Tax
No Material Available To Conclude Income Had Escaped Assessment:Bombay HC Quashes Income Tax Notice
The Bombay High Court has provided relief to the Maharashtra State Power Generation Company Limited by quashing the notice issued by the Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act. The court observed a lack of tangible material to support the conclusion that income had escaped assessment, thereby prohibiting any further steps by the tax authorities...
MSMED Act Would Not Be Applicable To CA Firms Appointed As ‘Special Auditors’ Under Section 142(2A) Of The Income Tax Act, 1961: Delhi High Court
The Delhi High Court has held that the provisions of MSMED Act, 2006 would not apply to a CA firm appointed as ‘Special Auditor’ under Section 142(2A) of the Income Tax Act (IT Act), 1961. The bench of Justice Prathiba M. Singh held that MSMED Act no applicability in cases of CA firms appointed under Section 142(2A) of the IT Act for the purpose of carrying out special audit as...
GST Not Payable On Out-Of-Court Settlement: AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that GST is not payable on the out-of-court settlement.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that there is no GST on the interest of 13% per annum awarded by the Tribunal for Arbitration Award as the principal supply itself is not taxable.The applicant is taking up Thermal Projects in various cities in...
CBIC Prohibits Import Policy Of The Pocket Lighters, Gas Fuelled, Non-Refillable
The Central Board Of Indirect Taxes and Customs (CBIC) has amended the import policy for pocket lighters that are gas-fueled and non-refillable.As per the existing policy, the import of Pocket lighters, gas-fueled, non-refillable, and refillable, was free.As per the revised policy, the import of pocket lighters that are gas-fueled, non-refillable, or refillable is prohibited. However, import...
Fair Price Shops Supplying Essential Commodities To Ration Card Holders Are Not Liable To Charge GST To The State Government: West Bengal AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that Fair Price Shops (FPS) supplying essential commodities, specifically Super Kerosene Oil (SKO), under the Public Distribution System (PDS) to ration card holders are not liable to charge GST to the State Government.The bench of Sarthak Saxena and Joyjit Banik has observed that Entry 11A of Notification No. 12/2017-Central Tax...
No Liability Of Knight Riders To Pay Service Tax On Coaching Service Provided In Relation To Sports: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Knight Riders are not liable to pay service tax on coaching services provided in relation to sports.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that coaching in the field of sports has been specifically excluded from the applicability of service...
No Case Of Tax Evasion Made Out As Goods Meant For Export Were Taken Back To The Factory For Repairs: Calcutta High Court
The Calcutta High Court has held that no case of tax evasion was made out as goods meant for export were taken back to the factory for repairs.The bench of Chief Justice T. S. Sivagnanam and Justice Uday Kumar has observed that as per the e-Way Bill, no tax was payable since the goods, which were owned by the appellants, were taken back to their factory at Ranchi for repairs. The goods...
Correctness Of Information Available Cannot Be Gone Into Prior To Issuance Of Notice U/S 148 Income Tax Act: Allahabad High Court
The Allahabad High Court has dismissed a writ petition challenging the validity of the order under Section 148A(d) of the Income Tax Act, 1961 and the consequential notice under Section 148 of the Act on the grounds that the correctness of the information based on assessee’s defense can be determined in the assessment proceedings under Section 148 of the Act. The scope of enquiry under...
Self-Assessment Of Assessee Not Rendered Malafide Merely Because It Was Based On A CETSTAT View Which Was Later Overturned : Supreme Court
The Supreme Court has upheld the decision of the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) by holding the demand for differential excise duty raised against the assessee, M/s Reliance Industries Ltd, as time barred.The court dismissed the contention that Reliance had deliberately suppressed and withheld material information and documents from...
Compensation Paid By Builder For Delay In Handing Over Possession Of Flat Is Part Of Work-In-Progress: ITAT Allows Deduction
The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that compensation paid by a builder for the delay in handing over possession of a flat should be considered part of work-in-progress. As a result, the ITAT allowed the deduction of the compensation. The case pertains to Mr. Jayant Hari Mulay, a promoter and builder who had purchased a plot of land for the construction...
Gujarat High Court Quashes Reopening Of Assessment Order And Notice In Land Acquisition Case, Rules Compensation Not Taxable As Capital Gains
The Gujarat High Court while quashing the reopening of an assessment order and notice issued to the petitioner in a land acquisition case, has ruled that compensation received for compulsory acquisition of land is not taxable as capital gains. While passing the above ruling, the division bench of Justices Ashutosh Shastri and C. Doshi underscored that the authorities' action was based...
Interest Is Payable Only If Wrongly Availed ITC Is Utilised: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has notified that interest is payable only if wrongly availed ITC is utilized.On the occasion of the six-year anniversary of the introduction of the GST, the CBIC explains that taxpayers are only liable to pay interest if they used an incorrectly claimed Input Tax Credit (ITC) to satisfy their GST due.A decision from the retrospective...