Burden of proof on assessee to establish that non-filing of ITR was not willful; HC upholds prosecution

INCOME TAX : Where petitioner failed to file timely return and prosecution was initiated under sections 276CC and 276C, then a presumption as to culpable mental status of assessee, can be drawn under section 278E, and therefore, it would be for assessee to establish that failure was not wilful

from www.taxmann.com Latest Case Laws https://ift.tt/3pRHNse

Refund of unutilised CENVAT credit allowed on closure of manufacturing unit: CESTAT

EXCISE/ST/VAT : Refund on closure of manufacturing unit is not prohibited

from www.taxmann.com Latest Case Laws https://ift.tt/3nGx6G0

Interest income can’t be taxed under head PGBP if there was no business compulsion to make bank deposits: ITAT

INCOME TAX : Where for assessment year 2012-13 Assessing Officer being of view that assessee, a real estate developer, had not set up his business at all during year, disallowed business expenditure claimed by it, since assessee had started acquiring lands in 2007 itself, it could be concluded that business of assessee had already been set up, and, thus, expenses incurred in running business of assessee was allowable u/s 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315588/interest-income-can’t-be-taxed-under-head-pgbp-if-there-was-no-business-compulsion-to-make-bank-deposits-itat.aspx

Internal Committees of bank couldn't declare petitioner a 'wilful defaulter' without reasons; devoid of principles of natural justice: HC

FEMA, BANKING amp; INSURANCE : Where Default Identification Committee of bank declared petitioner as wilful defaulters and same was confirmed by Review Committee, since decision of both committees was devoid of reasons, in as much representation of petitioner had not been dealt with at all, Committees violated principles of natural justice and therefore, decision of both committees was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3BxCtMC

AO was bound to consider issue raised by assessee on cause of delay in payment of advance tax raised during reassessment

INCOME TAX : Where specific issue related to cause of delay in payment of advance tax was raised by petitioner pursuant to issue of notice under section 148, revenue was bound to consider said issue and pass reasonable order as to whether petitioner was entitled to waiver of interest charged under section 234B or not

from www.taxmann.com Latest Case Laws https://ift.tt/3vWHflA

Siemen's policy to share passwords of MRI and CT Scan machines after payments of fees isn't anti-competitive: CCI

COMPETITION ACT : Where informants purchased MRI and CT machines from OP which were password protected and informants alleged that OP was not sharing passwords with them and, thus, they were unable to get machines serviced from outside, in view of fact that, informants could have obtain password from OP against payment of fee but they, did not take any steps to obtain same, no case of contravention of provisions of section 4 was made out against OP

from www.taxmann.com Latest Case Laws https://ift.tt/3blxEeR

Notice in SLP filed against ruling that contribution towards superannuation fund allowable though said fund was unapproved

INCOME TAX : Notice issued in SLP filed against order of High Court that contribution made towards superannuation fund was to be treated as business expenditure and, thus, same was to be allowed as deduction under section 37(1) even though said fund was unapproved under Employee's Provident Funds Act, 1952

from www.taxmann.com Latest Case Laws https://ift.tt/2ZttAGC

Matter remanded to decide whether sum paid to KIADB to acquire land include service charges attracting TDS liability: HC

INCOME TAX : Where assessee was held to be an 'assessee in default' as it had entered into an agreement with Karnataka Industrial Area Development Board (KIADB) for acquiring land for implementation of Bangalore Metro Rail Project and made payment, but did not deduct tax at source, in view of fact that Liability to deduct tax would arise only if payment was made towards service charges by assessee which attracts tax liability, matter was to be remanded back to Tribunal to determine said aspect

from www.taxmann.com Latest Case Laws https://ift.tt/3pP7Vnw

Debit note issued by importer in respect of import of machines is valid document for availing credit: CESTAT

EXCISE/ST/VAT : Debit note issued by importer in respect of import of machines and CVD paid thereon can also be valid document for availing credit

from www.taxmann.com Latest Case Laws https://ift.tt/3bjNdUn

Exp. incurred on converting land from leasehold to freehold to be treated as cost of improvement: ITAT

INCOME TAX : Where assessee owner/inherent-lessee of a leased land entered into an agreement to sell said land and there was a clear condition in agreement to sale that said land should be converted by assessee from leasehold into freehold to perfect ownership title of buyer in land and agreed sale consideration was inclusive of amount of freehold conversion charges,

from www.taxmann.com Latest Case Laws https://ift.tt/3nEuLeH

Zee v. Invesco: Bombay HC restrains Invesco from calling and holding EGM

COMPANY LAW : Zee filed instant writ against its investor 'Invesco' holding significant stakes attempting to convene general meetings of shareholders through which they seek to replace certain directors on existing boards - According to Zee, proposed resolutions in requisition Notice are directly contrary to Companies Act's provisions regarding directorships - However,

from www.taxmann.com Latest Case Laws https://ift.tt/2XS9wx6

Bombay HC allows ZEE’s injunction plea; restrains Invesco from calling and holding EGM to remove ZEE’s MD

COMPANY LAW : Zee filed instant writ against its investor 'Invesco' holding significant stakes attempting to convene general meetings of shareholders through which they seek to replace certain directors on existing boards - According to Zee, proposed resolutions in requisition Notice are directly contrary to Companies Act's provisions regarding directorships - However,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317747/bombay-hc-allows-zee’s-injunction-plea-restrains-invesco-from-calling-and-holding-egm-to-remove-zee’s-md.aspx

AO can’t treat commission income as unexplained income without considering details submitted by assessee

INCOME TAX : Where assessee explained that he was maintaining all regular books of account and other records for commission income and he had also incurred certain expenses, which could be verified and ledger account of commission income was furnished, along with party wise details and available addresses and amount of commission, there was no justification in treating commission income as unexplained cash credit

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317332/ao-can’t-treat-commission-income-as-unexplained-income-without-considering-details-submitted-by-assessee.aspx

ITAT deleted additions made for non-deduction of tax as payee has already paid tax on income

INCOME TAX : Where Assessing Officer noted that assessee, a co-operative society had made payment to a third party as rent but did not deduct TDS from said payment and he invoked section 40(a)(ia), since assessee submitted that recipient of impugned payment had included said receipt in its total income and paid taxes and hence, there was no lawful reason to invoke provision of section 40(a)(ia) and had filed certificate of chartered accountant certifying same,

from www.taxmann.com Latest Case Laws https://ift.tt/3jGXjD1

ITAT restores application for registration of charitable trust rejected by CIT without considering details filed by trust

INCOME TAX : Where Commissioner (Exemption) rejected application of assessee by taking view that assessee-trust failed to file documentary evidence about genuineness of activities in consonance with object, since assessee-trust had furnished requisite detail and instead of referring all those documentary evidences, he rejected application of assessee-trust, it would be appropriate to set aside impugned order of Commissioner (Exemption) and restore matter back to file of Commissioner (Exemption)

from www.taxmann.com Latest Case Laws https://ift.tt/2ZHib6m

No explanation is needed from assessee if gold found during search was below 500 grams per married woman : ITAT

INCOME TAX : Where gold seized during search proceeding was below limit prescribed by CBDT in Instruction No. 1916, dated 11-5-1994, department ought not to have seized such gold and addition under section 69A made in hands of assessee treating said gold as unexplained was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/2ZAx6iI

Supreme Court criticizes the Government for not appointing High Court Judges

EXCISE/ST/VAT : Where vide impugned order in writ petitions High Court had only issued notice to Government and parties to file Counter Affidavit and response, Apex Court would not intervene

from www.taxmann.com Latest Case Laws https://ift.tt/3Cq1sme

CIT, while revising a particular order, can't revise assessment order of another AY without pointing out any error: ITAT

INCOME TAX : Where Commissioner invoked section 263 by finding fault with assessment order passed for earlier assessment year 2009-10, since he was revising assessment order passed for assessment year 2010-11, and he had not actually pointed out any error in said assessment order, order passed by Commissioner could not be sustained

from www.taxmann.com Latest Case Laws https://ift.tt/2XRlJCb

Delhi HC sets aside order as AO didn't pass draft assessment order before passing final order

INCOME TAX : Where no prior show cause notice as well as draft assessment order had been issued before passing final assessment order under section 143(3), there was a violation of principles of natural justice as well as mandatory procedure prescribed under Faceless Assessment Scheme, hence, impugned assessment order was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3nTzMQX

Multi-Commodity Exchange can constitute an Arbitral Tribunal afresh if proceedings couldn’t be concluded timely: HC

