Tax
Direct Tax Weekly Round-Up: 4 To 10 August 2024
Delhi High CourtAmendment In Section 153C Income Tax Act Can't Be Interpreted For Revival Of Already Time Barred Proceedings: Delhi High CourtCase Title: PCIT Versus Karina Airlines International Ltd.The Delhi High Court has held that the power to assess the block period of ten years would clearly not be attracted in the case of a search that had taken place prior to April 1, 2017.Section 80-IA(7) Requirement Deems Fulfilled When Audit Report Filed At Any Time Before Framing Of Assessment: Delhi...
Indirect Tax Weekly Round-Up: 4 To 10 August 2024
Bombay High CourtNot Mandatory For Assessment Order To Contain Reference Disclosing Its Satisfaction Of Each And Every Query: Bombay High CourtCase Title: Hemant Surgical Industries Ltd. Versus Union of IndiaThe Bombay High Court has held that it is not mandatory for assessment orders to contain reference and/or discussion to disclose its satisfaction in respect of each and every query raised.Bombay High Court Quashes Show Cause Notice Issued Without Mentioning Documents Required To Be Furnished...
ITAT Declines To Stay Cancellation Of Exemption Notification To Legal Initiative For Forest And Environment Trust (LIFE)
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has dismissed the stay application filed by assessee-LIFE Trust against the withdrawal/cancellation of registration for exemption granted under section 12A/12AA/12AB from FY 2013-14 onwards. The registration was cancelled on account of activities of the trust being determined to be non-genuine and not in accordance with the objects of the trust. The bench, Kul Bharat (Judicial Member) and Brajesh Kumar Singh (Accountant Member), observed...
No Service Tax Payable On Laying Down Water Supply Pipelines For Govt.: CESTAT
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee is not liable to pay service tax for the activity undertaken by them for laying down the pipelines for government/government undertakings for supply of water from KWA in Thiruvananthapuram City. The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the construction of canals/pipelines/conduits to support irrigation, water supply, or sewerage...
Settlement Commission's Order Accepting Explanation 'In The Spirit Of Settlement' Doesn't Require Interference: Karnataka High Court
The Karnataka High Court has held that the Settlement Commission, by accepting the explanation 'in the spirit of settlement', cannot be faulted for calling for interference in exercise of the limited jurisdiction.The bench of Justice S. Sunil Dutt Yadav has observed that the Settlement Commission has taken note of the declaration made under Rule 8 of the Income Tax Settlement Commission (Procedure) Rules and has accepted the assertion of cash gifts. If indeed the applicant had disclosed the cash...
Purchaser Can't Be Punished For Failure Of Seller To Deposit Tax: Gauhati High Court
The Gauhati High Court has held that a purchasing dealer cannot be punished for the act of the selling dealer in case the selling dealer had failed to deposit the tax collected by it.The bench of Chief Justice Vijay Bishnoi and Justice Suman Shyam has observed that the Department is precluded from invoking Section 9(2)(g) of the DVAT to deny ITC to a purchasing dealer who has bona fide entered into a purchase transaction with a registered selling dealer who has issued a tax invoice reflecting...
Composite Contracts Can't Be Taxed Under “Erection, Commissioning And Installation Services”: CESTAT
The Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that composite contracts involving supply of both goods and services could not have been taxed under the category “Erection, Commissioning, and Installation Services.”.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the taxable category “Erection, Commissioning, and Installation Services” could only cover pure service contracts within its fold....
Uploading Assessemnt Orders After GST Registration Cancellation, Petitioner Failed To Check Website, Kerala High Court Grants Opportunity To Challenge On Deposit
The Kerala High Court has quashed the assessment orders and remanded the matter back on condition of remitting Rs. 10 lakhs towards the GST liabilities.The bench of Justice Gopinath P. has observed that the registration of the petitioner had been cancelled in the month of December 2021, and the petitioner had also stopped business. The assessment orders were issued only in the month of September 2022, and therefore, the petitioner was not aware of the orders as it was not checking its portal on...
Settlement Consideration Liable To Be Recognized As “Capital Gains” And Not “Profits In Lieu Of Salary”: Delhi High Court
The Delhi High Court has held that the settlement consideration is liable to be recognized as capital gains and not “profits in lieu of salary.”.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the fundamental mistake which the Tribunal committed was failing to bear in mind the distinction between a “perquisite” and “profits in lieu of salary," both of which are dealt with separately in Section 17 of the Income Tax Act, 1961. “Profits in lieu of salary," which...
Requirement Of Filing Audit Report In Form 10B Is Only Procedural: Delhi ITAT Grants Exemption To Educational Trust U/s 11
The New Delhi ITAT held that non uploading of Form 10B within the date prescribed under the Income tax Act would not be fatal to the claim of exemption u/s 11. Section 11 of the Income Tax Act provides exemptions to income derived from property held under trust or institutions wholly for charitable or religious purposes to the extent that such income is applied to charitable and religious purposes in India. Referring to the decision of Ahmedabad Tribunal in the case of ITO Vs....
Income Tax Additions Can't Be Made On The Basis Of Superficial Inquiry: Bombay High Court
The Bombay High Court has held that income tax additions cannot be made on the basis of superficial inquiry.The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan has observed that the findings which were arrived by the CIT(A) as also by the tribunal would suggest that the department did not dispute the assessee's sales, as there there was no discrepancy between the purchases as shown by the the assessee and the sales declared. The respondent/assessee is in the business of trading...
Revenue Department Can't Take Fresh Ground Which Was Not Disclosed To Taxpayer, While Passing Re-assessment U/s 148A(D): Delhi HC
Finding major flaw in the fundamental premise of the Revenue Department that the investment made by the taxpayer in shares amounted to “income” which has escaped assessment, the Delhi High Court quashed the reopening proceeding initiated u/s 148A. Observing that foundational material alone would be relevant for the purposes of evaluating whether reassessment powers were justifiably invoked, the High Court clarified that Revenue Department cannot take a fresh ground while passing order...