Tax Payable After Credit Of Prepaid Taxes Is Less Than Rs.3,000, Prosecution Not Sustainable; Madras High Court

The Madras High Court has held that prosecution under Section 276CC of the Income Tax Act is not sustainable as the tax payable after crediting prepaid taxes was less than the prescribed sum of Rs. 3,000.The bench of Justice G.K. Ilanthiraiyan has observed that proviso (ii)(b) to Section 276CC takes care of genuine assessees who either file the returns belatedly but within the end of the assessment year or those who have paid substantial amounts of their tax dues by prepaid taxes from the rigour...

Kerala High Court Rejects Assessee ’s Claim For Service Tax Refund To Meet VAT Demand On Pest Control Contract

The Kerala High Court has rejected the assessee's claim for a service tax refund to meet the VAT demand on the pest control contract.The bench of Justice Anu Sivaraman has observed that the claim of the petitioner that the service tax authorities must be directed to meet the demand for VAT, if any, found payable by the petitioner cannot be accepted.The petitioner or assessee is in the business of pest control. As per the assessee, pest control falls under the category of a service contract and...

UPVAT Rules | Stricter Approach To Be Followed Before Giving Benefit Of Exemptions/ Deductions: Allahabad High Court

The Allahabad High Court has held that though in case of doubt, taxing statues are to be interpreted in favour of the assesee. However, a stricter approach needs to be followed before giving the benefit of exemptions and deductions.“The general rule of law in taxing statutes is that in case of any doubt the benefit should be given to the assessee. However, in case of exemption and deduction to be given, a stricter approach may be followed, as per catena of judgments of the Supreme Court, to...

IGST Refund On Exported Goods Being Zero Rated Supplies Admissible As Excess Drawback Repaid: Gujarat High Court

The Gujarat High Court has ruled that the surplus drawback resulting from the utilization of the Cenvat Credit facility was repaid along with interest, and thus, the refund of Integrated Goods and Services Tax (IGST) paid on goods and services for exported goods, classified as zero-rated supplies, is deemed eligible.The petitioner, ADF Foods Ltd., challenged the inaction on the part of the respondents not to sanction the refund claims of integrated goods and service tax paid on exported goods...

Jharkhand High Court Rules In Favor of Revenue In Clean Energy Cess Case

The Jharkhand High Court has ruled in favor of the Revenue in a case involving the demand for Clean Energy Cess on coal production.The petitioner, a subsidiary of Coal India Limited and a Category-I Mini Ratna Company since 2007, had challenged the order dated 29.09.2020 passed by respondent no. 3, the Principal Commissioner, Goods & Services Tax-CX, Ranchi. In the said order, respondent no. 3 had confirmed the demand of Clean Energy Cess amounting to Rs. 470,83,42,400/- under Section 11 (A)...

Punjab And Haryana High Court Quashes Section 69 Addition On HSBC Geneva Deposits As Sufficient Explanation About Source Of Investments Given On Affidavit

The Punjab and Haryana High Court has quashed the addition under Section 69 of the Income Tax Act on HSBC Geneva deposits as a sufficient explanation about the source of investments given in the affidavit.The bench of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan have observed that the explanation offered by the Assessee that the amount in the bank account belonged to his nephew seems justified as he paid taxes on the amount in a bank account which was confirmed by his nephew's CA...

Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically

The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically.The bench of Justice Ravi Nath Tilhari and Justice A V Ravindra Babu has observed that the petitioner’s plea to read down the provisions of Rule 41 of the CGST Rules and to direct to accept the manual filing deserves rejection, as neither Rule 41 of the CGST Rules is under challenge nor is shown to be contrary to...

No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court

The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP).The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the deductee (petitioner) followed the regime framed in the Act for collecting TAS through an agent (Ninex) of the government, i.e., the deductor. It was the agent who was required to deposit the tax with the government....

Section 245C(5) Of Income Tax Act Is Read Down By Removing Retrospective Last Date Of 1st Feb 21 As 31st March 21: Madras High Court

The Madras High Court has held that Section 245C(5) of the Income Tax Act, 1961 (as amended by the Finance Act, 2021) is read down by removing the retrospective last date of the 1st February 2021, as the 31st March 2021.The bench of Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy has observed that the Finance Act, 2021, was retrospective in nature. Those who have had a right to approach the Settlement Commission (ITSC) i.e., those who had a case pending against them,...

Department Required To Serve Notice Upon Legal Representative Of Deceased Before Proceeding Under GST Act: Allahabad High Court

The Allahabad High Court has held that the Goods and Service Tax Department is required to serve notice upon the legal representative of a deceased before proceeding against the deceased under the Central Goods and Service Tax Act, 2017.Petitioner’s husband was the sole proprietor of the firm was engaged in providing services as a Consultant. A show cause notice was issued in the name of petitioner’s husband imposing liability of Rs.8,97,716/- under the proviso to Section 73(1) of the Finance...

No Reason To Believe Income Chargeable To Tax Escaped Assessment: Gujarat High Court Quashes Income Tax Notice

The Gujarat High Court in a recent ruling underscored the importance of tangible evidence and a valid reason to believe that income has escaped assessment in a significant decision regarding the validity of reopening assessments based on reasons lacking a direct connection between the taxpayer and the disputed transaction.Justice Biren Vaishnav and Bhargav D Karia observed, “Perusal of the reasons would indicate that except making a statement that the petitioner had an access with Shri Kamal...

Gujarat High Court Quashes FIR Against Chartered Accountant Firm In GSLDC Scam

The Gujarat High Court has quashed the First Information Report (FIR) against a Chartered Accountant firm in connection with the Gujarat State Land Development Corporation Limited (GSLDC) Scam.The court emphasized that the firm's role was confined to auditing vouchers and records, and it was not directly implicated in the misconduct associated with the Khet Talavadi project, the focal point of the accusations.Justice Sandeep N. Bhatt, heading a single bench, underscored the potential...