Department Can't Deny Grant For Waiver Of Interest U/S 234C Of IT Act Without Disposing Of Issues Flagged By Taxpayer: Bombay High Court
1 month, 2 weeks ago

Department Can't Deny Grant For Waiver Of Interest U/S 234C Of IT Act Without Disposing Of Issues Flagged By Taxpayer: Bombay High Court

Live Law  

The Bombay High Court recently clarified that the Chief Commissioner of Income Tax ought to have addressed the issues/justification as flagged by the taxpayer in supporting its case for grant of waiver of interest u/s 234C. Observations of High Court: From perusal of the application of petitioner for waiver of interest u/s 234C addressed to the respondent/ Revenue, the Bench found that the petitioner has highlighted sudden outbreak of the COVID-19 pandemic which has prevented proper estimation of income/book profits for paying the Advance Tax. The High Court therefore quashed the impugned order passed by the Chief Commissioner, and remanded the proceedings for a de-novo consideration of the petitioner's waiver application to be decided on its own merits. Counsel for Petitioner/ Assessee: Dharan V. Gandhi Counsel for Respondent/ Revenue: Akhileshwar Sharma Case Title: Grasim Industries vs. Chief Commissioner of Income Tax No.

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Belated Filing Of Form 9A Is Not Attributable To Trust: Bombay HC Allows Exemption U/S 11 After Condoning Delay Under IT Act
1 week, 6 days ago

Belated Filing Of Form 9A Is Not Attributable To Trust: Bombay HC Allows Exemption U/S 11 After Condoning Delay Under IT Act

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The Bombay High Court held that bonafide delay in filing Form 9A on part of trust, has to be construed as procedural lapse and shall be condoned by exercising powers u/s 119 of Income tax Act. The Division Bench of Justice G S Kulkarni and Justice Advait M Sethna observed that that the jurisdictional AO completely lost sight of the …

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income
8 months ago

I-T Authority Fails To Consider Reason For Difference In Sale Consideration & Stamp Duty: Mumbai ITAT Deletes Penalty Levied U/s 270A For Under-Reporting Of Income

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Noting that neither the Assessing Officer nor the CIT have taken into consideration the explanation offered by the Assessee during the assessment proceedings in relation to the difference in the sale consideration and the stamp duty valuation of immovable property, the Mumbai ITAT deleted the penalty levied u/s 270A of the Income tax Act for under-reporting of income. Accordingly, the …

Andhra Pradesh High Court Directs Municipal Corporation To Decide Representation On Waiver Of Interest On Property Tax Arrears
9 months, 1 week ago

Andhra Pradesh High Court Directs Municipal Corporation To Decide Representation On Waiver Of Interest On Property Tax Arrears

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The Andhra Pradesh High Court, while restraining the Municipal Corporation from taking coercive steps against the petitioner, directed the corporation to decide representation on a waiver of interest on property tax arrears.The bench of Justice Ravi Cheemalapati has observed that the petitioner seems to have been paid an amount of Rs. The Andhra Pradesh High Court, while restraining the Municipal …

Interest Paid On Loan Taken To Invest In Shares Of Subsidiary In Normal Course Of Business Activities Is Allowable Expenditure: Bombay High Court
10 months, 2 weeks ago

Interest Paid On Loan Taken To Invest In Shares Of Subsidiary In Normal Course Of Business Activities Is Allowable Expenditure: Bombay High Court

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The Bombay High Court has held that if an assessee for commercial expediency and in the normal course of its business activities takes loan to invest in shares of its subsidiary, the interest paid on these advances utilised is allowable expenditure under Section 36 of the Income Tax Act.The bench of Justice K. R. Shriram and Justice Neela Gokhale has …

Tax Cases Weekly Round-Up: 26 November To 2 December, 2023
1 year, 1 month ago

Tax Cases Weekly Round-Up: 26 November To 2 December, 2023

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Delhi High Court Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal. Allahabad High Court Income Tax Authority Cannot Dissect An Otherwise Indivisible Contract In Absence Of Legal Provision: Allahabad High Court …

