JUDGEMENT

The Fact That A Scam Has Taken Place In Some Penny Stocks Does Not Mean That All Transactions In Penny Stocks Can Be Regarded As Bogus: ITAT Mumbai

The Fact That A Scam Has Taken Place In Some Penny Stocks Does Not Mean That All Transactions In Penny Stocks Can Be Regarded As Bogus: ITAT Mumbai

In the case of Vijayrattan Balkrishan Mittal vs DCIT, ITAT Mumbai has held that: In deciding whether the claim is genuine or not, the authorities have to be guided by the legal evidence and not on general observations based on statements, probabilities, human behavior, modus operandi etc. The AO has to show with evidence the …

The Fact That A Scam Has Taken Place In Some Penny Stocks Does Not Mean That All Transactions In Penny Stocks Can Be Regarded As Bogus: ITAT Mumbai Read More »

The AO Cannot, After Conclusion of Proceedings u/s 147, Take Aid of Explanation 3 to Section 147 to Make Any Addition u/s 154

The AO Cannot, After Conclusion of Proceedings u/s 147, Take Aid of Explanation 3 to Section 147 to Make Any Addition u/s 154

In the case of JDC Traders Pvt. Ltd vs. DCIT, ITAT Delhi has held that: If we accept the argument of the learned DR that u/s 154 of the Act, ld. AO is empowered to deal with the escapement of income in respect of which the reasons were not recorded even after the assessment reopened …

The AO Cannot, After Conclusion of Proceedings u/s 147, Take Aid of Explanation 3 to Section 147 to Make Any Addition u/s 154 Read More »

Section 56(2)(viia) Cannot Apply to A Foreign Company As Rule 11U(b)(ii) (Prior to 01.04.2019) Which Defines "Balance Sheet‟ Was Not Applicable to a Foreign Company: ITAT Mumbai

Section 56(2)(viia) Cannot Apply to A Foreign Company As Rule 11U(b)(ii) (Prior to 01.04.2019) Which Defines “Balance Sheet‟ Was Not Applicable to A Foreign Company: ITAT Mumbai

In the case of Keva Industries Pvt. Ltd vs ITO, ITAT Mumbai has held that: We hold that since the shares of a foreign company were acquired by the assessee company in the instant case, the ld AO ought to have relied on the balance sheet as audited by the auditor appointed under the Indian …

Section 56(2)(viia) Cannot Apply to A Foreign Company As Rule 11U(b)(ii) (Prior to 01.04.2019) Which Defines “Balance Sheet‟ Was Not Applicable to A Foreign Company: ITAT Mumbai Read More »

Mistake of Counsel May Be Taken Into Account in Condoning Delay: ITAT Amritsar

Mistake of Counsel May Be Taken Into Account in Condoning Delay: ITAT Amritsar

In the case of Bhagwati Colonizers Pvt. Ltd vs ITO, ITAT Amritsar has held that: When an assessee authorizes a counsel to appear on his behalf, such authorization is given by placing faith on the legal expertise of the Counsel and also with the hope that the counsel shall take care of the interest of …

Mistake of Counsel May Be Taken Into Account in Condoning Delay: ITAT Amritsar Read More »

Very Important Judgement on Auto Cancellation of GST Registration of Recipient on Default of the Supplier

In the case of Bright Star Plastic Industries Vs Additional Commissioner of Sales Tax, Orissa High Court has held that: 1.) None of the circumstances outlined in given under rule 21 are attracted in the present case. Rule 21 of the OGST Rules reads as under: “21. Registration to be cancelled in certain cases. The …

Very Important Judgement on Auto Cancellation of GST Registration of Recipient on Default of the Supplier Read More »

The Legislative Intent is to Apply Section 56(2)(viib) Where Unaccounted Money Received in Garb of Share Premium

The Legislative Intent is to Apply Section 56(2)(viib) Where Unaccounted Money Received in Garb of Share Premium

In the case of Clearview Healthcare P. Ltd vs ITO, ITAT Delhi has held that: Keeping in view of the facts and circumstances of the case and by applying the principles from the aforesaid decision and legislative intent behind insertion of section 56(2)(viib), I hold that addition made by AO on account of alleged excess …

