Tax
Provisions For Self-Assessment Are More Onerous Than Regular Assessment Regime: Kerala High Court
The Kerala High Court has held that filing an untrue or incorrect return assumes more rigour in the teeth of the onerous obligation, resulting in the imposition of a penalty.The bench of Justice Dinesh Kumar Singh has observed that provisions for self-assessment create an obligation on the assessee to file a correct return, which is more onerous than in a regime that mandates regular...
Tax Cases Monthly Round Up: November 2023
Supreme Court Supreme Court Affirms Penalty On 'Zarda' Manufacturers For Misclassifying Product As 'Chewing Tobacco' For Central Excise Duty Case Title: Commr. Of Cen. Exc. Ahmedabad v M/S Urmin Products P. Ltd. And Others Citation: 2023 LiveLaw (SC) 949 The Supreme Court while adjudicating a matter wherein the Assesssee deliberately misclassified the ‘Zarda’ produced by it...
SAT Criticizes SEBI For Negligence in Unfreezing Kirloskar Family Demat Accounts Despite Orders; Imposes ₹5 Lakh Costs
On Monday, the Securities Appellate Tribunal (SAT) strongly criticized the Securities and Exchange Board of India (SEBI) for its failure to unfreeze the demat accounts of five Kirloskar family members, despite a previous order to do so last year.Presiding Officer Justice Tarun Agarwala and Technical Member Meera Swarup, constituting the Coram, instructed SEBI to pay a penalty of ₹5 lakh to...
ITAT Allows Section 80G Registration To Trust Recycling Post-Consumer Plastic Waste
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the registration under Section 80G of the Income Tax Act to the trust recycling post-consumer plastic waste.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit Singh (Accountant Member) has observed that the assessee earned income only from donations, the sale of scraps, and the sale of finished goods, and no...
Value Of Scrap Need Not Be Included In The Assessable Value: CESTAT
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the value of scrap need not be included in the assessable value.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that for two other periods, pre- and post-2007, demand against the appellant has been set aside for the reason that the value of...
Supply Of Software Amounts To Sale Of Goods, Service Tax Demand Not Sustainable: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the supply of software amounts to the sale of goods, and the service tax demand is not sustainable.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant has developed smart terminal software (STM) for comprehensive terminal automation, which they...
Assessee Being A Debt Free Company, No Need To Impute Notional Interest On Outstanding Receivables: Delhi High Court
The Delhi High Court has held that the assessee was a debt-free company and there was no need to impute notional interest on outstanding receivables.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that there has to be a proper inquiry by the Transfer Pricing Officer by analyzing the statistics over a period of time to discern a pattern that would indicate...
Bombay High Court Set Aside Reassessment Proceedings Alleging Escapement Of Income On Transfer Of Leasehold Rights
The Bombay High Court has quashed the reassessment proceedings alleging escapement of income on transfer of leasehold rights.The bench of Justice K.R. Shriram and Justice Neela Gokhale has observed that if the amount was already considered in the subsequent AY and the assessment order was also passed, the question of escapement of income for the same amount in the previous AY will not arise...
Tax Cases Weekly Round-Up: 26 November To 2 December, 2023
Delhi High Court Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate...
Absence Of Prescribed Rates On Petroleum Products And Indian Made Foreign Liquor Before 26.03.2022, Tax Demand Invalid: Kerala High Court
The Kerala High Court held that the absence of prescribed rates on petroleum products and Indian-made foreign liquor before March 26, 2022, made the tax demand invalid.The bench of Justice Dinesh Kumar Singh has observed that though the petitioners were permitted to effect the parcel sales, the rate was not prescribed, and the rate has been prescribed only by the notification dated March...
L.G. Electronics Not Entitled To Claim Concessional Rate Of Basic Customs Duty On Import Of G-Watch: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee, L.G. Electronics, is not entitled to claim the concessional rate of basic customs duty on the import of G-Watch.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that once the G-Watch works on the internet, it is not acceptable that...
Dept. Can Dispute Residential Status On Strength Of TRC But Not Without Establishing Assessee To Be Shell Company: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that though the department has the authority to dispute the residential status of the assessee merely on the strength of the Tax Residency Certificate (TRC), it is incumbent upon the department to make a proper inquiry and to establish the fact that the party claiming benefit and the strength of the TRC is a shell or...