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FORTHCOMING EVENTS

SR. PG. DATE COMMITTEE PROGRAMME DESCRIPTION VENUE NO. NO. 1 07-06-2019 Indirect Taxes IDT SC on Important Decisions and Advance Rulings AV Room, 4th Floor, Jai Hind College, 12 relevant for GST Audit , -400 020 2 08-06-2019 Accounting & Study Course on Valuation Babubhai Chinai Hall, 2nd Floor, IMC, 4 Auditing and Churchgate, Mumbai-400 020 Corporate Connect 3 12-06-2019 Bengaluru Study Bengaluru Study Group Meeting FKCCI, 3rd Floor, Hall No. 4, K. G. Road, 13 Group Bengaluru 4 13-06-2019 Study Circle & Study SG on Recent Judgments under Direct Taxes Babubhai Chinai Hall, 2nd Floor, IMC, 12 Group Churchgate, Mumbai-400 020 5 13-06-2019 to Student Student Orientation Course Jagruti Hall, Mitibhai College, JVPD 5 15-06-2019 Scheme, Vile Parle West, Mumbai-400 056 6 14-06-2019 Direct Taxes Half Day Seminar on Recent Controversies and Issues Babubhai Chinai Hall, 2nd Floor, IMC, 5 Under Income-tax Act Churchgate, Mumbai-400 020 7 15-06-2019 International Taxation Seminar on TDS u/s. 195 on Foreign Remittances & Hotel West End, Terrace Hall, Churchgate, 8 Expatriate Taxation including Procedural Aspects Mumbai-400 020 8 15-06-2019 Commercial & Allied Seminar on Issues related to IBC and Resolution of Walchand Hirachand Hall, 4th Floor, IMC, 11 Laws and Corporate Distressed Assets Churchgate, Mumbai-400 020 Connect 9 15-06-2019 Study Group Full Day Seminar on Contentious Issues in Real Estate ELTIS, Plot No. 419, Model Colony, Gokhale 13 Related Transactions Cross Road, Next to Atur Centre, Pune-411 016 10 18-06-2019 Membership & Lecture Meeting on “Destin(y)ation of Life” Choosing Babubhai Chinai Hall, 2nd Floor, IMC, 11 the Path To Success Churchgate, Mumbai-400 020 Public Relations 11 20-06-2019 to International Taxation 13th Residential Conference on International Taxation, The Grand Bhagwati, Magdalla Circle, 6-7 23-06-2019 2019 Dumas Road, Surat-395007, Gujarat

12 22-06-2019 Study Circle & SC on Important Issues on ICDS Banquet Hall, Ground Floor, Club, Lane 12 No. 3, Lokmanya Tilak Colony, Near BAPS Study Group Shri Swami Narayan Mandir, Dadar East, Mumbai-400014 13 28-06-2019 Direct Taxes Half Day Workshop on Return Filing Provisions under A.V. Room, 4th Floor, Jai Hind College, 9 the Income-tax Act Churchgate, Mumbai-400 020 14 29-06-2019 Membership & Full Day Seminar on Direct Taxes at Hotel Centre Point, 24, Central Bazar Road, 9 Ramdaspeth, Nagpur-440010 Public Relations

15 29-06-2019 Commercial & Allied Workshop on the New Benami Law and Prevention of Hotel West End, Terrace Hall, Churchgate, 10 Laws and Direct Money Laundering Act Mumbai-400 020 Taxes 16 04-07-2019 — Notice of 92nd Annual General Meeting Garware Club House, Wankhede Stadium, 15 D Road, Churchgate, Mumbai-400 020 17 06-07-2019 Accounting and Half Day Workshop on Amendments to SEBI Listing Babubhai Chinai Hall, 2nd Floor, IMC, 13 Auditing Regulations Churchgate, Mumbai-400 020 18 10-08-2019 Student and 5th CTC Football Cup Dr. Antonia Da Silva High School, S. K. Bole 14 Membership & Road, Opp. Kabutarkhana, Dadar (W), Mumbai Public Relations 19 — Membership & Public Japanese Language Conversation Course CTC Conference Room, 3 Rewa Chambers, 12 Relations Ground Floor, 31, New , Churchgate, Mumbai 20 — — Renewal Notice 2019-20 — 16 21 — — Unreported Decisions of Tribunal — 17-18 22 — — Unreported Decisions (Service Tax) — 18-19

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ACCOUNTING AND CORPORATE CONNECT COMMITTEE AUDITING COMMITTEE Chairman: Paras K. Savla | Vice Chairman: Jiger Saiya Chairman: Heneel Patel | Vice Chairman: Tejas Parikh Convenors: Vitang Shah, Saumil Saparia Convenors: Arpita Desai, Deepak Shah | Advisor: Jayesh Gandhi Advisor: Sujal Shah

STUDY COURSE ON VALUATION Time : 9.30 a.m. to 6.30 p.m. Day & Date: Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Saturday, 8th June, 2019 Mumbai-400 020

FEES: Registration up to MEMBERS: ` 2,200/- + ` 396/- (18% GST) = ` 2,596/- NON-MEMBERS: ` 2,500/- + ` 450/- (18% GST) = ` 2,950/- 6th June, 2019 Registration after MEMBERS: ` 2,500/- + ` 450/- (18% GST) = ` 2,950/- NON-MEMBERS ` 2,800/- + ` 504/- (18% GST) = ` 3,304/- 6th June, 2019

ABOUT THE PROGRAMME There is an ever-increasing need for financial valuation as part of a transaction. Owners and financial executives services pertaining to ownership interests and assets in non- also participate in valuations of their companies or segments public companies and subsidiaries, divisions, or segments of of their companies. This programme attempts to provide a public companies. sound understanding of financial Valuation for all users and Several of the auditing firms provide valuation services. providers of valuation services and to advance consensus There are also analysts and appraisers who practice out views on some of the more troublesome aspects of Valuation of various types of organizations, including appraisal science. The program also introduces the basics of business companies, valuation portals, and consulting firms. Valuation, various valuation methods and interpretation of Valuations are also performed by investment bankers, usually the results of Valuation.

