Temporary Suspension Of Business Activity On Account Of Ill Health Does Not Warrant Cancellation Of Taxpayer's GST Registration: Delhi HC

Finding that proper officer passed the order cancelling taxpayer's GST registration with retrospective effect, the Delhi High Court clarified that such order does not indicate any reason for cancelling the GST registration much less from retrospective effect.The High Court found that the only allegation against the assessee was that it was non-existent, which was sufficiently addressed by...

GST Order Cannot Be Challenged Citing No Personal Hearing If Hearing Not Requested After Receipt Of SCN: MP High Court Dismisses Plea

The Madhya Pradesh High Court at its Indore bench, dismissed a writ petition which was filed by Future Consumer Limited, challenging an order passed by the Deputy Commissioner of State Tax under Section 73 of GST Act. The petitioner stated that they were denied the right to personal hearing under Section 75(4) of the Act. The division bench comprising of Justice Vivek Rusia and Justice...

Transfer Pricing | Entities Operating On Economic Upscale Can't Be Included As 'Comparables' Of Those Working On Cost-Plus Pricing: Delhi HC

The Delhi High Court has reiterated that entities commanding high profit margins cannot be included as comparables of those working on cost-plus markup basis, to determine Arm's Length Price for international transactions. A division bench of Justices Yashwant Varma and Ravinder Dudeja thus ordered the exclusion of TCS E-Serve International Ltd., TCS E-Serve and Infosys BPO Limited...

Usage Of Chemicals As Raw Materials Doesn't Detract From Categorisation As Chemicals; Must Be Taxed At 8%: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that the use of chemicals as raw materials would not change their categorisation as chemicals. Therefore, they must be taxed at 8% only. The Division Bench of Justices R. Raghunandan Rao and Harinath N. was addressing a tax dispute in which the assessee challenged the Revisional Authority's imposition of a higher tax rate of 12% on goods, instead...

“Judge Cannot Usurp Role Of Disciplinary Authority”: Andhra Pradesh High Court Quashes Order Halting Disciplinary Proceedings Midway

The Andhra Pradesh High Court has set aside the order of the Single Judge, which had allowed the assessee's petition and quashed the disciplinary proceedings midway, specifically at the stage when the enquiry had already been completed. The Division Bench of Justices G. Narendar and Kiranmayee Mandava observed that “………the Judge could not have usurped the role of...

Andhra Pradesh HC Grants Assessee Opportunity To Seek Revocation Of Registration Cancellation Missed Due To Ongoing Insolvency Proceedings

The Andhra Pradesh High Court has allowed the assessee to file an application for the revocation of the cancellation of their registration, which they missed due to ongoing insolvency proceedings. The Division Bench of Justices R Raghunandan Rao and Harinath N observed that because the assessee had to go through the insolvency proceedings under the IBC, 2016, they should be given...

Residence Country Can't Deny Credit On Taxes Levied By Source Country: Mumbai ITAT Grants Treaty Benefit To Amarchand Mangaldas

The Mumbai ITAT ruled that tax credit cannot be denied in cases where the interpretation of the residence country about the applicability of a treaty provision is not the same as that of source jurisdiction about the provision and yet the source country had levied taxes directly or by way of tax withholding. The Bench of Beena Pillai (Judicial Member) and Ratnesh Nandan...

DVAT Act | Assessee 'Automatically' Becomes Entitled To Interest U/S 42 On State's Failure To Adhere To Mandatory Timelines For Refund: Delhi HC

The Delhi High Court has made it clear that when a refund of tax or penalty paid in excess under the Delhi Value Added Tax Act, 2004 is delayed by the authorities, the assessee “automatically” becomes entitled to interest on such refund.Section 38(1) “obligates” the Commissioner to refund the amount of tax, penalty or interest, if paid by a person in excess of the amount due...

Mentioning Proposed Penalty In Declaration Under SVLDR Scheme Not Incorrect: Gujarat HC

The Gujarat High Court has held that Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) is applicable to any show cause notice for penalty/late fee, irrespective of whether it is under adjudication or appeal. A division bench of Justices Bhargav D. Karia and Mauna M. Bhatt cited FAQs of the scheme as per which, any person who has a show cause notice (SCN) for demand...

Notice U/S 271(1)(c) Of IT Act Must Specify Whether Penalty Is Against 'Concealment' Of Income Or Furnishing 'Incorrect' Income: J&K High Court

The Jammu and Kashmir and Ladakh High Court has made it clear that notice to an assessee proposing imposition of penalty under Section 271(1)(c) of the Income Tax Act, 1961 has to clearly specify whether assessee is accused of 'concealing' his income or furnishing 'incorrect' income particulars. Section 271(1)(c) stipulates that penalty proceedings can be initiated provided...

Non-Disposal Of Application For Registration U/S 12AA Of IT Act Within 6 Months Doesn't Result In "Deemed Registration”: Bombay High Court

Referring to decision of CIT vs. Harshit Foundation Sehmalpur, the Bombay High Court reiterated that Sec 12AA(2) does not make any provision, to the effect that non-deciding of the registration application u/s 12AA(2) within a period of six months, brought about a deemed registration. The Division Bench of Justice G. S. Kulkarni and Justice Firdosh P. Pooniwalla clarified...

P&H HC Nixes Asst Commissioner's Order For Ignoring Direction To Hear Case On Merits, Calls For Strict Action Against Insubordination In CGST Hierarchy

The Punjab and Haryana High Court overturned an Assistant Commissioner's order for dismissing an application as time-barred, noting he overstepped his authority despite the Joint Commissioner's directive to consider it on merits. The Bench of Justice Sanjeev Prakash Sharma observed that “Assistant Commissioner, a subordinate officer has refused to examine the case on merits and...