can be levied on royalty paid by the mineral concessioner to the state.
• Petitioner to claim refund by making application before authority in respect of tax paid by IRP.
• Payment of a pre-deposit can be made by utilizing the Electronic Credit Ledger.

Notifications/ Circulars:

• Circular No. 238/32/2024-GST: Clarification of various doubts related to Section 128A of the CGST Act, 2017.
• Circular No. 237/31/2024-GST: Clarifying the issues regarding implementation of provisions of sub-section (5) and sub-section (6) in section 16 of the CGST Act, 2017.