Taxing Authorities Can't Stop Assessee From Claiming Statutory Right: Allahabad High Court

The Allahabad High Court has held that the taxing authorities cannot, in the garb of technicality, stop any assessee from claiming his statutory right, as provided under the Income Tax Act.The bench of Justice Rohit Ranjan Agarwal has observed that, due to the mistake of the department or a technical glitch in the software, when an appeal of an assessee is not reflected on the portal, the department cannot deny the appeal filed offline on technical grounds.The appellant/assessee is a registered...

Haldiram Not Liable To Pay Service Tax On Take-Away Of Food Items: CESTAT

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be levied on the activity of takeaway food items.The bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) observed that the activity of takeaway of food items would amount to a sale and would not involve any element of service.The appellant/assessee is engaged in running food outlets where customers can either purchase packaged foods like sweets or...

Active PAN In Name Of Amalgamating Company, Would Not Justify Reassessment Proceedings Against It: Bombay High Court

The Bombay High Court has reiterated that once the revenue department is aware about the amalgamation and had knowledge regarding the non-existence of the amalgamating entity, an assessment order passed against such amalgamating entity would be void and not merely a procedural defect. The bench of Justices Dhiraj Singh Thakur and Kamal Khata remarked that merely because the PAN in the name of the non-existent entity/ amalgamating entity had remained active, it would not justify the...

Gauhati High Court Directs CIT (TDS) To Refund Income Tax Deducted From Salary Of Scheduled Tribe Officer Expeditiously

The Gauhati High Court has directed the Commissioner of Income Tax (TDS) to expeditiously process the request for a refund of income tax deducted from the salary of the DIG (Ops) of the Border Security Force, who is a member of the scheduled tribe.The single bench of Justice Soumitra Saikia has observed that the phrase "residing in any area specified" under Section 10 (26) cannot be interpreted in a way that denies Schedule Tribe members who migrate from their places of origin, which just so...

Payroll Services By IBM Philippines Not FTS, TDS Not Liable To Be Deducted: Karnataka High Court

The Karnataka High Court, while dismissing the appeal of the department, held that payroll services by IBM Philippines are not fees for technical services (FTS), and the TDS is not liable to be deducted.The division bench of Justice P.S. Dinesh Kumar and Justice T.G. Shivashankare Gowda has observed that the work has been outsourced to IBM Philippines. IBM Philippines was carrying out the work described in the agreement between IBM India and P&G India. Hence, IBM Philippines was not...

CBDT Circular Disallowing Expenses Incurred On Granting Freebies To Doctors, Not Applicable To A/Y 2008-09: Bombay High Court

The Bombay High Court has ruled that the CBDT Circular, dated 01.08.2012, as per which the expenses incurred in granting freebies to medical practitioners is inadmissible under Section 37 of the Income Tax Act, 1961, since it is prohibited by law, would not be applicable to the assessment year 2008-09. The bench of Justices Dhiraj Singh Thakur and Kamal Khata noted that Regulation 6.8 of the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002, which ...

Absence Of Material: Bombay High Court Quashes Reassessment Proceedings

The Bombay High Court has quashed the reassessment proceedings as the issue of "large loans and advances" was not only raised during the scrutiny assessment but also responded to by the assessee.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that between the date of the order of assessment, which is sought to be reopened, and the date of the formation of the opinion, nothing new happened. There is neither new information on hand nor reference made to any...

CBDT Notifies ITR Forms For Assessment Year 2023-24

The Central Board of Direct Taxes (CBDT) has notified the ITR forms for the assessment year 2023–24.The Board has notified the Income-tax (First Amendment) Rules, 2023, which shall come into force with effect from April 1, 2023.The Board has notified the Indian Income Tax Return (ITR) Forms, namely ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, and ITR-V, and the Indian Income Tax Return Acknowledgement for the Assessment Year 2023–24.The ITR-1 SAHAJ is for individuals who are residents...

Invalid Assumption Of Jurisdiction: Orissa High Court Quashes Reassessment Notices Against Vedanta

The Orissa High Court has quashed the reassessment notice issued against Vedanta Resources Ltd. (VRL) on the grounds of an invalid assumption of jurisdiction.The division bench of Chief Justice Dr. S. Muralidhar and Justice M.S. Raman observed that under Section 127(2)(a), no transfer of jurisdiction can take place without affording the Assessee a reasonable opportunity of being heard in the matter.The petitioner, VRL submitted that the web portal of the Department where on the page titled 'Know...

No Reason For AO To Believe Income Chargeable To Tax Escaped Assessment: Bombay High Court

The Bombay High Court has held that the development agreement permitted construction on the land only as a licensee, which did not have the effect of transmitting possession in favor of the licensee as per Section 53A of the Transfer of Property Act.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that there was neither any tangible material nor any reason for the assessing officer to believe that "any income chargeable to tax had escaped assessment,". The...

State GST Authority Can’t Prosecute If The Central Authority Has Already Initiated Action: Madras High Court

The Madras High Court has held that the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter.The bench of Justice Abdul Quddhose has observed that the petitioner will have to participate in the personal hearing and state all his objections with regard to the action launched by the State Authority under the TNGST Act, 2017. Unless and until the petitioner participates in...

Penalty For Non Appearance - Not Valid If No Attempt To Evade Tax Is Made Out: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that non-appearance before the Information Collection Centre (ICC) cannot be made a ground to initiate penalty proceedings if no attempt to evade tax is made.The division bench of Justice Ritu Bahari and Justice Manisha Batra has observed that the driver had produced the documents at I.C.C. and subsequently, at the time of checking, he showed all the invoices. There was no attempt to evade tax. Hence, the VAT appeal was allowed, and no case for the...