Characterization Of Share Application Money By AO As Unexplained Cash Credit Is Devoid Of Necessary Verifications: ITAT

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the characterization of the share application money of Rs. 25 lac by the AO as an unexplained cash credit under Section 68 of the Income Tax Act is clearly devoid and bereft of necessary verifications.The bench of Ravish Sood (Judicial Member) has observed that the matter, in all fairness, requires to be restored to the file of the AO, with a specific direction that he shall, in the course of set-aside proceedings, call...

Husband Entitled To TDS Credit On Interest Earned From Amount Gifted To His Wife: ITAT

The Income Tax Appellate Tribunal's (ITAT), Pune Bench ruled that the husband is entitled to TDS credit on interest earned on the amount gifted to his wife.The two-member bench of R.S. Syal (Vice President) and S.S. Viswanethra Ravi (Judicial Member) has held that where the income on which tax has been deducted at source is assessable in the hands of someone other than the deductee, credit for the proportionate tax deducted at source shall be given to that other person rather than the...

Allegations Of Availment Of Fake Credit Cannot Be A Ground For Rejecting The Refund Applications Unless It Is Established: Delhi High Court

The Delhi High Court has held that allegations of availing of fake credit cannot be a ground for rejecting the refund applications unless it is established that the petitioner has not received the goods or paid for them.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the petitioner would be entitled to the refund of the ITC on goods that have been exported by it. They directed that the respondents process the petitioner’s applications for refund of the ITC...

Delhi Budget 2023-24: Know The Key Highlights

Kailash Gahlot, the finance minister for Delhi, unveiled the Rs, 78,800 crore budget for the coming financial year 2023–2024. Big announcements were made in the budget in the area of taxation.Establishment of a Tax Policy and Revenue Augmentation UnitThe government has intended to initiate the operationalization of a dedicated Tax Policy and Revenue Augmentation Unit (TPRAU) in the next financial year 2023–24. The primary goals of this Unit are to increase revenue by identifying opportunities,...

Madras High Court Quashes The Criminal Proceedings Against Guarantor Of Assessee, For Assessee’s Failure To Pay Tax; States It's Only Contractual Liability And Not Criminal

The Madras High Court has quashed criminal proceedings against the guarantor of the assessee for failing to pay the tax dues of the latter to the Commercial Tax Department. The Commercial Tax Officer (CTO) filed a private complaint before the Judicial Magistrate against the assessee as well as the petitioner, who stood as a guarantor with respect to the tax arrears of the business done by the assessee. The Court remarked that though the petitioner had executed an undertaking or a...

Assessee Not Responsible To Explain Recipients Of Receipts Shown In Form No. 26AS: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee is not responsible to explain the recipients of the receipts shown in Form No. 26AS.The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) while deleting the additions observed that the Assessing Officer should have asked the payer, for details of the payee to whom payments have been made by the payer on which it could deduct tax at source.As per the information received...

Amount Deposited In The Personal Ledger Account Until It Is Not Debited Towards Duties Is Property Of The Assessee: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the amount deposited in the Personal Ledger Account (PLA) until such time as it is not debited towards duties is the property of the appellant.The bench of Anil G. Shakkarwar (Technical Member) has observed that the amount deposited in PLA is an advance kept by the assesses with the exchequer, and only when an amount is debited in PLA is it treated as payment of duty. The limitation will be...

Central Excise Duty Not Payable On Capital Subsidy Received From State Government In Form Of Sales Tax Challan 37B: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that central excise duty is not payable on capital subsidies received from the state government in the form of sales tax challan 37b.The bench of Justice Dilip Gupta (President) has observed that capital subsidy received from the state government in the form of Sales Tax Challan 37B and subsequently utilized or adjusted by the assessee for the payment of its VAT liability does not affect or reduce...

Reasons Recorded For Reopening The Reassessment To Be Examined On Standalone Basis To Determine The Validity Of Proceedings U/s 147: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the reasons, as recorded for reopening the reassessment, are to be examined on a standalone basis to determine the validity of proceedings under Section 147 of the Income Tax Act.The two-member bench of Sandeep Singh Karhail (Judicial Member) and M. Balaganesh (Accountant Member) relied on the Bombay High Court's decision in the case of Hindustan Lever Ltd. vs. R.B. Wadkar, which held that it is for the AO to record...

Failure Of Kidney A Reasonable Cause Which Prevented Assessee To Supply The Documents And Replies To The AO: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that failure of the kidney was a reasonable cause of ailment that prevented the assessee from supplying the documents and replies to the AO.The two-member bench of Astha Chandra (Judicial Member) and Shamim Tahya (Accountant Member) has directed that the additional evidence and submissions made before the CIT(A) be accepted by the CIT-A.The assessee is in the business of trading menthol oil, and the list of various creditors...

Karnataka High Court Permitted Superintendent of Central Tax To Pass Orders For Revoking Cancellation Of GST Registration On Filing Returns

The Karnataka High Court has permitted the Superintendent of Central Tax to pass suitable orders for revocation of the cancellation of the GST registration, if the petitioner/assessee files returns.The single bench of Justice B. M. Shyam Prasad has observed that the cancellation of GST registration was without due opportunity and was arbitrary.The petitioner submitted that the respondent visited his business premises on October 11, 2022, and seized certain invoices/documents under a mahzaar. The...

Calcutta High Court Quashes Income Tax Notices Issued In The Name Of Non-Existing Company

The Calcutta High Court has quashed the income tax notice issued in the name of a non-existing company, in spite of the department having notice and knowledge of non-existence of the company.The single bench of Justice Md. Nizamuddin observed that the notice has been issued in the name of the company, which has already been amalgamated on December 12, 2016 with effect from April 1, 2015, and that the department has been intimated about this amalgamation, which is a matter of record, and that...