Tax
Show Cause Notice Not Adjudicated For Nearly 14 Years; Delhi High Court Issues Notice To Dept.
A division bench of the Delhi High Court, comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja, has issued the notice to the department in a petition assailing the jurisdiction to adjudicate the Show Cause Notice, which has not been adjudicated for nearly 14 years.The petitioner/assessee is a manufacturer of Pan Masala containing tobacco commonly known as Gutkha, commercially engaging under the brand name "Pukar."The searches were conducted at three premises of the petitioner by...
S.144B(6) Income Tax Act | If Assessee “Requests” Then Opportunity Of Personal Hearing Is Mandatory, Not Optional: Allahabad High Court
The Allahabad High Court has held that opportunity of personal hearing is mandatory under Section 144B(6)(vii) and (viii) of the Income Tax Act, 1961 when show cause notice is issued regarding why assessment may not be completed as proposed. The Court held that once the assesee “requests” for an opportunity of personal hearing, it becomes incumbent on the Assessing Authority to grant that opportunity under Section 144B(6)(viii).Section 144B provides for Faceless Assessment. Section 144B(6)(vii)...
UPVAT | Computation Of Correct ITC Be Examined By Assessing Authority Not Later Than Stage Of Making Regular Assessment Order: Allahabad High Court
The Allahabad High Court has held that computation of correct input tax credit can only be done till the passing of the regular assessment order by the Assessing Authority and not at a later stage. The Court held that reverse input tax credit is neither a 'rate of tax' nor a 'turnover' which can be subjected to reassessment under Section 29 of the Uttar Pradesh Value Added Tax Act, 2008.Section 29 of the UPVAT Act empowers the Assessing Authority to initiate reassessment proceedings against an...
Tax Dues Can't Be Collected From Director Of Company Under Liquidation Unless Provided By Some Statute: Allahabad High Court Reiterates
Relying on its earlier decision in A.S. Solanki Vs. State of U.P. and others, the Allahabad High Court has reiterated that tax dues cannot be collected from director of company under liquidation unless it has been provided in any statute.The Allahabad High Court in A.S. Solanki had held that in a case where it was ascertained that the corporate veil had been used for malafide intent, the corporate personality shall be lifted so that the individuals responsible could be held liable. However, this...
Direct Tax Cases Weekly Round-Up: 5 To 11 May 2024
Supreme Court Interest-Free/Concessional Loans To Bank Employees Taxable As Perquisite : Supreme Court Upholds Rule 3(7)(I) Of Income Tax Rules Case Name- All India Bank Officers' Confederation Vs The Regional Manager, Central Bank Of India & Others Citation : 2024 LiveLaw (SC) 352 A Division bench of the Supreme Court comprising of Justice Sanjiv Khanna and Justice Dipankar Datta while deciding a Civil Appeal in the case of All India Bank Officers' Confederation Vs...
Indirect Tax Cases Weekly Round-Up: 5 To 11 May 2024
Delhi High Court Delhi High Court Quashes MOOWR Instructions Denying Benefit To Solar Power Generation Units Case Title: Acme Heergarh Powertech Private Limited Versus CBIC The Delhi High Court has held that the statutory scheme underlying the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) cannot be construed as seeking to exclude solar power generation in terms of permissions granted under Section 65 of the Customs Act, 1962. Bombay High Court ...
SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).The bench of Om Prakash Kant (Accountant Member) and Sandeep Singh Karhail (Judicial Member) has observed that since the NBFC is not acting as an agent of the assessee in respect of the loans advanced to the borrowers, therefore, we are of the considered view...
Advertising And Marketing Expenses For Sale Of Post-Import Goods Can't Be Included In Value Of Goods: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that expenses related to advertising and marketing are expenses in respect of activities carried out in India for sale of the goods in India which is post-import and, therefore, expenses cannot be part of the value of the imported good.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the reasoning of the Principal Commissioner in the order that since the...
No Service Tax Payable By National Co-Operative Consumers' Federation Of India For Selling Coal To End Consumers: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that whatever is charged by the coal companies for coal, the appellant, the National Co-Operative Consumers' Federation of India, is adding 5% margin money, collecting the sale price from the consumers, and paying the sales tax on the entire amount received from the end consumers; therefore, the revenue cannot charge any service tax.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical...
Agreement For Supply Of Water Is Not Covered Under Right To Use Natural Resources; CESTAT Quashes Rs. 10 Crores Service Tax Demand
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the agreement executed between the appellant and the government is for the supply of water, for which charges are paid by the appellant on the basis of the volume of water drawn, and it is not a case of the assignment of the right to use natural resources by the government.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the agreement was for the...
Loss Due To Sale Of Government Securities By Bank Is “Business Loss”; ITAT Allows Income Tax Deduction
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that loss due to the sale of government securities by banks is a “business loss” and the income tax deduction is allowable under Section 37 of the Income Tax Act.The bench of T.R. Senthil Kumar (Judicial Member) and Narendra Prasad Sinha (Accountant Member) have observed that the depreciation of government securities was a deterioration in the value of security. In essence, this was a loss claimed on the valuation of the...
Condition Of Pre-Deposit Duly Complied, Delhi High Court Restores Appeal On Board Of CESTAT
The Delhi High Court has held that the appeal itself may be restored on the Board of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), bearing in mind the undisputed position that the condition of pre-deposit has been duly complied with.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has allowed the instant writ petition and set aside the impugned order in so far as it proceeds to reject the application for restoration.The petitioner has challenged the...