Income Tax Department Can't Retain Tax Collected Twice On Same Income: Telangana High Court

The Telangana High Court has held that the Income Tax Department cannot retain tax collected twice on the same income and that the Commissioner must exercise powers under Section 264 of the Income Tax Act, 1961. The provision enables revision of an assessment to provide relief against over-assessment, even where the mistake is attributable to the taxpayer. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda made the observation while allowing a writ petition filed by...

No Intra-Court Appeal Against Arbitration Execution Orders Not Otherwise Appealable: Telangana High Court

The Telangana High Court has held that two orders passed in execution proceedings relating to an international commercial arbitration award could not be challenged through a Letters Patent appeal as they were not appealable under the statutory provisions governing such appeals.The Division Bench comprising Justice K. Lakshman and Justice B.R. Madhusudhan Rao observed:“The Act, 1996, is a self-contained code which governs all matters pertaining to arbitration, including the right to file appeals....

CESTAT Taxability Appeals Lie Before Supreme Court U/S 35L Of Central Excise Act: Telangana High Court

The Telangana High Court has held that an appeal against a Customs, Excise and Service Tax Appellate Tribunal (CESTAT) order involving the taxability or classification of a service lies before the Supreme Court under Section 35L of the Central Excise Act, and not before the High Court under Section 35G. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda dismissed an appeal filed by the Principal Commissioner of Central Tax & Customs against Mars International...

Burden Shifts To Revenue Once Taxpayer Proves Creditworthiness And Genuineness: Telangana High Court

The Telangana High Court on 22 July held that once a taxpayer establishes the identity, creditworthiness and genuineness of credits through sufficient documentary evidence, the burden shifts to the Assessing Officer to disprove the material with independent and cogent evidence, and deleted income tax additions totalling Rs. 5.58 crore against Agarwal Industries Pvt. Ltd. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda allowed the company's appeal and set aside the...

Telangana High Court Upholds Law Levying Non-Agricultural Land Tax At Different Rates Based On Use

The Telangana High Court has upheld a law that levies non-agricultural land assessment at different rates based on the use of the land, rejecting a constitutional challenge that the levy could become arbitrary if industrial rates were imposed on land not actually used for industrial purposes.The bench comprised Chief Justice Aparesh Kumar Singh, Justice P. Sam Koshy, Justice K. Lakshman, Justice B. Vijaysen Reddy and Justice N. Tukaramji.The five-Judge bench held that Sections 3 and 8 and the...

Telangana High Court Allows Retired Partner To Invoke Arbitration Clause In Reconstitution Of Partnership Deed

The Telangana High Court has held that a retired partner could invoke an arbitration clause in a Reconstitution of a partnership deed (retirement deed) because the clause covered disputes between the parties and did not limit arbitration to existing partners.Referring to Article 12 of the deed, Justice K. Lakshman ruled, “The arbitration clause clearly specifies that the disputes arising between the parties shall be referred to arbitration. It is nowhere stated that disputes between existing...

Telangana High Court Upholds ₹43.48 Crore CST Demand Against Mahindra & Mahindra For Inter-State Sales

The Telangana High Court on 5 August held that movement of vehicles from Mahindra & Mahindra Ltd.'s Zaheerabad manufacturing unit to its regional sales offices in other States constituted inter-State sales under Section 3(a) of the Central Sales Tax Act, 1956. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda upheld a tax demand of around Rs. 43.48 crore, and dismissed two writ petitions filed by the company. It observed: “...It is not necessary, for a...

Telangana High Court Refuses To Quash FIR Against SREI, Says Forgery Allegations Require Investigation

The Telangana High Court on 24 July held that it cannot decide the genuineness of disputed documents or examine allegations of forgery while exercising inherent powers to quash criminal proceedings, as such issues require investigation and adjudication of facts. Justice J Sreenivas Rao refused to quash the First Information Report (FIR) registered against SREI Equipment Finance Limited and its officials over allegations of forgery, fabrication of loan documents, falsification of accounts and...

Telangana High Court Upholds Mayuri Film's Tax Benefit, Says Unrescinded Notification Can't Be Overridden

The Telangana High Court on 24 July held that a tax concession granted through a Government notification cannot be withdrawn merely because a new entry is introduced in a tax schedule, unless the notification granting the benefit is expressly withdrawn, superseded or rescinded. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao upheld the concessional sales tax benefit claimed by Mayuri Film Distributors on the sale of audio cassettes, holding that the Government Order...

Telangana High Court Restores Relief To Radiant Digital Solutions, Says Bona Fide Lapse Can't Deny Benefit

The Telangana High Court on 2 July held that a company cannot be denied the benefit of the concessional corporate tax regime under Section 115BAA of the Income Tax Act due to a bona fide delay in filing Form 10-IC, where it has substantially complied with the statutory requirements. A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda allowed the writ petition filed by Radiant Digital Solutions Pvt. Ltd. and set aside the Income Tax Department's order rejecting the company's...

Telangana High Court Holds Deferred Sales Tax Benefit Cannot Be Denied, Remands Krebs Biochemicals Case

The Telangana High Court on 19 June held that tax authorities cannot deny a taxpayer the benefit of a sales tax deferment scheme merely because statutory adjustment orders supporting the claim were not available during the original assessment proceedings, and directed the Assessing Officer to reconsider the claim after examining the subsequent orders. A Division Bench of Justices P. Sam Koshy and Suddala Chalapathi Rao partly allowed the appeals filed by Krebs Biochemicals & Industries...

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...