Tax
Income Alleged To Have Escaped Assessment In Different Years Can't Be Consolidated To Meet ₹50 Lakh Threshold U/S 149 Of Income Tax Act: Delhi HC
The Delhi High Court has held that an Assessing Officer cannot add income that allegedly escaped assessment in different previous years, to meet the threshold of ₹50 lakh prescribed under Section 149(1)(b) of the Income Tax Act 1961 for initiating reassessment action after lapse of three years.The provision bars issuance of reassessment notice under section 148 if three years have elapsed...
Delhi HC Expresses Concern Over “Harrowing Experience” Of Widow Seeking Refund Of Balance In Electronic Cash Ledger Of Deceased Husband's Firm
The Delhi High Court recently recorded the “harrowing experience” that a widow had to go through for obtaining a refund from the GST Department.The GST registration of the firm owned by her now deceased husband was cancelled in view of his death. However, his widow sought a refund of ₹10,45,793/- balance in the electronic cash ledger of the firm.The said application was rejected by...
Customs' Decision To Prefer Revision Plea Against Order To Release Goods Not Grounds To Withhold Them: Delhi High Court
The Delhi High Court has held that the Customs Department cannot sit over an appellate body's order directing it to release the goods of an assessee, merely on the ground that the Department seeks to prefer a revision against such order.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta held, “once the Commissioner of Customs (Appeals) has also allowed redemption,...
Delhi HC Sets Aside Reassessment Over Cash Deposits During Demonetisation, Says Order U/S 148A(d) Income Tax Act Transgressed Notice U/S 148A(b)
The Delhi High Court has set aside the reassessment action initiated against a partnership firm under Section 148A(d) of the Income Tax Act, 1961 over cash deposits made by it during demonetisation, stating that this ground was not mentioned in the notice issued to the firm under Section 148A(b).Section 148A(b) contemplates issuance of a notice asking assessee to show cause why...
CBIC Introduces Goods & Services Tax (GST) Appellate Tribunal (Procedure) Rules 2025, Mandates All Appeals To Be Uploaded On GSTAT Portal
The Central Board of Indirect Taxes and Customs (CBIC) through Notification 256(E), under the Union Ministry of Finance, has officially released a comprehensive set of rules outlining the functioning of the Goods and Services Tax (GST) Appellate Tribunal. As per the notification the GST Appellate Tribunal (Procedure) Rules, 2025 took effect on 24th April, 2025. The rules have...
Sikh People Usually Wear 'Kada', Personal Effect: Delhi High Court Sets Aside Detention By Customs
Observing that Sikh persons usually wear kada as part of their religious practice, the Delhi High Court set aside the detention of a Dubai resident's gold kada by the Customs Department.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “Clearly, a perusal of the photographs and the fact that it is one Kada which is usually worn by persons like the Petitioner...
Assessee's Business Cannot Be Prejudiced By Complete Attachment Of Bank Accounts Pending Adjudication By GST Authority: Delhi HC
The Delhi High Court has asked the GST authority not to prejudice the business of an assessee, involved in manufacturing of mild steel products, by attaching its complete bank account pending adjudication of ₹15.09 crores tax evasion proceedings.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta noted that one year had elapsed since the provisional attachment order...
GST Demand Of Over ₹10 Crores Raised Without Considering Assessee's Stand: Delhi High Court Orders Fresh Adjudication
The Delhi High Court has asked the Adjudicating Authority under Central Goods and Service Tax Act 2017 to undertake fresh adjudication of the show cause notice issued to an assessee, raising demand of more than ₹10 crores.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta did so after noting that such a “substantial” demand was made without even considering...
Restriction On Levy Of Differential Rates Under Article 304 Of Constitution Doesn't Apply To Goods Imported From Outside India: Madras HC
The Madras High Court stated that Article 304 of the Constitution applies only to goods imported from other states or union territories and not to goods imported from outside India.The Division Bench consists of Chief Justice K.R. Shriram and Justice Mohammed Shaffiq looked into the case of State of Kerala and others v. Fr. William Fernandez and other, (2021) 11 SCC 705 and observed that...
Finance Act, 1994 | Mere Non-Registration Under Service Tax Isn't Fraud Or Suppression To Justify 5 Year Limitation: Patna High Court
The Patna High Court has recently quashed a service tax demand raised against a government contractor, ruling that merely not registering for service tax could not be equated with fraud or suppression of facts warranting the application of the five-year extended limitation period under the Finance Act, 1994.The Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra...
Whether Roof-Mounted Air Conditioners For Trains Attract 18% GST Or 28% GST? Delhi High Court To Decide
The Delhi High Court will soon decide the GST rate applicable to roof-mounted air conditioners of specific designs manufactured for the railways.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta are seized with a petition filed by railways and aerospace technology company StesaLIT Limited, challenging a Circular issued by the Union Finance Ministry in 2024, stipulating...
Delhi HC Sets Aside ₹12 Crore GST Demand On Exide Industries But Imposes ₹1 Lakh Cost For Laxity In Responding To Hearing Notices
The Delhi High Court has set aside a GST demand of over ₹12 crores raised on storage battery manufacturer Exide Industries, for wrongful availment of Input Tax Credit.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta however imposed a cost of ₹1 lakh on the Indian multinational for “laxity” in responding to the repeated hearing notices issued by the...