Tax
Rajasthan HC Quashes Prosecution Sanction Against E-Commerce Company For Delay In Depositing TDS Due To Late Submission Of Bills By Amazon, E-Bay
Rajasthan High Court set aside prosecution under Income Tax Act, 1961 (“the Act”), against the petitioner-company whose business activity related to e-commerce transactions, and owing to delay on part of the companies like Amazon, Naaptol, Ebay, etc. in submitting the bills, the petitioner got delayed by almost 10 months in submitting the deducted TDS.The division bench of Justice...
Following Delhi HC Nudge, Customs Takes Measures To Prevent Harassment Of Genuine Air Travellers Carrying Gold Jewellery
Following successive judgments of the Delhi High Court criticising the Customs for detaining personal jewellery of air travellers and failure to comply with mandatory statutory procedure for detention, the Department has undertaken various steps to prevent harassment of genuine travellers.As per an affidavit filed by the Centre, the Department has taken following steps:1. A person whose goods...
Tax Monthly Digest: March 2025
SUPREME COURTSupreme Court Upholds Allahabad HC Decision That Chargers Sold With Cell Phones Cannot Be Taxed Separately Under UP VAT Act 2008Case title: COMMISSIONER, COMMERCIAL TAXCase no.: U. P. LUCKNOW vs. M/S SAMSUNG (INDIA) ELECTRONICS PVT. LTD.| Diary No. - 20066/2021The Supreme Court recently upheld the decision of the Allahabad High Court which observed that the charger sold with a...
Sections 43B & 40A Income Tax Act | Which Provision Prevails When Both Commence With Non-Obstante Clause? Madras High Court Clarifies
The Madras High Court while referring sections 43B and 40A Income Tax Act explained which provision prevails when both commence with a non-obstante clause. The Division Bench of Justices Dr. Anita Sumanth and G. Arul Murugan stated that “the Rule that a general provision should yield to specific provision springs from the common understanding that when two directions are given...
Inflating Contract Figures & Complaining That Tax Authorities Based Decision On Such Figures Amounts To Defrauding State In Two Ways: Karnataka HC
The Karnataka High Court stated that inflating contract figures and complaining that tax authorities have premised their decision on such figures, amounts to defrauding state. “Claiming higher contract amount by inflated figures and thereafter complaining that the Tax authorities have premised their decision on such figures, virtually amounts to defrauding the State, in two-ways....
Delhi High Court Grants Relief To Lufthansa Airlines, Sets Aside Revenue's Order Denying 'Nil' TDS Certificate
In a relief to German cargo airline Lufthansa, the Delhi High Court set aside the Revenue's order denying nil TDS certificate to the company for the financial year 2024-25.Section 195 of the Income Tax Act, 1961 deals with the deduction of TDS (Tax Deducted at Source) on payments made to non-resident Indians (NRIs). However, 'nil' withholding tax certificates can be issued under Section...
Tax Weekly Round-Up: March 24 - March 30, 2025
SUPREME COURT'Timelines To Rectify Bonafide GST Form Errors Must Be Realistic' : Supreme Court Asks CBIC To Re-examine ProvisionsCase title : CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS v. M/S ABERDARE TECHNOLOGIES PRIVATE LIMITED & ORS.Case no.: SPECIAL LEAVE PETITION (CIVIL) Diary No. 6332/2025The Supreme Court recently underscored the need for the Central Board of Indirect Taxes...
Relationship Between Searched And Non-Searched Entity Not Mandatory For Invocation Of Proceedings U/S 153C Income Tax Act: Delhi High Court
The Delhi High Court has held that the statutory scheme of Sections 153A and 153C of the Income Tax Act, 1961 does not envisage the discovery of a connection or interrelationship between the searched and the non-searched entity.Section 153A deals with the procedure for assessment which may be set in motion in respect of an entity searched under Section 132 of the Act. Upon such a search...
“Completely Unacceptable”: Delhi High Court Pulls Up Customs For Prolonged Detention Of Export Goods Despite Dept's Circular
The Delhi High Court has criticised the Customs Department for acting against its own Circular for expeditious clearance of goods, by detaining the export goods of a trader for over two months.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “This position is completely unacceptable to the Court…consignment cannot be held up in this manner…expedited...
Delhi High Court Slams CBIC For Cryptic Order Denying Duty Drawbacks To Vedanta Despite Its Own Instructions Allowing Retrospective Benefit
The Delhi High Court has asked the Central Board of Indirect Taxes and Customs to pass a “reasoned order” on Indian multinational mining company- Vedanata's plea claiming duty drawbacks on clean energy cess, paid between the year 2010-17.The plea was rejected by CBIC through a “cryptic order” citing limitation despite its own Instruction clearing air on eligibility of drawbacks on...
Student Almanac And Teacher Planner Not Exigible To Excise Duty: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Student Almanac and teacher planner not exigible to excise duty. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the submission of the assessee that since Student Almanac is used only by students of a particular school, it becomes...
Non-Payment Of Service Tax By Sub-Contractor Due To Uncertainity Not Wilful Misstatement Or Fraud: Delhi HC Upholds CESTAT Order
The Delhi High Court has upheld an order of the Customs Excise and Service Tax Appellate Tribunal interdicting the GST Department from invoking extended period of limitation for recovery action against a sub-contractor who did not pay service tax amid confusion as to his liability to pay the same.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta upheld the CESTAT order...