COMPANY LAW/ARBITRATION ACT : By virtue of Bye-laws of Multi-Commodity Exchange of India Ltd., Exchange is always entitled to legitimately constitute a Arbitral Tribunal afresh if an attempt fails or proceedings could not be concluded within prescribed time

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317109/multi-commodity-exchange-can-constitute-an-arbitral-tribunal-afresh-if-proceedings-couldn’t-be-concluded-timely-hc.aspx

Interest income taxable under head 'other sources' if there was no business compulsion for making bank deposits: ITAT

INCOME TAX : Where for assessment year 2012-13 Assessing Officer being of view that assessee, a real estate developer, had not set up his business at all during year, disallowed business expenditure claimed by it, since assessee had started acquiring lands in 2007 itself, it could be concluded that business of assessee had already been set up, and, thus, expenses incurred in running business of assessee was allowable u/s 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3Cu9D1a

Draft Policy on General Authorisation for Export of Chemicals and related equipment

The Government has issued draft policy on General Authorisation for Export of Chemicals and related equipment. It is circulated for public/industry comments by November 5th, 2021 which can be sent to scometdgft@nic.in.

from taxmann.com News https://ift.tt/3CjZJPf

It can’t be interpreted that assessee waived off hearing right if he submitted written submission before CIT(A): ITAT

INCOME TAX : Where there was nothing available on record to show that right to be heard had been waived off by assessee by merely making available written submissions to First Appellate Authority, impugned order passed without granting right to be heard, was to be set aside directing assessee to place full facts and evidence along with supporting claims before First Appellate Authority

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317023/it-can’t-be-interpreted-that-assessee-waived-off-hearing-right-if-he-submitted-written-submission-before-cita-itat.aspx

Refund can't be denied if Cenvat Credit reversed after filing refund application but before SCN: CESTAT

EXCISE/ST/VAT : Debit of refund claim amount in the Cenvat Credit account suo-moto before adjudication is sufficient compliance of condition 2(h) of Notification No. 27/2012-CE. Refund cannot be rejected

from www.taxmann.com Latest Case Laws https://ift.tt/3beOsnx

Madras HC deleted additions made by AO purely based on estimation without any evidence

INCOME TAX : As per sub-section (3) of section 35D, if aggregate amount of expenditure referred to in sub-section (2) exceeds an amount calculated at 2 ½ per cent of either cost of project or capital employed in business of assessee, excess shall be ignored for purpose of computing deduction allowable under sub-section (1) of section 35D and, therefore, where 2 ½ per cent of Rs. 6614.96 lakhs,

from www.taxmann.com Latest Case Laws https://ift.tt/2XPKKhh

Excess share of land received by assessee in executing of partition deed with co-owner can’t be taxed u/s 28: ITAT

INCOME TAX : Where assessee-firm purchased a land with co-owner and it received an excess share of land in partition of land with co-owner, since said land was purchased as capital asset by assessee and co-owner and it remained as capital asset till its partition and no business activity was carried on same by assessee or co-owner,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316618/excess-share-of-land-received-by-assessee-in-executing-of-partition-deed-with-co-owner-can’t-be-taxed-us-28-itat.aspx

No concealment penalty if an amount is excluded from head PGBP and taxed as unexplained income: ITAT

INCOME TAX : Where in assessment order an amount was excluded from head 'profits and gains of business and profession' and same amount was added under section 68, thereby resulting in assessed income of assessee to be same as returned income, allegation of furnishing of inaccurate particulars of income could not be said to have resulted in tax sought to be evaded by assessee, hence, levy of penalty was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3ClqWRV

SC issued notice in SLP filed against order that no TDS u/s 194H attracted on discounts given on sale of prepaid SIM cards

INCOME TAX : Notice issued in SLP filed against order of High Court that no TDS provisions under section 194H were attracted on discounts given by assessee-telecommunication company on sale of prepaid SIM cards to distributors

from www.taxmann.com Latest Case Laws https://ift.tt/3Bk0oPJ

AO to consider assessee’s request seeking extension of time to supply doc. because of Pandemic Situations: HC

INCOME TAX : Where revenue passed impugned assessment order making addition of additional stock found during survey without granting extension of time sought by assessee to supply documents in view of continuous pandemic situations and lock down procedure issued by District Administration, same was in violation of principles of natural justice and matter was to be remanded back for reconsideration giving final opportunity of two weeks

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316443/ao-to-consider-assessee’s-request-seeking-extension-of-time-to-supply-doc-because-of-pandemic-situations-hc.aspx

Remission of duty or exemption not available for pilferage of goods in Customs Area after out of charge order was passed: CESTAT

EXCISE/ST/VAT : Duty exemption under Section 13 of Customs Act, 1962 or remission of duty under Section 23 ibid. not available in case of pilferage of goods after out of charge order was passed; liability to pay duty would lie on importer and not custodian

from www.taxmann.com Latest Case Laws https://ift.tt/3nv4oYD

SC issued notice in SLP filed against HC’s ruling that discount on issue of ESOP was an allowable deduction

INCOME TAX : Notice issued in SLP filed against order of High Court that discount on issue of ESOP was an allowable deduction under section 37(1) as same was to be treated as remuneration to employees for their continuity of service

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316372/sc-issued-notice-in-slp-filed-against-hc’s-ruling-that-discount-on-issue-of-esop-was-an-allowable-deduction.aspx

Series of adjournments granted to assessee indicates that hearing opportunity was granted; assessment order valid

INCOME TAX : Where petitioner had challenged assessment order on ground of violation of principle of natural justice by department by not giving adequate and effective opportunity of hearing to petitioner, since it was established from record that series of adjournments were granted on prayer of petitioner from time-to-time and, thus, sufficient opportunities of hearing were given to petitioner, there was no violation of principles of natural justice in passing said assessment order

from www.taxmann.com Latest Case Laws https://ift.tt/30ScNh2

No ST on amount paid for secondment of service engineers from foreign companies who deputed its employees

EXCISE/ST/VAT : Where agreement was entered into for secondment of service engineers from foreign companies to appellant company and from terms of agreement it was clear that parent company had deputed its employees to work in appellant's factory for doing after-sales work and other related works, thus, there being employee-employer relationship, amounts paid to foreign companies would not be liable to service tax under category of 'manpower recruitment or supply agency service'

from www.taxmann.com Latest Case Laws https://ift.tt/3EfFeDY

Police department providing arms amp; security guards to PSUs amp; Govt. dept. not covered under security agency : CESTAT

EXCISE/ST/VAT : Police department which is an agency of State Government cannot be considered to be a person engaged in business of running security services, thus, providing arms, security guards to public sector banks/undertakings and Government departments by Police department under section 13 of Police Act, 1861 on collection of actual expenditure/cost is not covered by definition of security agency under section 64(94) of Finance Act, 1994

from www.taxmann.com Latest Case Laws https://ift.tt/3nIq2Jd

Delhi HC set-asides faceless assessment order as time frame provided to assessee was too short to respond to SCN

INCOME TAX : Where time frame provided to assessee to respond to show cause notice-cum-draft assessment order was far too short and having regard to fact that pandemic was raging in city at that juncture, impugned assessment order and consequential notices were to be set aside with liberty to revenue to pass a fresh assessment order and consequential orders, if any, after considering reply filed by assessee

from www.taxmann.com Latest Case Laws https://ift.tt/2XGRX30

No grounds for interfering with impugned order of NCLT as reasonable relief granted to appellant: NCLAT

COMPANY LAW : Where despite a case of oppression and management was not successfully established by appellant-director/shareholder of company, NCLT, though dismissed said petition but in an act to provide succor to appellant, had ordered that appellant be provided a flat and monthly salary of Rs. 75 thousand and certain other perquisites, which had been complied by respondents, said were reasonable relief and there were no grounds for interfering with impugned order of NCLT

from www.taxmann.com Latest Case Laws https://ift.tt/2ZuyAuR

Lifting of provisional attachment without providing reasonable opportunity to revenue is not justified: HC

INCOME TAX : Where pursuant to a search conducted upon a group to which assessee belonged, bank deposits of assessee were provisionally attached during pendency of investigation and High Court passed an interim order lifting said attachment, since no reasonable opportunity was afforded by High Court to department to place their submission on record in form of counter affidavit before lifting such attachment order, impugned order was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3vDEeqk

No reassessment on info. which were culled out from miscellaneous records submitted during original assessment: HC

