Tax
Deadline To File Income Tax Audit Report For FY 2023-24 Extended Till October 7
The income tax department has extended the date for filing the audit report for 2023-24 by 7 days till October 7. The audit report must be filed online via the e-filing ITR portal.A circular issued by CBDT in this regard states,"On consideration of difficulties faced by the taxpayers and other stakeholders in electronic filing of various reports of audit under the provisions of the Income-tax Act,1961 (Act), the Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119...
Rule 86A Of CGST Rules 2017 Does Not Imposes Any Burden To Be Discharged By Taxpayer To Be Entitled To Input Tax Credit: Delhi HC
The Delhi High Court held that the amount of debit to be disallowed from the Electronic Credit Ledger (ECL) should not be more than the amount of the Input tax credit (ITC), which is believed to have been fraudulently availed by taxpayer.At the same time, the High Court clarified that Rule 86A of CGST Rules 2017 is an emergent measure for protection of revenue by temporarily not allowing debit of available ITC in the ECL, which the Commissioner or an officer authorized by him has reasons to...
Capital Asset Financed By Foreign Currency Loan Can Be Capitalized U/s 43A If Such Asset Was Imported From Abroad: Bombay High Court
While explaining that Section 43A is a non-obstante provision, which positively imposes an obligation notwithstanding anything contained in the Income tax Act, the Bombay High Court held that losses due to exchange rate changes on a foreign currency loan taken for import of a capital asset must not be treated as revenue expenditure.Section 43A of Income tax Act requires companies to capitalize expenses that are required to be capitalized as per the accounting standard, so that companies cannot...
Industrial Benefit Scheme Extended By State Government Can't Be Withdrawn By Electricity Department On Basis Of Audit Objection: Patna High Court
Referring to the decision of Shanta Mani Hand Made Paper Industries Vs. The State of Bihar & Ors [CWJC No. 2941 of 2010], the Patna High Court reiterated that supplementary bills which are punitive in nature, cannot be raised upon taxpayer and benefit granted by State government cannot be withdrawn based on mere audit objection.The High Court reiterated so after finding that the subsidy granted to the petitioner by the State government in the form of Industrial Incentive policy was withdrawn...
Credit Card Fees Payable To Foreign Counterpart Of Indian Banking Company Is Not Taxable In India: Delhi High Court
The Delhi High Court held that fees received by the foreign branch of banking company for extending a credit line to the account holder outside India, would not be taxable in India.While noting that the amount payable by the credit card holders would clearly be a debt incurred outside India, the Division Bench of Justice Yashwant Varma and Justice Ravinder Dudeja observed that fee in respect of such transactions would not be taxable in India. Facts of the caseThe funds mobilized abroad were...
Liberty Given To Revenue In SC's Abhisar Buildwell Judgment To Initiate Reassessment Proceedings Doesn't Overcome Limitation U/S 149 Income Tax Act: Delhi HC
The Delhi High Court has made it clear that the Supreme Court judgment in Abhisar Buildwell, which granted liberty to the Revenue Department to initiate reassessment proceedings under Sections 147/148 of the Income Tax Act- in case of completed/ unabated assessment, if no incriminating material is found during the search- cannot be construed to be an authority to override the limitation prescribed under Section 149 of the Act.The bench of Justices Yashwant Varma and Ravinder Dudeja clarified...
Himachal Pradesh HC Says Rule 86B Of CGST Rules Limiting Discharge Of Output Tax Liability Through ITC In Electronic Credit Ledger Appears To Be Ultra Vires HPGST Act But Leaves Issue Open
The Himachal Pradesh High Court recently observed that Rule 86B of the Central Goods and Services Tax (CGST/HPGST) Rules, 2017, which restricts use of Input Tax Credit (ITC) in the Electronic Credit Ledger for releasing Output tax, appears to be ultra vires the HP Goods and Services Tax Act 2017.Rule 86B stipulates that ITC in the Electronic Credit Ledger can be used to discharge 99% of output tax liability. 1% of the output tax liability is to be paid in cash.Bench of Chief Justice M.S....
Payment To Non-Employed Director As Sitting Fees Is Not Salary, Hence Liable To Service Tax: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made to a non-employed director as director's sitting fees is not in the nature of salary; hence, the director's fees are liable to the levy of Service Tax.The Bench consists of Ramesh Nair (Judicial Member) and Raju (Technical Member), considered the issue of whether the assessee is liable to pay Service Tax under reverse charge mechanism on the Directors remuneration paid to the...
Society Imparting Knowledge Or Skills Qualifies For 'Education' Label, Entitled To Exemption Under Section 12A Of Income Tax Act: Punjab & Haryana High Court
The Punjab and Haryana High Court held that a society that imparts knowledge or skills qualifies for the 'education' label under the Income Tax Act, making it eligible for tax exemptions under Section 12A of the Income Tax Act, 1961.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “……Vocational training has been now recognized to be an important as any other filed of education, and it is for this reason that National Council for Vocational Training has...
Himachal Pradesh HC To Decide If 12% Free Power Supply To States By Hydro Power Projects Can Be Subjected To GST, Stays 1000+ Cr. Demand Against NHPC
The Himachal Pradesh High Court is set to decide whether free power supply of 12% to the States where distress is caused by hydro power projects, can be subjected to Service Tax or GST.Meanwhile, Division bench of Chief Justice M.S. Ramachandra Rao and Justice Satyen Vaidya has stayed the demand made by the Additional Commissioner of CGST Department on the National Hydroelectric Power Corporation Private Limited.Total liability is more than Rs. 1000 crores in respect of power stations run by...
Continuation Of Proceedings On Ceased Entity Is Not Curable U/s 292B: Delhi High Court
While following the decision of Apex Court in Principal Commissioner of Income Tax, New Delhi vs Maruti Suzuki (India) Limited [(2020) 18 SCC 331], the Delhi High Court held that the initiation or continuation of assessment or reassessment proceedings after a company cease to exist due to merger pursuant to a Scheme of Arrangement, is not sustainable, and cannot be cured by applying Section 292B.As per Section 292B of Income tax Act, the return of income, assessment notice, penalty notice,...
Scheduled Commercial Bank Had Utilized Opening Balance In Bad Debts Account To Reduce Total Bad Debts Written Off: Bombay HC Allows Benefit Of Sec 36(1)(Vii)
The Bombay High Court held that deduction claimed by bank u/s 36(1)(vii) in respect of write off bad debts is allowable without any adjustment to the credit balance in the provision for bad and doubtful debts u/s 36(1)(viia) which was adjusted with the bad debts claimed in the subsequent AY.The High Court held so after finding that the taxpayer had utilized the opening balance in the “bad and doubtful debts account” to reduce the total bad debts written off in claiming the deduction u/s...