Physician Sample Sold To Distributor For Free Distribution To Doctors Covered Under Section 4(i)(a) Of Central Excise Act: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that physician samples sold to distributors for free distribution to doctors are covered under Section 4(i)(a) of the Central Excise Act.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) observed that the appellant has manufactured and cleared the goods, i.e., the physician sample, mentioning clearly on the pack that it is not for sale. Since the goods are not for sale and no...

GST - Input Tax Credit Cannot Be Denied To Purchaser Merely Because Seller Didn't Record Transaction In GSTR-2A Form: Kerala High Court

The Kerala High Court recently held that Input Tax Credit (ITC) cannot be denied to a purchaser merely on ground of non-reflection of the transaction in the GSTR-2A Form. Remanding the matter back to the Assessing Officer to give opportunity to the purchaser who is the petitioner herein, Justice Dinesh Kumar Singh observed:"If on examination of the evidence submitted by the petitioner, the assessing officer is satisfied that the claim is bonafide and genuine, the petitioner should...

Bombay High Court Quashes Re-Assessment Order Based On Change Of Opinion Without Any Tangible New Information

The Bombay High Court has quashed the reassessment order based on a change of opinion without surfacing any tangible new information.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that the petitioner has fully and truly disclosed all material facts necessary for the purpose of assessment. The AO issued the first assessment order after carefully scrutinising the material furnished by the petitioner. The respondent department has failed to furnish any reasons for...

CESTAT Directs Excise Duty Refund To IOCL Paid Under Protest

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the excise duty refund to Indian Oil Corporation Ltd. (IOCL) paid under protest.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant, IOCL, had paid the duty on the behest of the audit objection, which itself is a payment of duty under protest. Moreover, the appellant has also clearly mentioned in their TR-6 challan that the payment of duty is...

CBDT Extends Due Date For Educational & Charitable Institution Audit And Form ITR-7 For The Assessment Year 2023-24

The Central Board of Direct Taxes (CBDT) has extended the due date for filing of Form 10B/10BB and Form ITR-7 for the Assessment Year 2023-24.The due date of furnishing Audit reports in Form 10B/Form 10BB for the Financial Year 2022-23, which is 30.09.2023 has now been extended by the CBDT to 31.10.2023.Form 10B is associated with charitable institutions and religious trusts operating under Section 12AB, Form 10BB is associated with educational institutions and medical institutions operating...

Tax Cases Weekly Round-Up: 10 September To 16 September, 2023

Delhi High Court Overlooking Assesssee’s Reply Demonstrates Non-Application Of Mind By The AO: Delhi High Court Case Title: Aphv India Investco. Private Limited Versus ACIT The Delhi High Court has quashed the draft assessment orders, final assessment orders, and consequential demand on the grounds that the assessing officer inadvertently overlooked the email reply of the assessee, in which the assessee disclosed vital facts pertaining to its case. Delhi High Court Directs AWS...

TDS Not Required To Be Deducted At The Time Of Grant Of ESOP: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS is not required to be deducted at the time of grant of an employee stock ownership plan (ESOP).The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the basic objective of TDS is to ‘pay tax as you earn, and the taxes are not required to be deducted at source at the time of grant of an ESOP, but at the time the option is exercised by employees of the assessee and...

Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart

The Delhi High Court has directed the Value Added Tax (VAT) department to refund Rs. 6.62 crore to Flipkart along with interest.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the VAT department has acted arbitrarily in making numerous adjustments post-May 31, 2015, thus illegally depriving the petitioner, Flipkart, of the refund as claimed. The various adjustments clearly appear to have been made even though objections before the Objection Hearing Authority...

Civil Liability Imposed for Failing to Settle Tax Dues Due to Incorrect Input Tax Credit Claim, Attracts Penalty: Patna High Court

In a recent verdict, the Patna High Court upheld the imposition of interest and penalty on M/s Munna Traders, an assessee under the Bihar Goods and Services Tax Act (BGST Act). The penalties were enforced due to an excessive claim of input tax credit, with the Court deeming the penalty as a civil liability arising from the failure to pay the due tax, stemming from an erroneous input tax credit claim.The Division Bench comprising Chief Justice Vinod Chandran and Justice Partha Sarthy issued this...

DRP Can Give Directions Only In Pending Assessment Proceedings: Bombay High Court

The Bombay High Court has held that the Dispute Resolution Panel (DRP) could give directions only in pending assessment proceedings.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that once an assessment order is passed, rightly or wrongly, the assessment proceedings come to an end. Therefore, the DRP would have no power to pass any directions contemplated under sub-section 5 of Section 144C of the Income Tax Act.The petitioner's or assessee's return of income was...

Issuance Of Bonus Shares Does Not Amount To Transfer Of Property And Does Not Attract Section 56(2)(vii)(c): ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that in the issue of bonus shares, the money remains with the company and nothing comes to the shareholders as there is no transfer of the property and the provisions of Section 56(2)(vii)(c) of the Income Tax Act.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that when a shareholder gets bonus shares, the value of the original share held by him goes down, and the market value...

UP VAT | Burden To Prove Purchase From Registered Dealer On Assesee: Allahabad High Court

In a revision preferred by the Tax Department, the Allahabad High Court has held that the burden to prove that purchases were made from registered dealer lies on the Assesee claiming the same. The Department cannot be made to discharge a negative burden to prove that the sales were made from unregistered dealers. Perusing Section 16 (Burden of Proof) of the Uttar Pradesh Value Added Tax Act, 2008, bench comprising of Justice Piyush Agrawal held,“It is evidently clear that the burden of proof...