Tax INFORM- January 2023

The twenty fifth 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:

• Madras High Court held that Section 92CA is a machinery provision and Section 153 deals exclusively with time limitation.
• Delhi High Court quashed the reassessment proceedings due to Revenue’s non-application of mind.
• ITAT held that License Fee is taxable as per revenue recognition policy, over agreement tenure.
• ITAT held that the Assessee does not have PE in India considering that no equipment/server was installed in India and there was no dependent agent in India.
• ITAT held that business income is not taxable as undisclosed income under Section 69 merely because it was declared during Survey proceedings.

Circulars and Notifications:

• Circular No. 1 of 2023 [F. NO. 225/49/2021-ITA-II], dated 06/01/2023
• Notification No. 1 of 2023, F No. DGIT(S)/ADG(S)-2/Reporting Portal/2021/180, dated 05/01/2023

Indirect Tax – 

Goods & Services Tax

Case Laws:

• Karnataka High Court allows rectification of Form GSTR 1 considering that the mismatch in GSTIN was an unintentional error.
• Delhi High Court held that mere non-payment to suppliers cannot restrict credit to the recipient and directed the Revenue to unblock the E-credit ledger.
• AAAR held that administration of COVID-19 vaccine was taxable at the rate of 5%.
• AAR held that GST is payable on interest amount receivable on annual installments.
• AAR held that health care service does not include door-step medical monitoring and logistics service.