Assessees Claim For ITC Cannot Be Denied For Being Disadvantageous To State Exchequer: Karnataka HC Clarifies Principles On Input Tax Credit Claims
2 weeks, 1 day ago

Assessees Claim For ITC Cannot Be Denied For Being Disadvantageous To State Exchequer: Karnataka HC Clarifies Principles On Input Tax Credit Claims

Live Law  

The Karnataka High Court while laying down vital guidelines on Input Tax Credit stated that if the Assessee during the course of reassessment proceedings makes a claim for Input Tax Credit, the same cannot be disallowed only on the ground that the claim of the Assessee is disadvantageous to the State Exchequer. The Division Bench of Justices Krishna S Dixit and G. Basavaraja observed that ordinarily, the claim for Input Tax Credit has to be made in the Return or Revised Return only. In this case, the Assessee/department had filed his Returns inter alia claiming Input Tax Credit on purchase of goods which were used in the manufacture and sale/stock-transfer. The bench further opined that if the reassessed tax is more than what is payable, then the same has to be recovered from the Assessee along with admissible interest/penalty; as a corollary of this, what is paid is more than what is payable on reassessment, then the claim for Input Tax Credit has to be favoured if that is made before the conclusion of reassessment proceedings.

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History of this topic

HC Admits Central Excise Plea against ITC Input Tax Credit
9 months, 1 week ago

HC Admits Central Excise Plea against ITC Input Tax Credit

Deccan Chronicle  

Hyderabad: A two-judge panel of the Telangana High Court admitted a Central Excise Appeal filed against ITC Ltd for claiming input tax credit for inputs consumed in the manufacture of exempted goods. The appellant contended that the assessee claimed Customs, Excise and Service Tax Appellate Tribunal credit for the inputs used for the manufacture of paper pulp which was exempted …

Assessee Is Eligible For Credit Of TCS Paid U/S 194Q If There Is No Shortfall In Payment Of TDS: Vishakhapatnam ITAT
11 months ago

Assessee Is Eligible For Credit Of TCS Paid U/S 194Q If There Is No Shortfall In Payment Of TDS: Vishakhapatnam ITAT

Live Law  

On finding that there is no short fall of TDS and the assessee is eligible to get credit of the entire amount, the Visakhapatnam ITAT directed the AO to grant credit of the entire amount deducted as tax at source u/s. The Bench noted that Kaccha Arahtias turnover includes only the gross commission and not the sales effected on behalf …

After Amendment Mere Reason To Believe Can't Be Ground For Carrying Out Reassessment: Karnataka High Court
1 year, 1 month ago

After Amendment Mere Reason To Believe Can't Be Ground For Carrying Out Reassessment: Karnataka High Court

Live Law  

The Karnataka High Court has held that the Assessing Officer has to be prima facie satisfied that there is “escapement of income”, unlike earlier law which permitted action based on mere reason to believe. Now mere reason to believe, cannot be a ground for carrying out assessment under section 147 of the Income Tax Act.The bench of Justice Krishna S …

UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court
1 year, 5 months ago

UPGST | For Claiming ITC, Burden On Assesee To Prove Genuineness Of Transaction Beyond Doubt: Allahabad High Court

Live Law  

The Allahabad High Court has held that input tax credit cannot be claimed by an assesee if he has failed to discharge the burden to prove the actual transaction and physical movement of goods beyond doubt. Referring to Section 16 and 74 of the UP Goods and Service Tax Act, 2017, Justice Piyush Agrawal held “it is evident that in …

Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer
1 year, 7 months ago

Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer

Live Law  

The Calcutta High Court has held that before directing the recipient of service or buyer to reverse the input tax credit and remit it to the government, the department ought to have taken action against the selling dealer.The bench of Chief Justice T.S. The Calcutta High Court has held that before directing the recipient of service or buyer to reverse …

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court
2 years ago

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court

Live Law  

The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. The dealer claiming ITC has to prove beyond doubt the actual transaction which can be proved by furnishing the name and …

