June 2019 · Workshop on the New Benami Law and Prevention of Money Laundering Act Hotel West End,...

THE CTC NEWS | June 2019 www.ctconline.org

THE CTC NEWS | June 2019www.ctconline.org

FORTHCOMING EVENTS

SR. NO. DATE COMMITTEE PROGRAMME DESCRIPTION VENUE PG.

NO.

1 07-06-2019 Indirect Taxes IDT SC on Important Decisions and Advance Rulings relevant for GST Audit

AV Room, 4th Floor, Jai Hind College, Churchgate, Mumbai-400 020

12

2 08-06-2019 Accounting & Auditing and Corporate Connect

Study Course on Valuation Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

4

3 12-06-2019 Bengaluru Study Group

Bengaluru Study Group Meeting FKCCI, 3rd Floor, Hall No. 4, K. G. Road, Bengaluru

13

4 13-06-2019 Study Circle & Study Group

SG on Recent Judgments under Direct Taxes Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

12

5 13-06-2019 to 15-06-2019

Student Student Orientation Course Juhu Jagruti Hall, Mitibhai College, JVPD Scheme, Vile Parle West, Mumbai-400 056

5

6 14-06-2019 Direct Taxes Half Day Seminar on Recent Controversies and Issues Under Income-tax Act

Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

5

7 15-06-2019 International Taxation Seminar on TDS u/s. 195 on Foreign Remittances & Expatriate Taxation including Procedural Aspects

Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020

8

8 15-06-2019 Commercial & Allied Laws and Corporate Connect

Seminar on Issues related to IBC and Resolution of Distressed Assets

Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai-400 020

11

9 15-06-2019 Pune Study Group Full Day Seminar on Contentious Issues in Real Estate Related Transactions

ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016

13

10 18-06-2019 Membership &

Public Relations

Lecture Meeting on “Destin(y)ation of Life” Choosing the Path To Success


11

11 20-06-2019 to 23-06-2019

International Taxation 13th Residential Conference on International Taxation, 2019

The Grand Bhagwati, Magdalla Circle,

Dumas Road, Surat-395007, Gujarat

6-7

12 22-06-2019 Study Circle &

Study Group

SC on Important Issues on ICDS Banquet Hall, Ground Floor, Dadar Club, Lane No. 3, Lokmanya Tilak Colony, Near BAPS Shri Swami Narayan Mandir, Dadar East, Mumbai-400014

12

13 28-06-2019 Direct Taxes Half Day Workshop on Return Filing Provisions under the Income-tax Act

A.V. Room, 4th Floor, Jai Hind College, Churchgate, Mumbai-400 020

9

14 29-06-2019 Membership &

Public Relations

Full Day Seminar on Direct Taxes at Nagpur Hotel Centre Point, 24, Central Bazar Road, Ramdaspeth, Nagpur-440010

9

15 29-06-2019 Commercial & Allied Laws and Direct Taxes

Workshop on the New Benami Law and Prevention of Money Laundering Act

Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020

10

16 04-07-2019 — Notice of 92nd Annual General Meeting Garware Club House, Wankhede Stadium, D Road, Churchgate, Mumbai-400 020

15

17 06-07-2019 Accounting and Auditing

Half Day Workshop on Amendments to SEBI Listing Regulations


13

18 10-08-2019 Student and Membership & Public Relations

5th CTC Football Cup Dr. Antonia Da Silva High School, S. K. Bole Road, Opp. Kabutarkhana, Dadar (W), Mumbai

14

19 — Membership & Public Relations

Japanese Language Conversation Course CTC Conference Room, 3 Rewa Chambers, Ground Floor, 31, New Marine Lines, Churchgate, Mumbai

12

20 — — Renewal Notice 2019-20 — 16

21 — — Unreported Decisions of Tribunal — 17-18

22 — — Unreported Decisions (Service Tax) — 18-19


ACCOUNTING AND AUDITING COMMITTEEChairman: Heneel Patel | Vice Chairman: Tejas Parikh Convenors: Arpita Desai, Deepak Shah | Advisor: Jayesh Gandhi

CORPORATE CONNECT COMMITTEE Chairman: Paras K. Savla | Vice Chairman: Jiger Saiya Convenors: Vitang Shah, Saumil Saparia Advisor: Sujal Shah

STUDY COURSE ON VALUATION Time : 9.30 a.m. to 6.30 p.m.Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate,

Mumbai-400 020

Day & Date: Saturday, 8th June, 2019

FEES: Registration up to 6th June, 2019

MEMBERS: ` 2,200/- + ` 396/- (18% GST) = ` 2,596/- NON-MEMBERS: ` 2,500/- + ` 450/- (18% GST) = ` 2,950/-

Registration after 6th June, 2019

MEMBERS: ` 2,500/- + ` 450/- (18% GST) = ` 2,950/- NON-MEMBERS ` 2,800/- + ` 504/- (18% GST) = ` 3,304/-

ABOUT THE PROGRAMME

There is an ever-increasing need for financial valuation services pertaining to ownership interests and assets in non-public companies and subsidiaries, divisions, or segments of public companies.

Several of the auditing firms provide valuation services. There are also analysts and appraisers who practice out of various types of organizations, including appraisal companies, valuation portals, and consulting firms. Valuations are also performed by investment bankers, usually

as part of a transaction. Owners and financial executives also participate in valuations of their companies or segments of their companies. This programme attempts to provide a sound understanding of financial Valuation for all users and providers of valuation services and to advance consensus views on some of the more troublesome aspects of Valuation science. The program also introduces the basics of business Valuation, various valuation methods and interpretation of the results of Valuation.

SR. NO. TOPICS SPEAKERS

1 Valuation – Overview, Approaches and Methodologies CA Ravishu Shah

2 Valuation Application: Valuation for Merger and Demerger, Small and Medium Enterprises, Investment EntitiesDistressed Asset ValuationStart-up Entities Valuation

CA Pinkesh Billimoria

3 ESOP Valuation – Black and Scholes, Binomial CA Devarajan Krishnan

4 Valuation of Intangibles CA Aseem Mankodi

5 Valuation Standards, Valuation Rules, Report writing CA Bhakti Shah


STUDENT ORIENTATION COURSETime : 4.30 p.m. to 8.00 p.m.Fees : Student ` 900/- + ` 162/- (18% GST) = ` 1,062/-

(Inclusive of Student Membership for one year)Venue : Juhu Jagruti Hall, Mitibhai College, JVPD Scheme,

Vile Parle West, Mumbai-400 056

Days & Dates: Thursday, 13th, Friday, 14th &

Saturday, 15th June, 2019

STUDENT COMMITTEEChairperson: Nishtha Pandya | Vice-Chairperson: Niyati Mankad Convenors: Sachin Maher, Pramita Rathi | Advisor: Ajay Singh

We are pleased to announce Student Orientation Workshop at Western Suburb of Mumbai. The workshop is uniquely designed to acquaint the students in some of the important aspects of article ship. This course would give students a sneak-peek into the nature

of work that they would be engaged in during articleship training.The Objective: To provide basic knowledge of all the day-to-day activities at office along with understanding of Subjects in practical manner.