SR. NO. TOPICS SPEAKERS

1 Valuation – Overview, Approaches and Methodologies CA Ravishu Shah

2 Valuation Application: CA Pinkesh Billimoria Valuation for Merger and Demerger, Small and Medium Enterprises, Investment Entities Distressed Asset Valuation Start-up Entities Valuation

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

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

STUDENT ORIENTATION COURSE Time : 4.30 p.m. to 8.00 p.m. Days & Dates: Fees : Student ` 900/- + ` 162/- (18% GST) = ` 1,062/- Thursday, 13th, (Inclusive of Student Membership for one year) Friday, 14th & Venue : Juhu Jagruti Hall, Mitibhai College, JVPD Scheme, Saturday, 15th June, 2019 Vile Parle West, Mumbai-400 056

We are pleased to announce Student Orientation Workshop at of work that they would be engaged in during articleship training. Western Suburb of Mumbai. The workshop is uniquely designed The Objective: To provide basic knowledge of all the day-to-day to acquaint the students in some of the important aspects of article activities at office along with understanding of Subjects in practical ship. This course would give students a sneak-peek into the nature manner.

SR. NO. TOPICS SPEAKERS 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 COMMITTEE Chairman: 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 ACT Day & Date: Time : 4.00 p.m. to 8.00 p.m. Friday, 14th June, 2019 Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-20 FEES MEMBERS NON-MEMBERS ` 750/- + ` 135/- (18% GST) = ` 885/- ` 900/- + ` 162/- (18% GST) = ` 1,062/-

The Income Tax Department stepped-up the efforts to tax light of the recent Supreme Court ruling in the case of NRA Steel. illegitimate income. This Financial Year the Tax Department will Who should attend the programme? scrutinizing the return filed pertaining to the previous year in The programme would benefit the Tax Practitioners, Tax Lawyers, which there was demonetization of high value currency notes. Chartered Accountants, Accounting staff and Article clerks There is a need to refresh the amendments made relating to pursuing CA or students pursuing law. demonetization and also re-learn the applicability of Section 68 in

SR. NO. TOPICS SPEAKERS 1 Implication of Demonetization on Income Tax Laws CA Mahendra Sanghvi 2 Section 68-Recent Controversies & Issues CA Reepal Tralshawala

www.ctconline.org THE CTC NEWS | June 2019 Page 6 INTERNATIONAL TAXATION COMMITTEE Chairman: 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 Days & Dates: TAXATION, 2019 – The Grand Bhagwati, Surat Thursday, 20th June 2019 to Venue : The Grand Bhagwati, Magdalla Circle, Dumas Road, Sunday, 23rd June 2019 Surat-395007, Gujarat Dear Colleagues, The participants of Residential Conference on International Taxation have always 20th June 2019 to Sunday, 23rd June 2019 at The Grand Bhagwati, Surat offering shown great interest in fostering the exchange of knowledge in evolving landscape of the exciting opportunity for thorough exchange of knowledge and ideas in this important international taxation. The objective of such an exchange is to delink participants from field. day to day work and spend quality time in developing skillset on topics which promises Surat is known as Diamond Capital of and is hub of entrepreneurs in textile to be future of international taxation. Industry. The Grand Bhagwati Surat is known for its excellent food, distinguished In the 13th RRC we will focus on how BEPS and evolving law on international hospitality and magnificent banquet space. taxation impacts traditional ways of structuring transactions and ways of doing business. The organizers of the conference invite all lawyers, chartered accountants, tax Additionally, development of laws on FEMA, PMLA, BMA continues to be steadfast. professional in industry to participate in high numbers and also encourage junior Special sessions are planned to discuss development on this arena. Following that goal, members to participate in this unique conference. the 13th Residential Conference on International Taxation will be held on Thursday, The outline of the topics to be discussed at the conference is as under: JUDICIAL CORNER SPEAKERS Inaugural Address Hon’ble Justice Shri P. P. Bhatt – President ITAT, Mumbai Panel 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, GROUP DISCUSSION PAPERS INCLUDING CASE STUDIES SPEAKERS Structuring of Outbound Investments – Post BEPS Scenario CA Gautam Doshi Permanent Establishment – Past, Present and Future CA H. Padamchand Khincha Key Transfer Pricing Risks – BEPS Impact CA Sanjay Tolia PAPERS FOR PRESENTATION SPEAKERS Advance Pricing Arrangements–Practical Aspects and Mock APA Shri Sanjeev Sharma, IRS & CA P. V. Srinivasan Prevention of Money Laundering Act – Recent Developments and Experience Dr. Dilip K. Sheth Guest Speaker Mr. Akhilesh Ranjan, Member CBDT* PANEL DISCUSSION PANELLIST Case 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 ZONE International Tax Premiere League (ITPL) - Match Raas Garba and Dandiya Night Team Building Activities We have crossed 270 registrations. Fees structure for residential participants is under: Residential participants – Twin sharing room MEMBERS ` 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 only PARTICULARS FEES Members and Non Members ` 10,000/- + ` 1,800/- (18% GST) = ` 11,800/- *Confirmation Awaited Notes: 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

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INTERNATIONAL TAXATION COMMITTEE Chairman: 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 ASPECTS Day & Date: Time : 9.00 a.m. to 9.30 a.m. (Registration) Saturday, 15th June, 2019 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 is therefore pleased to announce a seminar on section with very frequently by almost all tax professionals. With 195 to focus on key issues surrounding the advisory and developments like BEPS / MLI, POEM and GAAR, the certification under section 195. practice of international taxation in fields like advising on applicability of section 195 and issuing certificates under The organizers of the seminar invite all lawyers, chartered Form No. 15CB has undergone a qualitative change. accountants, tax professionals in industry to participate There are many issues surrounding the same which one in high numbers and also encourage junior members to needs to be abreast of. The International Tax Committee participate in this unique seminar.

