Tax
Typo Error In E-Way Bill, Penalty Can't Be Imposed If There Is No Intention To Evade Tax: Allahabad High Court
The Allahabad High Court has held that a minor typographical error in the e-way bill without any other material establishing an intention to evade tax will not attract a penalty under Section 129 of the Goods and Service Tax Act, 2017.Placing reliance on the decision of Allahabad High Court in M/s. Varun Beverages Limited v. State of U.P. and 2 others, the judgment of Supreme Court in Assistant Commissioner (ST) and others v. M/s. Satyam Shivam Papers Pvt. Ltd. And another, Justice Shekhar...
Heavy Earth Moving Vehicles Under MVA Can Only Be Driven By Licensed Individuals: Jharkhand High Court
The Jharkhand High Court has ruled that registration of mining equipment, including drill masters and dumpers is mandatory under the Motor Vehicles Act. However, the Court has further said that the issue of whether a vehicle is taxable or not will depend upon the test as to whether the vehicle is proposed to be used for transporting goods from one place to another.Brief FactsThe petitioner, Steel Authority of India Limited (SAIL), has its coal mines at Chasnalla Area of Dhanbad district from...
Tax Cases Weekly Round-Up: 31 December 2023 To 6 January 2024
Supreme Court Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVO Case Title: State of Uttar Pradesh and Anr. v. M/s Vivo Mobile India Private Ltd. & Ors. On Thursday(January 4), the Supreme Court dismissed a Special Leave Petition filed by the State of Uttar Pradesh against the order of the Allahabad High Court quashing the demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited raised...
Delhi High Court Directs Income Tax Commissioner To Accept BCI's Form No.10 After Condoning Delay
The Delhi High Court has directed the income tax commissioner to accept Form No. 10 submitted by the Bar Council of India (BCI) after condoning the delay.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the mandate of Section 119(2)(b) of the Income Act is to mitigate the genuine hardship of the assessee in certain circumstances and authorize the Commissioners to admit the belated Form 10.The petitioner, Bar Council of India, has sought quashing of an order...
Calcutta High Court Quashes Ex Parte Order Imposing Excise Duty On Incineration Of Lean Gas Used In Generation Of Electricity
The Calcutta High Court has quashed the ex parte order imposing excise duty on the incineration of lean gas used in the generation of electricity.The bench of Justice Md. Nizamuddin has remanded the matter back to the adjudicating authority concerned to pass a fresh adjudication order by allowing the petitioner to file an objection against the adjudication order by treating it as show cause notice and to take all the points raised in this writ petition.The issue raised was whether lean gas or...
S. 80IA(4) Deduction Available To Assessee Engaged In Developing Infrastructure Projects Like Roads, Canals: Gujarat High Court
The Gujarat High Court has allowed the deduction under Section 80IA(4) of the Income Tax Act to the assessee engaged in developing infrastructure projects like roads, canals, etc.The bench of Justice Bhargav D. Karia and Justice Niral R. Mehta has observed that the assessee has entered into a development of infrastructure facility agreement and not a work contract.The respondent or assessee was engaged in the business of construction activity and the development of infrastructure and other...
NIC Notifies Blocking Of E-way Bills Without E-Invoice Details For B2B, B2E Transactions From March 2024
The National Informatics Centre (NIC) has notified the blocking of e-way bills without e-invoice details for B2B, and B2E transactions from March 2024.e-Invoice has been operationalised since October 2020 for taxpayers with Annual Aggregate Turnover (AATO) above Rs. 500 Crores and eventually in a phased manner, e-invoice generation is made mandatory for taxpayers with AATO above Rs. 5 Crores. From day one, e-Invoice is seamlessly integrated with the e-Way bill system and accordingly, e-Way bills...
Investment In Shares In Indian Subsidiary 'Capital Account Transaction', Not Income: Delhi High Court
The Delhi High Court has held that investment in shares by a company in its Indian subsidiary is a “capital account transaction” which does not give rise to any income. Therefore, the same cannot be treated as income for taxation.Placing reliance on the earlier decision of Delhi High Court in Nestle SA v. Assistant Commissioner of Income Tax, the bench comprising of Acting Chief Justice Manmohan and Justice Mini Pushkarna held “It is settled law that investment in shares in an Indian subsidiary...
UP GST | No Interference Under Article 226 Unless Inherent Lack Of Jurisdiction Or Absence Of Relevant Material Established: Allahabad High Court
The Allahabad High Court has held that the writ court should not interfere in notice issued under Section 73 of the UP Goods and Service Tax Act, 2017 unless there is inherent lack of jurisdiction or complete absence of relevant material is alleged and established.Petitioner challenged the adjudication notice issued under Section 73 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any...
CBDT Exempts Activity Of Investment In Financial Product By Non-Resident Where Income Received In Offshore Banking Unit
The Central Board of Direct Taxes (CBDT) has exempted the activity of investment in financial products by non-residents where income is received in the account of the non-resident maintained with the Offshore Banking Unit.The Board empowered under section 10(4G)(ii) of the Income-tax Act, 1961 notified the activity of investment in a financial product by the non-resident, in accordance with a contract with non-resident entered into by a capital market intermediary, being a Unit of an...
GST ITC Refund Can't Be Rejected Merely On Ground Of Non-Supply Of Authenticated Document: Delhi High Court
The Delhi High Court has held that an input tax credit (ITC) refund cannot be rejected merely on the grounds of the non-supply of authenticated documents.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that the petitioner had uploaded documents; however, the system did not register the documents that were uploaded by the petitioner. The appellate authority records that the petitioner had not submitted any documents, which were submitted along with the reply.The...
Dept.'s Action Denying Immunity Benefit Merely Because Section 270A Penalty Was Initiated Is Erroneous: Rajasthan High Court
The Rajasthan High Court has held that the department's action of denying the benefit of immunity on the ground that the penalty was initiated under Section 270A of the Income Tax Act for misreporting of income is not only erroneous but also arbitrary and bereft of any reason, as in the penalty notice, the respondents have failed to specify the limb, "under-reporting" or "misreporting" of income, under which the penalty proceedings had been initiated.The bench of Justice Arun Bhansali and...