The Jharkhand High Court ruled that the Assessing Officer is duty bound to record his reasons before Initiating any Proceeding. Facts The petitioner is engaged in the business of mining & trading of iron ore, and Iron ore extracted from mines is known as “Run of Mines (ROM)” which requires further processing and screening. Petitioner’s …
The Bombay High Court ruled that there is a need to reassess the categorization of goods based on the entries recorded in the RG-1 registration. Facts The Appellants are engaged in the processing of cotton fabrics and man made fabrics falling under Chapter 52, 54, 55, 58 & 60 respectively of Central Excise Tariff Act, …
The Income Tax Appellate Tribunal Hyderabad ruled that once the existence of Goodwill is established, Depreciation on such goodwill cannot be questioned further. Facts The assessee is a company engaged in the business of provision of software development services and distribution of parent company software products. Subsequently, the case was selected for scrutiny through CASS …
The Income Tax Appellate Tribunal Kolkata ruled that the initiation of a reassessment in the name of a non-existent amalgamated company is bereft of jurisdiction. Facts Assessee i.e. GPT Venture Pvt. Ltd. was amalgamated into GPT Son Pvt. Ltd. vide order passed by High Court of Calcutta and Co. Application. GVPL lost its separate existence …
The Delhi High Court ruled that no assessee has any fundamental or vested legal right to be assessed by a Faceless Assessing Officer by virtue of amendment of Sections 143(3A) and 143(3B) of the Act Facts Writ petitions have been preferred by five Charitable trusts viz. Sanjay Gandhi Memorial Trust, Jawahar Bhawan Trust, Rajiv Gandhi …
The Customs, Excise & Service Tax Appellate Tribunal New Delhi, took judicial notice that the demand under service tax on reverse charge mechanism, has to be worked out and calculated transaction wise-wise and invoice-wise. Facts The appellant is having service tax registration and is engaged in providing taxable services under the category of “Renting of …
The Andhra Pradesh High Court Granted Bail to CA by stating that continued incarceration of petitioner was not justified. Facts A case in crime has been registered for the offences punishable under Sections 166, 167, 418, 420, 465, 468, 471, 409, 201, 109 read with 120B of the Indian Penal Code, 1860 and 13 (2) …
HC Grants Bail to CA By Stating that Continued Incarceration of Petitioner Not Justified Read More »
The Karnataka High Court ruled that the LIC is held liable to pay the service tax. Facts The petitioner is the owner of a building in Mandya having a carpet area of 30700 sq. ft. which he has leased to the Life Insurance Corporation of India in this Writ Petition, under a registered lease deed. …
LIC is held liable to pay the service tax: Karnataka High Court Read More »
The Madras High Court ruled that Input Tax Credit under TNVAT Act is not Attracted to Manufacturing/Invisible Loss. Facts A representation was made by the Textile Exporters Association to the Joint Commissioner Taxes Enforcement as well as Joint Commissioner of Commercial Taxes, Coimbatore, in view of the fact that there was a slew of proceedings …
ITC under TNVAT Act Not Attracted to Manufacturing/Invisible Loss: Madras High Court Read More »
The Customs, Excise And Service Tax Appellate Tribunal, Kolkata ruled that demanding duty only on the short payment, ignoring the excess payment is bad in law. Facts M/s. Hindalco Industries Ltd., Hirakud Complex is engaged in the activity of manufacturing and clearance of aluminium ingots and aluminium coils falling under chapter 76 & 38, respectively …
The Patna High Court ruled that the amendment to Section 45(5A) made by the Finance Act of 2017 does not apply retroactively. Facts The batch of writ petitions challenged notices issued under Section 148 of the Income Tax Act, 1961 and some of them also challenged the order issued under Section 144 read with Section …
The Income Tax Appellate Tribunal New Delhi ruled that no benefit under Section 54F can be denied for a property’s simple lack of construction. Facts The assessee is a resident of Kuwait & a doctor by profession. The Assessee in the year under consideration, sold a Plot of Land and earned LTCG , which was …
The Income Tax Appellate Tribunal Indore ruled that there is Exemption from Penalty u/s 271C for Non-Deduction of TDS with Reasonable Cause. Facts The assessee is a telecom service provider engaged in providing services in Madhya Pradesh and Chhattisgarh. During the course of its business the assessee appoints the distributors for issuing and sale of …
The Income Tax Appellate Tribunal, Delhi ruled that NAV method adopted by the assessee is one of the recognized methods provided in rule 11UA of the Rules. Facts The appeal arises out of the order by the Commissioner of Income Tax (Appeals), New Delhi in appeal against the order of assessment passed u/s.143(3) of the …
The Patna High Court held that tax as it was levied on entertainments under the Bihar Entertainment Tax Act, 1948 cannot survive after the 101st Amendment since it is not levied and collected by a local self-government institution. Facts The petitioner is a Multi System Operator who is mulcted with the liability to pay Entertainment …
