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

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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

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