1 Basics of Income Tax TDS/TCS and Return Filing. Filing of Form 15CA and 15CB CA Ashok Mehta

2 Basic Concepts of GST Law (including GST audit) CA Hemang Shah

3 Compliances under GST Law (Return filing & Audit Report) CA Sumit Jhunjhunwala

4 Soft Skill & Office Etiquettes for CA students CA Jatin Lodaya

5 Company Law - Statutory Audit CA N. Jayendran

6 Income Tax Return e-Filing & Rectification CA Kalpesh Katira

DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice-Chairmen: Dinesh Poddar, Abhitan Mehta Convenors: Viraj Mehta, Dharan Gandhi, Nimesh Chothani | Advisor: K. Gopal

HALF DAY SEMINAR ON RECENT CONTROVERSIES AND ISSUES UNDER INCOME TAX ACTTime : 4.00 p.m. to 8.00 p.m.Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-20

Day & Date: Friday, 14th June, 2019

The Income Tax Department stepped-up the efforts to tax illegitimate income. This Financial Year the Tax Department will scrutinizing the return filed pertaining to the previous year in which there was demonetization of high value currency notes. There is a need to refresh the amendments made relating to demonetization and also re-learn the applicability of Section 68 in

light of the recent Supreme Court ruling in the case of NRA Steel. Who should attend the programme?The programme would benefit the Tax Practitioners, Tax Lawyers, Chartered Accountants, Accounting staff and Article clerks pursuing CA or students pursuing law.


1 Implication of Demonetization on Income Tax Laws CA Mahendra Sanghvi

2 Section 68-Recent Controversies & Issues CA Reepal Tralshawala

MEMBERS NON-MEMBERS` 750/- + ` 135/- (18% GST) = ` 885/- ` 900/- + ` 162/- (18% GST) = ` 1,062/-

FEES


INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah | Vice-Chairman: Kartik Badiani | Advisor: Dilip J. Thakkar RRC Mentor: T. P. Ostwal, H. Padamchand Khincha | Conference Directors: Bhaumik Goda, Shreyas Shah

13TH RESIDENTIAL CONFERENCE ON INTERNATIONAL TAXATION, 2019 – The Grand Bhagwati, SuratVenue : The Grand Bhagwati, Magdalla Circle, Dumas Road,

Surat-395007, Gujarat

Days & Dates: Thursday, 20th June 2019 to

Sunday, 23rd June 2019

Dear Colleagues, The participants of Residential Conference on International Taxation have always shown great interest in fostering the exchange of knowledge in evolving landscape of international taxation. The objective of such an exchange is to delink participants from day to day work and spend quality time in developing skillset on topics which promises to be future of international taxation. In the 13th RRC we will focus on how BEPS and evolving law on international taxation impacts traditional ways of structuring transactions and ways of doing business. Additionally, development of laws on FEMA, PMLA, BMA continues to be steadfast. Special sessions are planned to discuss development on this arena. Following that goal, the 13th Residential Conference on International Taxation will be held on Thursday,

JUDICIAL CORNER SPEAKERSInaugural Address Hon’ble Justice Shri P. P. Bhatt – President ITAT, MumbaiPanel Discussion – International Taxation Panellist: Hon’ble Shri G. S. Pannu, Vice-President ITAT,

Mumbai, CA H. Padamchand Khincha, CA Karishma Phatarphekar Moderator: CA Anish Thacker

BEPS and Value Neutrality of Judicial Process Hon’ble Shri Pramod Kumar, Vice-President ITAT, AhmedabadGROUP DISCUSSION PAPERS INCLUDING CASE STUDIES SPEAKERSStructuring of Outbound Investments – Post BEPS Scenario CA Gautam DoshiPermanent Establishment – Past, Present and Future CA H. Padamchand KhinchaKey Transfer Pricing Risks – BEPS Impact CA Sanjay ToliaPAPERS FOR PRESENTATION SPEAKERSAdvance Pricing Arrangements–Practical Aspects and Mock APA Shri Sanjeev Sharma, IRS & CA P. V. SrinivasanPrevention of Money Laundering Act – Recent Developments and Experience Dr. Dilip K. ShethGuest Speaker Mr. Akhilesh Ranjan, Member CBDT*PANEL DISCUSSION PANELLISTCase studies on Cross Border Transactions Shri G. C. Srivastava, IRS, Mr. Saurabh Soparkar, Senior

Advocate, Shri S. Ganesh, Senior Advocate, CA T. P. Ostwal, and CA Yogesh Thar

Town Hall Discussion on Issues in FEMA, PMLA and Black Money Act. CA Dilip Thakkar, CA Rashmin Sanghvi, and Dr. Dilip K. Sheth

Along with the above technical sessions, we also have entertainment zone, the details of which are as under:ENTERTAINMENT ZONEInternational Tax Premiere League (ITPL) - Cricket MatchRaas Garba and Dandiya NightTeam Building Activities

We have crossed 270 registrations. Fees structure for residential participants is under:

Residential participants – Twin sharing roomMEMBERS ` 18,000/- + ` 3,240/- (18% GST) = ` 21,240/-NON-MEMBERS ` 19,500/- + ` 3,510/- (18% GST) = ` 23,010/-

Enrolment fees on Non-Residential Basis–for Residents of Surat participants onlyPARTICULARS FEESMembers and Non Members ` 10,000/- + ` 1,800/- (18% GST) = ` 11,800/-

*Confirmation AwaitedNotes: 1) Sessions on Day 1 (Thursday, 20th June 2019) will start at 2 p.m. Participants are requested to make their travel arrangements accordingly. 2) Enrolment for Non Residential participants will be open only for delegates staying in Surat. 3) Apart from course material and conference fees, NRP will be provided lunch and dinner for all conference days (Lunch on Thursday to Lunch on

Sunday

20th June 2019 to Sunday, 23rd June 2019 at The Grand Bhagwati, Surat offering the exciting opportunity for thorough exchange of knowledge and ideas in this important field. Surat is known as Diamond Capital of India and is hub of entrepreneurs in textile Industry. The Grand Bhagwati Surat is known for its excellent food, distinguished hospitality and magnificent banquet space. The organizers of the conference invite all lawyers, chartered accountants, tax professional in industry to participate in high numbers and also encourage junior members to participate in this unique conference.The outline of the topics to be discussed at the conference is as under:


INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah | Vice-Chairman: Kartik Badiani Advisor: Dilip J. Thakkar | Convenors: Rakesh Upadhyaya, Shreyas Shah, Harshal Bhuta

SEMINAR ON TDS U/S 195 ON FOREIGN REMITTANCES & EXPATRIATE TAXATION INCLUDING PROCEDURAL ASPECTSTime : 9.00 a.m. to 9.30 a.m. (Registration)

9.30 a.m. to 6.00 p.m. (Session)Venue : Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020


Dear Colleagues, Withholding tax under section 195 is a topic which is dealt with very frequently by almost all tax professionals. With developments like BEPS / MLI, POEM and GAAR, the practice of international taxation in fields like advising on applicability of section 195 and issuing certificates under Form No. 15CB has undergone a qualitative change.There are many issues surrounding the same which one needs to be abreast of. The International Tax Committee

is therefore pleased to announce a seminar on section 195 to focus on key issues surrounding the advisory and certification under section 195.