The Chhattisgarh High Court held that waiver of mandatory pre-deposit under section 35-F of the Central Excise Act 1944 not accepted. Facts Petitioner is a statutory body created through Notification issued by the State Govt. under Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973. It was created as a Special Development Authority with an objective to …
The Supreme Court ruled that Airport User Development Fee not payable on Service Tax. Facts In all these appeals, orders of the Customs, Excise and Service Tax Appellate Tribunal are impugned by the service tax authorities, who argue that user development fee levied and collected by the airport operation, maintenance and development entities is subjected …
Airport User Development Fee not payable on Service Tax: Supreme Court Read More »
BACKGROUND As per section 90 of the Income-tax Act, 1961 (IT Act), taxation of income of a non-resident taxpayer is governed either under the provisions of the IT Act or the Double Taxation Avoidance Agreement (DTAA), whichever is more beneficial. Where a non-resident taxpayer earns business income, the same shall be taxable in India only …
The Gujarat High Court observed that sufficiency or adequacy of reasons for issuance of notice for reopening of assessment is not required to be gone into at this stage of reopening. Facts The assessee received income from business and profession and interest income for the year 2012-13. The assessee also received proceeds from sale from …
The Authority for Advance Ruling in Karnataka ruled that Gold jewellery are a distinct category of article having distinct characteristics and is not same as gold lumps Facts M/s. White Gold Bullion Private Limited, having GSTIN have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of …
The Customs, Excise & Service Tax Appellate Tribunal Mumbai reiterated that bagasse being an agricultural waste or residue, there could be no manufacturing activity. Facts The appellants are engaged in manufacture and clearance of sugar and molasses and are paying duty on all these final products. They were availing Cenvat credit of excise duty paid …
The Customs, Excise & Service Tax Appellate Tribunal New Delhi Duty ruled that the liability can be shifted to the supplier of raw materials or semi-finished goods only if the supplier gives an undertaking in terms of notification. Facts The respondent M/s Sonex Marbles Pvt. Ltd. was engaged in sawing marble blocks on job work …
The Customs, Excise & Service Tax Appellate Tribunal New Delhi ruled that if issue on merit decided in favour of Assessee Extended period of limitation cannot be invoked. Facts The appellant –assessee is engaged in the manufacture of glaze tiles and is registered with the Central Excise Department under Central Excise Registration. It appears to …
The Madras High Court directed the department to issue Section 148 notice to the legal representative of Deceased Assessee. Facts The petitioner has challenged the notice issued under Section 148 of the Income Tax Act, on the ground that notice has been issued in the name of his father, who died on 17.10.2014. Submissions Counsel …
The Supreme Court ruled that the transaction between the manufacturer and dealer while acting pursuant to a warranty in the circumstances explained has to be construed as sale within the meaning and definition of sale under the Sales Tax Acts under consideration. Facts The assessee, M/s Marudhar Motors is a dealer of TATA Vehicles. Under …
The Karnataka High Court ruled that a game of skill whether played with stakes or without stakes is not Gambling. Facts M/s.Gameskraft Technologies Pvt. Ltd., claims to be an Online Intermediary Company incorporated in June 2017, who runs technology platforms that allow users to play skill based online games against each other. During the period …
The Income Tax Appellate Tribunal Hyderabad observed that merely because seeds were sold commercially, the basic agricultural operations also cannot be dubbed as ‘commercial activities’, and not ‘agricultural activities’. Facts Assessee is engaged in the business of production of hybrid seeds and open pollinated seed varieties of various crops like cotton, paddy, maize, sunflower, bajra, …
The Madras High Court observed that GST Act can be applied demanding interest only in cases of belated cash payment towards GST. Facts As per the demand, the petitioner has been directed to pay interest within one week under intimation to the office of the respondent through FORM GST DRC -03. The petitioner claimed that …
The Bombay High Court ruled that the Single Member Tribunal cannot hear an appointment by deputation; only the Division Bench may. Facts It is the case of the Respondent that the Petitioner does not belong to the Municipal Administrative Service and his parent department is the Sales Tax Department. He was appointed as Deputy Commissioner, …
The Delhi High Court ruled that Repeated use of templated paragraphs, as though the principles of Natural Justice are mere rhetoric, is not permissible. Facts The writ petition has been filed challenging the order passed by the Respondent Adjudicating Authority, under the Prevention of Money Laundering Act, 2002 (PMLA) by which the Petitioner’s application for …