Tax
Haryana Tax Dept. Launches One Time Settlement-2023 Scheme
The Haryana Government has launched the One Time Settlement-2023 Scheme to settle pre-GST tax liabilities.Addressing a long-standing request from Haryana's traders and business community to settle pending tax payments from before the implementation of GST, Chief Minister Sh. Manohar Lal today launched the One Time Settlement-2023 (OTS) Scheme through the Excise and Taxation Department. The scheme will be operational from January 1, 2024, to March 30, 2024.From January 1, 2024, to March 30, 2024,...
Income Tax Not Leviable On Interest-Free Refundable Security Deposit For Due Completion Of Project By Developer: Andhra Pradesh High Court
The Andhra Pradesh High Court at Amaravati has held that income tax is not leviable on an interest-free refundable security deposit for the due completion of a project by the developer.The bench of Justice U.Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that, as per the development agreement, the disputed amount of Rs. 50 lakhs is only an interest-free security deposit lying in the hands of the petitioner. It is not appropriate on the part of the department to treat the...
Income Tax Act | Section 119(2)(B) Application Cannot Be Rejected Citing Vague & Arbitrary Reasons
In a recent ruling, the Gujarat High Court has emphasized that applications under Section 119(2)(b) of the Income Tax Act, 1961 must not be dismissed arbitrarily, especially when citing the absence of genuine hardship to the petitioner.The court stated that rejection on merits is unwarranted if the delay in filing the income tax return is not condoned.The ruling came in response to a petition challenging the order dated 04.10.2023, wherein the Additional/Joint Commissioner of Income Tax rejected...
Pre-deposit For CGST/SGST Appeal Allowed Exclusively From Electronic Cash Ledger, Not Electronic Credit Ledger: Patna High Court
The Patna High Court has recently ruled that pre-deposit for maintaining an appeal under Section 107(6)(b) of the CGST/SGST Act is permissible solely by utilizing amounts from the Electronic Cash Ledger and not the Electronic Credit Ledger.The division bench comprising Justices Madhuresh Prasad and Chakradhari Sharan Singh observed, "This court is also of the unambiguous conclusion that the pre-deposit (10 percent) for maintaining appeal under Section 107 (6)(b) of the CGST/BGST Act can be done...
Income Tax Act | Gujarat High Court Invalidates Income Tax Assessment Order Due To Violations Of Section 144B
In a significant legal development, the Gujarat High Court has invalidated an Income Tax Assessment Order, citing violations of Section 144B of the Income Tax Act.The petitioner, an individual assessee, primarily sought the following reliefs:(A) Petitioning for the issuance of a writ of certiorari and/or a writ of mandamus and/or any other appropriate writ, direction, or order to annul and set aside the contested Assessment order under Section 147 in conjunction with Section 144B of the Income...
Madras High Court permits Compounding Of Prosecution In Tax Evasion Case By MRF Chairman & Managing Director
The bench of Justice R. Mahdevan and Justice Mohammed Shaffiq, while upholding the order passed by the single judge, held that since the penalty was reduced from 300% to 100% of the tax sought to be evaded, the assessee is entitled to the benefit of Section 279(1A) of Income Tax. The section deals with non-prosecution for tax offences where the penalty is reduced.The judgement has been delivered a writ appeal filed by the tax department challenging the order of the single judge who remitted the...
No Service Tax Chargeable Under Security Agency Services: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is chargeable under security agency services.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that merely because the police may charge a fee, it would not become “a person engaged in the business of providing security” and, therefore, no service tax can be levied.The petitioner/assessee, who is a Superintendent of Police, SP Office, has...
CA Firm Paid Service Tax With Accrued Interest Before Show Cause Notice: Karnataka High Court Reduces Penalty From 100% To 25%
The Karnataka High Court has held that the service tax has been paid with accrued interest even before the show cause notice has reached the review petitioner.The bench of Justice P.S. Dinesh Kumar and Justice V. Srishananda has observed that the show cause notice itself shows that there was a payment of service tax along with interest by the review petitioner. The court has reduced the penalty from 100% to 25% and directed the review petitioner to pay Rs. 2,50,000 to meet the ends of...
Mere Mentioning Of Wrong Address Of Service Provider Is Procedural Defect, Cenvat Credit Can't Be Denied: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the mere mention of the wrong address is a procedural defect and CENVAT credit cannot be denied.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that once the substantive provisions are complied with for a mere technical lapse, the right to Cenvat credit cannot be denied.The appellant/assessee renders travel agent services to its clients, which include...
Assessee Can't Indefinitely Seek Time In Response To SCN: Kerala High Court
The Kerala High Court has held that the assessee cannot indefinitely seek time in response to a show cause notice.The bench of Justice Dinesh Kumar Singh has observed that petitioners cannot go on asking for a time one after another in response to the show cause notice issued one after another. There is no violation of the principles of natural justice.Information was flagged in the case of the petitioner or assessee in accordance with the risk management strategy formulated by the Central Board...
Actual Interest Expenditure Had To Be Adjusted Against Income Earned By Way Of Interest: Delhi High Court
The Delhi High Court has held that actual interest expenditure had to be adjusted against the income earned by way of interest.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the assessee has parked its surplus funds in fixed deposits of the bank from which it earned interest income. At the same time, the assessee has also paid interest to the bank. The interest earned has to be netted off with interest expenditure.The appellant or department seeks to assail...
CBIC Notifies Creation Of Principal Bench Of GSTAT At New Delhi
The Central Board of Indirect Taxes and Customs (CBIC) has notified the creation of the principal bench of the Goods and Service Tax Appellate Tribunal (GSTAT) at New Delhi.“The Government has invoked the powers under section 109(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This supersedes a previous Notification No. S.O.1359(E) dated March 13, 2019, with the exception of prior actions. Acting on the recommendation of the GST Council, the Central Government establishes...