GST | Party Contesting Notice On Merits, Challenging Jurisdiction After Adverse Order Hit By Doctrine Of Election: Allahabad HC

The Allahabad High Court at Lucknow has recently held that a taxpayer who appeared before the tax officer and contested a show cause notice on merits and raised the objection of want of jurisdiction only after the penalty order went against him is hit by the doctrine of election and ought to be relegated to the statutory appellate remedy. The bench of Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary held “We are conscious of the settled legal position that a...

Income Tax | Assessing Officer Can Complete Assessment If No Objections Before Dispute Resolution Panel: Allahabad HC

The Allahabad High Court at Lucknow has held that objections to a draft assessment order under Section 144C of the Income Tax Act, 1961, must be filed before the Dispute Resolution Panel as well as the Assessing Officer and that filing them before the Assessing Officer alone will not do. It held that where no objections are filed before the Dispute Resolution Panel, the Assessing Officer may finalise the assessment on the basis of the draft order itself. Section 144C of the Income...

CESTAT Must Issue Fresh Notice If Bench Does Not Sit On Fixed Hearing Date: Allahabad High Court

The Allahabad High Court has recently held that where no bench of the Customs, Excise and Service Tax Appellate Tribunal sits on the date fixed for hearing so that no judicial order comes to be passed fixing the next date, the Tribunal must issue a fresh notice to the party intimating the next date and place of hearing. It held that an appeal decided ex parte on such an unnotified date is decided without affording the appellant due opportunity of hearing. Rule 18(1) of the Customs,...

Karnataka High Court Quashes GST Recovery Against Company For Deceased Proprietor's Business' Dues

The Karnataka High Court has quashed GST recovery notices issued against a private limited company for dues of a proprietary concern run by a deceased proprietor. It observed that the company was a distinct and separate entity from the proprietary concern and could not be proceeded against for its GST dues. Justice B. M. Shyam Prasad was hearing a writ petition filed by BKR Services Private Limited along with the son and wife of late Rudraswamy B K, who died on May 25, 2023. The dispute arose...

Gujarat High Court Rejects Bus Owner's Plea Over ₹53 Lakh Vehicle Tax Demand For Lack Of Non-Use Certificate

The Gujarat High Court has rejected a bus owner's plea against a ₹53.20 lakh vehicle tax demand, holding that the statutory presumption of use in Gujarat applied because he had not obtained a certificate declaring the bus as unused.A Division Bench comprising Justice A.S. Supehia and Justice Vaibhavi D. Nanavati held that Section 3(2) of the Gujarat Motor Vehicles Tax Act, 1958, creates a deeming fiction unless the prescribed authority certifies that a vehicle was not used or kept for use in 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...

Chhattisgarh High Court Rejects Plea Against ₹19.75 Lakh Property Tax Demand On Loyola School

The Chhattisgarh High Court has dismissed a writ petition filed by Madhya Pradesh Jesuits challenging property tax demand notices of around Rs. 19.75 lakh raised against Loyola Higher Secondary School, Bilaspur.Justice Rakesh Mohan Pandey held that the school could not claim property tax exemption based on a Section 12A registration certificate, which is required for eligible educational institutions to claim the exemption. The certificate, however, was issued in favour of “The President, Madhya...

Bank Cannot Mark Lien On Cooperative Society Account For TDS On Cash Withdrawals: Karnataka High Court

The Karnataka High Court has recently held that Bank of Baroda had no statutory authority to create a lien over a cooperative society's current account for collection of TDS on cash withdrawals. It held that the responsibility to deduct the tax under Section 194N of the Income Tax Act rested on the bank.Justice M.G.S. Kamal observed that Section 194N placed the responsibility for deducting the prescribed tax on the banking company making the payment. “Perusal of the aforesaid provision indicate...

CESTAT Must Decide All Issues As Final Fact-Finding Authority: Bombay High Court

The Bombay High Court has recently observed that the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), as the final fact-finding authority under the statute, must adjudicate all issues arising from the record. Failure to consider a contention and render a finding on it amounts to failure to exercise jurisdiction, the court observed.“The CESTAT, being the final fact-finding authority under the statute, was duty bound to adjudicate on all issues arising from the record. Its failure to...

CIT(A) Has Discretion To Order Fresh Tax Assessment, But Must First Decide Reassessment Challenge: ITAT Mumbai

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the CIT(A) has discretion to set aside an assessment and send the case back for a fresh assessment. However, the CIT(A) must first decide the taxpayer's basic legal objections on whether the reassessment itself was valid. Under Section 251(1)(a) of the Income Tax Act, the CIT(A) has the power to set aside an assessment made under Section 144. The ITAT observed that exercising this power does not remove the CIT(A)'s...

Service Tax Demand Cannot Go Beyond Show-Cause Notice: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has reiterated that adjudicating and appellate authorities cannot confirm a service tax demand under a category different from the one specified in the show-cause notice. The assessee must be put on notice about the category of taxable service under which the demand is proposed.The bench comprised Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao.The tribunal, relying on earlier decisions, observed,“Once...

Income Tax Act | 18-Month Period To Decide Settlement Application Cannot Restart On Transfer Between Interim Boards: Allahabad High Court

The Allahabad High Court at Lucknow has recently held that the period of 18 months for deciding a settlement application under Section 245D(4A)(iii) of the Income Tax Act, 1961, begins to run when the application first stands allotted to an Interim Board for Settlement and does not begin afresh when the Central Board of Direct Taxes later transfers the application from one Interim Board to another. Section 245D(4A)(iii) of the Act requires an order under Section 245D(4) to be...