Fees MEMBERS ` 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 SPEAKERS 1 Inaugural Session Eminent Faculty 2 Recent Developments under Section 195, Section 195 versus Section 197, Issues CA N. C. Hegde of online application, Dependant Agent Permanent Establishments and practical problems in issuing Form No. 15CB 3 Recent Developments and Controversial Issues in taxation of Interest, and Capital CA Vishal Shah* Gains (including gains on sale of immovable property) including Indirect Transfers and impact of Section 195 4 Recent developments and Controversial issues in taxation of Non-Residents on FTS CA Shabbir Motorwala & Royalty Income and TDS under section 195, reimbursements agency commission, e-commerce and digital transactions, payment to professionals, software payments, exhibitions etc. 5 Recent development and controversial issues in Taxation of Income of Non-Resident Eminent Faculty from Shipping & Aircraft (including Logistics & Transportation sector) 6 Brains’ Trust Session including Case Studies and Q & A under Section 195 of the Chairman: CA T. P. Ostwal Act Panellists: CA Shefali Goradia* and Shri M. P. Lohia, Ex-IRS *Subject to confirmation

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DIRECT TAXES COMMITTEE Chairman: 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 Day & Date: Time : 3.00 p.m. to 8.00 p.m. Friday, 28th June, 2019 Venue : AV Room, 4th Floor, Jaihind College, Churchgate, Mumbai-400 020

Fees MEMBERS ` 900/- + ` 162/- (18% GST) = ` 1,062/- NON-MEMBERS ` 1,000/- + ` 180/- (18% GST) = ` 1,180/- STUDENT ` 500/- + ` 90/- (18% GST) = ` 590/- There is also a need to refresh the amendments applicable to making adjustments proposed u/s. 143(1)(a) which are not factually A.Y. 2019-20 under the Act before the return filing season. The accurate. department has notified the return of income for the A.Y. 2019-20 These filings are important as otherwise penal provisions are and the returns now require additional information which have to attracted. be provided by the assessee. Who should attend the programme? Professionals face several issues in filing income tax return and The programme would benefit the Tax Practitioners, Tax Lawyers, CPC is issuing notices u/s. 139(9) due to faulty filing Chartered Accountants, Accounting staff and Article clerks doing of return and even automated intimation u/s. 143(1) are received CA or students pursuing law. SR. NO. TOPICS SPEAKERS 1 Amendments relevant for filing Return of A.Y. 2019-20 and Legal Aspects of Filing CA Nihar Jambusaria Income Tax Return 2 Aspects of e-filing return and the changes in the new Income Tax Returns notified CA Avinash Rawani for A.Y. 2019-20. 3 Interaction with Income Tax Authority (CPC) on issues faced in return filing Senior CBDT Officials from CPC, Bengaluru

MEMBERSHIP & PUBLIC RELATIONS COMMITTEE Chairman: 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) Day & Date: Time : 10.00 a.m. to 5.30 p.m. Saturday, 29th June, 2019 Venue : Hotel Centre Point, 24, Central Bazar Road, Ramdaspeth, Nagpur-440010

SR. NO. TOPICS SPEAKERS 1 Post Demonetisation Tax Issues and unexplained Cash Credit (Sec. 68), unexplained Mr. Devendra Jain, Advocate Money, Expenditure (Secs 69 to 69D, 115BBD, 271 AAC) 2 Section 56 – Burning Issues CA Anish Thacker 3 Restructuring of Firms, Companies, LLPs and Private Trusts CA Abhitan Mehta 4 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)

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COMMERCIAL & ALLIED LAWS COMMITTEE DIRECT TAXES COMMITTEE Chairman: Rahul Hakani | Vice-Chairman: Ranit Basu Chairman: Devendra Jain | Vice-Chairman: Dinesh Poddar, Convenors: Nihar Mankad, Loshika Bulchandani, Shilpa Abhitan Mehta | Convenors: Viraj Mehta, Dharan Gandhi, Thakar | Advisor: Pravin Veera Nimesh Chothani | Advisor: K. Gopal

WORKSHOP ON THE NEW BENAMI LAW AND PREVENTION OF MONEY LAUNDERING ACT Day & Date: Time : 09.00 a.m. to 5.00 p.m. Saturday, 29th June, 2019 Venue : Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020

FEES Up to 15th June, 2019 After 15th June, 2019 Member ` 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/-

After a very successful seminar on the new Benami Law last year, Committee are coming out with a workshop on the new Benami the Commercial and Allied Laws Committee and Direct Taxes Law as well as the Prevention of Money Laundering Act.

SR. NO. TOPICS SPEAKERS

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

2 Practical Issues arising out of actions taken by the Benami law implementation Mr. Ashwani Taneja, Advocate agencies, such as attachment, bonafide purchaser etc [Ex-ITAT Member] Handling and representation of the proceedings before the Initiating Officers (IO), Adjudicating Authority & Appellate Tribunal.

