ED Interrogations Lasting 14 Hrs "Not Heroic", Violate Human Dignity: Punjab & Haryana HC While Declaring Congress MLA's Arrest Illegal

The Punjab and Haryana High Court today asked the Enforcement Directorate to take remedial measures and sensitize its officers to follow some "reasonable time limit" for interrogations of suspects under PMLA, in one go.Justice Mahabir Singh Sindhu said ED interrogation lasting for upto 15 hours in this case "is not heroic...rather it is against the dignity of a human being." For future, the Court directed the ED to observe the mandate of right to life and liberty, which includes right to...

Appeal Dismissed For Non-Payment Of Pre-Deposit; Revenue Can't Challenge Restoration After Accepting Deposit: Punjab and Haryana High Court

The Punjab and Haryana High Court stated that if the appeal of the assessee was previously dismissed due to non-payment of the pre-deposit, and they have since made that payment, which has been accepted by the Revenue, then the Revenue cannot later challenge the restoration of the appeal.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “Tribunal can be said to be functus officio only after it decides any appeal on merits. If the appeal has been only...

Educational Trust Using Earnings For Educational Advancement Entitled To Benefits Under Section 12AA Of Income Tax Act: Punjab & Haryana High Court

The Punjab and Haryana High Court ruled that an institute registered as an educational trust, using its earnings solely for educational advancement, should not be denied the benefits of Section 12AA of the Income Tax Act, 1961.The Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “the institute is a duly registered educational trust and whatever earnings it receives are also utilized for the purpose of advancement of education, the institution could not have been...

Interest Can Be Waived In Situations Beyond Assessee's Control In Timely Filing Of Returns: Punjab And Haryana High Court

The Punjab and Haryana High Court ruled that interest for late filing of income tax returns can be waived in situations where the delay was beyond the control of assessee. The Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “….while exercising the discretion by the Settlement Commission, no reasons have been assigned as to why the interest has been reduced by 50% only, and as to why the complete interest has not been waived off for the assessment year...

ITO's Personal Opinion In Prior Assessment Not A Valid “Reason To Believe” For Reopening Assessment: Punjab & Haryana High Court

The Punjab and Haryana High Court while quashing the reopening proceedings initiated under Section 148 of the Income Tax Act stated that merely on account of there being an error found based on a personal opinion of the Income Tax Officer in relation to the earlier assessment, cannot be a reason to believe for initiating reassessment. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “merely because a new assessing officer may not be happy with...

Local Sales Assessment Does Not Exempt Assessee From Inter-State Sales Tax Claims, Rules Punjab & Haryana High Court

The Punjab and Haryana High Court ruled that local sales assessment does not exempt assessee from inter-State Sales tax claims. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “merely because the concerned respective States has assessed the assessee/petitioner for the local sales, it cannot absolve itself from the claim raised by the State of Bihar and the assessee/petitioner was required to pay the same.” Section 6(1) of...

Suspicious Suppliers Being From Different States Is No Ground To Transfer Proceedings from State to Centre: Punjab & Haryana High Court

The Punjab and Haryana High Court stated that merely having information that suspicious suppliers are not located in the same state would not be ground to transfer proceedings from the state to the centre. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth stated that “merely because the DGGI has information relating to similar fraudulent availment of ITC by other firms who may be related to the firm against which the proceedings have been initiated under Section...

Presumption Of Undervaluation Can't Be Drawn Just Because Of Higher MRP Rate On Product: Punjab & Haryana HC

The Punjab and Hayana High Court stated that the presumption cannot be drawn that invoices are undervalued merely because MRP Rate mentioned on the product is higher. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “it is also not a case of the State authorities that the invoices were different for the assessee in comparison to other distributors. Once there is no finding in this regard, a presumption cannot be drawn that the invoices were...

Amount Seized From Third Party Is Not Eligible For Adjustment Against Advance Tax Liability Of Assessee: Punjab & Haryana HC

The Punjab & Haryana High Court held that cash seized from possession of another person cannot be adjusted against Assessee's tax liability as advance tax paid by him. The Division Bench comprising Justice Sanjeev Prakash Sharma and Justice Jagmohan Bansal observed “From sub-section (3) of Section 132B, it is evident that person from whose custody assets is seized is entitled to adjustment thereof against the tax liability. As per explanation, existing liability does not include...