“Only Three Days Were Given To Assessee To Respond To Show Cause Notice”: Kerala High Court Sets Aside Reassessment Order

The Kerala High Court set aside an order in reassessment proceedings that was issued without providing the assessee an opportunity to respond to the show cause notice. The Bench of Justice Gopinath P. observed that “the show cause notice was issued on 12-03-2024, giving only three days' time to the assessee to respond, and the order was issued on 20-03-2024………...

S.129 CGST/SGST Act | Penalty Only For Violations With Intent To Evade Tax Or Repeated Violations; Not For Minor Discrepancies : Kerala High Court

The Kerala High Court held that tax/ penalty under Section 129(1)(a) or 129(1)(b) of the CGST/ SCGST can be imposed only for violations which may lead to evasion of tax or which was done with the intention to evade or in case of repeated violations.Justice P. Gopinath observed:“It is declared that the provision of Section 129 of the CGST/ SGST Acts do not authorize the imposition of...

Income Tax Assessee Who Failed To Avail Option To Request Personal Hearing Can't Claim That Personal Hearing Was Not Provided: Madras HC

The Madras High Court ruled that if an assessee does not take advantage of the opportunity to request a personal hearing from the department, they cannot later claim that they were denied a personal hearing. The Bench of Justice Krishnan Ramasamy observed that “……though the department has given liberty to the assessee to request for personal hearing, the assessee failed to...

AO Can't Refer Assessee's File To Joint Commissioner For Levying Penalty U/S 271D Of IT Act Without Recording “Satisfaction”: Delhi HC

The Andhra Pradesh High Court has held that an Assessing Officer cannot refer an assessee's file to the Joint Commissioner of Income Tax for levying penalty under Section 271D of the Income Tax Act, 1961 without recording its “satisfaction”.Section 271D of the Income Tax Act prescribes the penalty to be imposed on a taxpayer for taking loan or deposits in contravention of Section 269SS....

[Income Tax] Non-Functionality Of TRACES Portal Can't Be Ground To Deny Benefit Of Statutory Rights To Assessee: MP High Court

The Madhya Pradesh High Court has made it clear that non-functionality of Income Tax Department's TRACES Portal cannot be grounds for denying the benefit arising to an assessee under statutory provisions of the Income Tax Act, 1961. A division bench of Justices Vivek Rusia and Anuradha Shukla thus held that an assessee' TDS refund cannot be denied merely on the ground that...

Due Date For Employer To Deposit Employee's Contribution To PF Not Governed By S.43B Income Tax Act: Rajasthan HC Reiterates

The Rajasthan High Court has reiterated that share of the employee in the provident fund deducted by the employer, has to be deposited as per the due date fixed by the EPF Act and ESI Act, and not as per Section 43B of the Income Tax Act, 1961. The Scheme framed under Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) provides that employee's contribution shall...

S.11A Central Excise Act | Revenue Can't Recover Refunded Cess Merely Because SC Judgment Permitting Refund Was Later Overruled: Sikkim HC

The Sikkim High Court recently criticized the Siliguri GST and Excise Commissionerate for seeking to recover the cess refunded to the claimants in terms of Supreme Court's judgment in M/s SRD Nutrients (P) Limited vs. CCE, (2018), on the basis of a subsequent judgment overruling it. The Apex Court in M/s SRD Nutrients (supra) had held that when payment of Excise Duty is exempt under...

Taxpayer Can't Claim Credit Against Tax Payable In India If He Has Not Paid Any Tax In Country Where He Sourced Income: Mumbai ITAT

While observing that the assessee is a resident of India in terms of Article 4(2)(a) of the Indo-US DTAA, the Mumbai ITAT held that all his income derived in the USA, is chargeable to tax in India by virtue of the provisions of section 5 of the Income tax Act.Since the income tax return filed by the assessee in the USA, does not show that he is paid any tax in the USA, therefore, the...

Capital Gains Arising Out Of Sale Of Long-Term Capital Assets Shall Be Taxable At Rate Of 20% U/S 112 Of IT Act: Mumbai ITAT Special Bench

While observing that the deeming fiction of section 50 cannot be imported u/s 112, the Mumbai ITAT in a split verdict ruled that capital gains u/s 50 of Income tax Act, arising out of sale of long-term capital assets, shall be taxable at rate of 20% u/s 112 of the Act. Section 50 of Income tax Act is a special provision for computation of capital gains in case of depreciable...

Absence Of Controlling Interest Renders Sale Of Shares By Spanish Entity Not Taxable In India As Per Indo-Spain DTAA: Mumbai ITAT

The Mumbai ITAT held that capital gain arising out of transfer of shares of an Indian entity cannot be taxed at hands of foreign entity in India, if foreign entity has less than 10% shareholding in such Indian entity. The ITAT held so while referring to UN Model Convention commentary, which states that the provisions of Article 14(4) come into effect to prevent the case...

Additions Made Under Income Tax Act Have No Bearing Under Black Money Act: Mumbai ITAT

The Mumbai ITAT held that any addition made as undisclosed foreign income and asset under the Black Money Act (BMA), shall not be repeated under the Income Tax Act. However, since there is no corresponding provision under the Income tax Act, the ITAT clarified that additions made under the Income tax Act have no bearing under the BMA. Single Third Member Bench...

Assessee's Failure To Respond To Draft Assessment Order In Timely Manner No Grounds For AO To Exceed Limitation U/S 144C(4) Of IT Act: Delhi HC

The Delhi High Court has made it clear that an assessee's failure to timely respond to the 'draft assessment order' issued under Section 144C of the Income Tax Act, 1961 does not give leeway to the Assessing Officer (AO) to exceed the limitation period for passing the final assessment order. Section 144C prescribes special procedure whereby an 'eligible assessee' is issued...