INCOME TAX : Where Assessing Officer sought to reopen assessment in case of assessee on ground that during scrutiny assessment, details regarding professional receipts, excess investment and investment in pursuance of house property remained unexplained, however, these materials were culled out from miscellaneous records relating to assessee,

from www.taxmann.com Latest Case Laws https://ift.tt/2ZqmL98

Carbonated beverage containing water mixed with lesser quantity of fruit juice classifiable under CTH 2202 99 20: CESTAT KOLKATA

CUSTOMS : Carbonated beverage containing water mixed with lesser quantity of fruit juice, both carbonated beverages and fruit juices having equal importance, classifiable under Tariff item 2202 99 20 of Customs Tariff

from www.taxmann.com Latest Case Laws https://ift.tt/3pxaoTc

Customs tariff is only based on HSN but not identical with it; in case of conflict, Customs Tariff would prevail over HSN: CESTAT

CUSTOMS : Carbonated beverage containing water mixed with lesser quantity of fruit juice, both carbonated beverages and fruit juices having equal importance, classifiable under Tariff item 2202 99 20 of Customs Tariff

from www.taxmann.com Latest Case Laws https://ift.tt/3jwJ1VD

Service tax liability of creditors to be reduced on pro rata basis as per Resolution Plan for settlement of creditor’s claim: HC

EXCISE/ST/VAT : When the Resolution Plan provides for settlement of operational creditor's claim at 20.5% of the outstanding amount and credit taken on amount of service tax paid, reversed; service tax liability of creditors ought to be reduced on pro rata basis, amount already recovered should be appropriated and excess amount of service tax must be refunded

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317244/service-tax-liability-of-creditors-to-be-reduced-on-pro-rata-basis-as-per-resolution-plan-for-settlement-of-creditor’s-claim-hc.aspx

No ST on works contract services provided to Rajasthan Rajya Vidyut Prasaran Nigam Ltd. for transmission amp; distribution of electricity : CESTAT

EXCISE/ST/VAT: Works contract services, provided by assessee to Rajasthan Rajya Vidyut Prasaran Nigam Ltd., a State PSU for transmission and distribution of electricity being in non-commercial nature, was exempt under Notification No. 25/2012-ST

from www.taxmann.com Latest Case Laws https://ift.tt/2XC5kS0

NCLT allows ‘Future Group’ to hold meeting of creditors to seek approval for scheme of arrangement

COMPANY LAW : Where Future Group's transferor companies and Reliance Group's transferee companies filed first motion application under section 230 seeking an order to hold meetings of creditors and/or class of creditors, members and/or class of members to consider and approve scheme, application was to be allowed as it is well within rights of NCLT to allow applicants to hold meeting of various stakeholders, creditors etc.,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317608/nclt-allows-‘future-group’-to-hold-meeting-of-creditors-to-seek-approval-for-scheme-of-arrangement.aspx

HC remanded matter back as AO rejected application for waiver of interest without affording hearing opportunity: HC

INCOME TAX : Where assessee made application for waiver of interest under section 220(2A), but without affording opportunity of hearing to assessee, said application was rejected by Commissioner only on basis of report of Assessing Officer, matter was to be remanded back

from www.taxmann.com Latest Case Laws https://ift.tt/2Zas4sO

CESTAT set aside order rejecting refund of ST paid on ‘works contract’ and ‘maintenance of sub-stations’ service

EXCISE/ST/VAT : Retrospective effect of exemption as per Notification No. 9/2016 - ST, dated 1-3-2016 is applicable to electrical works executed and maintenance undertaken, by assessee for Goa State Industrial Development Corporation (GSIDC) and Goal Medical College (GMC)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317573/cestat-set-aside-order-rejecting-refund-of-st-paid-on-‘works-contract’-and-‘maintenance-of-sub-stations’-service.aspx

ITAT deleted sec. 68 additions as assessee produced various details to prove identity and creditworthiness of parties

INCOME TAX : Where assessee-company received an unsecured loan from three parties, in view of facts that assessee had produced various details such as financial statements and bank statements of creditors and their confirmation letters to prove transactions and, further, all transactions were routed through proper banking channel, impugned addition made on account of said unsecured loan received by assessee was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/2XDG1iD

European Authorities to widen Amazon antitrust probe after Reuters story: Labour Union

A worldwide trade union for the services industry requested European antitrust authorities to expand their investigation into Amazon.com Inc to see if the Company was involved in manufacturing counterfeit items and manipulating search results on its platform.

from taxmann.com News https://ift.tt/3BalPlT

Refund of excise duty already paid by industrial units in North East can’t be said to be paid erroneously: Gauhati HC

EXCISE/ST/VAT : Where Government of India vide Notification No. 20/2007, dated 1-4-2007 had declared that excise duty was not liable to be paid by manufacturers who had set up new industrial units in North East which had commenced their commercial production on or before 1-4-2007 and petitioner's industrial units,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317575/refund-of-excise-duty-already-paid-by-industrial-units-in-north-east-can’t-be-said-to-be-paid-erroneously-gauhati-hc.aspx

SLP granted against ruling that CIT can’t initiate sec. 263 revision on matter which was never subject to order of AO/CIT(A)

INCOME TAX : SLP granted against impugned order of High Court holding that where issues with regard to adding provision for NPA, provision for standard advances and bad investments written off while computing book profits under section 115JB were neither subject matter of Assessing Officer's order under section 143(3) nor subject matter of appeal before Commissioner (Appeals) or considered in order of Commissioner (Appeals),

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316201/slp-granted-against-ruling-that-cit-can’t-initiate-sec-263-revision-on-matter-which-was-never-subject-to-order-of-aocita.aspx

Wilful breach of undertaking given to Court would tantamount to Contempt of Court : Apex Court

CONTEMPT OF COURT ACT : SLP dismissed against impugned order of High Court holding that where director's of company got court's permission for deferment of repayment of loan amount by giving undertakings that they would deposit 25 per cent of notice amount in three instalments, but cheque deposited by them were dishonoured, they breached undertakings given and thus, guilty of contempt of court

from www.taxmann.com Latest Case Laws https://ift.tt/3pntVWg

No disallowance without finding was recorded that exp. claimed by assessee was related to earning tax-free income : HC

INCOME TAX : Section 14A read with rule 8D is not applicable to assessment year 2002-03; where no finding was recorded that expenditure claimed by assessee was de facto related to earning of tax free income of dividend received from subsidiary company, revision of assessment to disallow said expenditure was erroneous

from www.taxmann.com Latest Case Laws https://ift.tt/3m1kAkW

CIT can’t deny sec. 12AA registration on grounds not related to object amp; genuineness of trust’s activities : ITAT

INCOME TAX : While granting registration to a charitable trust or institution, Commissioner is supposed to examine whether objects of trust are charitable or not and when genuineness of activities is not in doubt, Commissioner has no jurisdiction to refuse registration under section 12AA on any irrelevant ground

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317001/cit-can’t-deny-sec-12aa-registration-on-grounds-not-related-to-object-amp-genuineness-of-trust’s-activities-itat.aspx

Intermediary Service provided to foreign holding company is export of service; refund of ST wrongly paid is allowed

EXCISE/ST/VAT : Where appellant-company provided service (assistance in procurement of goods) to its holding company located in Hong Kong on its own account, such service to be treated as export of service and, thus, appellant was entitled to refund of service tax paid under mistake

from www.taxmann.com Latest Case Laws https://ift.tt/2ZdQpyh

Right of 'limited finality' violated if reasoning adopted by CIT(A) for dismissing appeal not considered at assessment

INCOME TAX : Where AO disallowed payment made by assessee towards reimbursement of expenses to its US based subsidiary on ground that said subsidiary had already taken allowance of such expenses incurred by it and CIT (Appeals) also upheld same, however, on completely different reasoning that assessee failed to prove that such expenses were incurred by it wholly and exclusively for business purposes, since assessee got no opportunity to make submission before AO on such reasoning adopted by CIT

from www.taxmann.com Latest Case Laws https://ift.tt/3B4C7wN

Declaration of wilful defaulter was set aside as review committee just endorsed view of identification committee : HC

FEMA, BANKING amp; INSURANCE : Where Committee for Identification of wilful defaulter of Bank declared petitioner-directors of borrower company as wilful defaulters and same was confirmed by Review Committee, since Review Committee had not applied its mind while assessing correctness of opinion rendered by Identification Committee and just endorsed views of Identification Committee, declaration of petitioner as a wilful defaulter could not be sustained and same was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3jiqSuH

HC dismissed review petition of Revenue against order allowing re-export of Gold bars not cleared for home consumption

