Tax INFORM- April 2023

The twenty eighth 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:

• Growing White Button Mushrooms in a temperature-controlled facility constitutes ‘agricultural activity’ says ITAT.
• ITAT held that gift of a house to the Assesses’s father before the sale of land is camouflage, for claiming exemption u/s 54F.
• HC upholds the ITAT order for deletion of addition under Section 68 to prove the shareholder’s creditworthiness.

Circulars and Notifications:

• CBDT notifies Cost Inflation Index for FY 2023-24 as 348
• Exemption granted to NRI taxpayers without PAN from electronic filing of Form 10F extended

Indirect Tax – 

Goods & Services Tax

Case Laws:

• AAR held that ‘residential dwellings’ used as guest houses for company employees are liable for tax on a reverse charge basis.
• Orissa High Court allowed the assessee to claim the input tax credit by rectifying the return after the due date for submission had expired.
• AAR held that LLP is liable to pay tax on security services under forward charge and not on a reverse charge basis.