Kerala High Court
Kerala High Court Quashes Income Tax Appellate Order Against AMMA, Directs Fresh Consideration
The Kerala High Court has set aside an order passed by the Commissioner of Income tax (Appeals), against the Association of Malayalam Movie Artists (AMMA), holding that the appellate authority failed to comply with the mandatory requirements under the Income Tax Act.Justice Ziyad Rahman A A, observed that the Commissioner of Income Tax (Appeals) erred by rejecting AMMA's appeal solely on the ground of non-appearance, without addressing the merits of the case as mandated under Section 250(6) of...
Income Tax Act | Revisional Power U/S 263 Cannot Be Invoked When AO Allows Deduction U/S 32AC After Proper Inquiry: Kerala High Court
The Kerala High Court stated that revisional power under Section 263 of the Income Tax Act cannot be invoked when Assessing Officer (AO) allowed deduction under Section 32AC after proper inquiry. Justices A. Muhamed Mustaque and Harisankar V. Menon opined that merely for the reason that AO extended the deduction claimed after carrying out investigations, the exercise of the power under Section 263 of the Act is not required. At worst, the revisional authority can correct the error, if...
GST Levy On Group Health Insurance Policies Challenged; Kerala High Court Grants Interim Relief To Union Bank Pensioners
The Kerala High Court has granted interim relief to retired employees of the Union Bank by allowing them to renew their group health insurance policies without paying the 18% Goods and Services Tax (GST) on the premium.The Court passed the interim order in a writ petition filed by Vinod Mukundan and others, including the All India Union Bank Pensioners & Retirees Federation, challenging the levy of 18% GST on group health insurance policies. While the GST levy on individual health...
S.263 Income Tax Act Can Be Invoked When AO Fails To Address Core Issue In Assessment Order: Kerala High Court
The Kerala High Court held that Section 263 of the Income Tax Act, 1961, can be invoked where the Assessing Officer (AO) fails to address a core issue in the assessment order. The bench opined that the main issue does not appear to have been addressed by the assessing authority while issuing an order under Section 143(3) of the Act. Since the assessment order does not appear to have addressed the issue with reference to the competing provisions, exercise of the power under Section 263...
S.36(1)(vii) Income Tax Act | Closing Individual Debtor Accounts Not Mandatory For Bad Debt Deduction: Kerala High Court
The Kerala High Court stated that closing individual debtor accounts is not mandatory for bad debt deduction under Section 36(1)(vii) of the Income Tax Act, 1961. Section 36(1)(vii) of the Income Tax Act, 1961, deals with the deduction of bad debts. It allows the taxpayer to claim a deduction for bad debts that have been written off in the books of accounts during the previous financial year. Justices A. Muhamed Mustaque and Harisankar V. Menon, after referring to the case of...
Change In Form Or Rephrasing Of Relief Cannot Defeat Principle Of Constructive Res Judicata: Kerala High Court
The Kerala High Court has recently clarified that changing the form or rephrasing of a relief prayed for cannot defeat the principles of res judicata and constructive res judicata.Justice Mohammed Nias C.P. was considering a writ petition filed by a registered MSME (Micro, Small and Media Enterprise) that had sought protection under the Central Government notification, which mandates banks and financial institutions to refer stressed MSME accounts for corrective measures.According to the...
Change In Form Or Rephrasing Of Relief Cannot Defeat Principle Of Constructive Res Judicata: Kerala High Court
The Kerala High Court has recently clarified that changing the form or rephrasing of a relief prayed for cannot defeat the principles of res judicata and constructive res judicata.Justice Mohammed Nias C.P. was considering a writ petition filed by a registered MSME (Micro, Small and Media Enterprise) that had sought protection under the Central Government notification, which mandates banks and financial institutions to refer stressed MSME accounts for corrective measures.According to the...
Limitation Under Rule 68B Of Income Tax Act Does Not Apply To RDDB Act Proceedings: Kerala High Court
The Kerala High Court held that the limitation under Rule 68B of the second schedule to the Income Tax Act does not apply to RDDB Act (Recovery of Debts Due to Banks and Financial Institutions Act, 1993) proceedings. Justice Mohammed Nias C.P. stated that Rule 68B of the Second Schedule to the Income Tax Act, 1961, has no mandatory application to recovery proceedings under the RDDB Act. It is also relevant that under Sections 19(22) and 25 of the RDDB Act, the Recovery Officer derives...
Income Tax Act | Non-Production Of Form 3CL Isn't Material Suppression; Not Grounds To Reopen Assessment U/S 147: Kerala High Court
The Kerala High Court held that the non-production of Form 3CL is not material suppression and is not a valid ground to reopen the assessment under Section 147 of the Income Tax Act. Under Section 35(2AB) of the Income Tax Act, 1961, any expenditure on scientific research is allowable as a deduction. A sum equal to one and one-half times the expenditure is allowed as such a deduction. Section 147 of the Income Tax Act, 1961, empowers the Assessing Officer (AO) to reassess or...
Plea In Kerala High Court Challenges Tribunal Reforms Act, Appointments Of DRT Ernakulam Presiding Officer & DRAT Chennai Chairperson
A petition has been moved before the Kerala High Court challenging the appointments of Retired Justice G. Chandrasekharan as the chairperson of the Debts Recovery Appellate Tribunal, Chennai and Retired District Judge, Su Williahm, as presiding officer of the Debts Recovery Tribunal, Ernakulam.The plea states that the two appointments were not in accordance with the directions laid down by the Supreme Court in Rojer Mathew v South Indian Bank Ltd., mandating selection of tribunal members to...
Printing Digital Images/Letters On Paper Constitutes Services, Attracts 18% GST Not 12%: Kerala High Court
The Kerala High Court has held that printing digital images/letters on paper constitutes services, and attracts 18% GST not 12%.The question before the bench was to determine whether the assessee's printing activities ie. converting the figures, letters, photographs etc., in a digital form, into physical format by printing it on paper were liable to GST at 12% or 18%.Justice Ziyad Rahman A.A. examines both HSN Code 4911 and SCN 998386 and noted that HSN Code 4911 mainly refers to the supply of...
Income Tax Act | Assessee Can Challenge Cash Credit Addition U/S 68 In Remand Proceedings; Tribunal's Direction Not Binding: Kerala High Court
The Kerala High Court held that the assessee is free to challenge the cash credit addition under Section 68 of the Income Tax Act in remand proceedings; the tribunal's directions are not binding. As per Section 68 of the Income Tax Act, 1961, any sum found credited in the books of a taxpayer, for which he offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, may be charged to income-tax...