Corpus Donations Received By A Trust For A Specific Purpose Are Not Taxable, Even If The Trust Is Not Registered: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Sandeep Singh Karhail (Judicial Member) and Gagan Goyal (Accountant Member), has ruled that the corpus donations received by a Trust for a specific purpose are not taxable, even if the Trust is not registered under Section 12 A of the Income Tax Act, since they are in the nature of a capital receipt. The Assessee Versova Kokni Sunni Jamat Trust filed its income tax return for the relevant assessment year. The Assessing Officer (AO)...

Only PCIT Can Sanction Reassessment Notice After Expiry Of 4 Years, Not ACIT: Bombay High Court

The Bombay High Court bench of Justice N.R. Borkar and Justice K.R. Shriram has held that after four years of expiry from the end of the relevant assessment year, only the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner (PCIT) can accord the approval to the reassessment notice and not the Additional Commissioner of Income Tax (ACIT).The petitioner/assessee has challenged the reassessment notice issued under Section 148 of the Income Tax Act,...

If The Authorities Acknowledge The Error And Accepts Repayment Of Erroneous Refund, It Is Logical To Restore The ITC In The Electronic Tax Ledger : Gujarat High Court

The Gujarat High Court has directed the revenue to re-credit/restore the Input Tax Credit (ITC) to the tune of INR 1,39,49,810 in the electronic tax ledger of the writ petitioner . The Bench comprising Justice JB Pardiwala and Justice Nisha Thakore was hearing a writ petition which sought from the Respondent-authorities to re-credit the ITC of INR 139,49,810 in the electronic credit ledger along with interest.The writ petitioner/ applicant , a Company registered under the Companies Act, was...

Gujarat High Court Directs Assistant Commissioner Of CGST To Finalise Assessment Proceedings Within 2 Months On Account Of Severe Delay

The Gujarat High Court has recently issued a writ directing the Assistant Commissioner of CGST and Central Excise to initiate and complete the final assessment proceedings concerning the Applicant company and further release the Bank Guarantees in favour of the Applicant within two months. The Applicant company had also showed monetary losses worth INR 96,87,616 due to the bank guarantee charges and claimed compensation for the same in its writ application. Justice JB Pardiwala and...

Additions By AO On The Basis Of Suo-Moto Disclosure Before The Settlement Commission, Not Permissible If The Settlement Was Aborted: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member), has ruled that the Assessing Officer cannot make any addition to assessee's income on the basis of the suo-moto disclosure made by the assessee before the Income Tax Settlement Commission, if the settlement got aborted due to non-fulfilment of conditions by the assessee under the Income Tax Act, 1961. The Assessee Sawarmal Hisaria was into the business of trading of...

Gujarat High Court Condemns Coercive Steps Taken By Dept. For Recovery Of Dues From Wipro While Appeal Was Pending

The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has condemned the coercive steps of the department for recovery of dues from Wipro when the appeal was pending before the first appellate authority as well as the Tribunal.The writ petitioner, Wipro Ltd. is in the business of information technology services, including the sale of hardware and software, the sale of consumer products, and the supply and installation of solar power generation plants. The writ...

Show Cause Notice Completely Deficient In Material Particulars: Delhi High Court Quashes GST Registration Cancellation Order

The Delhi High Court bench of Justice Rajiv Shakdher and Justice Poonam Bamba has quashed the order cancelling the GST registration as the Show Cause Notice was completely deficient in material particulars.The petitioner/assessee has challenged the order passed by the Appellate Authority (Delhi GST) on the grounds that the show cause notice gave no details as to the date and time on which the petitioner's authorised representative was to present himself for a personal hearing before the ...

GST Payable On Composite Supply Of Work Contract Involving Earth Work: Maharashtra AAR

The Maharashtra Authority of Advance Ruling (AAR), consisting of members Ranji Magoo and T.R. Ramnani, has ruled that GST is payable on the composite supply of work contracts involving earth work.The applicant, M/s. Mahalxmi BT Patil Honai Constructions JV, a GST registered company, is in the business of construction of infrastructure projects, was formed to undertake the construction of Jeur Tunnel Under Krishna Marathwada Irrigation Project. This is a work allotted by the Executive...

Appeal Against CESTAT Order, On Classification Of Goods, And Determination Of Customs Duty Lies Before The Supreme Court: Bombay High Court

The Bombay High Court has ruled than an appeal from an order passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), involving the question with respect to classification of goods under the Customs Act, 1962, would lie before the Supreme Court under Section 130E of the Customs Act, since it is primarily related to determination of the rate of customs duty applicable. The Bench, consisting of Justices K.R. Shriram and N.R. Borkar, held that to determine whether there...

Madras High Court Directs GST Dept. To Release Detained Vehicle On Payment Of 25% Of Penalty

The Madras High Court bench of Justice R. Suresh Kumar has directed the GST department to release the detained vehicle on the payment of 25% of the penalty.The petitioner/assessee purchased cement from Andhra Pradesh, whereas, the petitioner has a branch office at Coimbatore, which is the destination where the purchased goods have to reach. When the goods were transported, the vehicle was intercepted by the respondent revenue squad, and they found that there was a violation in the invoice...

Provisional Attachment Not To Hamper Normal Business Activities: Gujarat High court Quashes Attachment Order

The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has held that the provisional attachment should not hamper normal business activities of the taxable person.The writ petitioner/assessee is in the business of manufacturing and selling ingots, having a factory situated near Rajkot, Gujarat State. The assessee is duly registered under the GST Act. The assessee claimed to have regularly paid output tax for three financial years. The assessee entered into...

Revenue Fails To Discharge Onus Of Grant Of Personal Hearing, Delhi High Court Quashes Order Rejecting Refund Application Under GST Act

The Delhi High Court has quashed the order rejecting an applicant's refund application under GST Act on the ground that the revenue authority had breached the principles of natural justice by not affording a reasonable opportunity to the applicant before rejecting its refund application The Bench, consisting of Justices Rajiv Shakdher and Poonam A. Bamba, ruled that the authority had failed to discharge its onus that a date for grant of personal hearing had been fixed before rejecting...