Writ Petition Is Maintainable Despite Remedy Under IBC, If NCLT Order Is Passed In Violation Of Natural Justice: Kerala High Court

The present writ petition was filed seeking the quashing of an order passed by the NCLT, Kochi Bench. By that impugned order, the adjudicating authority has directed the resolution professional to reject the claim filed by the home buyers, including the petitioner. The corporate debtor, who is the builder and the landowner, entered into an agreement to construct the building named Kerl Trade Centre at Marine Drive, Cochin. Sale deeds were executed by the landowners in favor of the...

KVAT Act | Input-Tax Credit Can Be Availed If Purchaser Has Genuine Invoices Even If Seller Fails To Remit Tax: Kerala High Court

The Kerala High Court, overruling its earlier decision in C.P. Rasheed v. State of Kerala, has held that input tax credit can be availed under the Kerala Value Added Tax Act, 2003 if the purchaser has genuine tax invoices even if the seller fails to remit tax.The bench opined that “the input tax credit can be legitimately availed by the purchasing dealer under the Kerala Value Added Tax Act, 2003, even in cases where the selling dealer failed to remit the tax due to the...

Property Tax Can't Be Levied Without Following Statutory Assessment Procedure U/S 233 Of Kerala Municipality Act: High Court

The Kerala High Court stated that property tax can't be levied without following statutory assessment procedure under Section 233 of Kerala Municipality Act, 1994. Section 233 of the Kerala Municipality Act, 1994, deals with the levy of property tax by the Municipality on buildings and lands within its area. This section outlines the process of assessment and collection of property tax, specifying that it should be levied in accordance with the Act and prescribed rules. Justices ...

Revisional Authority U/S 264 Of Income Tax Act Can Only Review Existing Orders, Cannot Issue Directions To Assessing Authority: Kerala HC

The Kerala High Court stated that the powers of revisional authority under Section 264 of the Income Tax Act is confined to reviewing existing orders, and the authority cannot issue directions to the assessing authority. Section 264 of the Income Tax Act, 1961 empowers the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner to revise certain orders. Justice Ziyad Rahman A.A. agreed with the department that powers conferred upon the revisional...

Department Serving Notice Via WhatsApp Post-COVID Is Not Valid U/S 169 CGST Act: Kerala High Court

The Kerala High Court stated that notice via WhatsApp was permitted only during COVID-19 pandemic and is not a valid mode of service under Section 169 CGST Act. Section 169 of the Central Goods and Services Tax (CGST) Act, 2017, outlines various methods for serving notices, orders, or communications under the GST law. Justices Nitin Jamdar and Basant Balaji was addressing the case where the department had served the detention and confiscation order to the assessee through...

Kerala High Court Upholds Triple Tax On Unauthorised Construction Due To Lack Of Proof Of Deemed Permit

The Kerala High Court has upheld triple tax on unauthorised construction due to lack of proof of deemed permit. Justice Ziyad Rahman A.A. stated that “in the absence of any documents indicating the submission of application for permit and inaction on the part of the Panchayat in considering the said application, the contention of the assessee as to the deemed permit cannot be accepted.” Those are the basic documents which are required to establish the case of the assessee and in...

Benefits To Registered Retail Traders Under MSMED Act Limited To Priority Sector Lending, Not Eligible For QCO Exemption: Kerala High Court

The Kerala High Court held that the benefits to registered retail traders under MSMED Act, 2006 (Micro, Small and Medium Enterprises Development Act, 2006) limited to priority sector lending only, and are not eligible for QCO [Plywood and Wooden flush door shutters (Quality Control) Order, 2024] exemption. Justice Ziyad Rahman A.A. stated that “the entire category of wholesale and retail trades were excluded completely from the purview of MSMED Act and later, they were re-included...

Income Tax | Serving SCN On Old Email After Updation Is Invalid, Despite Earlier Acknowledgement: Kerala High Court

The Kerala High Court stated that reply to one SCN on old email cannot justify non-service of subsequent notice on updated email. Justice Ziyad Rahman A.A. stated that “one of the notices issued under Section 142(1) of the Income Tax Act was indeed served to the assessee in the old email ID, which was after updating the email ID. The assessee also submitted a response to the said notice as well. However, that by itself cannot be a reason to reject the contentions put forward by the...

AD-I Banks Can Grant Extension For Export Drawback Claims; RBI's Direct Approval Not Mandatory: Kerala High Court

The Kerala High Court stated that AD-I banks authorized by RBI can grant extension for export drawback claims, RBI's direct approval not mandatory. Justice Ziyad Rahman A.A. stated that the Master Circular published in this regard indicates that it is not necessary that extension should come from the Reserve Bank of India itself as the AD-I bank are authorized to grant such extension. In this case, the assessee/petitioner is engaged in the export of garments to various countries....

Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number

The Kerala High Court quashed Income Tax proceedings under Section 148 against co-operative society initiated on cancelled PAN. Justice Ziyad Rahman A.A. observed that the transactions pertain to the relevant assessment year were carried out based on the PAN card that was then in existence, which was later cancelled. By the time the proceedings of assessment were initiated by issuing a notice under Section 148, the assessee was issued with a new PAN card, wherein, the status of the...

Occupancy Certificate Not Final For Plinth Area Determination: Kerala High Court Upholds Luxury Tax U/S 5A Of Kerala Building Tax Act

The Kerala High Court stated that occupancy certificate not final for plinth area determination under Section 6 of the Kerala Building Tax Act. Justice Ziyad Rahman A.A. was addressing the issue where challenge raised by the assessee was against the assessment of building tax and luxury tax, by mainly placing reliance upon Occupancy Certificate. Section 5A Of Kerala Building Tax Act imposes luxury tax on residential buildings that exceed a certain plinth area threshold. Section ...

Proceedings U/S 148A Of Income Tax Act Unsustainable If Escaped Income Is Below ₹50 Lakhs & Notice Is Issued After 3 Years: Kerala High Court

The Kerala High Court held that proceedings under Section 148A of Income Tax Act not sustainable if escaped income is below Rs. 50 lakhs and notice issued after 3-years. Justice Ziyad Rahman A.A. stated that “when the order of the assessing authority is found to be without jurisdiction and hit by the period of limitation, it is not necessary to relegate the party concerned to undergo the rigor of the statutory proceedings”. Section 148A of the Income Tax Act, 1961 empowers...