Budget 2024 Updates

TPO gets powers to deal with domestic transactionsOne more Vivad Se Vishwas Scheme; Date to be notifiedNo deduction u/s 37 for settlement amount if paid for violation of any lawFM proposes to lessen tedium of TDS; reduces rates in many casesFM overhauls capital gains regime; to come into play from todayFM hikes exemption limit for long-term capital gain to Rs 1.25 lakh + hikes tax rate to 12.5% on specified financial assetsTourism: Temple corridors to be developed in BiharCGST - Finance Bill proposes to amend Sec 9 to take ENA out of purview of GST + inserts Sec 11A to regularise non-levy of tax on general practice in tradeCGST - Sub-sections to be inserted in Act to relax time-limit to avail ITC u/s 16(4) + New Sec 74A proposed to provide for common time limit for demand notices in fraud cases3.4% of GDP allocated as Capital expenditure to support infra sectorCGST - Proviso to be inserted in Sec 30(2) to provide for enabling conditions for revocation of registration + Amendment in Sec 39 to mandate return filing by TDS deductors even if there is no deduction in a particular monthIGST - Amendment proposed to prohibit refund of unutilised ITC on zero-rated supplyIncome tax - Finance bill revamps re-assessment regime againCustoms - Finance Bill proposes to amend Sec 28DA for acceptance of different types of proof of origin under FTAsFM hikes standard deduction to Rs 75K for new ITR regime + revises tax rates for all income slabs + Rs 7000 Cr revenue foregoneIncome tax - Search & Seizure cases - Block assessment is backBudget withdraws 2% equalisation levyFM reduces corporate tax rate for foreign companies to 35%FM proposes vivad se vishwas scheme + hikes monetary limits for filing appealsFM proposes 20% capital gains tax on short-term assets + listed financial assets held for more than one year to be classified as long-termGovt scraps TDS on Mutual Funds + decriminalises delay in depositing TDS + rationalisation of compounding of offences + revamps reassessment periodBudget proposes comprehensive review of I-T Act, 1961 + simplifies provisions for charities and TDSFM reduces customs duty on gold and silver to 6% + Nil BCD on nickel cathodeBudget proposes to reduce BCD on mobile phone and chargers to 15% + exempts 25 minerals from customs dutyFM exempts cancer medicines from Customs duty + amends BCD for various machinesFM proposes Rs 48 lakh expenditure outlay; 4.9% fiscal deficitFM announces Rs 1 lakh crore fund for developing space economyPromotion of Tourism - Vishnupad temple and Bodh Gaya temple corridors to be supportedFM announces over Rs 11 lakh crore capital expenditure in current fiscalGovt to invest in small Nuclear energy plants in partnership with private playersCentre to ask States to lower stamp duty for women purchasers of housesIBC - More Benches of NCLT to be set up to speed up recoveryFM spikes limit of Mudra loan to Rs 20 lakhsBudget offers financial aid to labour-intensive MSMEs in manufacturing sectorGovt announces 3 crore additional houses under PM SchemeGovt to secure Rs 15K loan for AP from multilateral agenciesGovt to frame new policy for all-round development of Bihar, Jharkhand and OdishaGovt to give one-month salary to all new recruits in formal sector through EPFOGovt to promote vegetable clusters closer to urban settlementsGovt to focus on productivity of agriculture with climate-resilient seedsFM allocates Rs 2 lakh outlay for PM's five schemes for job creation and farmersFM Nirmala Sitharaman presents 7th Union Budget in ParliamentBudget 2024: FM arrives at Parliament; Speech to begin at 11AMEconomic Survey 2023-24 - from GST PerspectiveUkrainian FM goes on tour to ChinaI-T- Additions framed u/s 69A are untenable where affidavits submitted by assessee's parents to explain source of cash deposits, were discarded by AO without consideration : ITATSurvey acknowledges productivity loss due to mental health disordersI-T- Short term capital gains returned by the assessee in terms of provisions of section 50 of the Act on assets held for a period of more than 36 months be treated as long term capital gains: ITATExpenditure on social services up from 6.7% to 7.8% of GDP: SurveyI-T-Additions framed u/s 68 are upheld where assessee is unable to prove genuineness of transaction involving purchase and sale of penny stock: ITATTrade deficit contracts to USD 78 bn from USD 126 bn in 2023I-T-Re-assessment is invalidated when there is no failure on part of assessee to make full and true disclosure of facts necessary for assessment: ITATCorporate profitability has peaked to 15-yr-old high between 2020-2023: SurveyI-T- When cash generated out of sales has been credited in the books of accounts, the provisions of Sec.69A could not be invoked: ITATBudget 2024: More relief for senior citizens & individual taxpayers on card; tweaking of capital gains tax likely; steady capital expenditure to stayI-T- If any amount invested is purely a strategic investment & for purpose of commercial expediency, then AO cannot hold such investments to be for non-business purpose: ITATGoogle backpedals on plan to scrap cookies from ChromeCus - For a HNWI individual, an expensive watch of 'Rolex' make would be his personal effect but same may not be the case if the person is of mere means - Pendant studded with diamonds not liable for confiscation: HCGovt amends Recruitment Rules for Debts Recovery TribunalGST - Even if no date, time or place of hearing is indicated in the notice issued, it was the duty of assessee to file his reply to SCN, which was admittedly received - Plea regarding violation of principles of natural justice cannot be countenanced: HCAbhinav Bindra conferred with Olympic OrderGST - Mismatch between value of e-way bills generated on portal and returns filed in Form GSTR-3B - Petitioner did not provide a comprehensive explanation - To remit sum of Rs.3.50 crores within six weeks - Matter remanded: HCHackers mercilessly hack Bangladesh PM’s website along with police portalsGST - Rule 30 of Rules, 2017 - Assessing officer ought to have issued summons and obtained clarification rather than estimating the outward supply value at 110% of purchase value - Order set aside and matter remanded subject to remit of 10% disputed tax demand: HCUS law-makers call for resignation of Secret Service chief in Trump assassination caseGST - Net ITC shown incorrectly - An inadvertent error was committed and such error was rectified, albeit irregularly, however, sum recovered from petitioner's bank account - Order set aside and matter remanded: HCKarnataka IT Industries piling pressure on govt to extend working hoursGST - Since notification is declared unconstitutional, Amount of IGST paid pursuant to Entry No. 10 of Notification No. 10 of 2017 is to be refunded along with statutory interest: HCStudy says earth’s water depleting fastFDI inflows slide to USD 26.5 bn in 2024 from USD 42 bn in 2023: Economic Survey
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June 29, 2024

