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Showing posts from October, 2024

Case Law (SC) -- Broken period interest can be claimed as deduction/expenditure in the case where securities are treated as stock-in-trade and interest income on securities is taxed under Section 28 of the IT Act'

Bank of Rajasthan Ltd v. CIT [2024 INSC 781] dated 16.10.2024 The question is whether a deduction of the broken period interest can be claimed in the case where securities are treated as stock-in-trade and interest income on securities is taxed under Section 28 of the IT Act. Holding “22. At this stage, we may refer to a decision of this Court in the   case   of  Commissioner   of   Income  Tax   (Central), Calcutta v. Associated Industrial Development Company (P)  Ltd.,  Calcutta10 .   In the said decision, this Court held that   whether   a   particular   holding   of   shares   is   by   way   of investments or forms part of the stock-in-trade is a matter which is...
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Case Law (SC) -- Functionality test -- If the construction of a building was essential for carrying out the activity of supplying services, such as renting or giving on lease or other transactions in respect of the building or a part thereof, which are covered by clauses (2) and (5) of Schedule II of the CGST Act, the building could be held to be a plant. Assessee it is entitled to ITC on the GST paid on the construction of the building/mall.

Chief Commissioner of Central Goods and Service Tax & Ors. v. Safari Retreats Private Ltd. & Ors. [2024 INSC 756] dared 03.10.2024 "BROAD ISSUES FOR CONSIDERATION 24. Considering the submissions made by the parties, the following main questions arise for consideration:  (i) Whether the definition of “plant and machinery” in the explanation appended to Section 17 of the CGST Act applies to the expression “plant or machinery” used in clause (d) of sub-section (5) of Section 17?   (ii) If it is held that the explanation does not apply to “plant or machinery”, what is the meaning of the word “plant”? and  (iii) Whether clauses (c) and (d) of Section 17(5) and Section 16(4) of the CGST Act are unconstitutional? RULES REGARDING THE INTERPRETATION OF TAXING STATUTES  25. Regarding the interpretation of taxation statutes, the parties have relied on several decisions. The law laid down on this aspect is fairly well-settled. The principles governing the interpreta...
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Notification -- Central Government issued notification for for waiver of interest, or penalty, or both u/s 128A and notified special procedure for rectification of order passed under section 73 or section 74 or section 107 or section 108 of the Act by way of filing an application for rectification electronically alongwith information in the proforma in Annexure A on the common portal, within a period of six months from the date of issuance of this notification in respect of demand for wrong availment of input tax credit, on account of contravention of provisions of sub-section 16(4), but where such input tax credit is now available as per the provisions of sub-section 16(5) or sub-section 16(6) of Act, and where appeal against the said order has not been filed.

  Notification Nos. 21 & 22 of 2024-Central Tax dated 08.10.2024 S.O. 4373(E).—In exercise of the powers conferred under the section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the following special procedure for rectification of order, to be followed by the class of registered persons (hereinafter referred to as the said person), against whom any order under section 73 or section 74 or section 107 or section 108 of the said Act has been issued confirming demand for wrong availment of input tax credit, on account of contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the said Act, and where appeal against the said order has not been filed, namely:–  2. The said person shall file, ele...
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Case law (SC) -- The assessing officer had no jurisdiction to consider the claim made by the assessee in the revised return filed after the time prescribed by Section 139(5) for filing a revised return had already expired.

 "8. Coming to the decision of the Tribunal, we find that the Tribunal has not exercised its power under Section 254 of the IT Act to consider the claim. Instead, the Tribunal directed the assessing officer to consider the appellant's claim. The assessing officer had no jurisdiction to consider the claim made by the assessee in the revised return filed after the time prescribed by Section 139(5) for filing a revised return had already expired." Shriram Investments v. The Commissioner of Income Tax [2024 INSC 760] dated 04.10.2024
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Case law (SC) -- For time limit for issuance of a reassessment notice u/s 148, TOLA provisions will continue to apply to the Income Tax Act after 1 April 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 March 2020 and 31 March 2021. The directions in Ashish Agarwal will extend to all the ninety thousand reassessment notices issued under the old regime during the period 1 April 2021 and 30 June 2021.

Union of India & Ors. v. Rajeev Bansal [2024 INSC 754] dated 03.10.2024   " B. Issues  a. Whether TOLA and notifications issued under it will also apply to reassessment notices issued after 1 April 2021; and  b. Whether the reassessment notices issued under Section 148 of the new regime between July and September 2022 are valid. --------x---- ------x----------x------ G. Conclusions  114. In view of the above discussion, we conclude that:  a. After 1 April 2021, the Income Tax Act has to be read along with the substituted provisions;  b. TOLA will continue to apply to the Income Tax Act after 1 April 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 March 2020 and 31 March 2021;  c. Section 3(1) of TOLA overrides Section 149 of the Income Tax Act only to the extent of relaxing the time limit for issuance of a reassessment notice under Section 148;  d. TOLA will exte...
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