AO can’t disallow cost of improvement merely relying on enquiries made with assessee’s neighbour: ITAT

INCOME TAX : Where assessee had purchased a flat and incurred expenditure of Rs. 23 lakhs for purpose of renovating house and Assessing Officer, merely, based on enquires made with neighbours, disallowed entire expenditure claimed by assessee and Commissioner (Appeals) opining that Assessing Officer should have enquired through a builder who constructed building instead of neighbour,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000318258/ao-can’t-disallow-cost-of-improvement-merely-relying-on-enquiries-made-with-assessee’s-neighbour-itat.aspx

Adjudication proceedings can't be deferred on ground that criminal proceedings are pending being both separate proceedings: HC

EX/ST/VAT : Adjudication and criminal prosecution being separate proceedings, adjudication cannot be deferred on ground that criminal proceedings are pending and witnesses to be cross-examined in adjudication may be witnesses in prosecution proceedings also

from www.taxmann.com Latest Case Laws https://ift.tt/3GqnA1y

HC quashed assessment order as only 30 hours were given to respond to SCN that too in lockdown period

INCOME TAX : Where from records it was evident that petitioner had raised grievance and also filed an adjournment request against SCN giving merely 30 hours to respond, that too in COVID-19 lockdown period, impugned assessment order holding that no reply or explanation had been furnished, was to be quashed

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

MoU showing tax to be paid by another Co. isn’t binding on AO; tax can be recovered from director if not paid by Co.: HC

INCOME TAX : Where Assessing Officer passed an order under section 179 against assessee-director of a company to recover tax dues of said company from assessee, since despite all possible efforts made by department only a small part of tax dues could be recovered from company, and there was no other option left for department apart from recovering same from assessee director, impugned order under section 179 passed against assessee was justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317314/mou-showing-tax-to-be-paid-by-another-co-isn’t-binding-on-ao-tax-can-be-recovered-from-director-if-not-paid-by-co-hc.aspx

HC dismissed vexatious appeal filed against CA whose audit report passed judicial scrutiny

INCOME TAX : Delhi HC dismisses with Rs.50K costs vexatious appeal against CA whose report passed judicial scrutiny

from www.taxmann.com Latest Case Laws https://ift.tt/3EDD9SZ

AO can’t compute profit based on estimation if audit report didn’t give any adverse finding regarding books of account

INCOME TAX : Where land initially purchased by assessee was a rural agricultural land and was thus not a capital asset land, per provision of section 2(14)(iii) till date of it being diverted into a non-agricultural land, capital gain accruing to assessee till date of diversion of land shall be exempt from tax

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317498/ao-can’t-compute-profit-based-on-estimation-if-audit-report-didn’t-give-any-adverse-finding-regarding-books-of-account.aspx

Police cannot register FIR against Tax Officers and demand diary seized during search: HC

INCOME TAX : Police should not be "acting at the behest of" MLA from whose premises a diary was seized in a search u/s 132

from www.taxmann.com Latest Case Laws https://ift.tt/3rGw6p5

Refund of Education Cess amp; SHEC admissible within one year of transition, as not transferable to GST: CESTAT

EXCISE/ST/VAT : Education Cess and Secondary and Higher Education cess would not be transferred into GST - After introduction of GST, refund of unutilized credit on the cesses would be admissible under section 11B of Central Excise Act, 1944 within a period of one year

from www.taxmann.com Latest Case Laws https://ift.tt/338vv5i

Services qualify as exports if provider in India amp; recipient outside India are independently registered companies: CESTAT

EXCISE/ST/VAT : Service recipient located outside India is not an establishment of the service provider in India as they are independently registered companies in respective countries and therefore, such services are covered under export of service; Demand under Rule 6 of Cenvat Credit Rules treating them as exempted service is not sustainable

from www.taxmann.com Latest Case Laws https://ift.tt/31Fs59u

Reassessment notice issued after 01-4-21 without following procedure of newly inserted sec. 148A is valid: HC

INCOME TAX : Though new section 148A was inserted w.e.f. 1-4-2021 stipulating condition of giving opportunity of hearing to assessee prior to issuing reassessment notice, in view of COVID pandemic, old provisions of section 148 was extended uptill 30-6-2021; reassessment notice issued on 28-6-2021 without following procedure inserted vide new section 148A would be valid

from www.taxmann.com Latest Case Laws https://ift.tt/3lGIf9K

Police cannot ask Tax Officers to produce diary seized during a search conducted on premises of assessee: HC