++ I-T- AO has not formed prima facie and independent belief on reasons recorded that income has escaped assessment : ITAT

June 28, 2024

++ Black Money Act - Non-disclosure of assessment of tax return for AYs 2007-08 or 2009-10 cannot be used to criminally prosecute under Black Money Act, which came into force in the year 2015: HC

++ I-T- Auction of assessee's properties by Department for recovering tax dues is invalid, where assessee's appeal against tax demand is pending disposal; normal rule w.r.t. auctions in favor of decree holders, inapplicable in this situation: HC

++ I-T- Revisionary order u/s 264 passed without considering assessee's written submissions; order relies on undisclosed information sourced from third parties: HC

++ I-T- Land owned by Smt. A. Vindhyavali is not capital asset in hands of assessee and therefore, no addition can be made in respect of such land for capital gains arising out of sale of capital asset : ITAT

++ I-T- Transactions entered into under current account arrangement & meant for mutual benefit, do not come under purview of Section 2(22)(e): ITAT

++ I-T- AO cannot disallow expenditure or work out income relatable to expenditure on accrual basis, which had not been claimed in Profit & Loss account: ITAT

June 27, 2024

++ I-T- Faceless Assessment - Section 144B mandates granting a personal hearing; order passed without meeting this procedural requirement, is invalidated: HC

++ I-T- Re-assessment invalid where based entirely on information supplied by NSE; no application of mind, evidence such as statutory audit report not considered by AO: HC

++ I-T- Re-assessment rightly commenced where assessee provides no evidence to justify claims of being engaged as a land aggregator, opening up possibility of income having escaped assessment: ITAT

++ I-T- Following Tribunal order in assessee's own case, exemption claimed u/s 11 can be allowed: ITAT

++ I-T- Service of notice u/s 148 of the Act is a mandatory statutory requirement for framing an assessment u/s 147: ITAT

++ I-T- Assessment order passed in the name of a non-existent company, despite being informed of the amalgamation, is null and void: ITAT

++ I-T- Once AO has made addition u/s 69 same cannot be cured in subsequent proceedings : ITAT

June 26, 2024

++ I-T - Assessee's additional income is taxable as 'Business Income and no addition is needed u/s 69: ITAT

++ I-T- Assessee is entitled to claim of deduction u/s 80P(2)(d) towards interest earned on deposits with cooperative banks : ITAT

++ I-T- Section 69A is not applicable to transactions which are recorded in books of accounts maintained by assessee : ITAT

++ I-T- Order rejecting approval u/s 80G is valid where the same is cryptic in nature & where it omits to make any reference to Section 80G or rules thereunder : ITAT

