Tax
Can’t Deviate From Text Of GST Provisions, Rules And Forms In GST: Allahabad High Court Quashes Penalty
The Allahabad High Court has held that the Goods and Service Tax Act, 2017 is a complete code in itself and there can be no deviation from the text of the Act, Rules and Forms. A bench comprising of Justice Piyush Agrawal held,“The GST Act is a complete Code in itself. Various provisions, Rules and Forms are prescribed as well as various steps are also to be followed in an...
Tax Authorities Should Not Act As Extortionist, Act Like Business Facilitator; Patna High Court Imposes Cost On Officer
The Patna High Court has imposed a cost of Rs. 5,000 on officers for surreptitiously making tax recoveries contrary to GST enactment.The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has laid down the guidelines and observed that the tax authority should also act as a facilitator of business and the economy and not merely as an extortionist, always looking to have the...
Lawyer-Client Privileged Communication; GST Dept. Can’t Issue Notice To Lawyer : Calcutta High Court
The Calcutta High Court has held that the GST department cannot issue notice to the advocate appearing on behalf of the assessee.The bench of Chief Justice T. S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that Sections 126 and 129 of the Evidence Act protect communications between a lawyer and a client made during the lawyer's employment. It is a settled legal position that...
Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20%
The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the action of the AO in adjusting the refund due to the petitioner/assessee for AY 2022–23 against the disputed demands for AYs 2011–12, 2012–13, and 2014–15 was not only hasty but was also contrary to...
Write-Off Of A Bad Debt Can’t Be Held To Be An Asset Under Section 153A(1) Of The Income Tax Act, 1961: Bombay High Court
The Bombay High Court has held that a write-off of a bad debt cannot be held to be an asset under section 153A(1) of the Income Tax Act, 1961.The bench of Justice K. R. Shriram and Justice Firdosh P. Pooniwalla has observed that since the write-off of bad debt cannot be held to be an asset, clause (a) of the 4th proviso to Section 153A(1) of the Act would bar any assessment that is proposed to...
Manufacture Of Barges, Cenvat Credit Available On Steel Used: CESTAT
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on steel materials used in the manufacture of barges.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that any material used for making some equipment or building, and in turn that equipment or barge is used for providing...
CESTAT Quashes Confiscation Of Goods, Imposition Of Redemption Fine, Penalty, Customs Duty Demand In Absence Of CLRI Report
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that it quashes confiscation of goods, imposition of redemption fines, penalties, and customs duty demands in the absence of the Central Leather Research Institute, Chennai (CLRI) Report.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that...
Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that payments received by the assessee towards interconnectivity utility charges from...
Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the punishment has to be commensurate with the misconduct and that the charges against...
Accused Entitled To Cross-Examine Statements Of Natural Person Recorded Under Customs Act, 1962: Calcutta High Court
The Calcutta High Court has held that the accused is entitled to cross-examine natural persons whose statements were recorded under the Customs Act, 1962.The bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi observed that the appellant or accused can be said to be prejudiced for not having been granted the right of cross-examination in as much as the appellant lost the...
No Further Recovery Of Demand Can Be Made When A Fresh Assessment Is Barred: Karnataka High Court Directs Rs.87 Crore Refund To United Spirits
The Karnataka High Court has held that no further demand can be made for recovery of the balance amount since a fresh assessment is barred. In other words, the tax paid by the assessee must be accepted as it is, and in the event of the tax paid being in excess of the tax liability duly computed on the basis of the return furnished and the rates applicable, the excess shall be refunded to...
ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.The bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has directed the assessing officer to consider the movement in the FD account and the loan account...