Tax
Infrastructure Companies laying Roads On BOT Basis Are Not Owners, Can't Claim Depreciation On Toll Roads: Mumbai ITAT
Emphasizing that ownership is a sine qua non for availing depreciation, and roads/ bridges are public properties, the Mumbai ITAT held that an infrastructural development company which has laid down roads cannot claim depreciation over same. The Division Bench comprising Amarjit Singh (Accountant Member) and Sandeep Singh Karhail (Judicial Member) denied depreciation claim on toll...
No Reopening Is Permitted U/s 148 On Issues Which Were Answered In Favour Of Taxpayer During Course Of Revision U/s 263: Delhi HC
The Delhi High Court held that once the PCIT in the revisionary proceeding u/s 263, had decided in favour of assessee after having considered its reply, then AO had no authority to reassess and reopen the assessment u/s 148. The High Court held so, after finding that the reasons for issuing notice u/s 148A(b) were exactly similar to the reasons on which the PCIT had invoked Section...
Non-Payment Of Tax To Govt For 3 Months After Due Date Not Ground To Cancel GST Registration: Delhi HC
The Delhi High Court has made it clear that non-payment of dues in the form of tax, interest or penalty, by a registered entity to the account of Central/State Government beyond a period of three months after due date, is not a ground to cancel its registration under the Central Goods and Services Tax Act.A bench of Justices Vibhu Bakhru and Sachin Datta took note of Section 29 of CGST Act...
Deadline To File Income Tax Audit Report For FY 2023-24 Extended Till October 7
The income tax department has extended the date for filing the audit report for 2023-24 by 7 days till October 7. The audit report must be filed online via the e-filing ITR portal.A circular issued by CBDT in this regard states,"On consideration of difficulties faced by the taxpayers and other stakeholders in electronic filing of various reports of audit under the provisions of the...
Rule 86A Of CGST Rules 2017 Does Not Imposes Any Burden To Be Discharged By Taxpayer To Be Entitled To Input Tax Credit: Delhi HC
The Delhi High Court held that the amount of debit to be disallowed from the Electronic Credit Ledger (ECL) should not be more than the amount of the Input tax credit (ITC), which is believed to have been fraudulently availed by taxpayer.At the same time, the High Court clarified that Rule 86A of CGST Rules 2017 is an emergent measure for protection of revenue by temporarily not allowing debit...
Capital Asset Financed By Foreign Currency Loan Can Be Capitalized U/s 43A If Such Asset Was Imported From Abroad: Bombay High Court
While explaining that Section 43A is a non-obstante provision, which positively imposes an obligation notwithstanding anything contained in the Income tax Act, the Bombay High Court held that losses due to exchange rate changes on a foreign currency loan taken for import of a capital asset must not be treated as revenue expenditure.Section 43A of Income tax Act requires companies to...
Industrial Benefit Scheme Extended By State Government Can't Be Withdrawn By Electricity Department On Basis Of Audit Objection: Patna High Court
Referring to the decision of Shanta Mani Hand Made Paper Industries Vs. The State of Bihar & Ors [CWJC No. 2941 of 2010], the Patna High Court reiterated that supplementary bills which are punitive in nature, cannot be raised upon taxpayer and benefit granted by State government cannot be withdrawn based on mere audit objection.The High Court reiterated so after finding that the...
Credit Card Fees Payable To Foreign Counterpart Of Indian Banking Company Is Not Taxable In India: Delhi High Court
The Delhi High Court held that fees received by the foreign branch of banking company for extending a credit line to the account holder outside India, would not be taxable in India.While noting that the amount payable by the credit card holders would clearly be a debt incurred outside India, the Division Bench of Justice Yashwant Varma and Justice Ravinder Dudeja observed that fee in respect...
Liberty Given To Revenue In SC's Abhisar Buildwell Judgment To Initiate Reassessment Proceedings Doesn't Overcome Limitation U/S 149 Income Tax Act: Delhi HC
The Delhi High Court has made it clear that the Supreme Court judgment in Abhisar Buildwell, which granted liberty to the Revenue Department to initiate reassessment proceedings under Sections 147/148 of the Income Tax Act- in case of completed/ unabated assessment, if no incriminating material is found during the search- cannot be construed to be an authority to override the...
Himachal Pradesh HC Says Rule 86B Of CGST Rules Limiting Discharge Of Output Tax Liability Through ITC In Electronic Credit Ledger Appears To Be Ultra Vires HPGST Act But Leaves Issue Open
The Himachal Pradesh High Court recently observed that Rule 86B of the Central Goods and Services Tax (CGST/HPGST) Rules, 2017, which restricts use of Input Tax Credit (ITC) in the Electronic Credit Ledger for releasing Output tax, appears to be ultra vires the HP Goods and Services Tax Act 2017.Rule 86B stipulates that ITC in the Electronic Credit Ledger can be used to discharge 99% of...
Payment To Non-Employed Director As Sitting Fees Is Not Salary, Hence Liable To Service Tax: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made to a non-employed director as director's sitting fees is not in the nature of salary; hence, the director's fees are liable to the levy of Service Tax.The Bench consists of Ramesh Nair (Judicial Member) and Raju (Technical Member), considered the issue of whether the assessee...
Society Imparting Knowledge Or Skills Qualifies For 'Education' Label, Entitled To Exemption Under Section 12A Of Income Tax Act: Punjab & Haryana High Court
The Punjab and Haryana High Court held that a society that imparts knowledge or skills qualifies for the 'education' label under the Income Tax Act, making it eligible for tax exemptions under Section 12A of the Income Tax Act, 1961.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “……Vocational training has been now recognized to be an important as...