Deliberately Concealing The Income, Assessee Can Be Prosecuted : Madras High Court

The Madras High Court has ruled that an assessee can be prosecuted for willfully and deliberately concealing his income by not filing his income tax return within the stipulated time, even after the return belatedly submitted by the assessee is accepted by the revenue authorities on the basis of which an assessment order is passed. The Single Bench of Justice G. Chandrasekharan observed that the concealment and suppression of income by the assessee came to light only after a survey...

Whether Income Tax Demand And Penalty Extinguished In CIRP ? Delhi High Court Stays Demand Notice

The Delhi High​​ Court bench of Justice Manmohan and Justice Manmeet Pritam Singh stayed an income tax assessment order and consequential demand and notice of penalty, which were assailed on grounds of being in contravention of the order of the National Company Law Tribunal (NCLT). An application filed by the Union of India (through the Ministry of Corporate Affairs) under Sections 241 and 242 of the Companies Act before the NCLT based on recommendations of the Ministry of Finance,...

Govt. Extends Compensation Cess Levy Upto 31 March, 2026

The Ministry of Finance has extended the time period for the levy of compensation cess up to 31 March, 2026. The government has notified the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022. "The period for levy and collection of cess under sub-section (1) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be up to the 31st March, 2026," the notification read. The additional time will allow the centre to repay the loans,...

Gujarat High Court Directs Dept. To Refund IGST On Ocean Freight Along With The Interest

The Gujarat High Court bench of Justice A.J. Desai and Justice Bhargav D. Karia has directed the department to refund IGST on ocean freight along with the interest.The applicants/petitioners have sought the direction to the respondents/department to grant a refund of the amount of IGST already paid by the applicants pursuant to Entry No.10 of Notification No.10/2017-IGST (Rate) dated 28.6.2017 with appropriate interest on the refund. The applicant has challenged the vires of Entry...

GST Not Payable On RCM Basis On Commission Paid To The Overseas Commission Agent: AAR

The Uttarakhand Authority of Advance Ruling (AAR)consisting of Anurag Mishra and Rameshvar Meena has ruled that GST is not payable on the basis of the Reverse Charge Mechanism (RCM) on the commission paid to the Overseas Commission Agent. The applicant is a manufacturer and carries on the business of supplying seasonings, spices, premixes and similar food products to its customers located within and outside India. The applicant approached the foreign customers in order to supply...

Just 3 Days' Time Granted To Respond To The Income Tax Notice: Delhi High Court Remands The Matter Back To Assessing Officer After Setting Aside

The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has remanded the matter back to the assessing officer as just 3 days' time was granted to respond to the income tax notice.The petitioner/assessee has assailed the notice issued under Section 148A (b) of the Income Tax Act, 1961 and the order passed under Section 148A (d) for the Assessment Year 2018–19. The assessee contended that only three days' time was granted to the assessee to respond, as...

Income Tax Penalty Can't Be Imposed For Inadvertent And Bonafide Mistake : ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT)Income Tax Appellate Tribunal (ITAT), headed by R.S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), has deleted the penalty on the grounds that the excess claim of deduction was made due to a bona fide and unintentional mistake.The assessee/appellant debited to its profit & loss account: education cess on TDS; income tax; penalty on TDS; and TDS. The amounts were claimed in the profit and loss account....

Section 41 Disallowance Can Only Be Made With Cogent Evidence Of Cessation Of Liability: ITAT Remands The Matter Back To AO

The Delhi Bench of theIncome Tax Appellate Tribunal (ITAT)has held that the issue of the genuineness of the purchases will be applicable only if the purchases belong to the current year.The two-member bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that if the department is of the opinion that purchases were made in earlier years but now the liability has ceased to exist, disallowance can only be made if cogent evidence is brought on record for...

ITAT Upholds Addition On Account Of Manipulation And Rigging Of Shares Via Penny Stock Company

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Saktijit Dey (Judicial Member), has upheld the addition on the grounds that there was an astronomical increase in the price of the shares due to price manipulation and rigging. The assessee/appellant is a resident Hindu Undivided Family (HUF). For the assessment year under dispute, the assessee filed its return of income, declaring income. The assessee's income tax return was chosen for examination to...

CBDT Notifies Extension Of Applicability Of TP Safe Harbour Rules Till AY 2022-23

The Central Board of Direct Taxes (CBDT) has extended the applicability of Rule 10TD (3B) of the Income-tax Rules, 1962, which deals with safe harbour, till Assessment Year 2022-23. Rule 10 TD prescribes a list of eligible international transactions where the transfer price declared by the assessee shall be required to be accepted by the Income-tax Authorities. According to Rule 10TD (3B), the rules will apply for the assessment years 2020-21, 2021-22, and now, following the...

Unit Located In The SEZ Shall Be Treated As A Distinct Identity From Its Other Units: CESTAT Ahmedabad

The Ahmedabad Bench of CESTAT has held that if a unit of an enterprise is located in the Special Economic Zone (SEZ), the said SEZ Unit shall be treated as having a distinct identity from the other units of the said enterprise which are located outside the SEZ. Therefore, the Single Bench of Judicial Member Ramesh Nair held that a claim for refund of the service tax paid by a SEZ Unit on the services received by it from its units located in a Domestic Tariff Area (DTA) could not be ...

Advance Ruling Can't Be Sought After The Receipt Of The Notice: Madhya Pradesh High Court

The Madhya Pradesh High Court has ruled that the application under section 97 of the CGST Act for obtaining the advance ruling cannot be made before the Authority of Advance Ruling (AAR) during the pendency of the issue before the authority and after the receipt of the notice. The division bench of Justice Vivek Rusia and Justice Amar Nath has observed that the petitioner approached the authority to obtain the advance ruling only after a search was conducted in which the evasion of SGST...