Relief To HDFC Bank: Bombay High Court Quashes Reassessment Notice As Jurisdictional Condition Not Satisfied

In a major relief to the HDFC Bank, the Bombay High Court has quashed the reassessment notice as the jurisdictional condition for invoking the power under section 147 of the Income Tax Act was not satisfied.The division bench of Justice N.J.Jamadar and Justice K.R.Shriram has observed that once, it is held that the jurisdictional condition for invoking the power under section 147 is not satisfied for a particular assessment year, the notice for reopening cannot be sustained. Then, it does...

Employee Contribution To PF/ESI Before ITR Filing Eligible For Income Tax Deduction: ITAT

The Banglore Bench of Income Tax Appellate Tribunal (ITAT) has ruled that an Employee contribution to Provident Fund (PF)/ Employee State Insurance (ESI) before ITR filing is eligible for income tax deduction. The single member bench of Vice President, N.V.Vasudevan in the light of the decision of the Karnataka High Court in the case of M/s Essae Teraoka (P.) Ltd vs DCIT observed that employee's contribution under section 36(1)(va) of the Income Tax Act would also be covered under...

Education And Training In Physical, Mental, Spiritual Practices Of Yoga Attracts 18% GST: AAR

The Rajasthan Authority of Advance Ruling (AAR) has ruled that 18% of Goods and Service Tax (GST) is payable on education and training in physical, mental, spiritual practices of Yoga.The applicant has been offering various courses of Yoga such as Fitness Yoga, Immunity Boost Yoga, Pregnancy Yoga, Nidra Yoga, Stress Management Yoga, Meditation, and other such courses for improving mental and physical wellness. Further, the applicant is engaged in educating and training physical, mental and...

Payments Towards Charter Hire Of Tugs, Barges Made To Non-Resident Assessee Assessable U/S 44BB: Bombay High Court

The Bombay High Court has held that the payments made towards charter hire of tugs and barges made to non-resident assessee in execution of contract with Oil and Natural Gas Corporation Ltd (ONGC) are assessable under Section 44BB of Income Tax Actand are entitled to special dispensation.The division bench of Justice N.J.Jamadar and Justice K.R.Shriram has held that the payments made by the ONGC and received by the non-resident assessees or foreign companies under the contracts were more ...

Reopening Of Income Tax Assessment Can't Be Allowed On Grounds Of Future Contingencies: Bombay High Court

The Bombay High Court has held that the reopening of Income Tax Assessment cannot be allowed on grounds of future contingencies. The division bench of Justice N.J.Jamadar and Justice K.R.Shriram has noted that the entire exercise of reassessment is only contingent on a future event and a consequence that may endure upon the decision of the Tribunal, that again if the Tribunal were to hold against the Revenue. A reopening of an assessment under Section 148 cannot be justified on such a...

Amount On Alleged Wrongly Availed Cenvat Credit Deposited At Instance Of Audit Team Liable To Be Refunded In Absence Of SCN: CESTAT

The New Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the amount on alleged wrongly availed Cenvat Credit deposited at the instance of the audit team is liable to be refunded in absence of Show Cause Notice (SCN). The bench of single member Rachna Gupta (Judicial Member) has noted that the payment made by the assessee at the time of audit, in absence of any SCN for the same, cannot be held to be the payment against the demand raised by the ...

Calcutta High Court Quashes Order Imposing Penalty For Expiry Of E-Way Bill As There Was No Intention To Evade Tax

The Calcutta High Court has quashed the order imposing penalty for expiry of e-way bill as there was no intention to evade tax. The single bench of Justice Md. Nizamuddin has set aside the impugned order of the appellate authority as well as the order of the adjudicating authority and consequently, the petitioner will be entitled to get the refund of the penalty and tax paid on protest subject to compliance of all legal formalities. The petitioner/assessee has challenged the...

Supreme Court Rules Tata Steel Has Locus Standi To Challenge Denial Of Input Tax Credit To Its Unit

A Bench of Supreme Court, consisting of Justices Sanjiv Khanna and Bela M. Trivedi, remanded a matter back to Jharkhand High Court for a fresh decision on Tata Steel's writ petition against the denial of input tax credit to its Naomundi unit. The court held that the High Court was not justified in ruling that Tata Steel had no locus standi to file a writ petition challenging the denial of input tax credit to its unit in Naomundi in respect of the purchases made and utilised by it. Tata...

Inspection And Examination Of Goods Before Shipment Not Taxable As Technical And Managerial Services: ITAT Delhi

The Delhi Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), ruled that inspection and examination of goods before shipment cannot be treated as technical and managerial services under Section 9 (1) of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) (CIT (A)) had confirmed the additions made to Assessee's taxable income under Section 40 (a) (i) of the Act on the ground that the Assessee had not deducted tax at...

Delhi High Court Directs Disposal Of Nokia's Rectification Application Over Refund Of Rs. 58 Crores Within Six Weeks

A Bench of Delhi High Court, consisting of Justices Manmohan and Navin Chawla, directed the revenue authorities to decide Nokia's rectification application filed under Section 154 of the Income Tax Act, 1961 in accordance with law by way of a reasoned order within six weeks. Nokia filed a writ petition before the High Court seeking a direction to the revenue authorities to decide the rectification application filed by it under Section 154 of the Income Tax Act, 1961 and grant...

Invalid Re-Assessment By AO Cannot Be Subject Matter Of Revision Under Section 263 Of Income Tax Act: ITAT Mumbai

The Bench of ITAT Mumbai, consisting of members Kuldip Singh (Judicial Member) and M. Balaganesh (Accountant Member), held that when an assessment framed by the Assessing Officer is invalid in law, the said invalid order cannot be the subject matter of revision under Section 263 of the Income Tax Act ,1961. The Assessing Officer (AO) had reopened assessment for the relevant years on the ground that the Assessee had failed to disclose true and full facts necessary for the purpose of...

Delhi High Court Excludes Time Spent Prosecuting Tax Appeal Before An Authority Without Jurisdiction, Rules Revision Petition Not Time Barred

A Bench of Delhi High Court, consisting of Justices Manmohan and Navin Chawla, excluded the time spent in prosecuting a tax appeal before an authority devoid of jurisdiction in computing the limitation period for filing a revision petition under the Income Tax Act, 1961. The Assessee filed a writ petition before the Delhi High Court challenging the order passed by the Commissioner of Income Tax (International Taxation) (CIT (IT)) dismissing Assessee's Revision Petition under Section...