Tax
Priority Of The Secured Creditor Over Govt. Dues Under SARFAESI Act, 2002: Bombay High Court
The Bombay High Court held that priority belongs to the secured creditor in respect of the dues of the Central government, state government, or local authority under Section 26-E of the SARFAESI Act, 2002.The bench of Justice B. P. Colabawalla and Justice M.M. Sathaye has observed that the statute goes quite far, and it is not only revenues, taxes, cesses, and other rates payable to the State Government or any local authority but also those payable to the Central Government that would have...
Consideration Received By Colgate Palmolive Malaysia From It’s Indian Entity For Providing Access To SAP System Is Not Royalty, Not Taxable : Bombay High Court
The Bombay High Court has held that consideration received by assessee Colgate Palmolive's Malaysian arm from its Indian entity for providing access to System Analysis Program Development (SAP) system is not taxable as royalty.The bench of Justice K.R.Shriram and Justice Firdosh P. Pooniwalla has observed that the payment of USD 11,80,500 made by Colgate Palmolive (India) Limited (CPI) to the Assessee could not have been brought to tax under the Act as equipment royalty.The appellant/assessee,...
Income-Tax Dept. Cannot Ignore The Valid TRC Issued By The Govt.: Bombay High Court Allows DTAA-Benefits To Alibaba Singapore
The Bombay High Court has granted the benefit of the India-Singapore Double Tax Avoidance Agreement (DTAA) to the e-commerce platform Alibaba Singapore.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla upheld the order of the ITAT that if the Revenue was so convinced that the assessee’s activity in India with various subscribers was carried out by Alibaba Hong Kong, then the department was expected to act against Alibaba Hong Kong and not the assessee, i.e., Alibaba...
CTO For Enhanced Production Capacity Issued After SC’s Order Fixing Total Import Limit; Importer Not Entitled To Proportionate Increase In Import Quota: Supreme Court
The Supreme Court has upheld the decision of the Delhi High Court which set aside the increased quota allocated for import of raw pet-coke (RPC) based on the “Consent to Operate” (CTO) issued to the importer for an enhanced production capacity, after the top court’s order dated 09.10.2018. The bench of Justices S. Ravindra Bhat and Dipankar Datta remarked that the Andhra Pradesh Pollution Control Board (APPCB) had issued the CTO for the additional quantity after the Supreme Court’s order dated...
Purchase And Sale Of Liquor By The Corporation Will Not Fall Within The Ambit Of BAS And Is Not Taxable: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the corporation will not fall within the ambit of Business auxiliary services (BAS) and would, therefore, not be taxable.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that if the Corporation was engaged in the sale and purchase of liquor for the State, then no Service Tax was payable.The State Government of Rajasthan incorporated the Corporation...
Excavation And Raising Of Ore Classifiable Under “Business Auxiliary Service” And Not Under “Mining Service”: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excavation and raising of ore are classifiable under "business auxiliary service" and not under "mining service".The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that where there is excavation or raising of ore, the same would not be classifiable under site formation service. The activity of excavating boulders would also not be a service...
Bombay High Court Quashes Reassessment Proceedings Initiated To Tax 'Share Premium' Of Rs. 679.32 Crores
The Bombay High Court has quashed the reassessment proceedings initiated to recover the tax share premium of Rs. 679 crores.The bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the AO had only lagged the share premium amount of Rs.679.32 crores, which according to him was chargeable to tax that had escaped assessment, and did not question the amount of Rs.68 lakhs received by the Petitioner company representing the value of Rs.68 lakhs of shares of the face value of...
No Tax Can Be Levied On The Principle Of Estoppels: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that no tax can be levied on the principle of estoppel. Just because the Assessee has shown the receipt or income in the wrong head does not make him liable for tax.The bench of N. K. Choudhry (Judicial Member) has observed that management licence fees are taxable under the heading "Income from Business" and not "Income from House Property" when granting licences to manage and operate hotel premises.The appellant/assessee...
Once The Export Obligation Is Discharged, Customs Dept. Could Not Initiate Proceedings Against Assessee: Punjab & Haryana High Court
The Punjab and Haryana High Court has held that once the export obligation is discharged, the customs department cannot initiate proceedings against the assessee.The bench of Justice Ritu Behari and Justice Manisha Batra observed that 50 MT of Coco Butter was lost during transit from the port to the factory, and this information was given to the department. But the lost quantity had been replaced by the respondent by purchasing the Cocoa Paste from the local market to fulfill its export...
Assessee Entitled To Claim Depreciation In Respect Of Assets On The Actual Cost Of Assets: Bombay High Court
The Bombay High Court has held that the assessee is entitled to claim depreciation in respect of any assets based on the actual cost of the assets.The bench of Justice K.R. Shriram and Justice M.M. Sathaye observed that the actual cost of the assets will be the actual cost that the assessee paid to the predecessor after revaluing the assets, and certainly, the assessee will be entitled to claim depreciation for the subsequent years on the basis of the actual cost paid.The respondent/assessee is...
Konkan Railway Not Liable To Pay Service Tax On Use Of Mangalore-Roha Line: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Konkan Railway is not liable to pay service tax on the use of the Mangalore-Roha Line.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that both the Konkan Railway Corporation Ltd. and Indian Railways are not separate entities.The appellant/assessee, Konkan Railway Corporation Ltd. (KRCL), entered into an agreement on 15.7.2002 with the...
Tax Cases Monthly Round-Up: June 2023
Indirect TaxesDelhi High CourtShow Cause Notice Lacks Reasons In Detail For Denial Of Refund Of ITC To Mcdonald’s India: Delhi High CourtCase Title: M/S Mcdonalds India Pvt. Ltd. Versus Additional CommissionerCitation: 2023 LiveLaw (Del) 479The Delhi High Court has held that the show cause notice lacks reasons in detail for the denial of refund of Input Tax Credit (ITC) to Mcdonald's India.Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST RegistrationCase Title: Rishiraj...