Supreme Court Quarterly Digest 2022 - TAX (Jan - Mar)

Constitution of India, 1950 - Levy of Excise Duty - State Legislature has no authority to levy duty or tax on alcohol, which is not for human consumption as that could be levied only by the Centre - State only empowered to levy excise duty on alcoholic liquor for human consumption. State of Orissa v. Utkal Distilleries Ltd; 2022 LiveLaw (SC) 240 Constitution of India, 1950; Article 226 - Appeal against Bombay HC judgments dismissing writ petitions reopening of the assessment/re-assessment proceedings under Section 148 of the Income Tax Act - Allowed - Orders are bereft of reasoning as diverse grounds were urged/raised by the parties which ought to have been examined by the High Court in the first place and a clear finding was required to be recorded upon analysing the relevant documents - Remanded. Vishal Ashwin Patel v. Assistant Commissioner, 2022 LiveLaw (SC) 322 Constitution of India, 1950; Entry 34,62 List II & Entry 40 of List I of Seventh Schedule - 'Lotteries' is a species of gambling activity and hence within the ambit of 'betting and gambling' as appearing in Entry 34 List II - It is only lotteries organised by the Government of India or the Government of State in terms of Entry 40 of List I which are excluded from Entry 34 of List II - If lotteries are conducted by private parties or by instrumentalities or agencies authorized, by Government of India or the Government of State, it would come within the scope and ambit of Entry 34 of List II - The State Legislatures have the power to tax lotteries under Entry 62 of List II. (Para 124) State of Karnataka v. State of Meghalaya, 2022 LiveLaw (SC) 309 Doctrine of promissory estoppel - In taxing matters, the doctrine of promissory estoppel as such is not applicable and the Revenue can take a position different from its earlier stand in a case with established distinguishing features. (Para 20.3) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 General Sales Tax Act, 1963 (Kerala) - The surcharge on sales tax levied by the said Act is nothing but an increase of the basic sales tax levied under Section 5(1) of the KGST Act, as such the surcharge is nothing but a sales tax- A surcharge on a tax is nothing but the enhancement of the tax. (Para 14.4) Kerala State Beverages Manufacturing & Marketing Corporation Ltd. v. Assistant Commissioner of Income Tax Circle 1(1), 2022 LiveLaw (SC) 4 Goods and Services Tax - Non-extension of e-way bill would not automatically amount to evasion of tax, especially when the non-delivery of goods within the validity period of the e-way bill was due to external factors, like, traffic blockage. Asst. Commissioner v. Satyam Shivam Papers, 2022 LiveLaw (SC) 87 Income Tax Act, 1961 - Appeal against Gujarat High Court judgment extending the immunity under the "Income Declaration Scheme" (IDS) to an assessee who was not the declarant under the scheme - Allowed - The High Court fell into error, in holding that the sequitur to a declaration under the IDS can lead to immunity (from taxation) in the hands of a non-declarant. Deputy Commissioner of Income Tax v. MR Shah Logistics, 2022 LiveLaw (SC) 323 Income Tax Act, 1961 - Kerala General Sales Tax Act, 1963 - Surcharge or tax were never intended to be included in the net of amended Section 40(a)(iib)(A) or 40(a)(iib)(B) of the Incometax Act, 1961. (Para 14.5) Kerala State Beverages Manufacturing & Marketing Corporation Ltd. v. Assistant Commissioner of Income Tax Circle 1(1), 2022 LiveLaw (SC) 4 Income Tax Act, 1961 - Section 37(1) - Explanation 1 contains within its ambit all such activities which are illegal/prohibited by law and/or punishable. (Para 17) Apex Laboratories Pvt. Ltd. v. Deputy Commissioner, 2022 LiveLaw (SC) 195 Income Tax Act, 1961 - Section 37(1) - Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 - Pharmaceutical companies' gifting freebies to doctors, etc. is clearly "prohibited by law", and not allowed to be claimed as a deduction under Section 37(1) - When acceptance of freebies is punishable by the MCI, pharmaceutical companies cannot be granted the tax benefit for providing such freebies, and thereby (actively and with full knowledge) enabling the commission of the act which attracts such opprobrium. (Para 33, 22) Apex Laboratories Pvt. Ltd. v. Deputy Commissioner, 2022 LiveLaw (SC) 195 Income Tax Act, 1961 - Section 37(1) - Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 - Denial of the tax benefit cannot be construed as penalizing the assessee pharmaceutical company. Only its participation in what is plainly an action prohibited by law, precludes the assessee from claiming it as a deductible expenditure. (Para 27) Apex Laboratories Pvt. Ltd. v. Deputy Commissioner, 2022 LiveLaw (SC) 195 Income Tax Act, 1961 - The 'fee' or 'charge' as mentioned in Section 40(a)(iib) is clear...

Supreme Court Quarterly Digest 2022 - TAX (Jan - Mar)

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