3 Role of Tax Lawyers and Chartered Accountants in Handling of notices and Mr Rajendra [Ex-ITAT attachment of properties issued by the Enforcement Directorate under PMLA (Anti- Member] 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

4 Panel Discussion on Interplay between Income Tax, Benami Law, Black Money Act Panel Discussion and PMLA: CA T. P. Ostwal (a) Whether parallel actions can be taken under all the above laws. Mr. Ashwani Taneja, Advocate (b) Whether applicability of all these laws is cumulative or mutually exclusive. [Ex-ITAT Member] Mr. Rajendra [Ex-ITAT (c) Is there any distinction in onus to prove rule of evidence etc. in implementation Member] and application of these laws. Dr. Dilip K. Sheth (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.

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COMMERCIAL & ALLIED LAWS COMMITTEE CORPORATE CONNECT COMMITTEE Chairman: Rahul Hakani | Vice-Chairman: Ranit Basu Chairman: Paras K. Savla | Vice Chairman: Jiger Saiya Convenors: Nihar Mankad, Loshika Bulchandani, Shilpa Convenors: Vitang Shah, Saumil Saparia Thakar | Advisor: Pravin Veera Advisor: Sujal Shah SEMINAR ON ISSUES RELATED TO IBC AND RESOLUTION OF DISTRESSED ASSETS Day & Date: Time : 9.00 a.m. to 6.00 p.m. Saturday, 15th June, 2019 Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai-400 020.

FEES MEMBERS NON MEMBERS Up 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 SPEAKERS 1 Keynote Address/Panel Discussion on Resolution of Distressed Assets Eminent Faculty 2 • Key Legal Issues in respect to distressed Assets Mr. Kumar Saurabh Singh, • Discussion on the Impact of Landmark Judgments Advocate • Going concern in liquidation Mr. Sapan Gupta, Advocate • Group Insolvencies CA Vijay Iyer

3 My Journey as IRP: CA Satish Kumar Gupta Critical analysis: Risk, Rewards and Indemnity for the Resolution Process mandated under the code 4 Bidding plans / preferential / undervalued / extortionate / fraudulent transactions. Dr. Rajendra Ganatra Role of other professional like Forensic Auditors etc. 5 IBC – Tax Challenges Eminent Faculty 6 Investment Opportunities in M&A and Stressed Assets and Management Buy-outs under Eminent Faculty IBC.

MEMBERSHIP & PUBLIC RELATIONS COMMITTEE Chairman: Sanjeev Lalan | Co-Chairman: Sachin Gandhi | Vice Chairman: Jatin Lodaya All are Convenors: Premal Gandhi, Darshak Shah | Advisor: Yatin Desai Cordially LECTURE MEETING ON “DESTIN(Y)ATION OF LIFE” Invited CHOOSING THE PATH TO SUCCESS Time : 5.45 p.m. to 6.15 p.m. - Registration and Fellowship over tea

6.15 p.m. to 7.45 p.m. - Session Day & Date Tuesday, 18th June, 2019 Speaker : Dr. Sundeep Kochar Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-20 We professionals are really busy these days in fulfilling the the flow of acceptance and understanding by creating a new compliances daily. However it is also important to discover space for much needed experimental speeches, talks, discussions yourself and act accordingly. When you discover yourself, you with concrete proof and unshakeable belief. As every individual discover happiness which leads you to path of success. Our destiny is different in his own journey, being aware of their abilities, is one thing that we cannot change. But finding success and limitations and potential they are thrust into a privileged position happiness through our destined path is a task that can be unfolded. of personal awareness and knowledge of channelling their energy in the right way and Most Importantly at the right time, will lead Importance of the Session: to path of success. This session will be taken by Dr. (Hon.) Sundeep Kochar who Dr. Sundeep’s “Holistic Approach” helps individual realise their helps people discover their strengths and weaknesses by motivating true potential and freedom to own their happiness which leads to them to lead a more spiritual and contended life. He has changed symbiotic productivity.

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MEMBERSHIP & PUBLIC RELATIONS COMMITTEE Chairman: Sanjeev Lalan | Co-Chairman: Sachin Gandhi | Vice Chairman: Jatin Lodaya Course Starting Convenors: Premal Gandhi, Darshak Shah | Advisor: Yatin Desai from 14th June, Jointly with Indo Japanese Association 2019 JAPANESE LANGUAGE CONVERSATION COURSE (NEW CRASH COURSE) Days Friday 6.30 p.m. to 8.00 p.m. Days / Time : Friday evening & Saturday 10.00 a.m. to 11.30 a.m. Saturday morning Venue : CTC Conference Room, 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Churchgate, Mumbai-400 020

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

STUDY CIRCLE & STUDY GROUP COMMITTEE Chairman: 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 Taxes Day & Date: Group Leader : CA Yogesh Thar Thursday, 13th June, 2019 Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

STUDY CIRCLE MEETING (For SC Members only) Time : 11.00 a.m. to 1.30 p.m. Subject : Important Issues on ICDS Day & Date: Group Leader : Mr. K. K. Chythanya, Advocate Saturday, 22nd June, 2019 Venue : Banquet Hall, Ground Floor, Dadar Club, Lane No. 3, Lokmanya Tilak Colony, Near BAPS Shri Swami Narayan Mandir, Dadar East, Mumbai-400014

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

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 Audit Day & Date: Group Leader : CA Jinesh Shah Friday, 7th June, 2019 Chairman : CA S. S. Gupta Venue : AV Room, 4th Floor, Jai Hind College, Churchgate, Mumbai-400 020