EXCISE/ST/VAT : High Court dismisses review petition on ground that there are no reasons to review order or to accede to submissions advanced by review petitioner; petitioner had yet to clear consignment of Gold Dore Bars for home consumption, hence, there was no prohibition on re-export of bars

from www.taxmann.com Latest Case Laws https://ift.tt/2Ze0V8w

Provisions of sec. 45(5A) which provides taxability of capital gains under JDA can’t be applied retrospectively: ITAT

INCOME TAX : Provisions of section 45(5A) which came into force from assessment year 2018-19 cannot be applied to assessment year 2015-16

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315943/provisions-of-sec-455a-which-provides-taxability-of-capital-gains-under-jda-can’t-be-applied-retrospectively-itat.aspx

AO can withhold refund only after giving an intimation in writing to assessee: Bombay HC

INCOME TAX : As per section 245, Assessing Officer may in lieu of payment of refund, set off amount to be refunded or any part of that amount against sum, if any, remaining payable under Act by assessee to whom refund is due only after giving an intimation in writing to assessee of action that he proposes to take under this section

from www.taxmann.com Latest Case Laws https://ift.tt/3ngVe1E

ITAT remanded matter as assessee got no opportunity to make submission in respect of reasoning adopted by CIT(A)

INCOME TAX : Where AO disallowed payment made by assessee towards reimbursement of expenses to its US based subsidiary on ground that said subsidiary had already taken allowance of such expenses incurred by it and CIT (Appeals) also upheld same, however, on completely different reasoning that assessee failed to prove that such expenses were incurred by it wholly and exclusively for business purposes, since assessee got no opportunity to make submission before AO on such reasoning adopted by CIT

from www.taxmann.com Latest Case Laws https://ift.tt/3pnEk48

Rule 11UA amended in mid of Assessment Year is applicable for transactions occurred during whole AY: ITAT

INCOME TAX : Adoption of DCF method for valuation of shares is recognized under section 56(2)(viib) which was introduced by Finance Act, 2012 and, hence, applicable in assessment year 2013-14

from www.taxmann.com Latest Case Laws https://ift.tt/3vEnaR6

Declaration of wilful defaulter was set aside as review committee just endorsed view of identification committee : SC

FEMA, BANKING amp; INSURANCE : Where Committee for Identification of wilful defaulter of Bank declared petitioner-directors of borrower company as wilful defaulters and same was confirmed by Review Committee, since Review Committee had not applied its mind while assessing correctness of opinion rendered by Identification Committee and just endorsed views of Identification Committee, declaration of petitioner as a wilful defaulter could not be sustained and same was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3B17gkA

AO can’t withhold refund merely because assessee declared huge income in immediately preceding year; SLP dismissed

INCOME TAX : SLP dismissed on ground of delay against High Court's ruling that where assessee filed its return declaring loss and claimed refund of entire amount of tax paid at source, merely because in immediately preceding assessment year assessee had declared a positive income as against substantial loss declared in relevant assessment year, it could not be a ground to doubt contents of return or claim of assessee with respect to loss suffered and withhold refund claimed by assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317050/ao-can’t-withhold-refund-merely-because-assessee-declared-huge-income-in-immediately-preceding-year-slp-dismissed.aspx

Interest received by bank post liquidation can’t be taxed if same was required to be transferred to DICGCI

INCOME TAX : Where assessee, a co-operative bank under liquidation, had borrowed money from DICGCI (subsidiary of RBI) for making payment to depositors and as per understanding with DICGCI, assessee was liable to make payment to DICGCI, interest income received by assessee-bank post liquidation was diverted at source by overriding title for payment of liabilities of DICGCI and same would not be taxable as income in hands of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317465/interest-received-by-bank-post-liquidation-can’t-be-taxed-if-same-was-required-to-be-transferred-to-dicgci.aspx

AO has power to initiate reassessment on issue which wasn’t considered during original assessment: HC

INCOME TAX : Where in original assessment order, issue of retention money of Rs. 5.88 crore was neither considered nor adjudicated by Assessing Officer and later on related incorrect claim of assessee and disclosure of reduced income were identified, reassessment was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316166/ao-has-power-to-initiate-reassessment-on-issue-which-wasn’t-considered-during-original-assessment-hc.aspx

Reassessment initiated based on info. that assessee received bogus accommodation entries was justified: HC

INCOME TAX : Where AO issued a reopening notice against assessee on ground that an information was received from Investigation wing that assessee was a beneficiary of accommodation entries in respect of bogus sales and thereafter notice under section 133(6) issued by AO to assessee was not responed by it, since AO had received tangible material from investigation wing and upon due satisfaction,

from www.taxmann.com Latest Case Laws https://ift.tt/3pjEauH

Section 164(2) disqualifying directors for 5 yrs on failure to submit financials for 3 years is not ultra vires: HC

COMPANY LAW : Section 164(2) disqualifying directors of companies for a period of 5 years on failure to submit annual returns/financial statements for 3 consecutive years is not ultra vires constitution

from www.taxmann.com Latest Case Laws https://ift.tt/3n960ab

Assessee can’t seek parallel remedy by filing writ on same day of lodging of objections before AO: Bombay HC

INCOME TAX : An error of jurisdictional fact is a point on which an action for judicial review could be maintained without relegating noticee to notice issuing authority; after submitting to AO's jurisdiction under section 148, assessee cannot pursue writ remedy

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316590/assessee-can’t-seek-parallel-remedy-by-filing-writ-on-same-day-of-lodging-of-objections-before-ao-bombay-hc.aspx

Exp. incurred on electricity, rent, security charges, etc. indicates commencement of business; interest exp. allowable

INCOME TAX : Assessee borrowed a loan for purpose of purchase of land for starting a new project and claimed interest paid on such loan as a deduction under section 36(1)(iii) - Assessing Officer disallowed claim on ground that since no activity had commenced in new project and, thus, assets were not put to use,

from www.taxmann.com Latest Case Laws https://ift.tt/3pgcx5D

SCN issued to a respondent under FEMA after 10 years of committing an offence under FERA was rightly quashed: HC

FEMA, BANKING amp; INSURANCE : Where on 1-6-2000, FEMA was enacted repealing FERA and on 5-2-2010 i.e. after almost 10 years, a show cause notice was issued by Deputy Director under FEMA to respondent in respect of an offence made under repealed Act, namely, FERA, said notice was in violation of bar contained in section 49(3) of FEMA, and, therefore, had rightly been quashed by Single Judge

from www.taxmann.com Latest Case Laws https://ift.tt/3lVD5Y4

Limitation period to file Form 10 by due date of filing ITR is applicable only w.e.f. 01-4-2016: ITAT

INCOME TAX : Where Assessing Officer rejected claim of application of income in respect of increase in fixed deposits, since assessee had not shown that amount kept in fixed deposits had been allocated to or earmarked for a charitable purpose in accordance with objects of trust, assessee was not entitled for exemption under section 11(1)(a) in respect of said deposits

from www.taxmann.com Latest Case Laws https://ift.tt/3vpkVRq

Karnataka HC dismissed revenue appeal against refund order for unjust enrichment as tax burden not passed on by assessee

EXCISE/ST/VAT : Where value of goods which were cleared by assessee - manufacturer to various depots situated throughout India was not known at time of clearance from factory gate and at time of finalization of provisional assessment for various periods, it was noticed that assessee had paid duty more than what was payable on final assessment,

from www.taxmann.com Latest Case Laws https://ift.tt/3aNCocK

Passing order without disposing of request of adjournment is violation of principles of natural justice: HC

INCOME TAX : Where Assessing Officer had proceeded to pass impugned assessment order without dealing with request of assessee for adjournment, there had been a violation of principles of natural justice; therefore, impugned assessment order, notice of demand and penalty notices were to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3lRRKDm

Assessee to file fresh application claiming sec. 10(46) relief as a copy of such application not forwarded to CBDT: HC

INCOME TAX : Where petitioner had made an application claiming exemption under section 10(46) and said application was forwarded to Commissioner, but said application had not been given due consideration and department submitted that petitioner had not made application as per required procedure as a copy of such application was not forwarded to Under Secretary, CBDT,

from www.taxmann.com Latest Case Laws https://ift.tt/3lTmTXb

NCLT directs to pass appropriate order to ensure justice to shareholder’s legal heir awaiting justice for 21 yrs

