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26 COVID patients run out of breath at Goa hospital + black fungus infect 3 patients in MeerutSchool shooting in Russia - six children & a teacher killedCOVID-19: Oil & gas PSUs help in oxygen transportationCOVID-19: Centre asks States to allocate 70% vaccines for 2nd dosePM thanks Bhutan for support in wake of COVID-19 pandemicI-T - Department cannot adjust refund dues of taxpayer, without issuing separate intimation u/s 245 for adjustment of outstanding demands, which were already under stay by direction of Tribunals & High Courts: HCI-T - Reassessment will be invalid in absence of tangible matrial, if no addition was made by AO and query answered by taxpayer in original assessment proceedings stood accepted: HCIndia, BRICS bank to co-host seminar on social infra financing & digital techIndian variant fast turning out to be global concern; first cases detected in PhilippinesWHO disfavours use of Ivermectin for COVID-19 treatment1972 Batch IRS officer Asish Dasgupta passes awayGST - Promotional Products/Materials & Marketing items used by Appellant can be considered as 'inputs', however, GST paid cannot be availed as ITC in view of the provisions of s.17(2) and s.17(5)(h): AAARChina’s population grows beyond 1.41 billionGST - For operational convenience, the transporter would load lesser quantity last and larger quantity first: HCGST - Contention that for delivery of 14.30 tonnes at Hyderabad, the transporter would have to offload even 2.01 tonnes which is on top of the consignment in the goods vehicle and then reload it in Hyderabad is an utterly perverse view and shockingly ignores operational convenience of the transporter: HCNiti Aayog, Mastercard release report on digital financial inclusionVAT - Principles of natural justice are not contravened where Revenue discharges burden cast upon it to furnish relevant material sought for by assessee: HCOver 1 lakh tonne of free food grains distributed under PM-GKAYI-T - Premium paid for Keyman Insurance policy cannot be treated as business expenditure, without establishing nexus between business and such premium expense: HCLockdown clipping wings of Coronavirus - Daily number down to 3.3 lakh with 3900 deaths as per official tally + Global daily caseload number marginally down to 6 lakh but death count goes up to 10,600 in 24 hoursCalifornia declares drought emergency in 41 counties
Untitled Document

TODAY'S CASE (DIRECT TAX)

Taxindiaonline.com



May 11, 2021

++ I-T - Department cannot adjust refund dues of taxpayer, without issuing separate intimation u/s 245 for adjustment of outstanding demands, which were already under stay by direction of Tribunals & High Courts: HC

++ I-T - Reassessment will be invalid in absence of tangible matrial, if no addition was made by AO and query answered by taxpayer in original assessment proceedings stood accepted: HC

++ I-T - If no new material surfaced during reassessment on which AO could have formed requisite belief with regard escaped assessment, especially when taxpayer has made full disclosure, no reopening is permitted: HC

++ I-T - Correctness of computation of net loss for purpose of arriving at book loss and for purpose of MAT in contrast with returns filed u/s 139 in refund, cannot be tested under Article 226: HC

++ I-T - Premium paid for Keyman Insurance policy cannot be treated as business expenditure, without establishing nexus between business and such premium expense: HC

++ I-T - No appeal merits adjudication if tax effect in respective case is less than threshold limit prescribed by CBDT Circular: HC

++ I-T - It is a fit case for remand where the assessee does not receive a proper hearing due to notice of hearing being delivered at the incorrect address & not being served at the assessee's correct address: ITAT

++ I-T - Disallowance should be restricted to profit element embedded in non-genuine purchase and not entire purchase: ITAT

++ I-T - Appeal must be dismissed when assessee avails 'Vivad Se Viswas Scheme 2020' and files necessary declaration: ITAT

++ I-T - Addition cannot be made to assessee's total income merely based on surmises, conjectures and without any valid evidences: ITAT

++ I-T - U/s 36(1)(v), any provision or contribution made to an approved gratuity fund is allowable, provided it should be approved by Chief CIT: ITAT

May 10, 2021

++ I-T - Assessment order cannot be contested directly through writ petition, where no stay petition is filed against such order: HC

++ COVID 2nd wave - Extension of I-T due dates - No coercive measures against any assessee - Any assessee to be given 3 weeks' prior notice to approach relevant authority or court: HC

++ Expenses incurred towards keeping the business primed up, cannot be capitalized: HC

++ When assessment is unabated or concluded on date of search, no addition can be made in absence of incriminating material found as a result of search: ITAT

