News Round Up

     1.  STARTUP ECOSYSTEM:

    India is now home to the world's third most vibrant startup ecosystem with over 140,000 recognized startups, more than a hundred unicorns and over $150 billion in funding raised.

     2.    DIRECT TAX NEWS:

   Direct Tax collections after refund stood at Rs 11.26trn during the period April 1 to October 10 2024 accounting for 51% of the target for FY25 as per official data released. The collections so far are up 18.4% which is higher than the full year projections of 12.8%.  

    Supreme Court has held that the Taxation and Other Laws 2021 will continue to apply to assessments under the Income Tax Act after 01/04/2021 if any actions or proceedings specified under the substituted provisions of the Income Tax Act falls for completion between 20/03/2020 and 31/03/2021. 

     3. INCOME TAX CASE LAWS:

    The Tribunal while ruling in favor of the assessee held that, for assessments under Section153A in the case of Search and Seizure invalid reference will not be included in the limitation period.

     4.  CERTIFICATE OF REGISTRATION FOR NBFCs:

    The Delhi High Court addressed the cancellation of the petitioner’s NBFC registration due to the failure to meet the mandated Net Owned Fund (NOF) of Rs 200 lakhs by the specified deadline. The petitioner, a NBFC since May 2001, was subject to RBI’s regulatory framework, which required them to maintain a NOF of Rs 100 lakhs by March 2016 and Rs 200 lakhs by March 2017.

    While the petitioner managed to achieve the required NOF by March 2018, they were issued a show cause notice for non compliance with the initial deadline. Despite submitting  a response the RBI deemed it unsatisfactory and proceeded to cancel the company’s certificate of registration.

      (RBG Leasing and Credit Limited Vs Reserve Bank of India & Anr;  Delhi High Court)