Tax
Income Tax Dept. Can't Withhold Refunds In Mechanical And Routine Manner: Delhi High Court
The Delhi High Court has held that an order under Section 241A of the Income Tax Act cannot be passed in a mechanical and routine manner. The refunds cannot be withheld just because the notice under Section 143(2) has been issued and the department wants to verify the claim for deduction under Section 10AA of the Income Tax Act.The division bench of Justice Manmohan and...
Non Refund Of Licence Fee For Model Shop, Unused Due To Covid Prohibitions: Allahabad High Court Asks Dept To Explain
The Allahabad High Court has held that the department has practically refused to comply with the directions of the Court and has shown misconduct and a flagrant breach of the principles of judicial discipline and propriety. The division bench of Justice Surya Prakash Kesarwani and Justice Jayant Banerji has observed that the conduct of the department may require the imposition of...
Exporter Not Required To Hold IEC Number To Avail Benefits Under 'Service Exports From India' Scheme: Bombay High Court
The Bombay High Court has ruled that the requirement of holding an Import Export Code (IEC) number at the time of rendering services in order to avail the benefits under the Services Export from India Scheme (SEIS), as imposed by the Foreign Trade Policy 2015-2020 (FTP), is against the intent and purpose of the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act). The...
Definition Of Relative Under Senior Citizens Act Can't Be Treated At Par With Income Tax Act, 1961: Delhi High Court
The Delhi High Court has held that the petitioner's real intent was to ensure that gift tax is not levied on donee. The petition does not promote the maintenance and welfare of senior citizens.The division bench of Justice Manmohan and Justice Manmeet Preetam Singh Arora has observed that as per the object of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 and the...
CBIC Issues Advisory For AEM For Delayed Bill Of Entry Under Faceless Assessment
The Central Board of Indirect Taxes and Customs (CBIC) has issued the advisory for the Anonymised Escalation Mechanism (AEM) for delayed Bill of Entry under Faceless Assessment. The Board has endeavoured to provide an anonymized escalation mechanism for ICEGATE registered users where they can submit their grievance for delay in Bill of Entry clearance under faceless assessment....
Service Of Preparation Of Scalp, Fitment And Maintenance Of Wig- Indivisible Contact: Madras High Court
The Madras High Court has held that the primary activity is the manufacture of the wig, for which the central excise duty is remitted. The fitment of the wig, including the preparation of the scalp and optional maintenance of the wig itself, is incidental to the manufacturing and supply of the wig.The single bench of Justice Anitha Sumanth has relied on the decision of the Supreme Court...
Gujarat High Court Directs CBIC To Refund IGST On Ocean Freight
The Gujarat High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) to refund the Integrated Goods and Service Tax (IGST) on ocean freight within six weeks along with the statutory rate of interest.The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has relied on the decision of the Supreme Court in the case of Mohit Minerals Pvt. Ltd. vs. Union...
Tax Cases Weekly Round-Up: 31 July To 6 August, 2022
Supreme 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 of a...
Recovery Of Tax Dues Of A Company From Its Directors Under Section 179 Of Income Tax Act, Cannot Be Invoked Casually: Bombay High Court
The Bombay High Court has ruled that exercise of jurisdiction under Section 179 of the Income Tax Act, 1961 against the director of a public company, to recover the tax dues of the said company, is violative of the principles of natural justice, where the Income Tax Authority has failed to give any opportunity of hearing to the director before applying the principle of 'lifting the...
Tax Exemptions Given With Benevolent Object, Approach For 'Exempting' & 'Including' Subject Matters Under Tax Purview Can't Be Same: Orissa HC
The Orissa High Court has held that the approach which is employed to exempt a commodity from the purview of taxation is not the same which is used to bring a good under the umbrella of taxation. While applying this principle, a Division Bench of Chief Justice Dr. S. Muralidhar and Dr. Justice Sanjeeb Kumar Panigrahi held that 'Chuni' is different from 'Cattle feed' under entry 66 of...
CESTAT Allows CENVAT Credit On Service Tax Paid On Input Services Received By The SEZ Unit
The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT credit on service tax paid on input services received by the SEZ unit. The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has observed that the assessee could forego exemption and claim the benefit of the CENVAT credit on the...
Recovery Of Demand Against Issues Decided In Favour Of Assessee Is Unwarranted: Delhi High Court
The Delhi High Court has held that the recovery of demand against issues decided in favour of the assessee is unwarranted.The division bench of Justice Manmohan and Justice Manmeet Singh Arora has found that the Central Board of Direct Taxes (CBDT) has itself issued an Instruction dated February 2, 1993, giving guidelines for Stay of Demand. One of the guidelines for the grant of...