The Legislative Intent is to Apply Section 56(2)(viib) Where Unaccounted Money Received in Garb of Share Premium Read More »

The Words "In India" Cannot be Read Into Section 54F When Parliament in Its Legislative Wisdom Has Deliberately Not Used the Words: ITAT Bangalore

The Words “In India” Cannot be Read Into Section 54F When Parliament in Its Legislative Wisdom Has Deliberately Not Used the Words: ITAT Bangalore

In the case of Rajasugumar Subramani vs ITO, ITAT Bangalore has held that: Since the Tribunal has taken a view in similar set of facts, we find no justification to take a contrary view in this appeal. Accordingly, following the same, we hold that the assessee is entitled for deduction under section 54F of the …

The Words “In India” Cannot be Read Into Section 54F When Parliament in Its Legislative Wisdom Has Deliberately Not Used the Words: ITAT Bangalore Read More »

Amendment w.e.f. AY 2014-15 Will Not Apply to A Purchase Transaction of Immovable Property For Which Full Consideration is Paid Pre-Amendment: ITAT Ranchi

Amendment w.e.f. AY 2014-15 Will Not Apply to A Purchase Transaction of Immovable Property For Which Full Consideration is Paid Pre-Amendment: ITAT Ranchi

In the case of Bajrang Lal Naredi vs ITO, ITAT Ranchi has held that: It is not in dispute that purchase transactions of immovable property were carried out in FY 2011-12 for which full consideration was also parted with the seller. Mere registration at later date would not cover a transaction already executed in the …

Amendment w.e.f. AY 2014-15 Will Not Apply to A Purchase Transaction of Immovable Property For Which Full Consideration is Paid Pre-Amendment: ITAT Ranchi Read More »

The Tendency to Perceive Delay As A Non-Serious Matter Should be Discouraged: ITAT Delhi

The Tendency to Perceive Delay As A Non-Serious Matter Should be Discouraged: ITAT Delhi

In the case of Boutique Hotels India (P) Ltd vs ACIT, ITAT Delhi has held that: It is not as if mistake of a legal advisor, however, gross and inexcusable, will entitle an assessee to condonation of delay in filing of appeal. The facts of the case are to be examined to ascertain if there …

The Tendency to Perceive Delay As A Non-Serious Matter Should be Discouraged: ITAT Delhi Read More »

The Loss Arising to Assessee for Cancellation of Its Shares Pursuant to Reduction of Capital Should be Allowed as Long Term Capital Loss: ITAT Mumbai

The Loss Arising to Assessee for Cancellation of Its Shares Pursuant to Reduction of Capital Should be Allowed as Long Term Capital Loss: ITAT Mumbai

In the case of Carestream Health Inc vs DCIT, ITAT Mumbai has held that: The ld DR vehemently argued that the percentage of shareholding remains the same because reduction of shares had happened for all shareholders. We find that the ld DR relied on para 24 of the judgement of Special Bench of Mumbai Tribunal …

The Loss Arising to Assessee for Cancellation of Its Shares Pursuant to Reduction of Capital Should be Allowed as Long Term Capital Loss: ITAT Mumbai Read More »

The Only Requirement For Granting Registration Under Section 11/ 12AA of the Income Tax Act is That The Objects of The Society Should be Charitable in Nature and Activities are Genuine: ITAT Amritsar

The Only Requirement For Granting Registration Under Section 11/ 12AA of the Income Tax Act is That The Objects of The Society Should be Charitable in Nature and Activities are Genuine: ITAT Amritsar

In the case of Shri Dhar Sabha Vaishno Devi vs CIT(E), ITAT Amritsar has held that: 23.) In the instant case, the Ld. CIT(E) denied the registration by observing that the head of the society is restricted to be from Shree Dhar Vansh and no other member of the Sabha will have any right to …

The Only Requirement For Granting Registration Under Section 11/ 12AA of the Income Tax Act is That The Objects of The Society Should be Charitable in Nature and Activities are Genuine: ITAT Amritsar Read More »

