Comparable Used For First Time During ALP Determination Must Be Justified With Reasons: Punjab & Haryana High Court Deletes Arm's Length Price

The Punjab & Haryana High Court held that Revenue Department must establish compelling reasons for taking departure from the comparables selected by him in previous assessment years if he opts so, while carrying out transfer pricing adjustment to the international transactions of the assessee. The Division Bench comprising Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth observed that “Once the TPO himself has not accepted the said comparable which were considered for ...

Jharkhand High Court Quashes Criminal Proceedings For Delayed Tax Payment In Absence Of Any Penalty Proceedings

The Jharkhand High Court has quashed the criminal proceedings against a man accused of tax evasion under the Income Tax Act, 1961. The case involved allegations that the petitioner, a tractor dealer, failed to pay the tax liability associated with his income tax returns for the assessment year 2011-12, despite declaring the amount in his filing.The court's decision to quash the proceedings hinged on the fact that the tax was eventually paid, albeit with some delay, and that there were no pending...

Imposing Redemption Fine Equal To Value Of Goods Is Harsh; CESTAT Directs Reduction

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while reducing the quantum of the redemption fine, held that imposing a redemption fine equal to the value of goods is harsh.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that the total unbranded goods were valued at Rs. 1,65,49,893/-, and a redemption fine of the same value was imposed by the Commissioner in the impugned order. He also confiscated 2880 pairs of...

AO Ought To Grant TDS Credit In Compliance Of ITAT's Directions: Delhi High Court

The Delhi High Court has held that the Assessing Officer (AO) ought to grant TDS credit in compliance with the Income Tax Appellate Tribunal's (ITAT's) directions.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the Tribunal had framed an unequivocal direction for the AO to verify and attend to the grievance of short credit of TDS, bearing in mind what stood reflected in Form 26AS and which amount was quantified at Rs. 2,03,36,66,125. The petitioner/assessee had...

Preferential Location Charges Charged By Builder Includible In Taxable Value For Service Tax Levy: CESTAT

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the preferential location charges charged by the builder includible in the taxable value of the service tax levy.The bench of P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) have observed that the service is rendered in the context of a location, which does not make it a tax on land within the meaning of Entry 49 of List II. The tax continues to be a tax on the rendering of...

AO Made No Enquiries In Respect Of Large Investment Made By Assessee Without Any Cash: Ahmedabad ITAT Upholds Revision U/s 263

Finding that no enquiries were being carried out by AO in respect of the discrepancies which were very much evident out from the large investment made by assessee in property even when assessee has no such cash, the Ahmedabad ITAT held that the order of AO was rightly treated as erroneous and prejudicial to the interest of the revenue by the Pr. CIT.As per the Explanation 2 to section 263 of the Income tax Act, the order passed by the AO shall be deemed to be erroneous and pre-judicial to the...

Dept. To Wait For Outcome Of DRI Investigation Before Rejecting Request For Correction Of Declared Value In Bill Of Entry: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department would have awaited the outcome of the DRI investigation before rejecting the request for correction of the declared value in the bill of entry.The bench of P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) have observed that, though there was considerable delay in seeking amendment of the bill of entries, since the goods were cleared provisionally, records...

FTA Benefit Available On Import Of Clear Float Glass From Malaysia, Eligible For BCD Exemption: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Free Trade Area (FTA) benefit is available on the import of clear float glass (CFG) from Malaysia, and the assessee is eligible for Basic Custom Duty (BCD) exemption.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the CFG is rightly classifiable under CTH 70051090 as identical imports of CFG were initially assessed provisionally in...

Inadequate Enquiry By AO Would Not By Itself Give Occasion To CIT To Pass Order U/s 263 Merely Based On Difference Of Opinion: Ahmedabad ITAT

The Ahmedabad ITAT held that the PCIT cannot impose his own view in the proceedings u/s 263 by overriding the view taken by the AO, without bringing any new fact or anything adverse on record.Section 263 of the Income Tax Act is a provision that empowers the Commissioner of Income Tax to revise any order passed by an assessing officer if the Commissioner believes that the order is erroneous and prejudicial to the interests of the revenue.The ITAT held so after finding that the AO had taken a...

No Interest Is Payable For Intervening Period If Sufficient Balance Is Maintained In CENVAT Credit Account: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if the assessee is maintaining sufficient balance in their CENVAT credit account, then they are not required to pay interest for the intervening period.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the appellant had sufficient balance in their CENVAT credit account during the intervening period when they had taken the excess credit.The appellant or...

Failure To Comply Provision Of Sec 75(4) Of CGST Act 2017 Vitiates Entire Order: Calcutta High Court

The Calcutta High Court held that failure to comply with statutory provision which mandates consideration of explanation on the part of assessee before passing adverse order, vitiates such order. The High Court held so while considering that the petitioner was prevented from filing his response to the show cause notice, due to a reasonable cause. Referring to Section 75(4) of the CGST/WBGST Act, 2017, Single Bench of Justice Raja Basu Chowdhury observed that “affording an...

CENVAT Credit Can't Be Denied For Belatedly Filing ER1 Returns: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that under cenvat credit cannot be denied for belatedly filing ER1 Returns.The bench of M. Ajit Kumar (Technical Member) has observed that in the CENVAT scheme, there is no one-to-one correlation between the inputs and the final product. There was no time limit during which credit had to be taken on duty-paid documents. In the absence of any allegation of fraud or that the documents on which the credit was...