COMPANY LAW : Where on death of shareholder of company filing petition under section 397, CLB by impugned order substituted his legal representative in his place and director of company challenged said order by filing frivolous interlocutory applications and matter had been dragged for almost 21 years, to ensure justice to shareholder and to avoid any further delay, appropriate order on merit was to be passed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316094/nclt-directs-to-pass-appropriate-order-to-ensure-justice-to-shareholder’s-legal-heir-awaiting-justice-for-21-yrs.aspx

No reassessment beyond 4 years on same issue which was duly dealt with during original assessment: HC

INCOME TAX : Where during scrutiny assessment specific query was raised by Assessing Officer with respect to section 14A and same was appropriately replied by assessee and was accepted by Assessing Officer, reopening of assessment beyond period of four years on very same issue was mere change of opinion and was to be quashed

from www.taxmann.com Latest Case Laws https://ift.tt/3aP8dSq

HC justified reassessment as AO made independent inquiries before issuing notice based on info. received from AIMS module

INCOME TAX : Where AO issued a reopening notice on ground that an information was received that shares sold by assessee were of penny stock, thus, income on sale of said shares could not be allowed as exempt under section 10(38), since such information was specific and AO made independent inquiries and applied his mind and upon due satisfaction to such information finally formed a belief that income had escaped assessment, impugned reopening notice was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3AQEnHX

AO can’t withhold refund if no demand as against assessee was pending on date when refund was notified: HC

INCOME TAX : Section 241A provides for withholding of refunds if Assessing Officer concerned finds that refund will have an adverse affect on revenue; however, where notice for refund was issued and refund was withheld with no reasons given and no demand as against assessee was pending on date when refund was notified, Assessing Officer could not have kept refund withheld

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316411/ao-can’t-withhold-refund-if-no-demand-as-against-assessee-was-pending-on-date-when-refund-was-notified-hc.aspx

Gujarat HC dismisses writ as assessee had alternative remedy for filing appeal against reassessment order

INCOME TAX : Where assessee-company filed a writ-petition against reopening notice issued against it on ground that assessee had failed to deduct TDS on certain payment and further reassessment order was passed making disallowance under section 40(a)(ia), since assessee had not deducted TDS as detailed in Form 3CD and said fact was not taken into consideration by Assessing Officer while passing original assessment order under section 143(3),

from www.taxmann.com Latest Case Laws https://ift.tt/3jbaSuy

AO can’t deny benefit of cost of land transferred merely because such land was still appearing in balance sheet: ITAT

INCOME TAX : Where assessee owner of a land entered into a JDA for development of its land and offered consideration received for same as LTCG after claiming indexed cost of acquisition of land and Assessing Officer disallowed claim of cost of acquisition on ground that land was still appearing in balance sheet of assessee, thus, benefit of cost could not be given,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315756/ao-can’t-deny-benefit-of-cost-of-land-transferred-merely-because-such-land-was-still-appearing-in-balance-sheet-itat.aspx

Stakeholder of MCX who wasn’t directly affected by order of SEBI can’t be considered ‘person aggrieved’ u/s 15T

COMPANY LAW/SEBI : A shareholder of MCX cannot be considered to be 'person aggrieved' within meaning of section 15T by a decision of SEBI in favour of MCX

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316412/stakeholder-of-mcx-who-wasn’t-directly-affected-by-order-of-sebi-can’t-be-considered-‘person-aggrieved’-us-15t.aspx

Reassessment by taking diff. view on very same material on which assessment had been completed not permissible: HC

INCOME TAX : Reopening assessment by taking a different view on very same material on which assessment had been completed would not be permissible

from www.taxmann.com Latest Case Laws https://ift.tt/3AHaU32

HC quashes assessment order passed by AO without application of mind; cost to be recover from him if such order continues

INCOME TAX : Where revenue passed assessment order which was an exact reproduction of draft assessment order without considering replies filed by petitioner and petitioner's request for personal hearing, impugned order being non-est was to be set aside as same was not made in accordance with procedure laid down under section 144B(9)

from www.taxmann.com Latest Case Laws https://ift.tt/3p8yALB

ITAT recommends constitution of larger bench to decide allowability of exp. on freebies to medical professionals

INCOME TAX : Not agreeing with co-ordinate bench decision, Tribunal recommends constitution of a bench of three or more Members to consider question as to whether or not an item of expenditure on account of freebies to medical professionals, which is hit by rule 6.8.1 of Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 can be allowed as a deduction under section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/2XlyUew

HC quashes assessment order passed in violation of Sec. 144B; cost to be recover from AO if such order continues

INCOME TAX : Where revenue passed assessment order which was an exact reproduction of draft assessment order without considering replies filed by petitioner and petitioner's request for personal hearing, impugned order being non-est was to be set aside as same was not made in accordance with procedure laid down under section 144B(9)

from www.taxmann.com Latest Case Laws https://ift.tt/3lLPWM7

Sum set-aside as debenture redemption reserve couldn’t be considered as a reserve for computing book profits: ITAT

INCOME TAX : Where assessee borrowed funds for setting up of a thermal power plant, interest expenses incurred by assessee till date of commissioning of power production i.e., prior to use of assets, was to be capitalized to cost of asset in view of section 43(1); however, interest expenses incurred after commencement of power production i.e. post assets were put to use, was to be allowed as revenue expenditure

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316465/sum-set-aside-as-debenture-redemption-reserve-couldn’t-be-considered-as-a-reserve-for-computing-book-profits-itat.aspx

SC issued notice in SLP filed against ruling that capitalization of exp. isn’t required to claim deduction u/s 80-IA

INCOME TAX : Notice issued in SLP filed against order of High Court that where assessee power distribution company undertook substantial renovation and modernization of existing power distribution lines, there was no requirement of capitalization of said expenditure in books of account and to complete renovation in relevant previous year, to claim deduction under section 80-IA(4)(iv)(c)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316910/sc-issued-notice-in-slp-filed-against-ruling-that-capitalization-of-exp-isn’t-required-to-claim-deduction-us-80-ia.aspx

SC dismissed SLP against HC's ruling that notice issued against dead person is unenforceable in law

INCOME TAX : SLP dismissed against High Court's ruling that notice issued under section 153C against dead person is unenforceable in law

from www.taxmann.com Latest Case Laws https://ift.tt/3ANA8ww

No service tax on TDS portion of royalty paid to foreign company: CESTAT

EXCISE/ST/VAT : Levy of service tax on TDS portion of royalty paid by appellant to foreign company under technical assistance agreements cannot sustain and requires to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3Dw0yVm

Delhi HC ordered release of seized jewellery as AO failed to take action of assessee’s application within 120 days

INCOME TAX : Where assessee filed an application under section 132B for release of jewellery seized during search conducted upon her under section 132 and revenue failed to pass an order on same within stipulated period of 120 days from date on which last authorization for search was executed, entire seized jewellery was to be released to assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316492/delhi-hc-ordered-release-of-seized-jewellery-as-ao-failed-to-take-action-of-assessee’s-application-within-120-days.aspx

Reassessment was valid if AO received info. from investigation wing that assessee was beneficiary of accommodation entries

INCOME TAX : Where Assessing Officer had reason to believe that income chargeable to tax had escaped assessment as assessee was beneficiary of accommodation entries and basis for formation of such belief were several inquiries and investigation by Investigation Wing that there had been escapement of income of assessee from assessment because of his failure to disclose fully and truly all material facts, reopening of assessment was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3mSEWMx

Additions towards share application money valid as no evidence furnished to prove applicant’s creditworthiness : ITAT

INCOME TAX : Where assessee raised share application money from share applicants, however, in confirmation of share applicants filed by assessee it was not mentioned whether share application money had been given in cash or through bank account and no evidence of share applicants' creditworthiness had been filed, addition made for unexplained share capital was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314547/additions-towards-share-application-money-valid-as-no-evidence-furnished-to-prove-applicant’s-creditworthiness-itat.aspx

No service tax on TDS portion of royalty paid to foreign company amp; borne by service provider : CESTAT

EXCISE/ST/VAT : Levy of service tax on TDS portion of royalty paid by appellant to foreign company under technical assistance agreements cannot sustain and requires to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2YMWGR9

Date of passing of order by CIT to be considered while computing limitation period for revisional proceedings: SC

INCOME TAX : Where once it was established that order under section 263 was made/passed within period of two years from end of relevant financial year in which order sought to be revised was passed, such order would be within period of limitation prescribed under section 263(2) and receipt of order by assessee would have no relevance for purpose of counting period of limitation under section 263

from www.taxmann.com Latest Case Laws https://ift.tt/3oVaqEq

HC can’t accept recommendations of council in respect of professional misconduct without applying its own logic : SC

