Neither Rational Nexus Nor Fresh Material To Believe Escapement Of Income: Delhi High Court Quashes Reassessment Notice

The Delhi High Court has quashed the reassessment notice issued under Section 148 of Income Tax Act, 1961 on the grounds that the reason to believe was invalid, had no rational nexus to the belief for escapement of income and there was no fresh material on record to initiate reassessment proceedings. The division bench of Justice Manmohan and Justice Sudhir Kumar Jain has opined that the reasoning "the contingent liability has been claimed as revenue expense" is contrary to the concept...

AO Can't Take Advantage Of Assessee's Ignorance To Collect More Tax: Karnataka High Court Condones Delay Of 6 Years In Filing Revised ITR

A bench of Karnataka High Court consisting of Justice Sunil S.Yadav has condoned the delay of 6 years in filing revised Income Tax Return (ITR). A single judge bench of Justice Sunil S.Yadav has observed that the intention of Circular No.014 (XL-35) dated 11.04.1955 was not that tax due should not be charged or that any favour should be shown to anybody in the matter of assessment, or where investigations are called for, they should not be made. Whatever the legitimate tax it must be...

Gold Was Freely Importable By Normal Importer prior to DGFT Notification Dated 18 December, 2019: CESTAT

The Banglore Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that gold was freely importable by the normal importer prior to the restrictions imposed by the Directorate General of Foreign Trade (DGFT) vide Notification dated 18 December 2019.The two-member bench of Ashok Jindal (Judicial Member) and C. J. Mathew (Technical Member) has ruled that the appellant imported the goods as a normal importer. Therefore, the restrictions contained in Notification No. ...

ITC Received From Input Service Distributor Lying Unutilized In Electronic Credit Ledger Liable To Be Refunded: Gujarat High Court

The Gujarat High Court has held that Input Tax Credit received from input service distributor lying unutilized in electronic credit ledger is liable to be refunded. The division bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore directed the respondent/department to process the claim of refund made by the writ petitioner/assessee for the unutilized IGST Credit lying in the Electronic Credit Ledger under Section 54 of the CGST Act 2017. The writ petitioner/assessee has been a...

Imparting Education By Section 25 Company Is A Charitable Activity Under Income Tax Act: Calcutta High Court

A Bench of Calcutta High Court, consisting of Justices T.S. Sivagnanam and Hiranmay Bhattacharyya, has ruled that when a Company has been established as a non-profit organization under the Companies Act, and its profits are applied solely for the promotion of its objects, its activities would by necessary implication fall under the definition of a "charitable purpose" under the Income Tax Act, 1961. The Assessee Company, established by the National Council of Science Museum under the...

ITAT Mumbai: Sale Of TDRs Does Not Attract Capital Gains Tax

The ITAT Bench of Mumbai, consisting of members Pavan Kumar Gadale (Judicial Member) and Prashant Maharishi (Accountant Member), has ruled that sale of transferable development rights does not attract capital gains tax since the cost of acquisition for the same does not exist. The Assessing Officer (AO) had issued a notice under Section 147 of Income Tax Act, 1961, reopening assessment. The AO had ruled that since transferable development rights (TDRs) arising out of an existing land...

Provisional Attachment under CGST Act Ceases After Expiry Of One Year: Rajasthan High Court

The Rajasthan High Court has ruled that the provisional attachment under CGST Act ceases to have effect after expiry of one year. The division bench headed by the Chief Justice Akil Kureshi and Justice Sudesh Bansal while listing the matter on March 22, 2022 stayed the provisional attachment. The bank account of the petitioner/assessee was placed under provisional attachment by an order in exercise of powers under Section 83 of the Central Goods and Services Tax Act (CGST Act) by the...

Income Tax Notice, Revisionary Proceedings Against A Dead Person Is Void: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the notice issued against a dead person is null and void and all consequent proceedings or orders being equally tainted are liable to be set aside.The two-member bench of Amit Shukla (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that the entire proceedings beginning from issue of show cause notice and culminating in revisional order under Section 263 of the Act is a nonest exercise and cannot...

No Opportunity Of Hearing Given To Managing Director Imprisoned In UAE: Kerala High Court Quashes Income Tax Assessment Orders

The Kerala High Court has quashed the income tax assessment order on the grounds that no opportunity of hearing was given to the Managing Director who was imprisoned in UAE.The single bench of Justice Bechu Kurian Thomas has ruled that the principle of natural justice has twin ingredients, firstly opportunity to show cause and of being heard should be given, it must be a real opportunity and not an unreal one, the right to a fair hearing is essential and secondly, the orders passed by the...

ITAT Disallows 'Mixed Used Charges' For Regularising Usage Of Residential Premises For Commercial Purposes Against House Property Income

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has disallowed the 'Mixed Used Charges' for regularising usage of residential premises for commercial purposes against house property income. The two-member bench of N.K.Billaiya (Accountant Member) and Yogesh Kumar US (Judicial Member) held that the collection of the annual mixed used charge will not make any difference in the annual let out value of the property, therefore the same is not allowable as per the proviso under...

Disallowance Can't Be Made On Failure Of Assessee To Deduct TDS If Employee's Commission Shown As Part Of Salary Income: Bombay High Court

The Bombay High Court has held that disallowance cannot be made on failure of assessee to deduct TDS if employee's commission is shown as a part of salary income. The division bench of Justice Amit B.Borkar and Justice K.R.Shriram has ruled that section 192 of the said Act, unlike other TDS provisions, requires deduction of tax at source under the head "Salary only at the time of payment and not otherwise". The issue raised was regarding disallowance under Section 40(a)(ia) of the...

Denying Carry Forward Of Business Loss Based On Non-Completion Of Tax Audit Within Prescribed Time Not Justified: ITAT

The Cochin Bench of Income Tax Appellate Tribunal (ITAT) has ruled that denying the carry forward of business loss based on non-completion of tax audit/ statutory audit within prescribed time is not justified.The two-member bench of George Mathan (Judicial Member) and Ramit Kochar (Accountant Member) said, "there could be several reasons for not getting the statutory audit/tax-audit done within prescribed time, but unless there is specific/express provision which stipulates that if the...