Circular on deemed exports inapplicable to 100% EOUs claiming refund on actual zero-rated exports Issue Whether a 100% Export Oriented Undertaking (EOU) is entitled to a refund of unutilized Input Tax Credit (ITC) for actual exports, or if such refund is barred by CBIC Circular No. 172/04/2022-GST regarding “deemed exports.” Facts Nature of Business: The… Read More »
Cash deposits matching books of account cannot be taxed as unexplained money despite demonetization spike Issue Whether the Assessing Officer was justified in making an addition under Section 69A of the Income-tax Act, 1961, treating cash deposits made during the demonetization period as unexplained money, despite the assessee maintaining books of account reflecting corresponding cash… Read More »
Ex-parte GST order set aside on heavy costs; Limitation challenge linked to SC outcome Issue Natural Justice: Whether an adjudication order passed ex parte (without a reply or hearing) should be set aside to allow the assessee a chance to defend on merits, despite previous non-compliance. Limitation Validity: Whether the Notifications extending the time limit… Read More »
Leasehold rights outside Section 50C ambit; Allotment date valid for Section 54G exemption Issue Section 50C Applicability: Whether the provisions of Section 50C (adopting stamp duty value) apply to the transfer of leasehold rights in land, as opposed to the land itself. Section 54G Timelines: Whether the date of allotment of a new industrial plot… Read More »
Capital Gains Account closure: AO can retain estimated tax liability but must release excess balance Issue Whether the Income Tax Officer (AO) can deny permission to close a Capital Gains Account Scheme (CGAS) account and determine tax liability without formal assessment proceedings, particularly when the assessee claims to have utilized borrowed funds for construction under… Read More »
Educational trust allowed exemption on hostel income and related party payments found reasonable and genuine Issue Whether the Assessing Officer was justified in making various disallowances (Advertisement, Royalty, Hostel Income, etc.) against an educational trust under Section 13(1)(c) regarding related party transactions and treating hostel activities as commercial, despite the trust holding valid registration under… Read More »
Appeals dismissed for non-prosecution and unexplained 156-day delay in filing electronically Issue Whether a delay of 156 days in filing appeals should be condoned when the explanation of “technical glitches” is vague and the assessee fails to appear despite repeated notices. Facts Appeals Filed: The assessee filed four appeals against the orders of the CIT(A)… Read More »
Mere disallowance of claim does not amount to concealment; Penalty u/s 271(1)(c) deleted Issue Whether the levy of penalty under Section 271(1)(c) of the Income Tax Act is justified when additions are made solely due to a difference of opinion regarding the treatment of receipts (surplus and santage charges), without any finding of concealment or… Read More »
ITAT remands Maruti Suzuki tax credit dispute to AO for verification of unpaid refund claims Issue Whether the CIT(A) erred in directing a refund of Rs. 3.20 Crores to the assessee by accepting their calculation of taxes paid without affording the Assessing Officer (AO) an adequate opportunity to verify the records and the order giving… Read More »
Assessment set aside to verify Corpus Fund status of Government Grant Issue Whether the grant-in-aid received by the assessee from the Government of Haryana constitutes a “Corpus Fund” exempt under Section 11(1)(d) of the Income Tax Act, and if the lower authorities erred in taxing it as surplus income without verifying its specific nature. Facts… Read More »