INCOME TAX/CHARTERED ACCOUNTANT ACT : Where Council of Chartered Accountants of India has found any member of Institute to be guilty of misconduct, it is required under Act to forward matter to High Court with its recommendations and High Court has to pass final order either dismissing complaint or penalizing member of Institute

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317419/hc-can’t-accept-recommendations-of-council-in-respect-of-professional-misconduct-without-applying-its-own-logic-sc.aspx

AO can’t question existence of software work-in-progress if assessee was claiming dep. on it from many years: ITAT

INCOME TAX : Where AO restricted depreciation claimed by assessee-company, engaged in software development, on software work in progress capitalized during year on ground that assessee failed to prove existence of such asset, since assessee had maintained books of account and shown work in progress which was evident from fixed assets schedule on which depreciation was year by year claimed and allowed and existence of software was challenged for first time during year and, further,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316098/ao-can’t-question-existence-of-software-work-in-progress-if-assessee-was-claiming-dep-on-it-from-many-years-itat.aspx

CCI approves of internal restructuring of TVS Group

The Competition Commission of India has approved the internal restructuring of the TVS Group, under Section 31(1) of the Competition Act, 2002. The proposed combination contemplates an internal restructuring within the TVS group pursuant to the execution of a Memorandum of Family Arrangement, the Composite Scheme of Amalgamation and Arrangement dated 29 January 2021 between the Parties and board resolutions.

from taxmann.com News https://ift.tt/2X3YtAF

HC justified reassessment as assessee failed to furnish details of bad debts during original assessment

INCOME TAX : Where AO issued a reopening notice on ground that assessee had debited a sum of certain amount as bad debt written off in its profit and loss account, however, in return of income, assessee did not furnish any details about such bad debts, since assessee had not filed any relevant and supporting documentary evidences or materials for claim of bad debts written off during original assessment, impugned reopening notice after four years was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3aru3eC

Reassessment justified if issue pending before ITAT was similar but involving payment made in different country: HC

INCOME TAX : Where assessee-company contended that reopening notice issued against it on ground that it had not deducted TDS on payment made to its AE for shared/cost sharing expenses was unjustified as said issue was already pending adjudication before Tribunal, since matter pending for adjudication before Tribunal was about payment made by assessee to its AE in Malaysia whereas reasons for reopening was about non-deduction of TDS on payment made to its AE in USA,

from www.taxmann.com Latest Case Laws https://ift.tt/3asLsn4

Credit received from supplier for choosing its engines in aircraft to be purchased is capital receipt : ITAT

INCOME TAX : Where assessee-company engaged in business of operating airlines in India, entered into a purchase agreement with AIRBUS SAS, France for supply of aircrafts - Assessee was given option to chose engines to be fitted in aircrafts and it chose engines manufactured by IAE - In return, IAE agreed to give certain amount of credit to assessee for choosing its engines - Whether since credits were received for selection of engines for purpose of support for aircraft acquisition,

from www.taxmann.com Latest Case Laws https://ift.tt/3v1A5w2

Purchase of property by Co. with share capital money cannot be said to be a Benami Transaction: HC

INCOME TAX/BENAMI ACT: Purchase of property by a company in its own name with share capital money cannot be said to be a benami transaction on the basis that it is a purchase of property in company's name with consideration provided by others(shareholders) since share capital contributions received by a company from its shareholders are company's own funds and assets; hence company cannot be treated as benamidar of its shareholders in respect of property held in its name

from www.taxmann.com Latest Case Laws https://ift.tt/3ao6cN3

Credit received from manufacturer for choosing its engines in aircraft acquisition is capital receipt : ITAT

INCOME TAX : Where assessee-company engaged in business of operating airlines in India, entered into a purchase agreement with AIRBUS SAS, France for supply of aircrafts - Assessee was given option to chose engines to be fitted in aircrafts and it chose engines manufactured by IAE - In return, IAE agreed to give certain amount of credit to assessee for choosing its engines - Whether since credits were received for selection of engines for purpose of support for aircraft acquisition,

from www.taxmann.com Latest Case Laws https://ift.tt/3atxi5c

CIT can’t cancel registration merely on basis of info. from investigation wing that trust received ingenuine donations

INCOME TAX : Where on basis of information from Investigation Wing that assessee had received ingenuine donations from donors, registration granted under section 12AA to trust was withdrawn and cancelled, since there was no tangible evidence to effect that assessee had received ingenuine donation, registration of charitable trust per se could not be withdrawn and cancelled

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316433/cit-can’t-cancel-registration-merely-on-basis-of-info-from-investigation-wing-that-trust-received-ingenuine-donations.aspx

HC remanded matter to check whether loan given to discharge bank guarantee obligations can be termed as deemed dividend

INCOME TAX : Where Tribunal held that monies advanced by company 'GIPL' to company 'PL' under an agreement was deemed dividend in hands of assessee who was shareholder in both of these companies and assessee contended that said loan was given by 'GIPL' for discharging of its bank loan by 'PL' so as to free GIPL from its bank guarantee obligation for said loan and that such amount was not given by 'GIPL' to 'PL' for personal benefit of directors and shareholders,

from www.taxmann.com Latest Case Laws https://ift.tt/3FzGCTn

Writing off security deposit is allowable if Co. discontinued its business for which such deposit was made: HC

INCOME TAX : Where assessee had deposited a certain sum as security with 'T' for leave and license operations to take over operations of 'T' for a period of 24 months at an agreed monthly lease rent, however, assessee was able to carry on business only for six months and suffered loss and business could not be continued thereafter and assessee wrote off said security deposit paid to 'T' as irrecoverable security deposit for previous assessment year,

from www.taxmann.com Latest Case Laws https://ift.tt/3ltMS7n

Sum received as share application or share premium could not be taxed subsequent year: ITAT

INCOME TAX : Where alleged money on account of share application or share premium was received in an earlier year, same could not be taxed in current financial year

from www.taxmann.com Latest Case Laws https://ift.tt/3BxEid9

Delhi HC remanded matter back as assessee didn’t submit reply to SCN due to lockdown announced in the State

INCOME TAX : Where Assessing Officer passed impugned assessment order without affording an opportunity of personal hearing to assessee as Delhi was under lockdown due to second wave of Covid-19 Pandemic between date of notices and date by which replies had to be filed, impugned assessment order was to be set aside and matters were to be remanded back for adjudication afresh

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316548/delhi-hc-remanded-matter-back-as-assessee-didn’t-submit-reply-to-scn-due-to-lockdown-announced-in-the-state.aspx

NCLAT allows more time to Zee to file reply to Invesco's plea for holding of EGM

COMPANY LAW : Where respondent, foreign portfolio investor and shareholder of appellant (Zee), had filed petition before NCLT for holding of Extraordinary general meeting of appellant as soon as possible and NCLT by impugned order granted only two days to appellant to file its reply to company petition, it was held that NCLT had committed an error in not granting reasonable and sufficient time for filing a reply, which was a complete violation of rule 37 of NCLT Rules, 2016

from www.taxmann.com Latest Case Laws https://ift.tt/2YqNrpo

Date of passing of order to be considered and not its receipt by assessee for counting period of limitation u/s 263: SC

INCOME TAX : Where once it was established that order under section 263 was made/passed within period of two years from end of relevant financial year in which order sought to be revised was passed, such order would be within period of limitation prescribed under section 263(2) and receipt of order by assessee would have no relevance for purpose of counting period of limitation under section 263

from www.taxmann.com Latest Case Laws https://ift.tt/3agZjNk

HC directed AO to decide matter as no steps were to rectify assessment order despite many requests raised by assessee

INCOME TAX : Where assessee claimed refund on ground that he paid full tax without considering advance tax payment of same amount but refund was not granted and it moved rectification application, since no order under section 154 had been passed by Assessing Officer, Assessing Officer was directed to take appropriate remedial measures as well as to decide rectification application in accordance with law

from www.taxmann.com Latest Case Laws https://ift.tt/3mssrXG

Error of issuing reassessment notice in name of entity which had ceased to exist can’t be corrected u/s 292B: HC

INCOME TAX : Where Assessing Officer had committed a fundamental error by issuing notice under section 148 in name of entity which had ceased to exist because of having merged with petitioner company, stand of Assessing Officer that it was an error which could be corrected under section 292B was not acceptable

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316550/error-of-issuing-reassessment-notice-in-name-of-entity-which-had-ceased-to-exist-can’t-be-corrected-us-292b-hc.aspx

