Sitting Judge Moves Allahabad HC Against Denial of Exemption On Statutory Allowances Under New Income Tax Regime

The court called for instructions from the State on the plea, observing that the interim relief sought was in the nature of final relief.

Kerala High Court Directs SBI To Pay Interest On FD Subject To Auto-Renewal Under Its Own Circular

The Kerala High Court has recently directed the State Bank of India to pay interest on a firm's fixed deposit for the period between its maturity and May 12, 2013. The court held that SBI's own circular required the deposit to be automatically renewed in the absence of any contrary instructions.Justice M.A. Abdul Hakhim therefore, observed, "Ext.P18 Circular of the Respondent No.1 itself provides that on maturity, the Term Deposit is to be automatically renewed for the same period at the rate of...

Redemption Fine Under Central Excise Law Does Not Bar Sabka Vishwas Scheme Relief: Rajasthan High Court

The Rajasthan High Court has held that taxpayers whose goods were confiscated under the Central Excise law and who were directed to pay a redemption fine in lieu of confiscation are not excluded from the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.It ruled that they cannot be treated as ineligible to file declarations under the Scheme merely because they were liable to pay a redemption fine.A division bench of Justice Arun Monga and Justice Maneesh Sharma passed the ruling while...

Revised Return Filed After Income Tax Inspection Cannot Shield Dealer From Sales Tax Penalty: Madras High Court

The Madras High Court has upheld Income tax additions and penalty against a dealer, holding that a revised return filed after an Income Tax inspection cannot protect a taxpayer from the consequences of suppressed turnover.It observed that a revised return filed after detection does not automatically establish bona fide conduct or protect a taxpayer from penalty."The revised return filed subsequent to Income Tax inspection cannot be a protection blanket for the tax evaders. Even if the Trader...

Madras High Court Directs GST Authorities To Adjust Tax Paid Under Wrong Head Instead Of Seeking Fresh Payment

The Madras High Court has directed the GST authorities to adjust tax already paid under the wrong tax head instead of requiring the taxpayer to make a fresh payment before claiming a refund. It held that a taxpayer who has discharged the entire tax liability within time cannot be penalised merely because the amount was inadvertently deposited under the wrong GST head.Justice Senthilkumar Ramamoorthy disposed of the writ petition filed by SYA Homes and set aside the rectification order to the...

Karnataka High Court Upholds Deletion Of Tax Addition On Advances Received By Businessman Procuring Land

The Karnataka High Court has upheld the deletion of a ₹21.11 crore tax addition made against a Bengaluru-based businessman engaged in identifying and procuring land for real estate projects. The court held that advances received in the course of that business cannot be taxed merely because they remained outstanding for several years.The court observed that the mere passage of time does not amount to forfeiture, and such advances cannot be treated as taxable income in the absence of material...

Telangana High Court Upholds Capital Gains Tax Exemption Despite Delay In Villa Registration

The Telangana High Court has held that a taxpayer who invested capital gains in a residential villa under a joint development agreement cannot be denied tax exemption merely because the developer delayed construction and execution of the sale deed. The court observed that delays beyond the assessee's control cannot defeat the benefit intended under the law. A Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda allowed the appeal filed by non-resident Indian Sudhakar...

Madras High Court Upholds Sales Tax Demand Against Ford India Over Breach of Exemption Conditions

The Madras High Court has upheld the levy of Tamil Nadu sales tax on Ford India, holding that the company breached the conditions of a state government notification granting a sales tax exemption on purchases of goods used for manufacturing passenger cars after availing the benefit by furnishing declarations.The dispute relates to the 2001-02 assessment yearThe exemption under G.O. Ms. No. 381 covered purchases of goods used in the manufacture, assembling, packing and labelling of passenger cars...

Gauhati High Court Rejects Hawkins Cookers' Plea To Compute VAT On Reduced Sale Price

The Gauhati High Court has held that Hawkins Cookers Ltd. must pay the balance 8.5% Value Added Tax (VAT) on the original sale price of pressure cookers after an earlier ruling held that the products attracted VAT at 12.5% before 2010 and not 4% as claimed by the company. Dismissing six revision petitions, the court rejected Hawkins' contention that the original sale consideration should be treated as inclusive of 12.5% VAT while computing the additional tax liabilityThe controversy was...

Himachal Pradesh High Court Refuses Interim Relief In SML Patent Infringement Suit Over Territorial Jurisdiction

The Himachal Pradesh High Court has recently refused interim relief to agricultural inputs company SML Limited in its patent infringement suit against Happy Agro Chemicals and others over the agricultural micronutrient product "SELZIC". The court held that the company failed to establish a prima facie case on territorial jurisdiction.Justice Sandeep Sharma held that the issue of territorial jurisdiction had to be decided before examining the allegations of patent infringement.SML holds an Indian...

Calcutta High Court Upholds GST Order Uploaded A Day After Limitation Expired

The Calcutta High Court has upheld a GST adjudication order even though its summary was uploaded on the common portal a day after the limitation period expired. The court held that the statutory limitation applies to the issuance of the order and not to its subsequent service. Justice Raja Basu Chowdhury dismissed a writ petition filed by M. M. Motors and another challenging an adjudication order for the 2018–19 tax period. The petitioners argued that the adjudication order could not be treated...

Arbitrator Can Pronounce Award Once Matter Is Reserved Despite Counsel's Withdrawal: Madras High Court

The Madras High Court has held that a sole arbitrator can proceed to pronounce an arbitral award even if the respondents' counsel does not produce documents he had undertaken to file and later withdraws his vakalat, provided the matter has already been reserved for passing of the award. The court held that no further orders were required in the application and closed it. Justice K. Kumaresh Babu observed, "This Court is of the view that, when the matter had been reserved for passing of the...