Non-Adherence To Mandatory Requirement Of Passing Draft Assessment Order Invalidates Final Assessment Order: Delhi High Court

The Delhi High Court has held that non-adherence to the mandatory requirement of passing a draft assessment order invalidates the final assessment order.The Bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula have observed that the omission to pass a draft assessment order is not merely a procedural oversight but a substantive lapse, which renders the subsequent order devoid of jurisdiction.The petitioner/assessee company, incorporated under the legal framework of Singapore,...

Subscription Fee Received By Deloitte Exempted From Tax On Principle Of Mutuality: Delhi High Court

The Delhi High Court has held that subscription fees received by Deloitte are exempted from tax on the principle of mutuality.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the expression “mutuality” flows from the expression “mutual”, which indicates reciprocity of arrangement in which the concerned parties have reciprocal rights or understanding or arrangement to abide by the mandate of the group for benefit of other members. The arrangement is...

There Should Be Finality To Assessment, Can’t Have Repeated Reassessment Proceeding On The Dictate Of Audit Party: Jharkhand High Court

The Jharkhand High Court has held that if the assessing authority is allowed to initiate repeated re-assessment proceedings against an assessee merely on the dictate of the audit party, there would not be finality of assessment. The assessee would have a sword of Damocles hanging over it in perpetuity.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that, as far as Sections 42(1) and 42(2) of the Jharkhand Value Added Tax Act (JVAT Act) are concerned, the...

Section 234B Interest Has To Be Charged On The Assessed Income And Not On The Returned Income: Jharkhand High Court

The Jharkhand High Court has held that interest under Section 234B of the Income Tax Act has to be charged on the assessed income and not on the returned income.The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that, as per Section 234B, interest has to be charged on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. The term “assessed tax” has been defined in...

Double Taxation Avoidance Agreement Cannot Be Enforced Unless Notified By Centre Under Section 90 Income Tax Act : Supreme Court

The Supreme Court has held that a Double Taxation Avoidance Agreement (DTAA) cannot be given effect to by a court, authority or a tribunal unless it has been notified by the Central Government under Section 90 of the Income Tax Act.The Court held that until the Government of India issues a notification as per Section 90, the DTAA treaty is not enforceable per se in Indian courts.A bench comprising Justices S Ravindra Bhat and Dipankar Datta held so while allowing a batch of appeals filed by the...

GST | ‘Cannot Go Beyond Your Pleadings’: Allahabad High Court Refuses To Quash Penalty Order Under Section 129

The Allahabad High Court, on Wednesday, refused to quash penalty order passed under Section 129 of the Goods and Service tax Act, 2017 on the ground that petitioner cannot be permitted to argue the case without there being any pleading in support of his arguments.The Court held that the petitioner had failed to make a specific averment in the pleadings before the writ Court regarding ‘no intention to evade tax’ when the same was recorded in the impugned order. Further, the petitioner had given...

Delhi High Court Upholds Sales Tax Demand Against Berger Paints On Stock Variations

The Delhi High Court has upheld the sales tax demand against Berger Paints on stock variations.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the discrepancies in the sales figures as well as the physical stock were not explained by the appellant. The assessing authority took a fair, just, and reasonable view of the matter in proceeding to carry out a best judgment assessment by enhancing sales by 10% of the net Goods Transport Operator (GTO) after deducting...

Data Recovered From The Pen Drive Does Not Have Any Evidentiary Value To Prove Clandestine Clearance Of Silico Manganese: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that data recovered from the pen drive does not have any evidentiary value to prove the clandestine clearance of silico manganese.The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the department has failed to corroborate the unaccounted clearance available in the data retrieved from the pen drive by verification at the customer's end. The data recovered from...

GST Act | Registration Can Only Be Cancelled U/S 29 Read With Rule 21, No Aid Can Be Taken From Any Other Statute: Allahabad HC Reiterates

The Allahabad High Court has reiterated that GST registration can only be cancelled under Section 29 of the Goods and Service Tax Act, 2017 read with Rule 21 of the GST Rules, 2017. For the purpose of cancellation of GST registration, no aid can be taken from any other statute.The bench comprising of Justice Piyush Agrawal, referring to the decision of Supreme Court Union of India and others Vs. Ind- swift Laboratories Limited, observed “The Hon'ble Apex Court in the case of Ind-Swift...

GST Exemption On Unbranded Broken Rice, 5% GST On Pre-Packaged And Labelled Ones: AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that 5% GST is applicable on the supply of broken rice if supplied as “pre-packaged and labelled,", whereas no GST shall be payable on unbranded supply.The bench of Tanisha Dutta and Joyjit Banik has observed that “broken rice” is classifiable under Chapter Heading 1006. Therefore, the rate of tax on the supply of “broken rice” would be the same as in the case of the supply of rice. In terms of Notification No. 06/2022, Central Tax...

CBDT Notifies Income Tax Exemption To Pension Fund The Stichting Pensiononds ABP

The Central Board of Direct Taxes (CBDT) has notified income tax exemption to pension funds, namely, the Stichting Pensioenfonds ABP.The Board empowered under sub-clause (iv) of clause (c) of Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 specified the pension fund, namely, the Stichting Pensioenfonds ABP as the specified person for the purposes of the section 10(23FE) in respect of the eligible investment made by it in India on or before the 31st day of March, 2024....

Gelatin Mass Waste Generated During Manufacturing Is A Waste Product, Demand For Reversal Of CENVAT Credit Is Unsustainable: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the product “Gelatin Mass Waste” generated during the course of the manufacture of finished goods is a waste product.The bench of D.M. Misra (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that the demand for reversal of CENVAT credit on the waste product is unsustainable in law.The appellant/assessee is in the business of manufacturing pharmaceutical products, viz., 'soft gel...