Tax
Income Tax Return Is Different From Average Annual Financial Turnover Document: Gauhati High Court Explains
The Gauhati High Court has held that the words “Turnover” and “Income Tax Return” are different and exemption to a bidder from submitting the former in a tender process would not exempt it from furnishing the ITR, for the prescribed years. “The primary purpose of reporting Annual Turnover is to provide a clear picture of a company's revenue-generating capacity. It is...
Tax Weekly Round-Up: November 11 To November 17, 2024
HIGH COURTS Allahabad HC 1. GST | Assessee Entitled To Fresh Notice If Initial Notice U/S 73 Was Missed Due To Being Uploaded Under 'Additional Notices' Tab: Allahabad HC Case title: M/S Ashish Traders v. State of U.P. Case no.: WRIT TAX No. - 1882 of 2024 The Allahabad High Court has held that an assessee is entitled to fresh notices demanding unpaid tax or short tax...
Retrospective GST Cancellation In Absence Of Specific Reasons Will Take Effect From Date Of Issuance Of SCN: Delhi HC
The Delhi High Court has reiterated that the GST Department must record reasons that weigh on it to propose retrospective cancellation of an assessee's registration. Citing absence of such reasons in the case at hand, the division bench of Justices Yashwant Varma and Dharmesh Sharma said cancellation of Petitioner's GST registration would stand only from the date of issuance of the...
Taxpayers Can't Seek Writ Remedy By Bypassing Statutory Requirements Of Pre-Deposit: Bombay High Court
The Bombay High Court held that circumstances in which the appeals require some percentage of the demanded tax to be pre-deposited, do not render the appellate remedies any less efficacious.The High Court held so while considering an issue as to whether the demands are covered under the exemption notification or the notification providing for nil rate of taxes. The Division Bench of Justice M...
Customs Act | Interest U/S 28AA Is Automatic When There Is A Default Or Delay In Payment Of Duty: Bombay High Court
The Bombay High Court ruled that the demand for interest u/s 28AA of the Customs Act raised for non-payment of demand, within three months of raising the demand, is properly tenable on the part of the Customs Authority.Interest u/s 28AA is automatic, when there is a default or delay in payment of duty, added the Court. Section 28AA of the Customs Act provides that any judgment, decree, order...
Writ Courts Shall Not Act As Court Of Appeal Against Decision Of Lower Court Or Tribunals To Correct Errors Of Fact: Bombay High Court
The Bombay High Court recently clarified that writ courts shall not trench upon an alternate remedy provided by statute (Income tax Act) for granting any relief, by assuming jurisdiction under Article 226 of the Constitution.Similarly, writ courts shall not act as a court of appeal against the decision of the lower court or Tribunals, to correct errors of fact, observed the Division Bench...
Exporter Can't Be Denied Interest On Refund U/S 56 Of CGST Act For Period Of Delay Attributable To Revenue Dept: Bombay High Court
The Bombay High Court recently clarified that an exporter (Petitioner) is entitled to interest u/s 56 of the CGST Act for the period starting from the expiry of 60 days from the date of filing the shipping bill up to the date of grant of refund, although during the interregnum, the exporter's name was red flagged on the Customs' portal.The High Court held so while considering the prayer...
Tax Quarterly Digest: July To September 2024
1. [UP Trade Tax Act] Because Of Refund Due From Assessment Proceedings, Can't Escape Liability Of Depositing Tax Realized: Allahabad High CourtThe Allahabad High Court has held that a registered dealer cannot withhold the tax realised by him from a purchasing dealer only because he had deposited an excess amount of tax at the time of the transaction.The Court held that he cannot escape...
Expenses Incurred For Payment Of Foreclosure Premium Of Loan Is Allowable As Business Expenditure U/S 37(1): Madras High Court
The Madras High Court recently ruled that the expenditure incurred for payment of foreclosure premium for restructuring loan and obtaining fresh loan at a lower rate of interest is allowable as business expenditure u/s 37(1) of the Income Tax Act.Such ruling came while dealing with a case where scrutiny proceedings were initiated, leading in revisional assessment u/s 263, based on the...
Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act
The Calcutta High Court has refused to apply Section 292B of the Income Tax Act, 1961 to a scrutiny notice issued in an amalgamating company's name, despite the Assessing Officer being aware about the company's amalgamation. Section 292-B provides that no notice or assessment or any proceedings can be deemed to be invalid merely for the reason of any mistake, defect or omission in...
Factual Examination Of Dispute Regarding 'Addition' Of Unexplained Cash Credit U/S 68 Of IT Act Is Beyond Scope Of Appeal U/S 260A: Calcutta HC
The Calcutta High Court has held that it cannot indulge in factual examination of the material produced or not produced by an assessee-company to explain the share capital and premium received by it, in an appeal filed under Section 260A of the Income Tax Act. A division bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya thus refused to interfere with an...
Transfer Of License Is “Deemed Sale,” Consideration Received Cannot Be Subjected To Service Tax: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the transfer of a license constitutes a “deemed sale” under article 366(29A)(d) of the Constitution and, therefore, any consideration received from it cannot be subjected to service tax. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has...