NICAI Update
CA Raj Chawla
Quotes of the day:
1. Great thing about life is that it always gives us so many chances And the best part is, it never asks us why we failed last time.
2. Relationship is like a Garden. It's beautiful when watered with Love, Hug, Tears & Cheers. But it DRIES up if left Untouched. So keep in TOUCH always.
NICAI Update:
1. The Supreme Court considered a special leave petition filed by the Revenue against a judgment dismissing its income tax appeal. At the outset, the Supreme Court condoned the delay but, after hearing counsel for the petitioner, held that the case did not warrant exercise of discretionary jurisdiction under Article 136 of the Constitution of India. Consequently, the petition was dismissed, and all pending applications stood disposed of.
2. The underlying litigation arose from an Income Tax Appeal filed under Section 260A of the Income-tax Act, 1961 against an order of the Income Tax Appellate Tribunal (ITAT), Mumbai dated 30 October 2023. The Revenue proposed several substantial questions of law, primarily challenging the ITAT’s decision to delete an addition of ₹3.73 crore made under Section 68 of the Act on account of alleged unexplained cash credits in the form of unsecured loans.
3. Bombay High Court heard a writ petition challenging a show cause notice dated 20 December 2024 issued under Section 74(1) of the Central Goods and Services Tax Act, 2017. The notice proposed to demand and recover GST of ₹27,00,000 from the petitioner on the ground of alleged non-payment of GST on the transfer of leasehold rights. According to the notice, the petitioner had assigned its leasehold rights in an MIDC plot to another party for a consideration of ₹1.50 crore.
4. The Reserve Bank of India issued new banking rules on calculating capital charges for foreign exchange risk, seeking to align the country's currency risk governance with international standards. Banks must compute foreign exchange risk capital requirements on a continuous basis at both consolidated and standalone leve-ls, the central bank said in a draft report. The changes will come into effect from April 1, 2027.
5. The RBI has invited comments to the draft that amends provisions governing the calculations of net open positions and the associated capital charge for foreign exchange risk.
6. The banks will also be required to maintain capital for foreign exchange risk at the close of each business day. Additionally, the RBI has also allowed banks to exclude specific "structural" foreign exchange positions from the net open position, subject to strict conditions.
7. The Central Government has initiated the process to operationalise the remaining 10 GWh capacity under the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage. The capacity is earmarked for Grid Scale Stationary Storage (GSSS) applications, a key requirement for integrating renewable energy into the power grid. The Ministry of New and Renewable Energy (MNRE) has begun the process of finalising the unallocated 10 GWh capacity under the ACC PLI scheme and has sent a proposal to the Empowered Group of Secretaries (EGoS) for approval, according to government officials. The EGoS is a high-level inter-ministerial body chaired by the Cabinet Secretary.
8. For CA professional updates and empanelment-related notifications, join CA Empanelment Network: https://www.facebook.com/groups/1381553892168021
With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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