Tax
Violation of RBI Notification Prohibiting Deposit Of Demonetized Notes Does not attract Addition On Account of Unexplained Cash Credits: ITAT
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) held that violation of the RBI notification prohibiting deposit of demonetized notes does not attract addition on account of unexplained cash credits. The appellant/assessee is a primary agricultural credit co-operative society providing credit facilities to its members. The AO noticed that the assessee had deposited a sum of Rs. 36,36,000 in the form of Specified Bank Notes...
Notice Imposing Penalty For Concealment Of Income Can't Be Issued Without Specifying The Limb: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the notice imposing a penalty for concealment of income cannot be issued without specifying the relevant limb. The two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the Assessing Officer and the CIT (A) have simply imposed a penalty on concealment of income under Section 271(1)(c) of the Income Tax Act without giving any opportunity to the assessee...
Failure Of Assessee To Give Proper Reasons For Not Appearing Before The Tax Authorities: ITAT Imposes Cost
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) has imposed a cost of Rs.10,000 on the assessee for the failure to give proper reasons for not appearing before the tax authorities.The assessee/appellant is the director of the group company named M/s. Panama Nature Fresh Pvt. Ltd. It was the understanding of the assessee that the purchase of jewellery as well as deposits of money into the bank account were being assessed in the...
ITAT Deletes Addition Of Cash Deposited During demonetisation period by Retired Army Officer
The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) consisting of B.R. Baskaran (Accountant Member) deleted the addition of cash deposits during the demonetisation period on the ground that the retired army officer had withdrawn the cash to meet medical emergencies. The assessee is a retired army officer and is drawing a pension. During the demonetisation period, the assessee deposited a sum of Rs. 7,01,000 in aggregate in two bank accounts. Asked about the sources, the ...
Consideration For Resale Of Computer Software Is Not The Payment Of Royalty For Use Of Copyright In Computer Software: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Chandra Mohan Garg (Judicial Member) and Shamim Yahya (Accountant Member) has held that consideration for the resale of the computer software through End User Licence Agreement (EULA)/distribution agreements is not the payment of royalty for the use of copyright in the computer software and, therefore, not taxable in India. The assessee, M/s. Kony Inc., is in the business of being a multichannel application...
Assessee Discharges Primary Onus Submitting Documentary Evidence: ITAT Deletes Addition of Unexplained Cash Credits
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Ravish Sood (Judicial Member) and Jamlappa D Battull (Accountant Member), has deleted the addition made on account of unexplained cash credits. The respondent/assessee is in the business of manufacturing M.S. ingots. The assessee had filed its return of income for the assessment year 2012-13 on September 26, 2012, declaring an income. Subsequently, the case of the assessee was selected for scrutiny assessment....
Haryana Govt. Issues Instructions To Weed Out Bogus Firms For Passing Fake ITC
The Haryana Government has issued instructions for the processing of registration applications in FORM GST REG 01 in order to weed out bogus firms that pass fake ITC. "It has come to the notice of the Head Office that few proper officers in the State are insisting on personal appearances or seeking extraneous information from the applicants seeking fresh registration under GST. The matter has been examined," the instruction read. The government has directed that all applicants for ...
Relaxation In Additional Fee On Delay in filing Form 11 By LLPs Till 30 June 2022: MCA
The Ministry of Corporate Affairs (MCA) has notified the relaxation in additional fees on delay in filing Form 11 by LLPs till June 30, 2022. This Ministry has received representation seeking an extension on the timelines for filing the Annual Return (Form 11) by LLPs without paying additional fees. In view of the transition from version-2 of MCA-21 to version-3 and to promote compliance on the part of LLPs, it was decided to allow LLPs to file e-Form 11 (Annual Return of Limited...
Monthly Digest Of Tax Cases: May 2022
Indirect Taxes Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council are not binding on the Union and the State Governments. A bench led by Justice DY Chandrachud held...
Schools Not Entitled To Pay GST On Canteen And Transportation Services: AAR
The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that the schools are not liable to pay GST on the canteen and the transportation services that are furnished by schools. The applicant, Rahul Ramchandran, has a new business under the trade name "Nashik Cambridge Pre-school". The applicant intends to supply certain services to his students, faculty, and staff. The applicant wants to provide pre-school education services to its...
Income Of Mussoorie Dehradun Development Authority Not The Income Of The State Government, Not Exempt Under Article 289(1): Uttarakhand High Court
The Uttarakhand High Court has reiterated that even if a Development Authority constituted under an Act of the State Legislature does not carry on any trade or business within the meaning of Article 289(2) of the Constitution of India, it continues to have a distinct legal personality separate from the State and, therefore, its income cannot be considered to be the income of the State so as to be exempt from Union taxation under Article 289(1). The Bench, consisting of Acting Chief...
Intermediate Goods Captively Consumed For Manufacture Of Exempted Final Products Does Not Attract Excise Duty: CESTAT
The Ahmedabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT), consisting of Ramesh Nair (Judicial Member) and P.Anjani Kumar (Technical Member), has ruled that intermediate goods captively consumed for the manufacture of exempted final products do not attract excise duty. The appellant/assessee is engaged in the manufacture of brass parts of agricultural products falling under Chapter sub-heading 8424900 of the Central Excise Tariff Act, 1985. As per Notification No....