Tax
Invalid Assumption Of Jurisdiction: Orissa High Court Quashes Reassessment Notices Against Vedanta
The Orissa High Court has quashed the reassessment notice issued against Vedanta Resources Ltd. (VRL) on the grounds of an invalid assumption of jurisdiction.The division bench of Chief Justice Dr. S. Muralidhar and Justice M.S. Raman observed that under Section 127(2)(a), no transfer of jurisdiction can take place without affording the Assessee a reasonable opportunity of being heard in...
No Reason For AO To Believe Income Chargeable To Tax Escaped Assessment: Bombay High Court
The Bombay High Court has held that the development agreement permitted construction on the land only as a licensee, which did not have the effect of transmitting possession in favor of the licensee as per Section 53A of the Transfer of Property Act.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that there was neither any tangible material nor any...
State GST Authority Can’t Prosecute If The Central Authority Has Already Initiated Action: Madras High Court
The Madras High Court has held that the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter.The bench of Justice Abdul Quddhose has observed that the petitioner will have to participate in the personal hearing and state all his objections with regard to the...
Penalty For Non Appearance - Not Valid If No Attempt To Evade Tax Is Made Out: Punjab & Haryana High Court
The Punjab and Haryana High Court has held that non-appearance before the Information Collection Centre (ICC) cannot be made a ground to initiate penalty proceedings if no attempt to evade tax is made.The division bench of Justice Ritu Bahari and Justice Manisha Batra has observed that the driver had produced the documents at I.C.C. and subsequently, at the time of checking, he showed all...
CBDT Notifies Centralised Processing Of Equalisation Levy Statement Scheme, 2023
The Central Board of Direct Taxes (CBDT) has notified the Centralized Processing of Equalization Levy Statement Scheme, 2023.The scheme shall be applicable with respect to the processing of the Equalization Levy Statements.Every assessee or e-commerce operator shall furnish the Equalization Levy Statement under sub-section (1) of Section 167 within the time stipulated under Rule 5(2) of...
Delhi High Court Stays Reassessment Order Based On Internal Audit Objection
The Delhi High Court has stayed the reassessment order based on an internal audit objection.The division bench of Justice Rajiv Shadher and Justice Tara Vitasta Ganju has observed that the expression "any audit objection" was introduced only by the Finance Act, 2022, although with effect from April 1, 2012. Prior to the amendment, the expression obtained in Explanation 1(ii) appended to...
Jharkhand High Court Allows Migration Of The TDS Amount Under GST
The Jharkhand High Court has held that the unadjusted TDS amount has to be treated as an input tax credit amount and is required to be carried forward in the next succeeding months.The division bench of Acting Chief Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the unadjusted TDS amount would have been otherwise refundable to the petitioners if it were not allowed to...
Service Tax Refund Can’t Be Denied On Input Services Wholly Consumed Within SEZ: CESTAT
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax refunds cannot be denied on input services that are wholly consumed within the SEZ.The bench of Ajay Sharma (Judicial Member) has observed that Section 26(i)(e) of the SEZ Act, 2005 specifically provides that all services imported into the SEZ to carry out authorized operations in the...
GST Dept. Empowered To Detain Vehicle And Seize The Goods: Calcutta High Court Upholds Penalty
The Calcutta High Court has held that the GST department was lawfully permitted to impose a penalty under Section 129 as well as the SGST as the goods were found to be detained in the territory of the state.The bench of Justice Bibek Chaudhuri has observed that Section 129 of the Central Goods and Services Tax Act, 2017, empowers the statutory authority to detain the vehicle and seize the...
Tax Cases Weekly Round-Up: 5 February to 11 February 2023
Supreme Court Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO Case Title: PCIT Versus Servant of People Society The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity. Delhi High Court Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi...
No GST Applicable On Supply Of Vouchers: Karnataka High Court
The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST. The bench of Justices P.S. Dinesh Kumar and T.G. Shivashankare Gowda remarked that vouchers, including Gift Vouchers and Cash Back Vouchers, are mere instruments accepted as consideration for supply of goods...
Expenses Incurred During Regular Course Of Business Cannot Be Treated As Capital Expenses: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that expenses incurred during the regular course of business cannot be treated as capital expenses.The two-member bench of Yogesh Kumar US (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that the payment was made towards the professional fee, which includes monthly retainer fees for the...