ITAT Cases Monthly Round-Up: March 2024

Filing Return By Due Date U/s 139 Is Mandatory For Political Party To Claim Exemption U/s 13A: Delhi ITAT Refuses To Stay Recovery Against Congress Party Case Title: Indian National Congress Verses Deputy Commissioner of Income Tax While holding the argument that an assessee is entitled to a stay on the recovery proceedings on payment of 20% of the demand during the pendency...

Ex-Parte Order Which Resulted Into Denial Of Proper Opportunity Of Being Heard, Merits Remand: Mumbai ITAT

On finding that the order passed by the Commissioner is an ex-parte order which resulted into denial of proper opportunity of being heard, the Mumbai ITAT set aside the order passed u/s 144 of the Income Tax Act, and remanded the case back to the file of the Commissioner for decision afresh. The ITAT also directed the assessee to deposit Rs.11,000/- in the Prime Minister's National...

CESTAT Cases Monthly Round-Up: March 2024

Information From ITR/26AS Can't Be Sole Basis For Service Tax Demands: CESTAT Case Title: M/s GopiChenna Versus Commissioner of Central Tax Medchal - GST The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax demand was made on the basis of third-party data, i.e., amounts reflected in income tax returns and in Form 26AS,...

Simple Disagreement With Plausible Views Of AO Is No Basis For CIT To Assume Jurisdiction U/s 263: Kolkata ITAT

While quashing the invalid exercise of jurisdiction by PCIT u/s 263 of the Income Tax Act, without satisfying the conditions precedent for such section, the Kolkata ITAT held that the PCIT cannot invoke the jurisdiction u/s 263 to substitute his view in place of AO on the ground that he does not agree with the view taken by the AO. The Bench of the ITAT comprising of Sanjay Garg...

Bifurcated Details Of Income From Specified & Non-Specified Business Is Not Available: Indore ITAT Asks To Reconsider Deduction U/s 35AD

While setting aside the order of deduction passed u/s 35AD of the Income Tax Act in relation to investment on warehouse, the Indore ITAT has remitted back the issue to the AO for proper verification and consideration of the bifurcated details of income from specified and non-specified business after finding that such bifurcation of income was not presented earlier before the AO. The...

No Addition U/S 69 Is Permitted Without Examining & Finding Fault In Cash Book Produced By Taxpayer: Delhi ITAT

On finding that the CIT(A) has failed to examine the cash book presented by the assessee, the New Delhi ITAT deleted the addition sustained by CIT(A) u/s 69 of the Income Tax Act. The Bench of the ITAT comprising of Yogesh Kumar U.S. (Judicial Member) and N. K. Billaiya (Accountant Member) observed that “The assessee having been produced the cash book and explained the cash found...

Receipts By Taxpayer Can't Be Added To Its Income U/s 68 For Just Non-Compliance Of Summons Issued U/s 131: Kolkata ITAT

On finding that the addition is based upon conjecture and surmises and not on records which were available before the authorities, the Kolkata ITAT set aside the order passed by the CIT(A) and directed the AO to delete the addition made u/s 68 of the Income Tax Act. The ITAT held that besides the mere fact that the assessee has failed to produce the principals of the subscribing...

Litigant Is Not Allowed To Use Process Of Law To Achieve Ulterior Purpose In Under Hand Way By Filing Appeal Belatedly: Indore ITAT

On finding that the assessee has failed to make out a case of reasonable cause much less sufficient cause for an abnormal delay of more than six years in filing the appeal, the Indore ITAT declined to condone the inordinate delay in filing of appeal and consequently dismissed the appeal filed against the revision order passed u/s 263 of Income Tax Act, being barred...

Service Tax Payable On Income Received By Smaaash From Bowling Alley Would Be Covered Under Amusement Facility: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the income received by the Smaaash from bowling alley would be covered under Section 66D(j) of the Finance Act and, therefore, would not be eligible for service tax.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that Section 66D(j) of the Finance...

Dept. Can't After Being Unsuccessful, On Its Own, Declare Order For CENVAT Credit Refund To Be Erroneous: Delhi High Court

The Delhi High Court has held that the department cannot, after being unsuccessful before this Court on its own, declare the refund of the CENVAT credit as well as interest on delayed payments to be an erroneous refund. The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that since the Revenue is approaching the Supreme Court impugning the order of the Tribunal as...

Additions U/s 69 Should Not Be Based Merely On Obtaining Surrender Statements: Chandigarh ITAT

On finding that the assessee in clear terms has surrendered the additional professional income covering the expenditure incurred on the building, the Chandigarh ITAT held that the invocation of Section 115BBE of the Income Tax Act, is not applicable and hence deleted the addition made by the AO on account of the addition in the value of building u/s 69. The Bench of the...

Retrospective GST Registration Cancellation Can't Be A Consequence Of Non-Filing Of Return: Delhi High Court

The Delhi High Court has held that simply because a taxpayer has not filed the returns for some period does not mean that the taxpayer's registration is required to be cancelled with a retrospective date.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has held that in terms of Section 29(2) of the Act, the proper officer may cancel the GST registration of a person from...