The organizers of the seminar invite all lawyers, chartered accountants, tax professionals in industry to participate in high numbers and also encourage junior members to participate in this unique seminar.

FeesMEMBERS ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-

NON-MEMBERS ` 1,750/- + ` 315/- (18% GST) = ` 2,065/-

Note: Fees are inclusive of course material, breakfast, lunch and afternoon tea / coffee.

SR. NO. TOPICS SPEAKERS1 Inaugural Session Eminent Faculty2 Recent Developments under Section 195, Section 195 versus Section 197, Issues

of online application, Dependant Agent Permanent Establishments and practical problems in issuing Form No. 15CB

CA N. C. Hegde

3 Recent Developments and Controversial Issues in taxation of Interest, and Capital Gains (including gains on sale of immovable property) including Indirect Transfers and impact of Section 195

CA Vishal Shah*

4 Recent developments and Controversial issues in taxation of Non-Residents on FTS & Royalty Income and TDS under section 195, reimbursements agency commission, e-commerce and digital transactions, payment to professionals, software payments, exhibitions etc.

CA Shabbir Motorwala

5 Recent development and controversial issues in Taxation of Income of Non-Resident from Shipping & Aircraft (including Logistics & Transportation sector)

Eminent Faculty

6 Brains’ Trust Session including Case Studies and Q & A under Section 195 of the Act

Chairman: CA T. P. OstwalPanellists:CA Shefali Goradia* and Shri M. P. Lohia, Ex-IRS

*Subject to confirmation


DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice-Chairmen: Dinesh Poddar, Abhitan Mehta Convenors: Viraj Mehta, Dharan Gandhi, Nimesh Chothani | Advisor: K. Gopal

HALF DAY WORKSHOP ON RETURN FILING PROVISIONS UNDER THE INCOME TAX ACT Time : 3.00 p.m. to 8.00 p.m.Venue : AV Room, 4th Floor, Jaihind College,

Churchgate, Mumbai-400 020


There is also a need to refresh the amendments applicable to A.Y. 2019-20 under the Act before the return filing season. The department has notified the return of income for the A.Y. 2019-20 and the returns now require additional information which have to be provided by the assessee. Professionals face several issues in filing income tax return and CPC Bangalore is issuing notices u/s. 139(9) due to faulty filing of return and even automated intimation u/s. 143(1) are received

making adjustments proposed u/s. 143(1)(a) which are not factually accurate. These filings are important as otherwise penal provisions are attracted.Who should attend the programme?The programme would benefit the Tax Practitioners, Tax Lawyers, Chartered Accountants, Accounting staff and Article clerks doing CA or students pursuing law.

SR. NO. TOPICS SPEAKERS1 Amendments relevant for filing Return of A.Y. 2019-20 and Legal Aspects of Filing

Income Tax ReturnCA Nihar Jambusaria

2 Aspects of e-filing return and the changes in the new Income Tax Returns notified for A.Y. 2019-20.

CA Avinash Rawani

3 Interaction with Income Tax Authority (CPC) on issues faced in return filing Senior CBDT Officials from CPC, Bengaluru

FeesMEMBERS ` 900/- + ` 162/- (18% GST) = ` 1,062/-NON-MEMBERS ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-STUDENT ` 500/- + ` 90/- (18% GST) = ` 590/-

MEMBERSHIP & PUBLIC RELATIONS COMMITTEEChairman: Sanjeev Lalan | Co-Chairman: Sachin Gandhi | Vice Chairman: Jatin Lodaya Convenors: Premal Gandhi, Darshak Shah | Advisor: Yatin Desai

FULL DAY SEMINAR ON DIRECT TAXES AT NAGPUR (Jointly with Income Tax Bar Association, Nagpur)Time : 10.00 a.m. to 5.30 p.m.Venue : Hotel Centre Point, 24, Central Bazar Road, Ramdaspeth,

Nagpur-440010


SR. NO. TOPICS SPEAKERS1 Post Demonetisation Tax Issues and unexplained Cash Credit (Sec. 68), unexplained

Money, Expenditure (Secs 69 to 69D, 115BBD, 271 AAC) Mr. Devendra Jain, Advocate

2 Section 56 – Burning Issues CA Anish Thacker3 Restructuring of Firms, Companies, LLPs and Private Trusts CA Abhitan Mehta4 Benami Transactions and Prevention of Money Laundering Act Mr. Ajay Singh, Advocate

FEES Members: ` 1,500/- + ` 270/- (18% GST) = ` 1,770/- Non-members: ` 1,750/- + ` 315/- (18% GST) = ` 2,065/-

FOR REGISTRATION PL CONTACT AT NAGPUR• CA RAJESH LOYA : (Mobile No. 9823062247) • CA VIJAY AGRAWAL : (Mobile No. 9373106071)

• ADV. MANOJ MORYANI : (Mobile No. 9422807066)


COMMERCIAL & ALLIED LAWS COMMITTEEChairman: Rahul Hakani | Vice-Chairman: Ranit Basu Convenors: Nihar Mankad, Loshika Bulchandani, Shilpa Thakar | Advisor: Pravin Veera

DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice-Chairman: Dinesh Poddar, Abhitan Mehta | Convenors: Viraj Mehta, Dharan Gandhi, Nimesh Chothani | Advisor: K. Gopal

WORKSHOP ON THE NEW BENAMI LAW AND PREVENTION OF MONEY LAUNDERING ACTTime : 09.00 a.m. to 5.00 p.m.Venue : Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020


After a very successful seminar on the new Benami Law last year, the Commercial and Allied Laws Committee and Direct Taxes

Committee are coming out with a workshop on the new Benami Law as well as the Prevention of Money Laundering Act.


1 Exhaustive deliberation on meaning and scope of Benami transactions [including 4 exceptions to a Benami transaction], Benami property, Benamidar and beneficial owner. Special emphasis on case studies.Dicey Issues under Benami law.

Dr. Dilip K. Sheth

2 Practical Issues arising out of actions taken by the Benami law implementation agencies, such as attachment, bonafide purchaser etcHandling and representation of the proceedings before the Initiating Officers (IO), Adjudicating Authority & Appellate Tribunal.

Mr. Ashwani Taneja, Advocate [Ex-ITAT Member]

3 Role of Tax Lawyers and Chartered Accountants in Handling of notices and attachment of properties issued by the Enforcement Directorate under PMLA (Anti-Money Laundering law)(a) Overview of the PMLA law (b) Immediate precautions, safeguards and actions to be taken(c) Rigours of attachment of properties acquired and held by the parties who are

not directly accused in the offence of money laundering.(d) Valuable Support mechanism which can be provided by Tax Professionals /

Chartered Accountants to the clients affected by notices and actions under PMLA

Mr Rajendra [Ex-ITAT Member]

4 Panel Discussion on Interplay between Income Tax, Benami Law, Black Money Act and PMLA:(a) Whether parallel actions can be taken under all the above laws.

