CBDT Notifies New Monetary Limits For Condonation Of Delay In Filing Refund Claim And Claim Of Carry Forward Of Losses

The Central Board of Direct Taxes (CBDT) has issued new monetary limits in respect of condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the Income-tax Act, 1961.The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr. CsIT/CSIT) shall be vested with the powers of acceptance/rejection of applications/claims if the amount of the claims is not more than Rs.50 lakhs for any one assessment year.The Chief Commissioners of...

Tax Cases Monthly Round-Up: May 2023

Supreme CourtNo Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme CourtCase Title: Central GST Delhi – III vs Delhi International Airport LtdCitation : 2023 LiveLaw (SC) 457The Supreme Court has ruled that the “user development fee” (UDF) levied and collected by the airport operation, maintenance, and development entities from passengers departing the concerned airports, is a statutory levy, and thus, it is not...

Gift From Family Members Do Not Require Any Special Occasion: ITAT Deletes Addition

The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that addition and held that gifts from family members do not require any special occasion.The bench of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member) has observed that all sources explained by the assessee were genuine except the gift of Rs. 1,00,000 claimed to have been received from the grandmother.The assessee/appellant filed his return of income, declaring a total income of Rs. 1,49,900/- earned...

CBDT Notifies e-Appeals Scheme, 2023

The Central Board of Direct Taxes (CBDT) has notified the e-Appeals Scheme, 2023.Except for the cases excluded under Section 246(6), the scheme shall apply to appeals involving persons or classes of persons, incomes or classes of incomes, cases or classes of cases covered by Section 246.A person shall not be required to appear either personally or through an authorized representative in connection with any proceedings under the scheme. The hearing shall be conducted through video conferencing or...

Show Cause Notice Bereft Any Specific Allegation, Delhi High Court Quashes GST Registration Suspension Order

The Delhi High Court has held that the Show Cause Notice was short of the necessary requirements as it did not contain any specific allegation.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the show cause notice is required to set out the relevant material in order to enable the noticee to meaningfully respond to it.The petitioner has challenged a Show Cause Notice dated May 20, 2023, by which the petitioner was called upon to show cause as to why his GST...

Dept. Initiated Reassessment By Deviating From Prior View Without Any Cogent Reasoning: Delhi High Court Quashes Reassessment Notices

The Delhi High Court has quashed the reassessment notices on the grounds that the department has initiated reassessment by deviating from prior views without any cogent reasoning.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the reassessment notice and order suffered from two infirmities, namely that it was proceeded on a view inconsistent with the earlier order despite the facts and circumstances being similar, and the ACIT concerned did not support the...

Taxpayers Filing Declaration Under SVLDR Scheme Can’t Quantify The Duty Under Indirect Taxes: Delhi High Court

The Delhi High Court has held that taxpayers filing declarations under the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 (SVLDR Scheme) cannot quantify the duty under indirect taxes.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that in terms of Section 121(r) of the Finance Act, 2019, the word "quantified" means a written communication of the amount of duty payable under indirect tax enactment and that a unilateral quantification by the petitioner...

Non-Supply Of Survey Report, Delhi High Court Stays Reassessment Proceedings Against Centre For Policy Research

The Delhi High Court has stayed the reassessment proceedings against the Centre for Policy Research.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the entire survey report was not submitted to the petitioner; only the relied-upon portion of the survey report was provided to the petitioner.The petitioner has assailed the notices dated March 28, 2023, and March 29, 2023, issued under Section 148A(b) of the Income Tax Act, 1961.The petitioner challenged an order...

Interest On Delayed Service Tax Refund Payable On Expiry Of 3 Months From Application: CESTAT

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that interest on delayed service tax refunds is payable on the expiration of 3 months from the date of application.The bench of S. S. Garg (Judicial Member) has observed that under Section 11BB of the Act, interest is payable after the expiration of 3 months from the date of receipt of the application. Therefore, the appellant is entitled to interest on delayed payment from January 27, 2011, to the...

Uttar Pradesh Jal Nigam Is Not A Local Authority: AAAR Denies Concessional Rate Benefit On Works-Contract Services

The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has held that Uttar Pradesh Jal Nigam (UPJN) is not a local authority and 18% GST is payable on the works-contract services.The Bench of Uma Shankar and Ministhy S, while upholding the ruling of the Authority of Advance Ruling (AAR) observed that by way of Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021, the lower rate of tax of 12% was restricted to works contracts supplied to the Central Government, State...

Power To Collect Entertainment Tax No Longer Vest In The State After 101st Amendment: Patna High Court

The Patna High Court has held that the power to collect entertainment tax would no longer vest in the state after the 101st Amendment.The bench of Chief Justice K. Vinod Chandran and Justice Madhuresh Prasad has observed that the 101st Constitution Amendment Act substituted Entry 62 of List II to the extent that the power to levy and collect entertainment tax was bestowed only upon local self-government institutions and not the state.The petitioner is a Multi System Operator (MSO) who is liable...

CBDT Proposes Changes To Rule 11UA In Respect Of Angel Tax, Notifies Excluded Entities

The Central Board of Direct Taxes (CBDT) has proposed the changes to Rule 11UA in respect of Angel Tax and has also notified the excluded entities.In the Finance Act, 2023, an amendment has been introduced to bring the consideration received from non-residents for the issue of shares within the ambit of Section 56(2)(viib) of the Income-tax Act, 1961. It provides that if such consideration for the issue of shares exceeds the fair market value (FMV) of the shares, it shall be chargeable to income...