Tax
Assessees Claim For ITC Cannot Be Denied For Being Disadvantageous To State Exchequer: Karnataka HC Clarifies Principles On Input Tax Credit Claims
The Karnataka High Court while laying down vital guidelines on Input Tax Credit stated that if the Assessee during the course of reassessment proceedings makes a claim for Input Tax Credit, the same cannot be disallowed only on the ground that the claim of the Assessee is disadvantageous to the State Exchequer. The Division Bench of Justices Krishna S Dixit and G....
Expansion Of Definition Of 'Sikkimese' In S.10(26AAA) Of Income Tax Act Doesn't Affect Rights Of Indigenous People: Sikkim High Court
The Sikkim High Court has upheld the constitutional validity of the definition 'Sikkimese' under the Income Tax Act, which was slightly expanded by way of an amendment in terms of the Finance Act, 2023.A division bench of Chief Justice Biswanath Somadder and Justice Meenakshi Madan Rai upheld the vires of Explanation (v) contained under clause (26AAA) of section 10 of the Income Tax Act,...
Tax Weekly Round-Up: March 10 - March 16, 2025
HIGH COURTSAndhra Pradesh HCNotice Under Rule 142(1)(A) Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High CourtCase Title: Sri Durga Granites v. The Deputy Assistant Commissioner and OthersCase Number: W.P.Nos.3480 & 6504 of 2020The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show...
Customs Dept Repeatedly Told To Serve Notices, Orders On Assessee Via Email: Delhi High Court Seeks Compliance
The Delhi High Court has asked the Customs Department to scrupulously comply with its “repeated” direction to serve notices, orders on an assessee under the Customs Act, 1962 via email.Traditionally, correspondence related to any violation of the Act is made via post. However, with advent of technology and to avoid delays, Court had in Bonanza Enterprises vs. The Assistant Commissioner...
Burden Is On Assessee To Show Entitlement For Capital Gains Tax Exemption On Sale Of Agricultural Land: Kerala High Court
The Kerala High Court stated that burden of proof is on assessee to prove that he is entitled to capital gains tax exemption on sale of agricultural land. The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “it is significant in this regard to observe that the claim of the assessee, being for exemption from the levy of income tax as applicable...
Proceedings U/S 129 Of GST Act Are Summary Proceedings, Burden To Prove Actual Movement Of Goods Lies On Assesee: Allahabad High Court
The Allahabad High Court has held that proceedings under section 129 of the GST Act are summary proceedings where the burden to prove the actual physical movement of goods is on the assesee transporting the goods. It further held that authorities have the power to seize goods on grounds of undervaluation.Justice Piyush Agrawal held, “Under the taxing statute, in the original proceeding or...
Fair Market Value Of Shares Determined By Statutory Methods Can't Be Rejected By Income Tax Department: Karnataka High Court
The Karnataka High Court stated that fair market value of shares determined by statutory methods can't be rejected by the income tax department. The Division Bench of Justices Krishna S Dixit and Ramachandra D. Huddar was addressing a case where the revenue has challenged the order passed by the Tribunal where the Tribunal held that the valuation report on DCF Method produced...
Delhi High Court Orders Customs Department To Release Arab Minor's Jewellery Which She Wore Since Childhood
The Delhi High Court has ordered the Customs Department to release the personal jewellery of a minor from UAE who had come to India to attend a relative's wedding.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta passed the direction after perusing a photograph, depicting that she used to wear the said pieces of jewelry since childhood. It observed,“This Court has...
Error By Supplier In Mentioning GSTN Of Trader Can't Form Basis To Reject ITC On Purchases: Delhi High Court
The Delhi High Court recently came to the rescue of a Company engaged in the sale of various pharmaceutical products and medical devices, holding that it could not be denied Input Tax Credit on purchases merely because its supplier had mentioned a wrong GST number on the invoices.In the facts of the case, a division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“The...
No Service Tax On Services By Organizer In Respect Of Business Exhibition Held Outside India: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on services by organizer in respect of business exhibition held outside India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “………the Business Exhibition for which the appellant received services from...
Jharkhand HC Directs Tax Authorities To Follow Due Procedure While Passing Orders; Imposes Costs For Passing Order Violating Natural Justice
The Jharkhand High Court directed the state tax authorities to follow due procedure while passing adjudication orders. The Division Bench of Chief Justice Ramachandra Rao and Justice Deepak Roshan stated that “despite directions issued by the Court, it appears that State Tax authorities are continuing to conduct adjudication proceedings in utter disregard to the mandatory provisions...
Notice Under Rule 142(1)(A) Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High Court
The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show cause notice. The Division Bench of Justices R. Raghunandan Rao and K Manmadha Rao was addressing a case where notice under Rule-142(1)(A) of the CGST Rules was not issued to the assessees/petitioners, prior to the Orders of assessment. The assessees...