(b) Whether applicability of all these laws is cumulative or mutually exclusive.

(c) Is there any distinction in onus to prove rule of evidence etc. in implementation and application of these laws.

(d) Is there any distinction between manner and effect of attachment of the properties, their possession and confiscation etc. and their rights of usage and transfer etc. in the intervening period while possession is not taken or confiscation is not done by the respective agencies.

Panel Discussion CA T. P. OstwalMr. Ashwani Taneja, Advocate [Ex-ITAT Member] Mr. Rajendra [Ex-ITAT Member] Dr. Dilip K. Sheth

FEES Up to 15th June, 2019 After 15th June, 2019Member ` 2,200/- + ` 396 (18% GST) = ` 2,596/- ` 2,700/- + ` 486 (18% GST) = ` 3,186/-Non-Member ` 2,500/- + ` 450 (18% GST) = ` 2,950/- ` 3,000/- + ` 540 (18% GST) = ` 3,540/-


COMMERCIAL & ALLIED LAWS COMMITTEEChairman: Rahul Hakani | Vice-Chairman: Ranit Basu Convenors: Nihar Mankad, Loshika Bulchandani, Shilpa Thakar | Advisor: Pravin Veera

SEMINAR ON ISSUES RELATED TO IBC AND RESOLUTION OF DISTRESSED ASSETSTime : 9.00 a.m. to 6.00 p.m.Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate,

Mumbai-400 020.


FEES MEMBERS NON MEMBERSUp to 10th June, 2019 ` 1,750/- + ` 315/- (18% GST) = ` 2,065/- ` 2,000/- + ` 360/- (18% GST) = ` 2,360/-After 10th June, 2019 ` 2,000/- + ` 360/- (18% GST) = ` 2,360/- ` 2,500/- + ` 150/- (18% GST) = ` 2,950/-

SR. NO. TOPICS SPEAKERS1 Keynote Address/Panel Discussion on Resolution of Distressed Assets Eminent Faculty2 • Key Legal Issues in respect to distressed Assets

• Discussion on the Impact of Landmark Judgments• Going concern in liquidation• Group Insolvencies

Mr. Kumar Saurabh Singh, Advocate Mr. Sapan Gupta, Advocate CA Vijay Iyer

3 My Journey as IRP:Critical analysis: Risk, Rewards and Indemnity for the Resolution Process mandated under the code

CA Satish Kumar Gupta

4 Bidding plans / preferential / undervalued / extortionate / fraudulent transactions.Role of other professional like Forensic Auditors etc.

Dr. Rajendra Ganatra

5 IBC – Tax Challenges Eminent Faculty6 Investment Opportunities in M&A and Stressed Assets and Management Buy-outs under

IBC. Eminent Faculty

CORPORATE CONNECT COMMITTEE Chairman: Paras K. Savla | Vice Chairman: Jiger Saiya Convenors: Vitang Shah, Saumil Saparia Advisor: Sujal Shah


LECTURE MEETING ON “DESTIN(Y)ATION OF LIFE” CHOOSING THE PATH TO SUCCESSTime : 5.45 p.m. to 6.15 p.m. - Registration and Fellowship over tea

6.15 p.m. to 7.45 p.m. - SessionSpeaker : Dr. Sundeep Kochar Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate,

Mumbai-20

Day & Date Tuesday, 18th June, 2019

We professionals are really busy these days in fulfilling the compliances daily. However it is also important to discover yourself and act accordingly. When you discover yourself, you discover happiness which leads you to path of success. Our destiny is one thing that we cannot change. But finding success and happiness through our destined path is a task that can be unfolded. Importance of the Session:This session will be taken by Dr. (Hon.) Sundeep Kochar who helps people discover their strengths and weaknesses by motivating them to lead a more spiritual and contended life. He has changed

the flow of acceptance and understanding by creating a new space for much needed experimental speeches, talks, discussions with concrete proof and unshakeable belief. As every individual is different in his own journey, being aware of their abilities, limitations and potential they are thrust into a privileged position of personal awareness and knowledge of channelling their energy in the right way and Most Importantly at the right time, will lead to path of success.Dr. Sundeep’s “Holistic Approach” helps individual realise their true potential and freedom to own their happiness which leads to symbiotic productivity.

All are Cordially

Invited



Jointly with Indo Japanese Association

INDIRECT TAXES COMMITTEEChairman: Naresh Sheth | Vice Chairman: Atul Mehta Convenors: Sumit Jhunjhunwala, Kush Vora, Hemang Shah | Advisor: A. R. Krishnan

JAPANESE LANGUAGE CONVERSATION COURSE (NEW CRASH COURSE)Days / Time : Friday 6.30 p.m. to 8.00 p.m.

Saturday 10.00 a.m. to 11.30 a.m.Venue : CTC Conference Room, 3, Rewa Chambers, Ground Floor,

31, New Marine Lines, Churchgate, Mumbai-400 020

Days Friday evening & Saturday morning

Text Book Executive Japanese – Beginner’s Guide to Corporate Communications (10 Chapters) Plus Business Etiquette and Financial Terminology

Session 15 hours (10 sessions of 1.30 hours each)

FEES ` 7,500/- + ` 1,350/- (18% GST) = ` 8,850/-*Minimum 10 students per batch mandatory

Course Starting from 14th June,

2019

STUDY CIRCLE & STUDY GROUP COMMITTEEChairman: Ashok Sharma | Co-Chairman : Dilip Sanghvi | Vice-Chairman : Sanjay Choksi Convenors: Dinesh Shah, Ujwal Thakrar, Tanmay Phadke | Advisor: Mahendra Sanghvi

STUDY GROUP MEETING (For SG Members only)Time : 6.15 p.m. to 8.00 p.m.Subject : Recent Judgments under Direct TaxesGroup Leader : CA Yogesh TharVenue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate,

Mumbai-400 020

Day & Date: Thursday, 13th June, 2019

STUDY CIRCLE MEETING (For SC Members only)Time : 11.00 a.m. to 1.30 p.m. Subject : Important Issues on ICDSGroup Leader : Mr. K. K. Chythanya, AdvocateVenue : Banquet Hall, Ground Floor, Dadar Club, Lane No. 3,

Lokmanya Tilak Colony, Near BAPS Shri Swami Narayan Mandir, Dadar East, Mumbai-400014

Day & Date: Saturday, 22nd June, 2019

IDT STUDY CIRCLE MEETING (For IDT SC Members only)Time : 5.15 p.m. to 8.30 p.m.Topic : Important Decisions and Advance Rulings relevant for GST AuditGroup Leader : CA Jinesh ShahChairman : CA S. S. GuptaVenue : AV Room, 4th Floor, Jai Hind College,

Churchgate, Mumbai-400 020



BENGALURU STUDY GROUP MEETINGConvenors: Narendra Jain, Vishnu Bagri | Co-ordinators: Tata Krishna, Hanish S.

