Variance In Allowable Deductions Doesn't Amount To Furnishing Inaccurate Particulars Of Income: Bombay High Court

The Bombay High Court has held that the assessee cannot be said to furnish inaccurate particulars of income merely for variance in allowable deductions.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the ITAT was of the view and rightly so that the assessee had made a bona fide claim under Section 36(1)(viii), as such deductions claimed are linked to the business profit. Only because there was variance in the deductions allowable due to a change in the...

In Absence Of Service Recipient And Service Provided Service Tax Can't Be Demanded And Confirmed: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that in the absence of such service recipient and service provided service tax cannot be demanded and confirmed.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that it is the burden cast upon the department to show that the assessee has recovered the cost of service rendered. In the absence of such recovery, the question of levy of service tax does not at all...

Excise Duty Not Payable On Waste And Scrap Of Packing Material Of Inputs If Travels Beyond Show-Cause Notice: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on waste and scrap packing material of inputs, and demand is not sustainable if it has travelled beyond the show-cause notice.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that no demand is raised on the Appellant in the Show-cause notices on the ground that it was engaged in trading which was treated as an exempted...

Govt. Notifies Lower Royalty & FTS Tax-Rate In India-Spain DTAA

The government has notified the lower tax rates on royalties and fees for technical services (FTS) in the India-Spain double taxation avoidance agreement (DTAA).As per the notification, royalties and fees for technical services may also be taxed in the contracting state in which they arise, according to the law of that state, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed 10 percent of the gross amount of...

Failure Of AO To Take Concrete Steps To Ascertain The Genuineness And Creditworthiness Of Transactions: Delhi High Court

The Delhi High Court has held that the AO has not taken any concrete steps to ascertain the genuineness and creditworthiness of the transactions.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that clause (a) of Explanation 2 of Section 263 of the Act introduces a deeming fiction to the effect that the order passed by the AO shall be considered erroneous and prejudicial to the interests of the Revenue if the order is passed without making inquiries or...

Tribunal's Discretion To Dispense Obligation To Deposit Duty/Interest Or Penalty In Cases Of Undue Hardships: Delhi High Court

The Delhi High Court has held that the proviso to Section 129E of the Customs Act, 1962, gives discretion to the Tribunal in cases of undue hardships to dispense the obligation to deposit the duty, interest, or penalty.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that the application for waiver of pre-deposit was dismissed by the Tribunal, and the writ petitions challenging the orders passed by CESTAT have already been dismissed by the High Court. The appellants...

S.144B Income Tax | Burden to Provide Registered Email Shifts On Assessee Only If It Can't Be Obtained From ITR/Portal/MCA Website: Allahabad HC

The Allahabad High Court has held that the provision requiring the assesee to provide his “registered email address” to the income tax authorities under Section 144B of the Income Tax Act, 1961 is residuary in nature.The Court held that if the assessing authority is unable to obtain the registered email address from the income tax returns or from the designated portal of assesee or website of Ministry of Corporate Affairs, then it is upon the assesee to provide the email address to the...

10% of Demand Already Paid By Assessee, Madras High Court Allows Cooperative Bank's Writ Appeal By Waiving 10% Pre-Deposit

The Madras High Court has waived the condition of payment of a 10% pre-deposit as the 10% demand was already paid by the assessee.The bench of Justice R. Mahadevan and Justice Mohammed Shaffiq have observed that the single judge, while taking note of the financial hardship expressed by the assessee, modified CIT (TDS)'s order and permitted the assessee to deposit the amount in three instalments. The aggrieved assessee filed writ appeals, whereby the Division Bench waived the payment of the...

Pre-Deposit Of 20% Demand Is Not Precondition For Consideration Of Stay Application During Pendency Of First Appeal: Delhi High Court

The Delhi High Court has held that a 20% pre-deposit demand is not a precondition for consideration of a stay application during the pendency of the first appeal.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the respondent department has clearly erred in proceeding on the assumption that the application for consideration of outstanding demands being placed in abeyance could not have even been entertained without a 20% pre-deposit. The stand as taken...

Assessing Officers Are Not Governed By Strict Rules Of Indian Evidence Act, 1872 In Case Of Assessment Proceedings: Madras High Court

The Madras High Court has held that assessing officers are not governed by the strict rules of the Indian Evidence Act, 1872.The bench of Justice C. Saravanan has observed that the assessment proceedings under the Income Tax Act, 1961, before an assessee officer are not judicial proceedings. It is a quasi-judicial proceeding before a quasi-judicial officer. The provisions of the Evidence Act, 1872, particularly the special provisions relating to evidence relating to Sections 65A, 65B, and 66,...

Wilful Failure To Furnish Return As Per Sec 139(1) Is Only Criterion For Initiation Of Prosecution U/s 276CC: Madras High Court

The Madras High Court recently highlighted that provision of Section 278E of the Income tax Act brings in a statutory presumption regarding the existence of a culpable mental state. Accordingly, the High Court refused to interfere in the criminal proceedings and relegated the petitioner/ taxpayer to the trial, while stating that the onus is upon the petitioner to prove the contrary and that can be done only at the time of the trial. A Single Judge Bench of Justice N. Anand Venkatesh...

CBDT Expands Scope Of Appeal Filing By Dept. Before ITAT, High Court And Supreme Court, Retains Monetary Limits

The Central Board of Direct Taxes (CBDT) has issued a circular under section 268A of the Income-tax Act, 1961 for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court as a measure for reducing litigation.The board has retained the monetary limits at Rs.50 lakhs, Rs.1 Crore and Rs.2 Crores for filing appeals before ITAT, High Court and Supreme Court respectively.The monetary limits with regard to filing appeal/SLP shall be...