Credit For TCS Available To Assessee In Whose Hand Income Is Assessed To Tax: ITAT
2 years, 1 month ago

Credit For TCS Available To Assessee In Whose Hand Income Is Assessed To Tax: ITAT

Live Law  

The Bangalore Bench of the Income Tax Appellate Tribunal has reiterated that credit for Tax Collected at Source should be given to the assessee who is finally and lawfully assessed to tax in respect of the income on which TCS has been collected, irrespective of the person in whose name the TCS certificate has been issued. Merely because there is …

Circular Regarding Mismatch Of ITC Is Applicable For 2019-20 In Case Of Identical Errors: Karnataka High Court
2 years, 2 months ago

Circular Regarding Mismatch Of ITC Is Applicable For 2019-20 In Case Of Identical Errors: Karnataka High Court

Live Law  

The Karnataka High Court has held that the circular regarding the mismatch of input tax credit is applicable for 2019–20 in the case of identical errors. "Though the Circular refers only to the years 2017–18 and 2018–19, since there are identical errors committed by the petitioner not only in respect of the assessment years 2017–18 and 2018–19 but also in …

Twin Conditions In Section 10B (8) Income Tax Act Has To Be Fulfilled To Claim Exemption Relief: Supreme Court
2 years, 8 months ago

Twin Conditions In Section 10B (8) Income Tax Act Has To Be Fulfilled To Claim Exemption Relief: Supreme Court

Live Law  

For claiming the benefit under Section 10B of the Income Tax Act, the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139 are to be satisfied and both are mandatorily to be complied with, the Supreme Court observed in a judgment delivered …

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court
2 years, 9 months ago

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court bench of Justices Tejinder Singh Dhindsa and Pankaj Jain has held that there should be reason to believe that the input tax credit available in the Electronic Credit Ledger was obtained fraudulently or that the assesses are ineligible. As per the petitioner, the department/respondents blocked Input Tax Credit amounting to Rs.1.9 Crore lying in …

Input Tax Credit Is A Form Of Concession Not A Right; Bombay HC upholds Vires Of Time Limit U/Rule 117 of GST Rules [Read Judgment]
5 years ago

Input Tax Credit Is A Form Of Concession Not A Right; Bombay HC upholds Vires Of Time Limit U/Rule 117 of GST Rules [Read Judgment]

Live Law  

The Bombay High Court recently held that the time limit prescribed under Rule 117 of the Goods and Services Rules for filing TRAN-1 form in order to claim input tax credit from the previous regime is not ultra vires to the Central Goods and Services Tax Act. Division bench of Justice Nitin Jamdar and Justice MS Karnik dismissed the writ …

Waiver Of Interest To Be Treated As Income In Hands Of Assessee: Says SC In An Amalgamation Matter [Read Judgment]
7 years, 11 months ago

Waiver Of Interest To Be Treated As Income In Hands Of Assessee: Says SC In An Amalgamation Matter [Read Judgment]

Live Law  

When the assessee is allowed the benefit of the accumulated losses, while computing those loses, the income which accrued to it had to be adjusted and only thereafter net losses could have been allowed to be set off by the assessee company, said the Bench.Supreme Court of India in M/s McDowell v. CIT Karnataka held that to ascertain the actual …

Waiver Of Interest To Be Treated As Income In Hands Of Assessee: Says SC In An Amalgamation Matter [Read Judgment]
7 years, 11 months ago

Waiver Of Interest To Be Treated As Income In Hands Of Assessee: Says SC In An Amalgamation Matter [Read Judgment]

Live Law  

When the assessee is allowed the benefit of the accumulated losses, while computing those loses, the income which accrued to it had to be adjusted and only thereafter net losses could have been allowed to be set off by the assessee company, said the Bench.Supreme Court of India in M/s McDowell v. CIT Karnataka held that to ascertain the actual …

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