Section 245C(5) Of Income Tax Act Is Read Down By Removing Retrospective Last Date Of 1st Feb 21 As 31st March 21: Madras High Court

The Madras High Court has held that Section 245C(5) of the Income Tax Act, 1961 (as amended by the Finance Act, 2021) is read down by removing the retrospective last date of the 1st February 2021, as the 31st March 2021.The bench of Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy has observed that the Finance Act, 2021, was retrospective in nature. Those who have had...

Department Required To Serve Notice Upon Legal Representative Of Deceased Before Proceeding Under GST Act: Allahabad High Court

The Allahabad High Court has held that the Goods and Service Tax Department is required to serve notice upon the legal representative of a deceased before proceeding against the deceased under the Central Goods and Service Tax Act, 2017.Petitioner’s husband was the sole proprietor of the firm was engaged in providing services as a Consultant. A show cause notice was issued in the name...

No Reason To Believe Income Chargeable To Tax Escaped Assessment: Gujarat High Court Quashes Income Tax Notice

The Gujarat High Court in a recent ruling underscored the importance of tangible evidence and a valid reason to believe that income has escaped assessment in a significant decision regarding the validity of reopening assessments based on reasons lacking a direct connection between the taxpayer and the disputed transaction.Justice Biren Vaishnav and Bhargav D Karia observed, “Perusal of...

Gujarat High Court Quashes FIR Against Chartered Accountant Firm In GSLDC Scam

The Gujarat High Court has quashed the First Information Report (FIR) against a Chartered Accountant firm in connection with the Gujarat State Land Development Corporation Limited (GSLDC) Scam.The court emphasized that the firm's role was confined to auditing vouchers and records, and it was not directly implicated in the misconduct associated with the Khet Talavadi project, the focal point...

Income Tax Act | 35(2ab) Deduction Can't Be Denied For Failure Of Authority To Send Intimation: Gujarat High Court Upholds ITAT Decision In Schaeffler India Ltd's Tax Appeal

In a recent ruling by the Gujarat High Court, it has been held that the deduction under Section 35(2AB) of the Income Tax Act cannot be denied merely due to the failure of the authority to send intimation.The decision came in response to an appeal filed by the Revenue against the order of the Income Tax Appellate Tribunal 'C' Bench, Ahmedabad, pertaining to the assessment year 2016-17.As...

Primary Facts Necessary For Assessment Fully & Truly Disclosed, AO Not Entitled To Change Opinion For Reassessment: Bombay High Court

The Bombay High Court has held that the primary facts necessary for assessment are fully and truly disclosed, and the Assessing Officer is not entitled, on change of opinion, to commence proceedings for reassessment.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that even if the Assessing Officer, who passed the assessment order, may have raised too many...

Reassessment On Suspicion To Enquire Further Is Unsustainable: Gujarat High Court

The Gujarat High Court has delivered a significant ruling, asserting that reassessment on suspicion for making further inquiry is unsustainable under section 148 of the Income Tax Act.The division bench of Justices Biren Vaishnav and Bhargav D Karia observed, “The reassessment was also therefore based on suspicion. As pointed out by learned Senior Counsel Mr.Hemani, that factors that...

Income Tax Act | Section 56(2)(Viic) Not Applicable To Fresh Issuances Or Allotments Of Shares By A Company: Gujarat High Court

The Gujarat High Court recently delivered a crucial ruling on the interpretation of Section 56(2)(viic) of the Income Tax Act, 1961, stating that the provision does not apply to fresh issuances or allotments of shares by a company.According to section 56(2)(viib), if a company receives, in any previous year, any consideration for the issue of shares that exceeds the face value of such shares...

Income Tax Act | Valid Show-Cause Notice Crucial For Recovery Under Section 179: Gujarat High Court

In a recent ruling, the Gujarat High Court has set aside an Income Tax Liability Order, highlighting the crucial requirement of a valid show-cause notice for recovery under Section 179 of the Income Tax Act, 1961.The above ruling came in a petition challenging the order dated 27.03.2019 under Section 179 of the Income Tax Act, 1961 against the petitioner holding him in his capacity as a...

2 Years Limitation To File GST Refund Application Is Directory & Not Mandatory: Madras High Court

The Madras High Court has held that the 2-year limitation to file a GST refund application is a directory and not mandatory.The bench of Justice Krishnan Ramasamy has observed that the terms used in Section 54(1) of the CGST Act ''may make application before two years from the relevant date in such form and manner as may be prescribed'', which means that the assessee may make application...

S.73 CGST Act| ‘No Reasonable Opportunity Granted To Respond’, MP High Court Quashes Show Cause Notice Against Raymond

Madhya Pradesh High Court has recently quashed a show cause notice and order of demand issued against Raymond Limited by observing that a minimum of 30 days must be given to afford ‘reasonable opportunity’ for the noticee to respond as per Section 73 of CGST Act.“Though no time period is stipulated in Section 73 for the noticee to respond but it is obvious that the statute...

Indian Jewellers Having Valid Licence To Import Gold Concessional Customs Duty From UAE Can Import It Through Bullion Exchange: DGFT

The Director General of Foreign Trade (DGFT) has notified that under the terms of the free trade agreement, Indian jewellers who hold a valid licence to import a certain amount of gold from the UAE at a reduced customs charge may do so through the bullion exchange IIBX.The DGFT has amended the import policy conditions for gold under HS Code 71081200 in Chapter 71 of Schedule I (Import Policy)...