Tax
Assessment Order Passed Beyond Sec 144C(4) Is Time Barred If Objections To Draft Order Were Filed After Expiry Of Limitation As Per Sec 144C(2): Delhi ITAT
Noticing that the draft assessment order was passed on Mar 4, 2022 and the assessee filed objection before the DRP on Apr 6, 2022 which was beyond the due date provided for filing objection, the Delhi ITAT held the assessment order to be time-barred being passed beyond Section 144C(4) of Income tax Act, 1961 time-limit. The ITAT Coram comprising of Challa Nagendra Prasad (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member), observed that “The draft of the Assessment Order, in this case,...
Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court
While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High Court and observed that the assessee is entitled to have his appeals heard on merits.The Division Bench comprising of Justice P.S. Narasimha and Justice Aravind Kumar, observed that “As Appeal No. 817 of 2008 stood dismissed for noncompliance, the High Court was of the opinion that inconsistent orders cannot be passed and proceeded to...
Taxpayer Staying In India For Less Than 182 Days As Per Exp 1(A) To Sec 6(1) Of I-T Act, Entitles To 'Non-Resident' Status: Mumbai ITAT
While opining that even if the taxpayer has left India for the purpose of business or profession, the same shall be considered for purpose of employment outside India under Explanation 1(a) to Section 6(1) of Income tax Act, 1961, the Mumbai ITAT held that assessee has rightly claimed to be a 'non-resident' as he stayed in India only for a period of 176 days during the year which entitles him to non-resident status as per Explanation 1(a) to Section 6(1).Rejecting AO's argument that since the...
Revisionary Powers U/S 263 Can't Be Exercised For Directing Fuller Inquiry Once Plausible View Taken By AO After Inquiry: Mumbai ITAT
While setting aside the revision order passed on the ground that the AO did not conduct any enquiry or verification which should have been made with regards to income from auditorium hire charges, hoarding site & service charges and rent vis-a-vis Trust's objectives and consequential eligibility under Section 10(21), the Bench opined that it is important to show that the view taken by the AO is wholly unsustainable in law before embarking upon exercise of revisionary powers and that the...
Right To Broadcast Live Events Is Not 'Copyright', Hence Payment Made In Relation Thereto Cannot Be Taxed As 'Royalty' U/S 9(1)(VI), Clarifies Delhi ITAT
Emphasizing that the right to broadcast live events i.e., “Live Rights”, is not “copyright” and therefore any payment made thereto can't be said to be chargeable to tax as royalty under section 9(1)(vi) of the Income tax Act, 1961, the Delhi ITAT holds assessee as not in default for non-deduction of tax at source on foreign remittances made towards acquisition of right to broadcast 'live-events'.The Member of ITAT comprising Saktijit Dey (Vice-President) and B.R.R. Kumar (Accountant Member)...
CIT(A) Has No Jurisdiction To Enhance Income U/S 251(1) By Disallowing ESOP Expenses In Revised Return If AO Has Not Dealt With It: Mumbai ITAT
While setting aside the CIT(A)'s order enhancing assessee's income under Section 251(1)(a) of Income tax Act, 1961 by disallowing Employees Stock Option Plan (ESOP) expenses under Section 37(1), the Mumbai ITAT held that the CIT(A) has acted beyond his jurisdiction in enhancing assessee's income, since the AO during the course of assessment, has not taken into consideration the assessee's revised return and has not examined the taxability of ESOP expenses.The Coram comprising of Kuldip Singh...
Income From Sub-Letting Is 'Business Income' If Object Is Business Of Renting/Licensing Of Shops: Calcutta High Court
Finding that assessee's income from sub-letting/sub-licensing the space in question, has always been accepted by Respondent / Income Tax Department as, income from business, the Calcutta High Court held that assessee's income from sub-licensing/sub-letting is chargeable to tax as business income and not as income from house property.The Division Bench comprising of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj observed that “Since the object of the assesse company and its...
Income Tax Act | Penalty U/S 271E Cannot Be Levied On Repayment Of Loan In Absence Of Cash Transaction: Madras HC
While observing that transaction pertaining to loan between two concerns wherein the liability of borrower stood reduced in the books of accounts to an extent of payment made to clear the liability of assessee appears to be in accordance with law, the Madras High Court ruled that penalty under Section 271E of Income tax Act, 1961 cannot be levied on repayment of loan in absence of cash transaction.The High Court made it clear that the question of dealing with cash transaction does not arise and...
Kolkata ITAT Deletes Addition Made Based On Third-Party Statement Who Was Not Allowed To Be Cross- Examined By Assessee
Finding that assessee has discharged the burden of proving identity, creditworthiness, and genuineness of the creditors to the loan transaction, the Kolkata ITAT deleted the addition made for alleged unexplained loan under Section 68 of Income Tax Act, 1961 based on the statement of third-party in a post-search assessment whose cross-examination was never allowed to assessee.The Member of the ITAT comprising of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) observed that “The...
UPGST | Truck Is Capital Asset Of Transporter, Seizure Without Notice Affects Civil Rights: Allahabad High Court
The Allahabad High Court has held that the seizure of a vehicle transporting goods affects the civil rights of the transporter as the truck is a capital asset of the transporter. The Court held that the transporter ought to be afforded an opportunity of hearing before passing any penalty order against him.While observing that the vehicle carrying the goods could be released under proviso-1 of Section 129 (6) of the UP Goods and Service Tax Act, 2017 on payment of Rs. 1 Lakh, the bench comprising...
Delhi High Court Directs Customs Commissioner To Release Amount After Realising Redemption Fine, Penalty From Seized Foreign Currency
The Delhi High Court has directed the Customs Commissioner to release the remaining amount after realizing the redemption fine and penalty from the seized foreign currency.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that ordinarily, the adjudicating officer needs to give the owner of the goods the option to pay a fine in lieu of confiscation, and if such a fine is not paid within a period of 120 days, such an option will become void. But the goods seized in the...
GST ITC Can Be Availed On Roof Top Solar System As It Constitute Plant And Machinery: AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that roof-top solar systems with installation and commissioning constitute plant and machinery.The bench of Amit Kumar Mishra and Riddhesh Raval has observed that applicants are eligible to avail of ITC on rooftop solar systems with installation and commissioning under the GST Act.The applicant is engaged in the business of manufacturing and selling welding wires. The applicant supplies its products and services after discharging 8% GST....