The Pune bench of Income Tax Appellate Tribunal (ITAT) has recently held that exemption under Section 11 of Income Tax Act, 1961 can be availed only when the return of income filed in the manner prescribed Section 139(4A) of the Income Tax Act.
Section 11 of the Income Tax Act provides exemption to the income derived from the property held by a trust and if such income is applied for charitable or religious purpose in India.
Section 139(4A) of the Income Tax Act states about the return of income of a person who derived income from the property held by the charitable trust.
Assessee Arya Kshatriya Samaj is a Trust registered under Bombay Public Trust Act, 1951 and the assessee was also duly registered under the provisions of section 12A of the Income Tax Act.
When the return was filed by the assessee, the Central Processing Center (CPC) denied the exemption under Section 11 on the ground that the return of income was not filed within the due date for filing the return of income.
Aggrieved assese filed an appeal with the National Faceless Appeal Centre (NFAC). Then the NFAC confirmed the action of the CPC. Therefore the assessee filed an appeal before the tribunal.
No one appeared for assessee while the matter was under consideration of the tribunal.
Suhas Kulkarni, Counsel for the revenue submitted that in order to avail the exemption under Section 11, it is a mandatory condition that the return of income should be filed in the manner prescribed under sub-section (4A) of section 139 of the Act
In the assessee’s case, the return of income was admittedly filed beyond the due date prescribed under Section 139(4A) of Income Tax Act. Hence, assessee was not entitled for exemption under Section 11 Income Tax Act 1961.
The tribunal observed that the provisions of Income Tax Act had not conferred any discretion on the assessing authority or the appellate authority to condone the delay in filing the return of income.
Thereafter, the single bench of Inturi Rama Rao, (Accountant Member) determined that,
“The provisions of section 12A (ba) Income Tax Act 1961 provides that the exemption under Section 11 of Income Tax Act 1961 can be availed only if the return of income was filed in the manner prescribed under the provisions of section 139(4A) of the Act which in turn requires that an assessee claiming exemption of income under Section 11 Income Tax Act 1961 to file the return of income within the due date prescribed under Section 139(1) of the Income Tax Act 1961.”
Moreover, in the absence of any discretionary power, neither the assessing authority nor the appellate authority can relax the provisions of the Statute.
Therefore the bench dismissed the appeal of the assessee.
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The Ahmedabad bench of Income Tax Appellate Tribunal (ITAT) has recently held that Assesee is entitled to 60% Depreciation Claim on Licenses to use Software.
Bhavin Marfatia, appeared for the assessee and Sudhendu Das, appeared for the revenue.
Assessing officer had restricted depreciation claimed by the assessee Gujarat Green Revolution Co. on Licenses to use software at 25% as opposed to rate of depreciation of 60% claimed by the assessee resulting in disallowance of depreciation of Rs.2,25,170/-.
When the matter came before CIT(A), it was held that the assessee is entitled to depreciation on softwares at 60%. Against the decision revenue filed the above appeal before the tribunal.
Counsel for the assese submitted that Identical issue was already decided in favour of assesee and the Department was in appeal on the same issue, which was dismissed by the ITAT.
Counsel for the revenue supported the contentions of the assessing officer and contented that assesee entitle only 25% depreciation on licenses to use software.
Accordingly,Annapurna Gupta, (Accountant Member) and T.R.Senthil Kumar, (Judicial Member) held that the assessee was entitled to depreciation at the rate of 60% on computer software.
Therefore, the bench dismissed the appeal of the revenue.
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The Delhi Bench of High Court has set aside the order passed under Section 148A(d) of the Income Tax Act 1961 as this was passed without considering the reply of the assessee. The assessing officer was directed for de novo exercise in lieu of the above order. This writ petition Was filed against order passed…
The Delhi bench of Income Tax Appellate Tribunal (ITAT) has recently held that Corporate Social Responsibility (CSR) expenses carried out by the Hindustan coca-cola beverages are eligible for deduction under Section 37(1) of the Income Tax Act 1961. Section 37(1) of the income tax act 1961 states that any expenses carried out by the assessee on corporate social…
The Delhi bench of Income Tax Appellate Tribunal (ITAT) has recently held that expenditure incurred on ice-boxes, accounted under the head of marketing expenses, are capital expenditure. Therfore the bench confirmed the disallowance made by the assessing officer
Neeraj Jain, Aditya Vohra advocates, and ArpitGoyal chartered accountant appeared for the assessee and Mohd. Gayasuddin Ansari appeared for revenue.
