No Addition Permitted U/s 68 Once Taxpayer Establishes Genuineness & Creditworthiness Of Share Subscribers: Mumbai ITAT

The Mumbai ITAT upheld the order of CIT(A) in deleting the addition made by the AO u/s 68 of the Income Tax Act, since the assessee has successfully established the genuineness and creditworthiness of the share subscribers alleged for the bogus transactions. The Bench of the ITAT comprising of Aby T. Varkey (Judicial Member) and B R Baskaran (Accountant Member) observed that...

No Deduction Can Be Claimed If Employees' Contribution Deducted From Employee's Salary was Not Paid To Respective PF & ESI A/c: Kolkata ITAT

Finding that the returns of the assessee have been processed in the Computer Processing Centre, the Kolkata ITAT ruled that if the Auditors have reported in the Audit Report that employees' contribution have been deducted by the assessee from the salaries of the employees but not deposited within due date provided under PF&ESI Act then no deduction can be claimed by assessee. The...

Income Of Co-Operative Society By Way Of Interest Derived From Investment With Any Other Cooperative Society, Is Allowable U/s 80P: Mumbai ITAT

Finding that assessee in the present case is not a cooperative bank, since the office of Central registrar of cooperative societies, New Delhi has issued a certificate of registration to the assessee registering it u/s 11 of Multistate Cooperative Societies Act, 2002, the Mumbai ITAT ruled that the income earned by a co-operative society by way of interest derived by from its investment...

Extension Of Timeline For Filing Form No.10AB For Recognition U/s.12A Is Deemed Extension For Renewal Of Approval Under Clause (Iii) Of First Proviso To Sec 80G: Chennai ITAT

The Chennai ITAT recently clarified that once the timeline prescribed for filing Form No.10AB for recognition u/s.12A has been extended, the same may be treated as extended for Form No.10AB for renewal of approval/recognition/registration under clause (iii) of the first proviso to section 80G of the Income Tax Act. The ITAT held so while agreeing with the contention of the...

Direct Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Delhi High Court Delhi High Court Interprets Rule 11UA For Determination FMV Of Shares U/S 56(2)(viib) Case Title: Agra Portfolio Pvt. Ltd. Versus Pr. Commissioner Of Income Tax The Delhi High Court has held that it has interpreted Rule 11UA of the Income Tax Rules, 1962, for determining the fair market value (FMV) of shares under Section 56(2)(viib) of the Income Tax...

Actual Expenditure, Source Of Which Was Not Explained, Attracts Deeming Provisions Of Sec 69: Ahmedabad ITAT

The Ahmedabad ITAT recently ruled that actual expenditure, the source of which has not been explained, attracted the deeming provisions provided u/s 69 of the Income tax Act. The ITAT at the same time clarified that no addition can be made in the hands of the assessee merely on the reason that the assessee got the property transferred through registered sale without making...

Filing Delayed Returns, Power To Condone Delay Is Conferred On CBDT To Ensure Substantial Justice; Bombay High Court

Explaining the scope of powers u/s 119(2)(b) of the Income tax Act, the Bombay High Court recently clarified that the legislature has conferred power on the Principal Commissioner of Income Tax (respondent no.3) to condone the delay to enable the authorities to do substantive justice to the parties by disposing the matter on merits. Hence, the High Court observed that routinely...

Indirect Tax Cases Weekly Round-Up: 7 April To 13 April 2024

Supreme Court Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials Case Title: The State Of Gujarat & Anr. V. Paresh Nathalal Chauhan Citation : 2024 LiveLaw (SC) 295 The Supreme Court (on March 12) expunged the observations made by the Gujarat High Court in an interim order that statutory protection of the good faith clause under Section 157...

Admissibility Of Discounts Passed On To Buyers Subsequent To Clearance, Is Eligible Deduction For Determination Of Assessable Value: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the admissibility of discounts that were passed on to the buyers and were known at the time of clearance of goods is an eligible deduction for the purpose of determining the assessable value.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has observed that the...

Counter Sales Permission Of Alcoholic Liquor Was Concession Given To Bar Attached Hotel Owners For Carrying On Business During Covid-19: Kerala High Court

The Kerala High Court has held that the permission to effect over-the-counter sales of alcoholic liquor was a concession given to bar-attached hotel owners to permit them to carry on business and tide over the COVID lockdown period. The assessee cannot now contend that the tax on such transactions should not be levied on him because he did not originally have permission to effect such...

Madras High Court Restrains Dept. From Appropriating Interest Liability Against Eicher Motors Until Matter Is Taken Up By Appellate Court

The Madras High Court has restrained the department from appropriating interest liability against Eicher Motors until the matter is taken up by the appellate court.The bench of Justice Senthilkumar Ramamoorthy has observed that since an appeal has been filed against the order of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) with regard to the imposition of interest on the...

Rationale To Deny ITC To Service Provider Who Is Not Liable To Pay Tax On Output Services Is Obvious: Delhi High Court

The Delhi High Court has held that the rationale to deny input tax credit (ITC) to service providers who are not liable to pay tax on output services is obvious.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has held that the service providers rendering services on which tax is payable on a reverse charge basis would constitute a class of their own, and a challenge to the same...