++ I-T- The benefit of indexed cost of acquisition is applicable to an assessee while computing capital gain for the purpose of computation of book profit u/s 115JB of the Act: ITAT

++ I-T- Since assessee has filed audit report much after assessee had e-filed Form 10CCB, therefore, claim of deduction ought to have been granted : ITAT

++ I-T- Once the timeline prescribed for filing in Form No.10AB for recognition u/s.12A of the Act, has been extended, same need to be treated as extended for forms viz., Form No.10AB for renewal of approval/recognition/registration under Clause (iii) of first proviso to sub- sec.(5) of Sec.80G of Act: ITAT

June 25, 2024

++ I-T- Settlement applications must contain full and true disclosure of the income supported by documentary evidence; absence of such disclosure is sufficient reason to deny remedy by way of settlement: HC

++ I-T- CBDT's Office Memorandum containing guidelines for deciding Stay Applications, cannot supplant need to probe whether claimant makes out prima facie case for grant of Stay: HC

++ I-T- Re-assessment order invalidated where assessee is given about 24 hours to furnish reply to SCN; CBDT's SOP mandates giving 7 days' time: HC

++ I-T- As per precedent, IBC 2016 prevails over I-T Act 1961; however I-T Department has limited authority to assess tax dues owed by corporate debtor, but cannot suo motu recover dues during moratorium period u/s 14 or 33 of IBC: ITAT

++ I-T- AO cannot probe any issue not listed for investigating in a limited scrutiny; power of revision cannot be exercised where AO does not probe a certain issue which was beyond scope of limited scrutiny: ITAT

June 24, 2024

++ I-T- Writ court's intervention in re-assessment proceedings is unwarranted where assessee could also have raised the relevant arguments in appeal: HC

++ I-T- Activity of shipbuilding qualifies as construction work so as to be eligible for Fringe Benefit Tax under Section 115WE of the Act: ITAT

June 22, 2024

++ I-T- AO cannot travel beyond the mandate, he cannot proceed to make any other additions beyond the reasons recorded to reopen the assessment: ITAT

++ I-T- Provisions of Section 68 place burden on assessee of proving identity, creditworthiness of parties & genuineness of the transaction; assessee must disprove allegations levelled to AO's satisfaction: ITAT

++ I-T-CIT(A) cannot absolve assessee from rigors of Section 68, where assessee does not furnish evidence to prove identity, creditworthiness of parties & genuineness of transaction: ITAT

++ I-T- Furnishing of audit report for claiming a deduction or exemption is mandatory requirement, while mode & stage of filing thereof is a procedural aspect: ITAT

++ I-T- Where requisite audit report is available with AO before assessment order is framed, then claim of deduction cannot be denied to assessee, even if audit report may not have been filed along with ITR: ITAT

June 21, 2024

++ I-T- Re-assessment order cannot be faulted, where assessee does not file reply to Show Cause Notice within timely manner; costs of Rs 5000/- imposed on assessee for delayed filing of replies: HC

++ I-T- Provisions of Section 245 mandate ITAT to hear appeals on merits; cannot dismiss appeal for non-prosecution without considering merits of the case: HC

++ I-T- Assessment order invalidated where passed in name of deceased assessee: ITAT

++ I-T- Unexplained cash credit - additions framed u/s 68 upheld, where assessee omits to furnish evidence to explain nature of transaction or the source of funds found in assessee's possession: ITAT

++ I-T- Bogus purchases - profit element embedded therein be disallowed, rather than disallowing entire quantum of purchases: ITAT

June 20, 2024

++ I-T- Re-assessment order merits being quashed where assessee deserves an opportunity to file reply to Show Cause Notices : HC

++ I-T- Considering principle of natural justice, case can be remanded back to CIT(A) when assessee shows justified reasons for non compliance of notice issued by CIT(A) : ITAT

++ I-T- Appeal is not to be treated as withdrawn till issue of certificate by Designated Authority in Form 5 under Vivaad Se Vishwas Scheme : ITAT

June 18, 2024

++ I-T- Assessment order is invalidated where passed without considering assessee's request for a personal hearing, thereby breaching mandate of Section 144B: HC

++ I-T- Provisions u/s 222(2)(b) of I-Tax Act, the provisional attachment could be extended up to two years or sixty days from date of order of assessment whichever is later: HC

++ I-T- Assessment order is rendered void where assessee was denied opportunity of hearing as well as sufficient time for filing reply to Show Cause Notice: HC

++ I-T- A house constructed without any amenities, cannot be construed as a residential house for availing exemption u/s 54: ITAT