INCOME TAX : Police should not be "acting at the behest of" MLA from whose premises a diary was seized in a search u/s 132

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

SC upholds constitutionality of RBI’s decision to ban ‘Merchanting Trade Transactions’ pertaining to PPE kits

FEMA, BANKING amp; INSURANCE : SC upholds constitutionality of RBI's decision to ban MTTs in so far as it pertained to PPE kits

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000318286/sc-upholds-constitutionality-of-rbi’s-decision-to-ban-‘merchanting-trade-transactions’-pertaining-to-ppe-kits.aspx

Complainant can’t pursue the original complaint u/s 138 of NI Act once settlement has been entered into by parties: SC

FEMA amp; BANKING : Where complaint was filed under section 138 of NI Act on dishonour of cheques, following which parties entered into a settlement agreement, same would erode original complaint; non-compliance of settlement agreement or dishonour of cheques issued thereunder would give rise to a new cause of action imposing liability under section 138

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317435/complainant-can’t-pursue-the-original-complaint-us-138-of-ni-act-once-settlement-has-been-entered-into-by-parties-sc.aspx

Waste occurred during processing does not amount to manufacture, hence no Excise Duty: CESTAT

EXCISE/ST/VAT: 'Dolachar' or 'coalchar' being waste item arising in course of manufacture of sponge iron, is not liable to duty

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

CESTAT set aside the order increasing value of Imported goods due to classification dispute as drawback was available

EXCISE/ST/VAT: Diamonds exported being eligible for drawback of duties paid on import, value is not to be enhanced in absence of adequate evidence of goods conclusively being 'cut and polished diamonds'

from www.taxmann.com Latest Case Laws https://ift.tt/31v1z2M

HC quashed ITAT’s order remanding back matter without adverting to reasoning assigned by CIT(A) in his order

INCOME TAX : Where in respect of allowability of prior period expenses, in computing book Profit, Tribunal remanded issue to Commissioner (Appeals) without adverting to reasoning assigned by Commissioner (Appeals) in his order, impugned order passed by Tribunal was to be quashed

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314332/hc-quashed-itat’s-order-remanding-back-matter-without-adverting-to-reasoning-assigned-by-cita-in-his-order.aspx

Tax Audit: Its Intro, applicability, manner of filing, forms of report, and Part-A of Form 3CD

Income-tax law requires the assessee to get his books of accounts audited in pursuance of the requirement under Section 44AB of The Income Tax Act, 1961. The Chartered Accountant conducting the tax audit is required to give his findings, observations, etc., in the form of an audit report at the e-filing portal of Income-tax in Form No. 3CA/3CB and 3CD. In this story, we would discuss the reporting requirement of each clause, that are contained in Part A of Form 3CD.

from taxmann.com News https://ift.tt/3pBvQ8i

Mandatory procedure under Section 148A applies to reassessment initiated on or after 01-04-2021: High Court

INCOME TAX : Mandatory procedure u/s 148A applies to reassessment initiated on or after 1-4-2021

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

Delhi HC justified recovery of tax from director as only small part of tax dues were recovered from Co.

INCOME TAX : Where Assessing Officer passed an order under section 179 against assessee-director of a company to recover tax dues of said company from assessee, since despite all possible efforts made by department only a small part of tax dues could be recovered from company, and there was no other option left for department apart from recovering same from assessee director, impugned order under section 179 passed against assessee was justified

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

Liability to pay ‘sales incentive’ crystalizes on achieving sales target; provision deductible under Sec. 37(1): HC

INCOME TAX : Provision for foreign travel expenses payable, as per binding contract, in respect of dealers/distributors who have achieved sales targets as of 31st March, is not a contingent liability and is deductible u/s 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000318264/liability-to-pay-‘sales-incentive’-crystalizes-on-achieving-sales-target-provision-deductible-under-sec-371-hc.aspx

ITAT has no power to recall its order even if submissions were filed on merits: Supreme Court

INCOME TAX : ITAT has no powers u/s 254(2) to recall its earlier order

from www.taxmann.com Latest Case Laws https://ift.tt/3puiNp1

Borrower who neither paid debt nor replied to notice was to be estopped from challenging violation of Section 13(3A)

FEMA, BANKING amp; INSURANCE : Borrower was sanctioned working capital limit and term loan by Bank. In accordance with terms of loan, Subject Property was mortgaged by Borrower with Bank. Borrower failed to repay loan as per payment schedule as a result of which, loans were declared as a Non-Performing Asset.