++ AO cannot reject identity and credit worthiness of company & genuineness of transaction in one AY & accept them in immediately succeeding AY: ITAT

++ Deduction u/s 54F - relevant date for determining purchase of property is date on which full consideration is paid & possession is taken and not date on which initial payment is made: ITAT

++ While computing disallowance u/s 14A r.w. r 8D(2) average value of investments, only those investments which yield exempt income for the year should be considered: ITAT

++ Receipt in current AY of any amount given as advance in earlier AY, cannot be deemed unexplained cash deposits: ITAT

May 08, 2021

++ Expenditure in foreign exchange has to be excluded from both export turnover & total turnover while computing eligible deduction u/s 10A: HC

++ Reopening of assessment by AO without independent application of mind, merely on basis of report from Investigation Wing, is not in accordance with law: ITAT

++ While examining application seeking registration u/s 12AA, CIT(E) should only examine if objects of Trust are charitable in nature and its activities are in consonance with its objects: ITAT

May 07, 2021

++ Agricultural land does not normally qualify as 'property' as defined in Explanation to Sec 56(2)(vii), but may qualify as such in certain exceptional cases : ITAT

++ Appeal is not maintainable with CIT(A) u/s 246A or any other provisions of I-T Act against interlocutory order passed by AO: ITAT

++ When AO follows direction of Pr. CIT in order passed u/s 263, power of revision cannot be done on ground that AO has not travelled beyond the directions: ITAT

++ Non-granting of opportunity to assessee to cross-examine witness is illegal and fatal to assessment order: ITAT

++ For non-compliance of provisions of sec. 194C(7), assessee's claim cannot be denied if there is compliance on assessee's part of provisions u/s 194C(6): ITAT

May 06, 2021

++ Disallowance u/s 14A r.w.r. 8D cannot go beyond extent of exempted income: ITAT

++ Penalty proceedings is not sustainable when notice issued by AO is bad in law being vague & ambiguous: ITAT

++ Additions framed in respect of cash gifts received by assessee on occasion of marriage, are invalid where genuineness & source of cash gifts& identity of donors is established: ITAT

++ Where registration certificate of a trust u/s 12A is not filed before the CIT (A), this factor cannot be sole basis for rejecting the trust's claim for exemption u/s 11: ITAT

May 05, 2021

++ Change of opinion on part of new AO is no grounds to re-open concluded assessment: HC

++ Invoking Sec 2(15) solely due to revenue arising from organising seminar cannot make a Trust lose its charitable nature: ITAT

++ Interest income earned from investment of surplus funds with Co-operative Banks is eligible for deduction u/s 80P(2)(d) or 80P(2)(a)(i): ITAT

++ Owning ships or barges is not a condition for availing of benefits of Sec 33AC: ITAT

++ CIT is obliged u/s 263 to not only point out error in assessment order but also to record findings mentioning how such order is erroneous: ITAT

May 04, 2021

++ Re-opening of assessment is valid only when exact reasons behind such exercise are specified before the assessee & not by just informing assessee that certain reasons to believe exist : HC

++ No addition can be made to assessee's income when no incriminating material is found during course of search from assessee's premises: ITAT

++ Where despite of court decree, there is uncertainty of realization of interest income therefore same is rightly not recognized in the books of accounts: ITAT

May 03, 2021

++ I-T - Penalty u/s 271(1)(c) is sustainable where assessee does not show any reasonable cause for non-submissions of returns within the period prescribed u/s 153(1): HC

++ I-T - Even if a small part of cause of action arises within territorial jurisdiction of HC, the same by itself may not be considered to be a determinative factor compelling the High Court to decide the matter on merits: HC

++ Assessee cannot parallely maintain a statutory appeal as well as a writ petition in challenge of the same order: HC

++ To re-open assessment made u/s 143 (3) after expiry of 4 years from end of relevant AY, reasons recorded must allege failure on assessee's part to disclose fully & truly material facts necessary for assessment: ITAT

++ If on basis of material on record, assessee is entitled to a relief that remained to be allowed, the same constitutes mistake apparent from record rectifiable u/s 154: ITAT

May 01, 2021

++ Tribunal, being last fact finding Authority, is under legal obligation to record correct finding of fact, rather than summarily remanding files without adjudicating on preliminary issue: HC

++ AO cannot simply refuse to grant deposit orders of lesser amount than 20% for obtaining stay, during pendency of appeal, by passing non-speaking order: HC

++ Search assessment order u/s 153C passed for second time, is invalid, where no additional demand is raised against assessee & where no escapement of income is attributed to assessee : HC