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BENGALURU STUDY GROUP MEETING Convenors: Narendra Jain, Vishnu Bagri | Co-ordinators: Tata Krishna, Hanish S. BENGALURU STUDY GROUP Time : 5.00 p.m. to 8.15 p.m. Day & Date: Venue : FKCCI, 3rd Floor, Hall No. 4, Wednesday, 12th June, 2019 K. G. Road, Bengaluru-560 009

Fees FOR 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 Raj 2 Recent Changes in Income Tax Returns and Other Forms (10B, 16 etc.) CA Sudheendra B. R. ACCOUNTING AND AUDITING COMMITTEE Chairman: Heneel Patel | Vice Chairman: Tejas Parikh Convenors: Arpita Desai, Deepak Shah | Advisor: Jayesh Gandhi HALF DAY WORKSHOP ON AMENDMENTS TO SEBI LISTING REGULATIONS Day & Date: Time : 9.30 a.m. to 1.30 p.m. Saturday, 6th July, 2019 Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020 Fees FOR 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 Speakers 1 Overview of the amendments to the listing Regulations CS Makarand Joshi 2 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 TRANSACTIONS Time : 9.30 a.m. to 4.30 p.m. Day & Date: Venue : ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Saturday, 15th June 2019 Next to Atur Centre, Pune-411 016 FEES Free for Pune Study Group Members Non Study Group Members: ` 1,000/- (inclusive of GST) SR. NO. TOPICS SPEAKERS 1 Relevant provisions of FEMA CS Sunil Nanal 2 Relevant Provisions of RERA CA Shreedhar Phathak 3 Panel Discussion - Triveni Sangam – Confluence and Divergence of Accounting, i. Accounting - CA Jayesh Gandhi Income Tax and GST ii. Income Tax - CA Yogesh Thar iii. GST - CA Parind Mehta iv. Moderator - CA Anish Thacker

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STUDENT COMMITTEE Chairperson: Nishtha Pandya | Vice-Chairperson: Niyati Mankad Convenors: Sachin Maher, Pramita Rathi | Advisor: Ajay Singh MEMBERSHIP & PUBLIC RELATIONS COMMITTEE Chairman: Sanjeev Lalan | Co-Chairman: Sachin Gandhi | Vice Chairman: Jatin Lodaya Convenors: Premal Gandhi, Darshak Shah | Advisor: Yatin Desai

5TH CTC FOOTBALL CUP Time : 2.30 p.m. to 8.00 p.m. Day & Date: Venue : Dr. Antonio Da Silva High School, S. K. Bole Road, Saturday, 10th August 2019 Opp. Kabutarkhana, Dadar (W), Mumbai-400 028.

The game of life is a lot like football. You have to tackle your To continue the football fever, the Student Committee and problems, block your fears, and score your points when you get Membership & Public Relations Committee has organised the 5th the opportunity - Lewis Grizzard edition of the CTC Football Cup on special turf, the details of Football is like our profession - it requires perseverance, self- which are as under: denial, hard work, sacrifice, dedication and respect for authority.

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)

You are invited to enroll as a team or individual player or be a Prizes will be awarded to the Winning Team, Runner-up spectator to cheer the players of the CTC. Team and for Overall Best Player. Participation Trophy/ Certificates will be given to all participants. The Rules shall Mandatory for players be intimated to the players in advance. 1. To wear T-shirt, shorts & sports shoes during the Tournament. (Stud Shoes shall not be allowed). Kindly note 1. Players’ selection/allocation to a team for individual 2. To report at the venue on time. enrolments shall be done by the organisers, which shall be 3. To be physically fit (The CTC or organisers shall be in final & binding. no way responsible for any injury or health problems 2. Decisions of CTC, its Office Bearers and the Match occurring to any member/guest.) Referee will be final and binding on all the participants and supporters. 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 Firm / Food preference any, of playing Football Individual (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 Sooooo Let’s Football!!!!!!

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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. Ved Dated : 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.

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RENEWAL NOTICE – 2019-20 Dear Members, SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2019-20 1st 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. Particulars Fees GST @18% Total No. I MEMBERSHIP FEES (YEARLY - RENEWAL) 1 ORDINARY MEMBERSHIP FEES 2,200 396 2,596 2 ASSOCIATE MEMBERSHIP FEES 5,000 900 5,900 3 STUDENT MEMBERSHIP FEES 250 45 295 II CHAMBER'S JOURNAL SUBSCRIPTION - YEARLY (HARD COPIES) 1 JOURNAL SUBSCRIPTION - LIFE MEMBERS 1,200 0 1,200 2 JOURNAL SUBSCRIPTION - NON MEMBERS 2,100 0 2,100 3 JOURNAL SUBSCRIPTION - STUDENT MEMBERS 700 0 700 III CHAMBER'S E-JOURNAL SUBSCRIPTION (SOFT COPIES) 1 E-JOURNAL SUBSCRIPTION - LIFE MEMBERS (YEARLY) 700 126 826 2 E-JOURNAL SUBSCRIPTION - NON MEMBERS (YEARLY) 1,000 180 1,180 3 E-JOURNAL SUBSCRIPTION - STUDENT MEMBERS (YEARLY) 700 126 826 4 E-JOURNAL SUBSCRIPTION - SINGLE JOURNAL 200 36 236 IV ITJ SUBSCRIPTION 1 INTERNATIONAL TAX JOURNAL SUBSCRIPTION 2,000 0 2,000 V STUDY CIRCLES & STUDY GROUPS (RENEWAL) 1 STUDY GROUP (DIRECT TAXES) 2,200 396 2,596 2 STUDY CIRCLE (DIRECT TAXES) 1,750 315 2,065 3 STUDY CIRCLE (INTERNATIONAL TAXATION) 1,500 270 1,770 4 STUDY CIRCLE (INDIRECT TAXES) 2,000 360 2,360 5 STUDY CIRCLE (ALLIED LAWS) 1,500 270 1,770 6 SELF AWARENESS SERIES 600 108 708 7 INTENSIVE STUDY GROUP ON DIRECT TAX 1,750 315 2,065 8 FEMA STUDY CIRCLE 1,500 270 1,770 9 STUDY GROUP ON ACCOUNTING & AUDITING (Refer Note below) 1,800 324 2,124 10 CAPITAL MARKET STUDY CIRCLE (Refer Note below) 1,800 324 2,124 11 PUNE STUDY GROUP 3,500 630 4,130 12 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.org 9. 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.

