Tax
Reopening Based On Entirely New Material Deprives Taxpayer's Right To Object To Re-Assessment: Delhi High Court
The Delhi High Court held that a decision to reopen or reassess cannot be based or sought to be justified either on additional reasons or those which may be supplied subsequently while disposing of objections preferred by an assessee.At the same time, the High Court clarified that the statutory scheme of reassessment neither sanctions vacillation nor can a decision to trigger reassessment be sustained based upon an attempted supplementation aimed at bolstering or buttressing the original...
Order Under S. 73 GST Can't Be Passed Against Company In Corporate Insolvency Resolution Process: Allahabad High Court
The Allahabad High Court has held that order Section 73 of the Goods and Service Tax Act, 2017 cannot be passed a company which is under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Section 73 of the Goods and Service Tax Act, 2017 empowers a proper officer to initiate proceedings if he is satisfied that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised...
Section 80-IA(7) Requirement Deems Fulfilled When Audit Report Filed At Any Time Before Framing Of Assessment: Delhi High Court
The Delhi High Court has held that the assessee to be eligible and entitled to exemptions under Section 11(1) and 11(2) of the Income Tax Act and the alleged ground of non-filing of audit report along with return of income, which was at the best procedural omission, could never be an impediment in law in claiming the exemption.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the electronic submission of Form 10B is essentially a matter of procedure as opposed to...
Bombay High Court Quashes Show Cause Notice Issued Without Mentioning Documents Required To Be Furnished By Assessee
The Bombay High Court has quashed the show cause notice, which was in a printed format with only the period, date, and time filled up and did not give details of the information or documents required to be furnished.The bench of Justice K. R. Shriram and Justice Jitendra Jain has observed that before passing best judgment assessment, Section 23(2) provides that if the registered dealer fails to comply with the terms of any notice issued under the sub-section, the Commissioner shall assess...
Absence Of Diligence On Part Of Applicant Would Disentitle It To Benefit Of Condonation Of Delay As Per Sec 249(2): Pune ITAT
Finding that the assessee has not shown any action or vigilance for a period of more than five years after the assessment order was served upon it, the Pune ITAT held that such inaction and want of diligence on part of applicant would disentitle it to the benefit of Sec 249(2) in condoning the delay. As per Section 249(4) of Income tax Act, in a case where no return of income has been filed by the assessee, then his appeal shall be maintainable before the CIT(A) only if he had paid an...
Interest Income Earned From Deposits With Co-Operative Banks Shall Be Allowed As Deduction U/s 80P(2)(D): Ahmedabad ITAT
The Ahmedabad ITAT allowed deduction u/s 80P(2)(d) on interest income earned from deposits with Co-operative Banks. Section 80P of Income tax Act is applicable solely to primary agricultural credit societies or rural development and primary cooperative agricultural banks. The Division Bench of TR Senthil Kumar (Judicial Member) and Ramit Kochar (Accountant Member) reiterated that “it is only the interest derived from the credit provided to its members which is deductible u/s...
Allahabad High Court Stays Demand Of Rs. 47 Crores Service Charge Against IIT Rorkee
Recently, the Allahabad High Court has granted interim relief to Indian Institute of Technology, Roorkee against the demand of service charge amounting to Rs. Rs. 47,06,67,775/- raised by the Municipal Corporation, Saharanpur.The Municipal Commissioner, Municipal Corporation, Saharanpur, raised certain demand notices against IIT Rorkee imposing service charge of Rs. 3,26,43,795/- per annum retrospectively with effect from the year 2012 till the year 2024-2025, amounting to a total sum of Rs....
Bangalore ITAT Grants TCS Credit To IMFL Dealer Even Though License Was In Name Of Another Person
Referring to the case of Million Traders Bhopal Pvt. Ltd. vs. ADIT [ITA Nos. 124 & 125/Ind/2023], the Bangalore ITAT allowed TCS credit to the entity conducting the business of IMFL, irrespective of the fact that the license was in the name of another person. The ITAT maintained the status quo observing that identical issue was decided in similar fashion in all previous assessment years. The Division Bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant...
Additions U/s 69C On Account Of Excess Stock Can't Be Based On Third Party Statements Alone Without Any Corroboration: Delhi ITAT
The New Delhi ITAT deleted the additions made u/s 69C on account of excess stock found during survey, after finding that those additions were solely based on the statements recorded of third parties, without any corroborative evidence of unaccounted sales. As per Section 69C of Income Tax Act, where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him...
Construction Of Public Library Forms Part Of Charitable Function, Eligible For Section 80G Exemption: Punjab & Haryana High Court
The Punjab and Haryana High Court has held that the construction of public libraries forms part of a charitable function and is eligible for the exemption under Section 80G of the Income Tax Act.The bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth has observed that the ancillary work, which may be carried out by the society for the purpose of enhancing education, would also be treated as work done for charitable purposes. The amount of Rs. 30,00,000/- has been utilized for...
State GST Dept. Can't Take Benefit Of Notification Which Is Ultra Vires CGST Act, 2017: Gauhati High Court
The Gauhati High Court has held that the State GST Authorities cannot take the benefit of Notification No. 56/2023-CE, which is also otherwise ultra vires the CGST Act, 2017.The bench of Justice Devashis Baruah has noted that the GST Council has not made any recommendation till date, and in spite of that, the Central Board of Indirect Taxes and Customs issued a Notification bearing No. 56/2023-CE dated 28.12.2023, thereby extending the period to pass the order under Section 73(9) of the CGST...
Detention Order Can't Be Issued If Driver In Possession Of Valid E-Way Bill In Physical/Electronic Form: Madras High Court
The Madurai Bench of Madras High Court while quashing the detention order held that if an invoice, bill of supply, delivery challan, or bill of entry and a valid e-way bill in physical or electronic form for verification are available, then action may not be initiated. The bench of Justice S.Srimathy has observed that the respondent department issued the notice, carried out the inspection on the same day, and also passed the order on the same day. As per the provisions prescribed, the...