Loss Due To Sale Of Government Securities By Bank Is “Business Loss”; ITAT Allows Income Tax Deduction

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.The bench of T.R. Senthil Kumar (Judicial Member) and Narendra Prasad Sinha (Accountant Member) have observed that the depreciation of government securities was a deterioration in the value of security. In essence, this was a loss claimed on the valuation of the...

Condition Of Pre-Deposit Duly Complied, Delhi High Court Restores Appeal On Board Of CESTAT

The Delhi High Court has held that the appeal itself may be restored on the Board of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), bearing in mind the undisputed position that the condition of pre-deposit has been duly complied with.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has allowed the instant writ petition and set aside the impugned order in so far as it proceeds to reject the application for restoration.The petitioner has challenged the...

AO Can't Draw An Adverse Inference For Mere Non-Response From Directors To Notices: Calcutta High Court

The Calcutta High Court, while deciding whether the addition made under Section 68 of the Income Tax Act, 1961, was justified or not, held that only because the directors failed to respond to the notices issued, the Assessing Officer could draw an adverse inference.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the assessing officer failed to comment on the veracity or admissibility of any of the details or documents produced by the assessee to...

Non-Compliance Of Notification Conditions For Export Of Banned Non-Basmati White Rice; Delhi High Court Dismisses Exporter's Appeal

The Delhi High Court while dismissing the rice exporter's appeal, upheld the decision of the single bench holding that the exporter cannot be permitted to export 11,000 MT of banned non- basmati white rice, due to the non-fulfilment of the conditions entitling it to an exemption from the ban on export imposed by Notification bearing no. 20/2023 dated 20th July, 2023 issued by the Department of Commerce, Government of India.The bench of the Acting Chief Justice Manmohan and Justice Manmeet Pritam...

Merely Brandishing Newspaper Cuttings Doesn't Prove Sharing Commercial Expertise: Bombay High Court

The Bombay High Court has held that merely brandishing newspaper cuttings does not amount to proof of sharing commercial expertise with its French counterpart as mandated by Section 80-O of the Income Tax Act.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that Section 80-O was inserted in place of Section 85C, which was deleted by the Finance (No. 2) Act, 1967. While moving the bill relevant to the Finance Act No. 2 of 1967, the then Finance Minister highlighted the...

Delhi High Court Quashes MOOWR Instructions Denying Benefit To Solar Power Generation Units

The Delhi High Court has held that the statutory scheme underlying the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) cannot be construed as seeking to exclude solar power generation in terms of permissions granted under Section 65 of the Customs Act, 1962. The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the activities undertaken by the writ petitioners are in aid of the objective of the country transitioning towards renewable energy...

Rectification Application U/s 154 Can't Be Termed As Time-Barred If Taxpayer Duly Responded To Notices Issued In Consequence To Intimation U/S 143(1): Ahmedabad ITAT

Observing that the assessee was all along, from the beginning since it became aware of some intimation having been made u/s 143(1) of the Income tax Act, seeking rectification in the same, the Ahmedabad ITAT held that rejection of said rectification application as being time barred is not in conformity with law. The Bench of Annapurna Gupta (Accountant Member) observed that “the assessee had duly responded to the demand notices which were issued to it in consequence to the intimation...

Grant U/s 80G Can't Be Rejected Merely On Procedural Lapse By Making Application U/s 80G(5)(Ii) Inadvertently Instead Of U/s 80G(5)(Iii): Ahmedabad ITAT

Referring to the decision of the Calcutta Bench in ITA No. 994/Kol/2023, the Ahmedabad ITAT reiterated that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval. The ITAT explained that Section 80G of the Income Tax Act provides tax exemptions for donations made to specified charitable institutions and...

Capital Gain Tax Not Payable On Transfer Of Shares By Way Of Gift: Bombay High Court

The Bombay High Court has held that capital gain tax is not payable on the transfer of shares by way of gift.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that Section 45 of the Income Tax Act provides that any profits or gains arising from the transfer of a capital asset have to be considered by the assessee. Only when there is consideration received can the profit or gain be measured. A gift is commonly known as a voluntary transfer of property by one person to...

Interest-Free/Concessional Loans To Bank Employees Taxable As Perquisite : Supreme Court Upholds Rule 3(7)(I) Of Income Tax Rules

The employer's grant of interest-free loans or loans at a concessional rate will certainly qualify as a 'fringe benefit' and 'perquisite", the Court said.

Supply Of Disposable Paper Cup Attracts 18% GST: AAR

The West Bengal Authority of Advance Ruling (AAR) has held that the supply of disposable paper cups attracts 18% GST.The bench of Tanisha Dutta and Joyjit Banik have observed that a disposable paper cup is made out of paper and often coated with plastic or wax to prevent liquid from leaking out or soaking through the paper. It may be made of recycled paper. It is known that paper cups consist of approximately 95% high-degree cellulose paper board. Generally, disposable paper cups are composed of...

Opting To Pay Tax At Lower Rate By Not Availing ITC Forfeits Right To Avail Input Tax Credit: AAR

The Telangana Authority of Advance Ruling (AAR) has held that the applicant by opting to pay tax at a lower rate by not availing input tax credit on the goods and services used in his supplies has forfeited his right to avail input tax credit.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the supply of car was made in the month of July 2023 when the applicant was still availing the lower rate of tax on his supplies by forfeiting is right to claim input tax credit on...