Tax
Penalty Order Set Aside Leads To Automatic Quashing Of Prosecution Under Section 276C(1) Of Income Tax Act: Jharkhand High Court
In a significant ruling, the Jharkhand High Court has held that once a penalty order is set aside, it will be presumed that there is no concealment of income, automatically leading to the quashing of prosecution under Section 276C(1) of the Income Tax Act.Justice Sanjay Kumar Dwivedi, while delivering the judgment, emphasized, “In view of the above judgments, the Court comes to the...
GST | Allow Assesee To Upload ITC-01 To Claim Input Tax Credit: Allahabad High Court
The Allahabad High Court has allowed the assessee-petitioner to upload ITC-01 to enable him to avail of Input Tax Credit for shifting from the Composite Scheme to the Normal Scheme.The Petitioner was initially registered under the Composition Scheme for the Financial Year 2022-23. However, with an increase in its turnover of the Financial Year, it converted into a normal scheme after submitting...
KVAT Act | Tax Doesn't Apply To Transfer Of Goods But To Transfer Of 'Right To Use' Goods: Kerala High Court
In a significant ruling, the Kerala High Court recently held that the tax under the KVAT Act applied not to the transfer of goods but to the transfer of the right to use goods.A division bench of Justice A.K Jayasankaran Nambiar and Justice Mohammed Nias CP added that the taxable event occurs when the contract for goods delivery is executed, irrespective of whether the transfer...
Exemption Claim On Service Of Rent-A-Cab Provided In SEZ To Be Supported By Invoices: CESTAT
The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that exemption claim on service of rent-a-cab provided in Special Economic Zone (SEZ) to be supported by invoices.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) observed that the service of Rent-a-Cabs provided in SEZ is exempted however, though the assessee has claimed...
CBIC Notifies Procedure When Provisional Attachment Of Property Ceases To Have Effect
The Central Board of Indirect Taxes and Customs (CBIC) has notified the procedure to be followed with respect to section 83(2) of the CGST Act, 2017 when provisional attachment of property ceases to have effect.“Keeping in view the convenience of taxpayers, the Board prescribes the procedure that in such types of situations, the Commissioner shall issue communication/an intimation to...
Income Tax Act; Mere Uploading Of Notice On Assessee’s E-Portal Is Not Proper Service: ITAT
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that mere uploading of notice on the assessee’s e-Portal of the Income Tax Department is not proper service as per the Income Tax Act.The bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that service of notice on the portal alone without compliance with Section 282 of...
Fabrication Job With Help Of Labour Can’t Be Manpower Recruitment Or Supply Agency Service: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that carrying out a job of fabrication with the help of labour cannot be classified as manpower recruitment or supply agency service.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the assessee had been assigned the job of fabrication by the...
Tax Cases Weekly Round-Up: 3 September To 9 September, 2023
Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title:...
Bombay High Court Quashes Reassessment Notice Issued After 3 Years Without Proper Approval
The Bombay High Court has quashed the reassessment notice issued after 3 years without proper approval.The bench of Justice K.R. Shriram and Justice N. K. Gokhale has observed that the approval of the specified authority in terms of Section 151(ii) of the Income Tax Act is a jurisdictional requirement, and in the absence of complying with this requirement, the reopening of assessment...
Overlooking Assesssee’s Reply Demonstrates Non-Application Of Mind By The AO: Delhi High Court
The Delhi High Court has quashed the draft assessment orders, final assessment orders, and consequential demand on the grounds that the assessing officer inadvertently overlooked the email reply of the assessee, in which the assessee disclosed vital facts pertaining to its case.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the denial of sufficient time...
Receipts From Provision Of Background Screening And Investigation Services To Clients In India Is Not Royalty/FTS: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that receipts from the provision of background screening and investigation services to clients in India are not royalties or fees for technical services (FTS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the services rendered by the assessee do not involve any technical skill...
Bombay High Court Directs Dept. To Refund TDS Amount Deposited By Assessee Under Protest
The Bombay High Court, while invoking the doctrine of unjust enrichment, directed the department to refund the TDS amount deposited by the assessee under protest.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that technically, even though the amount deposited by the petitioner would be called ‘tax deductible at source’, what the petitioner paid was ‘an ad...