Extension Of Timeline For Filing Form No.10AB For Recognition U/s.12A Is Deemed Extension For Renewal Of Approval Under Clause (Iii) Of First Proviso To Sec 80G: Chennai ITAT

The Chennai ITAT recently clarified that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A has been extended, the same may be treated as extended for Form No.10AB for renewal of approval/recognition/registration under clause (iii) of the first proviso to section 80G of the Income Tax Act. The ITAT held so while agreeing with the contention of the assessee that the timeline prescribed under clause (iii) of the first proviso to section 80G(5) should be...

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Delhi High Court Delhi High Court Interprets Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax Act, 1961. AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High...

Actual Expenditure, Source Of Which Was Not Explained, Attracts Deeming Provisions Of Sec 69: Ahmedabad ITAT

The Ahmedabad ITAT recently ruled that actual expenditure, the source of which has not been explained, attracted the deeming provisions provided u/s 69 of the Income tax Act. The ITAT at the same time clarified that no addition can be made in the hands of the assessee merely on the reason that the assessee got the property transferred through registered sale without making the payment to the vendor. Referring to the decision of High Court of Delhi in the case of CIT versus...

Filing Delayed Returns, Power To Condone Delay Is Conferred On CBDT To Ensure Substantial Justice; Bombay High Court

Explaining the scope of powers u/s 119(2)(b) of the Income tax Act, the Bombay High Court recently clarified that the legislature has conferred power on the Principal Commissioner of Income Tax (respondent no.3) to condone the delay to enable the authorities to do substantive justice to the parties by disposing the matter on merits. Hence, the High Court observed that routinely passing the order without appreciating the reasons why the provisions for condonation of delay has...

Indirect Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Supreme Court Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials Case Title: The State Of Gujarat & Anr. V. Paresh Nathalal Chauhan Citation : 2024 LiveLaw (SC) 295 The Supreme Court (on March 12) expunged the observations made by the Gujarat High Court in an interim order that statutory protection of the good faith clause under Section 157 of the Goods and Services Tax Act may not be available to the GST officers who conducted a search...

Admissibility Of Discounts Passed On To Buyers Subsequent To Clearance, Is Eligible Deduction For Determination Of Assessable Value: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the admissibility of discounts that were passed on to the buyers and were known at the time of clearance of goods is an eligible deduction for the purpose of determining the assessable value.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has observed that the rebate, as it was known by way of MPR and uniformly passed on, would be required to be taken note of for the...

Counter Sales Permission Of Alcoholic Liquor Was Concession Given To Bar Attached Hotel Owners For Carrying On Business During Covid-19: Kerala High Court

The Kerala High Court has held that the permission to effect over-the-counter sales of alcoholic liquor was a concession given to bar-attached hotel owners to permit them to carry on business and tide over the COVID lockdown period. The assessee cannot now contend that the tax on such transactions should not be levied on him because he did not originally have permission to effect such sales.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that the...

Madras High Court Restrains Dept. From Appropriating Interest Liability Against Eicher Motors Until Matter Is Taken Up By Appellate Court

The Madras High Court has restrained the department from appropriating interest liability against Eicher Motors until the matter is taken up by the appellate court.The bench of Justice Senthilkumar Ramamoorthy has observed that since an appeal has been filed against the order of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) with regard to the imposition of interest on the sum of Rs. 49,00,000 and the appeal is pending consideration, it is just and appropriate to provide...

Rationale To Deny ITC To Service Provider Who Is Not Liable To Pay Tax On Output Services Is Obvious: Delhi High Court

The Delhi High Court has held that the rationale to deny input tax credit (ITC) to service providers who are not liable to pay tax on output services is obvious.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has held that the service providers rendering services on which tax is payable on a reverse charge basis would constitute a class of their own, and a challenge to the same founded on Article 14 of the Constitution of India would necessarily fail. It is well settled that Article...

Delhi High Court Grants Relief Of As Low As 5% IGST On Import Of Dialysis Machines By FMC India

The Delhi High Court has granted relief of as low as 5% Integrated Goods and Service Tax (IGST) on the import of dialysis machines by Fresenius Medical Care India Private Limited (FMC India).The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that dialysis machines covered under HSN Code 9018 and 9031 are liable to be taxed at 5%, essentially awarding a significant rebate of 7% on the import of dialysis machines.The petitioner/assessee, FMC, is the Indian subsidiary of...

Placement Agency To Be Given Proper SCN On Alleged Failure To Perform Duties Coupled With Monetary Loss To JSBCL: Jharkhand High Court

The Jharkhand High Court has held that Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, and the corresponding clauses of the contract have to be restricted only to those situations where the placement agency has been found, albeit after hearing the agency, to have failed to provide manpower to Jharkhand State Beverages Corporation Ltd. (JSBCL), which has resulted in pecuniary loss to the corporation. The bench...

ITSC Entrusted With Power Of Granting Immunity From Penalty And Prosecution Only In Case Of Full And True Disclosure: Delhi High Court

The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) is entrusted with the power to grant immunity from penalty and prosecution only in cases of full and true disclosure.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that once it is seen that the disclosure was not full and truthful, the ITSC loses its jurisdiction to entertain such an application as well as to provide any immunity to the applicant from prosecution and...