Tax
Credit Cannot Be Blocked In Electronic Credit Ledger If Sufficient Balance Not Available: Gujarat High Court
The Gujarat High Court stated that there cannot be any blocking of the credit in electronic credit ledger if there is no sufficient balance available. The Division Bench, comprising Justices Bhargav D. Karia and Niral R. Mehta, was hearing a case where the assessee contested the blocking of Input Tax Credit (ITC) amounting to ₹2,44,05,567 in its electronic credit ledger....
Exporter Is Eligible For Duty Drawback Once Export Proceeds Are Realized Within Stipulated Period As Per FEMA: Delhi HC
Finding that the payments were received by the bank from third parties, specifically named in the tripartite agreement, which was backed by a firm irrevocable purchase order, the Delhi High Court ruled that duty drawback could not be denied to an exporter. Since the e-BRCs were issued by the DGFT after verification from the bank confirming the receipt of payments, the High Court...
S.27A Customs Act | Interest On Delayed Refund Is Payable After Three Months Of Date Of Refund Application, Not From Date Of Order: Bombay HC
Pointing that the Department has delayed the refund on customs duty that was due & payable to assessee for almost ten years, the Bombay High Court ruled that such action of Department in avoiding the payment of interest on delayed refund by raising frivolous pleas, cannot be sustained. Referring to Supreme Court decision in Union of India Vs. Hamdard (Waqf) Laboratories [AIR 2016...
Revenue Shared With Franchise Doesn't Attract TDS Liability U/S 194-I If No Actual Services Were Rendered: Delhi ITAT
The Delhi ITAT ruled that TDS u/s 194-I has no application on the franchise fee, if the franchisee/collaborator does not render any service, and claim of expenditure is nothing but sharing of revenue in accordance to the agreement undertaken by the parties. Section 194I of Income tax Act imposes an obligation for TDS deduction on persons (other than individual/HUF who are not subject...
HC Upholds J&K Govt's Decision To Withdraw Budgetary Support Scheme 2018 For Reimbursement Of IGST To Manufacturing Units
The Jammu and Kashmir and Ladakh High Court has upheld the UT government's decision to withdraw the 'Budgetary Support Scheme', notified in the year 2018 for providing budgetary support to manufacturing units in the UT, by reimbursement of Integrated Goods and Service Tax. A division bench of Justices Sanjeev Kumar and Rajesh Sekhri observed that the Scheme did not create any...
Assessee Who Forgot To Claim 'Long Term Capital Loss' In Income Tax Return Can Seek Revision U/S 264: Gujarat High Court
The Gujarat High Court recently allowed an assessee, who failed to claim 'Long Term Capital Loss' in its Income Tax return, to seek revision under Section 264 of the Income Tax Act, 1961. A division bench of Justices Bhargav D. Karia and Mauna M. Bhatt also reiterated that a Commissioner has to decide an assessee's revision application under Section 264, on...
Deduction U/S 80-IA Is Eligible For Industrial Undertakings Even If Infrastructural Development Is Performed With State's Nodal Agency: Calcutta HC
The Calcutta High Court recently confirmed the deduction u/s 80IA(4) to an Infrastructural development company, regarding development of a mechanised port handling system by entering into an agreement with a nodal agency recognised by the Andhra Government. The Division Bench comprising Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya observed that deduction u/s...
Taxpayer Can't Be Denied ITC For Merely Filing GST Form Manually If Functionality Issues Are Attributable To Dept: Bombay High Court
Recently, an issue cropped up, where it was emphasized that technicalities created by the Department and not the taxpayer, should not be put forth by the department to defeat the statutory rights and entitlement of the taxpayers.The Bombay High Court ruled that concerned Revenue officials (Respondent) cannot deny the benefits of accrued ITC (input tax credit) to the assessee (Petitioner)...
S. 119(2)(b) Income Tax Act | Gujarat HC Directs Commissioner To Avoid Pedantic Approach, Condone One Year Delay In Filing Return
The Gujarat High Court recently allowed the petition preferred by a woman seeking to condone over one year delay in filing of her income tax return for an assessment year. A division bench of Justices Bhargav D. Karia and Mauna M. Bhatt also criticized the “pedantic approach” in deciding Petitioner's application under section 119(2)(b) of the Income Tax Act,...
Assessee Can't Claim ITC For Transportation If Costs Aren't Included In Assessable Value Of Goods For Payment Of Central Excise Duty: Kerala HC
The Kerala High Court stated that assessee cannot claim input tax credit for transportation services if transportation costs are not included in assessable value of goods for payment of central excise duty. The Division Bench of Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M. observed that “………the assessee did not include the transportation costs in the assessable value...
Allotment Letter By Developer Shall Be Treated As 'Construction' For Benefit Of Set-Off Of Capital Gains U/S 54: Kolkata ITAT
Referring to the CBDT Circular No. 872 dated Dec 16, 1993, the Kolkata ITAT clarified that allotment of flats/houses by Cooperative Societies and other Institutions whose scheme of allotment and construction are similar to Delhi Development Authority (DDA) should be treated as 'construction' for purpose of Section 54 and 54F. While treating the allotment letter by the developer...
Entity Operating, Developing, And Maintaining Infrastructure Facility Is Eligible For Benefit U/S 80IA Of IT Act: Pune ITAT
Referring to the decision of CIT vs. ABG Heavy Industries Ltd. (2010) 322 ITR 323, the Pune ITAT reiterated that an enterprise can claim deduction u/s 80IA if it develops, operates and maintains the infrastructure facility, subject to commencement of operation & maintenance of the infrastructure facility after April 01, 1995. The Bench of R.K. Panda (Vice President) and...