Assessing Officer Cannot Apply Wrong Method In Absence Of Audited Financials Of AE: Delhi ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Yogesh Kumar (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) has held that the AO cannot give benefit to the assessee for non-cooperation in providing audited financials of associated enterprises (AE). The appellant/assessee company, Olympus India, incorporated on October 20, 2009, is a wholly owned subsidiary of Olympus Corp. The company is engaged in the import and resale of medical equipment like...

Non Filing Of Response Due To Technical Glitch In E-Filing Portal: Delhi High Court Quashes The Order And Directs Fresh Hearing

The Delhi High Court bench of Justice Manmohan and Justice Subramonium Prasad has held that the taxpayer could not file a response under the Faceless Scheme due to a technical glitch in the e-filing portal. The petitioner/assessee has challenged the ex-parte order passed under Section 147 read with Section 144 of the Income Tax Act, 1961. The department passed the order under Section 147 read with Sections 144 and 144B of the Income Tax Act without taking the written submission of the...

Additions Cannot Be Made To Assessee's Income On Basis Of Document Declared By The CESTAT As 'Dumb Document': Ahmedabad ITAT

The Ahmedabad Bench of ITAT has ruled that additions cannot be made to assessee's taxable income under the Income Tax Act, 1961 on the basis of documents that are declared as 'dumb documents' by the CESTAT in the service tax proceedings before it. The Bench, consisting of members Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member), held that though the proceedings under the Income Tax Act and Service Tax are distinct and independent to each other, but the factual...

No GST Leviable In The Hands Of Employer On Amount Representing Employees Portion of canteen charges: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of members Atul Mehta and Arun Richard ruled that no GST is leviable in the hands of the employer on an amount representing the employee portion of canteen charges. The applicant, M/s. Cadila Healthcare Limited, is in the business of manufacturing, supplying, and distributing various pharmaceutical products. M/s. Cadila has approximately 7,200 (approx.) employees in its factory and corporate offices and was registered under the...

Assessee Deprived Of Refund Due To Wrongful Withholding Of Amount By Income Tax Dept.: Bombay High Court Imposes 6% Interest

The Bombay High Court bench of Justice S.G. Mehare and Justice R.D. Dhanuka has allowed 6% interest to the assessee on wrongful withholding of the amount by the income tax department.A search was conducted at the residence of the petitioner/assessee under Section 132 of the Income Tax Act, 1961 and an amount of Rs. 48,00,000 along with gold jewellery was seized by the department. The petitioners filed their explanation, explaining the source of the cash and jewellery. The petitioners...

Computer Software Supplied To Public Funded Research Institutions Attracts 5% GST: Karnataka AAR

The Karnataka Authority of Advance Ruling (AAR), consisting of members Dr. M.P.Ravi Prasad and T.Kiran Reddy, has ruled that 5% GST is payable on computer software supplied to public-funded research institutions. The Applicant, Keysight Technologies India Pvt. Ltd., is in the business of supplying scientific and technical equipment and time-based and perpetual software licences to public-funded research institutions registered with the Government of India. The applicant submitted ...

Wrongful Availment Of ITC: Chhattisgarh High Court Refuses Bail

The Chhattisgarh High Court bench headed by Chief Justice Arup Kumar Goswami and Justice Gautam Chourdiya has refused to grant bail to a person allegedly involved in availment of fraudulent Input Tax Credit (ITC).The appellants created several fictitious and physically non-existent trading company firms in Chhattisgarh, Jharkhand, Madhya Pradesh, West Bengal and Maharashtra, got them registered in GSTN portal online using identity credential of several persons using forged PAN and issued...

Monthly Digest Of Tax Cases- April 2022

Indirect Taxes Supreme Court1.Plea In Supreme Court Challenges The Constitutional Validity Of Levy Of GST On Lease/ Rent Payments Case Title: Myrayash Hotels Pvt. Ltd. v. Union of India & Ors. The Supreme Court of India has asked the petitioner(s) to serve an advance copy to the Additional Solicitor General to seek instructions in a plea challenging constitutional validity of levy of GST on lease/ rent payments.2.Interest On Delayed Refunds Covered Under Principal Provision Of...

Weekly Round-Up Of Tax Cases: 24 April To 30 April, 2022

Supreme CourtIncome Tax Act - Loss Suffered Due To Exchange Fluctuation While Repaying Loan Can Be Regarded As Revenue Expenditure : Supreme CourtCase Title: Wipro Finance Ltd. vs Commissioner of Income Tax Citation: 2022 LiveLaw (SC) 418 Allowing the appeal filed by Wipro Finance Ltd., the Supreme Court observed that the loss suffered owing to exchange fluctuation can be regarded as revenue expenditure and thus an allowable deduction. The bench comprising Justices allowed the ...

Spot Memos Issued By Audit Department Unenforceable, Since Earlier Proceedings On Same Issue Not Completed: Calcutta High Court

The Calcutta High Court has quashed the spot memos issued to the assessee by the audit department and ruled them unenforceable since earlier proceedings initiated by the revenue department on the same issue were not completed. The Bench, consisting of Justices T. S. Sivagnanam and Hiranmay Bhattacharyya, observed that different wings of the same department had been issuing notices and summons to the assessee without taking any of the earlier proceedings to a logical end. The...

No Deemed Registration Even If Registration Application U/Sec 12AA Income Tax Act Is Not Decided Within Six Months: Supreme Court

The Supreme Court has observed that there shall not be any deemed registration even if in a case where the registration application under Section 12AA of the Income Tax Act, 1961, is not decided within six months.The bench comprising Justices MR Shah and BV Nagarathna was considering a Special Leave Petition challenging a judgment of Allahabad High Court in which the issue raised was whether on non-deciding the application for registration under Section 12AA (2) of the Income Tax Act within a...

GST ITC Admissible On Bus Hired For Transportation Of Employees Having Capacity Of More Than 13 Passengers: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of Atul Mehta and Arun Richard ruled that the GST ITC is admissible on buses hired for transportation of employees having a capacity of more than 13 passengers.The applicant, M/s. Emcure Pharmaceuticals Limited, submitted that it provides a canteen and bus transportation facility to its employees. The canteen and bus transportation facility are part and parcel of the employment arrangement with the employees. The applicant...