Tax
Allahabad High Court Stays GST Demand On Payment Of Royalty To Conduct Mining Activity
The Allahabad High Court bench of Justice Saumitra Dayal Singh has stayed the GST demand on payment of royalty to conduct mining activity. The petitioner/assessee has assailed the appeal order. Since the Tribunal was yet to be constituted, the writ petition was entertained. The First Appeal Order arising from the earlier order under Section 73 of the U.P. GST Act, 2017 was...
Consideration Paid For Purchase Of Advertisement Space Does Not Amount To 'Royalty' Under Income Tax Act: ITAT Chennai
The Chennai Bench of ITAT has ruled that consideration paid for purchase of advertisement space does not amount to 'royalty' under the Income Tax Act, 1961. The Bench, consisting of members Mahavir Singh (Vice President) and Dr. M. L. Meena (Accountant Member), held that the Finance Act, 2016 recognizes providing advertising space as a 'specified service', which is subject...
Credit Worthiness Of The Creditor And Genuineness Of Transaction Explained By The Assessee: Bombay High Court Quashes Re-assessment Notice
The Bombay High Court has quashed the reassessment notice. The assessee explained the credit worthiness of the creditor and the genuineness of the transaction.The division bench of Justice K.R. Shriram and Justice N.R. Borkar observed that the re-opening proposed was purely based on a change of opinion. The assessing officer was also satisfied with the credit worthiness and...
Selection Of Returns And Procedure For Complete Scrutiny During The F.Y. 2022-23: CBDT Issues Guidelines
The Central Board of Direct Taxes (CBDT) has issued guidelines for selecting returns and procedures for full scrutiny during the financial year 2022–23. The CBDT said that, subject to exclusion, returns submitted for the assessment year applicable to the prior year in which a survey was performed under section 133A of the Income Tax Act The books of accounts, documents, etc. which...
Offices Not To Issue Reassessment Notices To Small Taxpayers, Instructs CBDT
In the light of the Supreme Court's judgement saving 9000 reassessment cases, the Central Board of Direct Taxes (CBDT) has issued instructions directing the officer not to issue reassessment notices to small taxpayers if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than Rs. 50 lakhs. The CBDT has directed that information...
Bonafide Mistake In Selection Of Wrong ODC Vehicle Type While Generating E-Way Bill: Gujarat High Court Quashes Detention Order
The Gujarat High Court has quashed the detention order as there was a bonafide mistake in the selection of the wrong ODC vehicle type while generating the e-way bill.The division bench of Justice J.B. Pardiwala (as then was) and Justice Nisha M. Thakore observed that the goods were in transit with all the necessary documents, including the E-way bill generated from the GST portal....
Sufficiency Of The Correctness Of Material Is Not To Be Considered While Issuing Reassessment Notice: Delhi High Court
The Delhi High Court held that the court was only required to see whether there was prima facie some material on the basis of which the department could reopen the assessment. The sufficiency of the correctness of the material cannot be considered while issuing the reassessment notice. The division bench of Justice Manmohan and Justice Dinesh Kumar Sharma observed that the courts...
Telangana Govt. Notifies One-Time Settlement Scheme For Pending Tax Cases
The Telangana government has introduced the Telangana State One-Time Settlement Scheme 2022 to realise the locked up revenue. As per the Commissioner of Commercial Taxes, Telangana, Hyderabad, there is an arrear amount of around Rs. 3000 crores pending in various stages of litigation and that the amount is not readily recoverable. The state government has introduced a...
GSTN Issues Advisory On Reporting 6% Rate In GSTR-1
The Goods and Service Tax Network (GSTN) has issued an advisory on reporting 6% rate in GSTR-1.On some commodities, a new 6% IGST or 3% CGST, and 3% SGST tax rate has been implemented. The GST interface is being updated to accommodate a 6% rate in GSTR-1. As a temporary measure, taxpayers who have to report goods at this rate may do so by reporting the entries in the 5% heading and...
Subscription Money Received In Advance By DTH Operators Is Taxable Only When Services Are Provided To The Subscribers: Chennai ITAT
The Chennai Bench of ITAT has ruled that subscription money received in advance by the DTH operators is not taxable. The Bench, consisting of members V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member), held that the subscription money received by DTH operators is taxable only when the said amount is accrued to them, i.e., when the services are rendered by...
Transition Of ITC cannot Be Denied Merely For Technical Difficulties: Madras High Court
The Madras High Court held that in case the department is unable to permit the filing of TRAN-1 belatedly, they have to credit the corresponding amount in the electronic cash register provided that the credit remained unutilized on the cut-off date.The single judge bench of Justice C. Saravanan observed that since the input tax credit is equivalent to cash meant to be used for...
KVAT Registration Once Cancelled Has To Be Published In Two Leading Daily Newspapers: Kerala High Court
The Kerala High Court ruled that once a Kerala Value Added Tax (KVAT) registration is cancelled, it must be published in at least two major daily newspapers, and the dealer must be notified in accordance with Form No.5 B.Then only will the cancellation of registration be effective.The division bench of Justice S.V. Bhatt and Justice Basant Balaji observed that as per Rule 19 of KVAT...