Show Cause Notice And Reassessment Order Based On Distinct And Separate Grounds, No Details Of Bogus Purchases Were Given: Delhi High Court Quashes The Order.

The Delhi High Court has held that the show cause notice as well as the reassessment order under Section 148A(d) of the Income Tax Act were based on distinct and separate grounds. The department failed to provide the details of the transaction and the vendors from whom the bogus purchases were made.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that "the show cause notice primarily states that "it is seen that the petitioner has made purchases ...

Andhra Pradesh Govt. Mandates DIN For All Communications From August 1, 2022

The Andhra Pradesh governmenthas mandated the generation and quoting of Document Identification Numbers (DIN) on any communication sent to taxpayers by the officers and staff of the Commercial Taxes Department.Any communication which does not bear the electronically generated DIN/Unique identification number shall be treated as invalid and shall be deemed to have never been issued. "In keeping with the government's objectives of transparency and accountability in Commercial Taxes...

GST On Liquidated Damages, Compensation And Penalty Arising Out Of Breach Of contract: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular on the GST applicability on liquidated damages, compensation, and penalties arising out of breach of contract or other provisions of law.There has to be an express or implied agreement, oral or written, to do or abstain from doing something against payment of consideration for doing or abstaining from such an act for a taxable supply to exist. An agreement to do an act or abstain from doing an act or to tolerate...

GST Rates & Exemptions: List Of 16 Services

The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications regarding applicable GST rates and exemptions on certain services.The Board has received representations seeking clarification on the various issues, including the GST rate of ice-cream, GST on storage or warehousing of cotton in baled or ginned form, GST on sanitation and conservancy services supplied to the army, etc. The issues have been examined by the GST Council at its 47th meeting, held on June 28th...

Compensation With Interest Received Up To The Date Of Land Acquisition Is Taxable Under The Head "Capital Gains": ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the compensation with interest received by the assessee up to the date of land acquisition should be taxed under the head "Capital Gains".The two-member bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that the interest paid to the assessee for any delay in payment of the compensation from the date of acquisition of the property should be taxed under the head "Income from ...

Know GST Rate On 7 Goods

Based on the recommendations of the GST Council in its 47th meeting held on the 28th and 29th June at Chandigarh, the CBIC has issued clarifications with reference to the GST levy on various goods.5% GST on electrically operated vehicle The CBIC has clarified that an electrically operated vehicle is to be classified under HSN 8703 irrespective of whether the battery is not fitted to the vehicle at the time of supply. The supply attracts 5% GST in terms of entry 242A of Schedule I...

Deposit Received From Nominal Members Of Society, Non-Deduction Of TDS On Interest Paid By Them. ITAT Deletes Addition Of Income.

The Income Tax Appellate Tribunal (ITAT) of the Pune Bench struck down the addition made under section 40(a)(ia) of the Income Tax Act for the non-deduction of TDS on interest paid on deposits received from nominal members of the society. The two-member bench of S. S. Viswanethra Ravi (Judicial Member) and Inturi Rama Rao have observed that the cooperative bank is also a species of cooperative society, and is entitled to the benefit of the general exemption provided to all cooperative...

Supply Of Telecommunication Services To Local Authority Is A Taxable Service: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that the supply of telecommunication services to local authorities is a taxable service.The two-member bench of B. Raghu Kiran and S.V. Kasi Visweswara Rao has observed that Vodafone Idea Limited is providing data and voice services to the Greater Hyderabad Municipal Corporation (GHMC) and to the employees of the municipalities. There is no direct relation between the services provided by Vodafone Idea Limited and the functions...

Revisionary Order Invalid Due to Lack of DIN: ITAT

The Kolkata Income Tax Appellate Tribunal (ITAT) has declared the revisionary order passed by the CIT(E) and deemed to have never been issued as it fails to mention Document Identification Number (DIN) in its body by adhering to the CBDT circular. The two-member bench of Sanjay Garg (Judicial Member) and Girish Aggarwal (Accountant Member) observed that there was no reference to the fact that the order was issued manually without a DIN for which the written approval of the Chief...

Income Tax Authorities Cannot Impose Conditions Beyond The Scheme Of Law While Granting Registration To Charitable Institutions: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the Income Tax Authorities cannot impose additional conditions beyond the scheme of law while granting registration to charitable institutions and trusts under Section 12A of the Income Tax Act, 1961. The Bench, consisting of Pramod Kumar (Vice President) and Aby T Varkey (Judicial Member), held that the Commissioner of Income Tax (CIT) plays a limited role under Section 12AB (1), while granting registration to...

Cash Gifts Received From Close Relatives To Treat Cancer Can't Be Termed As "Unexplained": ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that the cash gifts received by the assessee from her close relatives to treat her husband suffering from cancer cannot be treated as "unexplained". The bench of Anil Chaturvedi (Accountant Member) has observed that the assessee discharged her initial onus by proving the identity, creditworthiness, and genuineness of the transactions. Therefore, the AO cannot insist on the assessee proving the...

Service Tax On Composite Works Contracts Not Leviable Prior To 2007 Amendment To Finance Act 1994 : Supreme Court

The Supreme Court, on Tuesday, held that service tax could not be levied on composite works contracts prior to the introduction of the Finance Act, 2007, which by amending the Finance Act, 1994 had introduced Section 65(105)(zzzza) defining works contracts. The Apex Court noted that in the absence of a charging section and the modalities to levy and assess, service tax cannot be levied on the service element of works contract. The Apex Court had reached the same conclusion...