Topic
The ITAT Patna held that an assessment against a dissolved entity is a legal nullity and quashed the Section 154 penalty order. It clarifies that tax authorities cannot proceed against non-existent bodies, shielding successors and assessees from void demands.
The ITAT Delhi held that commission income from accommodation entries must be taxed at a reasonable rate of 0.15% of total credits, rejecting the arbitrary 3% estimate. It also ruled that a reassessment notice under Section 148 is invalid without prior approval from the specified authority under Section 151(ii), protecting assessees from procedural lapses.
CESTAT Allahabad rules that revenue authorities cannot impose service tax demands solely based on Form-26AS or ITR figures without establishing actual service provision. The judgment reinforces natural justice principles in tax assessments, requiring concrete evidence of taxable services before confirming demands.