Where the Deductor has Deducted Tax at Source But Has Not Deposited the Tax with the Government, the Assessee Cannot be Made to Suffer: ITAT Delhi

Where the Deductor has Deducted Tax at Source But Has Not Deposited the Tax with the Government, the Assessee Cannot be Made to Suffer: ITAT Delhi

In the case of Aricent Technologies Holdings Ltd vs. ACIT, ITAT Delhi has held that: As held by the Gauhati High Court in the course of Omprakash Gattani (supra), once the mode of collecting tax by deduction at source is adopted, that mode alone is to be adopted for recovery of tax deducted at source. …

Where the Deductor has Deducted Tax at Source But Has Not Deposited the Tax with the Government, the Assessee Cannot be Made to Suffer: ITAT Delhi Read More »

A Representative Office of a Foreign Enterprise is Not a Taxable Unit. Foreign Enterprise is the Taxable Unit: ITAT Mumbai

A Representative Office of a Foreign Enterprise is Not a Taxable Unit. Foreign Enterprise is the Taxable Unit: ITAT Mumbai

In the case of DZ Bank AG – India Representative Office vs. DCIT, ITAT Mumbai has held that: 30.) In the light of the above discussions, as also bearing in mind entirety of the case, it is clear that, on the facts and in the circumstances of this case and in law, there is no …

A Representative Office of a Foreign Enterprise is Not a Taxable Unit. Foreign Enterprise is the Taxable Unit: ITAT Mumbai Read More »

An Indian Taxpayer is Not Entitled to Claim Refunds From the Government of India of Taxes Paid Outside India: ITAT Mumbai

An Indian Taxpayer is Not Entitled to Claim Refunds From the Government of India of Taxes Paid Outside India: ITAT Mumbai

In the case of Bank Of India vs ACIT, ITAT Mumbai has held that: 80.) To sum up, the assessee is declined the foreign tax credits for Rs 182,64,22,948, and, accordingly, we hold that the assessee is not entitled to seek a refund of that money from the Indian tax exchequer. As we hold so, …

An Indian Taxpayer is Not Entitled to Claim Refunds From the Government of India of Taxes Paid Outside India: ITAT Mumbai Read More »

Order of the AO Imposing Penalty on Assessee Under Section 271AAB of the Income Tax Act Does Not Pass the Mandate of the Provisions of Section 271AAB of the Act. So Appeal of the Assessee is Allowed: ITAT Patna

Order of the AO Imposing Penalty on Assessee Under Section 271AAB of the Income Tax Act Does Not Pass the Mandate of the Provisions of Section 271AAB of the Act. So Appeal of the Assessee is Allowed: ITAT Patna

In the case of Shiv Bhagwan Gupta vs ACIT, ITAT Patna has held that: “The assessee has filed return u/s 139 showing income of Rs. 2808270/-The assessee has disclosed income of Rs.2179221/- during the year on account of undisclosed jewellery. Penalty u/s 271AAB is initiated.” A perusal of the above reproduced relevant part of the …

Order of the AO Imposing Penalty on Assessee Under Section 271AAB of the Income Tax Act Does Not Pass the Mandate of the Provisions of Section 271AAB of the Act. So Appeal of the Assessee is Allowed: ITAT Patna Read More »

Assessing Officer Withheld the Refund Without Assigning the Reason Which is Required by Law. So the Petition of the Assessee is Allowed: Calcutta High Court

Assessing Officer Withheld the Refund Without Assigning the Reason Which is Required by Law. So the Petition of the Assessee is Allowed: Calcutta High Court

In the case of Mcnally Sayaji Engineering vs Assistant Commissioner, Calcutta High Court has held that: Following the principle laid down in the judgment reported in Nazir Ahmad vs. King Emperor AIR 1936 PC 253, “if a statute provides an act to be done by a particular authority and in a particular manner, it should …

Assessing Officer Withheld the Refund Without Assigning the Reason Which is Required by Law. So the Petition of the Assessee is Allowed: Calcutta High Court Read More »

There is No Employer- Employee Relationship If Doctor is Paid on the Basis of Patients Attended: ITAT

