Delhi High Court Stays Reassessment Order Against IBIBO Group

The Delhi High Court has stayed the reassessment order against an online travel agent, IBIBO Group, and issued a notice to the income tax department."The Assessing Officer is permitted to pass the reassessment order, yet the same shall not be given effect to and shall be subject to further orders to be passed by this Court," the division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ordered.The petitioner, the IBIBO group, challenged the order passed under Section 148A(d) of...

Reliance Industrial Holdings and Biomatrix Not Associated Enterprises, No income Escaped : ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Reliance Industrial Holdings and Biomatrix were associated enterprises, and, therefore, it could not be said that any income on account of Arm's Length Pricing (ALP) has escaped assessment.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep S. Karhail (Judicial Member) has quashed the reassessment proceedings and observed that the AO's recorded reasons for reopening the assessment were unsustainable...

Liability To Deduct TDS Under Section 201 of Income Tax Act Is A Vicarious Liability, Which Ends With Discharge Of Principal Liability Of Recipient Of Income: ITAT

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the liability to deduct tax at source (TDS) under Section 201 read with Section 195 of the Income Tax Act, 1961, is a vicarious liability of the payer of an income and thus, the liability to deduct TDS ceases to exist when the primary liability of the recipient of income is already discharged. The Bench of Pramod Kumar (Vice President) and Amit Shukla (Judicial Member) held that the provisions of Section 201 of...

Cenvat Credit Can't Be Denied Merely For Non-Registration Of Input Service Distributor : CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit cannot be denied on the grounds of non-registration of input service distributor registration in respect of bank charges and chartered accountant services.The bench of Sulekha Bevi C.S. (Judicial Member) observed that there is nothing in the statutory rules to disentitle an unregistered input service distributor from availing of CENVAT credit.The appellant/assessee is a manufacturer...

Assessee Proved Creditworthiness Of Loan Transactions: ITAT Deletes Addition

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition as the assessee proved the creditworthiness of loan transactions.The two-member bench of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) has observed that where all the evidence were filed by the assessee proving the identity and creditworthiness of the loan transactions, the fact that summons issued were returned unserved or no one complied with them is of little significance to prove the...

CBIC Issues Guidelines for verifying the Transitional Credit

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for verifying the transitional credit in light of the order of the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd.The Supreme Court has directed that the common portal be opened for filing prescribed forms for availing of transitional credit through TRAN-1 and TRAN-2 for two months, from October 1, 2022, to November 30, 2022, for the aggrieved registered assessee. The applicant's...

Show Cause Notice Issued To The Driver Of Consignment Is Not Adequate: Madras High Court

The Madras High Court has held that the show-cause notice issued to the driver of the consignment is not adequate.The single bench of Justice S. Srimathy has quashed the demand for tax and penalty in Form GST MOV-09 and directed the department to issue a fresh notice.The petitioner is an assessee on GST MOV-09. The petitioner submitted that, mistakenly, the consignment was mentioned as if it were transported to Chennai. After intercepting the consignment, the respondent or department issued the...

Tax Paid On Purchases To Meet The CSR Obligations Is Eligible For ITC: Telangana AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that the tax paid on purchases made to meet the obligations under corporate social responsibility (CSR) will be eligible for input tax credit (ITC) under the CGST and SGST Acts.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the expenditure made towards corporate responsibility under Section 135 of the Companies Act, 2013, is an expenditure made in furtherance of the business.The applicant is a...

Delhi High Court Quashes Reassessment Order In The Name Of A Non-Existing Entity

The Delhi High Court has quashed the reassessment order in the name of a non-existing entity.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that not only was the notice issued in the name of the transferor company but the order under Section 148A(d) of the Income Tax Act, as well as the notice under Section 148, have been issued on the PAN of the transferor company.The Aureole Impex Pvt. Ltd. (Transferor Company) was merged with M/s. Rajasthan Global Securities...

CBIC Issues Clarification On Refund Related Issues

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on GST refund-related issues.The CBIC has received various representations from the trade and field formations seeking clarification on various issues pertaining to the implementation of the formula prescribed under Rule 89(5) of the CGST Rules, 2017 and the restriction on refund of unutilised ITC on account of inverted duty structure in the case of the supply of certain goods.The formula in sub-rule (5) of rule 89...

No Excise Duty Can Be Demanded On Semi-Finished Goods Lying At The Time Of Debonding Of 100% EOU: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty cannot be demanded on semi-finished goods or work in process lying at the time of debonding of 100% Export Oriented Units (EOU).The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that at the intermediate stage when the goods are not fully manufactured, the excise duty is not payable at the time of debonding, particularly when the goods have...

Finished Goods Destroyed In Fire; Bajaj Herbals Eligible For Remission Of Excise Duty: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Bajaj Herbals was eligible for remission of duty on the finished goods destroyed in the fire incident.The bench of Ramesh Nair (Judicial Member) has observed that short circuits are a usual cause of fire in the majority of cases; therefore, the fire due to a short circuit cannot be attributed to any malafide on the part of the appellant, nor can it be said that the appellant has not taken the...