Assessee Hindustan coca-cola is a manufacturer and trader of non-alcoholic beverages and filed returns for respective years. The return were processed under section 143(2) of the income tax act
While processing the return the assessing officer disallowed expenses incurred on Ice Boxes. Against the disallowance, the assessee filed appeal before the CIT(A). The CIT(A) confirmed the decision of AO. Further, the assessee filed a second appeal before the Tribunal.
Assessee had made expenditures on sign board, Ice-boxes etc. provided to vendors which were accounted under the head ‘Marketing Expenses’ and CIT(A) has allowed the claim of Signboard as revenue expenditure. But the Ice-Boxes as part of the plant and machinery and found under capital expenditure while considering the assessee’s own case for A.Y. 2002-03.
Counsel for the assessee submitted that the purpose of expenditure is to increase the sales at the outlets / vendors therefore, the expenditures were incurred for the purpose of business promotion and advertisement moreover the Ice-boxes did not have as life and scrapped soon.
Thereafter the division bench of N.K.Billaiya, (Accountant Member) and Anubhav Sharma, (Judicial Member) decided the ground against the assessee and observed that expenditure made by assessee for the enduring benefit of the business of the assessee which is properly attributable to a capital and certainly it was of the nature of capital expenditure.
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In a recent ruling, the Single bench of Justice Manoj Kumar Tiwari directed the petitioner to pay the outstanding dues of the Goods and Services Tax (GST). The petitioner,aggrieved by the cancellation of his GST registration by the GST State department filed the writ petition seeking reliefs. The petitioner sought to issue suitable writ, order…
The Calcutta High Court presided by a single bench Justice Md. Nizamuddin quashed and set aside on the ground that the impugned notice was issued in the name of non-existing company in spite of revenue having notice and knowledge of non-existence of such Company. The petitioner, Briliant Credit & Finance Limited (formerly known as Akarshan…
The bench of Chief Justice Vipin Sanghi and Justice Alok Kumar Verma of Uttarakhand High Court dismissed the revision petition filed by the Commissioner State/Commercial Tax seeking condonation of delay of 3502 days. The revisionist has chosen to contest the judgment under Section 55 of the Uttarakhand Value Added Tax Act, 2005, along with a…
In a recent ruling, the bench of Justice Manmeet Pritam Singh Arora and Justice Manmohan of Delhi High Court ruled that the impugned Notifications in withdrawing the exemption from the Electronic Commerce Operators (ECOs) and making the levy of Goods and Services Tax (GST), on the fare of non air-conditioned stage carriage ticket booked through…
The Central Board of Indirect Taxes and Customs (CBIC) has resumed the functionality to pay Customs Duty through the credit in the Electronic Credit Ledger in the ICEGATE Portal. CBIC clarified the same through a tweet in the official twitter handle @cbic_india https://twitter.com/cbic_india/status/1646940125023051789?t=JB3-MsJsRHmO-oBWhEhvPQ&s=08 The payment using ECL Credit has been resumed after the Central Board…
The Institute of Chartered Accountants of India (ICAI) has postponed the Chartered Accountants Intermediate Course Examination, (Group I), Paper – 4 (Taxation) scheduled to be held on 10th May, 2023 (Wednesday) at various Examination Centres in the State of Karnataka.
The Examination at Bagalkot, Belgaum, Bellary, Bengaluru, Chikkaballapur, Chitradurga, Davangere, Gadag, Hassan, Haveri, Hubli, Kalaburgi, Kolar, Koppal, Mandya, Mangalore, Mysore, Raichur, Shimoga, Sirsi, Tumakuru, Udupi and Vijayapura stands postponed as per the announcement.
The examination of the said paper shall now be held on 20th May, 2023 (Saturday) at the same timing(s) i.e. 2 PM to 5 PM and at the same Examination Centres. The Admit Card already issued in this regard will be valid for the revised date, the Examination Department said in the announcement.