There is No Employer- Employee Relationship If Doctor is Paid on the Basis of Patients Attended: ITAT

In the case of DCIT vs Sir Hurkisondas Nurrotumdas Hospital & Research Centre, ITAT Mumbai has held that: Going by the factual matrix as enumerated in the preceding paragraphs, it could be noted that the terms of arrangement with consultant Doctors was different from employee-doctors. The consultant doctors were paid based on the services rendered …

There is No Employer- Employee Relationship If Doctor is Paid on the Basis of Patients Attended: ITAT Read More »

Only Amount Reflected in Form 26AS Does Not Mean that Assessee is the Actual Beneficiary Unless It is Established: ITAT

Only Amount Reflected in Form 26AS Does Not Mean that Assessee is the Actual Beneficiary Unless It is Established: ITAT

In the case of Dr Swati Mahesh Vinchurkar vs DCIT, ITAT Surat bench has held that: We have considered the rival submissions of the parties and have gone through the orders of the lower authorities carefully. There is no dispute that the assessee is resident of Surat. The assessee is qualified Doctor being Pediatric (Child …

Only Amount Reflected in Form 26AS Does Not Mean that Assessee is the Actual Beneficiary Unless It is Established: ITAT Read More »

As the Activities of the Assessee are Under the Statutory Obligation under Development Act 1973, The Activities Can Not be Treated as Trade, Commerce or Business: ITAT Agra

As the Activities of the Assessee are Under the Statutory Obligation under Development Act 1973, The Activities Can Not be Treated as Trade, Commerce or Business: ITAT Agra

In the case of Agra Development Authority vs DCIT, ITAT Agra has held that after respectfully following the decision of the coordinate bench in the matter of JHANSI DEVELOPMENT AUTHORITY (supra) we hold that the assessee activities like Income from sale of plots/ lands, Freehold conversion income, interest income from instalments, development charges, building plan …

As the Activities of the Assessee are Under the Statutory Obligation under Development Act 1973, The Activities Can Not be Treated as Trade, Commerce or Business: ITAT Agra Read More »

The Commissioner has to Re-Examine the Application of the Assessee Because He Rejected the Assessee's Application Without the Opportunity of Being Heard: ITAT Agra

The Commissioner has to Re-Examine the Application of the Assessee Because He Rejected the Assessee’s Application Without the Opportunity of Being Heard: ITAT Agra

In the case of Aashray vs CIT (Exemption), ITAT Agra has held that: The appeal of the assessee is allowed for statistical purposes, the Commissioner (exemption) is directed to examine the objects of the assessee and find out whether the objects of the assessee are charitable in nature or not on the basis of the …

The Commissioner has to Re-Examine the Application of the Assessee Because He Rejected the Assessee’s Application Without the Opportunity of Being Heard: ITAT Agra Read More »

CIT Has Rejected the Appeals Without Hearing the Assessee, So We are Giving Opportunity of Being Heard to the Assessee: ITAT Agra

CIT Has Rejected the Appeals Without Hearing the Assessee, So We are Giving Opportunity of Being Heard to the Assessee: ITAT Agra

In the case of Smt. Poonam Shivhare vs A.C.I.T., ITAT Agra has held that Having carefully examined the order of the CIT(A) in the aforesaid cases, we find that the CIT(A) has rejected the appeals without hearing the assessee, although, he has discussed the issue on merits. In the light of these facts, we are …

CIT Has Rejected the Appeals Without Hearing the Assessee, So We are Giving Opportunity of Being Heard to the Assessee: ITAT Agra Read More »

Must Read: Assessee Gets Relief From ITAT Agra Due to Word "May" as Used in Section 69 of the Income Tax Act [Read Order]

Must Read: Assessee Gets Relief From ITAT Agra Due to Word “May” as Used in Section 69 of the Income Tax Act [Read Order]

In the case of Smt. Uma Agarwal vs ITO, ITAT Agra has held that: The word “ may” had been used by the statute under section 69A, as had been used by the statute under section 69 of the Income Tax Act 1961, therefore applying the same analogy as laid down by SC in the …

