Tax
Allahabad High Court Grants Bail To Applicant Accused Of Availing Excess Input Tax Credit, As Proceedings U/S 70 And 74 Pending Since Long
The Allahabad High Court has granted bail to the applicant accused of availing excess input tax credit as the proceedings under Section 70 and Section 74 of the Goods and Service Tax Act, 2017 were pending since long.Section 69 of the GST Act gives power to the Commissioner to order arrest of any person who has committed any offence under Section 132 of the Act. Section 132 lays down a list...
Where Statutory Appeals Filed After Making Pre-Deposit, Stay Applications Must Be Decided In Reasonable Time: Allahabad High Court
The Allahabad High Court has held that were a statutory appeal has been filed and the condition for pre-deposit has been complied with, stay applications filed along with such appeals must be decided within a reasonable time.Petitioner approached the High Court against the order for putting up the stay application filed on 24.01.2024 in appeal pending for last four years on a separate date...
Information From ITR/26AS Can't Be Sole Basis For Service Tax Demands: CESTAT
The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax demand was made on the basis of third-party data, i.e., amounts reflected in income tax returns and in Form 26AS, which is not sustainable. The bench of P. Anjani Kumar (Technical Member) has observed that the exigibility of service tax depends on the service provider,...
Kerala VAT Act Empowers Taxing Authorities To Recover Tax Dues From Directors Of Private Company: Kerala High Court
The Kerala High Court has held that Section 39 of the Kerala Value Added Tax Act, 2003, empowers the taxing authorities to recover the tax dues from the directors of the private company if the company fails to make payment of the tax.The bench of Justice Dinesh Kumar Singh has observed that when the taxing authorities could not recover the dues from the company, they issued notice for recovery...
Differentiation Between Government Employees And Other Employees For Leave Encashment Exemption Not Violative Of Article 14: Patna High Court
The Patna High Court has held that differentiation between government employees and other employees for leave encashment exemption is neither discriminatory nor violative of Article 14 of the Constitution of India.The bench of Chief Justice K. Vinod Chandran and Justice Rajiv Roy has observed that the legislature must have the freedom to select and classify persons, properties, and income that...
Direct Tax Cases Monthly Round Up: February 2024
Supreme Court Reopening Of Income Tax Assessments : Supreme Court Refuses To Interfere With Delhi High Court's Guidelines To Tax Dept. Case Title: Asst. Commissioner Of Income Tax Versus Sabh Infrastructure Ltd. The Supreme Court has refused to interfere with a 2017 Delhi High Court judgment which issued a set of guidelines to the Income Tax Department regarding the...
'Cash' Excluded From Definition Of 'Goods', Can't Be Seized: Delhi High Court
The Delhi High Court has directed the respondent department to forfeit or remit the cash seized from the premises of the petitioner to the petitioner along with interest. The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that 'cash' is clearly excluded from the definition of the term 'goods' and would fall within the definition of'money' as defined in Section 2...
AO's Classification Of Harpic And Lizol Under 28% GST Slab Rate Is Without Application Of Mind: Madras High Court
The Madras High Court has held that Ao's classification of Harpic and Lizol under the 28% GST slab rate is without application of mind.The bench of Justice Mohammed Shaffiq has observed that when objections are raised, a duty is cast on the assessing authority to apply its mind to the objections and deal with each one of them. Failure to do so would vitiate the order of assessment on the...
Mobile Number Mentioned In ITR Turned Out To Be A Fraud Number On True Caller Can't Be A Ground To Refuse Tax Treaty Benefit: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, Abu Dhabi Investment Authority, is liable to benefit provided under Article 24 of the India-UAE Double Taxation Avoidance Agreement (DTAA), which provides that the government of one contracting state shall be exempt from tax in other contracting states in respect of any income derived by such income...
Lender Banks Required To Provide Audit Reports To Borrowers & Allow Representation Before Classifying Accounts As Fraud: Gujarat High Court
The Gujarat High Court while partly allowing a special civil application has emphasized the importance of lender banks affording borrowers the opportunity to review audit reports and present their case before categorizing an account as fraudulent. The court stressed the need for lenders to provide a copy of audit reports and allow a reasonable window for borrowers to submit...
Gujarat High Court Grants Regular Bail to Accused in Rs. 67.72 Crore GST Fraud Case
In a notable legal development, the Gujarat High Court has granted regular bail to Parag Nathalal Haria, who was implicated in an alleged Goods and Services Tax (GST) fraud amounting to Rs. 67.72 crores.The ruling came in an Application filed under Section 439 of the Code of Criminal Procedure for enlarging the Applicant on Regular Bail in connection with F.No. GEXCOM / AE / INV / GST / 8107...
Gujarat High Court Directs Authorities To Follow Court Orders In IGST Refund Case
The Gujarat High Court, in its decision on a special civil application, while emphasising the binding nature of its directions on respondent-authorities, stated that once the Court issues directions, they hold authority over the respondent-authorities, and consequently, the respondent-authorities are obligated to adhere to the directions issued by the Court when exercising their powers...