Tax
CBDT Notifies Authority To Share Info Of Income-Tax Assessees For Proper Implementation Of Welfare Schemes In Tamil Nadu
The Central Board Of Direct Taxes (CBDT) has notified the Authority for sharing of information regarding income-tax assessees for Centrally sponsored schemes and welfare schemes for Tamil Nadu.The Secretary (Information Technology & Digital Service Department), Directorate of e-Governance, Government of Tamil Nadu has been notified by the Board empowered under Section 138 of the Income Tax Act. The Authority shall be responsible to share information regarding income-tax assessees for the...
Tax Cases Weekly Round-Up: 12 February To 18 February 2023
Delhi High Court Delhi High Court Stays Reassessment Order Based On Internal Audit Objection Case Title: Kum Kum Kohli Versus ACIT The Delhi High Court has stayed the reassessment order based on an internal audit objection. The division bench of Justice Rajiv Shadher and Justice Tara Vitasta Ganju has observed that the expression "any audit objection" was introduced only by the Finance Act, 2022, although with effect from April 1, 2012. Prior to the amendment, the expression...
GSTIN Introduces Negative Values in Table 4 of GSTR-3B
The Goods and Service Tax Network (GSTN) has introduced negative values in Table 4 of GSTR-3B.The government has notified a few changes in Table 4 of Form GSTR-3B to enable taxpayers to report correct information regarding ITC availed, ITC reversals, and ineligible ITC. According to the changes, the net ITC is to be reported in Table 4(A), and the ITC reversal, if any, is to be reported in Table 4(B) of GSTR-3B.Currently, in GSTR-3B, credit notes (CN) are being auto-populated in Table 4B(2) as...
GST Act Can’t Be Interpreted To Deny Right To Carry Trade And Commerce By Citizens: Bombay High Court
The Aurangabad Bench of the Bombay High Court has held that the provisions of the GST enactment cannot be interpreted so as to deny the right to carry on trade and commerce to any citizen or subject."The constitutional guarantee is unconditional and unequivocal and must be enforced regardless of shortcomings in the scheme of GST enactment. The right to carry on trade or profession cannot be curtailed, contrary to the constitutional guarantee under Art. 19(1)(g) and Article 21 of the Constitution...
IBC Has Overriding Effect On All The Acts Including Income Tax Act: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Insolvency and Bankruptcy Code (IBC) has an overriding effect on all acts, including the Income Tax Act, as per Section 178(6) of the Income Tax Act, effective from November 1, 2016.The bench of Yogesh Kumar U.S. (Judicial Member) and Pradip Kumar Khedia (Accountant Member) has observed that no proceedings can be initiated against the corporate debtor, including proceedings before the Tribunal, income tax proceedings,...
Notification Under S. 5 of FTDR Act Can’t Be Applied Retrospectively To Refuse Advance Authorization To Importer: Delhi High Court
The Delhi High Court has ruled that a notification issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act), which empowers the Central Government to formulate and announce the foreign trade policy, cannot be applied retrospectively by the Central Government. The bench of Justice Prathiba M. Singh held that once a notification issued under Section 5 of the FTDR Act is quashed by the Court, the same cannot be relied upon by the Directorate General of...
Mosquito Repellent 'Good Knight' Is An Insecticide, 4% VAT Applicable: Orissa High Court
The Orissa High Court has held that the mosquito repellent "Good Knight" sold by Godrej Sara Lee Ltd. is an insecticide.The division bench of Chief Justice S. Muralidhar and Justice M.S. Raman has upheld the order of the tribunal and noted that the mosquito repellant is an insecticide within the meaning of that expression in Entry 30 of Part II of Schedule B and, therefore, a 4% tax is applicable.The department has challenged the orders of the ACST and the Tribunal. The tribunal has held that...
No Excise Duty Payable On Empty Barrels Used Only For Packing Material: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no excise duty is payable on empty barrels used only for packing material.The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the empty barrels are only packing materials in which the inputs are received, and these barrels are not generated during the process of manufacture. Therefore, no excise duty can be charged even on that...
CESTAT Allows Cenvat Credit To Delhi Metro Rail Corporation On Consulting Engineer’s Services
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted Delhi Metro Rail Corporation a cenvat credit for consulting engineer services.The bench of Anil Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the input credit on a consulting engineer’s service was 100% allowable under Rule 6(5) read with Rule 2(l) of the Cenvat Credit Rules.While implementing the Delhi Metro project, the appellant/assessee hired a consulting...
S. 124 of Finance Act, 2019 Not Violative of Article 14: Punjab & Haryana High Court
The Punjab and Haryana High Court has upheld the constitutional validity of Sections 124(2) and 130(2) of the Finance Act, 2019, which deal with the ‘Vivad se Vishwas Scheme’ (VSV Scheme), dismissing the contention that the said provisions were violative of Article 14 of the Constitution of India since they deny refund to the assessee/ declarant even if the amount already deposited by it exceeds the amount payable under the Scheme. The bench of Justices Tejinder Singh Dhindsa and Pankaj...
New ITR Forms For AY 2023-24: Know The Key Changes
On February 10, 2023, the Central Board of Direct Taxes (CBDT) announced the tax return forms for the financial year 2022–2023.This year, ITR forms were announced in advance, which is a very positive step toward making compliance easier. The disclosure and reporting requirements on tax return forms will be better understood by taxpayers.Here are the key changes:Separate section for CryptoFor the Assessment Year 2023-2024, there will be a separate schedule for reporting income from virtual...
Classification Of Polypropylene Bags Can’t Be Changed Just To Avail Lower Tariff-Rate: Calcutta High Court Upholds AAAR’s Ruling
The Calcutta High Court, while upholding the ruling of the Orissa Appellate Authority, held that the classification of polypropylene bags cannot be changed just to avail a lower tariff rate.The single Justice Md. Nizamuddin has observed that the polypropylene bags manufactured by the petitioner are made from plastic granules and cannot be treated as textile articles.The assessee/petitioner is a manufacturer of polypropylene leno bags by weaving polypropylene strips (tapes). Polypropylene is a...