GST Registration Shall Not Be Cancelled For Non-Filing Of Returns If Taxpayer Is Not Found Adopting Dubious Process To Evade Tax: Calcutta High Court

While pointing out that the suspension/ revocation of license would be counterproductive and works against the interest of the revenue, the Calcutta High Court clarified that assessee in such a case would not be able to carry on his business in the sense that no invoice can be raised by the assessee and ultimately would impact recovery of tax. Single Bench of Justice Raja Basu Chowdhury therefore set aside the order cancelling the registration of the assessee subject to the condition...

Remittance Made To Foreign Subsidiary Companies Are Not Taxable In India: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the remittance made by the assessee to the foreign subsidiary companies have been held to be not taxable in India in the hands of the recipient company, there would be no obligation for the payer i.e. assessee company to deduct tax at source under section 195 of the Income Tax Act. The bench of Saktijit Dey (Vice President) and M. Balaganesh (Accountant Member) has observed that the moment a remittance is made to a non...

Proceedings U/s 130 GST Act Can't Be Put To Service If Excess Stock Is Found During Survey Conducted At Business Premises: Allahabad High Court

Referring to the decision in case of Dinesh Kumar Pradeep Kumar Vs. Additional Commissioner [Writ Tax No. 1082 of 2022], the Allahabad High Court reiterated that even if excess stock is found at the business premises of the manufacturer, the proceedings u/s 130 of the UPGST Act cannot be initiated. As per Section 130 of the UPGST Act, the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to ...

Not Mandatory To File Audit Report Along With Return, Can Be Filed Anytime Before Assessment Completion: Delhi High Court

The Delhi High Court has held that the assessee was entitled to claim deductions even where the audit report had not been filed with the return but was submitted before the assessment was completed. The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that Section 10B(8) is clearly couched in terms more imperative than Section 80-IA(7). This becomes manifest from a reading of that provision, which requires the assessee to furnish a declaration before the AO that it...

Rajasthan High Court Quashes Income Tax Reassessment As Income Tax Dept. Failed To Hold Proper Investigation

The Jaipur Bench of the Rajasthan High Court has quashed the income tax reassessment and held that the Income Tax Department had not done any investigation or held an inquiry. There was no other material except the value determined by the A.O. The bench of Justice Avneesh Jhingan and Justice Ashutosh Kumar has observed that the additions were made solely based on the order passed by the AO determining the value of the goods imported. The order passed by the AO was quashed by the Customs, Excise,...

Appeal Against Endorsement Seeking Production Of Account Books Lies Before Joint Commissioner Of Appeals: Karnataka High Court

The Dharwad Bench of the Karnataka High Court has held that the appeal against endorsement seeking production of account books lies before the joint commissioner of appeals.The bench of Justice Jyoti Mulimani has observed that there is an alternative efficacious statutory remedy under Section 62 of the KVAT Act, 2003.The petitioner/assessee is a partnership firm running a bar, restaurant, and lodging. The firm is duly registered under the provisions of the Karnataka Value Added Tax Act, 2003,...

CHA's Employees Can't Be Penalised On Charge Of Wrong Availment Of Drawback By Exporter: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the employees of Customs House Agent (CHA) cannot be penalized on charge of wrong availment of drawback by the exporter.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellants are neither the exporter of the goods nor the CHA. The entire case of overvaluation is attributed to exporters and CHA. As far as the allegation of fraudulent claim of duty...

Sale Consideration Invested In Purchase Of Property, With Prior Permission Of Charity Commissioner; ITAT Deletes Disallowance

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that no disallowance can be made as the sale consideration was invested in the purchase of property with the prior permission of the charity commissioner.The bench of Sandeep Singh Karhail (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) has observed that whenever the properties are purchased, they are shown as applications of funds and claimed as capital expenditures in the computation of income. Similar...

Liquidator Never Informed Of Reassessment Proceedings, Patna High Court Quashes Order

The Patna High Court has quashed the order as the liquidator was not informed of the reassessment proceedings.The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that the liquidator should be noticed and participate in the reassessment proceedings. The notices were all issued to the email of the assessee after the liquidator was appointed, which makes it clear that the liquidator was never informed of the reassessment proceedings. The appellant/assessee is under...

Mistake In Calculation Of Tax As Per Sec 115BBE Can Be Rectified U/s 154 And Not U/s 263: Ahmedabad ITAT Quashes Revision Made By PCIT

Finding that all the additions made by the Assessing Officer u/s 68 r/w/s 115BBE are in consonance with the Income Tax Statute, the Ahmedabad ITAT quashed the revisional exercise of power by the PCIT u/s 263. The power under section 263 of the Income tax Act can be exercised where the order of the Assessing Officer is erroneous and prejudicial to the interest of the revenue. Further, Section 154(1A) of the Income tax Act lays down that rectification can be done for any matter...

Income Already Offered For Taxation Can't Be Taxed Again As Unexplained Cash Credit: Ahmedabad ITAT Deletes Double Taxation By ITO

The Ahmedabad ITAT held that sum credited to sales account can't be treated as unexplained cash credits u/s 68 if they are already included in the total sales declared and taxed. As per Section 68 of Income tax Act, where any sum is found credited in the book of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the AO, satisfactory, the sum so credited may...

Cash Deposits Made By Taxpayer Out Of His Known Source Of Income: Ahmedabad ITAT Deletes Addition U/s 68

The Ahmedabad ITAT held that no addition is permitted u/s 68 once assessee had properly substantiated that cash deposits are made out of his known source of income. Section 68 of Income Tax Act aims to ensure individuals and corporations transparently disclose their income by addressing unexplained cash credits in their books of accounts, placing the responsibility on the taxpayer to prove the legitimacy of such credits. The Division Bench of Suchitra Kamble (Judicial Member) and...