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UNREPORTED DECISIONS OF TRIBUNAL By Ajay R. Singh, Advocate 1. S. 54 : Capital Gains - Utilisation of gift received from The assessee company during the year under consideration was husband for purchase of new house - Amount invested in new engaged in the business of undertaking jobs for construction of asset need not be entirely sourced from capital gains. [S.45] 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, The assessee claimed deduction u/s. 54 of the Act on account of after claiming deduction u/s. 80HHC. Subsequently, the AO investment in residential house this long term capital gains was observed on a perusal of the records that the assessee company declared at nil. The AO also noted that the investment is not made was not engaged in the business of manufacturing or trading of any within the stipulated period and did not allow the exemption u/s. commodity/product and was only undertaking jobs for construction 54 of the Act. It was noted by the AO that the investment is not of tanks/vessels for storage of chemicals on labour basis and/or on made before the due date of filing of return of income u/s. 139(1) turnkey basis. The AO held that the assessee was not eligible for by the assessee. The AO also noted that the investment in new claim of deduction u/s. 80HHC. The CIT(A) upheld the order of house is made by assessee’s husband and not assessee to the extent the AO and dismissed the appeal. of ` 70 lakh. Hence, he stated that the assessee is not entitled for claim of deduction u/s. 54 of the Act. The ITAT disposed off the appeal vide a consolidated order for AY 1999-2000, AY 2003-04 & AY 2004-05. The Tribunal in its Aggrieved, assessee preferred the appeal before CIT(A). The aforesaid order observed that the assessee was not eligible for CIT(A) agreed with the contention of the assessee that where the claim of deduction u/s. 80HHC. Insofar the fresh and the alternate investment is made within the due date of filing of return u/s. 139 claim raised by the assessee for deduction u/s. 80HHB of the IT of the Act the assessee is entitled for exemption u/s. 54 of the Act Act was concerned, the Tribunal restored the matter to the file of . In present case total investment was made before due date of the the AO for considering the same after affording an opportunity Act. Accordingly, the CIT(A) allowed the claim of deduction to the of being heard to the assessee. The Tribunal while restoring extent of ` 12,62,000/-. But he confirmed the action of the AO and the matter to the file of the AO relied on its earlier order for denied the deduction u/s. 54 of the Act on the amount of ` 70 lakh AY 2000-01 wherein the AO was specifically directed to give which was paid by husband of the assessee as gift. opportunity to the assessee to create the necessary reserve account On further appeal the ITAT held that as regards the dispute of as per the provisions of Sec. 80HHB. The AO in the course of entitlement of claim of deduction u/s. 54 of the Act whether the the set aside proceedings declined to allow the claim of deduction investment made within the stipulated period or not, the CIT(A) under Sec. 80HHB on the grounds that conditions specified in has allowed the claim in favour of assessee and Revenue has not Sec. 80HHB has not been fulfilled on time. The CIT(A) upheld the challenged the same. It means, Revenue has not filed any appeal view taken by the AO and dismissed the appeal. and the same is confirmed by the ld Sr. DR. The only dispute Further, in the second round appeal filed by the assessee before the remains is whether the amount gifted by assessee’s husband of ITAT it was held that the adverse inferences drawn by the lower ` 70 lakh on 13-10-2014 by making direct payments to the builder authorities on the ground that the assessee had neither claimed out of NRO saving Bank Account can be considered as payment any deduction u/s. 80HHB nor fulfilled the conditions laid down made by assessee. For this, the ld Counsel for the assessee relied in 80HHB, is without any merits. In fact, it was only pursuant on the decision of this ITAT in the case of Deepak A. Shah vs. ITO to the direction by the Tribunal which had restored the matter to in ITA No. 526/Mum/2016 for AY 2010-11, wherein the Tribunal the file of the AO for considering the assessees alternate claim following the decision of ACIT vs. Dr. P. S. Pasricha (2008) 20 of deduction u/s. 80HHB, that the latter had became conversant SOT 468 (Mum) in ITA No. 6808/Mum/2003 for AY 2001-02 vide of its entitlement under the said statutory provision. The assessee order dated 11-01-2008 has held that the same fund may or may in compliance of the requirement contemplated in Sec. 80HHB not be utilized for the purchase of another residential house but had obtained the certificate in Form 10CCAH, dated 08-11-2011 the requirement of law is that the assessee should purchase a duly signed and verified by a CA and the assessee had maintained residential house within the period and the source of fund is quite separate ledger accounts in respect of the profits and gains derived irrelevant. In the instant case, the facts are that the assessee has from execution of the foreign project. Further the assessee was received gift from her husband and invested a sum of ` 70 lakh in obligated to have debited an amount equal to 50% of its profit and purchase of new residential house. The assessee has fulfilled all the gains for the year under consideration i.e., AY 1999-2000 to the conditions prescribed u/s. 54 of the Act and hence, she is entitled profit and loss account and credited the same to a reserve account for claim of deduction. The appeal of assessee was allowed. viz., “Foreign Projects Reserve Account”, which was to be utilised Sanmeetkaur M. Kohli vs. ITO -3(1)(1), ITA No. 6500/ by it during the period of five years next following for the purpose Mum/2017, DOH: 18/04/2019 (Mum.)(Trib.) of its business other than for distribution by way of a dividend or profits had submitted it along with a revised computation of 2. S. 80HHB : Deduction – Projects outside India – the assessee income with the AO in the course of the set aside proceedings, company derives profit from foreign Projects and complied vide its letter dated 08-11-2011. The assessee had submitted before with the entire requirement - deduction u/s. 80HHB ought to the lower authorities the copies of the agreements with the foreign be allowed. company viz. National Oil (Tanzania) Ltd. along with the other

