Information Triggering Reassessment Proceedings Needs To Be Furnished To The Assessee: Delhi High Court

The Delhi High Court has held that the underlying information or material that formed the basis for triggering the assessment or reassessment proceedings was required to be furnished to the assessee.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has noted that the petitioner has indicated that it will file a further response once the information or material is provided, and even if the information or material is not provided, it will reserve its right to file a...

Sale Consideration Out Of Transfer Of Capital Asset Is Liable To Capital Gain: Gujarat High Court

The Gujarat High Court has held that the detachable warrant has an existence of its own along with the debenture purchased by the assessee for a sum of Rs. 50. The realization would be a sale consideration arising out of the transfer of a capital asset and is subject to capital gain.The division bench of Chief Justice Aravind Kumar and Justice Ashutosh Shastri observed that the detachable warrant has a separate existence and that, as such, a portion of the debenture's cost is attributable to the...

Tax Cases Weekly Round-Up: 22 January to 28 January 2023

Supreme Court Supreme Court Sets Aside Bail Condition To Deposit Rs 70 Lakhs In Case For Wrongfully Claiming ITC Case Title: Subhash Chauhan Versus UOI Citation: 2023 LiveLaw (SC) 61 The Supreme Court has overturned a bail condition imposed by the High Court that a person accused of illegally claiming Input Tax Credit must deposit Rs. 70 lakhs, the alleged amount of improperly claimed ITC. Income Tax Act - For Block Assessment, Normals Procedure Not Applicable; Interest...

Explanation 2 To S. 37(1) of Income Tax Act, Which Bars Deduction of CSR Expenses, Is Prospective In Nature: Delhi High Court

The Delhi High Court has reiterated that Explanation 2 to Section 37(1) of Income Tax Act, 1961, inserted by the Finance Act, 2014, which bars deduction of CSR expenses while computing income from business or profession, is prospective in nature. The bench of Justices Rajiv Shakdher and Tara Vitasta Ganju remarked that deductibility of CSR expenses under Section 37(1), prior to its amendment by the Finance Act, cannot depend upon how the funds are spent by the recipient. The...

Since Investigation By DGGI Started Prior To Filing Of Application, AAR Order Is Invalid : Andhra Pradesh High Court

The Andhra Pradesh High Court has ruled that the term ‘any proceedings’ referred to in the proviso to Section 98(2) of the CGST Act/ Andhra Pradesh GST Act (APGST Act), includes within its ambit the investigation initiated against the applicant under the said Act. The bench of Justices U. Durga Prasad Rao and T. Mallikarjuna Rao noted that the proviso to Section 98(2) puts an embargo on the authority of the AAR to admit an application where the question raised in the said application is...

Supreme Court Stays Madras High Court’s Order Directing Payment of Tax On Manufacture Of Water Borehole Drilling Rigs

The Supreme Court has stayed the order passed by the Madras High Court directing the payment of a minimum 4% tax on the manufacturing of the water borehole drilling rigs.The division bench of Justice Krishna Murari and Justice C.T. Ravi Kumar has observed that tax at the rate of 4% has already been deposited by the petitioner. The direction in the order to pay another 4% shall remain in abeyance until the next date of listing.The petitioner challenged the order passed by the respondent, which...

Extension Of Limitation To Issue Order Under S. 73 Of CGST Act Would Also Extend Time Limit To Issue SCN: Kerala High Court

The Kerala High Court has ruled that when the time limit for issuing an order under Section 73(10) of the CGST Act stands extended by a notification, the time limit for issuance of show cause notice under Section 73(2) would also stand extended. The bench of Justice Gopinath P. was dealing with a writ petition challenging an order passed under Section 73 of the CGST/SGST Act on the ground that the show cause notice was not issued within the time specified under Section 73(2). ...

Merely Making Unsustainable Claim Will Not Amount To Furnishing Of Inaccurate Particulars Of Income: ITAT

The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that the mere making of a claim, which is not sustainable by the law itself, will not amount to furnishing inaccurate particulars of income.The bench of S.S. Vishwanethra (Judicial Member) has observed that the appellant cannot be held guilty of furnishing inaccurate particulars of income, and, therefore, the Assessing Officer was not justified in levying a penalty under Section 271(1)(c) of the Income Tax Act.The...

Claim That Investment In Shares Was A Capital Account Transaction, Non-Application Of Mind By AO: Delhi High Court Quashes Reassessment Notice

The Delhi High Court has quashed the reassessment notice as the AO failed to apply his mind as to whether an investment in shares was a capital account transaction.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the principal allegation against the assessee is that it purchased shares of an Indian company and that this led to the escapement of income chargeable to tax. The central issue to which the AO should have applied his mind is whether the...

Writ Court Can’t Classify Products Under Customs Tariff Act, Technical Analysis Is Required: Calcutta High Court

The Calcutta High Court has held that a writ court cannot answer the classification of products under the Customs Tariff Act as it requires technical analysis.The single bench of Justice Md. Nizamuddin has observed that a writ court in the exercise of its constitutional writ jurisdiction under Article 226 of the Constitution of India should not act as an expert to scrutinize the composition and mode of manufacture of a product and do the job of classifying a product as to under which...

Supreme Court Sets Aside Bail Condition To Deposit Rs 70 Lakhs In Case For Wrongfully Claiming ITC

The Supreme Court has overturned a bail condition imposed by the High Court that a person accused of illegally claiming Input Tax Credit must deposit deposit Rs. 70 lakhs, the alleged amount of improperly claimed ITC.The petitioner contended that there was no final assessment in respect of the wrongful availment of ITC under the GST Act. Hence, it cannot be presumed that the appellant is under a legal obligation to pay the amount.Additional Solicitor General of India KM Nataraj fairly stated...

Specially Distinguished Record Of Service Medal To 29 Officers: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has notified the names of 29 Officers for appreciation certificates and medals for “Specially Distinguished Record of Service”.Each year, the CBIC’s officers and staff are given consideration for Presidential Award of Appreciation Certificates and Medals for "Exceptionally Meritorious Service rendered at the Risk of Life" and for "Specially Distinguished Record of Service" on the basis of their attaining and maintaining excellence in the...