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*Deduction under section 80-IA - Allowability of - Delay in filing of Form 10CCB -*

Assessee claimed deduction under section 80-IA. AO disallowed assessee's claim on account of delay in filing of Form 10CCB. Before CIT(A), assessee pleaded that delay in filing of Form 10CCB was due to technical glitches which prevailed in the income-tax portal in the night of 31-10-2022 at the time of filing of Form 10CCB. CIT(A) allowed the deduction under section 80-IA by condoning the delay in filing of Form 10CCB. Revenue challenged this.
*Held:* Assessee substantiated that Form 10CCB was attempted to be filed within the stipulated time, however, due to the reasons beyond control of the assessee i.e., technical glitches on the web portal of the department, Form could not be filed in time but was uploaded with a slight delay of 1 hour 22 minute. As delay had not occurred due to any negligence or inaction on the part of assessee, therefore, in the interest of justice assessee could not be saddled with any penal action and, therefore, deduction was rightly allowed by CIT(A).

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GST Notification for 2020-21...Notice regarding Reversal of Input Tax Credit even though taken genuinely.

Namaskar!

Ever received a Notice for the reversal of Input Tax Credit even when you had availed it after paying the amount to the Seller?

Heard of such scenarios and wondering what to do in such cases?

Read the article to know why this is an unfair practice, and you can protect yourself by citing the appropriate rules and documents.

We are sharing a Court Ruling and a Press Release by CBIC that clearly explains the processes.

Understanding the Court Case

The case we discuss is 2021-VIL-308-MAD, IN THE HIGH COURT OF JUDICATURE AT MADRAS.

In this particular case, the buyer had paid the due amount of Tax to the Seller, but the Seller did not deposit the same amount to the Govt.

The buyer availed Input Tax Credit on the said amount, thinking that the Seller has paid the amount, but that was not the case. The Department then made efforts to recover the ITC amount directly from the buyer.

The Court ruled against the order asking for the Tax recovery from the buyer stating the Department's approach was wrong and that the Department should have initiated action against the Seller.

The Press Release by the CBIC

In a Press Release dated 4th of May, 2018, CBIC clearly talked about No automatic reversal of credit.

The fourth point of the Press Release stated that there shall not be any automatic reversal of input tax credit from buyer on non-payment of Tax by the Seller.

The recovery shall be made from the Seller. However, the authorities do have the power to demand the Tax from the buyer but only in exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.

The first approach should always be to demand and collect the Tax from the Seller of goods/services.

But I still face such issues; what to do?

It has been seen in numerous cases that the Department issues a notice directly to the buyer without trying to collect the Tax from the Seller.

If you also face such a situation, you can counter question the Officer about the proper procedure and request the Department to issue the notice to the Seller instead.

But make sure that you do this politely and professionally, as the biggest reasons for litigation and Tax problems are actually the wrong ways of communicating and presenting yourself in front of the Officer.

With the proper citing of the appropriate Court Rulings and Press Releases like the ones we discussed, the complete process of getting the notice reversed becomes way easier!



If you are stuck in a similar situation or some other confusion related to GST, feel free to contact GST DOST. We will help solve your problem along with giving you comprehensive GST solutions that will protect you from almost all probable GST problems!!!

Filling of Income Tax Return for FY 2019-20 (AY 2020-21) has been extended till 31 May 2021.