AMIT BAJAJ ADVOCATE

There is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This  was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference

Section 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act.

The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan
Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1

Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels.

Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link:
PROCEDURE FOR DOWNLOADING FORM 16A ONLINE

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Now TDS certificate in Form No 16A will be downloaded and generated  online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns.

According to section 68 of Income Tax Act 1961, where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source of the same or the explanation offered by him is not satisfactory in the opinion of A.O., the sum so credited may be charged to income tax as the income of the assessee of that previous year. An attempt here is made to understand the provisions of section 68 of Income Tax Act,1961 herebelow:

 

There must exist books of accounts before making addition u/s 68: The addition under u/s 68 can be made on the basis of unexplained cash credit found in the books of the asseessee, hence existence of books of an assessee is a condition precedent before an addition u/s 68 can be made.

 

Commissioner of Income Tax, Karnal Versus Deepak Kumar

Crux of the Judgment: Bonafide mistake or belief is more or less a question of fact. No litigant should suffer on account of the mistake committed by the councel because the advise tendered by the councel is accepted by the litigant, which is based on bonafide belief of being correct.

State of Punjab & another.Vs.M/s Morinda Cooperative Sugar Mills Ltd.   

Crux of the Judgment: Charging provisions under the Punjab VAT act provides for levy of VAT on turnover. If the assessee had received any further amount in addition to sale proceeds(Subsidy by State in this case), which is not part of the sale price, such amount could not be added to the turnover, consequently no VAT can be levied on the subsidy given by State.

The Union government has allowed the states to impose tax on sugar and textiles for the first time in 54 years.

I have found the following Judgment of Mumbai ITAT in the case namely Tivoli Investment & Trading Co. vs ACIT as a good one on determination of Annual Rental value u/s 23(1)(a) of Income Tax Act, 1961. As we know for determining annual value of a house property standard rent or municipal value, actual rent, Fair market rent all factors have to be considered. Where rent is reduced due to high security deposit by the tenant, then AO is not bound by standard rent or the municipal value.