Must Read: Assessee Gets Relief From ITAT Agra Due to Word “May” as Used in Section 69 of the Income Tax Act [Read Order] Read More »

Assessee Can Claim Refund of Service Tax Paid Belatedly Under RCM After Implementation of GST: CESTAT [Read Order]

Assessee Can Claim Refund of Service Tax Paid Belatedly Under RCM After Implementation of GST: CESTAT [Read Order]

NSSL (P.) Ltd. vs Commissioner of Central Excise, CGST & CE, Nagpur Briefly stated, the facts of the case are that the appellant herein is engaged inter alia, in the manufacture of Industrial valves, spares parts of valve and components etc., falling under Chapter heading 84, 87 of the First Schedule to the CentralExcise Tariff Act, 1985. …

Assessee Can Claim Refund of Service Tax Paid Belatedly Under RCM After Implementation of GST: CESTAT [Read Order] Read More »

Contribution Towards ESI and PF are Deposited Before the Due Date Under Section 139(1). So No Disallowance Should Occur in Assessment: Jodhpur ITAT

Contribution Towards ESI and PF are Deposited Before the Due Date Under Section 139(1). So No Disallowance Should Occur in Assessment: Jodhpur ITAT

In the case of U and T Tractor Spares Private Limited Jodhpur, the Jodhpur ITAT has held that the employees’s contribution amounting to Rs 425,722/- towards ESI and PF which have been collected by the assessee from its employees have been deposited well before the due date of filing of return of income u/s 139(1) …

Contribution Towards ESI and PF are Deposited Before the Due Date Under Section 139(1). So No Disallowance Should Occur in Assessment: Jodhpur ITAT Read More »

Employees will not have to pay GST on payment of canteen facility

GST will not be levied on canteen charges collected from employees

GST will not be levied on the amount paid by the employees for the canteen facility. The Advance Decision Authority (AAR) has given this arrangement. Tata Motors had approached the Gujarat Bench of AAR seeking information on whether the nominal amount collected by its employees for the use of canteen facility from them would attract …

GST will not be levied on canteen charges collected from employees Read More »

TAXATION NEWSLETTER

40th Weekly Taxation Newsletter

We thought it would help to give you a sense of what’s available to you by subscribing to this 40th WEEKLY TAXATION NEWSLETTER. ü    Income Tax Updates ü    GST Updates ü    Custom/Excise Updates ü    Important Case Laws ü    International Updates ü    NRI’s Updates  ü    Brain Bites – Do you Know ?    We have been thrilled with the amazing response we received from our passionate …

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One-to-one correlation between output service and input service not required for claiming refund

Case Law General Motors Technical Centre India Pvt. Ltd.  Vs Commissioner of Central Tax [Service Tax Appeal No. 20400 of 2020, dated April 1, 2021] Facts of the Case :- Appellant (General Motors Technical Centre India Pvt. Ltd ) is registered with the Service Tax Department and is engaged in providing Consulting Engineer Services to their …

One-to-one correlation between output service and input service not required for claiming refund Read More »

Today is last dates for filing returns under these categories

Update- GST on Gold

Goods and Services Tax (GST) will have to be paid only for profit on resale of old or second hand gold jewellery. This arrangement has been given by the Authority of Advance Ruling (AAR) of Karnataka. Aadya Gold Pvt Ltd, based in Bengaluru, the capital of Karnataka, had filed an application in the AAR. In …

Update- GST on Gold Read More »

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PROCEDURE FOR DELIVERY OF SCN TO BE FOLLOWED (MANDATORY to be followed)

 HIGH COURT JUDGEMENT PROCEDURE FOR DELIVERY OF SCN TO BE FOLLOWED (MANDATORY to be followed)  (Madhya Pradesh HC – Ram Prasad Sharma Vs Chief Commissioner) Facts – The Petitioner had received Show Cause Notice (SCN) to their e-mail address which was not uploaded on the GST portal [Rule 142(1) of CGST Rules]. Contention – The …

PROCEDURE FOR DELIVERY OF SCN TO BE FOLLOWED (MANDATORY to be followed) Read More »