BENGALURU STUDY GROUPTime : 5.00 p.m. to 8.15 p.m.Venue : FKCCI, 3rd Floor, Hall No. 4,

K. G. Road, Bengaluru-560 009

Day & Date: Wednesday, 12th June, 2019

FeesFOR MEMBERS - PER MONTH ` 500/- + ` 90/- (18% GST) = ` 590/-FOR NON - MEMBERS - PER MONTH ` 600/- + ` 108/- (18% GST) = ` 708/-FOR MEMBERS – 12 MONTHS SUBSCRIPTION ` 4,200/- + ` 756/- (18% GST) = ` 4,956/-

The details of the programme are as under:Sr. No. Topics Speakers

1 Corporate Restructuring – Direct Tax Perspective CA Amith Raj2 Recent Changes in Income Tax Returns and Other Forms (10B, 16 etc.) CA Sudheendra B. R.

ACCOUNTING AND AUDITING COMMITTEEChairman: Heneel Patel | Vice Chairman: Tejas Parikh Convenors: Arpita Desai, Deepak Shah | Advisor: Jayesh Gandhi

HALF DAY WORKSHOP ON AMENDMENTS TO SEBI LISTING REGULATIONSTime : 9.30 a.m. to 1.30 p.m.Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

Day & Date: Saturday, 6th July, 2019

FeesFOR MEMBERS ` 750/- + ` 135/- (18% GST) = ` 885/-FOR NON-MEMBERS ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-

Pursuant to the Kotak Committee recommendations, the SEBI listing Regulations have been amended vide SEBI Circulars issued on 9th May 2018 and 10th May 2018. The amended Regulations are applicable from 1st April, 2019. The Workshop is being organised to educate the members on the important aspects of the revised SEBI Listing Regulations

Sr. No. Topics Speakers1 Overview of the amendments to the listing Regulations CS Makarand Joshi2 Accounting & Auditing related matters and disclosure requirements Eminent Faculty

PUNE STUDY GROUP Convenor: Sachin Sastakar | Co-ordinators: Sunil Vaidya, Ameya Kunte, Mehul Shah

FULL DAY SEMINAR ON CONTENTIOUS ISSUES IN REAL ESTATE RELATED TRANSACTIONSTime : 9.30 a.m. to 4.30 p.m.Venue : ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road,

Next to Atur Centre, Pune-411 016

Day & Date: Saturday, 15th June 2019

FEES Free for Pune Study Group MembersNon Study Group Members: ` 1,000/- (inclusive of GST)

SR. NO. TOPICS SPEAKERS1 Relevant provisions of FEMA CS Sunil Nanal2 Relevant Provisions of RERA CA Shreedhar Phathak3 Panel Discussion - Triveni Sangam – Confluence and Divergence of Accounting,

Income Tax and GSTi. Accounting - CA Jayesh Gandhiii. Income Tax - CA Yogesh Thariii. GST - CA Parind Mehtaiv. Moderator - CA Anish Thacker


STUDENT COMMITTEEChairperson: Nishtha Pandya | Vice-Chairperson: Niyati Mankad Convenors: Sachin Maher, Pramita Rathi | Advisor: Ajay Singh


5TH CTC FOOTBALL CUPTime : 2.30 p.m. to 8.00 p.m.Venue : Dr. Antonio Da Silva High School, S. K. Bole Road,

Opp. Kabutarkhana, Dadar (W), Mumbai-400 028.

Day & Date: Saturday, 10th August 2019

Prizes will be awarded to the Winning Team, Runner-up Team and for Overall Best Player. Participation Trophy/Certificates will be given to all participants. The Rules shall be intimated to the players in advance.

Kindly note1. Players’ selection/allocation to a team for individual

enrolments shall be done by the organisers, which shall be final & binding.

2. Decisions of CTC, its Office Bearers and the Match Referee will be final and binding on all the participants and supporters.

Sooooo Let’s Football!!!!!!

You are invited to enroll as a team or individual player or be a spectator to cheer the players of the CTC.

Mandatory for players1. To wear T-shirt, shorts & sports shoes during the

Tournament. (Stud Shoes shall not be allowed).

2. To report at the venue on time.

3. To be physically fit (The CTC or organisers shall be in no way responsible for any injury or health problems occurring to any member/guest.)

The game of life is a lot like football. You have to tackle your problems, block your fears, and score your points when you get the opportunity - Lewis GrizzardFootball is like our profession - it requires perseverance, self-denial, hard work, sacrifice, dedication and respect for authority.

To continue the football fever, the Student Committee and Membership & Public Relations Committee has organised the 5th edition of the CTC Football Cup on special turf, the details of which are as under:

Duration of each match 25 minutes plus 5 minutes half time break

Each Team consist of 7 players plus 2 rolling substitutes

Participants allowed Members of CTC, their friends, family members and Articled / Trainees

Participation Fees a. CA Firms ` 7,500/- + ` 1,350/- GST = ` 8,850/- (9 Members Team)b. CTC Member (Individual Player) ` 500/- + ` 90/- GST = ` 590/-c. CTC Student Member (Individual Player) ` 300/- + ` 54/- GST = ` 354/-d. Non-Member (Individual Player) ` 700/- + ` 126/- GST = ` 826/-e. Guest ` 200/- + ` 36/- GST = ` 236/-

(Including Tea & Refreshments)

Enrolment will be accepted on a ‘first come first serve’ basis.Interested members/students may send their enrolment along with player’s participation fee to the Chamber’s office on or before 5th August, 2019 in the following format:

Name Mobile No. E-mail ID Age Level of experience, if any, of playing Football

Firm / Individual

Food preference (Veg / Jain)

(For Firm Entry – Please submit only one form with full details of players.For further details you may please contact:

Mr. Bhavik Shah-9833022289, Mr. Ankit Sanghvi-9820689003 Mr. Hitesh Shah-9821889249


NOTICE OF THE NINETY SECOND ANNUAL GENERAL MEETING

Notice is hereby given that the Ninety Second Annual General Meeting of THE CHAMBER OF TAX CONSULTANTS will be held at Garware Club House, Wankhede Stadium, D Road, Churchgate, Mumbai- 400 020 on Thursday, 4th July, 2019 at 4.30 p.m. to transact the following business:1. To read and adopt the minutes of the previous (91st) Annual General Meeting.

2. To consider the Annual Report of the Managing Council for the year 2018-19.

3. To consider and adopt the annual audited accounts for the year ended 31st March, 2019.

4. To appoint auditors and fix their honorarium for the year 2019-20.

5. To announce the results of the elections of President and fourteen Members of the Managing Council.

6. To felicitate the winners of Dastur Essay Competition 2019

7. To have book release function

FOR AND ON BEHALF OF THE MANAGING COUNCIL Sd/-Place : Mumbai Anish M. Thacker / Parag S. VedDated : 22nd April, 2019 Hon. Jt. Secretaries Office : 3, Rewa Chambers, 31, New Marine Lines, Mumbai – 400 020.

Notes:

1. As per the decision taken at 86th Annual General Meeting, Annual Report would be circulated in

electronic form. It shall also be available on the Chamber’s website after 15th June, 2019. Any

member desiring physical copy can send written request and get it collected from Chamber’s office

after 15th June, 2019. Alternatively, a member can also send a written request for dispatch to him/

her by post or courier.

