Tax
SCN Can't Be Issued Prior To Finalisation Of Audit Proceedings; Karnataka High Court Stays Order
The Karnataka High Court has stayed the order passed under Section 74 of the CGST Act, 2017 on the grounds that the show cause notice cannot be issued prior to the finalization of audit proceedings.The bench of Justice Sunil Dutt Yadav has admitted the writ petition challenging the audit rules, namely Rule 101(2), (3), and (4), ultra vires to Section 65 of the CGST Act.The petitioner/assessee is a proprietorship firm located in Karnataka and is involved in the retail business of petroleum oils...
Deeming Provisions Of Section 50C Can't Be Applied For Leasehold Rights: Delhi ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that deeming provisions of Section 50C of the Income Tax Act cannot be applied for leasehold rights.The bench of Kul Bharat (Judicial Member) and Avdhesh Kumar Mishra (Accountant Member) has observed that only if a capital asset, be it land, a building, or both, is transferred and the consideration received or accruing as a result of such transfer is less than the value adopted, assessed, or assessable by the stamp valuation...
No Service Tax Payable On Interest Income On Overdraft/Cash Credit Facilities: Kolkata CESTAT
The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on interest equivalent on overdraft or cash credit extended by cooperative banks.The bench of R. Muralidhar (Judicial Member) and Rajeev Tandon (Technical Member) has observed that Notification No. 29/2004-ST clearly exempts service tax on interest income on overdraft/cash credit facilities, and it is required to be shown separately in the invoice, bill, or challan for the...
Absence Of Incriminating Materials, AO Not Empowered To Reopen Assessments In Block Period Of Six Years: Kerala High Court
The Kerala High Court has held that based on the material obtained during the search, the Assessing Officer, who gets the jurisdiction to re-open the assessments, can do so in respect of the individual assessment years comprised in the block period of six years only if the material obtained during the search under Section 132 of the Income Tax Act, or any part thereof, relates to the assessment year in question.The bench of Justice A.K.Jayasankaran Nambiar and Justice Syam Kumar V.M. has relied...
Slump Sale Doesn't Amount To Sale Of Goods Within MVAT Act: Bombay High Court
The Bombay High Court has held that slump sale under the Business Transfer Agreement (BTA) would not amount to sale of goods within the purview of the Maharashtra Value Added Tax (MVAT) Act.The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that it was completely a flawed approach on the part of the reviewing authority to tax part of the BTA considering it to be petitioner's sales/turnover of sales, for the financial year 2010-11 in respect of the amounts of the...
Revisionary Power Can't Be Invoked On Allegation Of Improper Inquiry By AO: Delhi ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessment order cannot be held to be erroneous and prejudicial to the interest of revenue merely on the allegation that the Assessing Officer has not made an inquiry and verification with regard to cash deposits as well as scrap sales.The bench of Saktijit Dey (Vice President) and Naveen Chandra (Accountant Member) has observed that on the mere allegation that, in the opinion of the revisionary authority, the Assessing...
Non-Communication Of SCN To Call Book Is Fatal; Bombay High Court Quashes SCNs Against ICICI Home Finance
The Bombay High Court, while quashing the show cause notices against ICICI Home Finance Company Ltd., held that non-communication of show cause notices transferred to the call book is fatal.The bench of Justice K.R. Shriram and Justice Jitendra Jain observed that the reason why the show cause notices were transferred to the call book was because of the SLP pending in the Apex Court in Malabar Management Services Pvt. Ltd. The legality of the issues raised in Malabar Management Services Pvt. Ltd....
53rd GST Council Meet Tomorrow: What's The Key Expectations?
About Eight and a half months after its previous meeting, the Center has decided to call a meeting of the Goods and Services Tax (GST) Council on June 22, 2024.Although the meeting's agenda is yet unknown, state finance ministers should bring forth ideas for an indirect tax system that might be included in the Union Budget, which is anticipated to be unveiled next month.Here are the key expectations:Set monetary threshold limits for GST casesIt is probable that the GST Council would establish...
Allahabad High Court Monthly Tax Digest: May 2024
NOMINAL INDEX Mr. Pranay Dhabhai v. State Of U.P. And 2 Others 2024 LiveLaw (AB) 299 Mentha And Allied Products Ltd vs. State Of U.P. And 3 Others 2024 LiveLaw (AB) 300 Satish Kumar Bansal Huf v. National Faceless Assessment Centre Nafac And Another 2024 LiveLaw (AB) 301 M/S K Y Tobacco Works Pvt. Ltd. vs. State Of U.P. And 4 Others 2024 LiveLaw (AB) 319 M/S Rajshi Processors Raebareli Thru. Its Partner Ashok Kumar Lakhotia v. State Of U.P. Thru. Prin. Secy. Deptt. Of State...
Statutory Scheme Determining Taxable Turnover Of Works Contract Under KVAT Act Doesn't Suffer From Any Defect: Kerala High Court
The Kerala High Court has held that the statutory scheme for determining the taxable turnover of a works contract under the Kerala Value Added Tax Act (KVAT Act) does not suffer from any defect so as to render it unworkable to effectuate the charge to tax on a works contract. The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V. M. has observed that it was incumbent upon the petitioner or assessee to declare the total turnover (contract receipts) pertaining solely to the works...
Bombay High Court Upholds ITAT's Order Directing Vodafone India To Deposit Rs.230 Crores For Staying Income Tax Demand
The Bombay High Court has upheld the order passed by the Income Tax Appellate Tribunal (ITAT) directing Vodafone India to deposit Rs. 230 crores for staying income tax demand.The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan directed the petitioner, Vodafone India, to deposit an amount of Rs. 230 crore, being the lowest or minimum amount of 20% of the disputed tax demand, which, in our opinion, is clearly in consonance with the provisions of Section 254(2A) of the Income Tax...
ITC Wrongfully Availed But No Fraud/Misstatement Proven; Madras High Court Imposes Token Penalty
The Madras High Court has imposed a token penalty of Rs. 10,000 on the assessee instead of a higher penalty as the assessee wrongfully availed of the input tax credit (ITC), but the department could not prove fraud or misstatement on the part of the assessee.The bench of Justice C. Saravanan has observed that the assessee reversed the ITC. Penalties under Section 74 deal with situations where credit is availed or utilized by reason of fraud or any wilful misstatement or suppression of facts that...