Tax
Different Evidence View By AO, CIT(A) No Ground To Interfere With ITAT Findings: Calcutta High Court
On 22 September, the Calcutta High Court held that a different view of the evidence taken by the Assessing Officer and Commissioner of Income-tax (Appeals) cannot, by itself, justify interference with factual findings of the Income Tax Appellate Tribunal (ITAT) under Section 260A of the Income Tax Act. A Division Bench of Justices Rajarshi Bharadwaj and Sudip Deb dismissed the Revenue's appeal against an ITAT Kolkata order granting relief to bullion trader Utkarsh Rai for Assessment Year...
Free Supply Of Drawings Alone No Ground To Add Their Value To Cabin's Assessable Value: CESTAT Chennai
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has held that drawings and designs supplied free of cost by customers cannot be added to the assessable value of motor cabins merely because they were supplied free of cost.A bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao observed:“A free supply does not of itself displace the sole consideration condition. It displaces that condition only if it satisfies the conditions stated in Explanation 1...
ATMs Are 'Computers' Under Income Tax Rules, Calcutta High Court Allows Higher Depreciation
The Calcutta High Court has held that Automated Teller Machines (ATMs) qualify as “computers” for claiming the higher depreciation rate under the Income Tax Rules, rejecting the Revenue's classification of the machines as general office equipment or machinery.“The revenue's attempt to categorise these units as general office equipment or machinery ignores the technical reality that they are specialised computing devices. Given that the technical specifications of an ATM align with the broad...
Delhi High Court Declines Writ On Jurisdiction Issue As Statutory Appeal Against Assessment Order Is Pending
The Delhi High Court has declined to exercise its writ jurisdiction in a challenge concerning the jurisdiction of an Income Tax Officer to pass an assessment order, noting that the assessee had already availed the statutory remedy of appeal against the assessment order and the appeal had been pending before the Commissioner of Income Tax (Appeals) since January 2020.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta, however, requested CIT(A) to decide the pending appeal...
Karnataka HC Sets Aside Notice Seeking Revision Of ₹27.13 Crore Tax Refund To Myntra Co-Founder Mukesh Bansal
The Karnataka High Court has set aside income tax revision proceedings initiated against entrepreneur and Myntra and Cult. fit co-founder Mukesh Bansal in connection with a refund of over ₹27.13 crore for AY 2019-20.Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, could not be treated as an order for exercising revisionary powers under Section 263.Bansal had originally declared a total income of ₹231.73 crore and tax...
LiveLawBiz Indirect Tax Weekly Round-Up: September 14 - September 20, 2026
HIGH COURTSAllahabad HCGST Authority Cannot Pass Fresh Ex-Parte Order After Ignoring Replies: Allahabad High CourtCase Title : M/S Wonder Enterprises v. State of U.P. and Another Case Number : WRIT TAX No. - 3203 of 2026 CITATION : 2026 LLBiz HC(ALL) 78The Allahabad High Court has held that an adjudicating authority under the U.P. GST Act, 2017 must recall an order if it finds that it failed to consider the replies filed against the proceedings and hear the person afresh. It cannot consider...
LiveLawBiz Direct Tax Weekly Round-Up: September 14 - September 20, 2026
SUPREME COURTAssessing Officer Cannot Reopen Income Tax Settlement Through Reassessment: Supreme CourtCase Title : Assistant Commissioner of Income Tax & Anr. v. M/s Omaxe Limited Case Number : Civil Appeal No. 9190 of 2013 CITATION : 2026 LLBiz SC 310The Supreme Court on Wednesday ruled that once a taxpayer's case has been finally settled by the Income Tax Settlement Commission, the Assessing Officer cannot reopen matters covered by the settlement through the ordinary reassessment route...
Brake Hose Bracket Is Motor Vehicle Part, Cannot Be Classified As Metal Bracket For Customs Duty: CESTAT Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has held that a bracket used in brake hose assemblies should be classified as a motor vehicle part based on its principal use for customs duty purposes.It also held that a connector specifically designed for automobile brake systems could not be classified as a generic plumbing fitting.A Bench comprising Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the appeal filed by Nichirin...
GSTAT Ernakulam Says ITC Eligibility Must Be Decided Under CGST Act, Sets Aside ₹7.07 Lakh Denial
The Ernakulam Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 8 September held that refund of unutilised Input Tax Credit (ITC) cannot be denied on the ground of ineligibility unless the credit is first disallowed through proceedings under the prescribed provisions of the GST law. A Bench comprising Vice-President Subramanya Rayaprol and Technical Member Ramamoorthi Sriram allowed the appeal filed by Augustan Textile Colours, a unit of Augustan Knitwear Pvt Ltd, and set aside...
Diary Entries At Partner's Premises Insufficient For Additions Without Link To Firm: Gujarat High Court
The Gujarat High Court on 8 September held that diary entries or other material found during survey proceedings cannot, by themselves, justify additions in the hands of a partnership firm when the material was not recovered from the firm's premises and there is no independent evidence linking the transactions recorded in it to the firm. A Bench of Justices Bhargav D. Karia and Pranav Trivedi dismissed the Revenue's appeals against Expert Particle Board and its partner, upholding the orders of...
Ammonia Storage Tank Integral To Plant Machinery, Can't Be Entirely Taxed As Building: P&H High Court
On 18 September, the Punjab and Haryana High Court held that an ammonia gas storage tank forming an integral part of a manufacturing plant cannot be subjected in its entirety to house tax by treating it as a “building”. A Division Bench of Justices Deepak Sibal and Rupinderjit Chahal passed the ruling while dealing with cross-petitions filed by National Fertilizers Limited (NFL) and the Municipal Council, Nangal over house tax imposed on an ammonia gas storage tank at NFL's fertiliser plant....
Karnataka High Court Quashes Revision Proceedings Over ESOP Tax Treatment After ₹27.13 Cr. Refund
On 18 September, the Karnataka High Court set aside revision proceedings initiated against taxpayer Mukesh Bansal after his revised income tax return for the assessment year 2019-20 resulted in a refund of Rs. 27.13 crore. Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, cannot be treated as an “order” for exercising revisionary powers under Section 263 of the Act. The Bench observed: “...The corollary would be that,...