from www.taxmann.com Latest Case Laws https://ift.tt/31uiIt0

A common search warrant amp; panchnama issued on two separate Cos operating from a single premise is valid : HC

INCOME TAX : Where warrant of authorization for search issued under section 132(1) was qua 'premises' and not qua 'assessee', common search warrant and common panchnama issued against two assessees who were two separate group companies engaged in different businesses but operating from one premises, was justified

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

Proceeding for finalization of assessment of Bill of entry is not done properly by ‘proper officer’; Matter remanded: CESTAT

EXCISE/ST/VAT : In case of transnational group import, loading of value by lower authority was applied uniformly without reference either to base price of each article of import or of total value of consignment in each bill of entry and appropriate proceedings for finalization of assessment was initiated by 'proper officer'; order of loading was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000318255/proceeding-for-finalization-of-assessment-of-bill-of-entry-is-not-done-properly-by-‘proper-officer’-matter-remanded-cestat.aspx

Credit can't be denied on imported lifts used for construction of building being capital goods: CESTAT

EXCISE/ST/VAT : Lifts used for construction of building remain as capital goods used for providing output service which is not specified in Negative list - Credit admissible

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

No deemed dividend if land was purchased in name of directors for commercial expediency and benefit of Co. : ITAT

INCOME TAX : Where land was purchased by company in name of company and director for commercial expediency and benefit of company and it was not a case that any loan was given to director, addition in his hands invoking provision of section 2(22)(e) was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3ooFw6k

CCI dismisses complaint filed by pharma wholesalers for anti-competitive practices against 17 pharmaceutical Cos.

COMPETITION LAW : CCI dismisses pharma wholesaler's complaints of anti-competitive agreements and abuse of dominance against 17 pharma companies

from www.taxmann.com Latest Case Laws https://ift.tt/3pu2Xuz

CCI dismisses complaint filed by pharma wholesaler’s for anti-competitive practices against 17 pharmaceutical Cos.

COMPETITION LAW : CCI dismisses pharma wholesaler's complaints of anti-competitive agreements and abuse of dominance against 17 pharma companies

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000318260/cci-dismisses-complaint-filed-by-pharma-wholesaler’s-for-anti-competitive-practices-against-17-pharmaceutical-cos.aspx

TDS amount can't be included in taxable value for determining Service Tax liability: CESTAT

EXCISE/ST/VAT : Where TDS amount was borne by assessee-service recipient and only consideration for services as agreed upon by parties was paid to service provider, TDS amount could not be included in taxable value of service

from www.taxmann.com Latest Case Laws https://ift.tt/3lxbU58

CCI holds Chandra Brothers guilty of cartelization in market of axle bearing for manipulating bidding process

COMPETITION LAW : Where OPs were indulged in cartelisation in market of Axle bearings in India by means of determining prices directly or indirectly, allocating markets and manipulating bidding process which had an appreciable adverse effect on competition within India, they were guilty of contravention of provisions of section 3

from www.taxmann.com Latest Case Laws https://ift.tt/3diLn6W

Asset once becomes part of block of assets is eligible for dep. even if it wasn’t used in subsequent years: ITAT

INCOME TAX : Where request for waiver of interest on loan taken by assessee from Government was rejected, said liability towards payment of interest was ascertained in current year and since assessee was following mercantile system of accounting, such interest was to be allowed as deduction under section 36(1)(iii) during year

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317622/asset-once-becomes-part-of-block-of-assets-is-eligible-for-dep-even-if-it-wasn’t-used-in-subsequent-years-itat.aspx

SAT upholds imposition of penalty upon appellants who were connected entities and traded in a synchronized manner

COMPANY LAW/SEBI : Where investigating authority had issued summons to appellant companies requiring them to furnish information regarding implementation status of all corporate announcements made by them, but no details were submitted by appellants, moreover, most of announcements were not implemented, there was non-compliance of summons and failure to disclose non-implementation of corporate announcements,

from www.taxmann.com Latest Case Laws https://ift.tt/3xPLL6j

Department can't import time limit for availing credit which is not statutorily stipulated in law: CESTAT

EXCISE/ST/VAT : Time-limit for availing Cenvat being prescribed w.e.f. 11-7-2014 vide Notification No 21/2014-CE (NT), department cannot import time limit for availing credit prior to said Notification

from www.taxmann.com Latest Case Laws https://ift.tt/3Ie5C3T

Assessment framed after search not valid if no incriminating documents were found or seized during search: HC

