Tax
Attempt By CIT To Exclude Genuine Disputes Under The VSV Act Is Extremely Hyper-Technical: Delhi High Court
The Delhi High Court has held that the attempt by the CIT to exclude genuine disputants of tax liability from the possibility of settlement under the Direct Tax Vivad Se Vishwas Act (VSV) is extremely hyper-technical.The division bench of Justice Mukta Gupta and Justice Anish Dayal has observed that any proceeding challenging a decision by the department in respect of tax,...
Sum Received By Bank Under Liquidation, Whose Liability Towards DICGCI Not Cleared- Not Taxable Due To Diversion Of Income At Source: ITAT
The Ahmedabad Bench of the ITAT has ruled that the sum received by a bank who is under liquidation, and whose statutory liability to repay the Deposit, Insurance and Credit Guarantee Corporation of India (DICGCI) is not fully satisfied, is not taxable since all the income received by the assessee bank is diverted at source. The Bench of Members T.R. Senthil Kumar (Judicial Member)...
Tax Cases Monthly Round-Up: August 2022
Indirect TaxSupreme Court Advise States To Implement Digital DIN System : Supreme Court To Centre & GST Council Pradeep Goyal vs Union of India Citation: 2022 LiveLaw (SC) 654 The Supreme Court has directed the GST Council to issue advisory / instructions / recommendations to the respective States regarding implementation of the system of electronic (digital) generation...
No Legislative Competence To Amend KVAT Act After Introduction Of GST Act: Kerala High Court
The Kerala High Court has held that legislative competence to amend the Kerala Value Added Tax (KVAT) Act after the introduction of the GST Act is impermissible.The division bench of S.V.Bhatti and Justice Basant Balaji has observed that the amendment made by the Finance Act of 2018 to the provisions of the erstwhile KVAT Act to enable the department to initiate assessment proceedings...
No Penalty Can Be Imposed For Introducing The Importer To IEC Holder: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a penalty cannot be imposed for introducing the importer to the Importer-Exporter Code (IEC) holder.The bench of Anil Chaudhary (Judicial Member) has observed that no penalty can be imposed without proving the role of the person being charged. The appellant/assessee is working as a...
Bombay High Court Directs CBIC To Issue Clarification Regarding Distribution/ Reporting Of ISD Credit
The Bombay High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) to issue a clarification in relation to the distribution/ reporting of the ISD credit. The Bench of Justices K.R. Shriram and Gauri Godse was dealing with a batch of writ petitions, highlighting the difficulties faced by the petitioners in the distribution/ reporting of the ISD...
Delhi High Court Allows Deduction To PVR On Difference Between Market Price & Issue Price Of ESOP
The Delhi High Court has allowed the appeal of PVR Ltd. and allowed the deduction on the difference between the price at which stock options were offered to employees of the appellant company under ESOP and ESPS and the prevailing market price of the stock.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has relied on the decision of the Karnataka High...
Mandatory Deposit U/S 35F Of Excise Act Cannot Be Made By Way Of Debit In Electronic Credit Ledger Maintained Under CGST Act: CESTAT
The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a mandatory deposit under section 35F of the Excise Act cannot be made by way of debit in the Electronic Credit Ledger maintained under the CGST Act.The two-member bench headed by Dilip Gupta (President) and P. Anjani Kumar (Technical Member) has observed that as per the provisions...
Re-assessment Order Passed Without Considering Detailed Reply Of The Assessee: Delhi High Court
The Delhi High Court held that the significance of issuing a show cause notice prior to issuing a re-assessment notice has been lost because the order under Section 148A(d) of the Income Tax Act was made without taking into account the detailed reply filed by the assessee.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh has observed that the department has not...
If Assessee Disputes Interest Liability Then Dept. Has To Follow Procedure Laid Down u/s 73 or 74 of the CGST Act: Jharkhand High Court
The Jharkhand High Court has held that if any assessee disputes the liability of interest under Section 50 of the CGST Act, then the department has to follow the specific procedure as stipulated under Section 73 or 74 of the CGST Act.The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the department failed to follow the procedure as enshrined...
Investigation Post Filing Application Would Not Debar Applicant From Seeking Advance Ruling: Telangana High Court
The Telangana High Court has held that the investigation post-filing of the application would not debar the applicant from seeking an advance ruling.The division bench of Chief Justice Ujjal Bhuyana and Justice C.V.Bhaskar Reddy has observed that the word "proceedings" has neither been defined in Chapter XVII nor in the definition clause, i.e., in Section 2 of the CGST Act. The inquiry...
Interface Development Services By BlackRock India - Not An 'Intermediary Service': CESTAT
The Chandigarh Bench of CESTAT has ruled that the services provided by BlackRock India, relating to development of interface for an operating system for investment managers, is not an intermediary service. The Bench of Ajay Sharma (Judicial Member) and P.V. Subba Rao (Technical Member) held that the 'Business Support Services' rendered by BlackRock to its US based clients...