Tax
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...
Goods Shall Be Released Provisionally If Assessee Demonstrates Inclusion Of Transaction In GSTR-1 Return: Madras High Court
The Madras High Court stated that if the assessee is able to demonstrate that the transaction is included in the GSTR-1 Return, the goods shall be released provisionally. The Bench of Justice Mohammed Shaffiq directed the assessee to submit a copy of the GSTR-1 report, as it would reveal whether the subject transaction was disclosed as a zero-rated sale. Section 54 of the...
GST Exemption On 'Reinsurance Services' In Relation To Govt Insurance Schemes Applies With Retrospective Effect From July 01, 2017: Delhi HC
The Delhi High Court has held that GST exemption on foreign reinsurance services in relation to government insurance schemes applies with retrospective effect, from July 1, 2017 onwards. This was in light of the fact that though the exemption was notified only on July 27, 2018, the government regularized GST liability on such services for the period from July 01, 2017 till July...
Assessment Was Based Solely On Existence Of Cash Deposits Linked To Incorrect PAN: Ahmedabad ITAT Deletes Addition U/S 69A Of IT Act
The Ahmedabad ITAT held that since the assessee/ appellant was consistently filing her returns under the original PAN and had also paid penalties for holding two PANs without contesting, the appellants effort reflects compliance of the provisions of Income tax Act rather than an intent to conceal any income. The Bench of T.R. Senthil Kumar (Judicial Member) and Makarand...
Stock-In-Trade Sold During Relevant Year Should Only Be Considered For Purpose Of Computing Capital Gains: Hyderabad ITAT
The Hyderabad ITAT held that the capital gain arising on account of conversion of capital asset into stock-in-trade should be proportionately computed by considering the stock-in-trade sold by the assessee and not the entire extent of land converted by the assessee. The Tribunal held so, after finding that the assessee has sold part of the stock-in-trade for the current financial...
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...