Quvisor’s refresher on Legal updates in India: September 04, 2021

GST:

HC denied bail to petitioner for receiving bogus refund of tax which was actually never received by revenue 
GST : Where petitioner was director of firms which were procuring bills from firms based at Delhi who had no purchases and tax which was not deposited for such transaction was utilized by firms for not only availing ITCs but for getting refunds by showing sales to export units, petitioner could not be granted bail on his arrest for offence under section 132.

CBIC has further extended late fees amnesty scheme & timelines for revocation of cancellation of registration
CBIC has further extended the last date to avail the benefit of amnesty scheme to 30.11.2021. Further, the facility to file the Form GSTR-3B, GSTR-1/IFF through EVC for Companies has been extended to 31.10.2021. The last date for revocation of cancellation of registration has also been extended to 30.09.2021 where due date for filing the application for revocation lies between the period 01.03.2020 and 31.08.2021.

Companies can file GSTR-3B and GSTR-1 via EVC instead of DSC till 31st October: Notification
GST : Where petitioner was director of firms which were procuring bills from firms based at Delhi who had no purchases and tax which was not deposited for such transaction was utilized by firms for not only availing ITCs but for getting refunds by showing sales to export units, petitioner could not be granted bail on his arrest for offence under section 132

Income tax:

CBDT extends last date for making payment without additional charge under ‘Vivad se Vishwas’ by one month
The CBDT, considering the difficulties being faced in issuing and amending Form no 3, has decided to extend the last date of payment of the amount (without any additional amount) under ‘Vivad se Vishwas’ from 31-08-21 to 30-09-21. However, the last date for making payment (with additional amount) hasn’t been changed. It would be same as notified earlier, i.e., 31-10-21.

AO can challenge method adopted for valuation of shares only if it wasn’t a recognized method as per Rule 11UA: ITAT
INCOME TAX : Method of valuation of shares adopted by assessee could be challenged by Assessing Officer only if it was not a recognized method of valuation as per rule 11UA(2),

‘iPad’ may discharge some computer functions but it isn’t a computer; not eligible for higher dep.: ITAT
INCOME TAX: Depreciation at lower rate is applicable on iPad as it is not a computer. Predominate purpose of iPad is a communication and not a computing device as its main features are email, whatsapp, Facetime calls, calls, music, films etc. Though iPad may discharge some functions of computers, it is not a substitution of computer/laptop, which have various utilities/functions, though some functions may be common with iPad. In common parlance also

Corporate Laws:

Provisions of Limitation Act is applicable to arbitration proceedings initiated under section 18(3) MSMED Act: SC 
CL/ARBITRATION ACT: By virtue of section 43 of Arbitration & Conciliation Act, 1996 (1996 Act), Limitation Act, 1963 is applicable to arbitration proceedings under section 18(3) of Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and MSMED Act, 2006 being a special statute, will have an overriding effect vis-a-vis 1996 Act, which is a general Act.

SEBI automates continual disclosures under PIT regulations; Physical disclosures to continue in certain cases 
SEBI, in its Board meeting dated June 25, 2020, discussed and approved necessary amendments in SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’) that were notified vide gazette notification dated July 17, 2020.

CBDT extends last date for making payment without additional charge under ‘Vivad se Vishwas’ by one month 
The CBDT, considering the difficulties being faced in issuing and amending Form no 3, has decided to extend the last date of payment of the amount (without any additional amount) under ‘Vivad se Vishwas’ from 31-08-21 to 30-09-21. However, the last date for making payment (with additional amount) hasn’t been changed. It would be same as notified earlier, i.e., 31-10-21.

Insolvency & Bankruptcy Code:

Insolvency Resolution Process admitted as corporate debtor defaulted in paying outgoing employee: NCLT 
IBC: Where operational creditor, an employee of corporate debtor, submitted his resignation but corporate debtor had not disbursed his salary and settlement amount, CIR petition was to be admitted

Limitation Act, 1963 applicable to applications against personal guarantors under IBC, 2016 
With respect to Part I of the Code, sections 7, 9 and 10 of the Code plainly ordain that an application can be filed by a financial creditor against a corporate debtor. Such a corporate debtor can either be a corporate person, who had borrowed money or a corporate person, who gives guarantee regarding repayment of money borrowed by another corporate person. In other words, the Code cannot apply in respect of “debts” of an entity who is not a “corporate person”.

IP to undergo 50 hours pre-registration education course as his actions were not accordance with Code: IBBI 
IBC: Where IBBI issued show cause notice to ‘P’, Insolvency Professional, in respect of his role as IRP while conducting corporate insolvency resolution process (CIRP) in matter of corporate debtors alleging contravention of section 208, Disciplinary Committee directed ‘P’ not to seek or accept any process or assignment or render any services under Code for stipulated period

 

 

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