Tax
Filing Delayed Returns, Power To Condone Delay Is Conferred On CBDT To Ensure Substantial Justice; Bombay High Court
Explaining the scope of powers u/s 119(2)(b) of the Income tax Act, the Bombay High Court recently clarified that the legislature has conferred power on the Principal Commissioner of Income Tax (respondent no.3) to condone the delay to enable the authorities to do substantive justice to the parties by disposing the matter on merits. Hence, the High Court observed that routinely...
Indirect Tax Cases Weekly Round-Up: 7 April To 13 April 2024
Supreme Court Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials Case Title: The State Of Gujarat & Anr. V. Paresh Nathalal Chauhan Citation : 2024 LiveLaw (SC) 295 The Supreme Court (on March 12) expunged the observations made by the Gujarat High Court in an interim order that statutory protection of the good faith clause under Section 157...
Admissibility Of Discounts Passed On To Buyers Subsequent To Clearance, Is Eligible Deduction For Determination Of Assessable Value: CESTAT
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the admissibility of discounts that were passed on to the buyers and were known at the time of clearance of goods is an eligible deduction for the purpose of determining the assessable value.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has observed that the...
Counter Sales Permission Of Alcoholic Liquor Was Concession Given To Bar Attached Hotel Owners For Carrying On Business During Covid-19: Kerala High Court
The Kerala High Court has held that the permission to effect over-the-counter sales of alcoholic liquor was a concession given to bar-attached hotel owners to permit them to carry on business and tide over the COVID lockdown period. The assessee cannot now contend that the tax on such transactions should not be levied on him because he did not originally have permission to effect such...
Madras High Court Restrains Dept. From Appropriating Interest Liability Against Eicher Motors Until Matter Is Taken Up By Appellate Court
The Madras High Court has restrained the department from appropriating interest liability against Eicher Motors until the matter is taken up by the appellate court.The bench of Justice Senthilkumar Ramamoorthy has observed that since an appeal has been filed against the order of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) with regard to the imposition of interest on the...
Rationale To Deny ITC To Service Provider Who Is Not Liable To Pay Tax On Output Services Is Obvious: Delhi High Court
The Delhi High Court has held that the rationale to deny input tax credit (ITC) to service providers who are not liable to pay tax on output services is obvious.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has held that the service providers rendering services on which tax is payable on a reverse charge basis would constitute a class of their own, and a challenge to the same...
Delhi High Court Grants Relief Of As Low As 5% IGST On Import Of Dialysis Machines By FMC India
The Delhi High Court has granted relief of as low as 5% Integrated Goods and Service Tax (IGST) on the import of dialysis machines by Fresenius Medical Care India Private Limited (FMC India).The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that dialysis machines covered under HSN Code 9018 and 9031 are liable to be taxed at 5%, essentially awarding a...
Placement Agency To Be Given Proper SCN On Alleged Failure To Perform Duties Coupled With Monetary Loss To JSBCL: Jharkhand High Court
The Jharkhand High Court has held that Rule 15 of the Jharkhand Excise (Operation of Retail Product Shops through Jharkhand State Beverages Corporation Limited) Rules, 2022, and the corresponding clauses of the contract have to be restricted only to those situations where the placement agency has been found, albeit after hearing the agency, to have failed to provide manpower to Jharkhand...
ITSC Entrusted With Power Of Granting Immunity From Penalty And Prosecution Only In Case Of Full And True Disclosure: Delhi High Court
The Delhi High Court has held that the Income Tax Settlement Commission (ITSC) is entrusted with the power to grant immunity from penalty and prosecution only in cases of full and true disclosure.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that once it is seen that the disclosure was not full and truthful, the ITSC loses its jurisdiction to...
No Order Passed On Rectification Application Filed By Assessee For Six Years: Bombay High Court Directs Disciplinary Action Against AO
The Bombay High Court has directed the disciplinary action against AO as no order has been passed on the rectification application filed by the assessee for six years.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the Assistant Commissioner of Income Tax (ACIT) Officer was duty-bound to pass orders on the application, which has been pending for almost 6...
Supreme Court Expunges Gujarat HC's Adverse Observation Against GST Officials
The Supreme Court (on March 12) expunged the observations made by the Gujarat High Court in an interim order that statutory protection of the good faith clause under Section 157 of the Goods and Services Tax Act may not be available to the GST officers who conducted a search operation in the instant case. A bench of Justices P.S. Narasimha and Aravind Kumar stated that the...
Approval To Reopen Assessment Against Vodafone Granted By The Dept. In A Most Casual Manner: Bombay High Court
The Bombay High Court has held that the approval has been granted in a most casual manner. The power vested in the authorities under Section 151 to grant or not grant approval to the AO to reopen the assessment is coupled with a duty. The authorities were duty-bound to apply their minds to the proposal put up for approval in light of material relied upon by the AO. The bench of Justice K....