Notice Didn't Contain Categorical Indication Of Furnishing Inaccurate Particulars Or Concealment Of Particular Income: ITAT Quashes Penalty Proceedings

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT)has quashed the penalty proceedings as the notice issued to the assessee did not mentioned a categorical indication of specific violation in respect of furnishing inaccurate particulars or concealment of particular income.The two-member bench headed by G.S. Pannu (President) and Anubhav Sharma (Judicial Member) has observed that in the assessment order and penalty order there is apparent ambiguity as to what was the basic ground for...

Signature Of the Person Present Obtained in Panchanama, Madhya Pradesh High Court Refuses Re-measuring of Stock

The Madhya Pradesh High Court has refused to direct the re-measuring of the stock of coal lying in the premises as the search team has obtained the signatures of the persons present while carrying out the Panchanama.The division bench of Justice Sheel Nagu and Justice Maninder S. Bhatti perused the panchanama and observed that on the date of search itself, the amount of tax and a penalty were deposited by the petitioner as discrepancies were found in the stock, and thus there was no...

Service Recipient Liable To Pay GST On Interest Amount Under Arbitral Award For Delayed Payment: Bombay High Court

The Bombay High Court has held that the service recipient is liable to pay the GST to the government on interest under an arbitrary award and it can not be deducted from the dues payable to the service provider.The single bench of Justice B.P. Colabawalla has observed that service tax is an indirect tax, and it is possible that it may be passed on. Therefore, an assessee can certainly enter into a contract to shift its liability for service tax. The applicant has filed the Execution...

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of C.N. Prasad (Judicial Member) has observed that if the Assessing Officer does not make any addition on the primary ground on the basis of which procedings under Section 147 of the Income Tax Act were initiated, he cannot make other additions.The assessee/appellant has challenged the validity of the assessment made by the Assessing Officer as the assessment was reopened for escapement of income on account of cash ...

Assessee Entitled To Refund Of Education Cess And Krishi Kalyan Cess Lying Unutilized In CENVAT Account: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the assessee is entitled to a refund of education cess and Krishi Kalyan Cess lying unutilized in the CENVAT account. The appellant/assessee is in the business of providing dredging services and is registered with the department for the services rendered by them. They filed a refund claim under section 11B of the Central Excise Act, 1944 on 5.2.2020 for the refund of unutilized CENVAT credit...

Reassessment Order Can't Be Made Until There Has Been Service Of Notice: ITAT

The Delhi Income Tax Appellate Tribunal (ITAT) consisting of C.N. Prasad (Judicial Member) has observed that reassessment cannot be made until there has been service of notice.The assessee/appellant has challenged the validity of the reassessment order, stating that the mandatory requirement of service of notice under section 148 of the Income Tax Act was not followed, which vitiated the entire reassessment proceedings. The assessee submitted that the return for the assessment year was...

Right To File Objection To SCN Can't Be Denied Due To One Day Delay: Delhi High Court

The Delhi High Court bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ruled that the right to file an objection to the Show Cause Notice cannot be denied owing to a one-day delay. The petitioner has challenged the order passed under Section 148A (d) of the Income Tax Act, 1961 and the notice passed under Section 148 of the Income Tax Act. The petitioner was given time till April 8, 2022, to reply to the show cause notice dated March 30, 2022. The order under Section...

Service Tax Cannot Be Levied On Reimbursement Of Expenses Incurred By The Service Provider: Reiterates CESTAT Delhi

The Delhi Bench of CESTAT has reiterated that service tax cannot be levied on reimbursement of expenses incurred by the service provider. The Bench, consisting of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member), held that since Rule 5 of the Service Tax (Determination of Value) Rules, 2006 has been held to be ultra vires by the Supreme Court in the case of Union of India versus Intercontinental Consultants and Technocrats Pvt. Ltd. (2018), the nature of services...

Justifiable Doubts Regarding The Independence Of Empanelled Arbitrators Would Always Exist: Meghalaya High Court

The High Court of Meghalaya has held that if a contractor/ tenderer does not accept the names of the possible arbitrators that are listed on the panel prepared by the tenderee, the panel cannot be enforced since there would always be justifiable doubts regarding the independence or impartiality of the empanelled arbitrators. The Single Bench of Chief Justice Sanjib Banerjee held that even if a person is named as an arbitrator in the arbitration agreement entered into before the...

No GST Payable On Work Of 'Shaheed Dwar' At Banjarawala, Dehradun: Uttarakhand AAR

The Uttarakhand Authority of Advance Ruling (AAR) consisting of Anurag Mishra and Rameshvar Meena has ruled that no GST is payable on the work of 'Shaheed Dwar' at Banjarawala, Dehradun. The applicant, Garhwal Mandal Vikas Nigam Limited, is an undertaking of the Government of Uttarakhand. The applicant has been receiving consideration for the implementation of various projects from the government in the form of grants. The grants are utilised by way of procurement of services or goods...

No GST Payable For Movement Of Goods Between Two Units Working Under Same GSTIN: Rajasthan AAR

The Rajasthan Bench of Authority of Advance Ruling, consisting of Vikas Kumar Jeph and M.S. Kavia has ruled that GST is not payable on the movement of goods between two units working under the same GSTIN.The applicant is in the business of manufacturing Thermocol, PET Bottles, Tableware, Kitchenware & Tiffin, Toilet ware, Plastic Casseroles, Steel Household, Plastic Chairs, and Flasks. The applicant has been availing input tax credit on capital goods, inputs as well as input services ...

Tax Cases Weekly Round-Up: 12 June To 18 June, 2022

Delhi High CourtDelhi High Court Quashes Assessment Order For Not Giving Opportunity To File Objection To SCN Case Title: Jindal Exports and Imports Private Limited Vs DCIT The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has quashed the assessment order as the assessee was not given an opportunity to file an objection to the show cause notice. Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of...