CESTAT Kolkata held that no demand of service tax can be made simply based on the difference between the Balance Sheet and the ST-3 returns without providing any explanation about the nature of service on which service tax is payable. Thus, order is set aside to that extent.
The Tribunal ruled that reassessment cannot survive when the final addition departs from the original Section 148A notice. Consistency of information throughout the reopening process is mandatory.
The Tribunal ruled that denying Section 80P deduction is unjustified when the underlying interest income itself does not exist. Notional income cannot defeat statutory deductions.
The Tribunal ruled that exemption for charitable trusts cannot be denied merely due to belated filing of Form 10B. It reaffirmed that the requirement is directory, not mandatory, when the audit report is eventually furnished.
This ruling clarifies that repayment of loan with interest, coupled with documentary proof, negates allegations of unexplained cash credit. Mere suspicion without defects in evidence cannot sustain an addition.
Relying on Supreme Court precedent, the Tribunal held that the IBC has overriding effect over the Income-tax Act. The decision confirms that tax appeals cannot survive once insolvency proceedings are approved.
The ruling clarifies that investigation of corruption offences is not reserved exclusively for the CBI. State police agencies may proceed under the PC Act if statutory rank requirements are met.
The Tribunal held that a reassessment notice issued to a company already struck off from the ROC is invalid. Since the entity had ceased to exist, the entire reassessment and assessment proceedings were quashed.
Applying judicial relief on Section 115BBE, the remaining tax demand fell below the prescribed threshold. The ruling reiterates that revenue appeals must be dismissed when tax effect is below CBDT limits.
The Tribunal ruled that purchases cannot be treated as bogus merely because suppliers did not reply to Section 133(6) notices. When books are audited, evidence is produced, and sales are accepted, disallowance under Section 69C is unsustainable.
