Tax
GST Council Has Unequal Voting Structure, Can Be An Avenue For Political Contestation : Supreme Court
While holding that the recommendations of the Goods and Services Tax(GST) Council are not binding on the Centre and the States, the Supreme Court has highlighted the unequal voting structure and the possibility of political contestations in the Council.The Court noted that the recommendations of the GST Council are not based on a unanimous decision but on a three-fourth majority of the...
The Unfortunate Invocation Of Article 142 - Supreme Court Decision On The Reassessment Notices
The recent topic of debate has been qua the judgement recently delivered by a division bench of the Supreme Court, authored by Hon'ble Justice M.R. Shah. In the judgment titled Union of India v. Ashish Agarwal[1], in a batch of 24 Appeals, the Supreme Court modified/reversed the 6 High Courts' ruling wherein all the High Courts had quashed the reassessment notices issued by the government/revenue department under Section 148 holding them to be illegal/ultra vires/bad in law in view of the...
GST Council Recommendations Not Binding On Parliament & State Legislatures : Supreme Court
In a significant verdict, the Supreme Court on Thursday held that the recommendations of the GST council are not binding on the Parliament and State Legislatures.Though some of the recommendations of the GST council are binding on the Union and State Governments in relation to tax rate and taxable goods etc., by virtue of the provisions of the GST Act, it cannot mean that all recommendations...
Loss On Trading In Derivatives Of Securities Not A Speculative Loss, Can Be Set Off Against Business Income: Bombay High Court
The Bombay High Court has ruled that transactions in respect of trading in derivatives carried out in a recognized stock exchange are excluded from the definition of "speculation transaction" under the Income Tax Act, 1961. The Bench, consisting of Justices R.D. Dhanuka and S.G. Mehare, held that an assessee is thus entitled to claim set off of the loss suffered by it in the...
Assessment Can't Be Reopened On Mere Change Of Opinion Of AO: Bombay High Court
The Bombay High Court, while quashing the reassessment notice, held that the assessment could not be reopened on a mere change of opinion of the Assessing Officer (AO). The division bench of Justice K.R. Shriram and Justice N.R. Borkar observed that the reopening of assessment was merely on the basis of a change of opinion of the Assessing Officer from that held earlier during...
Delhi High Court Directs Designated Committee To Manually Process Payments Of Assessee Under SVLDR Scheme
The Delhi High Court bench of Justice Rajiv Shakdher and Justice Poonam A. Bamba has directed the designated committee to manually process payments of an assessee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The petitioner/assessee, while taking recourse to the SVLDRS to avail the benefits provided, had attempted to remit the "amount...
No Further Verification Required If Cash Deposit Is Up To Rs 2.5 Lakhs During The Demonetization: ITAT Delhi
The Delhi Bench of ITAT, consisting of judicial member Chandra Mohan Garg, has held that no further verification is required in the case of an individual earning income from salary, who has deposited an amount of up to Rs 2,50,000 during the demonetization period. The assessee Aniket Agarwal filed his income tax return, which was selected for limited scrutiny to verify the cash...
AO & PCIT Failed To Consider Balance Of Convenience And Irreparable Injury While Deciding The Stay Application: Delhi High Court
The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has held that neither the Assessing Officer nor the Principal Commissioners of Income Tax (PCIT) have considered the three basic principles, i.e., the prima facie case, balance of convenience, and irreparable injury, while deciding the stay application. The petitioner company/assessee filed an application...
Government Notifies Relaxation In Wheat Export Notification
The government has announced some relaxation to its order dated 13th May issued by Directorate General of Foreign Trade (DGFT) on restricting wheat exports. The government decided that wherever wheat consignments have been handed over to Customs for examination and have been registered into their systems on or prior to 13.5.2022, such consignments would be allowed to...
Galvanised Solar Structure Manufactured And Cleared For Initial Setting Up Of Solar Power Plants Exempted From Excise Duty: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that galvanised solar structures manufactured and cleared for the initial setting up of solar power plants are exempted from excise duty.During an audit, the department noticed that the clearance of galvanised solar structures (module mounting structures and hot dip galvanised structures)...
Rajasthan High Court Refuses To Grant Priority of Government Dues Over Debts Due To Secured Creditors
The Rajasthan High Court bench of Justice Ashok Kumar Gaur has refused to grant the priority of the government dues over the debts due to secured creditors.The petitioner/department has pleaded that the company M/s. Punsumi India Ltd. is under liquidation and the Officer Liquidator (OL) had invited claims with regard to outstanding dues against the company. The department had sent its...
Applicability of GST On Royalty On Mining: Allahabad High Court Directs Assessee To Reply To SCN
The Allahabad High Court bench of Justice Devendra Kumar Upadhyaya and Justice Brij Raj Singh, while dealing with the issue of the applicability of GST on royalties on mining, has directed the assessee to reply to the show cause notice issued by the department.The petitioner/assessee is in the business of mining sand from the sites licenced to them by the government and is also engaged...