Tax
S. 69A Of Income Tax Act Can Only Be Invoked Where Books Of Account Are Maintained: Delhi High Court
The Delhi High Court has held that Section 69A of the Income Tax Act can only be invoked where books of account are maintained.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the assessee is a non-resident Indian, and his source of income in India is interest on bank accounts and interest on income tax refunds. He is not obliged to maintain any books of account in India. The expression “if any” specifically used in Section 69A amplifies that if books of account...
12% GST Applicable On Renting Residential Dwelling Units On Monthly Rental Basis: Karnataka AAR
The Karnataka Authority of Advance Ruling has held that 12% GST is applicable to renting residential dwelling units on a monthly rental basis.The bench of M.P. Ravi Prasad and Kiran Reddy has observed the renting of residential dwellings to students and working women for residential purposes, along with amenities and facilities such as food, furniture, appliances, cleaning, security, pest control, etc., on a monthly rental basis, as provided by the applicant, which is not exempted under entry...
No Upward Adjustment Required To Be Carried Out For Amount Received By Sony India From Its AE: Delhi High Court
The Delhi High Court has held that no upward adjustment concerning advertising, marketing, and promotion expenses (AMP) ought to have been made as the comparables chosen by the Transfer Pricing Officer (TPO) had a net margin lower than that registered by the assessee, Sony India.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that according to the TPO's findings, they are contradictory in as much as, on the one hand, he notes that the money expended on AMP has...
High-End KPO Services Provider Can't Be Compared With ITeS, Which Is BPO Services Provider: Delhi High Court
The Delhi High Court has held that the high-end knowledge process outsourcing (KPO) services provider cannot be compared with the information technology-enabled services (ITeS), which fall under the category of BPO services provider.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that eClerx focuses on automation and process re-engineering in order to eliminate wasteful steps and automate repetitive ones so as to minimize the need for human intervention and present...
Investments Made Through Banking Channels Can't Be Disbelieved, Onus On Revenue To Prove Otherwise: Allahabad HC
Recently, the Allahabad High Court held that investments made through banking channels and show in regular returns cannot be disbelieved unless proven otherwise by the department.The bench comprising of Justice Saumitra Dayal Singh and Justice Shiv Shanker Prasad held there was “no room” to disbelieve investments made in the assesee company if they have been made through banking channels and have been disclosed in the returns of the investing companies. “The burden to prove otherwise rested...
Tax Cases Weekly Round-Up: 10 To 16 December, 2023
Delhi High Court No Incriminating Material Was Found During Search: Delhi High Court Quashes S. 153A Proceedings Case Title: PCIT Versus Oxygen Business Park Pvt. Ltd. The Delhi High Court has held that the assessment for the assessment year 2011–12 was finalized on January 20, 2012, and no notice under Section 143(2) of the Income Tax Act was issued. As such, no assessment was pending on the date of the search action, i.e., October 29, 2013. SCN Lacked Time Or Date For...
CBIC Notifies Mandatory Requirement Of BIS Registration And Random Sampling for Imported Electronic and IT Goods
The Central Board of Indirect Taxes and Customs (CBIC) has notified the mandatory requirement of Bureau of Indian Standards (BIS) Registration and random sampling for imported electronic and IT goods.The CBIC on review of the different practices in the implementation and streamlining the process including sampling issued the directions.The Customs Officer shall check for BIS registration in the system in all cases.The Risk Management System shall randomly select the consignments for sampling and...
CBIC Launches SAMAY Application For Timely Litigation Management
The Central Board of Indirect Taxes and Customs (CBIC) has launched the SAMAY Application for timely litigation management.The meeting was held between the Chief Commissioners and the CBIC Chairman. A presentation on the SAMAY (Systematic Adherence and MAnagement of Timelines for Yielding Results in litigation) application was made by the Legal Cell of the CBIC.SAMAY, the online portal for monitoring the proposal of SLP/CA, has been rolled out and can be accessed through the DLA website for use...
GST Bill Tabled Raising The Age Limit Of GSTAT Members
The Central Goods and Services Tax (Second Amendment) Bill, 2023 aims to raise the previous age limits of 67 and 65 years to 70 years for the president and members of the GST appellate tribunals (GSTAT).An advocate could be appointed as a judicial member of the GSTAT if they have ten years of "experience" in litigation before the appellate tribunal concerning indirect taxes. The amendment states that the president and the judicial and technical members of GSTAT will serve in their roles for four...
Bombay High Court Directs Dept. To Permit Amend In GSTR-1, Either Online Or Manual
The Bombay High Court has directed the department to permit the petitioner or assessee to amend or rectify Form GSTR-1 for the period July 2021, November 2021, and January 2022, either online or manually.The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that a bona fide, inadvertent error in furnishing details in a GST return needs to be recognized and permitted to be corrected by the department when, in such cases, the department is aware that there is no loss of...
CESTAT Affirms Seizure Of Unaccounted Gutka Stored In Godowns Without Any Documentation And Declaration
The Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has affirmed the seizure of unaccounted gutka and stock of raw material stored in these godowns without any documentation or declaration.The bench of Binu Tamta (Judicial Member) has observed that it is not necessary to establish mens rea in tax matters as non-compliance with statutory provisions is sufficient. The authorities below are justified in imposing a penalty under the provisions of Section 11 AC of the...
'Input Tax Credit' Becomes Vested Right Only If The Conditions Are Fulfilled: Calcutta High Court
The Calcutta High Court has held that the input tax credit (ITC) under Section 16(1) of the GST Act becomes a vested right only if the conditions to take it are fulfilled.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that Section 16(2) does not appear to be a provision that allows input tax credit; rather, Section 16(1) is the enabling provision, and Section 16(2) restricts the credit that is otherwise allowed to the dealers who satisfy the condition...