Issue Of Notice Of Hearing Is A Statutory Requirement Under Section 75(4) Of CGST Act Before Imposition Of Tax Or Penalty: Andhra Pradesh High Court

The Andhra Pradesh High Court recently allowed the writ petition by an assesse as there was no notice given to him before contemplating to pass an adverse Tax Assessment Order which is violative of Section 75(4) of CGST Act, 2017. Brief Facts of the Case The petitioner executed certain works entrusted to it by M/s Tata Projects Limited, and issued Tax invoices to M/s Tata. It was submitted that as per the terms of the agreement, the said Contractee had to pay Service Tax on the same...

Attachment of Immovable Properties Of Director Despite settlement of Tax Dues Under Tax Resolution Scheme: Gujarat High Court Condemns Dept.

The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has condemned the act of the department for attaching the personal immovable properties of the director even though the tax dues were settled under the Tax Resolution Scheme. The writ-petitioner/assessee, a company which is a taxable entity, has incurred liability towards the payment of tax under the provisions of the GVAT Act. The company incurred a liability in the year 2013. The company preferred an...

Dealer's GST Registration Can't Be Cancelled For Inadvertent Mistake Of CA: Gujarat High Court

The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has ruled that the dealer should not be forced to pay a hefty price for the cancellation of the GST registration for the chartered accountant's mistake.The writ was against the the cancellation of the GST registration. The chartered accountant of the assessee wanted the HUF registration to be cancelled. Instead of inserting the registration number of the HUF, inadvertently, the CA inserted the registration...

Non-Availability Of Form GST ITC-02A On GSTN Portal: Rajasthan High Court Allows ITC In GSTR-3B

The Rajasthan High Court bench of Justice Sandeep Mehta and Justice Vinod Kumar Bharwani has allowed the Input Tax Credit (ITC) under GST in GSTR-3B Return as FORM GST ITC-02A was not available on the GSTN Portal at the time of its insertion. The petitioner, a registered dealer under the GST regime, with two industrial units registered in Udaipur. The Union of India prescribed Form GST ITC-02A under the Central Goods and Service Tax Rules, 2017 which had to be uploaded on the GSTN ...

New Income Tax Rules Applicable From April 1, 2022: All You Need To Know

From April 1, 2022, a number of significant changes will take place that may affect your online transactions and expenses. Here are significant changes to be aware of.30% Tax Payable On Cryptocurrency Assets Sold At A Profit The Union Budget 2022-23 proposed a 30% tax on cryptocurrency assets. Beginning April 1, cryptocurrency gains will be taxed at 30%, which is the highest tax bracket, with a rate that is the same as lottery winnings. From Bitcoin to non-fungible tokens (NFTs),...

Foreign Tax Credit Cannot Be Denied For Delay In Filing Form 67: Bangalore ITAT

The Bangalore Bench of ITAT has ruled that Foreign Tax Credit cannot be denied to the assessee for delay in filing Form 67. The Bench, consisting of members Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has ruled that Rule 128 of the Income Tax Rules which requires the assessee to submit Form 67 before filing the income tax return for claiming Foreign Tax Credit (FTC) is directory in nature and not mandatory, thus FTC cannot be denied for delay in filing Form...

Interest Liability Under GST Can't Be Raised Without Initiating Adjudication Process If Assessee Raises Dispute: Jharkhand High Court

The Jharkhand High Court bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has ruled that if an assessee disputes the liability of interest, either disputes its calculation or the leviability of interest, then the only option left for the Assessing Officer is to initiate a proceeding either under Section 74 or 74 of the CGST Act for adjudication of the liability of interest. The petitioner/assessee challenged the Circular dated 10.02.2020 issued by the Central Board of...

Fraudulent Claim of ITC, Revenue Interest is Protected by Attachment: Gujarat High Court Grants Bail

The Gujarat High Court bench of Justice Gita Gopi has granted bail to the accused of fraudulently availing the input tax credit (ITC) as the department has attached the immovable properties, which were much beyond the alleged GST evasion. The applicant, a designated partner and managing director of "Utkarsh Ispat LLP," which is in the business of purchasing mild steel scrap and, thereafter, converting it into mild steel billet. The department conducted a search and seizure operation at...

No Manufacturing Activity Within State , ITC Cannot Be Denied Under JVAT Act: Jharkhand High Court

The Jharkhand High Court has ruled that Input Tax Credit can be denied on Inter-State sale or transfer of stock under Section 18(8)(ix) of the Jharkhand Value Added Tax Act, 2005 only when some manufacturing activity is undertaken by the assessee in the State. The Bench, consisting of Justices Aparesh Kumar Singh and Deepak Roshan, has held that in a taxing statue there is no room for intendment and therefore Section 18(8)(ix) cannot be stretched to cover persons who are not ...

Performance Guarantee Commission Is Not Business Income Under DTAA: Delhi ITAT

The Delhi Bench of ITAT, consisting of Amit Shukla (Judicial Member) and B.R.R. Kumar (Accountant Member), has ruled that performance guarantee commission received by an assessee from its foreign Associated Enterprise is not its business income under the Double Taxation Avoidance Agreement (DTAA). The ITAT therefore allowed foreign tax credit under Income Tax Act, 1961 to the assessee against the tax withheld under the Singapore Income Tax law on the commission paid by a Singapore...

Immunity Under Income Declaration Scheme Available Only To The Declarant; Can't Be Extended To Another Assessee : Supreme Court

The Supreme Court has found fault with a Gujarat High Court judgment for extending the immunity under the "Income Declaration Scheme" (IDS) to an assessee who was not the declarant under the scheme.The High Court had quashed the reassessment notice issued under Sections 147/148 of the Income Tax Act, 1961, against a company M/s MR Shah Logistics Private Ltd. One of the grounds for the re-opening of the assessment was contended to have been a declaration by another company, Garg Logistics Private...

No Wilful Evasion Of Tax - Madras High Court Quashes Prosecution Under Section 276C (2) Of Income Tax Act

The Madras High Court has ruled that prosecution under Section 276C (2) of the Income Tax Act for wilfully attempting to evade payment of tax cannot be initiated against an assessee who merely defaults to pay tax on time under the Act. The Single Bench of Justice N. Sathish Kumar held that in the absence of mens rea to avoid payment of tax, a "wilful attempt" to evade tax cannot be attributed to assessee in order to prosecute him under Section 276C (2). The Petioner/Assessee S.P....