Tax Cases Weekly Round-Up: 22 May To 28 May 2022

Supreme Court Case Name: Union of India And Anr. v. M/s. Mohit Minerals Through Director Citation: 2022 LiveLaw (SC) 500 Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax (GST) on the 'composite supply', which includes supply of goods and supply of services of transportation, insurance, etc. in...

Loss Arising Out Of Sale Of Government Securities Is A Trading Loss: ITAT

The Visakhapatnam Bench of the Income Tax Appellate Tribunal (ITAT) held that the loss arising out of the sale of government securities is a trading loss. The two-member bench of Duvvuru Rl Reddy (Judicial Member) and S. Balakrishnan (Accountant Member) observed that the treatment of securities of the AFS (available for sale) categories has to be seen in contradiction and contrast with securities of the HTM (held to maturity) categories, which are purchased and held for the purpose of ...

Income Tax Penalty Can't Be Imposed For Committing Unintentional Error In Form-16: ITAT

The Pune bench of the Income Tax Appellate Tribunal (ITAT) consisting of S.S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has ruled that the income tax penalty cannot be imposed for committing an unintentional error on Form-16. The appellant/assessee is an individual who filed a return declaring a total income of Rs. 5,39,360. A notice under section 143(2) of the Income Tax Act was issued seeking an explanation regarding the return of income. According to...

Failure Of Assessee To Reply To Income Tax Notice Due To COVID: ITAT Directs Fresh Adjudication

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) held that the assessee could not respond to the notices in view of the pandemic situation, which has to be accepted as a reasonable cause.The two-member bench headed by N.V. Vasudevan (Vice President) and Chandra Poojari (Accountant Member) set aside the orders of the CIT (A) and remanded the issue to the CIT (A) for a decision afresh after affording the assessee an opportunity to be heard. The ITAT directed the assessee to...

Delay In Filing Appeal Based On COVID-19 Reasons: ITAT Imposes Penalty Of Rs.25,000

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) headed by Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) has imposed a penalty of Rs. 25,000 on the assessee for the delay of 1217 days in filing the appeal due to COVID-19. The appellant/assessee has challenged the order of CIT (A) in the matter of assessment framed by AO under section 143(3) of the Income Tax Act. The sole issue in the appeal was disallowance under section 14A. In an assessment...

Weekly Round-Up of Tax Cases: May 15 To May 21

Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council are not binding on the Union and the State Governments. A bench led by Justice DY Chandrachud held that the Parliament...

Husband Entitled Capital Gain Exemption For Asset Bought In The Name Of The Wife: ITAT

The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Dr. S. Seethalashmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) held that the husband was entitled to a capital gain exemption for assets bought in the name of the wife. The assessee, Kaushlendra Singh, sold immovable property for a consideration of Rs.14,75,000. The value of which was evaluated at Rs. 14,79,960 by the Stamp Duty Authority. Out of sale consideration, the assessee made an...

No Further Verification Required If Cash Deposit Is Up To Rs 2.5 Lakhs During The Demonetization: ITAT Delhi

The Delhi Bench of ITAT, consisting of judicial member Chandra Mohan Garg, has held that no further verification is required in the case of an individual earning income from salary, who has deposited an amount of up to Rs 2,50,000 during the demonetization period. The assessee Aniket Agarwal filed his income tax return, which was selected for limited scrutiny to verify the cash deposited by the assessee during the demonetization period. The assessee explained the source of cash deposits...

Consideration Paid For Purchase Of Advertisement Space Does Not Amount To 'Royalty' Under Income Tax Act: ITAT Chennai

The Chennai Bench of ITAT has ruled that consideration paid for purchase of advertisement space does not amount to 'royalty' under the Income Tax Act, 1961. The Bench, consisting of members Mahavir Singh (Vice President) and Dr. M. L. Meena (Accountant Member), held that the Finance Act, 2016 recognizes providing advertising space as a 'specified service', which is subject to Equalisation Levy. The ITAT added that the contention that sale of advertising space was 'royalty' under the...

Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT

The Chennai Bench of ITAT has ruled that subscription money received in advance by the DTH operators is not taxable. The Bench, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), held that the subscription money received by DTH operators is taxable only when the said amount is accrued to them, i.e., when the services are rendered by the DTH operators to the subscribers. The assessee M/s Sun Direct TV Pvt Ltd is a 'Direct To Home' (DTH)...

Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022

Supreme CourtSupreme Court Saves Over 90,000 Income Tax Reassessment NoticesIssued After 2021 Amendment By Deeming Them As Notices Under Section 148A Case Title: Union of India v. Ashish Agarwal Citation : 2022 LiveLaw (SC) 444 The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 (the effective date of amendment of the said provision by the Finance Act, 2021) to be deemed to have...

Capital Gain Exemption Can't Be Denied To Wife For Mere Presence of Husband's Name In Purchase Document: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) headed by N.V. Vasudevan (Vice-President) and B.R. Baskaran (Accountant Member) has ruled that the capital gain exemption cannot be denied to the wife for the mere presence of the husband's name in the purchase document.The appellant/assessee is an individual, and she filed her return of income for the year under consideration, declaring a total income of Rs. 9,06,860. The assessee had earned long-term capital gain on the sale...