No Show Cause Notice Issued Along With Draft Assessment Order: Gujarat High Court Quashes Section 144B Order

The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has held that the issuance of a show cause notice along with the draft assessment order is absolutely necessary before passing an order under Section 144B of the Income Tax Act. The writ petitioner/assessee filed its return of income for the A.Y. 2018-19 at Rs. 197,12,28,420. Later, the return was revised at Rs. 197,12,28,420. The case of the assessee was selected for scrutiny under the CASS to verify a...

Weekly Round-Up Tax Cases: March 27 - April 2, 2022

Supreme Court Immunity Under Income Declaration Scheme Available Only To The Declarant; Can't Be Extended To Another Assessee : Supreme Court Case Title : Deputy Commissioner of Income Tax (Central) Circle 1(2) versus M/s MR Shah Logistics Private Ltd Citation : 2022 LiveLaw (SC) 323 The Supreme Court has found fault with a Gujarat High Court judgement for extending the immunity under the "Income Declaration Scheme" (IDS) to an assessee who was not the declarant under the...

Assessment Order Without Reasons, Not Erroneous Or Prejudicial To The Interest Of The Revenue: ITAT Quashes Revenue's Revision Order

The Mumbai Bench of ITAT has ruled that action of the Assessing Officer in accepting the explanation submitted by the Assessee in the course of scrutiny assessment proceedings cannot be faulted merely because the Assessing Officer did not write specific reasons for accepting the explanation. The Bench, consisting of members Pramod Kumar (Vice President) and Kuldip Singh (Judicial Member), held that non-mentioning of reasons does not render the assessment order passed by the Assessing...

Survey Not Disputed By The Partner Of The Firm Who Was Present - Can't Question Later: Allahabad High Court

The Allahabad High Court bench of Justice Piyush Agrawal has ruled that once the partner of the firm was available at the time of the survey, who must have signed the survey report, he could very easily request to correct the entries or refuse to sign the survey report, if it was not recorded as per his statement. The applicant/assessee is in the business of manufacturing and selling rough C.I. Castings. The business premises of the applicant were surveyed on August 18, 2010, where...

Transportation Of Parcels By GSRTC In Its Buses Attracts 18% GST: AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of Atul Mehta and Arun Richard has ruled that 18% GST is payable on the transportation of parcels by the Gujarat State Road Transport Corporation (GSRTC) in its buses.GSRTC operates more than 8,700 buses daily and is engaged in intra state as well as interstate passenger transportation. It is mainly engaged in passenger transportation services. GSRTC entered into an agreement with M/s Ashapura Trade and Transport Private Limited...

Bombay High Court Quashes Reassessment Notice Against Tata Communications Transformation Services

The Bombay High Court bench of Justice K.R. Shriram and Justice N.J. Jamadar has quashed the reassessment notice against the Tata Communications Transformation Services. The petitioner/assessee has challenged the initiation of assessment proceedings under Section 148 of the Income Tax Act, 1961 for different assessment years. All notices for the initiation of assessment proceedings have been issued after April 1, 2021. Counsel for the petitioner contended that upon enactment...

Introduction of Artificial Intelligence For Assessment Proceedings: CBDT Notifies Faceless Inquiry Or Valuation Scheme, 2022

The Central Board of Direct Taxes (CBDT) has notified the Faceless Inquiry or Valuation Scheme, 2022 in order to introduce the Artificial Intelligence for Assessment Proceedings under section 142 of the Income Tax Act, 1961. The Faceless Inquiry or Valuation Scheme, 2022, covers the following: issuance of notice under section 142(1) of the Income Tax Act; making inquiry before assessment under section 142(2) of the Income Tax Act; directing the assessee to have his accounts audited...

Disputed Tax Demand, Pre-Condition To Deposit 20 % Of The Disputed Tax For Stay Of Recovery Proceedings, Can Be Relaxed In Appropriate Cases: Delhi High Court

The Delhi High Court has ruled that requirement of payment of twenty per cent of disputed tax demand is not a pre-requisite in all cases for putting recovery of demand in abeyance during the pendency of the first appeal. The Bench, consisting of Justices Manmohan and Dinesh Kumar Sharma, held that the order of the income tax authority disposing of assessee's application for stay against recovery of disputed tax demand without considering the issues of prima facie case, balance of...

Gujarat High Court Rejects Application Seeking Benefits And Interests On The Ground Of Delay Under Contempt Of Courts Act

Averring that there was no delay in making payment of pensionary benefits as alleged by the Appellants, the Gujarat High Court has refused to interfere in the Letters Patent Appeal seeking Respondent authorities to pay all the consequential pensionary benefits and 18% interest on delayed payment. The Appellant herein had his services terminated against which he and other persons had filed a reference which was allowed. Accordingly, the Appellant was held to be entitled to similar...

Non Release Of Seized Documents, Based On Pendency Of The SLP In The Supreme Court By IT Department, Is Illegal: Kerala High Court

The Kerala High Court has ruled that the income tax department is not authorized to retain the title deeds seized by them under Section 132 of the Income Tax Act on the ground that a Special Leave Petition filed by the Assessee against the assessment order is pending before the Supreme Court. The Single Bench consisting of Justice Bechu Kurian Thomas held that since the Income Tax Act confers the tax authorities the power to retain seized documents beyond the assessment order only...

Non Specification Of Penalty Provisions In Penalty Notice And Denial Of Immunity; Delhi High Court Holds That Assessee Is Eligible For Immunity, Says Tax Payer Should Be Incentivised.

The Delhi High Court has ruled that the action of income tax authorities denying the benefit of immunity from penalty under Section 270AA of Income Tax Act to the assessee on the ground that penalty was initiated under Section 270A for misreporting of income is arbitrary since the penalty notice issued by the authorities failed to specify the limb under which the penalty proceedings were initiated. The Bench, consisting of Justices Manmohan and Dinesh Kumar Sharma, held that since the...

Payment Of Equated Yearly Instalments And Interest On Delayed Payment Is Exigible To GST: Telangana AAR

The Telangana Bench of Authority for Advance Ruling, consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao, has ruled that payment of Equated Yearly Instalments made under Annuities Model, including interest on delayed payments made to a contractor, is exigible to GST. The Applicant M/s. Hyderabad Metropolitan Water Supply and Sewerage Board filed an application before the Telangana Authority for Advance Ruling (AAR), raising the query as to whether the payment of Equated...