www.ctconline.org THE CTC NEWS | June 2019 Page 18 requisite details as regards the same, and had also explained the ` 34,00,000/- received by the assessee from Muchhala Magic Land facts of its case before them. 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 The assessee had duly satisfied the requisite conditions which of the assessee. rendered it eligible for claim of deduction u/s. 80HHB, therefore, the lower authorities had erred in declining to allow the said claim ITAT held that the provisions of Sec. 2(22)(e) of the Act could of deduction on the basis of incorrect observations. The claim not be applied on the ground that it was not holding any shares of deduction raised by the assessee u/s. 80HHB of the Act be in the lending company. Reliance was placed on the decision of allowed. 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 M/s. Prashanth Projects Limited. vs. DCIT-10(3), ITA No. 4308/ the decision of Hon’ble Jurisdictional High Court in the case of Mum/2015, DOH: 12/04/2019 (Mum.)(Trib.) CIT vs. Universal Medicare (P) Ltd. reported in 324 ITR 3. S. 2(22)(e) : Deemed dividend – Not a shareholder–Addition 263(Bom). The decision of Hon’ble Delhi High Court in the cannot be made as deemed case of Ankitech P. Ltd. had been approved by the Hon’ble Supreme Court in the case of CIT Delhi vs. Madhur Housing The assessee company had received loan from Muchhala and Development Company in Civil Appeal No. 3961 of 2013 Magic Land Pvt. Ltd. During the year the ld. AO observed that along with other civil appeals vide order dated 5-10-2017 by Mr. Arunkumar J. Muchhala is holding 32.18% of shares of fully endorsing the views of the Hon’ble Delhi High Court Rithika Hotels Pvt. Ltd., i.e., the assessee company and was also supra. Accordingly, it was held that assessee company was not a holding 32% shares in Muchhala Magic Land Pvt. Ltd. The ld. shareholder in the lending company and hence, the provisions of AO also observed that as on 31-03-2012, Muchhala Magic Land Section 2(22)(e) of the Act cannot be made applicable to the facts Pvt. Ltd. had accumulated profits of ` 5,25,64,264/- and as on of the instant case. 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 DCIT-11(1)(1). vs. Ritika Hotels Pvt. Ltd., ITA Nos. 6131 & were duly complied with by the assessee and hence, the loan of 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 Appellant from DLF Ltd. was the consideration for transfer equated with ‘Benefits to arise out of land’ for the of such Development Rights. Therefore, the Department was purposes of definition of ‘Immovable Property’ as of the view that the Appellants are liable for service tax on enumerated under Section 3 (26) of the General Clauses such transfer of development rights. Act, 1897 read with Section 65B(44) of the Finance Act, 1994? Whether transfer of such “Development Rights” The Appellant submitted that there was no transfer of is in that sense “transfer of immovable property” and development rights from the Appellant to DLF Ltd. as the therefore, not taxable under the Finance Act, 1994? Land Owning Companies remained the owner of the land. The Appellant also argued that the ‘transfer of development Facts and Pleading: DLF Commercial Projects Corporations rights’ being immovable property is beyond the ambit (hereinafter referred to as the ‘Appellant’) is engaged in of Finance Act, 1994. The Appellant contended that the the business of construction and development of integrated rights given to developer to develop the land and sell township. The Appellant entered into an agreement with super-structure in perpetuity shall fall within the meaning DLF Ltd. As per the said agreement, the Appellant was of ‘benefit arising out of land’ under the definition of receiving business advances. The said business advances ‘Immovable Property’ as enumerated under Section 3 (26) were transferred by the Appellant to various companies who of the General Clauses Act, 1897. Thus, the Development were using the same for purchasing lands or development Rights fall outside the purview of ‘Service’ as per section rights in the land. The said companies were known as 65B(44) of the Finance Act, 1994. Land Owning Companies. After the construction, Land Owning Companies along with DLF Ltd., entered into a Judgment: The Hon’ble Appellate Tribunal held that as the tripartite agreement with prospective buyers for sale of the Appellant was never the owner of the land, it could not have constructed property. transferred the development rights to DLF Ltd. The Hon’ble Appellate Tribunal also held that the advance received from The case of the department was that the Land Owning DLF Ltd. was transferred by the Appellant to the Land Companies transferred the Development Rights to Appellant Owner Companies. Hence, the Hon’ble Appellate Tribunal which was in turn, transferred by the Appellant to DLF Ltd. held that it is mere transaction of sale and purchase of land The department alleged that the advances received by the by the Appellant for DLF Ltd. for further development. The