Section 234B Interest Has To Be Charged On The Assessed Income And Not On The Returned Income: Jharkhand High Court
1 year, 2 months ago

Section 234B Interest Has To Be Charged On The Assessed Income And Not On The Returned Income: Jharkhand High Court

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The Jharkhand High Court has held that interest under Section 234B of the Income Tax Act has to be charged on the assessed income and not on the returned income.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that, as per Section 234B, interest has to be charged on an amount equal to the assessed tax or, …

Director Proves Lack Of Control On Financial Affairs: Bombay High Court Quashes Income Tax Recovery
1 year, 6 months ago

Director Proves Lack Of Control On Financial Affairs: Bombay High Court Quashes Income Tax Recovery

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The Bombay High Court has quashed the income tax recovery against the Director of a company on the grounds that the Director has sufficiently discharged the burden cast upon him in terms of Section 179 of the Income Tax Act.The bench of Justice K.R. The Bombay High Court has quashed the income tax recovery against the Director of a company …

Tax Cases Weekly Round-Up: 07 May to 13 May, 2023
1 year, 7 months ago

Tax Cases Weekly Round-Up: 07 May to 13 May, 2023

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Supreme Court Case Title: Heinz India Limited v The State of Kerala Citation: 2023 LiveLaw 411 The Supreme Court Bench has held that prickly heat powders fall under the category of ‘medicated talcum powder’ and not ‘medicine’ for the purpose of sales tax under Kerala General Sales Tax Act, 1963. Chhattisgarh High Court Case Title: M/s Nava Raipur Atal Nangar …

Interest Income Earned By A Co-Operative Society Eligible For Deduction: ITAT
1 year, 11 months ago

Interest Income Earned By A Co-Operative Society Eligible For Deduction: ITAT

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The Mumbai Bench of the Income Tax Appellate Tribunal held that interest income earned by a co-operative society on its investments held with co-operative banks would be eligible for claim of deduction under section 80P of the Income Tax Act.The two-member bench of Kuldip Singh and S Rifaur Rahman found that the CIT erred in upholding. The Mumbai Bench of …

Liability To Deduct TDS Under Section 201 of Income Tax Act Is A Vicarious Liability, Which Ends With Discharge Of Principal Liability Of Recipient Of Income: ITAT
2 years, 1 month ago

Liability To Deduct TDS Under Section 201 of Income Tax Act Is A Vicarious Liability, Which Ends With Discharge Of Principal Liability Of Recipient Of Income: ITAT

Live Law  

The Mumbai bench of the Income Tax Appellate Tribunal has ruled that the liability to deduct tax at source under Section 201 read with Section 195 of the Income Tax Act, 1961, is a vicarious liability of the payer of an income and thus, the liability to deduct TDS ceases to exist when the primary liability of the recipient of …

Merely Raising Dispute Before Any Authority Not A Ground To Waive Interest U/Sec 220(2A) Income Tax Act : Supreme Court
2 years, 1 month ago

Merely Raising Dispute Before Any Authority Not A Ground To Waive Interest U/Sec 220(2A) Income Tax Act : Supreme Court

Live Law  

The Supreme Court observed that the levy of simple interest on non-payment of the tax @ 1% p.a. is mandatory.Merely raising the dispute before any authority cannot be a ground not to levy the interest and/or waiver of interest under Section 220 of the Income Tax Act, the bench of Justices MR Shah and MM Sundresh observed.In this case, the …

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court
2 years, 5 months ago

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court

Live Law  

The Delhi High Court has allowed the assessee- TV Today Network Ltd.'s claims for deduction of expenses in nature of 'consumption incentive' offered to the advertisers for booking more The Bench, consisting of Justices Manmohan and Manmeet Pritam Singh Arora, reiterated that the 'due date', in case of delay by the assessee in depositing the employees' contribution to Provident Fund …

