Indirect Tax Cases Weekly Round-Up: 18 To 24 February 2024

Kerala High Court Yoga And Meditation Charges Are Subjected To Tax Under Kerala Tax On Luxuries Act: Kerala High Court Citation: 2024 LiveLaw (Ker) 125 Case Title: Bethsaida Hermitage & Tourism (P) Ltd Versus State Tax Officer The Kerala High Court has held that yoga and meditation charges are subjected to tax under the Kerala Tax on Luxuries Act. Allahabad High Court Limitation Act And Tax Appeals | Allahabad High Court Rejects Application Under Limitation Act,...

Direct Tax Cases Weekly Round-Up: 18 To 24 February 2024

Supreme Court 'Enemy Property' Not Exempt From Municipal Taxes As It Is Not Vested With Union Govt : Supreme Court Case Details: Lucknow Nagar Nigam & Others Versus Kohli Brothers Colour Lab. Pvt. Ltd. & Others Citation : 2024 LiveLaw (SC) 156 The Supreme Court held that the 'enemy property' vested in the possession of the Union Government-appointed 'custodian', as per the Enemy Property Act, 1968, cannot be considered a property of the Union Government to claim...

Burden To Prove Escaped Assessment Lies On Assessing Authority: Allahabad High Court Quashes Reassessment Order Against Flipkart

The Allahabad High Court has quashed the reassessment order against Flipkart and held that the burden to prove escaped assessment lies on assessing authority.The bench of Justice Saumitra Dayal Singh and Justice Shiv Shanker Prasad has observed that the burden of establishing the existence of recorded reasons was entirely on the department. Neither the petitioner was obligated to provide any material, nor was it required to assist in the formation of the reasons. Since the assessing authority...

Allahabad High Court Quashes Commercial Tax Tribunal's Judgement For Non-Compliance Of Rule 63(5) Of U.P. V.A.T. Rules, 2008

The Allahabad High Court has quashed the Commercial Tax Tribunal's judgement for non-compliance with Rule 63(5) of the U.P.V.A.T. Rules, 2008.The bench of Justice Abdul Moin has observed that, as per Rule 63(5) of the U.P. V.A.T. Rules, 2008, a judgement and appeal shall be in writing and shall state the points for determination, the decision, and the reason for the decision, which were not compiled by the Commercial Tax Tribunal while passing the judgement.The revision was filed challenging the...

AO Lacks Jurisdiction To Pass Draft Assessment Order In Absence Of " Any Variation In Income Or Loss ": Delhi High Court

The Delhi High Court has held that the AO, under Section 144C of the Income Tax Act, would have no jurisdiction to pass a draft assessment order in the absence of "any variation in the income or loss returned," which is prejudicial to the interest of the assessee.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that Section 144C of the Income Tax Act as it stood prior to the amendments would have empowered the AO to frame a draft assessment order only if a...

TDS Can't Be Isolatedly Taken In Any Assessment Year Without Offering Corresponding Income For Taxation: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS cannot be isolatedly taken in any assessment year without offering the corresponding income for taxation.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the assessee shall be entitled to TDS credit corresponding to the income reported in the AY 2017-18 itself, provided credit for TDS is reflected in Form No. 26AS in the relevant AY and is not claimed in any other AY,...

GST | Production Of Invoice, E-Way Bill After Detention Does Not Absolve Assessee Of Penalty: Allahabad High Court

The Allahabad High Court has held that absence of tax invoices and/or e-way bill at the time of interception and their subsequent production does not absolve the assesee from the liability of penalty under the Goods and Service Tax Act.“Production of these documents subsequent to the interception cannot absolve the petitioner from the liability of penalty as the very purpose of imposing penalty is to act as a deterrent to persons who intend to avoid paying taxes owed to the Government,” held...

'Enemy Property' Not Exempt From Municipal Taxes As It Is Not Vested With Union Govt : Supreme Court

The Supreme Court held that the 'enemy property' vested in the possession of the Union Government-appointed 'custodian', as per the Enemy Property Act, 1968, cannot be considered a property of the Union Government to claim the exemption from the municipal taxes under Article 285 (1) of the Constitution of India.“Union of India cannot assume ownership of the enemy properties once the said property is vested in the Custodian. This is because, there is no transfer of ownership from the owner of the...

GST | Only Typographical/ Clerical Error In Documents, Initial Burden On Department To Prove Intention To Evade Tax: Allahabad High Court

The Allahabad High Court has held that in case of no discrepancies or clerical errors in the documentation, the initial burden to prove that there is intention to evade tax lies on the department.While quashing penalty under Section 129 of the Uttar Pradesh Goods and Service tax Act, 2017, Justice Shekhar B. Saraf held that “It is a fact that the burden of proof lies on the petitioner in certain cases to show that there was no evasion of tax. However, when the error in the documents is only that...

GST Exemption On Supply Of Dal To Department For Women, Children, Disabled & Senior Citizens: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that no GST is payable on the supply of dal to the Department for Women, Children, Disabled, and Senior Citizens.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the purchase is made for use by that institution and not for commercial or trade purposes. The supplies made by the applicant will be exempt from CGST and SGST if made to the institutional consumer.The applicant, Narayan Trading Corporation, has been...

Reversal Of Cenvat Credit In Respect Of Common Input Services Sufficient For Compliance With Cenvat Credit Rules, 2004: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reversal of Cenvat credit in respect of common input services by the appellants is sufficient for compliance with the Cenvat Credit Rules, 2004.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that the appellants cannot be forced to avail of the option of payment of the prescribed percentage of the value of exempted services in terms of Rule 6(3).The...

Partial Setting Aside Of An Arbitral Award Valid U/s 34 If Part Is Independent And Doesn't Affect Other Components: Delhi High Court Allows Execution Petition

The Delhi High Court single bench of Justice Jasmeet Singh held that partial setting aside of an award is valid and justified as long as the part proposed for annulment is independent and can be validly incised without affecting other components. The bench held that it held that under Section 34 of the Arbitration and Conciliation Act, 1996, when the Court considers the power to partially set aside, it does not amount to a modification or variation of the entire award. Brief Facts: ...