Belated Deposit Of TDS, Andhra Pradesh High Court Quashes Prosecution Against Assessee

The Andhra Pradesh High Court has quashed the prosecution proceedings launched against the assessee for belatedly depositing tax deducted at source (TDS).The bench of Justice Venkata Jyothirmai Pratapa has observed that CIT conveniently ignored the material placed by the assessee to establish that there was a reasonable cause for their failure to remit the amount within a stipulated time. Since the assessee has paid the tax along with late payment interest (although belatedly), there are no...

High Court Lacks Jurisdiction To Entertain Applications Under Section 29A For Extension Of Arbitrator's Mandate: Andhra Pradesh High Court

The Andhra Pradesh High Court bench of has held the High Court, not being a Court within the meaning of the Arbitration and Conciliation Act, 1996, has no jurisdiction to entertain an application under Section 29A. Section 29A(4) of the Arbitration Act states that if the award is not made within the period specified of six months or the extended period of parties' mutual consent, any of the parties can apply to the court for an extension of time. Brief Facts: SEW...

Can't Examine Officials Of Tax Dept. On Enquiry Report Based On F-Forms Submitted By Dealer: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the assessee or petitioner does not have a right to cross-examine the officials of the Tax Department of Bombay on the F-Forms submitted by the dealer.The bench of Justice Ravi Nath Tilhari and Justice Harinath Nunepally has observed that the tax proceedings are of a quasi-judicial nature. The tax authorities are bound to comply with the principles of natural justice, though they are not strictly bound by the rules of evidence. The rule that requires...

[Arbitration Act] Courts Can Only Appoint Arbitrator U/s. 11(6) If Parties Fail To Refer Dispute To Arbitrator Even After Notice: Andhra Pradesh High Court

The Andhra Pradesh High Court bench of Chief Justice Dhiraj Singh Thakur held that to maintain an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Applicant is required to show that the Respondents failed to act as required under the arbitration clause and failed to refer the disputes to the Arbitrator even after a notice invoking the arbitration clause was served on the Respondents. Brief Facts: Respondent No.1, M/s Oil and Natural Gas Corporation...

Emery Cloth Is Cotton Coated Fabric And Liable To Be Exempted From Tax: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that emery cloth is cotton coated fabric and liable to be exempted from tax.The bench of Justice Ravi Nath Tilhari and Justice Harinath Nunepally has upheld the Tribunal's ruling in which it was held that the emery cloth is covered in Item-59.03 of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and therefore is exempted under Fourth Schedule to the APGST Act, as the same is liable for additional duties of...

Andhra Pradesh High Court Directs Municipal Corporation To Decide Representation On Waiver Of Interest On Property Tax Arrears

The Andhra Pradesh High Court, while restraining the Municipal Corporation from taking coercive steps against the petitioner, directed the corporation to decide representation on a waiver of interest on property tax arrears.The bench of Justice Ravi Cheemalapati has observed that the petitioner seems to have been paid an amount of Rs. 25,09,386 which includes penalty and interest on the property tax. Out of the said amount, the petitioner is entitled to a refund of the waiver amount (penalties...

Writ Petition Not A Remedy For Execution Of Arbitration Award: Andhra Pradesh High Court

The Andhra Pradesh High Court division bench comprising Chief Justice Dhiraj Singh Thakur and Justice R. Raghunandan Rao held that that it lacks the authority in writ petition to enforce an award issued by an arbitrator when it is already challenged under Section 34 of the Arbitration and Conciliation Act, 1996. Brief Facts: M/s. Vijayanagaram Hatcheries Pvt. Ltd. (“Respondent”) filed a writ petition in the Andhra Pradesh High Court (“High Court”) for the enforcement of the...

Income Tax Not Leviable On Interest-Free Refundable Security Deposit For Due Completion Of Project By Developer: Andhra Pradesh High Court

The Andhra Pradesh High Court at Amaravati has held that income tax is not leviable on an interest-free refundable security deposit for the due completion of a project by the developer.The bench of Justice U.Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that, as per the development agreement, the disputed amount of Rs. 50 lakhs is only an interest-free security deposit lying in the hands of the petitioner. It is not appropriate on the part of the department to treat the...

Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically

The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically.The bench of Justice Ravi Nath Tilhari and Justice A V Ravindra Babu has observed that the petitioner’s plea to read down the provisions of Rule 41 of the CGST Rules and to direct to accept the manual filing deserves rejection, as neither Rule 41 of the CGST Rules is under challenge nor is shown to be contrary to...

Execution Petition For Arbitration Award Would Lie Only Before The Designated Commercial Courts: Andhra Pradesh High Court

The High Court of Andhra Pradesh has held that an execution petition for an arbitration award can only lie before the designated Commercial Courts and no other Court viz., Civil/District Court can entertain such an application. The bench of Justices D.V.S.S. Somayajulu and Duppala Venkata Ramana held that an execution/enforcement petition for an arbitration award of a specified value would be an application within the meaning of Section 15 of the Commercial Courts Act, 2015 that...

Acceptance GSTR-3B Returns With Late Fee Will Not Condone Delay In Claiming ITC: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that mere acceptance of Form GSTR-3B returns with a late fee will not exonerate the delay in claiming the Input Tax Credit (ITC).The bench of Justice U. Durga Prasad Rao and Justice T. Mallikarjuna Rao has observed that ITC being a concession, benefit, or rebate, the legislature is within its competency to impose certain conditions, including a time prescription for availing the right, and it cannot be challenged on the ground of violation of Constitutional...

Andhra Pradesh High Court Quashes Suspension Order Of Customs Broker Licensee Passed Without Giving Opportunity Of Hearing

The Andhra Pradesh High Court has quashed the suspension order passed by the Customs Commissioner suspending the customs broker licence without giving the opportunity for a hearing.The bench of Justice U. Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that the Managing Director of the petitioner company was on judicial remand. Through repeated requests were made by the petitioner company, their request was rejected on the ground that the legal time frame fixed under the...