Tax
Assessee Entitled To Claim Depreciation In Respect Of Assets On The Actual Cost Of Assets: Bombay High Court
The Bombay High Court has held that the assessee is entitled to claim depreciation in respect of any assets based on the actual cost of the assets.The bench of Justice K.R. Shriram and Justice M.M. Sathaye observed that the actual cost of the assets will be the actual cost that the assessee paid to the predecessor after revaluing the assets, and certainly, the assessee will be entitled to...
Konkan Railway Not Liable To Pay Service Tax On Use Of Mangalore-Roha Line: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Konkan Railway is not liable to pay service tax on the use of the Mangalore-Roha Line.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that both the Konkan Railway Corporation Ltd. and Indian Railways are not separate...
Tax Cases Monthly Round-Up: June 2023
Indirect TaxesDelhi High CourtShow Cause Notice Lacks Reasons In Detail For Denial Of Refund Of ITC To Mcdonald’s India: Delhi High CourtCase Title: M/S Mcdonalds India Pvt. Ltd. Versus Additional CommissionerCitation: 2023 LiveLaw (Del) 479The Delhi High Court has held that the show cause notice lacks reasons in detail for the denial of refund of Input Tax Credit (ITC) to...
Tax Cases Weekly Round-Up: 25 June To 1 July, 2023
Delhi High CourtAssessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores DemandCase Title: Darpan Kohli Versus Assistant Commissioner Of Income TaxThe Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.AO Unclear whether The Notice Is Issued...
Andhra Pradesh High Court Quashes Suspension Order Of Customs Broker Licensee Passed Without Giving Opportunity Of Hearing
The Andhra Pradesh High Court has quashed the suspension order passed by the Customs Commissioner suspending the customs broker licence without giving the opportunity for a hearing.The bench of Justice U. Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that the Managing Director of the petitioner company was on judicial remand. Through repeated requests were made by...
ITAT Deletes Disallowance On Ocean Freight Charges Paid To Korean AE
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the disallowance of ocean freight charges paid to Korean-associated enterprises (AE).The bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) has observed that as per Article 8 of the DTAA of India-Korea, the rentals of ships are in the nature of profit from the operation of ships or...
GST Provisional Attachment Order Not Valid After Expiry Of 1 Year: Bombay High Court
The Bombay High Court has held that the GST provisional attachment order is not valid after one year.The bench of Justice G.S. Kulkarni and Justice Jitendra Jain has observed that the communication dated April 21, 2022, provisionally attaching the Petitioner’s bank account is rendered illegal and invalid by virtue of the provisions of Section 83(2) of the CGST Act. The extension of...
Charging Higher Fees By Charitable Institution Will Not Make It Commercial; CESTAT Allows Refund To Adani Institute Of Medical Sciences
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund to Gujarat Adani Institute Of Medical Sciences and held that merely by charging a higher fee, an institution cannot be treated as a commercial institute.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the Lower Authorities have...
CBDT Extends Time Limits For Submission Of TDS/TCS Statements
The Central Board of Direct Taxes (CBDT) has extended the time limits for the submission of TDS and TCS Statements.The CBDT provides relaxation in the statement of deduction of tax for the first quarter of the financial year 2023–24, required to be furnished in Form No. 26Q or Form No. 27Q, on or before July 31, 2023, under Rule 31A of the Income-tax Rules, 1962, and may be furnished on...
CBDT Circular Allowing Benefit Only To Cases Where Appeals Are ‘Dismissed In Limine’ Is Arbitrary: Bombay High Court
The Bombay High Court has quashed FAQ 61 of the circular 21/2020 dated December 4, 2020, issued by the CBDT to the extent that it restricts appeals to those dismissed in limine’ on the ground that it was not only adverse to the interest of the assessee but also contrary to the object and reasons of the Direct Tax Vivad Se Viswas Act, 2020 (DTVSV-A).The bench of Justice Dhiraj Singh Thakur...
Sales-Tax Exemption Certificate Has Overriding Effect Over VAT Notification: Karnataka High Court
The Karnataka High Court has held that the sales tax exemption certificate is valid for 7 years and could not have been rescinded before the period of eligibility expired as it is a sovereign assurance.The bench of Justices P.S. Dinesh Kumar and C.M. Poonacha has observed that the State Government discontinued sales tax-based incentives. However, the incentives already offered and committed...
Bombay High Court Imposes Rs.50,000 Cost For Last Minute Application For Stay On LOCs To Travel Abroad
The Bombay High Court has imposed an Rs. 50,000 cost for a last-minute application for a stay on Look Out Circulars (LOCs) to travel abroad; however, the interim stay was granted on an LOC issued at the instance of the CBI.The bench of Justice G.S. Patel and Justice Neela Gokhale observed that the parties seeking to stay on any Look Out Circular (LOC) are required to apply to the Court in...