Jagadish T G & Associates

  HC rejects appeal over reversal of input tax credit on fraudulent supplies The Allahabad High Court has dismissed a petition filed by a firm against penalty, interest imposed on it, and reversal of input tax credit (ITC) on inward supplies of goods by non-existent firms. The court upheld the order passed by the Additional Commissioner in this regard. The court observed, "fraud vitiates even the most solemn proceedings and the mere fact that the ITC benefit had earlier been granted to the assessee merely because the firms were then registered, would not create any estoppel against the authority taking appropriate action for claiming refund of the benefit wrongly availed". The assessee is engaged in the manufacturing and sale of aluminium casting and machinery parts and, during a survey of the place of business, it was found that it claimed to have received inward supplies from three firms and claimed ITC on such inward supplies. After availing of ITC by the assessee, an enqu...

  GST evasion in construction, works contracts exceeds ₹10,000 crore in FY24 As the Narendra Modi government plugs Goods and Services Tax (GST) leakage across the country, over ₹10,000 crore of evasion has been claimed on account of works contracts and construction services in the last fiscal, sources have told CNBC-TV18. The Directorate General of GST Intelligence, which is the central agency that keeps a close watch on evasion, claims that out of the alleged evasion, over ₹ 8,900 crore of dues are yet to be cleared by the taxpayers. Sources said, "Maximum amount of GST which has been evaded under services category in last fiscal (FY24) was from construction services and works contract via availment of fake Input Tax Credit (ITC), wrong availment of exemption notification / ITC, undervaluation, non-payment of taxes, as prime reasons of evasion by the taxpayers." The DGGI has registered 1,813 cases of evasion, with alleged evasion of ₹10,600 crore (approximately) and on cross...

  Tea-seller Faces Rs 49 Crore Tax Penalty Due to Fraud by Longtime Customers A tea-seller from Patan, Khemraj Dave, received a notice from the Income Tax (I-T) department, demanding a penalty of Rs 49 crore for unscrupulous transactions totaling Rs 34 crore in his account. Dave discovered that two brothers, Alpesh and Vipul Patel, whom he had been serving tea for nearly a decade, had fraudulently used his credentials for these illegal transactions. According to an FIR filed with the Patan B Division police, Dave, a native of Kankrej in Banaskantha, has operated his tea stall at the Patan commodity market since 2014. He mentioned that he had been serving tea at the office of Alpesh and Vipul Patel, who ran a brokerage business in the same market since 2014. In 2014, Dave asked Alpesh for help obtaining a PAN card to link to his bank account, providing his Aadhaar card, PAN card, and eight photographs. Alpesh later visited Dave’s tea stall and had him sign various documents. A few d...

  ED Mumbai arrests businessman in income tax refund fraud of ₹263 crore The Enforcement Directorate (ED), Mumbai Zonal Office arrested Rajesh Brijlal Batreja on May 16, 2024, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the ED officials said in a statement late May 19 evening.  Mr. Batreja is arrested in a case of Income Tax Refund fraud of ₹263 crore.  “Mr. Batreja was instrumental in diverting part of Proceeds of Crime (PoC) of ₹55.50 crore to outside India and round-tripping part of said PoC in two entities in India under the guise of investment from Dubai,” the ED officials said. Earlier, three accused persons were arrested in this case including Tanaji Mandal Adhikari, Bhushan Patil and Rajesh Shetty who are presently in judicial custody.  “The ED initiated an investigation based on FIR registered by CBI under various sections of IPC, 1860 and Prevention of Corruption Act, 1986 against Mr. Adhikari and others ...

  GST Portal Update: Track Application Status Now Shows Physical Verification Markings GST PORTAL UPDATE:  The 'Track Application Status' tab on the GST Portal now reflects whether a New Registration Application has been marked for Physical Verification. This update, which was announced in the  GSTN’s Advisory dated February 28, 2024 ,  has now been made operational. Source #GST Portal

  Tax revenue influx relieves cash-strapped Kerala government The influx of tax revenue has offered a temporary relief for the cash-strapped state government, as revenue collection deposits have enabled the state treasury to emerge from overdraft status. Prior to this development, the treasury had been operating under overdraft conditions for almost a week. Despite moving out of overdraft, the treasury is still facing a deficit. As a result, certain restrictions remain in place to limit the outflow of funds. Notably, cheques and bills above Rs 5 lakh require ways and means clearance or prior sanction from the finance department. The crisis is expected to alleviate only upon receiving the central government’s approval for open market borrowings. Typically, the Centre grants borrowing sanction for the first nine months of a financial year in May. Previously, the state had requested ad hoc sanction for borrowings amounting to Rs 5,000 crore. But the state was only sanctioned Rs 3,000 ...