ITO Can’t By-Pass SC Decision In ‘Engineering Analysis’ In The Name Of A Review Petition Filed By Dept: Delhi High Court

The Delhi High Court has set aside the Income Tax Department’s order rejecting the assessee’s application seeking a certificate for “NIL” rate of withholding tax under Section 197 of the Income Tax Act, 1961. The bench of Justices Rajiv Shakdher and Tara Vitasta Ganju observed that the concerned officer had failed to consider the Apex Court’s decision in Engineering Analysis Centre of Excellence Pvt. Ltd. vs. Commissioner of Income Tax (2021), which was relied upon by the assessee in...

Fraudulent GSTN Registration: Delhi High Court Directs Petitioner To Reveal Details Of His Friend Who Obtained It

The Delhi High Court has ordered the petitioner to reveal the name of the friend who fraudulently obtained a GSTIN using his credentials at the department.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has directed the petitioner to disclose the identity of his friend, to whom he claims to have handed over his identity documents, to the police authorities as well as to the state GST authorities. The petitioner shall fully cooperate with the concerned authorities and provide...

Both Sales Tax And Service Tax Cannot Be Made Applicable On The Same Transaction: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that both sales tax and service tax cannot be made applicable on the same transaction.The two-member bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that when the appellant is only cutting the size of the coal to be provided to the customers, it cannot be said that any service has been offered by the appellant to the buyer of coal.The appellant/assessee...

Arbitrary Orders Driving Taxpayer To File Appeal By Depositing 50% Of The Disputed Taxes: Tripura High Court Imposes Cost Of Rs. 25,000 On The Taxes Recoverable From His Salary

The Tripura High Court has imposed a cost of Rs. 25,000/- on the Commissioner of Taxes to be recovered from his salary and to be paid to the Tripura High Court Bar Association for passing an order in an arbitrary manner.The division bench of Acting Chief Justice T. Amarnath Goud and Justice Arindam Lodh observed that orders were passed by the authorities in an arbitrary manner, which was driving taxpayers to file appeals by depositing 50% of the disputed taxes. The Court also ruled that a...

Income Tax Disallowances Made On Ad Hoc Basis Without Specifying A Particular Mistake: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that disallowances have been done on an ad hoc basis without specifying a particular mistake.The two-member bench of Astha Chandra (Judicial Member) and Shamim Yahya (Accountant Member) has set aside the orders of the authorities below and decided the issue in favor of the assessee and observed that AO has not pointed out specific documents that were missing.The assessee/appellant challenged the ad hoc disallowance on the...

Employers Have To Deposit Employees' Contribution Towards EPF/ESI On Time To Avail Income Tax Deduction: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that employers have to deposit employees' contributions towards EPF/ESI on time to avail of income tax deductions.The two-member bench of Narender Kumar Choudhry (Judicial Member) and Anil Chaturvedi (Accountant Member) has relied on the decision of the Supreme Court in the case of Checkmate Services Pvt. Ltd. vs Commissioner of Income Tax-I in which it was held that the non-obstante clause under Section 43B or anything...

No Notice Served On Assessee, Assessment Order Passed Without Giving An Opportunity Of Hearing: Gujarat High Court Quashes Order

The Gujarat High Court, while setting aside the assessment orders, held that the assessment under Section 153 read with Section 144 had been done by the assessing officer without giving the petitioner assessee an opportunity to be heard in terms of and within the meaning of Section 144 of the Act.The division bench of Justice N.V. Anjaria and Justice Niral R. Mehta has observed that the petitioner did not receive any notice. It was only when the petitioner opened the portal to check the demand...

Prior Approval Of The Superior Officer Before Passing Of The Assessment/Reassessment Order Pursuant To A Search Operation Is A Mandatory Requirement: Orissa High Court

The Orissa High Court has held that the requirement of prior approval of the superior officer before an order of assessment or reassessment is passed pursuant to a search operation is a mandatory requirement of Section 153D of the Income Tax Act.The division bench of Chief Justice S. Muralidhar and Justice M.S. Raman has observed that approval of the superior officer before an order of assessment or reassessment must not be given mechanically.A search and seizure operation was conducted in the...

Non-Service Of Assessment Orders Inconsequential If Assesee Had Knowledge About Them Otherwise : Supreme Court

Attachment orders issued by the revenue for tax arrears will not be vitiated merely because the assessment orders were not served on the assesse, if the assessee had otherwise got knowledge about the assessment orders, held the Supreme Court recently.On this ground, the Supreme Court restored the attachment orders issued under the APGST Act and Telangana VAT Act, which were set aside by the Telangana High Court on the ground that the assessment orders were not served on the assessee.A bench...

Confusion In Relation To The Service Of Intimation Through Email: ITAT Condones Delay Of 9 Years

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) ruled that there was significant ambiguity regarding the service of notice under Section 143(1) to the assessee via email.The two-member bench of Anikesh Banerjee (Judicial Member) and Dr. M. L. Meena (Accountant Member) has observed that there has been a delay of 9 years, which is a huge delay for adjudicating the appeal by the CIT(A). However, the assessee also provided a "reasonable cause" for the delay in filing the appeal.The...

Fee Earned By APMC For Regulating Poultry Market, Exempt Under S. 10(26AAB) of Income Tax Act: Delhi High Court

The Delhi High Court has ruled that the income/ fee earned by an Agricultural Produce Marketing Committee (APMC) for regulating the poultry market, would fall within the scope of Section 10(26AAB) of the Income Tax Act, 1961, and thus the same would be exempt from income tax. Rejecting the argument of the revenue department that unless income which is earned by an APMC is relatable to agricultural produce, it cannot be excluded from its total income, the bench of Justices Rajiv...

Reassessment Notices Issued After Elapse Of Six Years: Gujarat High Court Quashes Assessment

The Gujarat High Court has held that the reassessment notices were issued after the lapse of six years and are therefore time-barred.The single bench of Justice Sonia Gokani has observed that the board's circulars and instructions are binding only on the departmental authorities and not on the court or the assessee.The petitioners/assessees challenged the reassessment notice dated July 26, 2022, seeking to reopen the income tax assessment for the assessment year 2014–15.The assessee contended...