Settlement Consideration Liable To Be Recognized As “Capital Gains” And Not “Profits In Lieu Of Salary”: Delhi High Court

The Delhi High Court has held that the settlement consideration is liable to be recognized as capital gains and not “profits in lieu of salary.”.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the fundamental mistake which the Tribunal committed was failing to bear in mind the distinction between a “perquisite” and “profits in lieu of salary," both of which are dealt with separately in Section 17 of the Income Tax Act, 1961. “Profits in lieu of salary," which...

Requirement Of Filing Audit Report In Form 10B Is Only Procedural: Delhi ITAT Grants Exemption To Educational Trust U/s 11

The New Delhi ITAT held that non uploading of Form 10B within the date prescribed under the Income tax Act would not be fatal to the claim of exemption u/s 11. Section 11 of the Income Tax Act provides exemptions to income derived from property held under trust or institutions wholly for charitable or religious purposes to the extent that such income is applied to charitable and religious purposes in India. Referring to the decision of Ahmedabad Tribunal in the case of ITO Vs....

Income Tax Additions Can't Be Made On The Basis Of Superficial Inquiry: Bombay High Court

The Bombay High Court has held that income tax additions cannot be made on the basis of superficial inquiry.The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan has observed that the findings which were arrived by the CIT(A) as also by the tribunal would suggest that the department did not dispute the assessee's sales, as there there was no discrepancy between the purchases as shown by the the assessee and the sales declared. The respondent/assessee is in the business of trading...

Revenue Department Can't Take Fresh Ground Which Was Not Disclosed To Taxpayer, While Passing Re-assessment U/s 148A(D): Delhi HC

Finding major flaw in the fundamental premise of the Revenue Department that the investment made by the taxpayer in shares amounted to “income” which has escaped assessment, the Delhi High Court quashed the reopening proceeding initiated u/s 148A. Observing that foundational material alone would be relevant for the purposes of evaluating whether reassessment powers were justifiably invoked, the High Court clarified that Revenue Department cannot take a fresh ground while passing order...

'Unsecured Loans' Can't Be Treated As Income U/s 68 Once Legitimacy Of Credits Stands Proved: Ahmedabad ITAT

Referring to the decision in case of Commissioner of Income-tax, Rajkot-I vs. Ayachi Chandrashekhar Narsangji [2014] 42 taxmann.com 251 (Guj), the Ahmedabad ITAT reiterated that no addition should be made u/s 68 as well as section 69C, if the repayment of loans is accepted by the department in subsequent years. Section 68 of the Income tax Act aims to ensure individuals and corporations transparently disclose their income by addressing unexplained cash credits in their books of...

Resolution Plan Approved Under IBC, Income Tax Reassessment Not Sustainable: Delhi High Court

The Delhi High Court has quashed the income tax assessment order and held that the statutory injunct which would operate in respect of any claim which may pertain to a period prior to the Resolution Plan being approved.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that if a company is unable to pay its debts, which should include its statutory dues to the Government and/or other authorities and there is no plan which contemplates dissipation of those debts in a...

Gauhati High Court Directs Assistant Commissioner To Release Amount Of Interest On Delayed Excise Duty Refund To GAIL

The Gauhati High Court has directed that assistant commissioner to release the amount of interest on delayed excise duty refund to GAIL India.The bench of Justice Devashis Baruah has observed that the Division Bench writ petition, while disposing of the writ petition, held that Section 11B of the Central Excise Act, 1944 did not exclude a claim of refund made in terms of the notification dated 08.07.1999. The Division Bench observed and directed that the petitioners would be entitled to interest...

Bombay High Court Directs Govt. To Constitute A Committee To Decide SVLDRS Declaration Filed On 30th December 2019

The Bombay High Court has directed to constitute a committee to decide the declaration that was filed by the petitioner on 30th December 2019 and, on or before 30th September 2024, dispose of the declaration in accordance with law.The bench of Justice K.R. Shriram and Justice Jitendra Jain has observed that the amount payable has been quantified before 30th June 2019. The scheme has the twin objectives of liquidation of past disputes pertaining to central excise and service tax on the one hand...

CESTAT Quashes SCN Issued Against Fruit Seller Not Engaged In Any Service Tax Leviable Activity

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the show cause notice issued against fruit sellers who are not engaged in any service tax-leviable activity.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the show cause notice did not establish that the appellant was providing any service. The show cause notice was sent to some address in Navi Mumbai, whereas the appellant is conducting his...

Revisional Jurisdiction Available , Writ Not Maintainable Against First Appellate Authority Order : Kerala High Court

The Kerala High Court has held that the writ petition is not maintainable against the first appellate authority's order under the Kerala Building Tax Act.The bench of Justice A. K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has granted the liberty to the appellant to prefer a statutory revision before the District Collector against the order, by which the First Appellate Authority affirmed the assessment order of the Tahsildar, assessing the buildings belonging to the appellant to building...

Appellate Order Can't Be Issued Only In Hindi: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the appellate order under Section 107 of the CGST Act, 2017 cannot be issued in the State of Andhra Pradesh, in Hindi only.The bench of Justice R Raghunandan Rao and Justice Harinath.N. directed that the orders passed by the Commissioner (Appeals) would not come into effect until English copies of the orders are served on the petitioners, and the limitation for the petitioners to take steps against such orders would commence only when the copies of...

Promotion And Marketing Services Not “Intermediary Services”, Australian Company Eligible For 'Export Of Services Benefits': CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the promotion and marketing services provided by the Australian company to foreign educational universities and institutions do not fall under the category of “intermediary services,” and the assessee is eligible for the benefit of the export of services.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that Intermediary Service has been defined by Rule...