Tax
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...
Assessee Coerced To Deposit GST During Search: Delhi High Court Orders Refund
The Delhi High Court has directed the department to refund the amount deposited by the petitioner by making a payment of Rs. 23,70,000 in cash along with interest at a rate of 6% per annum.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that payments aggregating to Rs. 28,20,000 were made at 11:49 PM and at 12:38 PM during the search operations. The payments made by it were not voluntary but under compelling circumstances.The petitioner carries on a business in the...
ITC Reversal During Late Night Search Involuntarily: Delhi High Court Directs Dept. To Reverse ITC In Assessee's ECL
The Delhi High Court has directed the department to reverse the input tax credit (ITC) amounting to Rs. 22,14,226 in the petitioner's electronic credit ledger (ECL).“We do not find it difficult to accept that the petitioner may have found the circumstances intimidating and had, accordingly, agreed to reverse the ITC. We are unable to accept that the reversal of ITC was made voluntarily without any suggestion or encouragement by the officers,” the bench of Justice Vibhu Bakhru and Justice Amit...
SCN Lacked Time Or Date For Personal Hearing: Delhi High Court Directs Restoration Of GST Registration
The Delhi High Court has directed the restoration of GST registration as no opportunity for a hearing was accorded to the petitioner or assessee.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the show cause notice (SCN) does not mention any time or date for a personal hearing. Thus, the petitioner was not afforded a hearing to contest the SCN. The order cancelling the petitioner's registration is void as it has been passed in violation of the principles of natural...
Addition For Deemed Dividend Made Can Be Done In Hands Of Shareholder Only: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that addition for a deemed dividend made under Section 2(22)(e) of the Income Act can be done in the hands of the shareholder only.The bench of Yogesh Kumar (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the assessee is not a registered shareholder in the loan-given company, so the addition to the touchstone is not sustainable.The Assessing Officer made an addition under Section 68 for an unsecured loan...
ITAT Deletes Penalty For Default In Not Deducting TDS On Foreign Remittances
The Jaipur Bench of Income Tax Appellate Tribunal (ITAT) has deleted the penalty levied for default in not deducting TDS on foreign remittances.The bench of Sandeep Gosain (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) has observed that the assessee has deliberately not avoided TDS and there is no contumacious conduct on the part of the assessee.The ITO has passed an order under Section 143(3) of the Income Tax Act, 1961. During scrutiny proceedings, it was found that in the...
No Incriminating Material Was Found During Search: Delhi High Court Quashes S. 153A Proceedings
The Delhi High Court has held that the assessment for the assessment year 2011–12 was finalized on January 20, 2012, and no notice under Section 143(2) of the Income Tax Act was issued. As such, no assessment was pending on the date of the search action, i.e., October 29, 2013.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that during the search action against the respondent or assessee, no incriminating material was found, and the material in the form of a...
Tax Cases Weekly Round-Up: 3 To 9 December, 2023
Supreme CourtIncome Tax Act | To Compute Deduction Under S. 80-IA, Market Value Of Electricity Is The Rate At Which State Board Supplies Power : Supreme CourtCase Title: Commissioner Of Income Tax v M/s Jindal Steel & Power LimitedCitation: 2023 LiveLaw (SC) 1048The Supreme Court has held that for the purpose of computing deduction under Section 80 IA of the Income Tax Act, 1961, the rate at which the State Electricity Board supplies power to the consumers has to be taken as the market value...
West Bengal Passes Bill To Impose 28% GST On Online Gaming, Horse Racing, Casinos
The West Bengal government has passed a bill to impose 28% GST on online gaming, horse racing and casinos.The state government has notified the West Bengal Goods and Services Tax (Second Amendment) Bill, 2023.A measure to increase the GST from the current 18% to 28% on internet gaming, horse racing, and casinos was approved by the Bengal legislature on Thursday. As of October 1, 2023, numerous states have already implemented higher tariffs for these activities.After the proposal was approved by...
Delhi High Court Quashes Order In Revision In Respect Of Rs.1,000 Cr. LTCG Exemption Passed Against Buyer Of Non-Existing Seller
The Delhi High Court has held that a revisionary order under Section 263 of the Income Tax Act could not be passed against a non-existing seller entity by invoking Section 163 against the buyer.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the expression “agent” suggests that there is a principal in existence on whose behalf the agent acts. However, the buyer could not be considered an agent under Section 163 when the seller itself was not in existence.A...
DGFT Amends Export Policy Of Onion From “Free” To “Prohibited” Till March 31, 2023
The Directorate General Of Foreign Trade (DGFT) has amended the export policy for onions. The HS Code 0703 10 19, which was previously categorised as 'Free,' has been revised to 'Prohibited' until March 31, 2024.The Notification will come into effect from December 08, 2023. The provisions as under Para 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not be applicable under the Notification. The consignments of onions will be allowed to be exported on fulfilment of...
CBIC Exempts Imports Of Yellow Peas From BCD And AIDC Till March 31, 2024
The Central Board of Indirect Taxes and Customs (CBIC) has exempted the imports of yellow peas from basic customs duty (BCD) and Agriculture Infrastructure and Development Cess (AIDC) up to March 31, 2024.The exemption, effective from December 8, 2023, to March 31, 2024, is deemed necessary in the public interest as per the powers conferred by the Customs Act, 1962, and the Finance Act, 2021.The notification shall come into force with effect from the 8th of December 2023 and shall remain in...