Tax
Income Tax Act | 35(2ab) Deduction Can't Be Denied For Failure Of Authority To Send Intimation: Gujarat High Court Upholds ITAT Decision In Schaeffler India Ltd's Tax Appeal
In a recent ruling by the Gujarat High Court, it has been held that the deduction under Section 35(2AB) of the Income Tax Act cannot be denied merely due to the failure of the authority to send intimation.The decision came in response to an appeal filed by the Revenue against the order of the Income Tax Appellate Tribunal 'C' Bench, Ahmedabad, pertaining to the assessment year 2016-17.As per Section 35(2AB) of the Income-tax Act, where a company is engaged in the business of bio-technology...
Primary Facts Necessary For Assessment Fully & Truly Disclosed, AO Not Entitled To Change Opinion For Reassessment: Bombay High Court
The Bombay High Court has held that the primary facts necessary for assessment are fully and truly disclosed, and the Assessing Officer is not entitled, on change of opinion, to commence proceedings for reassessment.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that even if the Assessing Officer, who passed the assessment order, may have raised too many legal inferences from the facts disclosed, on that account, the Assessing Officer, who has decided to reopen...
Reassessment On Suspicion To Enquire Further Is Unsustainable: Gujarat High Court
The Gujarat High Court has delivered a significant ruling, asserting that reassessment on suspicion for making further inquiry is unsustainable under section 148 of the Income Tax Act.The division bench of Justices Biren Vaishnav and Bhargav D Karia observed, “The reassessment was also therefore based on suspicion. As pointed out by learned Senior Counsel Mr.Hemani, that factors that indicate that income has escaped assessment consists of facts which if established will have a cause and effect...
Income Tax Act | Section 56(2)(Viic) Not Applicable To Fresh Issuances Or Allotments Of Shares By A Company: Gujarat High Court
The Gujarat High Court recently delivered a crucial ruling on the interpretation of Section 56(2)(viic) of the Income Tax Act, 1961, stating that the provision does not apply to fresh issuances or allotments of shares by a company.According to section 56(2)(viib), if a company receives, in any previous year, any consideration for the issue of shares that exceeds the face value of such shares from any person who is a resident, the aggregate consideration received for shares that exceed the fair...
Income Tax Act | Valid Show-Cause Notice Crucial For Recovery Under Section 179: Gujarat High Court
In a recent ruling, the Gujarat High Court has set aside an Income Tax Liability Order, highlighting the crucial requirement of a valid show-cause notice for recovery under Section 179 of the Income Tax Act, 1961.The above ruling came in a petition challenging the order dated 27.03.2019 under Section 179 of the Income Tax Act, 1961 against the petitioner holding him in his capacity as a Director responsible for the outstanding demand against the company – Banyan & Berry Alloys Limited.The...
2 Years Limitation To File GST Refund Application Is Directory & Not Mandatory: Madras High Court
The Madras High Court has held that the 2-year limitation to file a GST refund application is a directory and not mandatory.The bench of Justice Krishnan Ramasamy has observed that the terms used in Section 54(1) of the CGST Act ''may make application before two years from the relevant date in such form and manner as may be prescribed'', which means that the assessee may make application within two years, and it is not mandatory that the application has to be made within two years, and in...
S.73 CGST Act| ‘No Reasonable Opportunity Granted To Respond’, MP High Court Quashes Show Cause Notice Against Raymond
Madhya Pradesh High Court has recently quashed a show cause notice and order of demand issued against Raymond Limited by observing that a minimum of 30 days must be given to afford ‘reasonable opportunity’ for the noticee to respond as per Section 73 of CGST Act.“Though no time period is stipulated in Section 73 for the noticee to respond but it is obvious that the statute contemplates affording of reasonable opportunity to reply to show cause notice”, the Division Bench of Justice Sheel Nagu...
Indian Jewellers Having Valid Licence To Import Gold Concessional Customs Duty From UAE Can Import It Through Bullion Exchange: DGFT
The Director General of Foreign Trade (DGFT) has notified that under the terms of the free trade agreement, Indian jewellers who hold a valid licence to import a certain amount of gold from the UAE at a reduced customs charge may do so through the bullion exchange IIBX.The DGFT has amended the import policy conditions for gold under HS Code 71081200 in Chapter 71 of Schedule I (Import Policy) of ITC (HS) 2022.The amendment specifies that valid India-UAE TRQ holders, as notified by the...
Seized Cash Should Be Treated As Advance Tax As Per Law, There Was No Default In Payment Of Advance: Delhi High Court
The Delhi High Court has held that the seized cash was offered by the assessee, under the regime that was prevailing then, to be treated as the advance tax, and thus there was no default in payment of the advance. Although its payment or adjustment was triggered due to a search action,The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the petitioner had offered Rs. 50 lakhs seized in search to be treated as advance tax. This endorsement is found both in the return...
Initiation Of Revision Proceedings By Issuing Show Cause Notice And Passing Revision Order Without DIN Are Invalid: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the initiation of revision proceedings by issuing show cause notice and passing a revision order without a Document Identification Number (DIN) is invalid.The bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) have observed that the Office of the PCIT has literally not followed CBDT Circular No. 19/2019. The office of the PCIT has not justified not quoting DIN even in the revision order,...
Appeal Against ITAT Order Dismissing Revenue’s Recall Application Does Not Lie Before High Court: Orissa High Court
The Orissa High Court has held that the order passed by the Income Tax Appellate Tribunal (ITAT) dismissing the department’s appeal on the ground of the low tax effect is appealable before the High Court under Section 260A of the Income Tax Act, 1961; however, an appeal against the ITAT order dismissing Revenue’s recall application does not lie before the High Court.The bench of Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman has dismissed the appeal of the department...
Reassessment Notice Severed At Old Address Despite Knowing Assessee’s New Address: Delhi High Court Quashes Assessment Order
The Delhi High Court has quashed the assessment order as the notice under Section 148 was improperly served as it was sent to the old address, despite the fact that the department was aware of the new address.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that no notice, under Section 143(2) of the Income Tax Act, was issued to the respondent or assessee before framing the assessment order. Thus, the assessment order, which has been framed without a notice being...