Section 14A Disallowance Cannot Be More Than Exempted Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that section 14A disallowance cannot be more than exempted income.The bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) has directed the AO to restrict the disallowance made under section 14A of the Income Tax Act to the extent of exempt income earned by the assessee.Section 14A is a disallowance provision. This section provides that while computing the total income of any assessee, no deduction will be...

ITAT Allows Income Tax Deduction On The Interest Income Received From The Co-Operative Bank

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the entire amount of interest income received from the Co-operative Bank.The bench of Sandeep Singh Karhail (Judicial Member) and S. Rifaur Rahman (Accountant Member) found that CIT(A) granted the relief to the assessee, allowing deduction under Section 80P(2)(d) on the entire interest income received by the assessee from the Co-operative Bank,...

CBIC Lowers The E-Invoicing Threshold To Rs. 5 Crores w.e.f. August 1, 2023

The Central Board of Indirect Taxes and Customs (CBIC) has notified the reduction of the e-invoicing threshold from Rs. 10 crores to Rs. 5 crores w.e.f. August 1, 2023.Currently, businesses having a turnover of more than Rs 10 crore are required to generate e-invoices for business-to-business (B2B) transactions.The e-invoicing threshold was reduced to Rs. 50 crore under the third phase from April 1, 2021, and then further brought down to Rs. 20 crore beginning April 1, 2022, under the fourth...

Chhattisgarh High Court Grants 3 Months Time To The Assessee For Depositing Pre-Deposit Before CESTAT

The Chhattisgarh High Court grants 3 months time to the assessee for depositing pre-deposit before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).The bench of Justice Parth Prateem Sahu rejected the prayer in respect of the waiver of the mandatory pre-deposit.The petitioner, Nava Raipur Atal Nangar Vikas Pradhikaran, is a statutory body created through a notification dated January 8, 2002, issued by the state government under Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam,...

Bank Officials Failed To Detect Fake Documents, How Can One Expect From CHA To Unearth The Dubious Plan Of Exporter: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the bank officials, despite verification, are not able to detect the fraudulent nature of the documents. How can one expect a Customs House Agent (CHA), who is not even a public official, to unearth the dubious plan of the exporter?The bench of Binu Tamta (a judicial member) has observed that no violation can be attributed to the appellant being a customs house agent. The department has failed to...

No Requirement Of Disallowing Part Of Director’s Remuneration And Depreciation When The Business Was Stopped Due To Temporary Lull: ITAT

The Jodhpur bench of the Income Tax Appellate Tribunal (ITAT) has held that there is no requirement for disallowing part of the director’s remuneration and depreciation when the business is stopped due to a temporary lull.The bench of Dr. S. Seethalakshmi (Judicial Member) and B. R. Baskaran (Accountant Member) has observed that the only condition for allowability of depreciation is that the business should not have been closed out once and for all and that the assessee should demonstrate that...

Onus Lies On AO To Provide Reasons To Disbelieve The Bank Statements And Supporting Documents For Reopening Assessment: Bombay High Court

The Bombay High Court has held that the onus lies on the AO to provide reasons to disbelieve the bank statements and supporting documents for reopening the assessment.The bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the AO has acted in excess of the limit of his jurisdiction to reopen the assessment in the exercise of powers under Section 147 read with Section 148 of the Income Tax Act.The petitioner’s case was selected for scrutiny, and a notice was issued. By...

Punjab And Haryana High Court Quashes Income Tax Demand Notice For Non-Compliance Of Section 144-B Procedure

The Punjab and Haryana High Court has quashed the assessment order and consequent notice of demand and penalty proceedings due to non-compliance of procedure enshrined in clauses (vii) and (viii) of Section 144-B(6) of the Income Tax Act.The bench of Justice Ritu Bahri and Justice Manisha Batra observed that the assessment of the orders and demand notices had been passed in violation of principles of natural justice.The petitioner contended that his case was fixed for March 21, 2023, at 11 a.m....

Department Adjusting The Refund Amount Under Amnesty Scheme Without Notice Violates Principles of Natural Justice: Bombay High Court

The Bombay High Court has held that the action of the department in making the adjustment of a refund due to the petitioner while considering the application under the Amnesty Scheme without notice to the petitioner is in utter disregard of the well-established principles of natural justice and has caused grave prejudice to the petitioner.The bench of Justice Nitin Jamdar and Justice Abhay Ahuja has observed that the Statement of Objects and Reasons for Introducing the Amnesty Scheme clearly...

18% GST Payable On The Commission If Commission Is Deducted On The Bonus Amount As An Intermediary: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that 18% of the commission will be deducted from the bonus amount as an intermediary.The bench of Kasi Visweswara Rao and Sahil Inamdar has observed that 5% GST is payable on the rest of the amount, which is arrived at after excluding the commission from the entire bonus, as it would be included as the value of supply of canteen services in accordance with Section 15(2) of the CGST Act, 2017.The applicant is providing canteen services to...

Once The Importers/Exporters Are Granted Immunity From Prosecution, Fine, Penalty It Is Unfair To Continue The Proceedings: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that once the importers and exporters have been granted immunity from prosecution, fines, and penalties, and proceedings against them have come to an end, it is discriminatory and unfair to continue the proceedings against the co-notices.The bench of Anil Choudhary (Judicial Member) has observed that a settlement order ends the dispute not only with respect to the applicant before the Commission but also...

DGFT Prohibits Import Of Apple If CIF Value Is Below Rs. 50 Per Kg

The Director General of Foreign Trade (DGFT) has amended the import policy condition for apples.The government has prohibited the import of apples if the cost, insurance, and freight (CIF) price is less than Rs. 50 per kilogram.The existing import condition for apples is free. As per the revised policy, it is prohibited. As per the revised policy, imports are "free" if the CIF value is above Rs. 50 per kilogram.Minimum Import Price (MIP) conditions shall not be applicable for imports from...