2. If there is no quorum by 4.30 p.m. the meeting will be adjourned for half an hour and the members

present at such adjourned meeting shall form the quorum.

3. The members desiring to raise queries are requested to send their queries, in writing, if any, on the

Statement of Accounts and Annual Report for the year 2018-19 to the Hon. Jt. Secretaries at least

four working days before the day of the Annual General Meeting.


RENEWAL NOTICE – 2019-20Dear Members,

SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2019-201st April, 2019

It’s our privilege to have been of service to you over the years. We truly appreciate and value your association. It’s time to renew annual membership and subscription of The Chamber’s Journal, Study Group and Study Circle Meetings and other subscription of The Chamber of Tax Consultants (“The Chamber”). The renewal fees for Annual Membership, Study Group and Study Circle and other Subscription for the financial year 2019-20 falls due for payment on 1st April, 2019. We thank you for your subscription. Your involvement is important and very much appreciated. We hope you will always continue to support The Chamber in its activities and growth as done in the past.Thanking You,For the Chamber of Tax Consultants

CA Ketan L. Vajani Hon. Treasurer

Sr. No.

Particulars Fees GST @18% Total

I MEMBERSHIP FEES (YEARLY - RENEWAL) 1 ORDINARY MEMBERSHIP FEES 2,200 396 2,5962 ASSOCIATE MEMBERSHIP FEES 5,000 900 5,9003 STUDENT MEMBERSHIP FEES 250 45 295II CHAMBER'S JOURNAL SUBSCRIPTION - YEARLY (HARD COPIES) 1 JOURNAL SUBSCRIPTION - LIFE MEMBERS 1,200 0 1,2002 JOURNAL SUBSCRIPTION - NON MEMBERS 2,100 0 2,1003 JOURNAL SUBSCRIPTION - STUDENT MEMBERS 700 0 700

III CHAMBER'S E-JOURNAL SUBSCRIPTION (SOFT COPIES) 1 E-JOURNAL SUBSCRIPTION - LIFE MEMBERS (YEARLY) 700 126 8262 E-JOURNAL SUBSCRIPTION - NON MEMBERS (YEARLY) 1,000 180 1,1803 E-JOURNAL SUBSCRIPTION - STUDENT MEMBERS (YEARLY) 700 126 8264 E-JOURNAL SUBSCRIPTION - SINGLE JOURNAL 200 36 236

IV ITJ SUBSCRIPTION1 INTERNATIONAL TAX JOURNAL SUBSCRIPTION 2,000 0 2,000V STUDY CIRCLES & STUDY GROUPS (RENEWAL)1 STUDY GROUP (DIRECT TAXES) 2,200 396 2,5962 STUDY CIRCLE (DIRECT TAXES) 1,750 315 2,0653 STUDY CIRCLE (INTERNATIONAL TAXATION) 1,500 270 1,7704 STUDY CIRCLE (INDIRECT TAXES) 2,000 360 2,3605 STUDY CIRCLE (ALLIED LAWS) 1,500 270 1,7706 SELF AWARENESS SERIES 600 108 7087 INTENSIVE STUDY GROUP ON DIRECT TAX 1,750 315 2,0658 FEMA STUDY CIRCLE 1,500 270 1,7709 STUDY GROUP ON ACCOUNTING & AUDITING (Refer Note below) 1,800 324 2,124

10 CAPITAL MARKET STUDY CIRCLE (Refer Note below) 1,800 324 2,12411 PUNE STUDY GROUP 3,500 630 4,13012 BENGALURU STUDY GROUP 4,200 756 4,956

(Note: 10% Discount applicable for the registration of 3 or more Study Circles & Study Groups) NOTES:1. The Managing Council has decided to extend rollover benefit for one year to the Members of the following Study Circles

a) Intensive Study Group on IND-AS (Renamed as Study Group on Accounting & Auditing)b) Capital Market Study Circle

Accordingly those members who have enrolled for these Study Circles in F.Y. 2018-19 need not renew their subscription for F.Y. 2019-20.2. Members are requested to visit the website www.ctconline.org for online payment.3. Payments should be made by Account Payee Cheque/Demand Draft in favour of “THE CHAMBER OF TAX CONSULTANTS”. Outstation members are requested to send payments

only by “Demand Draft or At Par Cheque”.4. A consolidated Cheque/Draft may be sent for all payments.5. Please also update your Mobile number & e-mail address to ensure receipt of regular updates on activities of The Chamber.6. Please write your full name on the reverse of Cheque/DD.7. Kindly pay your membership fees by 31st May, 2019 for uninterrupted service of the Chamber’s Journal.8. Members are requested to download the Renewal Form from Chamber’s website www.ctconline.org9. Renewal Notices has been sent separately and members are requested to fill up the same and send it to The Chamber’s office along with the cheque. 10. Renewal Notice contains entire information of Members as per CTC database. In case of any change in information of Member as shown in form, kindly provide updated information

along with the form.


UNREPORTED DECISIONS OF TRIBUNAL By Ajay R. Singh, Advocate

1. S. 54 : Capital Gains - Utilisation of gift received from husband for purchase of new house - Amount invested in new asset need not be entirely sourced from capital gains. [S.45]

The assessee claimed deduction u/s. 54 of the Act on account of investment in residential house this long term capital gains was declared at nil. The AO also noted that the investment is not made within the stipulated period and did not allow the exemption u/s. 54 of the Act. It was noted by the AO that the investment is not made before the due date of filing of return of income u/s. 139(1) by the assessee. The AO also noted that the investment in new house is made by assessee’s husband and not assessee to the extent of ` 70 lakh. Hence, he stated that the assessee is not entitled for claim of deduction u/s. 54 of the Act.

Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) agreed with the contention of the assessee that where the investment is made within the due date of filing of return u/s. 139 of the Act the assessee is entitled for exemption u/s. 54 of the Act . In present case total investment was made before due date of the Act. Accordingly, the CIT(A) allowed the claim of deduction to the extent of ` 12,62,000/-. But he confirmed the action of the AO and denied the deduction u/s. 54 of the Act on the amount of ` 70 lakh which was paid by husband of the assessee as gift.

On further appeal the ITAT held that as regards the dispute of entitlement of claim of deduction u/s. 54 of the Act whether the investment made within the stipulated period or not, the CIT(A) has allowed the claim in favour of assessee and Revenue has not challenged the same. It means, Revenue has not filed any appeal and the same is confirmed by the ld Sr. DR. The only dispute remains is whether the amount gifted by assessee’s husband of ` 70 lakh on 13-10-2014 by making direct payments to the builder out of NRO saving Bank Account can be considered as payment made by assessee. For this, the ld Counsel for the assessee relied on the decision of this ITAT in the case of Deepak A. Shah vs. ITO in ITA No. 526/Mum/2016 for AY 2010-11, wherein the Tribunal following the decision of ACIT vs. Dr. P. S. Pasricha (2008) 20 SOT 468 (Mum) in ITA No. 6808/Mum/2003 for AY 2001-02 vide order dated 11-01-2008 has held that the same fund may or may not be utilized for the purchase of another residential house but the requirement of law is that the assessee should purchase a residential house within the period and the source of fund is quite irrelevant. In the instant case, the facts are that the assessee has received gift from her husband and invested a sum of ` 70 lakh in purchase of new residential house. The assessee has fulfilled all the conditions prescribed u/s. 54 of the Act and hence, she is entitled for claim of deduction. The appeal of assessee was allowed.

