NOIDA Authorities Deposited Party's Tax Under Wrong Head: Allahabad HC Directs Compensation To Assessee For Penalty Imposed U/S 73 Of GST Act

Recently, the Allahabad High Court has directed the New Okhla Industrial Development Authority (NOIDA) to compensate the assesee Rs. Rs.19,22,778/- which was imposed on the assesee as tax and penalty in proceedings under Section 73 of the Goods and Service Tax Act, 2017. Petitioner rented out his property in Gautam Budh Nagar(Noida). The rent received from the property was taxable under the GST Act. Petitioner duly deposited the one-time lease rent of Rs. 97,18,500/- and the tax of...

Proceedings U/S 129 Of GST Act Are Summary Proceedings, Burden To Prove Actual Movement Of Goods Lies On Assesee: Allahabad High Court

The Allahabad High Court has held that proceedings under section 129 of the GST Act are summary proceedings where the burden to prove the actual physical movement of goods is on the assesee transporting the goods. It further held that authorities have the power to seize goods on grounds of undervaluation.Justice Piyush Agrawal held, “Under the taxing statute, in the original proceeding or in the summary proceeding, the primary burden is to be discharged by the assessee by bringing on record the...

Goods Not Accompanied By E-Way Bill, Without Matching Description Shows Intention To Evade Tax: Allahabad High Court

The Allahabad High Court has held that the intention to evade tax is established by the fact that the goods in transit were not accompanied by e-way bill and the goods taxable at 18% were taxed only at 5%. The Court held that after 2018, it was mandatory for the assesee to download e-way bill with goods in transit. “It is mandatory on the part of the seller to download the e-way bill once the goods are put in transit. Subsequent downloading of e-way bill would not absolve the...

[Noida Sports City Scam] Allahabad HC Lays Down Guidelines Regarding Rights Of Other Members Of Consortium When One Member Goes Into Insolvency

While directing CBI inquiry against officials of New Okhla Development Authority and various allottes/ builder involved in development of the Sporty City project in Noida, the Allahabad High Court laid down guidelines regarding the rights of other members of consortium, when one member goes into insolvency as the same is not provided in the Insolvency and Bankruptcy Code, 2016.Holding that the IBC is not indented to hamper projects of national importance, the bench of Justice Mahesh Chandra...

Section 36 Of Arbitration Act As Amended Applies To Pre-Amendment S.34 Applications: Allahabad High Court Reiterates

The Allahabad High Court bench of Justice Piyush Agrawal, placing reliance upon the judgment of the Supreme Court in Board of Control for Cricket in India vs. Kochi Cricket Private Limited & Others (2018), held that the amended Section 36 of the Arbitration and Conciliation Act, 1996 applies prospectively to court proceedings initiated on or after the date of commencement of the Amendment Act. Brief Facts The respondent was awarded a contract, which could not be completed...

No Violation Of Natural Justice Principles If Accused Not Given Advance Copy Of S. 50 PMLA Application: Allahabad HC

The Allahabad High Court has recently observed that not providing an advanced copy of the application filed by the Director of Enforcement (ED) under Section 50 of the Prevention of Money Laundering Act, 2002, to the accused does not violate the principles of natural justice, as the accused has no right to oppose it. For context, under Section 50 of the PMLA, an ED officer is authorised to summon a person and request information from him regarding the case under the 2002 Act. It...

[S.16 Arbitration Act] Jurisdiction Of Tribunal Cannot Be Challenged After Submission Of Defence: Allahabad High Court

The Allahabad High Court has held that as per Section 16(2) of the Arbitration and Conciliation Act, 1996, the jurisdiction of an arbitral tribunal cannot be challenged after submission of defence and that the arbitral tribunal is empowered to adjudicate on its own jurisdiction.The bench of Justice Siddhartha Varma and Dr. Justice Yogendra Kumar Srivastava held “Section 16 of the Arbitration and Conciliation Act, 1996 provides for challenge to the jurisdictional authority of the Arbitral...

Allahabad High Court Annual Tax Digest 2024

NOMINAL INDEX M/S Mgs Palace v. State Of U.P. And 4 Others 2024 LiveLaw (AB) 4 M/S. Hindustan Herbal Cosmetics vs. State Of U.P. And 2 Others 2024 LiveLaw (AB) 9 M/S Eastern Machine Bricks And Tiles Industries vs. State Of U.P. And Others 2024 LiveLaw (AB) 14 Akbar Ali Transport Services vs. State of U.P. and Another 2024 LiveLaw (AB) 25 M/S Roli Enterprises vs. State Of U.P. And 2 Others 2024 LiveLaw (AB) 31 The Commissioner, Commercial Tax vS. M/S Peethambra Granites...

[Income Tax] Allahabad HC To Examine Whether Proceedings U/S 148A(b) Initiated Prior To 01.09.2024 Would Be Saved After Enforcement Of The Finance (No.2) Act, 2024

The Lucknow Bench of the Allahabad High Court has sought state response on the question of maintainability of proceedings under Section 148A(b) of the Income Tax Act initiated prior to 01.09.2024, if at all, would be saved after enforcement of the Finance (No.2) Act, 2024 w.e.f. 01.09.2024 especially in view of sub-Section- (4) of Section 152 of the Income Tax Act, 1961 which has been inserted by the said Finance (No.2) Act, 2024. Section 148A has been amended by the Act of 2024....

[GST] Decision-Making Procedure Adopted By Authority De Hors Provisions Of Act/Rules, Is Liable To Be Rendered As Flawed: Allahabad High Court

While directing that the order under Section 73 of the Goods and Service Tax Act, 2017 uploaded in the “Additional Notices and Tabs” on the GST portal be treated as the show cause notice, the Allahabad High Court observed that “If in a decision making procedure adopted by the authority is de hors the provisions of the act or rules framed thereunder, it is liable to be rendered as flawed one.” Petitioner challenged the order under Section 73 of the GST Act on grounds of violation...

Assessment Pending Prior To Resolution Cannot Be Quantified After Approval Of Resolution Plan: Allahabad High Court

The Allahabad High Court has held that the resolution applicant cannot be burdened with new claims after approval of a resolution plan. The bench comprising Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit held that the principle underlying the Insolvency and Bankruptcy Code, 2016 is to give a fresh start to the successful resolution applicant. It held that any action obstructing the aforementioned principle is illegal and beyond the 'Lakshman Rekha' of the Code. “The...

PMLA Case | Allahabad HC Denies Bail To Man Accused Of Duping People By Impersonating Person Close To PM Modi

The Allahabad High Court on Tuesday denied bail to one Mohammad Kashif, booked under the Prevention of Money Laundering Act, on the allegations that he duped people financially by flaunting on social media morphed images with ministers, including Prime Minister Narendra Modi. Denying him the relief, a bench of Justice Samit Gopal noted that the alleged recovery of huge amount of money and other related documents and articles corroborate his deeds and that there is nothing credible to...