Interest Not Leviable For Belatedly Deducting TDS If There Is No Liability: Kerala High Court
2 years, 1 month ago

Interest Not Leviable For Belatedly Deducting TDS If There Is No Liability: Kerala High Court

Live Law  

The Kerala High Court has held that where there is no liability to deduct TDS, the mere fact that TDS was so deducted and paid to the Income Tax Department belatedly, cannot give rise to a claim for interest under Section 201 of the Income Tax Act.The single bench of Justice Gopinath P. has observed that the delay in remitting the amounts deducted as TDS arose only on account of the fact. The Kerala High Court has held that where there is no liability to deduct TDS, the mere fact that TDS was so deducted and paid to the Income Tax Department belatedly, cannot give rise to a claim for interest under Section 201 of the Income Tax Act. The Special Tahsildar Land Acquisition, Malappuram, has filed the petition assailing the demand for payment of interest under Section 201 of the Income Tax Act. "Interest under sub-section of Section 201 is obviously to compensate the government/Income Tax Department for the delay in payment of taxes, which are rightfully due to the government," the court stated.

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History of this topic

Income From Sale Of Immovable Properties To Be Treated As 'Capital Gains,' Not 'Business Income': Kerala High Court
1 month ago

Income From Sale Of Immovable Properties To Be Treated As 'Capital Gains,' Not 'Business Income': Kerala High Court

Live Law  

The Kerala High Court has stated that income from the sale of immovable properties is to be treated as 'capital gains,' not 'business income' for taxation purposes. Jayakumar observed that “the requirement of ensuring uniformity and consistency in tax assessments cannot be overlooked, especially while categorizing the nature of the activity carried on by an assessee to earn its income …

Tax Effect In Appeals Below Monetary Limit Of Rs.1 Crore; Kerala High Court Dismisses ​​Dept's Appeal
5 months, 1 week ago

Tax Effect In Appeals Below Monetary Limit Of Rs.1 Crore; Kerala High Court Dismisses ​​Dept's Appeal

Live Law  

The Kerala High Court has held that the tax effect in the appeals filed by the income tax department pertaining to assessment years 2006–07, 2007–08, 2008–09, 2009–10, and 2010–11 is well below the monetary limit of Rs. 3 of 2018 issued by the Central Board of Direct Taxes, appeals cannot be maintained by the revenue before the High Court if …

Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT
7 months, 2 weeks ago

Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.The bench of …

Assessee Is Eligible For Credit Of TCS Paid U/S 194Q If There Is No Shortfall In Payment Of TDS: Vishakhapatnam ITAT
7 months, 3 weeks 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 …

Mere Deduction Of TDS By Donor On Grants Would Not Disentitle The NGO From Sections 11 Exemption: Delhi High Court
10 months ago

Mere Deduction Of TDS By Donor On Grants Would Not Disentitle The NGO From Sections 11 Exemption: Delhi High Court

Live Law  

The Delhi High Court has held that a mere deduction of TDS by a donor on grants would not disentitle the assessee-NGO from exemption under Section 11 of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav, while allowing the petition, set aside the assessment order and held that the receipt of Rs. The Delhi …

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

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

Live Law  

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 …

Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITAT
1 year, 6 months ago

Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that income derived from the sale of agricultural land is not a capital asset.The bench of Saktijit Dey and M. Balaganesh has observed that income tax is not payable on the income derived from the sale of agricultural land.A search and seizure operation was conducted in the case of. …

[Kerala Land Reforms Act] Mutation In Favour Of Third Party Has No Bearing On Proceedings Against Predecessor-In-Interest Over Excess Land: High Court
1 year, 9 months ago

[Kerala Land Reforms Act] Mutation In Favour Of Third Party Has No Bearing On Proceedings Against Predecessor-In-Interest Over Excess Land: High Court

Live Law  

The Kerala High Court recently directed the mutation of land covered by two sale deeds in favour of the person who purchased the land, notwithstanding the fact that the predecessor-in-interest was allegedly holding the land in excess of the ceiling limit under Kerala Land Reforms Act. The Single Judge Bench of Justice Gopinath P. observed, "Even in respect of cases …

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 …

Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption
2 years, 3 months ago

Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption

Live Law  

The Pune Bench of the Income Tax Appellate Tribunal has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years.The two-member bench of S.S. Vishwanethra Ravi and Inturi Rama Rao has observed that part of the land could not be used for agricultural purposes but grass was. …

Interest Payment On Late Payment Of TDS Not Eligible For Deduction Under Business Expenditure: ITAT
2 years, 4 months ago

Interest Payment On Late Payment Of TDS Not Eligible For Deduction Under Business Expenditure: ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has held that interest payment on late payment of TDS is not an eligible business expenditure for deduction and it is not compensatory in nature. The two-member bench of A. D. Jain and Dr. B. R. R. Kumar has observed that the payment of interest on late deposit of TDS levied …

Lands Re-Purchased Not To Be Mandatorily Agricultural On The Date Of Re-Investment: ITAT Allows Capital Gain Exemption
2 years, 4 months ago

Lands Re-Purchased Not To Be Mandatorily Agricultural On The Date Of Re-Investment: ITAT Allows Capital Gain Exemption

Live Law  

The Pune Bench of theIncome Tax Appellate Tribunal, consisting of Satbeer Singh Godara and Dipak P. Ripote, has ruled that the legislature has nowhere incorporated that for claiming the deduction under section 54B of the Income Tax Act, the lands re-purchased have to be agricultural on the date of re-investment. The ITAT noted that the reinvestment clause in section 54B …

No TDS Required To Be Deducted On Enhanced Compensation Awarded By Court Under Land Acquisition Act: Delhi ITAT
2 years, 8 months ago

No TDS Required To Be Deducted On Enhanced Compensation Awarded By Court Under Land Acquisition Act: Delhi ITAT

Live Law  

The Delhi Bench of ITAT, consisting of members Astha Chandra and N.K. Billaiya, has ruled that interest received by land owners on enhanced compensation awarded to them by the Court under Section 28 of the Land Acquisition Act, 1894 is not in the nature of 'income from other sources' under the Income Tax Act, 1961, therefore, no TDS is required …

Assessee's Recourse To Constitutional Provisions Not A 'Proceeding Under Income Tax Act' : Kerala High Court
2 years, 8 months ago

Assessee's Recourse To Constitutional Provisions Not A 'Proceeding Under Income Tax Act' : Kerala High Court

Live Law  

The Kerala High Court on Thursday ruled that a Special Leave Petition filed by an assessee under Article 136 of the Constitution of India cannot be regarded as a proceeding under the Income Tax Act. Ravindranatha Menon and Standing Counsel Jose Joseph for Income Tax Department appearing for the respondents denied these allegations and added that the assessment proceedings had …

Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT
2 years, 9 months ago

Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal, consisting of Kul Bharat and R.K. Panda, upheld the CIT order, holding that the mere fact that taxes were not deducted on the year end provision but were deducted and deposited upon crystallisation of liability to pay the expenses does not automatically justify the imposition of a penalty under section 271C …

Banks Exempted From Deducting Tax At Source While Paying Interest To Statutory Corporations : Supreme Court Reiterates
2 years, 9 months ago

Banks Exempted From Deducting Tax At Source While Paying Interest To Statutory Corporations : Supreme Court Reiterates

Live Law  

The Supreme Court has reiterated that Banks are exempted from the mandate of Section 194A of the Income Tax Act, 1961, to deduct tax at the source, on payment of interest to corporations established by a statute. In the facts of the present case, the Apex Court held that in terms of the notification dated 22.10.2022 issued by the Central …

Kerala High Court Quashes State Circular Restricting Fee Exemption On Converted Paddy Land
3 years, 1 month ago

Kerala High Court Quashes State Circular Restricting Fee Exemption On Converted Paddy Land

Live Law  

The Kerala High Court recently quashed a circular issued by the State government, limiting fee exemption on converted paddy land not included in the data bank only to applications filed after 25th February this year.A Division Bench of Chief Justice S. Manikumar and Justice Shaji P. Chaly also directed the concerned authority to consider the applications submitted by the petitioners. …

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 …

Kerala High Court Stays Govt Order Sanctioning Land Acquisition By State Exempting Land Value From Compensation
3 years, 4 months ago

Kerala High Court Stays Govt Order Sanctioning Land Acquisition By State Exempting Land Value From Compensation

Live Law  

A writ petition has been filed before the Kerala High Court challenging the proceedings for land acquisition initiated by a Government Order dated 4th February 2021 by which an administrative sanction has been granted to acquire 102.6 acres of land belonging to the petitioner by merely paying the value of improvements made on the land as compensation. It was additionally …

Capital Gains In Case Of Compulsory Land Acquisition Accrues On Arrival Of The Relevant Stage Of Taking Possession And Not Before: SC [Read Judgment]
4 years, 3 months ago

Capital Gains In Case Of Compulsory Land Acquisition Accrues On Arrival Of The Relevant Stage Of Taking Possession And Not Before: SC [Read Judgment]

Live Law  

The Supreme Court has observed that capital gains in a case of compulsory acquisition of land shall be deemed to have accrued: upon making of the award, in the case of ordinary acquisition referable to Section 16; and after expiration of fifteen days from the publication of the notice mentioned in Section 9, in the case of urgency. The Supreme …

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