Tax
Ensure Counsel Appearing On Advance Service Are Instructed Properly: Delhi HC Asks Customs, GST Department, DRI And DGGI To Frame SOP
The Delhi High Court has asked the Customs Department, the Central GST Department, the Directorate of Revenue Intelligence (DRI), Directorate of General GST Intelligence (DGGI) to make sure that counsel representing them on advance service are instructed properly.A bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the Commissioner of Customs to prepare an SOP as to the manner in which the Department shall ensure that instructions are given to the nominated Counsels in the matter...
Fees Paid By Law Firm Remfry & Sagar To Use Name & Goodwill Of Founder Is Business Expense, Deductible U/S 37 Of Income Tax Act: Delhi HC
The Delhi High Court has held that the fees paid by IPR law firm Remfry & Sagar to acquire the goodwill vested in a company run by the family members of its deceased founder, is a business expense deductible under Section 37 of the Income Tax Act.A division bench of Justices Yashwant Varma and Ravinder Dudeja observed, “the primary, nay, sole purpose for incurring expenditure towards license fee was to use the words “Remfry & Sagar” and derive benefit of the goodwill attached to it. The...
'Activity Did Not Involve Any Manufacturing, Central Excise Duty Was Collected Illegally': CESTAT Orders Refund
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted a refund along with interest, despite the absence of a statutory provision for interest under central excise laws at the relevant time. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the amount collected by way of Central excise duty was illegal as the activity itself did not involve any manufacture and the same cannot be allowed to be...
Merely Paying Penalty For Wilful Delay In Filing Income Tax Returns Does Not Exonerate Assessee From Being Prosecuted: Karnataka High Court
The Karnataka High Court has refused to quash prosecution initiated by the Income Tax Department against an assessee who had willfully failed to submit his income tax returns in time for the Assessment Years 2012- 13 to 2015-16 and thereby committed the alleged offence.A single judge, Justice S Vishwajith Shetty dismissed the petitions filed by Rajkumar Agarwal. It said, “Delay in filing of the income tax returns would not only result in payment of penalty, but it also results in prosecution as...
Tax Weekly Round-Up: January 27 - February 02, 2025
HIGH COURTSAndhra Pradesh HCS.12(10) Central Sale Tax (R&T) Rules | Can Certificate Of Export Be Filed After Completion Of Sales Tax Proceedings: AP HC Refers To Full BenchCase title: M/s. Mohan Spintex India Limited v. Commercial Tax Officer and OthersCase no.: WRIT PETITION NOs: 7158/2018,10587/2016, 2514/2020, 6480/2020, 6597/2020, 3111/2021, 40351/2022, 40354/2022, 23960/2023 & 29854 of 2024A Division Bench of the Andhra Pradesh High Court has placed a matter regarding the...
Welfare Measures For Gig Workers, Jan Viswhwas Bill 2.0 : Union Budget 2025 Proposals
In the Union Budget speech, Finance Minister Nirmala Sitharaman made several significant announcements, including the proposal to bring a new income tax bill, reduction of tax slabs and changes to TDS/TCS regime.Welfare security for gig workersApart from this, the Government has decided to provide welfare security for gig workers in India. As per Sitharaman's budget speech, under the Social Security Scheme for the welfare of online platform workers, they will be provided with an identity card...
No TCS On Sale Of Goods; Changes To TDS/TCS Regime : Union Budget 2025 Proposals
With an aim to reform the personal income tax regime with a special focus on middle-class citizens, the Union Finance Minister Nirmala Sitaraman has introduced key changes in the Budget 2025-26 at the August gathering today. Rationalisation of TDS and TCSWith an aim to rationalise Deducted at Source (TDS) and Tax Collected at Source(TCS), the following measures have been introduced:"I propose to rationalise tax deduction at source by reducing the number of rates and thresholds above which...
New Income Tax Bill Will Be Introduced Next Week : Finance Minister
Union Finance Minister Nirmala Sitharaman announced in her budget speech on Saturday that a new income tax bill will be introduced next week.She said that the new tax bill will be simpler and clearer compared to the present Income Tax Act 1967."In respect of criminal law, our Government had earlier ushered in Bharatiya Nyaya Sanhita replacing Bharatiya Danda Sanhita. I am happy to inform this August House and the country that the new income-tax bill will carry forward the same spirit of “Nyaya”....
'Full Tax Rebate For Income Up To Rs 12 Lakhs' : Finance Minister Announces New Tax Rates In Union Budget 2025
Union Finance Minister Nirmala Sitaraman in her budget speech announced proposals which effectively mean that there is no income tax payable for normal salaried income up to Rs 12 lakhs per annum.She said that for taxpayers up to Rs12 lakhs of normal income, other than special rate incomes such as capital gains, tax rebate is being provided in such a manner that there is no tax payable by them."I am happy to announce that there will be no income tax payable up to income of 12 lakh rupees," the...
GST Registration And Payment Of Tax After Inspection Is Not Voluntary Conduct: Madras High Court
The Madras High Court stated that GST registration and payment of tax after inspection is not a voluntary conduct.The Bench of Justice K. Kumaresh Babu observed that “there is a deliberate attempt to evade payment of tax by not registering himself under the Act and also issuing receipts as donation to the Trust. Only after the inspection they have agreed to pay the tax by registering themselves. This conduct cannot be said to be a voluntary conduct.”In this case, the assessee/petitioner is the...
Prescribed Time Limit For Filing Refund Application Cannot Be Disregarded Merely Because Tax Was Collected Without Legal Authority: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the prescribed time limit for filing a refund application cannot be disregarded merely because the tax was collected without legal authority. The Bench of Justices Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that “the appellant cannot be permitted to claim a refund of service tax under sub-section (1) of section 102 and at the same time contend that the condition...
Department Cannot Invoke Extended Period Of Limitation Merely Because Returns Were Self-Assessed: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the department cannot invoke the extended period of limitation merely because the returns were self-assessed. The Bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that “Mere suppression of facts is not enough to invoke the extended period of limitation contemplated under the proviso to section 73(1) of the Finance Act. The suppression has to be...