Tax
Tax Cases Weekly Round-Up: 5 March to 11 March 2023
Delhi High Court Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court Case Title: Commissioner of Customs (Airport & General) vs M/s R.P. Cargo Handling Services The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs...
Applications For Refund Of ITC Cannot Be Denied On Mere Suspicion: Delhi High Court
The Delhi High Court has held that applications for refund of Input Tax Credit (ITC) cannot be rejected merely on suspicion and without any cogent material. The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan directed the department to initiate a refund of ITC of Rs. 72,03,961/-based on the goods that the petitioner has exported. In this case, the petitioner filed...
Bombay High Court Quashes Reassessment Proceedings Against Jetair
The Bombay High Court has quashed the reassessment proceedings against Jetair Pvt Ltd, a group entity of Jet Airways (India) Ltd, and has set aside the notice issued by the revenue department under Section 148 of Income Tax Act, 1961 against Jetair, seeking to reopen assessment for the relevant assessment year. The bench of Justices Dhiraj Singh Thakur and Kamal Khata rejected...
Body Cam Jackets For Customs Boarding Officers: CBIC Emphasis On The Need For Transparency
A circular from the Central Board of Indirect Taxes and Customs (CBIC) outlines how to increase transparency by using boarding jackets equipped with body-worn cameras (BWCs) that can record video and audio for use by the boarding officer.Every ship that enters the country notifies the Customs and Port Authorities of its arrival. Boarding officers are typically the first members of the...
The Amount Which Is Lower Of Unabsorbed Depreciation And Business Loss Will Be Set-Off Against Book Profits: ITAT
The Delhi Bench of Income Tax Appellate Tribunal has clarified the provisions of clause (iii) of Explanation-1 to Section 115JB (2) for computation of book profits for taxation. The Tribunal held that amount which is lower between unabsorbed depreciation and business loss deserves to be set off against the current Assessment Year (A.Y.) book profits in terms of the provisions of Income...
Unrealistic To Expect GST Return Filing Without Actual Commencement Of Business: Orissa High Court Directs Dept. To Process Licence Application
The Orissa High Court has held that the license application should not be rejected only because a GST return has not been filed yet, since it is unrealistic to expect that to happen without the actual commencement of its business.The division bench of Chief S. Muralidhar and Justice G. Satapathy has observed that unless the petitioner is issued a license and is able to commence its business,...
Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty
The Calcutta High Court has directed the refund of the penalty and held that the department was vacillating between Sections 67 and 68 of the GST Act, depending on whether the goods are in transit or in the godown.The bench of Justice Amrita Sinha has observed that initially the authority invoked the provision of Section 67 but thereafter shifted its stand and relied upon Section 68 read...
Purchaser Is Not Entitled To ITC On The Purchases Made From The Seller Who Had Discharged Its Tax Liability: AAR
The Punjab Authority of Advance Ruling (AAR) has held that the purchaser is not entitled to claim Input Tax Credit (ITC) on the purchases made by it from the seller, who had discharged its tax liability.The two-member bench of Varinder Kaur and Viraj Shayamkarn Tidke has observed that no registered person shall be entitled to take credit for any input tax in respect of any supply of goods...
An Order Is Not Prejudicial To The Interest Of Revenue U/S 263 If It Is Based On An Uncertain Issue Of Entitlement Of Treaty Benefit: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that an order by assessing officer on whether a particular entity is entitled to a treaty benefit or not is a highly contentious issue and cannot be considered to be erroneous and prejudicial to the interest of revenue under section 263 of Income Tax Act, 1961. The two-member bench of Saktijit Dey (Judicial member)...
Building And Fabricating Tipper Body If Chassis Is Owned, Supplied By The Customer Attracts 18% GST: Punjab AAR
The Punjab Authority of Advance Ruling (AAR) has held that the building and fabricating of a tipper body if the chassis is owned and supplied by the customer attract 18% GST.The two-member bench of Varinder Kaur and Viraj Shayamkarn Tidke has observed that 28% GST is payable on the activity of building and fabricating a Tipper Body and mounting the same by the applicant on the chassis owned...
Reversal of ITC At Midnight During Search And Seizure Operation Can't Be Treated As Voluntary Payment: Gujarat High Court Directs Refund
The Gujarat High Court has held that the reversal of input tax credit (ITC) at midnight during search and seizure operations can't be treated as a voluntary payment.The division bench of Justice Sonia Gokani and Justice Sandeep S. Bhatt has directed the department to reverse the ITC to the tune of Rs. 37,68,300 along with 6% interest.The petitioner is in the business of trading...
ITAT Upholds Income Tax Addition On Amount Received For Arbitration Settlement
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the income tax addition on the amount received for arbitration settlement from Indian Oil Infrastructure & Energy Services.The two-member bench of Kul Bharat (Judicial Member) and Narendra Kumar Billaiya (Accountant Member) has observed that the assessee was engaged in the project only through its PE in India. In view...