State GST Authority Can’t Prosecute If The Central Authority Has Already Initiated Action: Madras High Court

The Madras High Court has held that the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter.The bench of Justice Abdul Quddhose has observed that the petitioner will have to participate in the personal hearing and state all his objections with regard to the action launched by the State Authority under the TNGST Act, 2017. Unless and until the petitioner participates in...

Penalty For Non Appearance - Not Valid If No Attempt To Evade Tax Is Made Out: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that non-appearance before the Information Collection Centre (ICC) cannot be made a ground to initiate penalty proceedings if no attempt to evade tax is made.The division bench of Justice Ritu Bahari and Justice Manisha Batra has observed that the driver had produced the documents at I.C.C. and subsequently, at the time of checking, he showed all the invoices. There was no attempt to evade tax. Hence, the VAT appeal was allowed, and no case for the...

CBDT Notifies Centralised Processing Of Equalisation Levy Statement Scheme, 2023

The Central Board of Direct Taxes (CBDT) has notified the Centralized Processing of Equalization Levy Statement Scheme, 2023.The scheme shall be applicable with respect to the processing of the Equalization Levy Statements.Every assessee or e-commerce operator shall furnish the Equalization Levy Statement under sub-section (1) of Section 167 within the time stipulated under Rule 5(2) of the Rules.E-commerce operators may furnish an equalization levy statement or a revised equalization levy...

Delhi High Court Stays Reassessment Order Based On Internal Audit Objection

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 obtained in Explanation 1(ii) appended to Section 148 referred to the "Comptroller and Auditor General of India.""We are, prima facie, also of the view...

Jharkhand High Court Allows Migration Of The TDS Amount Under GST

The Jharkhand High Court has held that the unadjusted TDS amount has to be treated as an input tax credit amount and is required to be carried forward in the next succeeding months.The division bench of Acting Chief Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the unadjusted TDS amount would have been otherwise refundable to the petitioners if it were not allowed to be carried forward as excess input tax credit in the statutory format of a quarterly return (Form JVAT...

Service Tax Refund Can’t Be Denied On Input Services Wholly Consumed Within SEZ: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax refunds cannot be denied on input services that are wholly consumed within the SEZ.The bench of Ajay Sharma (Judicial Member) has observed that Section 26(i)(e) of the SEZ Act, 2005 specifically provides that all services imported into the SEZ to carry out authorized operations in the SEZ shall be exempt. In terms of Section 51 of the SEZ Act, the provisions of the SEZ Act shall have...

GST Dept. Empowered To Detain Vehicle And Seize The Goods: Calcutta High Court Upholds Penalty

The Calcutta High Court has held that the GST department was lawfully permitted to impose a penalty under Section 129 as well as the SGST as the goods were found to be detained in the territory of the state.The bench of Justice Bibek Chaudhuri has observed that Section 129 of the Central Goods and Services Tax Act, 2017, empowers the statutory authority to detain the vehicle and seize the goods. The goods shall be released only upon payment of a penalty equal to 200% of the tax payable on the...

Tax Cases Weekly Round-Up: 5 February to 11 February 2023

Supreme Court Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO Case Title: PCIT Versus Servant of People Society The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity. Delhi High Court Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court Case Title: Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. Versus ACIT Citation: 2023...

No GST Applicable On Supply Of Vouchers: Karnataka High Court

The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST. The bench of Justices P.S. Dinesh Kumar and T.G. Shivashankare Gowda remarked that vouchers, including Gift Vouchers and Cash Back Vouchers, are mere instruments accepted as consideration for supply of goods or services, which have no inherent value of their own. The Court concluded that vouchers would fall...

Expenses Incurred During Regular Course Of Business Cannot Be Treated As Capital Expenses: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that expenses incurred during the regular course of business cannot be treated as capital expenses.The two-member bench of Yogesh Kumar US (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that the payment was made towards the professional fee, which includes monthly retainer fees for the professional services.The assessee/respondent is a company stated to be engaged in the business of software development....

Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the disallowance under Section 14A of the Income Tax Act is not warranted if no exempt income is earned.The two-member bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that Section 14A envisages that there should be actual receipt of income, and hence Section 14A of the Act will not apply where no exempt income is received or receivable during the relevant previous year.The...

Assessee Filed ITR of Company Being A Director, But Failed To File Individual ITR; Mumbai Court Upholds Conviction Under S. 276CC of ITA

While upholding the conviction for offence under Section 276CC of the Income Tax Act, 1961, for wilful failure to furnish income tax return, a Mumbai Court has remarked that presumption of a culpable mental state can be derived from the admission of the assessee, who having filed the Income Tax Return of the Company of which he is a director, failed to file his individual Income Tax Return. The Court of Additional Sessions Judge, Dr. A. A. Joglekar, added that while prosecuting the...