"07 March 2020" Archive

Six months GST Return filing default for Cancellation of Registration

Phoenix Rubbers Vs Commercial Tax Officer (Kerala High Court)

Default in filing return for the period of six months should be existing both at time of issuance of notice and passing order for cancellation of the registration under Section 29(2)(c), sets aside the order cancelling the registration....

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Case registered for fraudulently claiming IGST refunds

DGGI (Hqrs.) booked a case on 06.03.2020 against M/s Aastha Apparels Pvt Ltd & others. Aforesaid companies have fraudulently claimed IGST refunds on export of goods to the tune of more than Rs. 61 Crores....

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Assessment in the name of non-existent entity was void-ab-initio

Tata Chemicals Limited Vs JCIT (ITAT Mumbai)

Since the final assessment orders after amalgamation was passed in the name of non-existent company by the AO, the same was bad in law and therefore, set aside....

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Section 12AA Registration cannot be denied for non-commencement of activity

CIT Vs R.S. Bajaj Society (Allahabad High Court)

CIT Vs R.S. Bajaj Society (Allahabad High Court) The only ground on which the CIT rejected the application for registration was that though the society was established in August 2011 with a dominant object of imparting higher medical education by establishing Medical Colleges, Hospitals and Research Centres, such charitable activities had...

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New trust entitled for Section 12AA registration despite no activity: SC

Anand Social and Educational Trust Vs CIT & Anr. (Supreme Court)

Anand Social and Educational Trust Vs CIT & Anr. (Supreme Court) Whether a newly formed trust is entitled for registration under Section 12AA of the Income Tax Act, 1961 even if any activity has not been undertaken as yet? In brief, section 12AA of the Act empowers the Principal Commissioner or the Commissioner of the […]...

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E-Assessment without human interaction may lead to erroneous assessment

Salem Sree Ramavilas Chit Company Vs DCIT (Madras High Court)

Salem Sree Ramavilas Chit Company Vs DCIT (Madras High Court) .The Government of India has introduced E-Governance for conduct of assessment proceedings electronically. It is a laudable steps taken by the Income Tax Department to pave way for an objective assessment without human interaction. At the same time, such proceedings can lead to...

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SCN notice demanding recovery of credit wrongly availed in Tran-1 valid

Matrix Cellular (International) Services Limited Vs Union of India & Ors. (Delhi High Court)

Matrix Cellular (International) Services Limited Vs Union of India & Ors. (Delhi High Court) Department have merely followed the statutory scheme of first making inquiries, and premised on the information gathered, to issue the Show Cause Notice under Section 73 of the Act. Having heard learned counsels, we are of the view that there ...

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Interest cannot be charged on Debit Balance of Partner if Partnership Deed prohibits the same

DCIT Vs Ms. India Housing (ITAT Kolkata)

DCIT Vs Ms. India Housing (ITAT Kolkata) We note that as per clause 10 of the Partnership Deed, no interest was to be charged or paid to the partners in respect of balances standing to the debit or credit of their capital account. As per Partnership Act, 1952, the partners can carry on any business […]...

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No addition If ALP principle is satisfied qua relevant transaction

Celltick Technologies Ltd Vs DCIT (ITAT Mumbai)

Celltick Technologies Ltd Vs DCIT (ITAT Mumbai) If the arms length principle is satisfied qua the relevant transaction between the assessee and its Indian subsidiary, no further profits can be attributed to the assessee in India even if it was to be held that the latter had a PE in India e find that the […]...

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Detailed comparison of CARO 2016 with CARO 2020

The CARO, 2020 is applicable for an audit of financial statements of eligible companies for the financial years commencing on or after the 1st April 2019. The criteria of eligibility of companies on which the CARO, 2020 shall be applicable has not been changed and hence it shall be applicable to all those companies on which CARO, 2016 was...

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