Tax
Cess Levied On Cinema Tickets U/S 3C Of Kerala Local Authorities Entertainment Tax Act Is Constitutionally Valid: Kerala High Court
The Kerala High Court has stated that cess levied on cinema tickets under Section 3C Of Kerala Local Authorities Entertainment Tax Act is constitutionally Valid. “Cess can also mean a tax levied for a special purpose or as an increment to the existing tax and, in given circumstances, a fee. In the case at hand, entertainment tax is already levied under the Act of 1961 and the...
TPO's Role Is To Determine ALP Of International Transactions, Can't Act As AO To Probe Legitimacy Of Such Transactions: Delhi High Court
The Delhi High Court has made it clear that the role of a Transfer Pricing Officer is to conduct a transfer pricing analysis and determine the arm's length price of an assessee's international transaction and the TPO cannot act as an Assessing Officer to probe the legitimacy of such transactions.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed, “It is necessary...
ALP Not Concerned With Commercial Expediency Of International Transaction, Assessee Reporting Loss Not Grounds To Deem ALP Nil: Delhi HC
The Delhi High Court has held that a Transfer Pricing Officer cannot compute the arm's length price of an assessee's international transactions as nil, merely because despite the services availed from such transactions, the assessee incurred a loss in business.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed that the TPO cannot weigh the ALP on the basis of...
Delhi High Court Orders Customs To Release Traveller's Gold Worth ₹20 Lakh, Iphone, Playstation & More Over Failure To Issue SCN
The Delhi High Court recently ordered the Customs authorities to release a traveller's gold worth over ₹14 lakh and other branded articles like iPhone, PlayStation, etc. over the authority's failure to issue him a show cause notice.Section 124 of the Customs Act, 1962 contemplates issuance of a show cause notice before confiscation of goods.The Petitioner had landed at Delhi...
GST Registration Cannot Be Refused Merely Because Assessee Belongs To Another State: Andhra Pradesh High Court
The Andhra Pradesh High Court stated that GST registration can't be refused merely because the assessee belongs to another State. “Though the apprehension of the respondents may not be misplaced, it would not mean that registration can be refused on a ground, which is not available under the Statute or the Rules. There do not appear to be any restriction for persons outside the...
Income Tax Act | No Penalty Under S.271AAA If Undisclosed Income Is Admitted, Explained & Tax Paid Even With Delay : Supreme Court
The Supreme Court, while determining a tax matter, observed that the undisclosed income, under Section 271AAA(1) of the Income Tax Act, surrendered by the assessee during the search, is not sufficient to levy the penalty. Essentially, the said provision talks about penalty where a search has been initiated. The explanation reads as: “(a) “Undisclosed income” means—...
High Court Within Whose Jurisdiction AO Passes Assessment Order Has Jurisdiction To Entertain Appeal U/S 260A Income Tax Act: Delhi HC
The Delhi High Court has reiterated that only such High Court within whose jurisdiction the Assessing Officer passing an impugned assessment order is situated would have the jurisdiction to entertain an appeal under Section 260A of the Income Tax Act, 1961.The Section makes provision for an appeal to the High Court from an order passed in appeal by the Appellate Tribunal.In the case at hand,...
Transfer Pricing | Resolution Under Mutual Agreement Procedure Is By Consensus, Cannot Be Imposed Upon Assessee: Delhi HC
The Delhi High Court has made it clear that a dispute with respect to arm's length price in a transfer pricing can be resolved under Mutual Agreement Procedure (MAP) only by consent and negotiations between contracting parties.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed that such a resolution cannot be imposed in a contested case, where there is no...
'Every Statute Prima Facie Prospective Unless Stated Otherwise' : Supreme Court Says 2002 Amendment To CST Act Won't Affect Accrued Rights
The Supreme Court yesterday (on February 12) held that though after the amendment of Section 8(5) of the Central Sales Tax Act, the State Government's right to grant exemption from tax has ceased to exist, the amendment is prospective. Thus, it would not apply to the cases where an absolute exemption has already been granted.The amended Act nowhere stipulates that rights previously accrued...
New Income Tax Bill 2025: Concept Of "Tax Year" To Be Introduced Instead Of "Assessment Year", "Financial Year" To Remain Unchanged
The new Income Tax bill is set to introduce the concept of 'Tax Year'. This will replace the current concept of assessment year (or previous year) from the Income Tax Act. The "tax year" has been defined as follows:3. (1) For the purposes of this Act, “tax year” means the twelve months period of the financial year commencing on the 1st April.(2) In the case of a business or profession...
Andhra Pradesh VAT Act | Pleadings On Suppression Of Material Facts, Wilful Evasion Of Tax Are Sine Qua Non For Invoking S.21(5): High Court
The Andhra Pradesh High Court has held that pleadings relating to suppression of material facts, in an assessment order are the sine qua non for invoking section 21(5); by way of which limitation for filing an assessment order is extended to 6 years from 4 years. "There is nowhere any mention of suppression of facts, much less, wilful suppression of facts, resulting in wilful evasion...