It was also clarified that the schedule of examinations notified vide Important Announcement 13-CA (EXAM)/MAY – JUNE/2023 dated 10th January, 2023 in respect of all other cities and dates shall remain unchanged. In other words, there will be no change in the schedule of examinations for other cities and dates.
The announcement further urged that the candidates are advised to stay in touch with the website of the Institute, www.icai.org.
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The Gujarat High court recently in a writ petition filed before it held that if the property was free from Encumbrances the order of property attachment under section 45 Of Gujarat Value Added Tax Act , 2003 for non payment of tax was invalid.
Section 45 Of Gujarat Value Added Tax Act, 2003 defines provisional attachment of property belonging to the dealer for protecting the interest of government revenue.
Petitioner Odhavjibhai Mohanbhai Gadhiya buys a property from Axis bank through auction sale. Before that property was in the name of Pradipkumar Govindbhai Lakkad. After the sale was concluded the petitioner became the successful bidder and the bank issued the sale certificate in favor of the petitioner.
Thereafter petitioner sold the plot No.23 of survey No.1149/2 which had come to his share by executing registered sale deed in favor of one Nitaben Nileshbhai Ramani and Kalpeshbhai Ramani. Respondent No.2- Sub-Registrar, Jamnagar informed the petitioners that since the property sold under the said registered sale deed was ordered to be attached by the sales tax authorities, the sale deed could not be returned. The Sub-Registrar thus kept the sale deed with him pending.
Further the sale tax officer stated that the properties were under attachment under Section 45 of the Gujarat Value Added Tax Act, for non-payment of the tax by original owner of the properties named Pradipkumar Govindbhai Lakkad.Against the order petitioner filed the writ petition before the Court.
A.R.Thakkar counsel for the petitioner contented that Sale certificate pursuant to auction purchased by the petitioners was issued and it was registered. Since property was purchased in auction pursuant to which the sale certificate was also issued and the title of the petitioners was to be complete
It was further submitted that the dues of the bank were secured debts under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for recovery if the auction was held and the petitioner purchased the properties. Section 26E of the SARFAESI Act was relied on to further submit that the dues of the sales tax authorities would not take precedence.
Krutik Parikh counsel for the respondent submitted that before the auction sale conducted there exists an encumbrance in the nature of government dues of unpaid sales tax and the original owner of the properties named Pradipkumar Govindbhai Lakkad did not pay that tax. Hence without paying the sale tax Sub Registrar refused to release the document to the petitioner.
After considering the contentions of the both sides the division bench comprising Justice N.V.Anjaria and Bhargav D. Karia allowed the writ petition filed by the petitioner and observed that,
Since the petitioner had purchased in the auction sale conducted by the bank under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 the property travelled in favor of the petitioner free from any encumbrances
Further bench observed that order of sales tax officer registering the charge over the property in relation to the sales tax and Value Added Tax payable by original owner of the property had no efficacy in law.
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The Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. The Council, Inter alia, reduced the GST Rate of Pencil Sharpeners from 18% to 12%, in an attempt to rationalize the rates.
The GST Council Meeting is a forum where the Union Finance Minister and the Finance Ministers of all the States and Union Territories (UTs) come together to discuss GST-related issues, review GST rates, and make policy decisions.
The GST (Goods and Services Tax) rate for pencil sharpeners depends on the type of pencil sharpener and the applicable HSN (Harmonized System of Nomenclature) code under GST.
For manual pencil sharpeners, the GST rate was 18%, with an HSN code of 8214.10.00, which has now been brought down to the 12% Slab.
For electric pencil sharpeners, the GST rate is 28%, with an HSN code of 8509.80.00. However, the rate of such electric sharpeners remain unchanged as they have not been mentioned.
In other attempts to rationalize tax and ease the burden of GST, the Council also reached a consensus on the following: –
The Goods and Services Tax (GST) Rate of Liquid Raab or Rab Jaggery has been slashed from 18% to Nil for loose sales and for pre-packaged and labeled Raab to 5%.
In addition, the council has decided to regularize payment of GST on Rab Jaggery during the past period on “as is basis” due to genuine doubts over its classification and applicable GST rate.
In addition, the council has decided to amend entry at Sl. No. 41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
The council has also decided to amend notification No. 104/94-Customs to provide nil IGST treatment for devices like tag-tracking device or data logger already affixed on a container, subject to existing conditions.
