Tax
Tax Cases Weekly Round-Up: 25 June To 1 July, 2023
Delhi High CourtAssessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores DemandCase Title: Darpan Kohli Versus Assistant Commissioner Of Income TaxThe Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.AO Unclear whether The Notice Is Issued To An Individual Or A Corporate Entity: Delhi High Court Quashes Reassessment NoticeCase Title: Home...
Andhra Pradesh High Court Quashes Suspension Order Of Customs Broker Licensee Passed Without Giving Opportunity Of Hearing
The Andhra Pradesh High Court has quashed the suspension order passed by the Customs Commissioner suspending the customs broker licence without giving the opportunity for a hearing.The bench of Justice U. Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa has observed that the Managing Director of the petitioner company was on judicial remand. Through repeated requests were made by the petitioner company, their request was rejected on the ground that the legal time frame fixed under the...
ITAT Deletes Disallowance On Ocean Freight Charges Paid To Korean AE
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the disallowance of ocean freight charges paid to Korean-associated enterprises (AE).The bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) has observed that as per Article 8 of the DTAA of India-Korea, the rentals of ships are in the nature of profit from the operation of ships or aircraft in international traffic carried on by an enterprise of a contracting state. The amount can be...
GST Provisional Attachment Order Not Valid After Expiry Of 1 Year: Bombay High Court
The Bombay High Court has held that the GST provisional attachment order is not valid after one year.The bench of Justice G.S. Kulkarni and Justice Jitendra Jain has observed that the communication dated April 21, 2022, provisionally attaching the Petitioner’s bank account is rendered illegal and invalid by virtue of the provisions of Section 83(2) of the CGST Act. The extension of the provisional attachment by communication dated April 19, 2023, was illegal.The petitioner/assessee challenged...
Charging Higher Fees By Charitable Institution Will Not Make It Commercial; CESTAT Allows Refund To Adani Institute Of Medical Sciences
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund to Gujarat Adani Institute Of Medical Sciences and held that merely by charging a higher fee, an institution cannot be treated as a commercial institute.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the Lower Authorities have also discarded the status of the appellant as a charitable trust on the ground that the institution has charged...
CBDT Extends Time Limits For Submission Of TDS/TCS Statements
The Central Board of Direct Taxes (CBDT) has extended the time limits for the submission of TDS and TCS Statements.The CBDT provides relaxation in the statement of deduction of tax for the first quarter of the financial year 2023–24, required to be furnished in Form No. 26Q or Form No. 27Q, on or before July 31, 2023, under Rule 31A of the Income-tax Rules, 1962, and may be furnished on or before September 30, 2023.The relaxation is provided in the case of the statement of collection of tax for...
CBDT Circular Allowing Benefit Only To Cases Where Appeals Are ‘Dismissed In Limine’ Is Arbitrary: Bombay High Court
The Bombay High Court has quashed FAQ 61 of the circular 21/2020 dated December 4, 2020, issued by the CBDT to the extent that it restricts appeals to those dismissed in limine’ on the ground that it was not only adverse to the interest of the assessee but also contrary to the object and reasons of the Direct Tax Vivad Se Viswas Act, 2020 (DTVSV-A).The bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that the additional qualification, viz. "in limine," added to the word...
Sales-Tax Exemption Certificate Has Overriding Effect Over VAT Notification: Karnataka High Court
The Karnataka High Court has held that the sales tax exemption certificate is valid for 7 years and could not have been rescinded before the period of eligibility expired as it is a sovereign assurance.The bench of Justices P.S. Dinesh Kumar and C.M. Poonacha has observed that the State Government discontinued sales tax-based incentives. However, the incentives already offered and committed were saved. By issuing a subsequent Notification under the Karnataka Sales Act, 1957 (KST Act), it was...
Bombay High Court Imposes Rs.50,000 Cost For Last Minute Application For Stay On LOCs To Travel Abroad
The Bombay High Court has imposed an Rs. 50,000 cost for a last-minute application for a stay on Look Out Circulars (LOCs) to travel abroad; however, the interim stay was granted on an LOC issued at the instance of the CBI.The bench of Justice G.S. Patel and Justice Neela Gokhale observed that the parties seeking to stay on any Look Out Circular (LOC) are required to apply to the Court in good time and not attempt to pressurize the Courts.The court, while expressing its displeasure, stated, "We...
CBDT Notifies Tolerance Range Of 1% For Wholesale Trading, 3% In All Other Cases For Assessment Year 2023-2024
The Central Board Of Direct Taxes (CBDT) has notified the tolerance range of 1% for wholesale trading and 3% in all other cases for the assessment year 2023-2024.“The Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C of the said Act and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent. of the latter in respect of wholesale trading and...
AO Unclear whether The Notice Is Issued To An Individual Or A Corporate Entity: Delhi High Court Quashes Reassessment Notice
The Delhi High Court has quashed the reassessment notice for non-application of mind by the department.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has directed the AO to recommence the proceeding if deemed necessary after gathering the relevant material that would show that income chargeable to tax has escaped assessment by the petitioner.The petitioner has challenged the notice issued under Section 148A(b) of the Income Tax Act, 1961.The petitioner contended that the...
Capital Gain To Be Taxed In Singapore: Bombay High Court Allows Capital Gains Exemption To FII
The Bombay High Court has granted the capital gains exemption to Foreign Institutional Investors (FII).The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla has observed that Singapore authorities have themselves certified that the capital gain income would be brought to tax in Singapore without reference to the amount remitted or received in Singapore. The AO could not have come to a conclusion otherwise.The assessee is registered as a Foreign Institutional Investor (FII) in...