Suspicious Suppliers Being From Different States Is No Ground To Transfer Proceedings from State to Centre: Punjab & Haryana High Court

The Punjab and Haryana High Court stated that merely having information that suspicious suppliers are not located in the same state would not be ground to transfer proceedings from the state to the centre. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth stated that “merely because the DGGI has information relating to similar fraudulent availment of ITC...

External Development Charges Collected In Advance By Builder From Prospective Flat Owners, Can't Be Brought To Tax: Delhi ITAT

The Delhi ITAT held that when the project under consideration is not yet completed, the advance collected by infrastructure companies from the buyers cannot be charged to profit and loss account. The Division Bench of S. Rifaur Rahman (Accountant Member) and Anubhav Sharma (Judicial Member) observed that “the assessee has collected the same for providing the common services...

Show Cause Notice Does Not Provide Any Clue Why Petitioner's GST Registration To Be Cancelled ; Delhi HC sets aside Show Cause Notice

The Delhi High Court held that the purpose of issuing a show cause notice is to enable a noticee to respond to the allegations based on which an adverse order is proposed. Hence, the High Court quashed the order as well as SCN observing that the SCN is not intelligible as it does not specify the reason for cancelling the petitioner's GST registration. The Division Bench of...

Tax Concession Can't Be Denied Based On Vehicle Registered In The Name Of Trust And Not School: Madras High Court

The Madras High Court stated that the Tax Concession cannot be denied just because the vehicle is registered in the name of Trust and not school. The Bench consists of Justice G.K. Ilanthiraiyan observed that “the Regional Transport Officer, Chennai failed to see the objects of the assessee/petitioner Trust, it is an educational Trust. That apart, the Regional Transport...

KYC Not Done By Purchasing Party Is Not A New Fact To Reopen Proceedings: Bombay High Court Declines Reassessment

The Bombay High Court quashes reopening notice issued under Section 148 of the Income Tax Act, 1961 while emphasizing that unauthorized transactions are made without requisite KYC of the purchasing party cannot be said to be a fresh fact which has come to light which was not previously disclosed which tends to expose the untruthfulness of the fact. The Division Bench of Justices...

Presumption Of Undervaluation Can't Be Drawn Just Because Of Higher MRP Rate On Product: Punjab & Haryana HC

The Punjab and Hayana High Court stated that the presumption cannot be drawn that invoices are undervalued merely because MRP Rate mentioned on the product is higher. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “it is also not a case of the State authorities that the invoices were different for the assessee in comparison to...

Mere Delay In Filing Form 10-IC Is Not Detrimental To Reduced Rate Of Tax If Taxpayer Satisfies Conditions Of Sec 115BAA: Gujarat HC

Finding that Assessee has satisfied conditions for reduced rate of tax u/s 115BAA, the Gujarat High Court pointed that the Revenue Department should have condoned delay in filing of Form 10-IC instead of rejecting it on technical ground. Section 115BAA of the Income Tax Act allows domestic companies to utilise the provisions of the section and pay tax at a lower tax rate of 22% plus...

KPO Service Provider Is Not Comparable To ITES Service Provider For Purpose Of Benchmarking International Transactions: Delhi HC

While condoning the delay of 815 days attributable to Revenue in filing of appeal, the Delhi High Court upheld the ITAT's order on the issue of selection of comparable for purposes of benchmarking international transactions of assessee with its AEs. The High Court maintained the status quo in excluding KPO service provider against IT enabled service provider, for...

Amount Seized From Third Party Is Not Eligible For Adjustment Against Advance Tax Liability Of Assessee: Punjab & Haryana HC

The Punjab & Haryana High Court held that cash seized from possession of another person cannot be adjusted against Assessee's tax liability as advance tax paid by him. The Division Bench comprising Justice Sanjeev Prakash Sharma and Justice Jagmohan Bansal observed “From sub-section (3) of Section 132B, it is evident that person from whose custody assets is seized is entitled...

'We Can't Run GST Administration' : Supreme Court Dismisses Plea For Rating Mechanism For GST Payers

The Supreme Court on Friday (September 6) dismissed a Public Interest Litigation seeking directions to the Union to formulate and implement a centralized rating mechanism of taxpayers under the Central Goods and Services Tax Act 2017 (CGST Act).The bench led by CJI DY Chandrachud comprising Justices JB Pardiwala and Manoj Misra refused to entertain the PIL since such a relief would fall...

Extended Period Of Limitation Can't Be Invoked If Officials Are Negligent: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no further investigation was conducted by the Revenue for more than two years after the search, hence the extended period of limitation can't be invoked. The Bench of R. Muralidhar (Judicial Member) and Rajeev Tandon (Technical Member) has observed that “the officials did not take up...

Telangana High Court Quashes Tax Authority's Show Cause Notices To Assessee As Demand Was Settled Under State's One Time Settlement Scheme

The Telangana High Court recently quashed two show cause notices issued by the tax authority to a company, demanding tax which was already settled under the state government's One Time Settlement (OTS) scheme, while noting that there was "no allegation of fraud" committed by the company in the notices. A division bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao in its August...