Date Of Possession Of New Property To Be Considered As Date Of Acquisition; ITAT Allows Deduction

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the date of possession of new property to be considered as date of acquisition and the assessee is entitled to deduction under Section 54 of the Income Tax Act on the purchase of new property.The bench of Raj Kumar Chauhan (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the date of possession of new property should be considered as the date of acquisition of the property. By entering into an...

Dept. Can't Re-Determine MRP Of Laptops Imported By Acer India Supplied With Laptop Bag: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department cannot re-determine the MRP of laptops imported by Acer India.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that though the adjudicating authority has stated that Rule 6 of 2008 is applied to redetermine RSP, it can be seen that the method of arriving at the redetermined MRP is not within the principles or provisions of Section...

Indirect Taxes Weekly Round-Up: 19 To 25 May 2024

Delhi High CourtAdditions U/s 69C Based Merely On CBIC Information Can't Be Sustained: Delhi High CourtCase Title: Bausch And Lomb India Private Limited Vs Assessment UnitThe Delhi High Court sets aside the assessment order and remits the matter to AO on the ground that the additions of Rs.70.10 Cr. made under Section 69C as unexplained expenditure based merely on information received from Central Board of Indirect Taxes & Customs (CBIC) is unsustainable.Allahabad High CourtS.2(e) UPVAT |...

Set Top Boxes Satisfy Definition Of 'Inputs', Dish TV Entitled To 100% Credit: CESTAT

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Dish TV is entitled to 100% credit as the set top boxes satisfy the definition of 'Inputs'.The bench of P. K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) has observed that the set top boxes satisfy the definition of inputs as they are goods used by the output service provider for the provision of the output services. There cannot be any fallacy in the stands taken by the...

CBDT Notifies Cost Inflation Index For Assessment Year 2025-26 At 363

The Central board of Direct Taxes (CBDT) has notified the final Cost Inflation Index (CII) for Assessment Year 2025-26) at 363.“This notification shall come into force with effect from the 1st day of April, 2025 and shall accordingly apply in relation to the assessment year 2025-26 and subsequent assessment years,” the CBDT notification read.The CII number for Assessment Year 2024-25 was 348.A Cost Inflation Index table is used to calculate the long-term capital gains from a capital asset...

Letter By Joint Secretary Can't Override Plain And Unambiguous Provision Of Income Tax Act, 1961 And Finance Act: Calcutta High Court

The Calcutta High Court has held that the letter by the joint secretary cannot override the plain and unambiguous provisions of the Income Tax Act, 1961, and the Finance Act.The bench of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj has observed that the letter of the Joint Secretary merely informs that “the matter has been looked into and the board is of the opinion that the tax rate applicable in the case of ABN AMRO BANK would be the same as for an Indian company at the...

Customs Duty Amount Involved Is Less Than Threshold Limit: CESTAT Dismissed Dept.'s Appeal

The Chandigarh Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has dismissed the dept.'s appeal, in which the customs duty amount involved is less than Rs. 50 lakhs.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appeals do fall within the instructions as prescribed in the circular dated November 2, 2023. The CESTAT, the High Courts, and the Supreme Court have been consistently dismissing the appeals of the Revenue if they are...

Mere Challenging Tribunal's/High Court's Order Before Supreme Court Not Valid Ground To Ignore Tribunal's Order, Unless Stayed: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere filing of an appeal to challenge the order of the Tribunal or the High Court before the Apex Court is not really a valid ground to ignore or disregard the orders of the Tribunal, unless and until the same are stayed, suspended, or finally set aside.The bench of Binu Tamta (Judicial Member) has observed that the authorities below have seriously erred in upholding the recovery of the refunded amount...

Retraction After A Period Of 3 Years And 9 Months Was Rightly Rejected By Commissioner Of Appeals: Calcutta High Court

The Calcutta High Court has held that the alleged retraction on the grounds of the appeal filed before the Commissioner after a period of three years and nine months was rightly rejected by the Commissioner of Appeals.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the confessional statement of the accused, if found to be voluntary, can form the sole basis for conviction. Thus, in the absence of any valid retraction, the statement recorded by the...

Additional Income Can't Be Treated As Concealed Income: Kerala High Court

The Kerala High Court has held that additional income cannot be treated as concealed income for the purposes of Section 271(1)(c) of the Income Tax Act.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that a satisfactory explanation has been offered by the assessee, well before the issuance of a notice to him under Section 148 of the Income Tax Act, and the admission of additional income made by the assessee has been accepted by the department that...

Once TPO Passed Order, AO Obliged To Pass An Assessment Order In Accordance With Section 92CA(4): Delhi High Court

The Delhi High Court has held that once the Transfer Pricing Officer (TPO) had proceeded to pass the order of October 17, 2017, all that the AO was obliged to do was pass an assessment order in accordance with the procedure prescribed in Section 92CA(4) of the Income Tax Act.“The prescription of nine months would also be applicable to a fresh order that is liable to be made in accordance with Section 92CA of the Act. This is since Section 153 of the Act speaks not merely of assessments but also...

Assessment Order Passed Without Conducting Search And Seizure Not Sustainable In Law: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that once the search and seizure were conducted and an assessment order was passed by invoking Section 153A of the Income Tax Act for the AY 2006-07 to 2012-13, a fresh order without conducting a search and seizure operation would not be sustainable in law.The bench of Justice Sanjeev Prakash Sharma and Justice Sudeepti Sharma has observed that when there was no search conducted under Sections 132 and 132A of the Income Tax Act as against the petitioner...