Amount Received In Advance For Services To Be Treated As Income Of Assessee, Chargeable Under Income Tax: Madras High Court

The Madras High Court ruled that any amount received in advance for services should be treated as the income of the assessee and is, therefore, subject to income tax. The Division Bench of Justices R. Suresh Kumar and C. Saravanan observed that “if “Accounting Standards” are properly applied by an assessee, the “accounting income” for the payment of income tax will be available. However, if an assessee fails to adopt “Accounting Standards” properly for computation of income, the...

Entry Made In Dispatch Register Is Not Primary Evidence To Prove Service Of Notice On Assessee: Orissa High Court

The Orissa High Court has made it clear that an entry in the dispatch register maintained by the Revenue is not primary evidence to show service of notice on an assessee. In the case at hand, Petitioner-assessee was aggrieved by rejection of application made under section 154 in Income Tax Act, 1961 for rectification. Petitioner was issued a notice for scrutiny assessment under Section 143(1). It was the Petitioner's case that he was erroneously assessed in spite of being entitled...

Owner Of Electric Vehicle Purchased Prior To October 14, 2022 Can't Seek Refund Of Tax Citing Subsequent Exemption Notification: Allahabad HC

The Allahabad High Court has held that the owner of an electric vehicle which was purchased prior to October 14, 2022 cannot seek refund of tax citing a subsequent notification exempting the payment of One Time Tax. Petitioner had sought refund of One Time Tax paid in respect of his Hybrid Vehicle purchased on October 13, 2022. The relief was sought on the strength of a notification issued by the State providing tax exemption for electric vehicles purchased and registered from the...

TDS Deposited In Wrong PAN By Employer: Gauhati HC Denies Interest U/S 244A Of IT Act, Says It Applies Only When Refund Is Delayed By Dept

The Gauhati High Court has made it clear that interest on refund under Section 244A of the Income Tax Act, 1961 applies only to those cases where refund is delayed by the Income Tax Department. Justice Devashis Baruah thus declined interest to a construction contractor, whose TDS was deposited in the wrong PAN number by the Defence Ministry's Border Roads Organisation. The bench also noted that even if the amount was deposited in the correct PAN number, Petitioner was not entitled to...

GST | Assessee Entitled To Fresh Notice If Initial Notice U/S 73 Was Missed Due To Being Uploaded Under 'Additional Notices' Tab: Allahabad HC

The Allahabad High Court has held that an assessee is entitled to fresh notices demanding unpaid tax or short tax under Section 73 of the Goods and Service Tax Act, 2017, if the initial notices were not duly communicated to the assessee. A division bench of Chief Justice Arun Bhansali and Justice Vikas Budhwar relied on Ola Fleet Technologies Pvt. Ltd. v. State of UP (2024) whereby “benefit of doubt” was given to the assessee since notices issued to it did not show up on the assessee's...

[Income Tax] Assessing Authority Can't Reassess Prior Years Without Inquiry While Determining Relevant Year's Assessment: Kerala High Court

The Kerala High Court stated that while determining the assessment of relevant years assessing authority cannot determine the assessment for earlier years without enquiry. The Division Bench of Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “…….we fail to understand how the assessing authority, as well as the First Appellate Authority, while considering assessment proceedings for the assessment years 2011-12 could have embarked upon an enquiry with regard to the...

Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court

The Division Bench of Kerala High Court comprising Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “the concern of the Assessing Authority, while passing a consequential order, has to be limited to those specific issues that have been remanded to it for consideration by the Commissioner………..” Section 263 of the Income Tax Act, 1961 empowers the Commissioner of Income Tax to revise any order passed under the Income-tax Act, 1961, which is erroneous insofar as...

Himachal Pradesh HC Upholds Levy Of GST On Mining Royalty Payable Under Mining Concession Granted By State

The Himachal Pradesh High Court has dismissed a writ petition challenging notifications issued by the Central government for levy of GST on Royalty paid by a Mineral Concession Holder for mining concession granted by the State. The Petitioner, a firm engaged in stone crushing, was issued notices and summons under Section 70 of Central Goods and Services Tax Act, demanding GST on royalty. Petitioner's challenge in the year 2023 was based on a seven-Judge Bench decision of the Supreme...

Mistake On Part Of AO Resulting In Under Assessment Of Income No Ground To Re-Open Assessment U/S 147 Of Income Tax Act: Delhi HC

The Delhi High Court has made it clear that once scrutiny assessment is held under Section 143 of the Income Tax Act but due to a mistake of the Assessing Officer there is under assessment of income, reopening assessment under Section 147 of the Income Tax Act, 1961 is not permissible. “...AO specifically records in the reasons that it was a 'mistake' which resulted in under assessment of the income…It is, therefore, manifest that AO has not attributed the alleged escapement of income to...

Sale Deed Not Document Issued By Revenue, Can't Be Used To Verify Land's Classification As 'Agricultural' For Taxation Purposes: Delhi HC

The Delhi High Court has held that sale deed is not a document issued by the revenue authorities or any government authority which would certify the agricultural nature of a land. “A sale deed primarily reflects the transaction between the parties and the terms of sale, but it does not, in itself, verify the land's classification as agricultural for the taxation purposes. Therefore, heavy reliance on the sale deed to establish the agricultural character of the land would be misplaced,”...

DRI Officers Can Issue Show-Cause Notices Under Customs Act : Supreme Court Allows Review Against 'Canon India' Judgment

The Supreme Court today (November 7) held that the officers of the Directorate of Revenue Intelligence(DRI) have the power to exercise powers under the Customs Act, 1962 to issue show-cause notices and recover dutiesThe Court held that DRI officers are "proper officers" to issue show cause notices under Section 28 of the Customs Act, 1962."Subject to the observations made in the judgment, the officers of the Directorate of Revenue Intelligence, Commissionates of Customs-Preventive, Directorate...

No Basis For Reassessment If Nature & Source Of Receipts Are Verified, AO Doesn't Find Any Contradictory Evidence: Delhi High Court

The Delhi High Court stated that once nature and source of receipts have been satisfactorily proved and AO has not contradicted information given by assessee, there lies no cause for initiating the reassessment action. The Division Bench of Justices Yashwant Varma and Ravinder Dudeja observed that “………Once the nature and source of receipts have been satisfactorily explained/proved and AO has not contradicted the explanation/information given by the assessee, there lies no cause for...