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The GST Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. One of the key decisions of the council meeting include rationalization of Late fee for belated filing of annual GST return GSTR-9.
Presently, the late fee is Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9.
The Council recommended to rationalize this late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards, for registered persons having aggregate turnover in a financial year up to Rs 20 crore, as below:
Registered persons having an aggregate turnover of up to Rs. 5 crores in the said financial year: Rs 50 per day (Rs 25 CGST + Rs 25 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
Registered persons having an aggregate turnover of more than Rs. 5 crores and up to Rs. 20 crores in the said financial year: Rs 100 per day (Rs 50 CGST + Rs 50 SGST), subject to a maximum of an amount calculated at 0.04 per cent. of his turnover in the State or Union territory (0.02% CGST + 0.02% SGST).
It’s important to note that the late fee for belated filing of GST Annual Returns cannot be waived or reduced by the GST authorities, and it must be paid along with the outstanding tax liability.
Therefore, taxpayers are advised to file their GST annual returns within the due date to avoid any late fee charges. Belated filing of returns also lead to cancellation of GST registration, inability to avail ITC and many more complications.
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The GST Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. One of the key decisions of the council meeting is to slash the Goods and Services Tax (GST) Rate of Liquid Raab or Rab Jaggery to Nil for loose sales and for pre-packaged and labeled Raab to 5% from the 18% slab.
The GST Council had reduced the GST Rate on Rab Jaggery from 18% to 5% on pre-packaged and labeled Raab. If the same is sold without packaging and label, it will not attract any GST.
In addition, the council has decided to regularize payment of GST on Rab Jaggery during the past period on “as is basis” due to genuine doubts over its classification and applicable GST rate.
The GST Council had undertaken several decisions related to GST Rate rationalization today. The council has reduced the GST Rate for Pencil Sharpeners from 18% to 12%. It also clarified that the supply of sharpeners along with pencils is covered under the category of “mixed supply.”
The council has also decided to amend notification No. 104/94-Customs to provide nil IGST treatment for devices like tag-tracking device or data logger already affixed on a container, subject to existing conditions.
In addition, the council has decided to amend entry at Sl. No. 41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
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The GST Council convened for the first time today since the government unveiled its budget for 2023, chaired by the Finance Minister Nirmala Sitaraman. One of the key decisions of the council meeting is to clear the entire balance of the GST Compensations due to State Governments.
Government of India has decided to clear the entire pending balance GST compensation of Rs. 16,982 crore for June 2022. Since, there is no amount in the GST compensation Fund, Centre decided to release this amount from its own resources and the same will be recouped from the future compensation cess collection.
With this release, Centre clarified that the entire provisionally admissible compensation due for five years as envisaged in the GST (Compensation to States) Act, 2017 will be cleared.
In addition, Centre also clarified that the admissible final GST compensation to those States who have provided the revenue figures as certified by the Accountant General of the States amounting to Rs. 16,524 crore.
The compensation due for June 2022 for each state (in Rupees) is as follows:
1. Andhra Pradesh 689 Crores
2. Bihar 92 Crores
3. Chhattisgarh 505 Crores
4. Delhi 1212 Crores
5. Goa 120 Crores
6. Gujarat 865 Crores
7. Haryana 629 Crores
8. Himachal Pradesh 229 Crores
9. Jammu and Kashmir 210 Crores
10. Jharkhand 342 Crores
11. Karnataka 1934 Crores
12. Kerala 780 Crores
13. Madhya Pradesh 730 Crores
14. Maharashtra 2102 Crores
15. Odisha 529 Crores
16. Puducherry 73 Crores
17. Punjab 995 Crores
18. Rajasthan 815 Crores
19. Tamil Nadu 1201 Crores
20. Telangana 548 Crores
21. Uttar Pradesh 1215 Crores
22. Uttarakhand 345 Crores
23. West Bengal 823 Crores
Amounting to Rs. 16,982 Crores, in total.
The GST regime was implemented in India from July 1, 2017. As part of the agreement to implement GST, the central government promised to compensate the states for any revenue losses they incur during the first five years of the GST regime.
The compensation is paid to the states on a bi-monthly basis. The compensation is calculated based on the difference between the actual revenue earned by a state through GST and the revenue that the state would have earned if it had continued with the pre-GST indirect tax regime.
