Reference: Central Board of Indirect Taxes and Customs
Update:
HC rejected bail application of assessee involved in bogus trading & evaded GST of more than Rs. 100 crores
Pankaj Agrawal v. Union of India – [2019] 108 taxmann.com 191 (Chhattisgarh)
A search was conducted at the assessee’s residential premises where along with books of account, fake invoices were also recovered. It was alleged that the assessee had created bogus entity and conducted circular trading through it, of more than Rs. 500 crores depriving government of more than Rs. 100 crore GST by availing inadmissible ITC.
The assessee was arrested by the Competent Authority for such offence committed under GST. The assessee had filed an application before High Court of Chhattisgarh for grant of regular bail.
The Honorable Court, after considering the sufficiency of the evidence collected by the revenue authorities for an offence of bogus trading and involvement of huge amount of money, rejected the bail application of the assessee.
Reference: Central Board of Direct Taxes
Update:
Violation of provision of sec. 13 couldn\’t be a ground to cancel registration of trust:
Lilavati Kirtilal Mehta Medical Trust v. CIT – [2019] 108 taxmann.com 272 (Mumbai – Trib.)
The assesse is a trust which was formed with the object of running hospital and research centre. It was claiming sections 11 to 13 exemption since its registration. Subsequently, the Commissioner took a view that the manner of investment of funds was in violation of provisions of section 13. He passed an order under section 12AA(3) cancelling registration of the trust. Assessee filed appeal against the cancellation order to the ITAT.
The Tribubnal held that the violation of section 13 empowers an assessing authority to forfeit section 11 and 12 exemptions only. For cancellation of registration under section 12AA(3) the Commissioner must be satisfied that the activities of the trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be.
A Statutory Authority is required to operate within the confines of the applicable statutory rule. Thus, the Commissioner is required to act within the scope and ambit of section 12AA(3) while invoking his power to cancel the registration. Therefore, in view of legal position, impugned order cancelling registration granted to assessee-trust was to be set aside.
Update:
Supreme Court stays re-assessment proceedings upon assessee’s challenge to re-opening initiation based on investigation report:
SC issues notice to Revenue pursuant to assessee’s SLP challenging Delhi HC order upholding re-assessment initiation (beyond 4 years period) citing the investigation wing report; HC had observed that upon reading the reasons to believe as a whole the \’live link\’ between the material in the form of the investigation report and the formation of belief that income that has escaped assessment is prima facie discernable.
However, HC had kept open all contentions on jurisdiction as well as on merits (other than change of opinion) to be raised by the parties; Upon hearing the assessee, the SC directs that There shall be stay of further AO proceedings in the meantime.
Reference: Reserve Bank of India
Update:
Extension of direction period- The Karad Janata Sahakari Bank Ltd., Karad, Maharashtra:
The Karad Janata Sahakari Bank Ltd., Karad was placed under directions vide directive DCBS.CO.BSD-1/D-4/12.22.126/2017-18 dated November 7, 2017 from the close of business on November 9, 2017 for a period of six months. The validity of the above directions were extended from time to time last being vide Directive DCBR.CO.AID/No.D-36/12.22.126/2018-19 dated March 07, 2019 up to September 09, 2019. The said directions shall continue to apply to the bank for a further period of six months from September 10, 2019 to March 9, 2020.
Implication:
The Karad Janata Sahakari Bank Ltd., Karad shall follow the directives issued by the RBI for the further period of 6 months
Update:
Master Direction- Disbursement of Government Pension by Agency Banks:
RBI has revised and updated the Master Circular which consolidates important instructions on the subject “Disbursement of Government Pension by Agency Banks” issued by the Reserve Bank of India till June 30, 2019.
Update:
RBI cracks the whip on office account misuse:
Amid a rise in frauds, the Reserve Bank of India has alerted all lenders of instances where ‘intermediary’ or transitory accounts in banks have been misused to hide bad loans or mask money laundering.
The banking regulator has directed banks to carry out internal review of such unauthorised transactions and submit their findings by October.
Update:
RBI panel suggests new intermediary under National Finance Housing:
A Reserve Bank of India panel, which was tasked with reviewing the existing state of housing finance securitization, and suggest measures to make the market more attractive, has recommended that an intermediary be set up under the National Housing Bank, wherein the government will have a 51% ownership.
The six-member committee, which was set up on 29 May under the chairmanship of Harsh Vardhan, senior advisor, Bain and Co., has submitted its report to RBI governor Shaktikanta Das, the central bank said on 9th September, 2019.
Mortgage securitization involves pooling of loans and selling them to a special purpose vehicle (SPV), which then issues securities, called pass-through certificates (PTCs). The PTCs will be backed by the loan pool.
Implication:
The intermediary could operate either directly through the NHB, the Indian Mortgage Guarantee Corp., or the RBI could set up a new organization.
Reference: Insurance Regulatory and Development Authority of India
Update:
Response to Pre-Bid queries:
The Pre-Bid Queries and their replies relating to “Expression of interest for Transition of Business Analytics Project” are published by IRDAI.
READ MORE to read the Queries
Implication:
This will help the stakeholder clarify any doubt relating to Expression of interest for Transition of Business Analytics Project.
