Direct Tax Cases Weekly Round-Up: 28 April To 4 May 2024

Delhi High Court Eligible Industrial Undertakings Carrying Out Manufacturing Activity Is Only Essential Requisite For Claiming Benefit Of Sec 80IC: Delhi High Court Case Title: CIT verses Dabur India Ltd The Delhi High Court dismisses Revenue's appeal against ITAT's order in case of Dabur India Ltd., while reiterating that for purpose of deduction u/s 80IB & 80IC of...

Lender Bank Registered With CERSAI Has 1st Priority Over DCST Against Proceeds Of Enforcement Under SARFAESI Act: Bombay High Court

The Bombay High Court has held that lender bank registration with the Central Registry of Securitisation and Security Interest of India (CERSAI) has first priority over Deputy Commissioner of Sales Tax (GST) (DCST) against proceeds of enforcement under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).The bench of Justice...

Reassessment Order Can't Merely Be Based On Tax Evasion Report Or An Audit Report: Orissa High Court

The Orissa High Court has held that reassessment orders cannot merely be based on a tax evasion report or an audit report.The bench of Justice B.R. Sarangi and Justice G. Satapathy has observed that it is not enough if the Assessing Officer refers to the tax evasion report or an audit report; he has to independently apply his mind and record his satisfaction that there has been an escapement...

Donation By One Trust To Other Charitable Institution Out Of Accumulated Fund Is Hit By Explanation To Sec 11(2) R/w/s 11(3)(D) & Hence Taxable: Delhi ITAT

While explaining Section 11(3) of the Income tax Act, the New Delhi ITAT held that any income referred to u/s 11(2) which is paid to any trust/ institution registered u/s 12AA or to any fund/ trust/ university/ educational institution/ hospital referred to u/s 10(23C)(v) shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be...

Union Finance Minister Administers Oath Of Office To Justice (Retd.) Sanjaya Kumar Mishra As First President Of GSTAT in New Delhi

The Union Finance Minister Smt. Nirmala Sitharaman administers Oath of Office to Justice (Retd.) Sanjaya Kumar Mishra as the first President of Goods and Service Tax Appellate Tribunal Appellate Tribunal (GSTAT) in New Delhi.Justice (Retd.) Mishra's appointment marks the beginning of the operationalisation of the GSTAT, a crucial body for resolving GST-related disputes.In order to offer...

No Penalty U/s 271B Can Be Levied If There Is Reasonable Cause For Failure In Timely Furnishing Tax Audit Report: Delhi ITAT

The New Delhi ITAT held that Section 44AB of the Income tax Act casts an obligation upon the assessee to get accounts audited before the specified date and furnish by that date the report of such audit. However, finding that there was reasonable cause for failure in furnishing the Tax Audit Report in time, the ITAT clarified that the present case is not a case of not getting the...

Amount Deposited During Demonetization Does Not Call For Addition U/s 69A If Source Of Deposit Was Sufficiently Explained: Rajkot ITAT

Finding that the assessee has explained the details of the earning of the amount which was rightly deposited during the demonetization period, the Rajkot ITAT held that the addition confirmed by the CIT(A) u/s 69A of the Income tax Act is not justified. Section 69A lays down that if, in any financial year, the assessee is found to be the owner of any money, bullion, jewellery, or...

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income

Noting that neither the Assessing Officer nor the CIT(A) have taken into consideration the explanation offered by the Assessee during the assessment proceedings in relation to the difference in the sale consideration and the stamp duty valuation of immovable property, the Mumbai ITAT deleted the penalty levied u/s 270A of the Income tax Act for under-reporting of income. The...

Differences In Opinion of Approved Valuer Regarding Fixation Of Value Of Particular Property Can't Be Termed As Concealment: Chennai ITAT Deletes Penalty

The Chennai ITAT held that assessee's claim on the fair market value cannot be termed as concealment of income, if such claim was based on the valuation report of an approved valuer. The Bench of Manjunatha. G (Accountant Member) and Manomohan Das (Judicial Member) observed that “The basis of the assessee's claim is the report of the approved valuer. Further, differences of...

Refusal By JBVNL To Reimburse Contractor GST Impact On Indirect Transactions Violative Of Article 14: Jharkhand High Court

The Jharkhand High Court has held that the action of Jharkhand Bijli Vitran Nigam (JBVNL) offends Article 14 of the Constitution of India by refusing to reimburse contractor GST impact on indirect transactions.“This is a settled law that the state and its instrumentalities are required to demonstrate fair play in action. In “ABL International Ltd. and Another,"17 the Hon'ble Supreme...

Indirect Tax Cases Weekly Round-Up: 28 April To 4 May 2024

Supreme Court Supreme Court Seeks Data Of GST Arrests, Says Citizens' Harassment Won't Be Allowed Due To Any Ambiguity In Arrest Provisions Case Title: Radhika Agarwal v. Union of India and Ors., W.P.(Crl.) No. 336/2018 (and connected matters) While hearing a batch of petitions challenging penal provisions of GST Act, Customs Act, etc. as non-compatible with the CrPC and...

Service Recipient Not Liable For Seller's Default: Calcutta High Court Directs Dept. To 1st Proceed Against Supplier

The Calcutta High Court has held that the adjudicating authority, without resorting to any action against the supplier, who is the selling dealer, ignored the tax invoices produced by the appellant as well as the certificates issued by the Chartered Accountants, which are erroneous and wholly without jurisdiction.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya...