Tax
Appeal Dismissed For Non-Payment Of Pre-Deposit; Revenue Can't Challenge Restoration After Accepting Deposit: Punjab and Haryana High Court
The Punjab and Haryana High Court stated that if the appeal of the assessee was previously dismissed due to non-payment of the pre-deposit, and they have since made that payment, which has been accepted by the Revenue, then the Revenue cannot later challenge the restoration of the appeal.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “Tribunal can...
Gujarat HC Pulls Up GST Authority Over “Cryptic” SCN For Cancelling Registration Despite 2022 Directions
The Gujarat High Court on Friday criticized the GST authorities over their failure to comply with two years old guidelines issued by it in Aggrawal Dyeing & Printing vs. State of Gujarat (2022) for issuance of reasoned show cause notices (SCN) for cancellation of GST registration.In that case, the HC had directed the authorities to include all necessary particulars in the SCN and...
AP High Court Dismisses Plea Alleging “Double Taxation” On Sale Of Basmati Rice, Says Fees Collected By Agricultural Market Committee For Its Services Is Not Tax
The Andhra Pradesh High Court has dismissed a petition alleging that cess levied by State's Agricultural Market Committee on sale of 'Basmati rice' amounts to “double taxation”.One of the petitioners, a trader of Basmati rice, claimed that it sources the rice from Punjab where it already pays agricultural market committee tax and thus contended that if the State of Andhra Pradesh imposes...
Educational Trust Using Earnings For Educational Advancement Entitled To Benefits Under Section 12AA Of Income Tax Act: Punjab & Haryana High Court
The Punjab and Haryana High Court ruled that an institute registered as an educational trust, using its earnings solely for educational advancement, should not be denied the benefits of Section 12AA of the Income Tax Act, 1961.The Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “the institute is a duly registered educational trust and whatever earnings it receives...
“Notification Issued Without GST Council's Recommendation”: Gauhati HC Sets Aside Notification Extending Time Line For Issuance Of Order For A.Y. 2018-19 And 2019-20
The Gauhati High Court allowed the batch of writ petitions challenging the Notification No. 56/2023 dated 28.12.2023 extending the period of limitation for issuance of Order u/s 73(10) of the CGST Act, 2017 for the Assessment Year 2018-19 and 2019-20.The Court opined that the existence of the recommendation is a sine qua non for exercising the power under Section 168A to extend the timelines...
Madras High Court Stays Instruction Of Specified Officer Removing General Insurance Services From Default List Of Input Services For GST Exemption
The Madras High Court has stayed an instruction issued by the Specified Officer, Office of Development Commissioner, MEPZ Special Economic Zone, through which the officer had unilaterally removed General Insurance services from the default list of input services which are eligible for GST exemption. Justice Anita Sumanth noted that assumption of jurisdiction by the specified officer...
Non-Filing Of Declaration & Input-Output Ratio Is Procedural Requirement But Not Pre-Condition For Claiming Rebate On Excise Of Exported Goods: Bombay HC
The Bombay High Court recently clarified that just because the verification of input-output ratio was not submitted before the export of goods, it does not mean that same cannot be verified post export of goods.While giving such relaxation, the Division Bench of Justice K. R. Shriram and Justice Jitendra Jain observed that the procedure for submitting input-output ratio is inconsequential...
Tax Department Can't Create Charge On Property Of Corporate Debtor During Currency Of Moratorium Imposed By NCLT: Himachal Pradesh HC
The Himachal High Court held that once the corporate debtor is directed to be liquidated by the NCLT u/s 33(5) of Insolvency & Bankruptcy Code (IBC), no legal proceeding could be instituted by or against him by the Tax Authorities.Thus, the High Court clarified that the red entry/charge created by the Revenue Department on the property of the petitioner-company during the currency of...
Proper Officer Has No Evidence That Taxpayer Did Not Exist At Principal Place Of Business: Delhi HC Quashes Order Cancelling GST Registration With Retro Effect
Pointing out that the order cancelling the petitioner's GST registration with retrospective effect does not indicate any reason except referring to the SCN, the Delhi High Court quashed the said order and permitted the petitioner to file a response to the SCN.The Division Bench of Justice Vibhu Bakhru and Justice Sachin Datta observed that “letter sent by Deputy Commissioner (Anti Evasion)...
Staff Welfare Expenditure Incurred By Employer As Per SEBI Guidelines Is Revenue Expenditure: Delhi High Court
Emphasizing that shares which is subject to a lock-in stipulation, could not be sold in an open market, the Delhi High Court held that valuation report obtained by the employer for ascertaining its withholding tax obligations during allotment of such shares to its employees as a perquisite, cannot be considered for purpose of Fair Market Value (FMV) of those shares.Referring to the decision...
Department Can't Issue SCN Simply Alleging Misstatement, Without Pointing Out Specific Fact Of Suppression By Taxpayer: Delhi HC
Finding that the Show cause notice (SCN) issued to the petitioner/assessee did not set out any intelligible reasons for cancellation of its GST registration, the Delhi High Court quashed the said SCN.The High Court found that the SCN issued to the petitioner, simply mentioned the provisions of Section 29(2)(e) of the CGST Act, 2017 which authorises the proper officer to cancel the taxpayer's...
Profits Attributable To Permanent Establishment Can't Be Ignored On Basis Of Global Income Or Loss Earned/ Incurred By Cross Border Entity: Delhi HC
Referring to Article 7 of the Double Taxation Avoidance Agreement (DTAA) entered into between the Government of United Arab Emirates and the Republic of India, the Delhi High Court held that the right of the Holding company (source State) to allocate or attribute income to the Permanent Establishment (PE) cannot be restricted on the basis of the global income or loss that may have been earned...