Tax
Who Qualifies As 'Proper Officer' To Issue Show Cause Notices U/S 74 Of CGST Act? Jharkhand High Court Clarifies
The Jharkhand High Court has provided a significant clarification regarding who qualifies as the “proper officer” empowered to issue a show cause notice under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017. The Division Bench of Justices Sujit Narayan Prasad and Arun Kumar Rai observed that “If the definition of the Poper Officer will be taken into...
S.107 CGST Act | Appellate Authority Cannot Suo Moto Enhance Tax Liability: Calcutta HC
The Calcutta High Court recently set aside an order of the GST Appellate Authority, suo motu enhancing tax liability on an assessee, without following the procedure under Section 107(11) of the CGST/ WBGST Act.Section 107 of the Act prescribes procedure for filing and adjudication of appeals by the Appellate Authority. Sub-section 11 thereof stipulates that the Appellate Authority can...
S.129(3) CGST Act- 7 Days Limitation Period For Passing Penalty Order After Notice To Goods Owner/ Transporter Mandatory: Patna HC
The Patna High Court has made it clear that the seven days limitation period prescribed under Section 129(3) of the Central Goods and Services Tax Act for passing an order of penalty, after notice has been issued to the goods owner/ transporter for violation of the CGST Act- is mandatory in nature. Stipulation in Section 129(3) CGST Act is that the proper officer detaining or...
Dismissal Of Application On Default Of lawyer , MP HC Directs Lawyer To Visit Mercy Home And Prepare Report, Court Emphasis Need To Promote 'Social Audit' By Lawyers
As a “test case” to give the concept of 'Social Audit' a chance to gain grounds, the Madhya Pradesh High Court recently suggested the counsel of an assessee, whose mistake had led to dismissal of assessee's Income Tax Appeal, to do community service. The division bench of Justices Anand Pathak and Rajendra Kumar Vani also called upon lawyers and other resourceful persons of...
Recovery By Department During Pendency Of Investigation In The Name Of 'Self-Ascertainment Of Tax' U/S 74 CGST Act Is Violative To Art 265: Karnataka High Court
The Karnataka High Court held that voluntary determination by the assessee himself as regards the liability of tax, is sine qua non for 'self-ascertainment of tax' under CGST Act. The High Court therefore clarified that when notice sought to be issued u/s 74(1) indicate a fresh and complete adjudication and does not refer to short fall of actual tax required to be paid as...
Supreme Court Summarises Principles For Interpreting Tax Statutes In Judgment On GST Input Tax Credit
The Supreme Court on Thursday (October 3) outlined the principles governing the interpretation of taxation statutes in the context of the Central Goods and Services Tax (CGST) Act, 2017.A bench of Justice Abhay Oka and Justice Sanjay Karol summarised the principles of interpretation while dealing with a case involving the interpretation of Section 17(5)(d) of the CGST Act, which disallows...
Unexplained Cash Credit In Bank Account Would Be Treated As Income : Chhattisgarh High Court
The Chhattisgarh High Court recently upheld an ex-parte assessment under Section 144 of the Income Tax Act, 1961, against an assessee who failed to participate in assessment proceedings or explain the source of a cash deposit of ₹11,44,070 in his bank account. The bench comprising Justices Sanjay K Agrawal and Amitendra Kishore Prasad noted that under Sections 68 and 69A if an assessee...
Interest Earned On Funds Granted By Government, Kept In Bank Till Its Utilization Is Capital Receipt: Kerala HC
The Kerala High Court held that the 'interest income' on the short-term deposits of the funds infused by the Government, which are sanctioned for purpose of setting up of business, are in nature of 'capital receipt' and not 'revenue receipt'. The Division Bench of Justice Sathish Ninan and Justice Johnson John observed that “if the funds invested are not surplus funds as such,...
Limitation For Refund Of GST Is Determined From Date Of Original Application, Not From Date Of Follow-Up Application: J&K HC Quashes Deficiency Memo
The Jammu and Kashmir and Ladakh High Court has held that the time limit for refund of GST is to be determined from the date the original application is filed by an assessee, and not from the date of follow-up application. In the case at hand, the Petitioner, a garment manufacturer, was issued a deficiency memo and the follow up application, which it had filed for GST refund at the...
Commissioner According Sanction U/S 151 Income Tax Act For Issuing Reassessment Notice Must Give Reasons, Merely Saying “I am Satisfied” Not Sufficient: Delhi HC
The Delhi High Court has held that the Income Tax Commissioner's order granting sanction under Section 151 of the Income Tax Act 1961 for reopening assessment after four years of relevant Assessment Year (AY)- must be a speaking one, passed after independent application of mind. A division bench of Justices Ravinder Dudeja and Yashwant Varma observed, “Mere repeating of the words...
Notice of Assessment Issued Within Limitation, Assessment Order Valid Even If Passed Beyond Three-Year Period: Madras High Court
The Madras High Court stated that if notice for completing assessment issued within limitation, then assessment order is within time even if passed beyond period of three years. The Division Bench of Justices R. Suresh Kumar and C. Saravanan observed that “as per Section 24(5), no assessment shall be made after a period of three years from the end of the year to which the return...
Gauhati HC Criticizes ITAT For Inconsistent Views On Applicability Of Explanation To Section 14A Income Tax Act, Says It Applies Prospectively
The Gauhati High Court recently expressed discontent over the Income Tax Appellate Tribunal for taking inconsistent view on the date of applicability of Explanation to Section 14A of the Act of 1961 inserted by Finance Act, 2022. “Such a conduct of the members of an authority, which is discharging judicial functions, cannot be appreciated. Any authority discharging...