Tax
HC Upholds J&K Govt's Decision To Withdraw Budgetary Support Scheme 2018 For Reimbursement Of IGST To Manufacturing Units
The Jammu and Kashmir and Ladakh High Court has upheld the UT government's decision to withdraw the 'Budgetary Support Scheme', notified in the year 2018 for providing budgetary support to manufacturing units in the UT, by reimbursement of Integrated Goods and Service Tax. A division bench of Justices Sanjeev Kumar and Rajesh Sekhri observed that the Scheme did not create any legitimate expectation in the units nor did it attract promissory estoppel on the government. It reasoned that the...
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...
Deduction U/S 80-IA Is Eligible For Industrial Undertakings Even If Infrastructural Development Is Performed With State's Nodal Agency: Calcutta HC
The Calcutta High Court recently confirmed the deduction u/s 80IA(4) to an Infrastructural development company, regarding development of a mechanised port handling system by entering into an agreement with a nodal agency recognised by the Andhra Government. The Division Bench comprising Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya observed that deduction u/s 80IA(4) is legislated to promote industrial undertaking engaged in the infrastructural development, and ...
Taxpayer Can't Be Denied ITC For Merely Filing GST Form Manually If Functionality Issues Are Attributable To Dept: Bombay High Court
Recently, an issue cropped up, where it was emphasized that technicalities created by the Department and not the taxpayer, should not be put forth by the department to defeat the statutory rights and entitlement of the taxpayers.The Bombay High Court ruled that concerned Revenue officials (Respondent) cannot deny the benefits of accrued ITC (input tax credit) to the assessee (Petitioner) only because the prescribed forms were not filed electronically but were filed manually.Just because the GST...
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...
Assessee Can't Claim ITC For Transportation If Costs Aren't Included In Assessable Value Of Goods For Payment Of Central Excise Duty: Kerala HC
The Kerala High Court stated that assessee cannot claim input tax credit for transportation services if transportation costs are not included in assessable value of goods for payment of central excise duty. The Division Bench of Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “………the assessee did not include the transportation costs in the assessable value of the goods for the purposes of payment of Central Excise duty. Under such circumstances, the assessee cannot...
Allotment Letter By Developer Shall Be Treated As 'Construction' For Benefit Of Set-Off Of Capital Gains U/S 54: Kolkata ITAT
Referring to the CBDT Circular No. 872 dated Dec 16, 1993, the Kolkata ITAT clarified that allotment of flats/houses by Cooperative Societies and other Institutions whose scheme of allotment and construction are similar to Delhi Development Authority (DDA) should be treated as 'construction' for purpose of Section 54 and 54F. While treating the allotment letter by the developer as 'construction activity', the ITAT granted the benefit of set off of capital gain to the purchaser...
Entity Operating, Developing, And Maintaining Infrastructure Facility Is Eligible For Benefit U/S 80IA Of IT Act: Pune ITAT
Referring to the decision of CIT vs. ABG Heavy Industries Ltd. (2010) 322 ITR 323, the Pune ITAT reiterated that an enterprise can claim deduction u/s 80IA if it develops, operates and maintains the infrastructure facility, subject to commencement of operation & maintenance of the infrastructure facility after April 01, 1995. The Bench of R.K. Panda (Vice President) and Astha Chandra (Judicial Member) observed that “requirement that the operation and maintenance of the...
Issuance Of Summons U/S 70 Of CGST Act Doesn't Initiate Proceedings U/S 6(2)(B) Of CGST Act: Kerala High Court
The Kerala High Court held that the initiation of an enquiry or the issuance of summons under Section 70 of the CGST Act cannot be deemed to be initiation of proceedings for the purpose of Section 6(2)(b) of the CGST Act. The Bench of Justice Gopinath P. observed that “The term 'initiation of any proceedings' is no doubt a reference to the issuance of a notice under the provisions of the CGST/SGST Acts and the initiation of an enquiry or the issuance of summons under Section 70 of the...
Power To Issue Notice For Scrutiny Assessment U/S 143(2) Not Limited To Assessing Officer Or Officers Of NaFAC: Delhi HC
The Delhi High Court has held that the power to issue notice for scrutiny assessment under Section 143(2) of the Income Tax Act, 1961 is not restricted to the Assessing Officer or the officers of National Faceless Assessment Centre (NaFAC) alone. As per the statute, a notice for scrutiny assessment under Section 143(2) of the Act can be issued by the “Assessing Officer or the prescribed income-tax authority, as the case may be”. In the case at hand, notice under Section 143(2) of the...
Income Derived By Foreign Entity For Rendering Technical Assessment Services Doesn't Constitute FTS: Delhi ITAT
The Delhi ITAT held that income derived by foreign entity for rendering technical assessment services will not constitute as Fees for Technical Services (FTS) under Article 12(4)(b) of India-Singapore DTAA. The ITAT held so after finding that income was derived by Respondent/ Assessee (a Singapore based company) on account of services rendered towards technical integrity assessment/ scanning of off-shore pipelines under sea, through Magnetic Tomography Method (MTM) technology to...
Bharti Airtel Not Liable To Pay TDS Towards Remittance Of Bandwidth Charges And Agency Fees: Delhi ITAT
The Delhi ITAT held that the bandwidth charges remitted by the Appellant/ assessee (Bharti Airtel) to the non-resident service providers cannot be treated as royalty either under the applicable treaty provisions or u/s 9(1)(vi). Since bandwidth charges are not royalty, the ITAT held that assessee was not required to deduct tax at source on such receipts. Where the payment for use or right to use computer software, falls within the definition of royalty u/s 9(1)(vi) of Income tax...