Tax
AOP Running Educational Institution Eligible For Exemption Under Section 10 (23C) (VI) Of The Income Tax Act, Rules ITAT
The ITAT Bench of Mumbai, consisting of members Kuldip Singh (Judicial Member) and Prashant Maharishi (Accountant Member), ruled that an unregistered Association of Persons (AOP), formed by an agreement merging two charitable Trusts, is eligible for exemption under section 10 (23C) (vi) of the Income Tax Act, 1961. The Assessee, an educational institution, formed as an AOP, filed...
TDS Collection U/S 194N Income Tax Act Sub Judice: Kerala High Court Stays Demand Notice Issued To State Co-operative Bank
The Kerala High Court on Friday stayed the demand notice issued by the Deputy Commissioner of Income Tax asking the State Co-operative Bank to pay the outstanding amount for the financial year 2019-20 in a plea moved by the said Bank.Justice Bechu Kurian Thomas issued the interim order considering that the matter relating to the collection of Tax Deduction at Source (TDS) on interests by...
Supreme Court Allows Adjustment Of Installments Made Under Income Declaration Scheme For Computing Tax Liability
A Bench of Supreme Court, consisting of Justices U.U. Lalit and P.S. Narasimha, allowed the adjustment of installments made under the "Income Declaration Scheme, 2016" in computing the tax liability of the Assessee for the relevant assessment years. The Assessee, having made a declaration under the "Income Declaration Scheme, 2016", had made two installments of tax with respect to...
CBDT Circular Denying Tax Benefit Under MFN Clause Transgresses Income Tax Act, Rules ITAT
The ITAT Bench of Pune, consisting of members R.S. Sayal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), has held that the CBDT Circular, issued in February 2022, requiring a separate notification by the Government of India for importing the benefit of the Most Favoured Nation (MFN) clause into a Double Taxation Avoidance Agreement (DTAA), transgressed the...
Google Gets A Cut Of 8% Withholding Tax On Its Remittance
The Delhi High Court Bench, comprising of Justices Manmohan and Naveen Chawla, have directed Google Cloud India Private Ltd. (GIC) to withhold only 8% tax while making payment to Google Asia Pacific Pte Ltd, a Singapore based subsidiary of Google LLC. The court reaffirmed that the said order was only an interim measure and it should not be treated as a non-compliance with the impugned...
Reassessment Notice U/S 148 Of Income Tax Act Issued Against A Dead Person Is Null & Void: Delhi High Court
The Delhi High Court recently held that a reassessment notice issued under Section 148 of the Income-tax Act, 1861 against a dead person is null and void. A Division Bench of Justices Navin Chawla and Manmohan relied on the case of Savita Kapila v. Assistant Commissioner of Income Tax to answer the question of the validity of notice and consequent proceedings against a dead person. In the...
Electronic Credit Ledger Can Be Blocked Under GST Rules 2017 Only If Credit Balance Is Available: Gujarat HC Orders Authorities To Refund ₹20L
The Gujarat High Court has recently held that the power prescribed under Rule 86A of the GST Rules 2017 to block an electronic credit ledger can be exercised only when there is availability of credit in such ledger, alleged to be ineligible."Condition precedent for exercise of power under Rule 86A of the GST Rules is the availability of credit in the electronic credit ledger which is...
Rajasthan VAT Act Enacted To Provide Remedy For Loss Of Revenue & Not To Punish Offender For Committing Economic Offence: High Court
The Rajasthan High Court, Jaipur has observed that provisions of Rajasthan Value Added Tax Act, 2003 have been enacted to provide remedy for loss of revenue and not to punish the offender for committing economic offence and, therefore, mens rea is not an essential ingredient for contravention of such provision. The court added that breach would attract levy of penalty whenever the...
"Condition Of Income Having Escaped Assesment Not Satisfied"- Bombay High Court Quashes IT Notice Against Tata Son Ltd For 2003-04
In a judgement earlier this month, the Bombay High Court quashed a notice issued by Income Tax authorities for the financial year 2003-2004 against Tata Sons Ltd – holding company of Tata Group's Companies.A division bench Justices KR Shriram and NJ Jamadar observed that the notice did not justify the reasons to show that income had escaped assessment on account of failure on the part of...
Taxation Relaxation Act Doesn't Sanction Applying Repealed Provisions : Madras HC Sets Aside Reassessment Notices U/S 148 Of Old Income Tax Act
The Madras High Court has recently set aside a number of reassessment notices issued under the 1961 Income Tax Act by iterating that the Taxation Relaxation Act, 2020 only extends the period of limitation and not the application of repealed provisions in light of the amended provisions effective from 1st April, 2021.The first bench of Acting Chief Justice Munishwar Nath Bhandari and Justice...
Building Owner Can Claim GST Exemption If Residential Premises Leased Out Are Used As Hostel: Karnataka High Court
The Karnataka High Court has held that an owner of a building can claim tax exemption under the Goods and Services Act (GST) if the residential premises leased out are used as a hostel to house students and working professionals. A division bench of Justice Alok Aradhe and Justice M I Arun while allowing the petition filed by one Taghar Vasudeva Ambrish said, "The service provided by...
'Prima Facie Input Tax Credit Wrongly Availed Exceeds Five Crores': Chennai Court Dismisses Bail Plea Of Person Accused Of Tax Evasion
The accused have admitted to have committed the offence...The evidentiary value of the statement obtained under Section 70 of TNGST Act has to be dealt with during the course of trial, the court clarified.