Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court

The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot make additions to assessee’s income in respect of completed/unabated assessments if no incriminating material has been found during the course of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961. However, the bench comprising Justices C.T. Ravikumar...

Subscription Amount Received From Subscribers Of E-Journals Cannot Be Treated As Royalty: Delhi High Court

The Delhi High Court has held that the subscription amount received from subscribers of e-journals cannot be treated as royalty.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the subscription amount cannot be treated as royalty, having regard to the fact that there is nothing on record to suggest that the respondent or assessee has granted the right in respect of copyright to the concerned subscribers of the e-journals. All that the respondent or assessee did...

Capital Gain Exemption Allowable On Construction Of Residential House Completed Within 3 Years: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), has held that the claim of capital gain exemption under Section 54 of the Income Tax Act, 1961 on construction of residential house completed within 3 years is allowed and removed the penalty levied under Section 271(1)(c) of the Income Tax Act. The assessee, Hemant Shridhar Phatak, in its return of income claimed exemption of Rs.45,46,285/- u/s. 54 of the Act on long term capital gains from sale of a residential house. The...

No Penalty Under Section 129(3) Of CGST Act Could Be Imposed Without Providing A Hearing Opportunity U/S 129(4) Of The Act

While observing that a petitioner’s response to the show cause is required to be considered after due opportunity of hearing, in accordance with the statutory provisions, the Patna High Court has overturned the penalty imposed on a petitioner for moving goods without a valid e-way bill.The Court ruled that no penalty under Section 129(3) of the Central Goods and Services Tax (CGST) Act could be imposed without providing a hearing as prescribed under Section 129(4) of the Act.The case revolved...

CBDT Issues Clarification On Taxability Of Income Earned From Off-Shore Investments In Investment Fund Routed Through An AIF

The Central Board of Direct Taxes (CBDT) issued a clarification on the taxability of income earned by a non-resident investor from outside India (off-shore investment) routed through an investment fund.The Circular was made applicable to Category I or Category II Alternative Investment Funds (AIFs) regulated under Securities and Exchange Board of India (SEBI) regulations.By the Finance Act, 2023, the definition of 'investment fund' under the Income-tax Act, 1961 was amended to include reference...

Ranger And Brutus Vehicles Imported By Polaris India Are Not Designed For Transportation Of Persons: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Ranger and Brutus Vehicles imported by Polaris India are not designed for the transportation of persons.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya, (Technical Member) has observed that the Ranger (non-electric) Vehicles deserve to be classified under CTH 8704 and the Ranger (electric) and Brutus Vehicles deserve to be classified under CTH 8709.The appellant/assessee, Polaris...

ITAT Disallows Interest Paid On Loan Taken For Paying Compensation To Family Members Pursuant To Arbitral Award On Family Settlement

The Panaji Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the interest paid on a loan that was taken for paying compensation to the assessee’s family members pursuant to an arbitral award on family settlement.The bench of R.S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member) has observed that the expenses incurred by the assessee for paying interest on the loan taken are not related either to the cost of acquisition, the cost of improvement, or the cost of...

No Excise Duty Payable On Waste Or Rubbish, Which Is Thrown Up In The Course Of Manufacture: CESTAT

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Waste or rubbish that is thrown up in the course of manufacture cannot be said to be a product of manufacture and cannot be subject to excise duty.The bench of Ajay Sharma (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that Waste Pickle Liquor (WPL) is nothing but waste that emerges in the process of manufacturing steel articles or finished goods. It’s not an end product...

Knowledge Is A Necessary Element For Committing Abetment : Delhi High Court Quashes Penalty Against Customs Broker

The Delhi High Court has quashed the penalty against customs brokers on the grounds that knowledge is a necessary element for committing abetment. The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that knowledge of a wrongful act of omission or commission, which rendered the goods liable for confiscation under Section 111 of the Customs Act, is a necessary element for the offence of abetting the act.The appellant had preferred the appeal against an order passed by the...

Gujarat High Court Quashes Non-Speaking Cryptic Order Of GST Registration Cancellation

The Gujarat High Court has clarified that an order for the cancellation of registration passed without providing any reasons is a non-speaking order and therefore is liable to be set aside. The above ruling delivered by the division bench of Justices Vipul M Pancholi and Devan M Desai, came in response to a petition filed by Om Trading, a registered business under the Goods and Services Tax Act, challenging the cancellation of their registration certificate by the Assistant Commissioner...

State GST Dept. Doesn’t Have Jurisdiction To Retain Amount Of Tax On Export Transactions: Bombay High Court

The Bombay High Court has held that CGST/MGST authorities would not have jurisdiction to retain the amount of tax on export transactions.The bench of Justice G. S. Kulkarni and Justice Jitendra S. Jain has directed the state government to transfer the amount to the Central Government.The petitioner was required to deposit tax on the export transaction in question with the authorities under the CGST Act and/or the MGST Act. The petitioner had taken a clear position that authorities would not have...

Gujarat High Court Grants Assessee Permission to Pay Tax Liability in Installments, Lifts Bank Account Attachment

The Gujarat High Court has overturned the decision of the Adjudicating Authority and granted permission to an assessee to fulfill their tax liability through installment payments, consequently lifting the provisional attachment of the assessee’s bank account. The above order delivered by Justice NV Anjaria and Devan M Desai, came in response to a Special Civil Application, whereby the petitioner prayed before the court seeking permission to make payment towards the outstanding tax...