Tax INFORM- February 2024

The thirty-eighth issue of our monthly tax newsletter – Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax – 

Domestic Tax Rulings:

• Notice under Section 148 issued in the name of deceased assessee unenforceable in reassessment proceedings: Madhya Pradesh HC.
• Ahmedabad ITAT confirms revenue’s decision holding profit arising on sale of property as business income and not LTCG, in view of intention of doing real estate business.
• Bombay HC clarifies that the Income-tax Act does not consider non-compliance with other Acts as a basis for converting capital receipt into revenue receipt.
• Bombay HC reiterates that actual carrying on of agricultural operations is not necessary for deciding whether land qualifies as agricultural land.
• Chhattisgarh HC dismisses petition as assessee fails to provide adequate evidence to support the genuine hardship claim for waiver of pre-deposit of 20% of the tax demand.

Notifications/ Circulars:

• CBDT notifies ITR-6 for the Assessment Year 2024-25.
• CBDT notifies 16 CIT(A) units in Guwahati, Kochi, Bhubaneshwar, and Nagpur.
• Individuals and HUFs required to be audited under Section 44AB can verify ITR through electronic verification code: CBDT.

Indirect Tax – 

Goods & Services Tax

Case Laws:

• ITC claim cannot be rejected solely based on supplier’s retroactive GST registration cancellation: Madras HC.
• Madras HC directs Appellate Authority to consider belated GST appeal, accepting that delay was owing to petitioner’s illness.
• Delhi HC cancels GST order and show-cause notice due to absence of fair hearing.
• Madras HC rules that Chennai Metro Rail Limited (CMRL) is responsible for deduction of TDS, not its contractors.
• Kerala HC orders reopening of the GST portal to enable tax filing by petitioner whose registration was restored by Appellate Authority.
• Kerala HC emphasises the importance of the statutory appeal remedy available for assessment orders under Section 107 of the CGST Act.

Notifications/ Circulars:

• CBIC notifies ‘Public Tech Platform for Frictionless Credit’ to facilitate information sharing.