Sanmeetkaur M. Kohli vs. ITO -3(1)(1), ITA No. 6500/Mum/2017, DOH: 18/04/2019 (Mum.)(Trib.)

2. S. 80HHB : Deduction – Projects outside India – the assessee company derives profit from foreign Projects and complied with the entire requirement - deduction u/s. 80HHB ought to be allowed.

The assessee company during the year under consideration was engaged in the business of undertaking jobs for construction of tanks/vessels for storage of chemicals on labour basis and/or on turnkey basis had filed its return of income for A.Y. 1999-2000, after claiming deduction u/s. 80HHC. Subsequently, the AO observed on a perusal of the records that the assessee company was not engaged in the business of manufacturing or trading of any commodity/product and was only undertaking jobs for construction of tanks/vessels for storage of chemicals on labour basis and/or on turnkey basis. The AO held that the assessee was not eligible for claim of deduction u/s. 80HHC. The CIT(A) upheld the order of the AO and dismissed the appeal.

The ITAT disposed off the appeal vide a consolidated order for AY 1999-2000, AY 2003-04 & AY 2004-05. The Tribunal in its aforesaid order observed that the assessee was not eligible for claim of deduction u/s. 80HHC. Insofar the fresh and the alternate claim raised by the assessee for deduction u/s. 80HHB of the IT Act was concerned, the Tribunal restored the matter to the file of the AO for considering the same after affording an opportunity of being heard to the assessee. The Tribunal while restoring the matter to the file of the AO relied on its earlier order for AY 2000-01 wherein the AO was specifically directed to give opportunity to the assessee to create the necessary reserve account as per the provisions of Sec. 80HHB. The AO in the course of the set aside proceedings declined to allow the claim of deduction under Sec. 80HHB on the grounds that conditions specified in Sec. 80HHB has not been fulfilled on time. The CIT(A) upheld the view taken by the AO and dismissed the appeal.

Further, in the second round appeal filed by the assessee before the ITAT it was held that the adverse inferences drawn by the lower authorities on the ground that the assessee had neither claimed any deduction u/s. 80HHB nor fulfilled the conditions laid down in 80HHB, is without any merits. In fact, it was only pursuant to the direction by the Tribunal which had restored the matter to the file of the AO for considering the assessees alternate claim of deduction u/s. 80HHB, that the latter had became conversant of its entitlement under the said statutory provision. The assessee in compliance of the requirement contemplated in Sec. 80HHB had obtained the certificate in Form 10CCAH, dated 08-11-2011 duly signed and verified by a CA and the assessee had maintained separate ledger accounts in respect of the profits and gains derived from execution of the foreign project. Further the assessee was obligated to have debited an amount equal to 50% of its profit and gains for the year under consideration i.e., AY 1999-2000 to the profit and loss account and credited the same to a reserve account viz., “Foreign Projects Reserve Account”, which was to be utilised by it during the period of five years next following for the purpose of its business other than for distribution by way of a dividend or profits had submitted it along with a revised computation of income with the AO in the course of the set aside proceedings, vide its letter dated 08-11-2011. The assessee had submitted before the lower authorities the copies of the agreements with the foreign company viz. National Oil (Tanzania) Ltd. along with the other


requisite details as regards the same, and had also explained the facts of its case before them.

The assessee had duly satisfied the requisite conditions which rendered it eligible for claim of deduction u/s. 80HHB, therefore, the lower authorities had erred in declining to allow the said claim of deduction on the basis of incorrect observations. The claim of deduction raised by the assessee u/s. 80HHB of the Act be allowed.

M/s. Prashanth Projects Limited. vs. DCIT-10(3), ITA No. 4308/Mum/2015, DOH: 12/04/2019 (Mum.)(Trib.)

3. S. 2(22)(e) : Deemed dividend – Not a shareholder–Addition cannot be made as deemed

The assessee company had received loan from Muchhala Magic Land Pvt. Ltd. During the year the ld. AO observed that Mr. Arunkumar J. Muchhala is holding 32.18% of shares of Rithika Hotels Pvt. Ltd., i.e., the assessee company and was also holding 32% shares in Muchhala Magic Land Pvt. Ltd. The ld. AO also observed that as on 31-03-2012, Muchhala Magic Land Pvt. Ltd. had accumulated profits of ` 5,25,64,264/- and as on 31-03-2013 of ` 3,02,70,140/-. Accordingly, the ld. AO held that all the conditions prescribed in para 10.3 of Circular No. 495 were duly complied with by the assessee and hence, the loan of

` 34,00,000/- received by the assessee from Muchhala Magic Land Pvt. Ltd., is to be treated as deemed dividend u/s. 2(22)(e) of the Act and accordingly, the ld. AO added the same to the total income of the assessee.

ITAT held that the provisions of Sec. 2(22)(e) of the Act could not be applied on the ground that it was not holding any shares in the lending company. Reliance was placed on the decision of Hon’ble Delhi High Court in the case of CIT vs. Ankitech (P) Ltd. & Ors reported in 340 ITR 14 (Del) which in turn followed the decision of Hon’ble Jurisdictional High Court in the case of CIT vs. Universal Medicare (P) Ltd. reported in 324 ITR 263(Bom). The decision of Hon’ble Delhi High Court in the case of Ankitech P. Ltd. had been approved by the Hon’ble Supreme Court in the case of CIT Delhi vs. Madhur Housing and Development Company in Civil Appeal No. 3961 of 2013 along with other civil appeals vide order dated 5-10-2017 by fully endorsing the views of the Hon’ble Delhi High Court supra. Accordingly, it was held that assessee company was not a shareholder in the lending company and hence, the provisions of Section 2(22)(e) of the Act cannot be made applicable to the facts of the instant case.

DCIT-11(1)(1). vs. Ritika Hotels Pvt. Ltd., ITA Nos. 6131 & 6132/Mum/2017; DOH: 24/04/2019 (Mum)(Trib).

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS

UNREPORTED DECISIONS (SERVICE TAX) By Vinay Jain & Sachin Mishra, Advocates

1. Whether ‘Transfer of Development Rights’ can be equated with ‘Benefits to arise out of land’ for the purposes of definition of ‘Immovable Property’ as enumerated under Section 3 (26) of the General Clauses Act, 1897 read with Section 65B(44) of the Finance Act, 1994? Whether transfer of such “Development Rights” is in that sense “transfer of immovable property” and therefore, not taxable under the Finance Act, 1994?

Facts and Pleading: DLF Commercial Projects Corporations (hereinafter referred to as the ‘Appellant’) is engaged in the business of construction and development of integrated township. The Appellant entered into an agreement with DLF Ltd. As per the said agreement, the Appellant was receiving business advances. The said business advances were transferred by the Appellant to various companies who were using the same for purchasing lands or development rights in the land. The said companies were known as Land Owning Companies. After the construction, Land Owning Companies along with DLF Ltd., entered into a tripartite agreement with prospective buyers for sale of the constructed property.

