What Is The Difference Between 'Non-Service Of Notice' & 'Lack Of Knowledge Of Service Of Notice'? Kerala High Court Explains

The Kerala High Court has explained the difference between 'non-service of notice' and 'not noticing or lack of knowledge of service of notice'. “Lack of knowledge of service of notice can amount to a violation of principles of natural justice only in certain limited circumstances. When lack of knowledge is attributable to the default of the sender of the notice, then 'not...

Transactions Between Holding & Subsidiary For Issuance Of Shares Not Covered U/S 56(2)(viib) Of IT Act: Delhi ITAT Quashes Revision Against OYO

The Delhi ITAT held that the transactions between holding and its wholly owned subsidiary entity towards issuance of shares are not covered within ambit of Sec 56(2)(viib) in absence of any benefit arising from such transactions. Referring to the Coordinate Benchs, the Bench of Pradip Kumar Kedia (Accountant Member) and Yogesh Kumar US (Judicial Member) reiterated that Sec...

S.153C Income Tax Act | Two-Tier Satisfaction Of Assessing Officers Of Both Searched & Non-Searched Entity Needed Even Prior To 2015 Amendment: Delhi HC

The Delhi High Court has held that even though Section 153C of the Income Tax Act, 1961 did not in its original form prescribe two-tier satisfaction of Assessing Officers of both the searched and non-searched entity for initiating reassessment, the same cannot be deemed absent.Section 153C allows the Revenue department to proceed against a party other than the person who is being searched,...

[S.292B Income Tax Act] Inadvertent Mistakes In Reassessment Can Be Saved But Assessment Order Overlooking Apparent Error Cannot: Delhi HC

The Delhi High Court has made it clear that Section 292B of the Income Tax Act, 1961 cannot be used to save an assessment order passed by overlooking errors apparent on face of the record.The provision provides that no notice or assessment or any proceedings can be deemed to be invalid merely for the reason of any mistake, defect or omission in such notice, assessment or other...

Enterprise Manufacturing Specified Items In Designated States Can Seek Tax Deduction U/S 80IC Income Tax Act Without Agreement With Govt: Delhi HC

The Delhi High Court has held that Section 80IC of the Income Tax Act, 1961, which contemplates tax incentives for enterprises operating in specific industries and locations in India, does not require such enterprises to enter into an agreement with the Government.In doing so, a division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar distinguished the provision from...

Supreme Court Upholds Constitutionality Of GST Act Provisions On Arrest & Summons

The Court held that the power to arrest and summon was incidental to the power to levy and collect tax.

Reimbursements Received By Assessee Can't Be Considered As 'Consideration' Towards Any Taxable Service: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the reimbursements received by the assessee cannot be considered as 'consideration' towards any taxable service. The Bench of Ashok Jindal (President) and K. Anpazhakan (Technical) has observed that, “the service rendered by the appellant is not for any other company but to...

'Customs Officers' Are Not 'Police Officers', Must Satisfy Higher Threshold Of 'Reasons To Believe' Before Arrest : Supreme Court

Dealing with a challenge to penal provisions of the Customs Act, the Supreme Court today observed that 'customs officers' are not 'police officers' and that they must satisfy a higher threshold of "reasons to believe" before arresting an accused.A bench of CJI Sanjiv Khanna and Justices MM Sundresh, Bela M Trivedi made the observation while delivering verdict in a batch of 279...

Customs Department's Baggage Rules Have 'Limited Application' On Foreign Tourists: Delhi HC Orders Release Of Russian National's Gold Chain

The Delhi High Court has held that the Baggage Rules 2016 which are framed under the Customs Act 1962 to ensure that every passenger entering India passes through a Customs check has limited application on foreign tourists coming to India.While holding so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the release of a Russian national's gold chain, valued at about...

Department Retaining Balance Amount After Tax Demand Is Reduced Violates Article 14 & Article 265 Of Constitution: Jharkhand High Court

The Jharkhand High Court stated that retaining balance amount by department after the tax demand is reduced is violative of Article 14 & Article 265 of the constitution. The Division Bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan observed that the department cannot retain the amounts deposited by the assessee pursuant to condition imposed by...

Arrest Under GST Act Cannot Be Made Merely To Investigate If Cognizable & Non-Bailable Offence Has Been Committed : Supreme Court

An order of arrest must be passed recording reasons to believe that the accused has committed a cognizable and non-bailable offence.

ITAT Cannot Perpetuate Ex-Parte Order: Bombay High Court Orders Tribunal To Grant Opportunity Of Hearing To Assessee Before Proceeding On Merits

The Bombay High Court has disapproved of the Income Tax Appellate Tribunal dismissing the appeal against an ex-parte order passed against a former employee of Pfizer Healthcare without providing him an opportunity of hearing.Stating that ITAT cannot “perpetuate” the ex-parte order, a division bench of Justices GS Kulkarni and Advait M. Sethna directed the Tribunal to hear the employee...