The Honourable High Court of Delhi recently in the case of Smt Sunita Gupta v Union of India has an occasion to examine the validity of re-initiation of proceedings by Initiating Officer (IO) under the Prohibition of Benami Property Transactions Act, 1988 (Benami Act). The Honourable High Court after considering the facts of the case has held that there is nothing in law to stop the IO from re-initiating the proceedings if the procedural defects were made correct and the issue of notice is not barred by limitation.

The facts of the case before the Honourable High Court are as follows. On 25.01.2017, the IO has passed an Order of Provisional Assessment in terms of Section 24(3) of Benami Act restraining Smt Sunita Gupta from transferring or charging the property amounting to Rs 2,99,000/- deposited in the savings bank account stating that beneficial owner of such property (amount) is Mr Nitin Jain.

Read more: Re-Intitation of Proceedings by IO - Validity - Benami Act

Section 122 of Transfer of Property Act, 1882 defines the phrase ‘Gift’. Vide such section, ‘gift’ is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.

The taxation of ‘gift’ was one interesting journey. In order to deal with taxation of gifts, the legislature has introduced, the Gift Tax Act, 1958 with effect from 01.04.1958. The said act was in effect till 30.09.1998 and been rescinded later. The important aspect of Gift-Tax Act was the tax was on the donor. In 2004, the legislature has re-introduced the taxation of gifts in specified circumstances by insertion of Section 56(2)(vii) in the Income Tax Act, 1961 (Act/Income Tax Act). Vide Section 56(2)(vii), the tax on gifts received was to be paid by donee in specified circumstances.

Read more: Gift of Immovable Property whcih is not a Capital Asset

AMENDMENT TO COMPANIES (ACCEPTANCE OF DEPOSIT RULES), 2014: 

In an ace move, the Ministry of Corporate Affairs, has made a important amendment to the Deposit Rules, to put a check on the flouting of the Deposit Rules by the Corporates. 

As all are aware the Companies (Acceptance of Deposit Rules), 2014, as amended from time, governs the procedure for acceptance of deposits by eligible Companies, and other compliances related thereto, including of filing of Forms and Return on Deposits. 

At the same time Rule 2 (1) (c) of the said rules, provides for “those items which are not considered as Deposits”, and such companies are required to comply with the deposit rules and accordingly no form of return of deposits are required to be filed by them. 

Read more: SBS i 17th Edition

NOTFICANTIONS

1. GST RATE CHANGES IN CASE OF SPECIFIED GOODS:

The applicable GST rates for the following goods have been changed in the manner as detailed in the below table. The changed rates are effective from 01.01.2019;

Read more: SBS i 16th Edition