Delhi High Court Allows Deduction To Hyatt Regency Towards Repair, Renovation, Refurbishment, Consultancy Expenses As Revenue Expenditure

The Delhi High Court has allowed the income tax deduction to Hyatt Regency towards repair, renovation, refurbishment, and consultancy expenses as revenue expenditure.The bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that ITAT rightly mentioned that if the owner of a building that is used for business incurs expenditure in the nature of current repairs and the assessee is not able to claim expenses for current repairs under Section 30(a)(ii), it could still claim...

S.153C Income Tax Act | Preceding 6 Years Period As Regards 3rd Party To Be Calculated From Date When Documents Are Assigned To Concerned AO : Supreme Court

The Supreme Court has rejected the argument of the Income Tax department that Section 153C of the Income Tax Act 1961 empowers the assessing officer to seek information from a third party regarding income tax returns of the period of six years preceding the date of the search of the assessee whose premises was originally searched.A Bench comprising Justice S. Ravindra Bhat and Justice Aravind Kumar held that under Section 153C, a third party would only have to furnish income tax returns of...

Income Tax Act | Alternate Remedy Available, Orders Are Appealable, Writ Jurisdiction Need Not Be Invoked, Allahabad High Court

The Allahabad High Court has refused to quash order and consequential notice under Sections 147 and 148 of the Income Tax Act, 1961 in writ proceedings under Article 226 of the Constitution of India. The Court held that all permissible grounds of defence remain open to assessee at the stage of proceedings under Section 148.The bench comprising Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava stated that order under Section 148A(d) of the Act is not final adjudication on escapement...

Intent To Evade Tax Sine Qua Non For Initiation Of Proceedings U/S 129 And 130 Of CGST Act: Allahabad High Court

The Allahabad High Court has held that it is necessary for the authorities to establish intention to evade tax for proceedings under Sections 129 and 130 of Central Goods and Service Tax Act, 2017. The Court held that without recording a finding a as to intention to evade tax, proceedings can at best be initiated under Section 122 of the Act.Dealing with Section 129 and Section 130 of the Act, Justice Piyush Agrawal held “Both the sections revolve around a similar issue and provide for the...

Clarification On Audit Report Requirements for ‘Substantial Contributors’ In AY 2023-24: CBDT

The Central Board of Direct Taxes (CBDT) has issued the clarification on Audit Report Requirements under Section 119 of the Income-tax Act, 1961 for ‘Substantial Contributors’ in AY 2023-24.It focuses on providing details of ‘substantial contributors’ in Form No. 10B or 10BB for the assessment year 2023-24. The circular states that details should include contributors whose yearly contribution exceeds Rs. 50,000, along with information on their relatives and related concerns if available.Audit...

Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC

The Kerala High Court recently addressed the difficulties faced by small scale dealers during the initial phases of GST implementation in understanding the provisions of GST Act. Justice Dinesh Kumar Singh set aside the orders of the assessing authority disallowing the input tax credit claims of the petitioners and observed thus,“The period involved is 2017-18 when the GST regime was rolled out. There may be some substance in the submission of the learned Counsel for the petitioner that the...

Income Received By UK Telecom Company From Indian Telecom Company For Rendering Roaming Services To Customers Abroad Is Not ‘Royalty’: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income received by a UK telecom company from an Indian telecom company for rendering roaming services to customers abroad is not ‘royalty’.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that payments made to a non-resident company for providing standard bandwidth services cannot be characterized as ‘royalty’ under DTAA. The amount received by the assessee from Vodafone Idea Limited...

Burden To Prove Concession Rightly Claimed Upon Assesee In Original Proceedings, Burden Shifts Upon Department In Reassessment Proceedings: Allahabad High Court

The Allahabad High Court has recently held that the burden to prove that concession has been rightly claimed is upon the assesee in the original proceedings. However, the Court held that in reassessment proceedings, burden shifts upon the Department to prove that assesee had wrongly claimed concession.Distinguishing the decision of Allahabad High Court in Star Paper Mills Limited Vs. Commissioner of Sales Tax relied on by the Assesee-Revisionist, Justice Piyush Agrawal held “When the...

Statutory Appeal Period Under Customs Act, Appellate Authority Has No Power To Condone Delay: Delhi High Court

The Delhi High Court has held that the appellate authority has no power to allow the appeal to be presented beyond the period of 30 days.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has relied on the decision of the Supreme Court in the case of Singh Enterprises vs. Commissioner of Central Excise, Jamshedpur & Ors., in which it was held that the legislature intended the appellate authority to entertain the appeal by condoning delay only up to 30 days after the expiry of 60...

Bakery Shortening And Vanaspati Are As Same: Allahabad High Court Applies Common Parlance Test

The Allahabad High Court has applied the Common Parlance Test and held that bakery shortening and vanaspati are the same.The bench of Justice Piyush Agrawal has observed that on the test of 'Common Parlance' Notification No. 37/2003 dated April 30, 2003, issued by the Government of India is very important and relevant, as in the Notification the Union Government has very categorically and specifically mentioned bakery shortening, or partially or wholly hydrogenated vegetable fats and oils...

‘Kurkure’ And ‘Cheetos’ Classifiable As ‘Namkeen’, Not ‘Snacks’ Under VAT Act: Rajasthan High Court

The Rajasthan High Court has held that ‘Kurkure’ and ‘Cheetos’ are classifiable as ‘namkeen’, not 'snacks' under the VAT Act.The bench of Justice Sameer Jain observed that the department neither sought any technical or expert opinion nor brought any evidence on record to prove their point. It appears that the Tax Board merely relied on a basic Google search result wherein the goods, namely ‘Kurkure’ and 'Cheetos', were described as Namkeen snacks.The petitioner-assessee is in the sale of various...

‘Reasons Are Heart And Soul Of Any Judicial And Administrative Order’: Allahabad HC Quashes Unreasoned Order Of GST Registration Cancellation

While setting aside order cancelling GST registration of assesee on grounds that it was unreasoned, the Allahabad High Court has held that ‘reasons are heart and soul’ of any order. In absence of reasons assigned, the order is vitiated in law.Petitioner’s GST registration was cancelled by the Assistant Commissioner, Sector 25, State Tax, Kanpur Nagar. Appeal preferred by the petitioner was rejected on grounds of delay. Counsel for petitioner argued that the cancellation order was passed in...