Google Gets A Cut Of 8% Withholding Tax On Its Remittance

The Delhi High Court Bench, comprising of Justices Manmohan and Naveen Chawla, have directed Google Cloud India Private Ltd. (GIC) to withhold only 8% tax while making payment to Google Asia Pacific Pte Ltd, a Singapore based subsidiary of Google LLC. The court reaffirmed that the said order was only an interim measure and it should not be treated as a non-compliance with the impugned order under section 201 of the Income Tax Act, 1961. Google had filed a petition before the Delhi High...

Reassessment Notice U/S 148 Of Income Tax Act Issued Against A Dead Person Is Null & Void: Delhi High Court

The Delhi High Court recently held that a reassessment notice issued under Section 148 of the Income-tax Act, 1861 against a dead person is null and void. A Division Bench of Justices Navin Chawla and Manmohan relied on the case of Savita Kapila v. Assistant Commissioner of Income Tax to answer the question of the validity of notice and consequent proceedings against a dead person. In the said case, it was held that,"The sine qua non for acquiring jurisdiction to reopen an assessment is...

Electronic Credit Ledger Can Be Blocked Under GST Rules 2017 Only If Credit Balance Is Available: Gujarat HC Orders Authorities To Refund ₹20L

The Gujarat High Court has recently held that the power prescribed under Rule 86A of the GST Rules 2017 to block an electronic credit ledger can be exercised only when there is availability of credit in such ledger, alleged to be ineligible."Condition precedent for exercise of power under Rule 86A of the GST Rules is the availability of credit in the electronic credit ledger which is alleged to be ineligible. If credit balance is available, then the authority may, for reasons to be recorded...

Rajasthan VAT Act Enacted To Provide Remedy For Loss Of Revenue & Not To Punish Offender For Committing Economic Offence: High Court

The Rajasthan High Court, Jaipur has observed that provisions of Rajasthan Value Added Tax Act, 2003 have been enacted to provide remedy for loss of revenue and not to punish the offender for committing economic offence and, therefore, mens rea is not an essential ingredient for contravention of such provision. The court added that breach would attract levy of penalty whenever the goods in movement have travelled with an incomplete form. A division bench of Justice Pankaj...

"Condition Of Income Having Escaped Assesment Not Satisfied"- Bombay High Court Quashes IT Notice Against Tata Son Ltd For 2003-04

In a judgement earlier this month, the Bombay High Court quashed a notice issued by Income Tax authorities for the financial year 2003-2004 against Tata Sons Ltd – holding company of Tata Group's Companies.A division bench Justices KR Shriram and NJ Jamadar observed that the notice did not justify the reasons to show that income had escaped assessment on account of failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessment, and, that reasons...

Taxation Relaxation Act Doesn't Sanction Applying Repealed Provisions : Madras HC Sets Aside Reassessment Notices U/S 148 Of Old Income Tax Act

The Madras High Court has recently set aside a number of reassessment notices issued under the 1961 Income Tax Act by iterating that the Taxation Relaxation Act, 2020 only extends the period of limitation and not the application of repealed provisions in light of the amended provisions effective from 1st April, 2021.The first bench of Acting Chief Justice Munishwar Nath Bhandari and Justice PD Audikesavalu followed the previous judgments by Allahabad and Delhi High Courts and held that the...

Building Owner Can Claim GST Exemption If Residential Premises Leased Out Are Used As Hostel: Karnataka High Court

The Karnataka High Court has held that an owner of a building can claim tax exemption under the Goods and Services Act (GST) if the residential premises leased out are used as a hostel to house students and working professionals. A division bench of Justice Alok Aradhe and Justice M I Arun while allowing the petition filed by one Taghar Vasudeva Ambrish said, "The service provided by the petitioner i.e., leasing out residential premises as hostel to students and working professionals is...

'Prima Facie Input Tax Credit Wrongly Availed Exceeds Five Crores': Chennai Court Dismisses Bail Plea Of Person Accused Of Tax Evasion

The accused have admitted to have committed the offence...The evidentiary value of the statement obtained under Section 70 of TNGST Act has to be dealt with during the course of trial, the court clarified.

Rajasthan High Court Quashed Notices Issued by the Assessing Officers U/S 148 of the Income Tax Act, 1961 for Reopening Assessments for Various Assessment Years

Providing relief to a batch of petitioners, the division bench of Rajasthan High Court quashed notices issued by the Assessing Officers under section 148 of the Income Tax Act, 1961 (Act of 1961) for reopening assessments for various assessment years. The petitioners have also challenged portions of two notifications issued by CBDT clarifying that provisions of Sections 148, 149 and 151 of the Act as on 31.03.2021 shall apply for the purpose of issuance of notice under Section 148 for...

Akin To Power To Issue & Serve Summons Under Order V CPC: Rajasthan High Court Upholds Constitutionality Of S.70 Rajasthan GST Act 2017

The Rajasthan High Court has dismissed a plea challenging the vires of Section 70 of Rajasthan GST Act, 2017 which provides for Power to summon persons to give evidence and produce documents. Section 70 reads thus:"Power to summon persons to give evidence and produce documents.- (1) The proper officer under this Act shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry in the same...

Change Of Assessing Officer's Opinion Not Ground To Reopen Assessment U/S 147 Income Tax Act, Tangible Material Required: Bombay High Court

In a case under Section 147 of the Income Tax Act, 1961, the Bombay High Court has observed that where on consideration of material on record, one view is conclusively taken by the Assessing Officer, it would not be open to reopen the assessment based on mere change of opinion. The Court further held that assessment can be reopened under Section 148 only on the reasonable belief that income had escaped assessment on account of failure of the assessee to disclose truly and fully all...

Scrutiny By Income Tax Department Barred For The Period Covered By The Resolution Plan: Telangana High Court

The High Court of Telangana in a Bench consisting of Justice Ujjal Bhuyan and Justice Chillakur Sumalatha in Sirpur Paper Mills Limited & Another. V. Union of India & Two Others held that for the period covered by the Resolution Plan, Income Tax Department cannot carry out any scrutiny or assessment in respect of the Corporate Debtor regarding carry forward of losses and set off against future profits under Income Tax Act, 1961. Factual Background The Petitioner/ Corporate ...