Party Who Was Not 'Supplier' On The Date Of Entering Into Contract Cannot Seek Any Benefit As Supplier Under MSMED Act : Supreme Court

The Supreme Court observed that a party who was not 'supplier' on the date of entering into contract cannot seek any benefit as the 'supplier' under the MSMED Act, 2006If any registration is obtained subsequently the same would have an effect prospectively and would apply to the supply of goods and rendering services subsequent to the registration, the bench of CJI UU Lalit and Justice Bela M. Trivedi observed.The bench was considering a batch of appeals which raised issues regarding interplay...

Statutory Authorities, Professional Bodies Like ICAI Entitled To Income Tax Exemption If Amounts Charged By Them Are Nominal To Cover Costs : Supreme Court

The Supreme Court has pronounced a significant judgment on the scope of exemption for "charitable purposes" under Section 2(15) of the Income Tax Act 1961 in relation to statutory authorities and professional bodies.With effect from 01.04.2009, after the Finance Act 2009, a proviso was added to the section to state : "Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of...

Advancement Of General Public Utility Won't Be "Charitable Purpose" For Income Tax Exemption If It Is Done As Business : Supreme Court

In a significant judgment, the Supreme Court has held that entities created with the object of advancing general public utility cannot seek exemption under the Income Tax Act 1961 under the head "charitable purposes" if they are engaging in any trade, business, commerce or providing any service for any consideration.However, in the course of carrying out the general public utility, the assessee can engage in incidental trade or business or provide services for consideration and can generate...

'Anardana' Be Classified Under Heading 1209 Of Tariff Entries Under Customs Tariff Act, 1975 & Attract 5% Custom Duty Till Revenue Takes Policy Decision Regarding The Same: Supreme Court

The Supreme Court, on Monday, held that 'anardana' or dried pomegranate seeds would fall under Heading 1209 of the Tariff entries issued under the Customs Tariff Act, 1975, as classified by the Customs Excise and Service Tax Appellate Tribunal, attracting a custom duty at the rate of 5%, till the Revenue takes a considered policy decision regarding its classification. The issue before the Bench comprising Justices Sanjiv Khanna and Bela M. Trivedi was that revenue authorities...

Sufficiency Or Inadequacy Of Reasons To Believe Cannot Be Looked Into While Considering Validity Of Search & Seizure U/Sec 132 Income Tax Act: Supreme Court

The Supreme Court, in a judgment delivered on Wednesday, restated the principles in exercising the writ jurisdiction in the matter of search and seizure under Section 132 of the Income Tax Act."The sufficiency or inadequacy of the reasons to believe recorded cannot be gone into while considering the validity of an act of authorization to conduct search and seizure", the bench comprising Justices Hemant Gupta and V. Ramasubramanian observedThe court was considering an appeal against the judgment...

Twin Conditions In Section 10B (8) Income Tax Act Has To Be Fulfilled To Claim Exemption Relief: Supreme Court

For claiming the benefit under Section 10B (8) of the Income Tax Act, the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139(1) are to be satisfied and both are mandatorily to be complied with, the Supreme Court observed in a judgment delivered yesterday. Section 10B (8) IT ActThe Section 10B (8) IT Act reads as follows: Notwithstanding anything contained in the foregoing...

Indian Company Liable To Service Tax On Secondment Of Employees From Overseas Group Entities As Recipient Of Manpower Supply: Supreme Court

The Supreme Court has held that when the Overseas group companies providing skilled employees, on secondment basis, to its Indian counterparts amounts to supply of manpower services, the Indian company would be considered as service recipient. Therefore, the Indian company is liable to pay service tax on the salaries of the seconded employees reimbursed to the overseas company.While the judgment related to the service tax regime, it can have impact on the GST regime as well in view of the...

Section 63 Copyright Act - Copyright Infringement Is A Cognizable & Non Bailable Offence: Supreme Court

The Supreme Court held that the offence of copyright infringement under Section 63 of the Copyright Act is a cognizable and non ­bailable offence.If the offence is punishable with imprisonment for three years and onwards but not more than seven years the offence is a cognizable offence, the bench comprising Justices MR Shah and BV Nagarathna observed. BackgroundThe appellant had filed an application under Section 156(3) Cr.P.C. and sought directions from the Chief Metropolitan ...

Equilibrium Between Power Of The Income Tax Dept. Of Reassessment And Rights Of The Assessee: Supreme Court

The Supreme Court, by invoking the extraordinary jurisdiction under Article 142 of the Constitution of India, saved over 90,000 Income Tax Reassessment notices issued after the 2021 Amendment by deeming them as notices under Section 148A of the Income Tax Act. At the same time, in order to protect the interests of the assessees, the Apex Court directed that the income tax officer must follow the procedure laid down as per amendments made by the Finance Act, 2021. All defences shall be...

Supreme Court Saves Over 90,000 Income Tax Reassessment Notices Issued After 2021 Amendment By Deeming Them As Notices Under Section 148A

The Supreme Court, on Wednesday, directed that reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 (the effective date of amendment of the said provision by the Finance Act, 2021) to be deemed to have been issued under Section 148A of the IT Act as substituted by the Finance Act, 2021 and be construed as show cause notices in terms of section 148A(b). While deciding an appeal against an order of the Allahabad High Court which had set aside...

No Deemed Registration Even If Registration Application U/Sec 12AA Income Tax Act Is Not Decided Within Six Months: Supreme Court

The Supreme Court has observed that there shall not be any deemed registration even if in a case where the registration application under Section 12AA of the Income Tax Act, 1961, is not decided within six months.The bench comprising Justices MR Shah and BV Nagarathna was considering a Special Leave Petition challenging a judgment of Allahabad High Court in which the issue raised was whether on non-deciding the application for registration under Section 12AA (2) of the Income Tax Act within a...

Income Tax Act - Loss Suffered Due To Exchange Fluctuation While Repaying Loan Can Be Regarded As Revenue Expenditure : Supreme Court

Allowing the appeal filed by Wipro Finance Ltd., the Supreme Court observed that the loss suffered owing to exchange fluctuation can be regarded as revenue expenditure and thus an allowable deduction.The bench comprising Justices allowed the appeal against High Court judgment which had reversed the above view taken by Income Tax Appellate Tribunal. Wipro entered into a loan agreement with one Commonwealth Development Corporation for borrowing amount to carry on its...