++ I-T- There is no bar on applicant to move application for final registration before period of six months from expiry of provisional registration : ITAT

June 17, 2024

++ I-T- It is necessary to adhere to statutory timeframes laid down for claiming deductions, more so where powers of condonation u/s 119(2) are limited to extraordinary circumstances: HC

++ I-T- Issue of addition for unexplained cash deposits should be remanded as there are several aspects which need examination by AO and filing of details/documents by assessee : ITAT

++ I-T- Deduction can be claimed u/s 80P(2) only if assessee has fulfilled requirement of section 80A(5)/80AC: ITAT

++ I-T- Additions framed u/s 68 not tenable where AO does not furnish evidence to disprove genuineness of transaction involving unsecured loan: ITAT

++ I-T- Cash loans between directors and their companies will not attract penalty u/s 271E where such loans had to be given out of expediency: ITAT

June 15, 2024

++ I-T- Section 153C is only an enabling provision and does not preclude reopening U/s. 148A(b) of the Act: ITAT

June 14, 2024

++ I-T- Re-assessment order is invalidated where passed without considering the assessee's reply to Show Cause Notice and relevant evidence adduced: HC

++ I-T - Summons cannot be assailed u/s 202 of CrPC, where proper inquiry was conducted u/s 202 of CrPC & sufficient grounds for proceeding were made out: HC

++ I-T- AO lacks jurisdiction to substitute NAV method of assessing valuation of shares, once assessee had exercised option of a DCF valuation method as per Rule 11UA(2) of I-T Rules: HC

++ I-T- Long term capital gains on sale of shares is genuine as assessee has submitted requisite details in respect of purchase and sale of shares and same is not disproved : ITAT

++ I-T- No disallowance of expenses on ad hoc basis can be made when books of account and book results has not been rejected by Revenue: ITAT

++ I-T- Additions framed by considering only credit entries in account books, while debit entries were ignored; case remanded for reconsideration: ITAT

June 13, 2024

++ I-T- Assessee is eligible for grant of final registration under Section 80G(5) of Act : ITAT

++ I-T- A ground of appeal against order passed by the AO, can be raised for the first time before ITAT itself, where such ground was not raised before the CIT(A) : ITAT

++ I-T- Object and intention behind CBDT Circular No. 7 of 2024 is not to deprive any institutions of its benefit : ITAT

++ I-T- Since records clearly prove identity, capacity and genuineness of share transactions addition u/s 68 cannot be made : ITAT

++ I-T- Case can be remanded as various sub issues are yet to be decided including whether residential property purchased is ready-to-move-in flat or under-construction flat : ITAT

June 12, 2024

++ I-T- Booking advance converted into unsecured loan to be paid with interest & which is reflected in books seized during Search does not qualify as unexplained money: ITAT

++ I-T- If credit balance is confirmed by sundry creditor and assessee has pay off liability, there remains no scope for bringing credit balance under ambit of cessation of liability u/s 41(1) of Act : ITAT

++ I-T- Depreciation on goodwill arising on account of amalgamation amongst group companies, is allowed in current year, where such benefit is also allowed in preceding year: ITAT

++ I-T- Provision created for investor awareness as per SEBI rules is direct liability of assessee and allowable expenditure : ITAT

June 11, 2024

++ I-T- On-time voluntary payment not arising out of any statutory or contractual obligation would not tantamount to prerequisite under Section 17 (2)(vi) of the Act: HC

++ I-T- Immunity from prosecution granted by SETCOM after filing complaint but before framing of charges; continuation of complaint is gross abuse of process of law: HC

++ I-T- Dismissal of appeal by lower authorities is valid where assessee does not participate in personal hearing; assessee nonetheless given fresh chance to present arguments: HC

++ I-T- In any case, the assessee is eligible to apply for final registration only after the grant of provisional approval: ITAT

++ I-T- Assessee's ground of Audi Alteram Partem does not hold water where assessee skips personal hearing on 6 occasions: ITAT

June 10, 2024

++ I-T- Writ court need not interfere in matter where assessee also has appellate remedy available: HC

++ I-T-As per settled position in law, interest accrued on compensation received can be termed as capital receipt & hence, not taxable: HC

++ I-T- As is trite law , failure of AO to pass draft assessment order u/s 144C, vitiates the final assessment order, due to lack of jurisdiction: ITAT

++ I-T- Additions framed without bringing adverse evidence on record, cannot be sustained: ITAT

June 08, 2024

++ I-T- Re-assessment cannot be resorted to, based on the statements made by a third party in respect of assessee: ITAT

++ I-T- Capital gains arising on sale of shares cannot be regarded as sham profit and consequently, additions under made u/s 68 or section 69A of the Act is not justified: ITAT

