#[Tax / Banking & Finance Law]

Kolkata ITAT quashed reassessment notices under Section 148A for failing to provide the mandatory 7-day compliance period and unsigned notices, reinforcing strict procedural safeguards in tax reassessment. The ruling underscores the importance of adherence to statutory timelines for notices issued under the Income Tax Act, impacting future reassessment proceedings.

ITAT Delhi bench ruled that orders giving effect to ITAT decisions are appealable under Section 246A, and CIT(A) can adjudicate interest u/s 244A adjustments. Clarifies refund computation mechanics and jurisdictional limits for tax appeals.

CESTAT has ruled that business facilitators providing banking services in rural areas-such as sourcing loan applications for HDFC Bank among government school teachers-are exempt from service tax under Entry 29(g) of Notification 25/2012-ST. This clarifies a critical exemption for fintech intermediaries and rural banking agents, shielding them from retrospective tax demands based solely on Form 26AS data without proving taxable service delivery.

CESTAT quashes excise demand and penalties, ruling that extended limitation under Section 11A(4) cannot be invoked if the department was fully aware of the transactions. The judgment reaffirms that suppression of facts must be deliberate for extended limitation to apply, impacting tax assessments where transparency exists.

ITAT Delhi rules that once a trust secures registration under Section 12A, the CIT(E) cannot later question its charitable status based on fee-charging activities. The decision reinforces the principle of consistency in tax exemptions and curtails arbitrary reassessment of charitable purposes, impacting trusts and NGOs relying on Section 12A benefits.

ITAT Mumbai condones a 796-day delay in filing a tax appeal, holding that Covid-related disruptions and non-receipt of the assessment order under Section 144 constitute 'sufficient cause' under Section 249(3). The ruling reinforces that substantial justice prevails over procedural technicalities, particularly where assessees face genuine hardships in compliance.

ITAT Ahmedabad holds that co-operative societies remain eligible for Section 80P deduction even if they fail to file income tax returns, remanding the case for fresh assessment. The ruling underscores that procedural non-compliance cannot override substantive tax exemption entitlements for co-operative societies under the Income Tax Act.

CESTAT Ahmedabad rules that manufacturers must include freight and insurance charges collected for door delivery in the assessable value under the Central Excise Act, 1944. This overturns claims of exclusion and impacts excise duty calculations for businesses offering door delivery services.

ITAT Mumbai rules that the 10% tolerance band under Section 56(2)(x)(b) of the Income Tax Act applies retrospectively, deleting additions where the fair market value excess is below the threshold. This holding clarifies the retrospective applicability of the tolerance band, impacting tax assessments involving stamp duty valuations.

The ITAT Delhi has ruled that any reassessment notice issued under Section 148 after three years from the end of the assessment year is void unless prior approval is obtained from the Principal Chief Commissioner of Income Tax, as mandated by Section 151(ii). This reinforces strict procedural compliance, protecting taxpayers from arbitrary reopening of closed assessments and setting a binding precedent for all assessing officers handling delayed reassessments.

Non-residents earning no income in India cannot be held liable for advance tax obligations, and the ITAT Mumbai has ruled that dismissing appeals under Section 249(4) without examining the merits is procedurally illegal. This decision protects NRIs from arbitrary tax enforcement and reinforces due process in income tax appeals, setting a critical precedent for foreign taxpayers with minimal India ties.

CESTAT Chennai ruled that service tax liability for real estate agent services must be calculated on the gross amount inclusive of tax under Section 67(2) of the Finance Act. The tribunal remanded the case for fresh adjudication, allowing the appellant to submit additional evidence, clarifying the computation methodology for tax professionals and real estate service providers.

ITAT Nagpur rules that a reassessment notice under Section 148 of the Income Tax Act must bear a manual or digital signature to be valid. The absence of such signature renders the notice void ab initio, stripping the Assessing Officer of jurisdiction to proceed, and this defect cannot be cured under Sections 292B or 292BB. The ruling reinforces strict compliance with statutory mandates under Section 282A, impacting all pending and future reassessment proceedings.

CESTAT Kolkata rules that Cenvat credit cannot be denied to a recipient acting in good faith, even if input service providers are non-existent or tax-evading. The ruling protects businesses from penalization due to supplier fraud, reinforcing the principle of good faith in tax compliance.

ITAT Ahmedabad condones delays of over 1,000 days in tax appeals due to medical emergencies, holding that 'sufficient cause' under Section 249(3) of the IT Act includes severe health crises. The ruling reinforces that substantial justice prevails over procedural defaults, offering relief to taxpayers facing similar hardships.