Assessment Can't Be Reopened On Mere Change Of Opinion Of AO: Bombay High Court
2 years, 7 months ago

Assessment Can't Be Reopened On Mere Change Of Opinion Of AO: Bombay High Court

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The Bombay High Court, while quashing the reassessment notice, held that the assessment could not be reopened on a mere change of opinion of the Assessing Officer. Borkar observed that the reopening of assessment was merely on the basis of a change of opinion of the Assessing Officer from that held earlier during the course of assessment proceedings and this …

Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022
2 years, 8 months ago

Weekly Round Up Of Tax Cases : 1 May To 7 May, 2022

Live Law  

Supreme Court Supreme Court Saves Over 90,000 Income Tax Reassessment NoticesIssued After 2021 Amendment By Deeming Them As Notices Under Section 148A Case Title: Union of India v. Ashish Agarwal Citation : 2022 LiveLaw 444 The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 to be …

Assessee Deprived Of Refund Due To Wrongful Withholding Of Amount By Income Tax Dept.: Bombay High Court Imposes 6% Interest
2 years, 8 months ago

Assessee Deprived Of Refund Due To Wrongful Withholding Of Amount By Income Tax Dept.: Bombay High Court Imposes 6% Interest

Live Law  

The Bombay High Court bench of Justice S.G. Mehare and Justice R.D. The petitioners contended that because 120 days had already passed, they were entitled to interest under Section 132 of the Income Tax Act of 1961. The department was liable to pay interest at the rate of 6% p.a., which shall run from the date immediately following the expiry …

Monthly Digest Of Tax Cases- April 2022
2 years, 8 months ago

Monthly Digest Of Tax Cases- April 2022

Live Law  

Indirect Taxes Supreme Court 1.Plea In Supreme Court Challenges The Constitutional Validity Of Levy Of GST On Lease/ Rent Payments Case Title: Myrayash Hotels Pvt. 2.Show Cause Notice Completely Deficient In Material Particulars: Delhi High Court Quashes GST Registration Cancellation Order Case Title: Fada Trading Private Limited Versus Commissioner Goods and Service Tax Citation: 2022 LiveLaw 328 The Delhi High …

Weekly Digest Of Tax Cases: April 10 To April 17, 2022
2 years, 8 months ago

Weekly Digest Of Tax Cases: April 10 To April 17, 2022

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High Court Delhi High Court Case Title: Commissioner of Income Tax Delhi versus Hamdard National Foundation Citation: 2022 LiveLaw 302 The Delhi High Court has upheld the factual findings made by the CIT and ITAT that the merit-cum scholarship/financial assistance provided by Hamdard National Foundation was not confined to students of a particular religious community, and therefore exemption under Section …

Only PCIT Can Sanction Reassessment Notice After Expiry Of 4 Years, Not ACIT: Bombay High Court
2 years, 8 months ago

Only PCIT Can Sanction Reassessment Notice After Expiry Of 4 Years, Not ACIT: Bombay High Court

Live Law  

The Bombay High Court bench of Justice N.R. Shriram has held that after four years of expiry from the end of the relevant assessment year, only the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner can accord the approval to the reassessment notice and not the Additional Commissioner of Income Tax. The petitioner/assessee has challenged the reassessment …

Assessee Not Liable To Pay Interest On Short Payment Of Advance Tax Due To Default Of Payer In Deducting TDS Before 2012-2013 FY : Supreme Court
3 years, 3 months ago

Assessee Not Liable To Pay Interest On Short Payment Of Advance Tax Due To Default Of Payer In Deducting TDS Before 2012-2013 FY : Supreme Court

Live Law  

The Supreme Court has held that the amount of income tax which is deductible or collectible at source can be reduced by the assessee while calculating advance tax before 2012-2013 Financial Year.Therefore, the assessee cannot be held liable for interest under Section 234B of Income Tax for short-fall of advance tax which arises due to reducing the income tax deductible …

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