The compensation is funded through the GST Compensation Cess, which is levied on certain luxury and sin goods such as tobacco, coal, and motor vehicles.
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The Goods and Service Tax (GST) Council meeting held at the Vigyan Bhavan, Delhi on Saturday, 18 February has concluded with some key decisions on the highly anticipated GST Appellate Tribunal. The Group of Minister (GoM) recommendations were accepted by the Council subject to some minor language modifications.
The proposed Structure of GST Tribunal will have a National level Principal bench, along with separate benches at state levels. Each bench is expected to have a strength of Four Members, 2 Judicial and 2 Technical.
The GoM and the Council have taken a balanced approach in this regard. One Judicial Member will be from the Centre, and the other from the state. The same applies to Technical Member composition also. ie., Both the State and Centre will have equal representation in the adjudicatory proceedings, resembling the constitution of Authorities for Advance Ruling (AAR).
No Regional Benches are currently under consideration of the GST Council for ensuring proper State Government representation.
States are also proposed to be given the power to form multiple benches within the state, depending on the population or additional local benches as per high business activity of a region inside the state.
Constitution of a single bench for multiple low population states like the North-Eastern States is also under consideration. The GST Council also clarified that there will be no threshold or monetary minimum limit for approaching the State or National GSTAT benches.
The Council adopted the report of the Group of Ministers (GoM) with certain modifications. The final draft amendments to the GST laws shall be circulated to Members for their comments. The Chairperson has also been authorized to finalize the same.
The GST Act was passed in 2017, and it mandated the formation of GST Tribunals to hear appeals against the decisions of the GST Council. However, the government has been slow in forming these tribunals, and as a result, many cases are pending before various high courts and higher judicial bodies.
The delay in forming the GST Tribunals is due to a variety of reasons, including the lack of infrastructure and manpower, as well as disagreements between the central and state governments over the selection of members.
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The 49th meeting of the GST Council was held today, chaired by Union Finance Minister Nirmala Sitaraman at Vigyan Bhawan, New Delhi. The Key Highlights from the Council Meeting includes decisions to amend and nullify some of the Goods and Services Tax Rates (GST Rates) as given below.
The GST Rate for Pencil Sharpeners has been reduced to 12% from 18%.
On a related matter, the Gujarat AAR had ruled that the Supply of sharpeners along with pencils is covered under the category of “mixed supply”.
GST Rates on Rab (Liquid Jaggery), has been slashed from 18% to 5% on pre-packaged and labeled Raab. If the same is sold otherwise, without packaging and label, the same shall attract no GST. It has also been decided to regularize payment of GST on ‘rab’ during the past period on “as is basis” on account of genuine doubts over its classification and applicable GST rate.
Further, it was decided to suitably amend notification No. 104/94-Customs dated 16.03.1994 so that if a device like tag- tracking device or data logger is already affixed on a container, no separate IGST shall be levied on such affixed device and the ‘nil’ IGST treatment available for the containers under notification No. 104/94-Customs shall also be available to the such affixed device subject to the existing conditions.
It has been decided to amend entry at Sl. No. 41A of notification No. 1/2017-Compensation Cess (Rate) so that exemption benefit covers both coal rejects supplied to and by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person.
It has been decided to extend the exemption available to educational institutions and Central and State educational boards for conduct of entrance examination to any authority, board or a body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions.
It has been decided to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.
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The 49th GST Council Meeting Chaired by Finance Minister Nirmala Sitharaman has extended the Time Limit for Application for Revocation of Cancellation of GST Registration and One Time Amnesty for Past Cases.
The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that, the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days.
The GST Council also decided that, where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf for a further period not exceeding 180 days.
The Council has also recommended that an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.
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Union Finance Minister Nirmala Sitaraman chaired the 49th meeting of the GST Council today, at Vigyan Bhawan, New Delhi. The matter of discussion of the meeting held was focused on the following:
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The Ministry of Corporate Affairs (MCA) has notified the Companies (Management and Administration) Amendment Rules, 2023. They shall come into force with effect from 23rd January, 2023. In the Companies (Management and Administration) Rules, 2014, the MCA has amended the form MGT-3 to be certified by the Chartered Accountants, Company Secretaries and Cost Accounatants. MGT-3…