The case of the department was that the Land Owning Companies transferred the Development Rights to Appellant which was in turn, transferred by the Appellant to DLF Ltd. The department alleged that the advances received by the

Appellant from DLF Ltd. was the consideration for transfer of such Development Rights. Therefore, the Department was of the view that the Appellants are liable for service tax on such transfer of development rights.

The Appellant submitted that there was no transfer of development rights from the Appellant to DLF Ltd. as the Land Owning Companies remained the owner of the land. The Appellant also argued that the ‘transfer of development rights’ being immovable property is beyond the ambit of Finance Act, 1994. The Appellant contended that the rights given to developer to develop the land and sell super-structure in perpetuity shall fall within the meaning of ‘benefit arising out of land’ under the definition of ‘Immovable Property’ as enumerated under Section 3 (26) of the General Clauses Act, 1897. Thus, the Development Rights fall outside the purview of ‘Service’ as per section 65B(44) of the Finance Act, 1994.

Judgment: The Hon’ble Appellate Tribunal held that as the Appellant was never the owner of the land, it could not have transferred the development rights to DLF Ltd. The Hon’ble Appellate Tribunal also held that the advance received from DLF Ltd. was transferred by the Appellant to the Land Owner Companies. Hence, the Hon’ble Appellate Tribunal held that it is mere transaction of sale and purchase of land by the Appellant for DLF Ltd. for further development. The


Hon’ble Appellate Tribunal further relied upon the Hon’ble Allahabad High Court’s judgment in the case of Bahadur and Others vs. Sikandar and Others and the Hon’ble Bombay High Court’s judgments in the cases of Chheda Housing Development Corporation vs. Bibijan Shaikh Farid and Shadoday Builders Private Ltd. and Ors, vs, Jt. Charity Commissioner and Ors. to held that the ‘Transferrable Development Right’ is immovable property as it is a ‘benefit arising out of land’. Therefore, Hon’ble Appellate Tribunal held that the development rights are excluded from the ambit of ‘service’ as per Section 65B(44)(a)(i) of the Finance Act, 1994 read with Section 3 (26) of the General Clauses Act, 1897.

DLF Commercial Projects Corporations vs. C.S.T. Gurugram, CESTAT, Chandigarh, decided on 22-05-2019 in the Final Order No. 60554/2019.

2. Whether value of taxable services on which service tax is payable under the Reverse Charge Mechanism should be included in the ‘Aggregate Value’ for the applicability of Small Service Provider (SSP/SSI) Exemption under Notification No. 6/2005-Service Tax dated 1-3-2005?

Facts and Pleading: M/s. Crossword Agro Industries (hereinafter referred to as the ‘Appellant’) are inter alia engaged in manufacturing & exporting of agricultural diesel engines. The Appellant had been paying transport charges and discharging the service tax liability under reverse charge mechanism as per section 66A of the Finance Act, 1994. During the financial year of 2005-06, the Appellant had not paid service tax on output services as its entire taxable value was under the basic exemption limit of ` 4 lakhs as described under Notification No. 6/2005-ST dated 1-3-2005.

Department alleged that the value of taxable service received by the Appellant on which the Appellant has discharged service tax liability under Reverse Charge Mechanism is to be considered as part of the ‘Aggregate Value’ for the purpose of grants of exemption Notification No. 6/2005-ST dated 1-3-2005.

Appellant contended that the ‘aggregate value’ for the purposes of Notification No. 6/2005-ST dated 1.3.2005 do not include the value of taxable service received by an assessee on which service tax liability has been discharged under Reverse Charge Mechanism. The ‘aggregate value’ includes only those taxable services charged in the first consecutive invoices issued or required to be issued by the assessee. Therefore, the Appellant are eligible for the Small Service Provider (SSP/SSI) Exemption.

Judgement: The Hon’ble Appellate Tribunal held that the ‘aggregate value’ for the purposes of Notification No. 6/2005-ST dated 01.03.2005 only includes the amount charged by the assessee. In so far as service tax paid by the Appellant under reverse charge basis is concerned, the

Hon’ble Appellant Tribunal held that the consideration was paid by the Appellant to the foreign service provider i.e. it is the foreign service provider who has charged for the taxable services and not the Appellant. Hence, the said taxable value of service on which service tax was paid by the Appellant under reverse charge basis shall not fall under the aggregate value for the purposes of Notification No. 6/2005-ST dated 01.03.2005.

M/s. Crossword Agro Industries vs. C.C.E. & S.T. Rajkot, CESTAT, Ahmedabad, decided on 03.05.2019 in the Final Order No. A/10784/2019.

3. Whether a discount received by an Air Ticket Agent from an IATA for purchasing an air ticket of a passenger from the IATA amounts to ‘commission’ and thus, taxable under the category of ‘Business Auxiliary Services’?

Facts and Pleadings: M/s. Mahan Travels (hereinafter referred to as ‘the Appellant’) are agent for booking air tickets however, they are not registered with the IATA agent. The Appellant purchase tickets from IATA agent and in turn sell it to the travellers. However, the tickets are directly booked by IATA agent in the name of the respective traveller. The IATA agent in turn gives discount to the Appellant.

Department alleged that the ‘discount’ received by the Appellant is nothing but ‘commission’ received by the Appellant from IATA agent for booking tickets of the travellers and hence the said transaction is taxable under ‘Business Auxiliary Services’.

The Appellant contended that the Appellant is purchasing the tickets on principal to principal basis. The Appellant first purchases the said ticket from an IATA agent and then sells it to the respective travellers. The Appellant further contended that the discount received by the Appellant from IATA agents is nothing but a trade discount and hence, no service tax is payable on the same.

Judgement: The Hon’ble Appellate Tribunal held that the even though the tickets were directly booked in the name of travellers, the Appellant had firstly purchased the said tickets from IATA agents on principal to principal basis. Thereafter, the Appellant has independently sold the said tickets to the travellers. The Hon’ble Appellate Tribunal held that the said discount cannot be considered as ‘commission’ rather it is nothing but a trade discount/trade margin. Thus, the Hon’ble Appellate Tribunal held that the present transaction is one of sell and purchase and the trade margin does not amount to any ‘service’, hence the same is beyond the scope of Finance Act, 1994.

M/s. Mahan Travels vs. C.C.E. & S.T. Ahmedabad, CESTAT, Ahmedabad, decided on 08.05.2019 in the Final Order No. A/10847/2019.

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS


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Printed by Shri Kishor Dwarkadas Vanjara and published by him on behalf of The Chamber of Tax Consultants (owners), 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai-400 020 and Printed at The Great Art Printers, 25, S. A. Brelvi Road, Unique House Opp, Apurva Restaurant, Next to Poddar Chambers, Ground Floor, Fort, Mumbai-400 001. and published at The Chamber of Tax Consultants (owners), 3, Rewa Chambers, 31, New Marine Lines, Mumbai 400 020.

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