S. 119(2)(b) Income Tax Act | Gujarat HC Directs Commissioner To Avoid Pedantic Approach, Condone One Year Delay In Filing Return

The Gujarat High Court recently allowed the petition preferred by a woman seeking to condone over one year delay in filing of her income tax return for an assessment year. A division bench of Justices Bhargav D. Karia and Mauna M. Bhatt also criticized the “pedantic approach” in deciding Petitioner's application under section 119(2)(b) of the Income Tax Act, 1961. The provision empowers CBDT to direct Income Tax authorities to allow refund/ deduction claims or any other relief under...

Assessee Can't Claim ITC For Transportation If Costs Aren't Included In Assessable Value Of Goods For Payment Of Central Excise Duty: Kerala HC

The Kerala High Court stated that assessee cannot claim input tax credit for transportation services if transportation costs are not included in assessable value of goods for payment of central excise duty. The Division Bench of Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “………the assessee did not include the transportation costs in the assessable value of the goods for the purposes of payment of Central Excise duty. Under such circumstances, the assessee cannot...

Allotment Letter By Developer Shall Be Treated As 'Construction' For Benefit Of Set-Off Of Capital Gains U/S 54: Kolkata ITAT

Referring to the CBDT Circular No. 872 dated Dec 16, 1993, the Kolkata ITAT clarified that allotment of flats/houses by Cooperative Societies and other Institutions whose scheme of allotment and construction are similar to Delhi Development Authority (DDA) should be treated as 'construction' for purpose of Section 54 and 54F. While treating the allotment letter by the developer as 'construction activity', the ITAT granted the benefit of set off of capital gain to the purchaser...

Entity Operating, Developing, And Maintaining Infrastructure Facility Is Eligible For Benefit U/S 80IA Of IT Act: Pune ITAT

Referring to the decision of CIT vs. ABG Heavy Industries Ltd. (2010) 322 ITR 323, the Pune ITAT reiterated that an enterprise can claim deduction u/s 80IA if it develops, operates and maintains the infrastructure facility, subject to commencement of operation & maintenance of the infrastructure facility after April 01, 1995. The Bench of R.K. Panda (Vice President) and Astha Chandra (Judicial Member) observed that “requirement that the operation and maintenance of the...

Issuance Of Summons U/S 70 Of CGST Act Doesn't Initiate Proceedings U/S 6(2)(B) Of CGST Act: Kerala High Court

The Kerala High Court held that the initiation of an enquiry or the issuance of summons under Section 70 of the CGST Act cannot be deemed to be initiation of proceedings for the purpose of Section 6(2)(b) of the CGST Act. The Bench of Justice Gopinath P. observed that “The term 'initiation of any proceedings' is no doubt a reference to the issuance of a notice under the provisions of the CGST/SGST Acts and the initiation of an enquiry or the issuance of summons under Section 70 of the...

Power To Issue Notice For Scrutiny Assessment U/S 143(2) Not Limited To Assessing Officer Or Officers Of NaFAC: Delhi HC

The Delhi High Court has held that the power to issue notice for scrutiny assessment under Section 143(2) of the Income Tax Act, 1961 is not restricted to the Assessing Officer or the officers of National Faceless Assessment Centre (NaFAC) alone. As per the statute, a notice for scrutiny assessment under Section 143(2) of the Act can be issued by the “Assessing Officer or the prescribed income-tax authority, as the case may be”. In the case at hand, notice under Section 143(2) of the...

Income Derived By Foreign Entity For Rendering Technical Assessment Services Doesn't Constitute FTS: Delhi ITAT

The Delhi ITAT held that income derived by foreign entity for rendering technical assessment services will not constitute as Fees for Technical Services (FTS) under Article 12(4)(b) of India-Singapore DTAA. The ITAT held so after finding that income was derived by Respondent/ Assessee (a Singapore based company) on account of services rendered towards technical integrity assessment/ scanning of off-shore pipelines under sea, through Magnetic Tomography Method (MTM) technology to...

Bharti Airtel Not Liable To Pay TDS Towards Remittance Of Bandwidth Charges And Agency Fees: Delhi ITAT

The Delhi ITAT held that the bandwidth charges remitted by the Appellant/ assessee (Bharti Airtel) to the non-resident service providers cannot be treated as royalty either under the applicable treaty provisions or u/s 9(1)(vi). Since bandwidth charges are not royalty, the ITAT held that assessee was not required to deduct tax at source on such receipts. Where the payment for use or right to use computer software, falls within the definition of royalty u/s 9(1)(vi) of Income tax...

Capital Reserve Created On Amalgamation Is Not Taxable As Perquisite U/S 28(iv) Of IT Act: Mumbai ITAT

The Mumbai ITAT held that capital reserve arising on account of amalgamation is a capital receipt and hence cannot be taxed as a benefit or perquisite arising from business u/s 28(iv). Section 28(iv) of Income tax Act provides that any value of benefit or perquisite, whether convertible in money or not, arising from business or exercise of a profession would be considered as income and shall be chargeable to income tax as business income Pointing that the assessee was the ultimate...

Explained| Why Supreme Court Allowed Benefit Of TOLA In Extending Timelimits For Issuing Income Tax Reassessment Notices

The Supreme Court in its recent decision allowed the revenue authorities to issue notices for reassessment under the Income Tax Act for the period between 01.04.2021 and 30.06.2021 by granting the benefit of time extensions under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions Act) (TOLA) 2021. Here is a detailed breakdown of the key issue involved and the analysis of the Court in allowing a batch of 727 appeals filed by the Income Tax Department against the various...

No Service Tax Can Be Levied On Rental Agreements In Name Of Individual Partners For Jointly Owned Property: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that rental agreements in the name of an individual partner regarding property jointly held by them are not liable to service tax. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………post 01.07.2012, the firm was not functional, and the rental agreements are in the name of the individual partner, with regard to the property held by...

Section 74 Of CGST Act Can Be Invoked If Assessee Fails To Report Actual Sales To Evade Tax: Kerala High Court

The Kerala High Court stated that provisions of section 74 of CGST Act can be invoked if assessee fails to report actual sales to evade tax. The Bench of Justice Gopinath P. observed that “It is for the assessee to get his claim adjudicated by the statutory authorities under the CGST / SGST Acts. The procedure under Article 226 of the Constitution of India cannot be invoked to determine disputed questions of fact especially on account of the procedure adopted in this Court in respect...