AO Was Not Intimated About Removal Of Company's Name From ROC, Draft Assessment Can't Be Said To Have Passed In Name Of Non-existent Entity: Delhi ITAT

While finding that the AO/DRP was not informed about striking off the name of non-resident assessee from the ROC, the Delhi ITAT held that assessee cannot take a plea that draft assessment order was against the non-existing entity or the company whose name is struck off. Further, pointing that the objections of non-existence of company were filed only on the day on which the Registrar of Companies, Mauritius had removed the name of the company u/s 308 of the Mauritius Companies Act,...

GST Council Recommends Amendments In Rules Relating To IGST Refunds On Exports & Pilot B2C E-Invoicing

Considering the difficulty being faced by the exporters due to restriction in respect of refund on exports, the 54th GST Council Meeting as a trade facilitation measure, recommended omission of Rule 96(10), rule 89(4A) & rule 89(4B) from CGST Rules, 2017 prospectively, where benefit of the specified concessional/ exemption notifications is availed on the inputs.The Council further clarified that in respect of reassessments through the jurisdictional Customs authorities, “the IGST paid on...

54th GST Council Meet Exempts Grants For Research & Reduced Rates On Specific Items

Out of the several indispensable decisions taken at the 54th GST Council meeting, some of the major items related to rate reduction on several items and formation of two new Group of Ministers (GoMs) to holistically look into the issues pertaining to GST on the life insurance and health insurance, as well as a committee to study Compensation Cess issue.The Union Finance Minister Mrs. Nirmala Sitharaman announces that GoM on rate rationalisation will meet soon, and two status reports were...

Provision For Leave Encashment Not Debited To P&L A/c, Can't Be Added As Employer's Income: Ahmedabad ITAT

The Ahmedabad ITAT held that provision for leave encashment which was inherited by the assessee on account of restructuring exercise of the GEB, by virtue of which, huge number of employees had been onboarded by the assessee-company, cannot be added to assessee's income. The Division Bench of Annapurna Gupta (Accountant Member) and T.R. Senthil Kumar (Judicial Member) observed that no disallowance of leave encashment liability was warranted if the assessee had not debited any amount...

“Assessee Entitled To Hearing If Pre-Deposit Is Made”: Gauhati High Court Grants Fresh Hearing

The Gauhati High Court while granting a fresh hearing to the assessee stated that the benefit of hearing has to be given to the assessee as the statutory deposit has already been made by the assessee. The Bench of Justice Arun Dev Choudhury observed that “This court though cannot find fault with the appellate authority in non-entertaining the appeal due to non-compliance of Section 79(5), however this court in exercise of its power under Article 226 of the Constitution of India, in the...

Agriculturalist Is Not Supposed To Maintain Books Of Account U/s 44AA For Claiming Exemption U/s 10(1): Delhi ITAT

While granting exemption on agricultural income u/s 10(1), the Delhi ITAT held that assessee being an agriculturalist, is not supposed to maintain books of account as per Sec 44AA. Section 44AA of Income tax Act deals with the maintenance of books of accounts by certain persons carrying on business or profession. Finding regularity and consistency of declared agricultural income over the years and subsequent assessment years, Single Bench of S. Rifaur Rahman (Accountant Member)...

Suspicious Suppliers Being From Different States Is No Ground To Transfer Proceedings from State to Centre: Punjab & Haryana High Court

The Punjab and Haryana High Court stated that merely having information that suspicious suppliers are not located in the same state would not be ground to transfer proceedings from the state to the centre. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth stated that “merely because the DGGI has information relating to similar fraudulent availment of ITC by other firms who may be related to the firm against which the proceedings have been initiated under Section...

External Development Charges Collected In Advance By Builder From Prospective Flat Owners, Can't Be Brought To Tax: Delhi ITAT

The Delhi ITAT held that when the project under consideration is not yet completed, the advance collected by infrastructure companies from the buyers cannot be charged to profit and loss account. The Division Bench of S. Rifaur Rahman (Accountant Member) and Anubhav Sharma (Judicial Member) observed that “the assessee has collected the same for providing the common services on the approval of HUDA, this is only based on reimbursement and there is no profit element. Therefore, it...

Show Cause Notice Does Not Provide Any Clue Why Petitioner's GST Registration To Be Cancelled ; Delhi HC sets aside Show Cause Notice

The Delhi High Court held that the purpose of issuing a show cause notice is to enable a noticee to respond to the allegations based on which an adverse order is proposed. Hence, the High Court quashed the order as well as SCN observing that the SCN is not intelligible as it does not specify the reason for cancelling the petitioner's GST registration. The Division Bench of Justice Vibhu Bakhru and Justice Sachin Datta observed that “In the present case, the impugned SCN fails to...

Tax Concession Can't Be Denied Based On Vehicle Registered In The Name Of Trust And Not School: Madras High Court

The Madras High Court stated that the Tax Concession cannot be denied just because the vehicle is registered in the name of Trust and not school. The Bench consists of Justice G.K. Ilanthiraiyan observed that “the Regional Transport Officer, Chennai failed to see the objects of the assessee/petitioner Trust, it is an educational Trust. That apart, the Regional Transport Officer made demand with retrospective effect. The permits of the assessee/petitioner buses were already renewed...

KYC Not Done By Purchasing Party Is Not A New Fact To Reopen Proceedings: Bombay High Court Declines Reassessment

The Bombay High Court quashes reopening notice issued under Section 148 of the Income Tax Act, 1961 while emphasizing that unauthorized transactions are made without requisite KYC of the purchasing party cannot be said to be a fresh fact which has come to light which was not previously disclosed which tends to expose the untruthfulness of the fact. The Division Bench of Justices M.S. Karnik and Valmiki Menezes observed that “Assessing Officer has no power to review; he has the power to...

Presumption Of Undervaluation Can't Be Drawn Just Because Of Higher MRP Rate On Product: Punjab & Haryana HC

The Punjab and Hayana High Court stated that the presumption cannot be drawn that invoices are undervalued merely because MRP Rate mentioned on the product is higher. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “it is also not a case of the State authorities that the invoices were different for the assessee in comparison to other distributors. Once there is no finding in this regard, a presumption cannot be drawn that the invoices were...