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...

Track Your Taxes And TDS Just On A Click: Income Tax Department Launches AIS Application

The Income Tax Department has launched a Mobile app for Taxpayers to view Annual Information Statements (AIS).AIS App is a free mobile application, provided by the Income Tax Department, Government of India. The app is meant to provide a comprehensive view of the Annual Information Statement (AIS), which is a collection of various information pertaining to a taxpayer. Taxpayers can provide feedback on the information displayed in AIS.The taxpayers need to verify their email and mobile as per...

Service Tax Not Payable On The Service Charges For Prepayment Of Loan Amount By The Customer: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service charges for pre-payment or foreclosure of loan amounts by the customer cannot be treated as taxable services and are not chargeable to service tax.The two-member bench headed by Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that foreclosure charges collected by the banks and non-banking financial companies on premature termination of loans are not...

Income Earned From Offshore Supply Of Escalators And Elevators Is Not Taxable In India: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that income earned by the assessee from the offshore supply of escalators and elevators is not taxable in India.The two-member bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) have observed that the property in goods passes on to the buyer at the port of shipment. Though the cost, insurance, freight, etc., are met by the seller, the property in the goods gets transferred to the buyer at the port...

Excise Duty Not Payable On Scrap Sent To The Job Workers For Manufacture Of Angles And Channels: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on the scrap that has been sent to the job workers for the manufacture of intermediate products such as angles and channels.The two-member bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Accountant Member) has observed that the Department has vaguely alleged that the appellant has suppressed facts with the intention to evade payment of duty. There is...

Late Filing Of Return, Denial Of Section 80P Exemption Not Justified: ITAT

The Rajkot Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that denying the exemption under Section 80P of the Income Tax Act solely on the basis of the assessee's late filing of a return is not justifiable.The two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has relied on the decision of the Kerala High Court in the case of Chirakkal Service Co-operative Bank Limited vs. CIT, in which it was held that in cases where returns have been filed,...

Service ​​Provider Deploying Employees In Manufacturing Premises For Specified Job Works Can’t Be Held As Manpower Supply Services: CESTAT

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that where the service provider has deployed his employees in the assessee's manufacturing premises for specific job works, it cannot be considered manpower supply services.The two-member bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the supply of manpower for any purpose by an individual or proprietary firm, Hindu Undivided Family, or partnership...

CBDT Notifies e-Verification Scheme To Encourage Voluntary Tax Compliance

The Central Board of Direct Taxes (CBDT) has issued a press release introducing the e-Verification Scheme to encourage voluntary tax compliance and facilitate a transparent and non-intrusive tax administration.Using information technology effectively, the scheme aims to share and verify the financial transaction information with the taxpayer, which appears to be either unreported or underreported in the Income Tax Return (ITR) filed by the taxpayer.The department has been collecting information...

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court

The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. It noted that in order to establish the same, the dealer should furnish the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and...

Reassessment Notice Issued By The AO Merely On The Basis Of Change Of Opinion: Bombay High Court Quashes Order

The Bombay High Court has quashed the reassessment order on the grounds that the only reason for issuing the notice under Section 148 of the Income Tax Act appeared to be that the Assessing Officer had come to a different opinion on the question of valuation than the one adopted by the petitioner.The division bench of Justice Dheeraj Singh Thakur and Justice Valmiki SA Menezes has observed that the order rejecting the objections has not even once mentioned the valuation report submitted by the...

GST Under Reverse Charge Mechanism Is Applicable On Services Of Renting Residential Premises as Guest House: AAR

The Odisha Authority of Advance Ruling has held that GST under the reverse charge mechanism is applicable to services by way of taking residential premises on rent for use as its guest house.The two-member bench of Gopal Krishna Pati and P.K. Mohanty has observed that the nature of rented properties clearly appeared to be residential properties used for commercial purposes.The applicant has taken on rent certain premises in New Delhi and Jajpur, Odisha, as guest houses. The guest houses are used...

No Disallowance Shall Be Made With Respect To Chargeable Sum Paid To A Foreign Company Without Deduction Of Tax: ITAT.

The Delhi Bench of Income Tax Appellate Tribunal has held that no disallowance shall be made to the assessee in regards to the chargeable sum paid by the assessee to a foreign company without deduction of tax. The division bench of N.K. Billaiya (Accountant Member) and Yogesh Kumar (Judicial Member) held that the second proviso to clause (i) of S. 40 of the Income Tax Act (IT) provides that in cases where applicable income has been declared by assessee and tax chargeable on it has been...