Direct Tax Weekly Round-Up: 23 To 29 June 2024

Update: 2024-06-30 06:05 GMT
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Calcutta High CourtRaising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property TaxCitation: 2024 LiveLaw (Cal) 149Case Title: Saila Ghosh Versus State of West BengalThe Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax.Andhra Pradesh High...

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Calcutta High Court

Raising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property Tax

Citation: 2024 LiveLaw (Cal) 149

Case Title: Saila Ghosh Versus State of West Bengal

The Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax.

Andhra Pradesh High Court

Belated Deposit Of TDS, Andhra Pradesh High Court Quashes Prosecution Against Assessee

Citation: 2024 LiveLaw (AP)47

Case Title: M/s Aditya Institute Of Technology And Management Versus The State Of Andhra Pradesh

The Andhra Pradesh High Court has quashed the prosecution proceedings launched against the assessee for belatedly depositing tax deducted at source (TDS).

Assessment Order Passed Against Dead Person Is Nullity: Karnataka High Court

Case Title: Smt. Sowmya S. Versus ITO

The Karnataka High Court, while quashing the assessment order, held that the assessment order under Section 147 read with Section 144 of the Income Tax Act amounts to nullity.

ITAT

Orders Sent Through Email Went To Spam Folder; Cuttack ITAT Condones Delay Of 145 Days

Case Title: Tirupati Prasad Sahu Versus ITO

The Cuttack Bench of Income Tax Appellate Tribunal (ITAT) has condoned the delay of 145 days in filing an appeal by the assessee on the ground that the assessee mistakenly did not receive the orders sent through email, as many of these orders are going to spam folders.

Due Date For Filing Form 10AB Extended By CBDT; Bangalore ITAT Quashes Order Rejecting Section 80G Approval

Case Title: Carers World Wide Versus The Commissioner of Income Tax (Exemptions)

The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has quashed the order rejecting the approval under Section 80G of the Income Tax Act as the Central Board of Direct Taxes (CBDT) has extended the due date for filing Form 10A/10AB via press release dated April 25, 2024, to June 30, 2022.

Wrong Classification In ITR Can't Result Into Denial In Deduction: Chennai ITAT

Case Title: National Contracting Company Versus DCIT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the claim of the assessee cannot be denied for the reason that a deduction was mentioned in the wrong classification in the ITR, especially in the circumstances where all other evidence is available on record suggesting the deduction in pursuance of the provisions of Section 43B is available.

Co. Op. Banks Are Co. Op. Societies In Banking Business; Delhi ITAT Allows Section 80P(2)(d) Deduction

Case Title: Grand Paradi Co-op Housing Vs. Society Ltd. Versus The Income Tax Officer

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P(2)(d) of the Income Tax Act to the Grand Paradi Co-op Housing Society and held that cooperative banks are cooperative societies that are doing banking business.

Exhibition By Gem And Jewellery Export Promotion Council, Not Trade And Commerce: Mumbai ITAT

Case Title: Dy. Commissioner of Income-Tax Versus The Gem And Jewellery Export Promotion Council

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the exhibitions conducted by the assessee, the Gem and Jewellery Export Promotion Council, are not in the nature of trade and commerce.

Notice Sent On Incorrect Email Addresses Constitutes Improper Service: Ahmedabad ITAT

Case Title: LMP Motors Private Limited Versus ACIT

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the notices were sent to an incorrect email address, which led to the non-receipt of the notices by the assessee.

Non Service Of Hearing Notice Invalidates Ex-Parte Order: Kolkata ITAT

Case Title: M/s Littlestar Projects Pvt. Ltd vs. ITO

Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority.

Employer Can't Claim Benefit Of Sec 36(1)(Va) If He Fails To Deposit Employees' Contribution To PF Within Due Date: Kolkata ITAT

Case Title: Supreme & Co. Pvt. Ltd vs. DCIT

The Kolkata ITAT held that delayed deposit of amount collected towards employees' contribution to PF renders claim of deduction u/s 36(1)(va) ineligible.

Purchaser Is Eligible To Claim Depreciation On Excess Amount Paid Over & Above Net Asset Value Of Seller's Business: Bangalore ITAT

Case Title: DN Solutions (India) Private Limited vs. ITO

The Bangalore ITAT held that once the Department has accepted the capital gain offered by the seller upon transfer of its business, then said transaction cannot be doubted in the hands of the purchaser.

Payment By Indian Entity To Its AE Abroad Is Not 'FTS' If Technical Skill Is Not Made Available By AE: Bangalore ITAT

Case Title: Herbalife International India vs. DCIT

The Bangalore ITAT held that payment made by Assessee (Indian entity) to its foreign AE (Parent entity) for obtaining administrative services will not be taxable as FTS/FIS in India in terms of Indo USA DTAA, in absence of 'make available' clause in the agreement between both the parties.

Rejection Of Belated Objections By DRP Does Not Extend Limitation Of Passing Final Assessment U/s 144(4): Delhi ITAT

Case Title: Ares Diversified vs. ACIT

The New Delhi ITAT held that once the DRP has chosen to reject the objections of assessee on the ground of delay, its resultant effect is confirmation of merits of draft order passed by the AO.

Net Profit Shall Be Estimated @2.75% Of Total Turnover In Case Its Rate Is Highest In First Year Of Operation: Cuttack ITAT

Case Title: Bankula Jaga Reddy vs. ITO

Finding that the assessee has shown highest rate of net profit in its first year of business, the Cuttack ITAT directed for estimation of net profit @2.75% on the total turnover of the assessee after reduction of the airport rent cost, sheet cost and truck rent cost as there is no possibility of assessee earning any income out of the said expenses.

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