Clarification Issued By CBDT Cannot Introduce A Cut Off Date For Its Applicability: Rajasthan High Court

A Bench of Rajasthan High Court, consisting of Chief Justice Akil Kureshi and Justice Sudesh Bansal, held that since the primary intention of the Vivad Se Vishwas Act, 2020 was the resolution of disputed taxes, the courts must adopt an interpretation that furthers this intention and not restrict its scope. Also, the court ruled that a clarification issued by the Central Board of Direct Taxes (CBDT), being declaratory in nature, cannot introduce a cut off date for its applicability. ...

Reassessment Proceedings Not Time Barred When Time Limit Increased Retrospectively Under Income Tax Act: ITAT

The Mumbai Bench of ITAT, comprising of members Pramod Kumar (Vice President) and Suchitra Kamble (Judicial Member), has held that reassessment proceeding cannot be held time barred when an amendment increasing limitation of time is expressly stated to be retrospective. The court added that it was not open to the ITAT and Commissioner of Income Tax (Appeals), to contest the validity of a retrospective amendment in law.During search and seizure operations by revenue authorities, the...

Service Tax - Exemption Notification Should Not Be Liberally Construed ; Assessee Has To Show That He Comes Within Its Purview: Supreme Court

The Supreme Court observed that exemption notification should not be liberally construed and it is for the assessee to show that he comes within the purview of the notification.The bench comprising upheld the order passed by Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi which held that the Krishi Upaj Mandi Samiti (Agricultural Produce Market Committees) located in different parts of State of Rajasthan liable to pay service tax under the category of "renting...

Information From Property Dealers Or Websites Not Cogent Evidence On Adequacy Of Rent For Invoking Section 13(2)(B) Of Income Tax Act: Delhi High Court

A Bench of Delhi High Court, consisting of Justices Manmohan and Navin Chawla, held that in the absence of an independent inquiry, the revenue authorities cannot solely rely on the opinion of property broker firms and websites to determine the adequacy of rent received for invoking section 13(2)(b) of the Income Tax Act, 1961. The Assessee Foundation received voluntary and corpus donations from Hamdard Dawakhana (Wakf) in a particular assessment year. Also, the Assessee had let out its...

Loss On Investment In Subsidiary, Made To Boost Sales, Deductible As Revenue Expenditure, Rules ITAT

The ITAT Bench of Chennai, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), allowed the loss on investment made in subsidiary company for increasing business expediency to be written off as business loss. Allowing deduction of legal fee and due diligence expenditure incurred in acquiring a foreign entity, the ITAT ruled that the loss on acquisition made to boost trading results could not be ruled as capital in nature. The Assessee, an...

AAAR : No GST Leviable On Lease Of Buses To Public Transport Department

The Andhra Pradesh Bench of the Appellate Authority for Advance Ruling (AAAR), consisting of members Suresh Kishnani and Ravi Shankar Narayan, upheld the order of the Authority for Advance Ruling (AAR) holding that the lease of buses by the Andhra Pradesh State Road Transport Corporation (APSRTC) to the Public Transport Department (PTD) of the Government of Andhra Pradesh was exempt from GST. The Andhra Pradesh State Government took up the process of merging APSRTC with the State...

Gujarat High Court Directs Refund Of IGST In Electronic Credit Ledger For SEZ Unit U/S 54 Of CGST Act, 2017

The Gujarat High Court has recently held that the Writ Applicant can be entitled to claim the refund of the IGST lying in the Electronic Credit Ledger as there was no specific supplier who could claim the refund under the provisions of the CGST Act and the CGST Rules as Input Tax Credit as distributed by the input service distributor. Further directing the Respondent-Authority to process claim of refund under Section 54 of the CGST Act, 2017, the Bench comprising Justice JB Pardiwala and...

Liquidated Damages Recovered For Delay In Completion Of Project Attracts 18% GST, Rules Telegana AAR

The Telangana Authority for Advance Ruling (AAR), consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao, ruled that liquidated damages recovered by Applicant for delay in commissioning under an agreement constitutes "supply" under the Goods and Service Tax (GST) law, attracting a levy of 9% GST under the Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) Act each. The Applicant, engaged in production and distribution of electricity obtained from...

AOP Running Educational Institution Eligible For Exemption Under Section 10 (23C) (VI) Of The Income Tax Act, Rules ITAT

The ITAT Bench of Mumbai, consisting of members Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member), ruled that an unregistered Association of Persons (AOP), formed by an agreement merging two charitable Trusts, is eligible for exemption under section 10 (23C) (vi) of the Income Tax Act, 1961. The Assessee, an educational institution, formed as an AOP, filed an application seeking approval for exemption under section 10 (23C) (vi) of the Income Tax Act for the...

TDS Collection U/S 194N Income Tax Act Sub Judice: Kerala High Court Stays Demand Notice Issued To State Co-operative Bank

The Kerala High Court on Friday stayed the demand notice issued by the Deputy Commissioner of Income Tax asking the State Co-operative Bank to pay the outstanding amount for the financial year 2019-20 in a plea moved by the said Bank.Justice Bechu Kurian Thomas issued the interim order considering that the matter relating to the collection of Tax Deduction at Source (TDS) on interests by the Co-operative Banks is sub-judice before the Court. The Primary Agricultural Credit Societies (PACS)...

Supreme Court Allows Adjustment Of Installments Made Under Income Declaration Scheme For Computing Tax Liability

A Bench of Supreme Court, consisting of Justices U.U. Lalit and P.S. Narasimha, allowed the adjustment of installments made under the "Income Declaration Scheme, 2016" in computing the tax liability of the Assessee for the relevant assessment years. The Assessee, having made a declaration under the "Income Declaration Scheme, 2016", had made two installments of tax with respect to the income disclosed under the Scheme, but defaulted in the payment of the final installment. The...

CBDT Circular Denying Tax Benefit Under MFN Clause Transgresses Income Tax Act, Rules ITAT

The ITAT Bench of Pune, consisting of members R.S. Sayal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), has held that the CBDT Circular, issued in February 2022, requiring a separate notification by the Government of India for importing the benefit of the Most Favoured Nation (MFN) clause into a Double Taxation Avoidance Agreement (DTAA), transgressed the boundaries of section 90 (1) of the Income Tax Act,1961. Also, the Bench ruled, since the Circular is in the nature...