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Hon’ble Appellate Tribunal further relied upon the Hon’ble Hon’ble Appellant Tribunal held that the consideration was Allahabad High Court’s judgment in the case of Bahadur paid by the Appellant to the foreign service provider i.e. it is and Others vs. Sikandar and Others and the Hon’ble the foreign service provider who has charged for the taxable ’s judgments in the cases of Chheda services and not the Appellant. Hence, the said taxable value Housing Development Corporation vs. Bibijan Shaikh Farid of service on which service tax was paid by the Appellant and Shadoday Builders Private Ltd. and Ors, vs, Jt. Charity under reverse charge basis shall not fall under the aggregate Commissioner and Ors. to held that the ‘Transferrable value for the purposes of Notification No. 6/2005-ST dated Development Right’ is immovable property as it is a ‘benefit 01.03.2005. arising out of land’. Therefore, Hon’ble Appellate Tribunal held that the development rights are excluded from the ambit M/s. Crossword Agro Industries vs. C.C.E. & S.T. of ‘service’ as per Section 65B(44)(a)(i) of the Finance Act, , CESTAT, Ahmedabad, decided on 03.05.2019 in 1994 read with Section 3 (26) of the General Clauses Act, the Final Order No. A/10784/2019. 1897. 3. Whether a discount received by an Air Ticket Agent from DLF Commercial Projects Corporations vs. C.S.T. an IATA for purchasing an air ticket of a passenger from Gurugram, CESTAT, , decided on 22-05-2019 the IATA amounts to ‘commission’ and thus, taxable in the Final Order No. 60554/2019. under the category of ‘Business Auxiliary Services’? M/s. Mahan Travels (hereinafter 2. Whether value of taxable services on which service tax Facts and Pleadings: referred to as ‘the Appellant’) are agent for booking air is payable under the Reverse Charge Mechanism should tickets however, they are not registered with the IATA be included in the ‘Aggregate Value’ for the applicability agent. The Appellant purchase tickets from IATA agent of Small Service Provider (SSP/SSI) Exemption under and in turn sell it to the travellers. However, the tickets are Notification No. 6/2005-Service Tax dated 1-3-2005? directly booked by IATA agent in the name of the respective Facts and Pleading: M/s. Crossword Agro Industries traveller. The IATA agent in turn gives discount to the (hereinafter referred to as the ‘Appellant’) are inter alia Appellant. engaged in manufacturing & exporting of agricultural diesel engines. The Appellant had been paying transport charges Department alleged that the ‘discount’ received by the and discharging the service tax liability under reverse charge Appellant is nothing but ‘commission’ received by the mechanism as per section 66A of the Finance Act, 1994. Appellant from IATA agent for booking tickets of the During the financial year of 2005-06, the Appellant had travellers and hence the said transaction is taxable under not paid service tax on output services as its entire taxable ‘Business Auxiliary Services’. value was under the basic exemption limit of ` 4 lakhs as The Appellant contended that the Appellant is purchasing described under Notification No. 6/2005-ST dated 1-3-2005. the tickets on principal to principal basis. The Appellant Department alleged that the value of taxable service received first purchases the said ticket from an IATA agent and then by the Appellant on which the Appellant has discharged sells it to the respective travellers. The Appellant further service tax liability under Reverse Charge Mechanism is contended that the discount received by the Appellant from to be considered as part of the ‘Aggregate Value’ for the IATA agents is nothing but a trade discount and hence, no purpose of grants of exemption Notification No. 6/2005-ST service tax is payable on the same. dated 1-3-2005. Judgement: The Hon’ble Appellate Tribunal held that the Appellant contended that the ‘aggregate value’ for the even though the tickets were directly booked in the name of purposes of Notification No. 6/2005-ST dated 1.3.2005 travellers, the Appellant had firstly purchased the said tickets do not include the value of taxable service received by an from IATA agents on principal to principal basis. Thereafter, assessee on which service tax liability has been discharged the Appellant has independently sold the said tickets to the under Reverse Charge Mechanism. The ‘aggregate value’ travellers. The Hon’ble Appellate Tribunal held that the said includes only those taxable services charged in the first discount cannot be considered as ‘commission’ rather it is consecutive invoices issued or required to be issued by the nothing but a trade discount/trade margin. Thus, the Hon’ble assessee. Therefore, the Appellant are eligible for the Small Appellate Tribunal held that the present transaction is one Service Provider (SSP/SSI) Exemption. of sell and purchase and the trade margin does not amount to any ‘service’, hence the same is beyond the scope of Judgement: The Hon’ble Appellate Tribunal held that Finance Act, 1994. the ‘aggregate value’ for the purposes of Notification No. 6/2005-ST dated 01.03.2005 only includes the amount M/s. Mahan Travels vs. C.C.E. & S.T. Ahmedabad, charged by the assessee. In so far as service tax paid by CESTAT, Ahmedabad, decided on 08.05.2019 in the Final the Appellant under reverse charge basis is concerned, the 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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Registered with Registrar of Newspaper for India under R. NO. MAHENG/2015/67505 Posted at Mumbai Patrika Channel Sorting Office, Mumbai-400 001. Postal Registration No. MCS/210/2019-21 Date of Posting : 1st and 2nd of every month Date of Publishing : 1st of Every Month

Non-receipt of the CTC News must be notified within one month from the date of publication, which is 1st of Every Month. 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. Editor : Shri Kishor Dwarkadas Vanjara

Posted at Mumbai Patrika Channel Sorting To Office-Mumbai 400 001. Date of Publishing 1st of Every Month Date of Posting : 1st & 2nd June, 2019

If undelivered, please return to :

THE CHAMBER OF TAX CONSULTANTS 3, Rewa Chambers, Ground Floor, 31 New Marine Lines, Mumbai 400 020 Tel.: 2200 1787 / 2209 0423 / 2200 2455 E-mail : [email protected] l Visit us at : www.ctconline.org WhatsApp No.: 9004945579 FB Page: https://www.facebook.com/ctcconnect Follow us on:

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