++ I-T- Merely because cheques have not been encashed it cannot be said that the transaction is incomplete because assessee has paid stamp duty and registration fees : ITAT

June 07, 2024

++ I-T - Transit rent, akin to hardship allowance is not to be considered as revenue receipt and hence is not liable to TDS deduction: HC

++ I-T- Revenue is not justified in rasing tax on same income in year under consideration, when tax on same has already been taken in another assessment year : ITAT

++ I-T- Assessment orders are void ab initio as CIT(A) has fallen in error to consider firm to be in existence during years under consideration: ITAT

++ I-T- Transfer of excess liability is nothing but a capital transaction which does not warrant the transaction to be routed through Profit and Loss account: ITAT

June 06, 2024

++ I-T- Assessee cannot claim to have been denied personal hearing before passing of order, where assessee himself does not participate in personal hearings or respond to notices: HC

++ I-T- Interest earned by a cooperative bank from investment made in another cooperative bank, is eligible for deduction u/s 80P: ITAT

++ I-T- Since CIT(A) has passed well-reasoned order for cash sales, it does not require any interference: ITAT

++ I-T- If assessee has pool of both interest-free & interest-laden funds, then any advances made to subsidiaries or to family, will be presumed to be made out of interest-free funds: ITAT

++ I-T- AO cannot stand in assessee's shoes to ascertain commercial or other expediency behind grant of advances: ITAT

++ I-T- Additions framed in respect of bogus purchases merits being restricted to the profit element embedded in such purchases: ITAT

++ I-T- Merely because certain amount is payable for last six years that does not mean that there is cessation of liability which can be taxed : ITAT

++ I-T- Additions framed on account of unexplained investments are unsustainable, where no evidence exists to show that the assessee paid any on-money towards an investment: ITAT

June 05, 2024

++ I-T-Writ petition challenging assessment order need not be entertained where assessee also has parallel remedy of statutory appeal: HC

++ I-T-Writ jurisdiction cannot be invoked in respect of an order which is not lacking in jurisdiction or is not prima facie illegal and does not violate the rules of natural justice: HC

++ I-T- Faceless Assessment provisions enacted w.e.f. 01.04.2021 cannot be applied retrospectively: HC

++ I-T- Section 50C of the Act has no application to the sale of the property after its conversion into stock in trade : ITAT

++ I-T- Income from share trading activity is rightly returned as Short Term Capital Gain as assessee has shown all investments in shares under head 'investments' and not as 'stock-in-trade': ITAT

June 04, 2024

++ I-T- Re-assessment cannot be done in respect of company which ceases to exist on account of its amalgamation: HC

++ I-T - Notices issued u/s 148A(b) & 148 are not sustainable as reasons to believe that income escaped assessment is without basis: HC

++ I-T- Addition made on account of unexplained investment u/s 69 of the Act is not justified in cases where source of such deposits have been established by assessee: ITAT

++ I-T- Interest income earned on fixed deposits with cooperative bank or scheduled bank, partakes character of business income & hence is eligible for deduction u/s 80P: ITAT

++ I-T- As per settled precedent, situs of AO is only key factor for ascertaining jurisdiction of Appellate Forum, irrespective of administrative order passed u/s 127 for transfer of cases; ITAT cannot hear matter where it has no jurisdiction over AO concerned: ITAT

June 03, 2024

++ I-T- Re-assessment invalidated where sanctioned by Principal CIT rather than by Principal CCIT who holds mandate to sanction this exercise: HC

++ I-T- Re-assessment invalidated where commenced solely by invoking amended provisions of Section 148A which provide enlarged scope for re-assessment & where no new evidence exists to show escapement of income : HC

++ I-T- As per settled position in law, even a correct order gets nullified if it is passed by the wrong authority who did not have jurisdiction to pass such order: HC

++ I-T- Identical amount received by the co-employee from the same employer shall be treated as salary in advance and allowed the benefit of the provisions under section 89(1) of the Act read with rule 21A(2) of the IT Rules, 1962: ITAT

June 01, 2024

++ I-T- Cash gifts received from close family members cannot be disallowed where sources of income for giving such gifts, are furnished: ITAT

++ I-T- Acceptance of voluntarily surrendered professional receipt of assessee by AO is in accordance with judicial pronouncements and therefore justified : ITAT

++ I-T- A Tribunal is vested with the requisite authority and jurisdiction to admit additional evidence and material in order to do substantial justice to the parties: ITAT

++ I-T- Revenue has erred in re-computing book profit by making additions towards interest income credited to profit and loss account towards waiver of interest by TIIC : ITAT


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