No disallowance u/s 36 if interest-free loans granted to subsidiary purely out of commercial expediency: HC

INCOME TAX : Where assessee holding company advanced interest-free loans to its subsidiary purely out of commercial expediency and there was no findings of fact that such loans advanced by assessee were utilized for personal benefits of directors of subsidiary and, further, assessee had sufficient interest-free funds to cover such loans given to its subsidiary, no interest expenditure was to be disallowed under section 36(1)(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/3Dmx4cF

Reassessment after 4 years to change manner of computation of deduction u/s 57 is change of opinion: Bombay HC

INCOME TAX: Where assessment was not sought to be reopened on reasonable belief that income had escaped assessment on account of failure of assessee to disclose truly and fully all material facts that were necessary for computation of income but was a case wherein assessment was sought to be reopened on account of change of opinion of Assessing Officer about manner of computation of deduction under section 57, reopening was not justified

from www.taxmann.com Latest Case Laws https://ift.tt/3mw86Rp

Profit from sale of land recognized as an investment in books of account is taxable as capital gains: ITAT

INCOME TAX : Where assessee sold a land owned by it after holding it for a period of six years and same was shown as investment in its balance sheet and not as stock-in-trade and land was purchased out of its own funds and not out of borrowed funds, transaction of sale of land did not fall under category of an 'adventure in nature of trade' and, thus, profits arising on sale of land was to be treated as 'capital gains' and not as 'business income'

from www.taxmann.com Latest Case Laws https://ift.tt/3lkr6CV

Profit from sale of land purchased not from borrowed funds to be treated as capital gains: ITAT

INCOME TAX : Where assessee sold a land owned by it after holding it for a period of six years and same was shown as investment in its balance sheet and not as stock-in-trade and land was purchased out of its own funds and not out of borrowed funds, transaction of sale of land did not fall under category of an 'adventure in nature of trade' and, thus, profits arising on sale of land was to be treated as 'capital gains' and not as 'business income'

from www.taxmann.com Latest Case Laws https://ift.tt/305Rvw8

Madras HC remanded matter as assessee was asked to submit voluminous doc. within 2-3 days

INCOME TAX : Where in search, huge cash was seized and notice to assessee was issued to submit various details within shortest period of 2 to 3 days, that too in Covid pandemic situation, matter was to be remitted for giving opportunity to assessee to submit required documents

from www.taxmann.com Latest Case Laws https://ift.tt/3Dlhw8S

Appeal to be treated as pending before court even if delay occurred in filing same was not condoned: HC

INCOME TAX : Appeal could be said to be pending, even if delay occured in filing same was not condoned, thus, declaration filed under Vivad Se Vishwas Scheme could not be rejected merely on ground that appeal was invalid as delay in filing appeal was not condoned

from www.taxmann.com Latest Case Laws https://ift.tt/3mztIfu

Reassessment notice not barred by limitation even if same was stamped by postal dept. on later date: HC

INCOME TAX : Where Assessing Officer issued and dispatched a reopening notice against assessee on last date of expiry of period of limitation, even though notice was franked by postal department later, said notice was not barred by limitation

from www.taxmann.com Latest Case Laws https://ift.tt/3afUS5s

Govt. allows 100% FDI in Telecom Sector under automatic route

The Government vide Press note No. 4 (2021 Series) has reviewed the extant FDI policy on Telecom Sector and has increased the FDI limit from 49% to 100% under automatic route. The FDI in Telecom sector however, shall be subject to restrictions envisaged in Para 3.1.1 of the FDI policy (as amended vide. Press Note No. 3 dated 17-04-2020) which requires prior Government approval. Accordingly, any entity of border sharing countries can invest in Telecom Sector only under Government route.

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CBDT considering modification in faceless appeal scheme, 2020

INCOME TAX : In a matter before the Supreme Court, Additional Solicitor General submitted that department is having a second look on Faceless Appeal Scheme, 2020 and sought a period of three months as it may require change of law

from www.taxmann.com Latest Case Laws https://ift.tt/2YsrDdn

HC directed Authorities to release imported goods on obtaining an indemnity bond from assessee

CUSTOMS/EXCISE/ST : Where assessee imported Soyabean oil from Bangladesh and submitted all import documents and information for clearance of goods but said goods were warehoused on ground of doubt on country of origin certificate, case of assessee would prima facie come under rule 6(1)(c) of CAROTAR, 2020 and thus, Customs Authorities were to be directed to release imported goods on obtaining an indemnity bond from assessee

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Donations received with specific directions by donors for use towards corpus funds of trust is capital receipts: ITAT

INCOME TAX : Amount of donations received by assessee-trust with specific directions by donors for using same towards corpus funds would be treated as capital receipts and, therefore, same could not be included in income of assessee

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‘KIADB’ is formed to do charity through advancement of object of general public utility; SC dismissed SLP

INCOME TAX : SLP granted against impugned order of High Court holding that where assessee-industrial development board, registered under section 12AA, was not driven by desire to earn profits but to do charity through advancement of an object of general public utility, proviso to section 2(15) was not applicable in assessee's case and same was entitled to benefit of exemption under section 11

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316219/‘kiadb’-is-formed-to-do-charity-through-advancement-of-object-of-general-public-utility-sc-dismissed-slp.aspx

Deputy RoC’s complaint against petitioner quashed as a plea for violating sec. 165 was already filed for compounding

COMPANY LAW : Where Registrar of Companies, had filed a complaint before competent Court against petitioner alleging violation of section 165 on ground that he was a director of more than 20 companies and said complaint was filed without considering fact that petitioner had already filed an application for compounding of alleged offence, complaint filed by Registrar was not sustainable and was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316598/deputy-roc’s-complaint-against-petitioner-quashed-as-a-plea-for-violating-sec-165-was-already-filed-for-compounding.aspx

Karnataka HC condoned delay of 310 days as there was an inadvertence mistake on part of CA in filing appeal

INCOME TAX : Where there was inadvertence mistake on part of assessee's Chartered Accountant in filing appeal before Tribunal, delay of 310 days was to be condoned

from www.taxmann.com Latest Case Laws https://ift.tt/3uK81Ny

CESTAT allowed refund of service tax paid on ocean freight as levy struck down by HC

EXCISE/ST/VAT : No service tax can be assessed and charged from third parties like Indian importers in CIF contracts, because value of sea transportation service is not available with them in CIF contracts

from www.taxmann.com Latest Case Laws https://ift.tt/3Ao45Dz

Respondent-LIC not eligible to claim any relief if withdrawal of FTC wasn’t challenged before CIT(A) : ITAT

INCOME TAX : Assessment was reopened in case of assessee on ground that excessive foreign tax credit could not be allowed to assessee - Further, a reassessment order was passed withdrawing inadmissible foreign tax credit - Assessee moved an instant separate petition under rule 27 before Tribunal seeking that entire reassessment proceedings to be quashed - Whether correct legal position was that foreign tax credit, in respect of taxes paid abroad,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317299/respondent-lic-not-eligible-to-claim-any-relief-if-withdrawal-of-ftc-wasn’t-challenged-before-cita-itat.aspx

PMLA does not exclude other agencies from conducting investigations into offences mentioned in schedule of PMLA: HC

FEMA amp; BANKING : Where an investigation was carried out by EOW against petitioner for offences under section 420/406/120B of IPC and parallel investigation was being carried out under PMLA, since prosecution of offence under IPC and offences mentioned in Schedule of PMLA, under which petitioner was charged, were mutually exclusive, conducting parallel investigation would not amount to infringement of fundamental rights of petitioner

from www.taxmann.com Latest Case Laws https://ift.tt/3FsXRpE

Allahabad HC quashes reassessment notice issued under old regime; unconvinced with view’s of Chhattisgarh HC

INCOME TAX : Where Assessing Officer initiated reassessment proceedings upon issue of notices under section 148 after date 1-4-2021, since by virtue of section 1(2)(a) of Finance Act, 2021, provisions of sections 147, 148, 149 and 151 as existed upto 31-3-2021, stood substituted along with new provisions enacted by was of section 148A, and in absence of any saving clause, to save pre-exisiting provisions,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317302/allahabad-hc-quashes-reassessment-notice-issued-under-old-regime-unconvinced-with-view’s-of-chhattisgarh-hc.aspx

Delhi HC quashed faceless assessment order as show-cause-notice cum draft assessment wasn’t served on assessee

INCOME TAX : Section 144B(7) mandatorily provides for issuance of a prior show cause notice and draft assessment order before issuing final assessment order

