Tax
Income Tax Act | Alternate Remedy Available, Orders Are Appealable, Writ Jurisdiction Need Not Be Invoked, Allahabad High Court
The Allahabad High Court has refused to quash order and consequential notice under Sections 147 and 148 of the Income Tax Act, 1961 in writ proceedings under Article 226 of the Constitution of India. The Court held that all permissible grounds of defence remain open to assessee at the stage of proceedings under Section 148.The bench comprising Chief Justice Pritinker Diwaker and Justice...
Intent To Evade Tax Sine Qua Non For Initiation Of Proceedings U/S 129 And 130 Of CGST Act: Allahabad High Court
The Allahabad High Court has held that it is necessary for the authorities to establish intention to evade tax for proceedings under Sections 129 and 130 of Central Goods and Service Tax Act, 2017. The Court held that without recording a finding a as to intention to evade tax, proceedings can at best be initiated under Section 122 of the Act.Dealing with Section 129 and Section 130 of the...
Clarification On Audit Report Requirements for ‘Substantial Contributors’ In AY 2023-24: CBDT
The Central Board of Direct Taxes (CBDT) has issued the clarification on Audit Report Requirements under Section 119 of the Income-tax Act, 1961 for ‘Substantial Contributors’ in AY 2023-24.It focuses on providing details of ‘substantial contributors’ in Form No. 10B or 10BB for the assessment year 2023-24. The circular states that details should include contributors whose...
Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC
The Kerala High Court recently addressed the difficulties faced by small scale dealers during the initial phases of GST implementation in understanding the provisions of GST Act. Justice Dinesh Kumar Singh set aside the orders of the assessing authority disallowing the input tax credit claims of the petitioners and observed thus,“The period involved is 2017-18 when the GST regime was...
Income Received By UK Telecom Company From Indian Telecom Company For Rendering Roaming Services To Customers Abroad Is Not ‘Royalty’: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income received by a UK telecom company from an Indian telecom company for rendering roaming services to customers abroad is not ‘royalty’.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that payments made to a non-resident company for providing standard bandwidth services...
Burden To Prove Concession Rightly Claimed Upon Assesee In Original Proceedings, Burden Shifts Upon Department In Reassessment Proceedings: Allahabad High Court
The Allahabad High Court has recently held that the burden to prove that concession has been rightly claimed is upon the assesee in the original proceedings. However, the Court held that in reassessment proceedings, burden shifts upon the Department to prove that assesee had wrongly claimed concession.Distinguishing the decision of Allahabad High Court in Star Paper Mills Limited Vs....
Statutory Appeal Period Under Customs Act, Appellate Authority Has No Power To Condone Delay: Delhi High Court
The Delhi High Court has held that the appellate authority has no power to allow the appeal to be presented beyond the period of 30 days.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has relied on the decision of the Supreme Court in the case of Singh Enterprises vs. Commissioner of Central Excise, Jamshedpur & Ors., in which it was held that the legislature intended...
Bakery Shortening And Vanaspati Are As Same: Allahabad High Court Applies Common Parlance Test
The Allahabad High Court has applied the Common Parlance Test and held that bakery shortening and vanaspati are the same.The bench of Justice Piyush Agrawal has observed that on the test of 'Common Parlance' Notification No. 37/2003 dated April 30, 2003, issued by the Government of India is very important and relevant, as in the Notification the Union Government has very categorically...
‘Kurkure’ And ‘Cheetos’ Classifiable As ‘Namkeen’, Not ‘Snacks’ Under VAT Act: Rajasthan High Court
The Rajasthan High Court has held that ‘Kurkure’ and ‘Cheetos’ are classifiable as ‘namkeen’, not 'snacks' under the VAT Act.The bench of Justice Sameer Jain observed that the department neither sought any technical or expert opinion nor brought any evidence on record to prove their point. It appears that the Tax Board merely relied on a basic Google search result wherein the...
‘Reasons Are Heart And Soul Of Any Judicial And Administrative Order’: Allahabad HC Quashes Unreasoned Order Of GST Registration Cancellation
While setting aside order cancelling GST registration of assesee on grounds that it was unreasoned, the Allahabad High Court has held that ‘reasons are heart and soul’ of any order. In absence of reasons assigned, the order is vitiated in law.Petitioner’s GST registration was cancelled by the Assistant Commissioner, Sector 25, State Tax, Kanpur Nagar. Appeal preferred by the petitioner...
Tax Not Payable On Interest Accrued On FD Which Is Subject To CBI’s Prohibitory Order: ITAT
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that tax is not payable on interest accrued on FD, which is subject to the CBI’s prohibitory order.The bench of Madhumita Roy (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the lower authorities have committed an error in bringing the interest accrued on FD, which is subject to a...
Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court
The Supreme Court has recently highlighted that the transaction value (the price actually paid or payable for the goods) should be the primary basis for customs valuation and that other valuation methods be invoked sequentially only when there is evidence to doubt the correctness of the declared transaction value. A division bench of Justice B.V Nagarathna and Justice Ujjal Bhuyan added that...