Tax
Assumption Of Jurisdiction Based On Wrong Facts Can't Form Basis For Initiating Reopening: Mumbai ITAT
The Mumbai ITAT there is no question of concealment of fact when the assessee had itself declared the income in its return which was assumed by the AO to be an escaped income. Hence, the ITAT clarified that assumption of jurisdiction based on wrong facts, cannot form basis for initiating reopening. The Division Bench of Anikesh Banerjee (Judicial Member) and Prashant...
Loans Brought Forwarded Can't Form Basis For Addition In Current Year if Genuineness Is Established: Mumbai ITAT
Finding that the genuineness of loan transactions is not verified by the Income tax Authorities, the Mumbai ITAT held that no additions are permitted on account on unsecured loans by disregarding the confirmations & identity of loan creditors produced by assessee. The Divisional Bench of Anikesh Banerjee (Judicial Member) and Prashant Maharishi (Accountant Member) observed...
Cash Deposits During Demonetization Alone Is No Basis To Make Addition In Absence Of Glaring Error In Books: Mumbai ITAT
Finding that cash sales as part of the trading result offered for taxation by the assessee is not disputed, the Mumbai ITAT held that addition is permitted on account of cash deposit during demonetization on mere allegation that books of account are manipulated without its rejection. The Bench presided by Prashant Maharishi (Accountant Member) observed that “Mere cash deposit or...
'Reasons To Believe' For Reopening Must Based On Credible Information : Kolkata ITAT
While quashing the reopening proceedings, the Kolkata ITAT held that any allegation of escapement of income must be backed by information expressing 'reason to believe' and such belief requires to be based on some credible or relevant material. The ITAT clarified that mere borrowed satisfaction from Investigation Wing is no justified ground for initiating reopening, when no...
Additions Can't Be Made In Cases Of Unabated Assessments Without Incriminating Material: Mumbai ITAT
The Mumbai ITAT held that no addition can be made by AO in respect of completed/unabated assessments, in absence of any incriminating material found during the course of search u/s 132 or requisition u/s 132A. Section 132A of Income tax Act empowers income tax authorities to carry out a search and seizure of books of accounts, documents, cash & jewellery. Referring to...
Merely Because The Transactions Are Made Through Banking Channel Does Not Itself Prove The Creditworthiness
The Mumbai ITAT held that merely because the transactions are made through banking channel does not itself prove the creditworthiness of the lender and genuineness of the transaction. The Bench of Prashant Maharishi (Accountant Member) observed that “Subsequent repayment of the accommodation entry naturally does not show that the originally credit is genuine and provider of the...
Final Assessment Passed Within Two Days Of Issuing Intimation, Violation Of 143(1) IT Act : Mumbai ITAT
The Mumbai ITAT held that the AO has no jurisdiction to make any adjustment in final assessment order passed u/s 143(3) before thirty days of receiving any response from the assessee on basis of intimation issued u/s 143(1). As per Section 143 of the Income tax Act, the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where...
CESTAT Weekly Round-Up: 7 To 13 July 2024
Black Sand Not A By-Product, Just A Waste; CESTAT Quashes Excise DutyCase Title: M/s. Ashok Leyland Ltd. Versus Commissioner of GST & Central ExciseThe Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has clearly erred in fastening the appellant with duty liability on black sand, which was not manufactured.Assessee Entitled To Cash Refund Of Cenvat Credit...
Direct Tax Weekly Round-Up: 7 To 13 July 2024
Delhi High CourtLoans Extended By NOIDA Is Not Commercial Activity, Eligible For Section 10(46) Exemption: Delhi High CourtCase Title: New Okhla Industrial Development Authority Versus Union Of India & Ors.The Delhi High Court has held that the loans and advances extended by the New Okhla Industrial Development Authority (NOIDA) are not commercial activities and are eligible for...
Indirect Tax Weekly Round-Up: 7 To 13 July 2024
Delhi High CourtUploading Of Notices By GST Department Under Heading 'Additional Notices' Is Sufficient Service: Delhi High CourtCase Title: Kamla Vohra Versus Sales Tax OfficerThe Delhi High Court has held that the uploading of notices by the GST department under the heading 'additional notices' amounts to sufficient service.Bombay High Court Bombay High Court Quashes Customs Duty...
Once Revision Order Become Final, No Question Of Passing Another Order Will Arise: Meghalaya High Court
The Meghalaya High Court has held that once the revision order becomes final, no question of passing another order will arise.The bench of Chief Justice S. Vaidyanathan and Justice W. Diengdoh has observed that the Assessing Officer had passed an order under Section 263 of the Income Tax Act, 1961, which was set aside by the Principal Commissioner of Income Tax, Shillong. The order...
Uploading Of Notices By GST Department Under Heading 'Additional Notices' Is Sufficient Service: Delhi High Court
The Delhi High Court has held that the uploading of notices by the GST department under the heading 'additional notices' amounts to sufficient service.The bench of Justice Vibhu Bakhru and Justice Sachin Datta, while remanding the matter to the authority to adjudicate the Show Cause Notice afresh, observed that the GST Authorities had addressed the issue and had re-designed the portal to...