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316330/delhi-hc-quashed-faceless-assessment-order-as-show-cause-notice-cum-draft-assessment-wasn’t-served-on-assessee.aspx

Magistrate’s Order taking cognizance of offence couldn’t be quashed on ground of payment of insufficient Court fees

FEMA, BANKING amp; INSURANCE : Order of Magistrate taking cognizance of offence against petitioner could not be quashed at very threshold on ground of payment of insufficient Court fees or that complaint was not filed by director of company, said issues were to be raised at time of trial of case

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316198/magistrate’s-order-taking-cognizance-of-offence-couldn’t-be-quashed-on-ground-of-payment-of-insufficient-court-fees.aspx

No immunity to assessee if registration granted under erstwhile law is inconsistent with existing Income-tax Act

INCOME TAX : Where assessee trust was granted exemption under section 4(3)(i) of Income-tax Act, 1922, same being inconsistent with corresponding provisions under Income-tax Act of 1961, it could not have been saved under section 297(2)(k) of Act, 1961 as assessee has to keep pace with evolving law and regulations and cannot claim immunity and seek shelter under erstwhile law

from www.taxmann.com Latest Case Laws https://ift.tt/3izmcA3

Sum received from letting-out building along with other amenities in industrial park taxable as business income : HC

INCOME TAX : Rental income received by assessee from letting out building along with other amenities in an industrial park would be chargeable to tax under head 'income from business and profession'

from www.taxmann.com Latest Case Laws https://ift.tt/3a54NuH

CBDT prescribes conditions to claim relief on offshore indirect transfer of Indian assets

The CBDT had issued the draft rules on 28-08-2021 prescribing the specified conditions to claim the above relief. After examining the stakeholder comments on the draft rules, the CBDT has notified the final rules vide Notification No. GSR 713(E), dated 01-10-2021. The summary of newly inserted rules has been incorporated in this article

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AO can continue proceedings even if reason supplied by him while rejecting objections not acceptable to assessee: HC

INCOME TAX : Where Assessing Officer dealt with objections filed by assessee against reopening notice issued against it in accordance with law and rejected same, even though reasons for rejection of objections might not be acceptable to assessee, it had to proceed with reassessment proceedings

from www.taxmann.com Latest Case Laws https://ift.tt/3ivIJxD

Entire turnover can’t be treated as income if there is difference in turnover as per books and TDS certificate: ITAT

INCOME TAX : Where there was difference between assessees books of account and accounts as per TDS certificate, on said difference, only embedded portion of profits was to be taken into consideration and addition was to be made thereon; there was no justification in making addition of entire turnover to income of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316448/entire-turnover-can’t-be-treated-as-income-if-there-is-difference-in-turnover-as-per-books-and-tds-certificate-itat.aspx

Late application of fixation of special rate for payment of excise duty to be accepted if delayed due to pendency of case with SC

EXCISE/ST/VAT : Late application of fixation of special rate for payment of excise duty to be accepted if delayed due to pendency of case with SC

from www.taxmann.com Latest Case Laws https://ift.tt/3l9Bv4p

Order of granting conditional stay by AO considering all facts can’t be questioned: HC

INCOME TAX : Where Assessing Officer granted stay of recovery of demand by directing assessee to pay 20 per cent of total demand, since Assessing Officer had passed impugned order of grant of conditional stay by taking all facts into consideration and said order passed was in exercise of his discretionary powers, same was not to be interfered with

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316183/order-of-granting-conditional-stay-by-ao-considering-all-facts-can’t-be-questioned-hc.aspx

AO can’t withhold refund after completion of assessment without assigning reasons: HC

INCOME TAX : Once a refund is declared after scrutiny proceedings and such refund is withheld, a reasoned order has to follow because assessment in such a case is done after production of materials and evidence required by Assessing Officer

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316413/ao-can’t-withhold-refund-after-completion-of-assessment-without-assigning-reasons-hc.aspx

Assessee developing gems amp; jewellery parks to provide common facilities for export of diamonds eligible for sec. 11 relief

INCOME TAX : Where assessee trust was established with objective to develop world class gems and jewellery park to provide common facilities required to promote exports of diamonds from India and it was not carrying out any trade, commerce or business and only dealt with its members to attain its objects of general public utility, it would not be hit by first proviso to section 2(15), hence, benefit of section 11 could not have been denied

from www.taxmann.com Latest Case Laws https://ift.tt/3FhqYfi

InVITs can offer and allot units on a private placement basis only to institutional investors and bo

In an interpretative letter issued under SEBI (Informal Guidance) Scheme, 2003, the SEBI has replied to a query sought by Amibit Private Limited. The query was whether privately placed InvIT can issue and allot units to natural persons under preferential issue guidelines in exchange for receipt of securities of the target SPV? SEBI replied that offer and allotment by InvIT on a private placement basis whether initial or further can be made only to Institutional Investors and Body Corporates.

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No assessee-in-default for non-deduction of tax during period where payment was below threshold limit: HC

INCOME TAX : Where liability for deducting tax at source for payments made to individual contractors above monetary limits arose only with effect from 1-6-2007, assessee should not be held liable for failure to deduct tax at source on payment of freight and carriage charges for previous year 2006-07, (i.e., 1-4-2006 to 31-3-2007), and disallowance made under section 40(a)(ia) for non-payment of TDS on said payment under section 194C was to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/3kXEaxS

AO can’t withhold refund to adjust it with demand if no such demand exists at time of refund declaration: HC

INCOME TAX : Where once a refund is declared after scrutiny proceedings and such refund is withheld, a reasoned order has to follow and in absence of any cogent reasons justifying withholding of refund due to assessee; Assessing Officer could not have kept refund withheld to link such refund with any demand against assessee for a subsequent period

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316416/ao-can’t-withhold-refund-to-adjust-it-with-demand-if-no-such-demand-exists-at-time-of-refund-declaration-hc.aspx

Declaration of wilful defaulter by Committee without giving an opportunity of being heard to petitioner was to be set aside: HC

FEMA amp; BANKING : Where petitioner-company was declared wilful defaulter by Committee of Identification of Wilful Defaulters and Review Committee without giving petitioner opportunity of being heard, decision of Identification Committee and Review Committee was in violation of principles of natural justice and same was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3uxFpXU

Ministry of Home Affairs extends validity of registration certificates issued under FCRA by Dec 31,

The Ministry of Home Affairs has extended the deadline till December 31 for renewal of Foreign Contribution (Regulation) Act (FCRA) registration certificates. The Ministry had earlier given a relief up to September 30 to associations whose registration was expiring between September 29, 2020-September 30, 2021. Now as per latest notice FCRA certificates or registration expiring between September 29, 2020 to December 31, 2021 could apply for renewal till December 31, 2021

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There is no bar on ED to file an appeal u/s 26 against order of Adjudicating Authority through Assistant Director: HC

FEMA amp; BANKING : There is no bar on Enforcement Directorate to file an appeal against order of Adjudicating Authority through Assistant Director

from www.taxmann.com Latest Case Laws https://ift.tt/3F6EAKq

Subsidy received in form of sales tax paid is revenue receipt if its quantum depended upon production amp; sales: ITAT

INCOME TAX : Where, for assessment year 2013-14, assessee received subsidy in form of reimbursement of sales tax paid to State Government, assessee was eligible for subsidies only after commencement of commercial production and quantum of subsidy depended upon production, sales and sales tax collected and paid by assessee, same was to be treated as revenue receipt

from www.taxmann.com Latest Case Laws https://ift.tt/3zYty60

ITAT can’t reject assessee’s claim of enhancement of exp. which was initially accepted by AO: HC

INCOME TAX : Where assessee company debited ESOP expenditure of certain amount to its profit and loss account and same was accepted by Assessing Officer, assessee was entitled in law to raise an additional claim by way of enhancement of amount of such ESOP expenditure before Tribunal as facts related to such expenditure were already on record

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315929/itat-can’t-reject-assessee’s-claim-of-enhancement-of-exp-which-was-initially-accepted-by-ao-hc.aspx

AO can’t withhold refund to adjust it with demand if no demand exists at time of declaration of refund: HC

INCOME TAX : Where once a refund is declared after scrutiny proceedings and such refund is withheld, a reasoned order has to follow and in absence of any cogent reasons justifying withholding of refund due to assessee; Assessing Officer could not have kept refund withheld to link such refund with any demand against assessee for a subsequent period

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000316416/ao-can’t-withhold-refund-to-adjust-it-with-demand-if-no-demand-exists-at-time-of-declaration-of-refund-hc.aspx