Tax
Order Prescribing Conditions Of Provisional Release Is Too Harsh: CESTAT Directs Release Seized Goods
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the order prescribing conditions of provisional release was too harsh and the assessee has already paid duty amounting to Rs. 1,18,94,536.The bench of Dr. Suvendu Kumar Pati (Judicial Member) and Sanjiv Srivastava (Technical Member) modified the conditions in the order of provisional...
Entitlement Of ITC After Cancellation Of GST Registration Can Be Considered During Revocation: Rajasthan High Court
The Rajasthan High Court has held that the assessee is entitled to lodge an ITC claim when the department considers the issue of revocation of GST registration cancellation.The bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar has directed the firm to file an application for restoration of its GST registration before the competent authority, which shall consider and decide...
Material Triggering Reassessment Must Be Furnished To The Assessee: Bombay High Court
The Bombay High Court has held that providing information to the assessee without furnishing the material based upon which the information is provided would render an assessee handicapped in submitting an effective reply to the show cause notice.The bench of Justice Dhiraj Singh Thakur and Justice Valmiki Sa Menezes has observed that the reassessment proceedings initiated are unsustainable on...
Tax Deposited During Search Can't Be Retained By Department Till Adjudication Of Notice: Punjab and Haryana High Court
The Punjab and Haryana High Court has held that deposits of tax during searches cannot be retained by the department until the adjudication of the notice.The bench of Justice Ritu Bahri and Justice Kuldeep Tiwari has directed the department to return the amount of Rs. 2.54 crores to the petitioner along with simple interest at the rate of 6% per annum from the date of deposit until the payment...
Functionality For Bank Account Validation Is Now Integrated With The GST System: GSTN
The Goods and Service Tax Network (GSTN) has issued an advisory on bank account validation.The functionality for bank account validation is now integrated with the GST system.The feature is introduced to ensure that the bank accounts provided by the taxpayer are correct.The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO...
Employee Remuneration, Legal Expenses, Board Meeting Expenses etc. , Can’t Be Attributable To Interest From FDs: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), while refusing to allow the income tax deduction, has held that employee remuneration, salary, legal expenses, board meeting expenses, and director sitting fees cannot be attributable to the interest earned from the fixed deposits.The bench of C. M. Garg (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has observed that...
Service Tax Not Leviable On Incentives For Achieving Sales Target: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not leviable on incentives for achieving sales targets.The two-member bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has relied on the decision of the CESTAT in the case of M/s DD Motors vs. Commissioner of Central Excise, Uttar Pradesh,...
Allocation Of Area Development Charges By The State Government Cannot Be Treated As Consideration Towards A Service: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the allocation of area development charges by the state government cannot be treated as consideration for service.The bench of B. R. R. Kumar (Accountant Member) has observed that for a service to be taxable, it is necessary that there be a service provider and service recipient relationship...
Amount Declared As Turnover Can’t Be Concealed Income: ITAT
The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the amount is declared as turn-over, it cannot be called concealed income and be taxed twice on the same amount.The bench of Anikesh Banerjee (a judicial member) has observed that the AO has no right to calculate sales on a hypothetical basis, ignoring the evidence submitted during the course of...
Assessee Explained The Source Of The Excess Stock Found During The Course Of Survey: ITAT Deletes Addition
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee has explained the source of the excess stock found during the course of the survey.The bench of Aby T. Varkey (Judicial Member) and Manjunatha (Accountant Member) has observed that when the assessee has explained that the source of excess stock found during the course of the survey is income generated...
Section 10AA Deduction Can’t Be Denied Merely Not Receiving Convertible Foreign Exchange On The Deemed Exports: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Section 10AA deduction cannot be denied merely on the reasoning that the assessee did not receive the convertible foreign exchange on the deemed exports.The bench of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that there was no condition applicable for the Assessment...
Loss On Confiscation Of Smuggled Items By DRI Officials Cannot Be Claimed As ‘Business Loss’ Under Income Tax Act: Supreme Court
The Supreme Court bench comprising Justices M. R. Shah and M.M. Sundresh has set aside the Rajasthan High Court’s order of allowing the loss claimed by the assessee on account of confiscation of silver bars by the Customs department, as ‘business loss’ under Section 37(1) of the Income Tax Act, 1961. Justice M. R. Shah reckoned that the assessee was carrying on a legitimate...