Delhi High Court Quashes Non-Speaking Order Rejecting The Grant Of An LDC Permitting Deduction Of 0.01% TDS

The Delhi High Court has quashed the non-speaking order rejecting the grant of a lower deduction of tax certificate (LDC) permitting the deduction of 0.01% TDS.The bench of Chief Justice Satish Chandra Sharma and Justice Tushar Rao Gedela has observed that the reasons furnished by the Respondent/department qua the Application i.e., as to why the Petitioners’ request that TDS should not be deducted at a rate of 0.01%, hinges on broad generalisations in relation to the propriety of projected...

Bombay High Court Quashes FAO Order Passed After Two Years Of DRP Direction Against Vodafone Idea

The Bombay High Court has held that the assessment order dated August 31, 2023, passed by the Faceless Assessing Officer (FAO) two years after the Dispute Resolution Panel (DRP) directions, is time-barred and cannot be sustained.The bench of Justice K. R. Shriram and Justice Neela Gokhale has strongly recommended that a detailed inquiry be initiated on the failure on the part of the Faceless Assessing Officer concerned to act in accordance with the provisions of the Income Tax Act and the lack...

Iron Ore Fines Are Exempted From Payment Of Customs Duty: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that iron ore fines were exempted from payment of duty.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has observed that a let export order cannot be issued before payment of full duty by the assessee. In those circumstances, it cannot be said that a let export order was issued to the appellant on December 6, 2008. Therefore, the date of the export order is to be taken as...

Tax Agreement Between India, Saint Vincent And Grenadines For Exchange Of Information And Assistance In Collection With Respect To Taxes: CBDT

The Central Board of Direct Taxes (CBDT) has notified the tax agreement between the Government of the Republic of India and the Government of Saint Vincent and the Grenadines for the Exchange of Information and Assistance in collection with respect to taxes.The agreement was signed at Kingstown, Saint Vincent and the Grenadines on the 19th May of 2022.The Agreement entered into force on the 14th of February, 2023, being the date of the notifications of the completion of the procedures required...

Income Chargeable To Tax Escaping Assessment | Reassessment Proceedings Against Amalgamated Entity, MP High Court Quashes Order U/S 148A(d) Income Tax Act

Madhya Pradesh High Court has recently quashed reassessment proceedings initiated against a non-existent/amalgamated entity under Section 148 A of the Income Tax Act, holding that even the availability of alternative remedy has no bearing in such instances when the entity has ceased to exist pursuant to amalgamation.The division bench of Justices Sushrut Arvind Dharmadikari and Pranay Verma noted that there is no independent existence for a transferor company which is the assessee, when it has...

Interest Earned Deposited In The Consolidated Fund Of India By Way Of Challans: ITAT Deletes Income Tax Addition Against NHIDCL

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee, National Highways & Infrastructure Development Corp. India (NHIDCL), received funds in fiduciary capacity from the government and deposited with the Consolidated Fund of India the interest received on deposits kept in bank accounts out of funds received for infrastructure development projects.The bench of Yogesh Kumar US (Judicial Member) and B.R.R. Kumar (Accountant Member) has observed that the assessee,...

GST Act | Proceedings Ought Not To Be Initiated If Rectified Tax Invoices, E-Way Bills Produced Before Passing Detention Order: Allahabad HC

The Allahabad High Court has held that once rectified/ correct tax invoices and e-way bills are produced before the authorities before passing of the detention/ seizure order, the proceedings under the Goods and Service Tax Act, 2017 ought not to be initiated.Relying on the decision of the division bench of the Allahabad High Court in M/s Axpress Logistics India Pvt. Ltd. Vs. Union of India and others and M/s Bhumika Enterprises Vs. State of UP and others, the bench comprising of Justice Piyush...

In GST Regime All Details Are Available On Portal Of GST Department, Department Must Verify: Allahabad High Court Quashes Penalty Order

The Allahabad High Court has held that in the GST regime all details and returns filed are available on the portal of the GST Department and the authorities can verify from the portal the amount of tax deposited after filing of GSTR -1 and GSTR 3 B.While quashing the penalty order, Justice Piyush Agrawal held “Under the GST regime all details are available in the portal of GST department. The authorities could have very well verified as to whether after filing of GSTR-1 and GSTR 3 B how much tax...

Tax Cases Weekly Round-Up: 29 October To 4 November, 2023

Supreme Court Supreme Court Affirms Penalty On 'Zarda' Manufacturers For Misclassifying Product As 'Chewing Tobacco' For Central Excise Duty Case Title: Commr. Of Cen. Exc. Ahmedabad v M/S Urmin Products P. Ltd. And Others Citation: 2023 LiveLaw (SC) 949 The Supreme Court while adjudicating a matter wherein the Assesssee deliberately misclassified the ‘Zarda’ produced by it as ‘Chewing Tobacco’ for evading payment of a high duty as applicable to ‘Zarda’, has affirmed the...

Web Hosting Services Availed By The Assessee Do Not Constitute Royalty Or FTS Under India-Mauritius DTAA: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that web hosting services availed by the assessee do not constitute royalty or Fee for Technical Services (FTS) under the India-Mauritius Double Tax Avoidance Agreement (DTAA).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the web hosting services availed by the assessee do not constitute royalty or FTS, and hence payments made by the assessee to OIT Managed Services Mauritius in...

CENVAT Credit Refund Can’t Be Denied In Absence Of Self-Assessed Return Having Been Questioned, Reviewed Or Re-Assessed: Delhi High Court

The Delhi High Court has held that a CENVAT credit refund cannot be denied in the absence of the self-assessed return having been questioned, reviewed or re-assessed.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that a self-assessed return also amounts to an “assessment” and unless it is varied or modified in accordance with the procedure prescribed under the relevant statute, it cannot possibly be questioned in refund proceedings.The petitioner/assessee submitted...

Whether Fantasy Gaming Fall Within Actionable Claim Amounting To Betting And Gambling Or Based On Skills: Gujarat High Court Stays GST SCN, Issues Notice

The Gujarat High Court will decide on the issue of whether fantasy gaming falls within an actionable claim amounting to betting and gambling or based on skills.The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has issued notice to the GST department and restrained the GST department from taking any further steps on the adjudication of the show cause notice.The petitioner/assessee, NXGN Sports Interactive, submitted that the activity of the online claim that the petitioners...