Tax
Income-Tax Dept. Cannot Ignore The Valid TRC Issued By The Govt.: Bombay High Court Allows DTAA-Benefits To Alibaba Singapore
The Bombay High Court has granted the benefit of the India-Singapore Double Tax Avoidance Agreement (DTAA) to the e-commerce platform Alibaba Singapore.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla upheld the order of the ITAT that if the Revenue was so convinced that the assessee’s activity in India with various subscribers was carried out by Alibaba Hong Kong, then...
CTO For Enhanced Production Capacity Issued After SC’s Order Fixing Total Import Limit; Importer Not Entitled To Proportionate Increase In Import Quota: Supreme Court
The Supreme Court has upheld the decision of the Delhi High Court which set aside the increased quota allocated for import of raw pet-coke (RPC) based on the “Consent to Operate” (CTO) issued to the importer for an enhanced production capacity, after the top court’s order dated 09.10.2018. The bench of Justices S. Ravindra Bhat and Dipankar Datta remarked that the Andhra Pradesh...
Purchase And Sale Of Liquor By The Corporation Will Not Fall Within The Ambit Of BAS And Is Not Taxable: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the corporation will not fall within the ambit of Business auxiliary services (BAS) and would, therefore, not be taxable.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that if the Corporation was engaged in the sale and purchase of liquor for...
Excavation And Raising Of Ore Classifiable Under “Business Auxiliary Service” And Not Under “Mining Service”: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excavation and raising of ore are classifiable under "business auxiliary service" and not under "mining service".The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that where there is excavation or raising of ore, the same would not be...
Bombay High Court Quashes Reassessment Proceedings Initiated To Tax 'Share Premium' Of Rs. 679.32 Crores
The Bombay High Court has quashed the reassessment proceedings initiated to recover the tax share premium of Rs. 679 crores.The bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the AO had only lagged the share premium amount of Rs.679.32 crores, which according to him was chargeable to tax that had escaped assessment, and did not question the amount of Rs.68...
No Tax Can Be Levied On The Principle Of Estoppels: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that no tax can be levied on the principle of estoppel. Just because the Assessee has shown the receipt or income in the wrong head does not make him liable for tax.The bench of N. K. Choudhry (Judicial Member) has observed that management licence fees are taxable under the heading "Income from Business" and not "Income...
Once The Export Obligation Is Discharged, Customs Dept. Could Not Initiate Proceedings Against Assessee: Punjab & Haryana High Court
The Punjab and Haryana High Court has held that once the export obligation is discharged, the customs department cannot initiate proceedings against the assessee.The bench of Justice Ritu Behari and Justice Manisha Batra observed that 50 MT of Coco Butter was lost during transit from the port to the factory, and this information was given to the department. But the lost quantity had been...
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...