Clearance of PF/ESI payment after the due date due to technical glitches/server issues is allowable as deduction: ITAT Ahemedabad
Clearance of PF/ESI payment after the due date due to technical glitches/server issues is allowable as deduction: ITAT Ahemedabad In a recent case, disallowance was made u/s. 36(1)(va) of the Income Tax Act for late deposit of employee’s contribution to PF/ESI. The law in regard to payment of PF/ESIC after the due date of… […]
VAT Penalties not allowable as Deduction: ITAT Bangalore
VAT Penalties not allowable as Deduction: ITAT Bangalore Recently, ITAT Banglore in the case of Kadharegowda Siddaraju vs ITO (ITA No. 1641/Bang/2024; AY 2018-19; Dt.of Order 23/10/2024 has held that VAT Penalties cannot be allowed as Income Tax Deduction u/s 37. Let us have a Short Overview of the case: In this case,… […]
When Charity is Harder than Business: Stricter Tax Rules for Charitable Trusts
When Charity is Harder than Business: Stricter Tax Rules for Charitable Trusts Running a charitable trust might seem simpler than managing a business at first glance. However, compliance with the Income Tax Act, 1961, tells a different story. Businesses focus on profits, while charitable trusts navigate a labyrinth of tax laws, stringent compliance requirements, and evolving regulations…. […]
Bombay HC Grants Stay on GST Circular for Corporate Guarantees
Bombay HC Grants Stay on GST Circular for Corporate Guarantees. The Bombay High Court has delivered a crucial interim relief to Vedanta Ltd., staying the operation of Circular No. 204/16/2023-GST, which treated corporate guarantees (CG) provided by parent companies to subsidiaries as a taxable “supply of service” under Schedule I of the CGST Act,… […]
Gift from father and father in law cannot be made taxable on mere technical grounds: ITAT Delhi
Gift from father and father in law cannot be made taxable on mere technical grounds: ITAT Delhi Facts: 1. The instant appeal filed by the assessee is directed against the order dated 15.03.2024 passed by the National Faceless Appeal Centre (NFAC), Delhi. The addition of Rs.10,80,000/- on account of cash deposit made by the… […]
Section 292B could not cure the jurisdictional defect of issuing a notice to a non-existent person.
Section 292B could not cure the jurisdictional defect of issuing a notice to a non-existent person. The Delhi High Court in a write petition in the case of Late Sh. Lal Chand Verma (Through His Legal Heir) vs. Union of India & Anr. [W.P. (C) 8184/2023 & CM APPL. 31377/2023 (Stay)] quashed the reassessment… […]
Relinquishment or extinguishment of rights is taxable even without a conventional sale
Relinquishment or extinguishment of rights is taxable even without a conventional sale The Supreme Court in a recent case before it has clarified a critical aspect of income tax law, ruling that capital reduction constitutes a ‘transfer’ of capital assets under Section 2(47) of the Income Tax Act, 1961. Here’s a quick breakdown of the… […]
Reopening based on the information received in accordance with the Risk Management Strategy (RMS): Bombay HC dismissed writ petition
Reopening based on the information received in accordance with the Risk Management Strategy (RMS): Bombay HC dismissed writ petition Bombay High Court: Sanjay Ratra WP 38 of 2025 has dealt with various issues wherein the legaility of reassessment proceeding was hallenged. Let us have a Short Overview of the case: Notice under section 148A(b): On… […]
Input Tax Credit (ITC) cannot be claimed on goods purchased for sales promotions
Input Tax Credit (ITC) cannot be claimed on goods purchased for sales promotions The recent Madras High Court judgment in the case of ARS Steels and Alloy International WP 31/2022 has significant implications for businesses engaging in sales promotional activities. The court ruled that Input Tax Credit (ITC) cannot be claimed on goods purchased… […]
Filing an Updated Return under Section 139(8A) of the Income Tax Act, 1961: An overview
Filing an Updated Return under Section 139(8A) of the Income Tax Act, 1961: An overview If any taxpayers has failed to furnish the belated or revised income tax return, the only option with the taxpayers is to furnish an updated return for an assessment year within 𝟮𝟰 𝗺𝗼𝗻𝘁𝗵𝘀 from the end of the relevant… […]
