Section 54 Deduction Can't Be Disallowed Merely For Not Depositing LTCG In Capital Gain Account Scheme: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that deduction under Section 54 of the Income Tax Act cannot be disallowed merely for not depositing long-term capital gain (LTCG) that was not deposited in the capital gain account scheme.The bench of Saktijit Dey (Vice President) and M. Balaganesh (Accountant Member) has adopted a hyper-technical approach while dealing with the issue. When the basic conditions of Section 54(1) have been satisfied, the assessee remains entitled to...

CBIC Decides To Levy Anti-Dumping Duty On Synthetic Grade Zeolite 4A Imported From Thailand And Iran

The Central Board of Indirect Taxes and Customs (CBIC) has decided to levy anti-dumping duty on synthetic-grade zeolite 4A imported from Thailand and Iran.The Synthetic Grade Zeolite 4A falls under tariff items 2842 90 90, 2826 90 00, 2839 90 90 and 2842 10 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) which originates in, or exported from the Iran and Thailand and imported into India.The designated authority in its final findings concluded that the product had been...

Delhi High Court Quashes Income Tax Notice Issued Prior To Date Of Approval Of Resolution Plan

The Delhi High Court has quashed the income tax notices and orders issued prior to the date of approval of the resolution plan.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed the notices and orders pertaining to the income tax claims of the respondents or department pertaining to the period much prior to the date of approval of the resolution plan. The notices and orders were issued by the department subsequent to the public announcement under Section 15 of the Code...

No Illegality In Initiation Of Reassessment Proceedings After 10 Years Post-Search Under New Regime: Jharkhand High Court

The Jharkhand High Court had held that A.O. was justified in reopening the assessment for A.Y. 13–14 for 10 years as they had rightly taken previous sanction from the competent authority.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that w.e.f. April 1, 2022, the legislature expanded the scope for revenue in search proceedings via amendment in Section 149(1)(b) by including entries in books of account apart from assets and expenditure. The records suggest that...

VAT Applicable On Sale Of Repossessed Vehicles: Delhi High Court

The Delhi High Court has held that the sale of repossessed vehicles is subject to the charge of value-added tax (VAT).The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that notices have been issued to the petitioner demanding VAT on the sale of repossessed vehicles and not on the transaction of financing the vehicles at the initial purchase.The petitioner/assessee, Indusind Bank, is a scheduled bank, and its challenge is premised on the ground that the expansive definition...

Roving Inquiry As Per Order Of Special Judge (PC Act) By GST Dept. Delhi High Court Quashes Order

The Delhi High Court has quashed the special judge's directions for conducting a roving inquiry by the GST department in the absence of any statutory provisions.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that apart from the directions issued in terms of the order dated April 5, 2023, there were no reasons for the respondent to initiate the search against the petitioners under Section 67(1) of the CGST Act. The authorization issued is thus patently erroneous, as none...

Delhi High Court Directs GST Dept. To Pay GST ITC To IOCL

The Delhi High Court has allowed the refund of accumulated Input Tax Credit (ITC) due to the inverted duty structure to Indian Oil Corporation Limited (IOCL).The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the rate of tax chargeable on inputs other than LPG, which are higher than the rate of GST chargeable on bottled LPG. The ITC has accumulated on account of the rate of tax on such inputs being higher than the output supply – bottled LPG.The petitioner/assessee is a...

Tea Stored In Warehouse Is An Agricultural Produce, Not Exigible To Service Tax: Bombay High Court

The Bombay High Court has issued a writ of certiorari against the Appellate Authority of Advance Ruling (AAAR) and held that “tea” stored in warehouses is agricultural produce and is not eligible for service tax.The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that a writ of certiorari can be issued only when there is a failure of justice and that it cannot be issued merely because it may be legally permissible to do so. There must be an error apparent on the face of...

Patna High Court Grants Relief to Cooperative Society, Rules Solid Waste Management Activity Exempt from BGST

In a recent legal development, the Patna High Court has ruled in favor of a Cooperative Society registered under the Bihar Goods and Services Tax Act, 2017 (BGST Act), stating that the Solid Waste Management Activity undertaken by the petitioner is exempt from BGST. The court quashed assessment orders and demand notices against the Cooperative Society, emphasizing that there is no supply of goods involved in the solid waste management disposal work awarded to the petitioner.A division bench of...

Delhi High Court Quashes Final Assessment Order Passed By AO Without Waiting For DRP's Directions Mandated U/s 144C

The Delhi High Court has set aside the final assessment order and the consequent notices and computations that were passed without waiting for the directions issued by the Dispute Resolution Panel (DRP) as per the mandate of Section 144C of the Income Tax Act.The bench of Acting Chief Justice Manmohan and Justice Mini Pushkarna has observed that once the objections have been filed by the assessee against a draft assessment order within the time limit prescribed under Section 144C(2)(b), the rest...

GST Officers Should Not Pressurise Taxpayers To Pay Tax Not Following Procedure: Delhi High Court

The Delhi High Court has held that it is impermissible for the officers to pressurize the taxpayers to pay tax without following the requisite procedure, notwithstanding that it may be apparent that such tax is due and payable.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the assessee's statement cannot be read as acknowledgement of any liability to pay ITC. It merely records that the visiting team informed the petitioner that the registration of the supplier, M/s...

Delhi High Court Allows Exemptions Claim Of Amazon On Echo Show 5, Echo Dot 4th Generation Under Customs Notification

The Delhi High Court has held that Echo Show 5, Echo Dot 4th Generation, and Echo Dot 4th Generation with Clock are eligible to claim exemptions in accordance with SI. No. 20 of the Notification dated June 30, 2017.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that merely because these devices could, if so chosen by the user, also be used as mere speakers, the same would not justify recognizing their primordial attribute to be that of a speaker alone.The...