Tax
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...
TOLA Extends Income Tax Reasssment Timelimit; Notices Can Be Issued After 2021 Under Old Regime : Supreme Court
The Supreme Court on Thursday (October 3) set aside the judgments of the High Courts which held that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions Act) (TOLA) 2021 will not extend the time limit for issuing notices for re-assessment under the Income Tax Act.A bench comprising Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Manoj Misra delivered...
GST Input Tax Credit On Construction Costs Can Be Claimed If Building Construction Was Necessary For Renting Out Service : Supreme Court
The Supreme Court on Thursday (October 3) held that if construction of a building is essential for supplying services such as renting out, it could fall into the "plant" exception to section 17(5)(d) of CGST Act which provides that Input Tax Credit cannot be claimed for construction material (other than plant or machinery) for immovable property construction. “If the construction of a...
Recovery Officer Can't Attach Taxpayer's Overdraft Account With Banks By Exercising Power U/s 226(3): Himachal Pradesh HC Quashes Attachment Order
Observing Cash Credit account or overdraft is capable of being attached u/s 226(3) of Income tax Act, the Himachal Pradesh High Court turned down the decision of Tax recovery officer in passing the order of attachment of Cash Credit Account. Explaining the relationship between debtor & creditor, the High Court clarified that bank does not become a debtor to its customers and...
[Tax Not Paid/ Short Tax] 'Summary Of Show Cause Notice' In GST DRC-01 Not A Substitute For SCN U/S 73(1) CGST Act: Gauhati HC
The Gauhati High Court has held that Summary of Show Cause Notice in Form GST DRC-01 along with an attachment of the 'determination of tax' does not constitute a valid Show Cause Notice (SCN) under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017. “The Summary of the Show Cause Notice in GST DRC-01 is not a substitute to the Show Cause Notice to be issued in terms...
District Bar Associations Election: Delhi High Court Exempts Taxation Bar Association Members From Court Appearance Requirement
The Delhi High Court exempted members of Taxation Bar Association from the Court appearance requirement. The Bench, consists of Chief Justice Manmohan and Justices Vibhu Bakhru and Yashwant Varma, noted that, in light of the judgment in Lalit Sharma and Ors. v. Union of India and Ors. [W.P.(C) 10363/2021], dated 19th March 2024, a majority of the advocate members of the Delhi...
Self-Assessment U/S 143(1) Income Tax Act Doesn't Qualify As Assessment By AO, No Bar On Reopening Assessment U/S 147: Delhi HC
The Delhi High Court has held that merely because an assessee made self-assessment under Section 143(1) of the Income Tax Act 1961, is not reason to preclude reassessment proceedings initiated by the Department. “The assessment of tax under Section 143(1) of the Act is a self-assessment and in a strict sense cannot be stated as assessment framed by the AO,” observed a bench...
Retailer Can't Be Presumed To Fall Under 'Exceptions' From GST Registration Without Supporting Materials Placed On Record: Gauhati HC
The Gauhati High Court has held that a retailer cannot be presumed to fall within the exception from registration under the Assam Goods and Services Tax Act 2017, without any materials placed on record to support the exemption. A bench of Justice Sanjay Kumar Medhi observed that though certain entities are given exemption under the Act, there cannot be any presumption in that...