SCN Issued By DRI Was Without Authority of Law: Chhattisgarh HC Stays Proceedings

The Chhattisgarh High Court bench of Justice Parth Prateem Sahu has quashed the show cause notice which was issued by the DRI and stayed the proceedings.The petitioner/assessee submitted that pursuant to the arrest made by DRI of two persons at Railway Station-Raipur. The DRI searched the house of the petitioner on the same date and seized gold bars, silver ingots, fine silver, and cash amounts also amounting to Rs. 32 lakhs. The petitioner has challenged the seizure proceedings...

Commission Paid To Persons Who Are Not Beneficial To Business Of Assessee Is Taxable : Orissa High Court

The Orissa High Court has dismissed a challenge against an order of the Income Tax Appellate Tribunal, Cuttack (ITAT) which disallowed commission expenses as claimed by the appellant. It held that the appellant was not able to prove the expertise of persons to help him in business to whom the said commission was paid. Denying the arguments of the appellant, a Division Bench of Chief Justice Dr. S. Muralidhar and Justice Radha Krishna Pattanaik observed, "Nevertheless, claiming that...

Tax Cases Weekly Round-Up: 8 May To 14 May, 2022

Delhi High Court Bail Amount Can Be Paid By Cash Ledger, Debit Ledger Of ITC:Delhi High Court Refuses To Cancel Bail Of A Person Accused of FraudulentlyAvailing ITC Case Title: Amit Gupta Vs Directorate General of GST Intelligence Headquarters Citation: 2022 LiveLaw (Del) 426 The Delhi High Court bench of Justice Mukta Gupta has ruled that the bail amount can be paid by cash ledger and debit ledger of the Input Tax Credit (ITC). Sufficiency Of The Correctness Of Material Is...

Reassessment Order Passed Without Issuance of Section 148 Notice Is Not Valid: Calcutta High Court

The Calcutta High Court bench of Justice Md. Nizamuddin has ruled that the reassessment order passed without issuance of notice under Section 148 of the Income Tax Act is not valid. The petitioner/assessee challenged the assessment order on the ground that it was passed without serving any notice under Section 148 of the Income Tax Act, 1961 which is a condition precedent for initiating proceedings under Section 147 of the Act. The petitioner after getting the assessment order has...

Genuine Transactions With Suppliers Whose GST Registration Cancelled: Calcutta High Court Allows GST ITC To Assessee

The Calcutta High Court bench of Justice Md. Nizamuddin has held that the Input Tax Credit (ITC) cannot be denied on genuine transactions with suppliers whose GST registration was cancelled after the transaction.The petitioners/assessee were aggrieved by the action of the department denying the benefit of the Input Tax Credit (ITC). The ITC was denied the purchase of the goods in question from the suppliers and asked the petitioners to pay the penalty and interest under the provisions of...

Bus Body Building On Chassis Owned By GST Registered Customer Attracts 18% GST: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of members Arun Richard and Atul Mehta ruled that 18% GST is payable on bus body building on chassis owned by GST registered customers and unregistered customers. The applicant, M/s. Vasant Fabricators Pvt. Ltd. (VFPL), is in the business of building the bodies of various vehicles falling under Chapter 87 of the First Schedule to the Customs Tariff Act, such as mounting of tankers, tippers, etc., on chassis provided by the owner...

Allahabad High Court Stays GST Demand On Payment Of Royalty To Conduct Mining Activity

The Allahabad High Court bench of Justice Saumitra Dayal Singh has stayed the GST demand on payment of royalty to conduct mining activity. The petitioner/assessee has assailed the appeal order. Since the Tribunal was yet to be constituted, the writ petition was entertained. The First Appeal Order arising from the earlier order under Section 73 of the U.P. GST Act, 2017 was also challenged. The petitioner has also challenged the ex parte order passed by the State GST authorities pursuant...

Consideration Paid For Purchase Of Advertisement Space Does Not Amount To 'Royalty' Under Income Tax Act: ITAT Chennai

The Chennai Bench of ITAT has ruled that consideration paid for purchase of advertisement space does not amount to 'royalty' under the Income Tax Act, 1961. The Bench, consisting of members Mahavir Singh (Vice President) and Dr. M. L. Meena (Accountant Member), held that the Finance Act, 2016 recognizes providing advertising space as a 'specified service', which is subject to Equalisation Levy. The ITAT added that the contention that sale of advertising space was 'royalty' under the...

Credit Worthiness Of The Creditor And Genuineness Of Transaction Explained By The Assessee: Bombay High Court Quashes Re-assessment Notice

The Bombay High Court has quashed the reassessment notice. The assessee explained the credit worthiness of the creditor and the genuineness of the transaction.The division bench of Justice K.R. Shriram and Justice N.R. Borkar observed that the re-opening proposed was purely based on a change of opinion. The assessing officer was also satisfied with the credit worthiness and details provided by third party lenders. The petitioner/assessee, a limited liability partnership firm, is in the...

Selection Of Returns And Procedure For Complete Scrutiny During The F.Y. 2022-23: CBDT Issues Guidelines

The Central Board of Direct Taxes (CBDT) has issued guidelines for selecting returns and procedures for full scrutiny during the financial year 2022–23. The CBDT said that, subject to exclusion, returns submitted for the assessment year applicable to the prior year in which a survey was performed under section 133A of the Income Tax Act The books of accounts, documents, etc. which were not impounded; returned income that is not less than the returned income of the preceding assessment...

Offices Not To Issue Reassessment Notices To Small Taxpayers, Instructs CBDT

In the light of the Supreme Court's judgement saving 9000 reassessment cases, the Central Board of Direct Taxes (CBDT) has issued instructions directing the officer not to issue reassessment notices to small taxpayers if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than Rs. 50 lakhs. The CBDT has directed that information and materials be provided in all cases within 30 days. However, it has also been noticed that notices cannot...

Bonafide Mistake In Selection Of Wrong ODC Vehicle Type While Generating E-Way Bill: Gujarat High Court Quashes Detention Order

The Gujarat High Court has quashed the detention order as there was a bonafide mistake in the selection of the wrong ODC vehicle type while generating the e-way bill.The division bench of Justice J.B. Pardiwala (as then was) and Justice Nisha M. Thakore observed that the goods were in transit with all the necessary documents, including the E-way bill generated from the GST portal. The goods were moved by a truck whose registration number was also correct. The only mistake in this case...