Tax
Areca Nuts Have Limited Shelf-Life, Risk Of Contamination: Madras High Court Directs Verification Of Certificate Of Origin
The Madras High Court has directed the verification of certificate of origin within 30 days and in case of failure of verification within time release the seized areca nut is subject to providing a bond for 100% of the value of goods but without insisting on a bank guarantee.The bench of Justice Senthilkumar Ramamoorthy has observed that areca nuts have a limited shelf-life and the risk of contamination and deterioration of goods increases over time.The petitioner/assessee is an importer of...
Employee Accepted Salary After TDS Deduction, Employer Responsible For Non-Deposit: Delhi High Court
The Delhi High Court has held that the employee accepted salary after TDS deduction and the employer is responsible for non-deposit of TDS.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the petitioner/employee, having accepted the salary after the deduction of income tax at source, had no further control over it in the sense that thereafter it was the duty of his employer, acting as a tax collecting agent of the revenue, to pay the deducted tax amount to the...
Order Cancelling GST Registration With Retrospective Effect Bereft Of Reasons, Liable To Be Quashed: Delhi High Court
The Delhi High Court has quashed the order cancelling GST registration with retrospective effect, bereft of reasons.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that one of the consequences of cancelling a taxpayer's registration with retrospective effect is that the taxpayer's customers are denied the input tax credit availed in respect of the supplies made by the taxpayer during such a period.The petitioner/assessee has challenged the show cause for...
Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVO
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 by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017.In the peculiar facts of the case, the bench comprising of Justice B.V. Nagarathna and Justice Augustine George Masih refused to interfere with the order of...
Service Tax Not Payable On Demat Or Depository Charges: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on demat or depository charges collected from sub-brokers.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that demat or depository charges are collected by the sub-brokers and paid to the depository participants who are authorised to levy such charges under the Depositories Act, 1996.The appellant/assessee, being the stock broker,...
There Cannot Be Sale Without Purchase: ITAT Deletes Addition
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the AO as there cannot be a sale without a purchase.The bench of Saktijit Dey (Vice President) and Pradip Kumar Kedia (Accountant Member) has observed that the exclusion of purchases from the trading results is not permissible without corresponding exclusion of the sales in such trading activity for arriving at a fair and balanced view. The action of the AO patently offends the rudimentary principle of...
Once Deduction Claim Of Education Cess Is Withdrawn, Assessee Immuned From Imposition Of Section 270A Penalty: Rajasthan High Court
The Rajasthan High Court has held that once the deduction claim for education cess is withdrawn, the assessee is immune from the imposition of a penalty under Section 270A of the Income Tax Act.The bench of Justice Vijay Bishnoi and Justice Munnuri Laxman has observed that neither in the assessment order nor in the subsequent show-cause notices, the Assessing Officer specify that the case of the petitioner-company is covered under which part of Section 270A(9). Even in the order, it is not...
Use Of Trademark Incidental To Advertisement Or Publicity Is A Business Income, Not Royalty And FTS: Delhi High Court
The Delhi High Court has held that the use of trademarks incidental to advertisement or publicity was held as neither royalty nor fees for technical services (FTS) but as business income.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that merely because the extensive services rendered by the assessee in terms of the Strategic Oversight Services Agreements (SOSA) also included access to written knowledge, processes, and commercial information in furtherance of the...
Scrutiny Notices Issued By NaFAC Addl. CIT Instead Of AO Under Central Charge Is Valid: Karnataka High Court
The Karnataka High Court upheld the validity of scrutiny notices issued by the National Faceless Assessment Centre (NaFAC) Addl. CIT instead of the Jurisdictional Assessing Officer (JAO) under central charge.The bench of Justice B. M. Shyam Prasad has observed that if the right to call in question the jurisdiction is left open to be raised at any stage, the proceedings will remain inconclusive, and that could not have been the intention of the legislature.The petitioner/assessee is a partnership...
2023 Annual Digest Of Indirect Tax Cases: Supreme Court And High Courts
Supreme CourtState Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023 Citation : 2023 LiveLaw (SC) 927 A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay High Court with respect to the validity of VAT Amendment Act in their respective states, made several significant...
2023 Annual Digest Of Direct Tax Cases: Supreme Court And High Courts
Supreme Court U.P. Trade Tax Act | 'Tinted Glass' To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from 'Plain Glass': Supreme Court Case Title: M/S Triveni Glass Limited v COMMISSIONER OF TRADE TAX, U.P. Case No.: 2023 LiveLaw (SC) 896 The Supreme Court has held that 'Tinted Glass Sheet' is different from 'Plain Glass sheet' and is thus liable to be taxed as “goods or wares made of glass” under Entry 4 of Notification No.5784 dated 07.09.1981, issued by...
Delay In Filing Return Bonafide: Himachal Pradesh High Court Allows Deduction To H.P. Housing & Urban Development Authority
The Himachal Pradesh High Court has allowed the deduction under Section 80IB(10) of the Income Tax Act to the H.P. Housing & Urban Development Authority as the delay in filing the return was bona fide.The bench of Chief Justice M.S. Ramachandra Rao and Justice Jyotsna Rewal Dua has observed that since the entitlement of the assessee to deduction had not been questioned by the department on merits, there was no justification for not viewing the delay in filing the return as bona fide.The...