INCOME TAX : Where assessment order passed under section 153A did not refer to any document unearthed during course of search, assumption of jurisdiction under section 153A for reopening of assessment was without legal basis

from www.taxmann.com Latest Case Laws https://ift.tt/31klcdp

CIT can’t reject revision petition without providing an affordable hearing opportunity to assessee: HC

INCOME TAX : Where Commissioner rejected revision preferred by assessee under section 264 merely on ground that assessee failed to submit any reply in revision filed by him, impugned order being a non-speaking order was to be set aside and matter was to be remanded for reconsideration after affording assessee opportunity of hearing

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317495/cit-can’t-reject-revision-petition-without-providing-an-affordable-hearing-opportunity-to-assessee-hc.aspx

Invoking of non-compete clause to restrict informant from re-entering business wasn’t abuse of dominance: CCI

COMPETITION ACT : Where informant had entered into sale of buses (assets) agreement with OP and grievance of informant was that he was restricted by OP from re-entering into business of running of buses by invoking non-compete clause of said agreement, however, informant had not been able to place any material wherefrom any entry barrier could be deciphered, there existed no prima facie case,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317542/invoking-of-non-compete-clause-to-restrict-informant-from-re-entering-business-wasn’t-abuse-of-dominance-cci.aspx

NCLT compounds offence as Co. had erroneously breached thresholds and no similar offences compounded in last 3 yrs

COMPANY LAW : As per the provisions of section 441(1), compounding can be made of any offence punishable under Act (whether committed by a company or any officer thereof) not being an offence punishable with imprisonment only, or punishable with imprisonment and also with fine, section 441(6) also reiterates that any offence which is punishable under Act with imprisonment only or with imprisonment and also with a fine shall not be compounded

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

Income generated by trust during pendency of its Sec. 12A registration is also eligible for exemption: ITAT

INCOME TAX : Where assessee-trust, engaged in social and religious activities, was denied exemption under section 11 on ground of non-registration under section 12A, however, during pendency of appeal filed by assessee before CIT (A) against same, assessee obtained registration under section 12A, assessee’s case would be covered under deemed registration and, thus, assessee would be entitled to claim exemption under section 11

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

Fare hiked during Covid-19 pandemic to discourage unnecessary travel didn’t amount to abuse of dominance by Railways

COMPETITION LAW : Where informant, law students filed information alleging that Indian Railways were charging higher ticket fares under garb of COVID-19 pandemic, which amounted to abuse of dominant position in contravention of provisions of section 4, however, Indian Railways had clarified that fares had been increased by it to discourage people undertaking unnecessary travel in COVID pandemic, there being no prima facie case, information was directed to be closed forthwith

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317405/fare-hiked-during-covid-19-pandemic-to-discourage-unnecessary-travel-didn’t-amount-to-abuse-of-dominance-by-railways.aspx

No sec. 194J TDS is required on charges paid for facilities provided by Stock Exchange to its members : ITAT

INCOME TAX : In view of provisions under section 14A read with rule 8D(iii), only those investments are to be considered for computing average value of investment which yielded exempt income during year

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

Assessee can't be asked for making pre-deposit against an erroneous demand of service tax: SC

EXCISE/ST/VAT: Where impugned demand/assessment itself is erroneous in view of undisputed fact that services provided by appellant assessee are not covered commercial training or coaching services so as to become liable to pay tax, assessee cannot be asked for making pre-deposit against an erroneous demand

from www.taxmann.com Latest Case Laws https://ift.tt/3EeF3cr

Compensation received from builder for its failure to deliver flats in time taxable under head capital gains: ITAT

INCOME TAX : Where assessee entered into a Builder-Buyer Agreement (BBA) for purchasing a villa but on builder's failure of giving possession of villa within stipulated time, BBA was cancelled, compensation received by assessee for such cancellation of BBA was to be treated as a capital receipt and same was chargeable to tax as capital gains

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

CIT(A) can’t make disallowance of interest exp. as same wasn’t subject matter of assessment before AO: ITAT

INCOME TAX : Where issue related to disallowance of interest expenditure incurred by assessee on loan borrowed by it was not subject-matter of assessment before Assessing Officer, impugned order passed by Commissioner (Appeals) disallowing interest expenditure incurred on loan taken by assessee under section 36(1)(iii) was unjustified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315719/cita-can’t-make-disallowance-of-interest-exp-as-same-wasn’t-subject-matter-of-assessment-before-ao-itat.aspx