Tax
ITAT Cases Weekly Round-Up: 10 To 16 March 2024
Interest Income Earned On Deposits Placed With Co-Operative Society Is Duly Eligible For Deduction U/s 80P(2)(D): Chandigarh ITAT Case Title: Balduhak Co-operative Agriculture Service Society verses ITO Finding that that the assessee is a Cooperative Society (and not a co-operative bank) which was engaged in providing short term credit facility to its members, the Chandigarh ITAT...
Consistency Sacrosanct In Taxation Matters, Department Can't Take Different Stand In Identical Situations: Allahabad HC Grants Relief To Samsung
The Allahabad High court has held that the Department must take consistent stands in identical fact situations for different tax periods as consistency is paramount in tax regime.While observing that the facts of the tax periods under dispute were exactly identical to previous tax periods, Justice Shekhar B. Saraf held “While the principle of res judicata does not apply to taxation matters,...
CGST | Travelling Beyond SCN Erodes Trust In Integrity & Impartiality Of Adjudicatory Process: Allahabad High Court
The Allahabad High Court has held that Department travelling beyond the scope of the show cause notice undermines the right to fair hearing of an assesee and also erodes the trust in integrity and impartiality of the adjudicatory process.The Court held that Department must clearly outline the allegations against the assesee. Under no circumstances can the Department travel beyond the...
S75(4) UPGST | 'Or' Is Disjunctive In Nature, Each Option To Be Considered Independently: Allahabad High Court
The Allahabad High Court has held that the use of word 'or' in Section 75(4) of Uttar Pradesh Goods and Service Tax Act, 2017 is disjunctive in nature which means that there are two situations provided in which opportunity of personal hearing must be afforded to an assesee and both situations must be considered independently while applying Section 75(4).Section 75(4) of Uttar Pradesh Goods...
Services Of Planning Travel Itinerary Of Clients Classified As “Air Travel Agent” And Not Under Business Support Service: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services for planning travel itineraries for clients are classified as “air travel agents” and not under business support services.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the definition of “air travel agent” includes all...
CGST | 'Capital Goods' Are For Long-Term Use, 'Inputs' For Day-To-Day Operations, Not Capitalized In Books Of Accounts: Allahabad HC Clarifies
The Allahabad High Court has clarified that 'capital goods' as defined under Section 2 of the Central Goods and Service Tax Act, 2017 are for long term use whereas 'inputs' are meant for day-to-day business operations and are not capitalized in the books of accounts.“Capital goods are intended for long-term use and are typically subject to capitalization. However, inputs, are goods used in...
Bombay High Court Quashes Reassessment Proceedings Against Castrol India Initiated On Basis Of A Change Of Opinion
The Bombay High Court has quashed reassessment proceedings against Castrol India initiated on the basis of a change of opinion.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the reasons to believe notice itself indicates that the AO was already seized with information prior to passing the original assessment order, and as such, there is no tangible information...
Claim Seeking Application Of Income For Charitable Purpose U/s 11 & 12 Can't Be Denied To Trust On Mere Technicalities: Delhi ITAT
The New Delhi ITAT emphasized that the Revenue Authorities have to tax the right person in right manner and shall not disallow the eligible deductions on mere technicalities.The Bench of M. Balaganesh (Accountant Member) and Yogesh Kumar U.S (Judicial Member) observed that “the Revenue has rejected the plea of the Assessee based on mere technicalities and it is not the case of the Revenue...
Premium Charged On Issue Of Shares To Existing Shareholder Is Not Deemed Income U/s 56(2)(Viib) If No Income Accrues To Ultimate Beneficiary: Delhi ITAT
Recently, the Delhi ITAT reiterated that object of deeming an unjustified premium charged on issue of share as taxable income u/s 56(2)(viib) of the Income tax Act is wholly inapplicable for transactions between holding and its subsidiary company where no income can be said to accrue to the ultimate beneficiary, i.e., holding company. The Bench of Kul Bharat (Judicial Member) and...
Addition Towards Purchases Should Be Restricted To Embedded Profit Once AO Has Not Disputed Sales Declared By Assessee: Mumbai ITAT
Referring to the decision of Bombay High Court in the case of Principal CIT vs Mohammed Haji Adam & Co (Income Tax Appeal No.1004 of 2016 dated 11/02/2019), the Mumbai ITAT reiterated that the additions should be limited to the extent of the G.P. rate on purchases at the same rate of other genuine purchases.The Bench of Aby T Varkey (Judicial Member) and MS Padmavathy S (Accountant...
CIT(A) Can't Simply Dismiss Any Appeal U/s 250 On Account Of Non-Prosecution, Without Discussing Merits Of Case: Ahmedabad ITAT
The Ahmedabad ITAT emphasized that as per Section 250 of the Income tax Act, it is incumbent on the CIT(A) to make necessary enquiry before passing the order and he is obliged to decide each of the points arising out of the appeal i.e. grounds on merits have to be discussed even in an ex-parte order.The Bench of Annapurna Gupta (Accountant Member) and Siddhartha Nautiyal (Judicial...
AO Fails To Demonstrate Live Link Between Tangible Material & Reason To Believe Escaped Income: Delhi ITAT Quashes Reopening
On finding that the requirement of application of mind is missing in the instant case, the Delhi ITAT held that the reassessment made in the section 143(3) read with section 147 of the Income Tax Act, 1961, is bad in law and hence, the re-assessment order is quashed.The ITAT pointed that there is no independent application of mind by the AO to tangible materials and reasons and the AO failed...