Tax
Subsequent Purchaser Of Imported Vehicle Cannot Be Asked To Pay Customs Duty; Liability On Importer : Supreme Court
The Supreme Court ruled that the 'subsequent purchaser' of an imported motor car cannot be called an 'importer' to attract the liability under the Customs Act, 1962 to pay customs duty on the import of the vehicle. The bench comprising Justice BV Nagarathna and Justice N Kotiswar Singh heard the appeal preferred by the subsequent purchaser of a Porsche Car against the High Court's...
Foreign National Wearing Personal Jewellery To India Not Subject To Import Duty: Delhi High Court
The Delhi High Court has held that the jewellery worn to India by a foreign national is not subject to customs duty.A division bench of Justices Yashwant Varma and Ravinder Dudeja thus declared as illegal the action of the Customs Department, confiscating a Thai national's gold chain and kara. It observed,“In the present case also, petitioner is a foreign national, who brought a chain and...
Orissa High Court Quashes Order After Assessee Fails To Prosecute Appeal Due To Ongoing Medical Treatment
The Orissa High Court, considered that the assessee was unwell and undergoing medical treatment at the time the notices regarding his appeal were served and accordingly quashed the order demanding liability for unpaid tax. The Bench consisting of Justices Arindam Sinha and M.S. Sahoo was considering a case in which the assessee/petitioner failed to reply to the notice regarding...
Department Failed To Prove Non-Existence Of Firms: Rajasthan High Court Grants Bail To Assessee Charged For Issuing Fake Invoices
The Rajasthan High Court granted bail to the assessee charged for issuing fake invoices to the firms on the ground that the department failed to prove that these firms are not in existence and their GST registration have been cancelled. The Bench of Justice Ganesh Ram Meena observed that “……there is nothing on record that who claimed how much input tax credit on the...
Provisions Of Foreign Trade Policy Cannot By Itself Authorise Levy Of Interest U/S 28AA Of Foreign Trade Act: Kerala High Court
The Kerala High Court stated that the provisions of the Foreign Trade Policy cannot by itself authorise the levy of interest under Section 28AA of the Foreign Trade (Development and Regulation) Act, 1992, as such levy must be supported by plenary legislation. The Bench of Justice Gopinath P. was considering a case where the assessee challenged the interest imposed upon him under...
2% Additional Tax For Acquiring 'Second Vehicle' Can't Be Levied When First Vehicle Has Already Been Sold: Telangana High Court
The Telangana High Court recently set aside Moosarambagh RTO's direction imposing 2% additional tax on a resident's purchase of a Mahindra XUV 700 car by labelling it to be his 'second vehicle'. As per the Telangana Motor Vehicles Taxation Act, 1963, vehicles that cost over Rs 20 lakh will be charged 18%. A second vehicle purchased in the name of the owner will be charged an additional...
Loss In Derivatives Is Not A Speculative Transaction And Can Be Set Off Against Business Income Of Assessee: Kerala High Court
The Kerala High Court stated that loss in derivatives is not a speculative transaction and can be set off against business income of the assessee. Further, this is not a case where Section 73 of Income Tax Act is attracted since it deals with losses in speculation business. The Bench of Justice A.K. Jayasankaran Nambiar observed that “……..a loss in the derivative...
"Personal Jewellery" Of Person Coming To India Not Subjected To Customs Duty: Delhi High Court
The Delhi High Court recently granted relief to a woman whose over 200 gm gold jewellery was confiscated by the Customs on her return from Dubai. In doing so, a division bench of Justices Yashwant Varma and Ravinder Dudeja held that “personal jewellery” which is not found to have been acquired on an overseas trip and was always a “used personal effect” of the passenger would...
Appellate Authority Has To Consider Grounds Raised In Appeal And Decide On Merits, Even If Appeal Is Heard Ex Parte: Patna High Court
The Patna High Court stated that the Appellate Authority has a duty and an obligation to examine grounds raised by assessee in memorandum of appeal and decide issue on merits even if appeal is filed ex parte. The Bench consisting of Chief Justice K. Vinod Chandran and Justice Partha Sarthy, stated that “the Appellate Authority even while considering the appeal ex parte will have...
S.153C Of IT Act Restricts Assessment Beyond Documents Considered By AO To Derive Satisfaction Note For Initiating Proceedings On 'Other Person': Delhi HC
The Delhi High Court has answered in the affirmative the question whether Section 153C of the Income Tax Act, 1961 restricts an assessing officer from enquiring beyond the documents considered for deriving satisfaction note for initiating assessment/ re-assessment of the 'other person'. Section 153C contains a special provision relating to assessment of 'other person', pursuant...
Loss Of FD Investments Doesn't Qualify As 'Trading Loss' For Deduction From Income U/S 28 Of Income Tax Act: Telangana HC
The Telangana High Court has held that the loss of fixed deposit investments by an assessee does not qualify as a 'trading loss' for the purposes of claiming deduction from income under Section 28 of the Income Tax Act, 1961. Under Section 28, one may deduct expenses that are fully and solely incurred in the course of operating a business or practicing a profession. In the case...
Only Income From Investment Made By Charitable Institution In Violation Of S.13(1)(d) Income Tax Act Is Liable To Tax: Telangana HC
The Telangana High Court has held that the benefit of exemption under Section 11 of the Income Tax Act, 1961, can be denied only on income from such investments made by charitable or religious institutions, which are in violation of Section 13(1)(d) of the Act. Section 11(1) of the Act mandates that any income derived from the property held under the trust wholly for charitable purpose...