Tax
IGST Refund On Exported Goods Being Zero Rated Supplies Admissible As Excess Drawback Repaid: Gujarat High Court
The Gujarat High Court has ruled that the surplus drawback resulting from the utilization of the Cenvat Credit facility was repaid along with interest, and thus, the refund of Integrated Goods and Services Tax (IGST) paid on goods and services for exported goods, classified as zero-rated supplies, is deemed eligible.The petitioner, ADF Foods Ltd., challenged the inaction on the part of...
Jharkhand High Court Rules In Favor of Revenue In Clean Energy Cess Case
The Jharkhand High Court has ruled in favor of the Revenue in a case involving the demand for Clean Energy Cess on coal production.The petitioner, a subsidiary of Coal India Limited and a Category-I Mini Ratna Company since 2007, had challenged the order dated 29.09.2020 passed by respondent no. 3, the Principal Commissioner, Goods & Services Tax-CX, Ranchi. In the said order, respondent...
Punjab And Haryana High Court Quashes Section 69 Addition On HSBC Geneva Deposits As Sufficient Explanation About Source Of Investments Given On Affidavit
The Punjab and Haryana High Court has quashed the addition under Section 69 of the Income Tax Act on HSBC Geneva deposits as a sufficient explanation about the source of investments given in the affidavit.The bench of Justice G.S. Sandhawalia and Justice Harpreet Kaur Jeewan have observed that the explanation offered by the Assessee that the amount in the bank account belonged to his nephew...
Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically
The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically.The bench of Justice Ravi Nath Tilhari and Justice A V Ravindra Babu has observed that the petitioner’s plea to read down the provisions of Rule 41 of the CGST Rules and to direct to accept the manual...
No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court
The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP).The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the deductee (petitioner) followed the regime framed in the Act for collecting TAS through an agent (Ninex) of...
Section 245C(5) Of Income Tax Act Is Read Down By Removing Retrospective Last Date Of 1st Feb 21 As 31st March 21: Madras High Court
The Madras High Court has held that Section 245C(5) of the Income Tax Act, 1961 (as amended by the Finance Act, 2021) is read down by removing the retrospective last date of the 1st February 2021, as the 31st March 2021.The bench of Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy has observed that the Finance Act, 2021, was retrospective in nature. Those who have had...
Department Required To Serve Notice Upon Legal Representative Of Deceased Before Proceeding Under GST Act: Allahabad High Court
The Allahabad High Court has held that the Goods and Service Tax Department is required to serve notice upon the legal representative of a deceased before proceeding against the deceased under the Central Goods and Service Tax Act, 2017.Petitioner’s husband was the sole proprietor of the firm was engaged in providing services as a Consultant. A show cause notice was issued in the name...
No Reason To Believe Income Chargeable To Tax Escaped Assessment: Gujarat High Court Quashes Income Tax Notice
The Gujarat High Court in a recent ruling underscored the importance of tangible evidence and a valid reason to believe that income has escaped assessment in a significant decision regarding the validity of reopening assessments based on reasons lacking a direct connection between the taxpayer and the disputed transaction.Justice Biren Vaishnav and Bhargav D Karia observed, “Perusal of...
Gujarat High Court Quashes FIR Against Chartered Accountant Firm In GSLDC Scam
The Gujarat High Court has quashed the First Information Report (FIR) against a Chartered Accountant firm in connection with the Gujarat State Land Development Corporation Limited (GSLDC) Scam.The court emphasized that the firm's role was confined to auditing vouchers and records, and it was not directly implicated in the misconduct associated with the Khet Talavadi project, the focal point...
Income Tax Act | 35(2ab) Deduction Can't Be Denied For Failure Of Authority To Send Intimation: Gujarat High Court Upholds ITAT Decision In Schaeffler India Ltd's Tax Appeal
In a recent ruling by the Gujarat High Court, it has been held that the deduction under Section 35(2AB) of the Income Tax Act cannot be denied merely due to the failure of the authority to send intimation.The decision came in response to an appeal filed by the Revenue against the order of the Income Tax Appellate Tribunal 'C' Bench, Ahmedabad, pertaining to the assessment year 2016-17.As...
Primary Facts Necessary For Assessment Fully & Truly Disclosed, AO Not Entitled To Change Opinion For Reassessment: Bombay High Court
The Bombay High Court has held that the primary facts necessary for assessment are fully and truly disclosed, and the Assessing Officer is not entitled, on change of opinion, to commence proceedings for reassessment.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that even if the Assessing Officer, who passed the assessment order, may have raised too many...
Reassessment On Suspicion To Enquire Further Is Unsustainable: Gujarat High Court
The Gujarat High Court has delivered a significant ruling, asserting that reassessment on suspicion for making further inquiry is unsustainable under section 148 of the Income Tax Act.The division bench of Justices Biren Vaishnav and Bhargav D Karia observed, “The reassessment was also therefore based on suspicion. As pointed out by learned Senior Counsel Mr.Hemani, that factors that...