No Order Passed On Rectification Application Filed By Assessee For Six Years: Bombay High Court Directs Disciplinary Action Against AO

The Bombay High Court has directed the disciplinary action against AO as no order has been passed on the rectification application filed by the assessee for six years.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the Assistant Commissioner of Income Tax (ACIT) Officer was duty-bound to pass orders on the application, which has been pending for almost 6 years, instead of making baseless statements in the affidavit in reply. Perhaps ACIT thinks that he or she is...

Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials

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 operation in the instant case. A bench of Justices P.S. Narasimha and Aravind Kumar stated that the impugned observations made by the High Court were, in nature, “advance rulings” and expressed a tentative opinion....

Approval To Reopen Assessment Against Vodafone Granted By The Dept. In A Most Casual Manner: Bombay High Court

The Bombay High Court has held that the approval has been granted in a most casual manner. The power vested in the authorities under Section 151 to grant or not grant approval to the AO to reopen the assessment is coupled with a duty. The authorities were duty-bound to apply their minds to the proposal put up for approval in light of material relied upon by the AO. The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that it was obligatory on all the authorities and PCCIT in...

Reopening Or Abatement Of Assessment To Be Triggered Only Upon Discovery Of Material: Delhi High Court

The Delhi High Court has held that a reopening or abatement would be triggered only upon the discovery of material that is likely to “have a bearing on the determination of the total income” and would have to be examined bearing in mind the AYs' that are likely to be impacted.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that abatement of the six AYs' or the “relevant assessment year” under Section 153C would follow the formation of an opinion and...

Service Tax Not Payable On Flats Constructed Prior To 01.07.2010, Having Less Than 12 Flats: CESTAT

The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that there is no tax liability on the appellant for the impugned flats constructed prior to July 1, 2010, having less than 12 units or flats.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that only four residential units or flats were constructed in this case on hand, and hence, by virtue of this alone, the case of the appellant does not get covered under...

Payments By Supervisors To Individual Labourers, Each Not Exceeding Rs. 20,000, Can't Be Disallowed: Calcutta High Court

The Calcutta High Court has held that payments by supervisors to individual labourers, each not exceeding Rs. 20,000, cannot be disallowed under Section 40A(3) of the Income Tax Act, 1961.The bench of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj has observed that the supervisors acted as agents of the assessee to disburse the amount to individual labourers, which in no case exceeded Rs. 20,000/- for any individual labour. Therefore, in view of the circumstances prescribed in...

CBDT Clarification On Media Reports Claiming Special Drive To Reopen Cases With Reference To HRA Claims

The Central Board of Direct Taxes (CBDT) has issued the clarification on media reports claiming special drive to reopen cases with reference to House Rent Allowance (HRA) claims.“Certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the Department as part of its routine exercise of verification of data. In such cases, the Department has alerted the taxpayers to enable them to take corrective action....

UPVAT | Intention To Evade Tax Essential For Imposition Of Penalty U/S 54(1)(2): Allahabad High Court

The Allahabad High Court has held that intention to evade tax is essential condition for imposing penalty under Section 54(1)(2) of the Uttar Pradesh Value Added Tax Act, 2008.Section 54(1) of the Uttar Pradesh Value Added Tax Act, 2008 provides for circumstances under which penalties can be imposed on an assesee. It is provided that where an assessing authority is satisfied that an assesee has committed any wrong mentioned therein, penalty can be imposed after giving due opportunity of hearing...

AO To Record Dissatisfaction With Correctness Of Claim Of Assessee In Respect Of Expenditure: Bombay High Court

The Bombay High Court has held that the Assessing Officer should record his dissatisfaction with the correctness of the claim of the assessee in respect of the expenditure, and to arrive at such dissatisfaction, he should give cogent reasons. The Bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that though the AO has stated that the assessee's explanation is not acceptable, he has not given reasons why it is not acceptable to him. Section 14A(2) and Rule 8D provide that if...

Cross-Examination Necessary For Arriving At Fair Trial, It Is Not Whims Of Adjudicating Authority To Allow Or Reject Request: CESTAT

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cross-examination is necessary for arriving at a fair trial.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that, as per Section 9D of the Central Excise Act, it is not the whims of the adjudicating authority to allow or reject the request for cross-examination.The appellant/assessee has challenged the order by which excise duty of Rs. 1,52,06,323, equal...

Freight/Insurance Amount Is Not Includible In Assessable Value Of Goods For Charging Excise Duty: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the freight or insurance amount is not included in the assessable value of the goods for charging excise duty.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) found no valid reason for disallowing the deduction for the freight and insurance paid inasmuch as the sales are for destination. The appellant/assessee entered into a contract with IOCL and HPCL. As per the contract, the...

AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court

The Delhi High Court has held that AO is not clothed with the powers to ascertain the Arm's Length Price (ALP) of any international transaction.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the AO is not clothed with the powers to ascertain the ALP of any international transaction that is selected based on the transfer pricing risk parameters. Furthermore, Section 92CA(4) of the Income Tax Act evidently mandates that the AO cannot deviate itself from...