Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
From the Courts »
 Shri Sanjeev Gupta, City Hospital and Maternity Home, Nursing Home Site 2, Opp. Sagar Cinema, Sector 16, Faridabad, Vs. Income Tax Officer, Ward 2(3), Faridabad.
 Orange Business Services India Solutions Pvt. Ltd, (earlier known as Equant Solutions India Pvt. Ltd) Vs. DCIT, Circle-3, Gurgaon
 Ved Parkash Bharti, S/o. Shri Parmanand, H. No. 1049-50, Sector-13-17, HUDA, Panipat Vs. ACIT, Central Circle, Karnal
 Itochu Corporation, 5-1, Kita-Aoyama, 2 Chome, Minato-Ku Vs. ACIT (International Taxation), Circle 2(1)(1) New Delhi.
 No Tax applicable on Securities Premium even if used to set off losses: ITAT deletes addition against Hindustan Coca Cola
 Bertelsmann Marketing Services India Pvt. Ltd, 215, Second Floor, Suneja Tower-II, District Centre, Janakpuri, New Delhi Vs. DCIT, Circle-4(2), New Delhi
 DIT vs. Autodesk Asia Pvt Ltd (Karnataka High Court)
 Japan International Co-operation Agency (JICA) New Delhi vs ACIT (Intl. Taxation), Circle 2(1)(2) Room NO. 310 3rd Floor, Block 2, Pratyaksh Kar Bhawan, Civic Centre, New Delhi,
 Gunjan Garg, C/o. Raj Kumar & Associates CA, L-7A(LGF) South Exten. Part-II, New Delhi Vs. Pr. CIT-16, Room No. 101, Drum Shape Building, New Delhi
 SMT. SHANTI DEVI MERWAH, A-26, FIRST FLOOR, KIRTI NAGAR, NEW DELHI Vs. ACIT, CENTRAL CIRCLE-7, NEW DELHI
 Tax department cannot block import export code (IEC): Bombay High Court
 Shri Rohtash Singh, L 32/5, DLF Phase II, Gurgaon vs. DCIT, Circle 2, Gurgaon
 Shri Rohtash Singh, L 32/5, DLF Phase-II, Gurgaon vs. DCIT, Circle 2, Gurgaon
 Shri Satish Kumar, B 6/17, Main Wali Nagar, New Delhi vs ACIT, Circle 42(1), New Delhi.
 BMR Polymers (P) Ltd. Flat No. 42, Bank Apartments, Plot No. 22, Sector-4, Dwarka, New Delhi vs. ITO Ward-1(3) Gurgaon, Haryana

Tax department cannot block import export code (IEC): Bombay High Court
November, 10th 2020

The Goods and Services Tax Department (GST) blocking the import export code (IEC)—a 10 digit identification number similar to a license for exporting— is illegal and invalid a Bombay High Court ruled.

The court was hearing a matter where the indirect tax department after investigations found that an exporter was using fake input tax credit to set off GST liabilities. Input tax credits are essentially part of the tax paid by a company that can be used to set off future tax liability.

Tax department alleged that the exporter was intending to get ineligible return and trying to “defraud” the government. Following this, the tax department attached the bank account and blocked IEC code.


The exporter had then approached the court in the matter. The court ruled that suspension and cancellation of IEC can only be done under FTDR Act (Foreign Trade (Development and Regulation) by the DGFT or an officer of DGFT a report by Asire Consulting said.

The tax department meanwhile has found several discrepancies in input tax credit. The tax department is keen to stop the fake input tax credit usage as it directly impacts revenue of the government.

ET had on November 4 reported that the tax department has started blocking input tax credit of many companies suspecting that they were fraudulently availing it either by creating a fake trail of shell companies or through fake invoices.

The tax department has triggered a particular section— section 86A — to block the credit for a year under the Goods and Services Tax (GST) framework. Input tax credits are essentially part of the tax paid by a company that can be used to set off future tax liability.

People in the know say that the tax department’s investigations revealed that several companies were manipulating the input tax credit mechanism.


Blocking of the tax credits comes after the revenue department started arresting promoters for allegedly claiming tax credits through fake invoices and escaping GST. The dispute over the taxman’s power to arrest promoters of companies and attach their bank accounts over suspected evasion of goods and services tax was challenged in courts.

Experts however opine that there are in fact several instances where individuals and companies are using the GST system to manipulate and benefit. Like in a recent case, a 25-year-old student of chartered accountancy (CA) was arrested by the tax officials for committing a fraud to the tune of Rs 50.24 crore through input tax credit manipulation, TOI reported on October 22.

 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting