Credit Cannot Be Blocked In Electronic Credit Ledger If Sufficient Balance Not Available: Gujarat High Court

The Gujarat High Court stated that there cannot be any blocking of the credit in electronic credit ledger if there is no sufficient balance available. The Division Bench, comprising Justices Bhargav D. Karia and Niral R. Mehta, was hearing a case where the assessee contested the blocking of Input Tax Credit (ITC) amounting to ₹2,44,05,567 in its electronic credit ledger. Rule 86A of CGST Rules, 2017 empowers the Commissioner or authorized officer to restrict debit of fraudulently...

Assessee Who Forgot To Claim 'Long Term Capital Loss' In Income Tax Return Can Seek Revision U/S 264: Gujarat High Court

The Gujarat High Court recently allowed an assessee, who failed to claim 'Long Term Capital Loss' in its Income Tax return, to seek revision under Section 264 of the Income Tax Act, 1961. A division bench of Justices Bhargav D. Karia and Mauna M. Bhatt also reiterated that a Commissioner has to decide an assessee's revision application under Section 264, on merits. The provision empowers the Income Tax Commissioner to revise certain orders. This revision can be initiated by the...

S. 119(2)(b) Income Tax Act | Gujarat HC Directs Commissioner To Avoid Pedantic Approach, Condone One Year Delay In Filing Return

The Gujarat High Court recently allowed the petition preferred by a woman seeking to condone over one year delay in filing of her income tax return for an assessment year. A division bench of Justices Bhargav D. Karia and Mauna M. Bhatt also criticized the “pedantic approach” in deciding Petitioner's application under section 119(2)(b) of the Income Tax Act, 1961. The provision empowers CBDT to direct Income Tax authorities to allow refund/ deduction claims or any other relief under...