Unrealistic To Expect GST Return Filing Without Actual Commencement Of Business: Orissa High Court Directs Dept. To Process Licence Application

The Orissa High Court has held that the license application should not be rejected only because a GST return has not been filed yet, since it is unrealistic to expect that to happen without the actual commencement of its business.The division bench of Chief S. Muralidhar and Justice G. Satapathy has observed that unless the petitioner is issued a license and is able to commence its business,...

Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty

The Calcutta High Court has directed the refund of the penalty and held that the department was vacillating between Sections 67 and 68 of the GST Act, depending on whether the goods are in transit or in the godown.The bench of Justice Amrita Sinha has observed that initially the authority invoked the provision of Section 67 but thereafter shifted its stand and relied upon Section 68 read...

Purchaser Is Not Entitled To ITC On The Purchases Made From The Seller Who Had Discharged Its Tax Liability: AAR

The Punjab Authority of Advance Ruling (AAR) has held that the purchaser is not entitled to claim Input Tax Credit (ITC) on the purchases made by it from the seller, who had discharged its tax liability.The two-member bench of Varinder Kaur and Viraj Shayamkarn Tidke has observed that no registered person shall be entitled to take credit for any input tax in respect of any supply of goods...

An Order Is Not Prejudicial To The Interest Of Revenue U/S 263 If It Is Based On An Uncertain Issue Of Entitlement Of Treaty Benefit: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that an order by assessing officer on whether a particular entity is entitled to a treaty benefit or not is a highly contentious issue and cannot be considered to be erroneous and prejudicial to the interest of revenue under section 263 of Income Tax Act, 1961. The two-member bench of Saktijit Dey (Judicial member)...

Building And Fabricating Tipper Body If Chassis Is Owned, Supplied By The Customer Attracts 18% GST: Punjab AAR

The Punjab Authority of Advance Ruling (AAR) has held that the building and fabricating of a tipper body if the chassis is owned and supplied by the customer attract 18% GST.The two-member bench of Varinder Kaur and Viraj Shayamkarn Tidke has observed that 28% GST is payable on the activity of building and fabricating a Tipper Body and mounting the same by the applicant on the chassis owned...

Reversal of ITC At Midnight During Search And Seizure Operation Can't Be Treated As Voluntary Payment: Gujarat High Court Directs Refund

The Gujarat High Court has held that the reversal of input tax credit (ITC) at midnight during search and seizure operations can't be treated as a voluntary payment.The division bench of Justice Sonia Gokani and Justice Sandeep S. Bhatt has directed the department to reverse the ITC to the tune of Rs. 37,68,300 along with 6% interest.The petitioner is in the business of trading...

ITAT Upholds Income Tax Addition On Amount Received For Arbitration Settlement

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the income tax addition on the amount received for arbitration settlement from Indian Oil Infrastructure & Energy Services.The two-member bench of Kul Bharat (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) has observed that the assessee was engaged in the project only through its PE in India. In view...

NFAC Bound By The Decision Of Jurisdictional High Court: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the National Faceless Appeal Centre (NFAC) was bound by the binding decision of the jurisdictional high court, where the AO was situated.The two-member bench of N.V. Vasudevan (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that an appeal against the decision of the Agra ITAT would be before...

Personal Hearing To Be Granted In All Matters Prior To Finalisation Of Assessment: Madras High Court

The Madras High Court has held that personal hearings shall be granted in all matters prior to the finalization of assessments, except where the stand of the assessee is intended to be accepted by the department.The single bench of Justice Anitha Sumanth has observed that the officer has grossly erred in proceeding to finalize the assessment in violation of the principles of natural...

Who Is The Proper Authority To Decide IGST Refund? Bombay High Court Directs The Dept. To Decide

The Bombay High Court has directed the department to decide who has the proper authority to decide on an IGST refund.The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has noted that the customs authorities claimed that the GST authority is the proper officer for processing refund claims, whereas the GST authorities claim that it is the customs officer.The court directed...

AO Issued Income Tax Assessment Notice To Non-Existent Company: Calcutta High Court Imposes Cost

The Calcutta High Court has imposed a fine of Rs. 20,000 on the assessing officer for issuing the income tax assessment notice to the non-existent company."It also appears from the past record that in respect of another assessee, this court has imposed the personal cost of Rs. 10,000 upon the very same Assessing Officer, Bitan Roy, by order dated August 2, 2023," the bench of Justice...

Expenses Of Solid Waste Disposal Is An Accrued Liability As It Was Disposed At Temporary Site: ITAT Allows Claim Worth Rs. 7.77 Crores

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the assessee’s claim of Rs. 7,77,73,600 as a provision for expenses of solid waste disposal.The two-member bench of Siddhartha Nauthiyal (judicial member) and Annapurna Gupta (accountant member) has noted that the assessee had booked the expenses for the disposal of the waste at the permanent site commensurate to...