Reopening The Assessment Based On Change Of Opinion, Not Valid: Gujarat High Court

The Gujarat High Court has held that the Assessing Officer cannot have any jurisdiction to issue the notice for reopening the assessment when the assessment is sought to be reopened beyond a period of four years.The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that there was a change of opinion by the Assessing Officer to reopen the assessment for the assessment year 2013-2014, more particularly when the issues raised in the reopening assessment were already...

Service Tax Not Payable On Intermediary In The Sale Of Space or Time For Media Agency On Commission Basis: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on intermediaries in the sale of space or time for media agencies on a commission basis.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that no evidence has been placed on record to establish that the appellant was providing "advertising agency services." The role of the appellant was limited to being an intermediary in the...

Once The Flat Buyer Cancels The Booking Builder Not Liable To Pay Service Tax: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that once the buyer cancelled the booking and the consideration for service was returned, the service contract got terminated, and once it is established that no service is provided, then refund of tax for such service becomes admissible.The bench of Ajay Sharma (a judicial member) has observed that the department was not correct in holding that the mere cancellation of bookings for flats does not mean...

Health Warning On Both Sides Of The Tobacco Product Packages Be Shown : CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has issued an instruction requiring health warnings to be printed on both sides of tobacco product packages, covering 85% of the display area.According to the Ministry of Health and Family Welfare, the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply, and Distribution) Act, 2003, is applicable to all tobacco products and covers the entire country.Section 7 provides...

Once Assessee Shows Genuineness Of Transactions, No Additions Can Be Made: Gujarat High Court

The Gujarat High Court has held that the assessee has discharged the primary onus to prove the creditworthiness of the transaction.The division bench of Justice Sonia Gokani and Justice Sandeep N. Bhatt has observed that the initial burden, even if not discharged at the level of the assessing officer, can be discharged by the production of documents before the CIT (Appeals), where two remand reports have been called for. Every transaction has been made through a banking channel, there is no...

CBIC To Implement The E-Waste (Management) Rules, 2022 w.e.f. April 2023

The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions regarding the implementation of the E-Waste (Management) Rules, 2022, which supersede the E-Waste (Management) Rules, 2016.The Ministry of Environment, Forestry, and Climate Change has notified the E-Waste (Management) Rules, 2022, in supersession of the E-Waste (Management) Rules, 2016, which shall come into force on April 1, 2023.The new rules have introduced the concept of a modified Extended Producer...

Assessee Entitled For Deduction On Export Benefits On Account Of The Refund Of Excise Duty: Gujarat High Court

The Gujarat High Court has upheld the tribunal’s order, by which it was held that the assessee was entitled to and eligible for deduction on export benefits on account of the refund of excise duty under Section 80IC of the Income Tax Act.The division bench of Justice Sonia Gokani and Justice Sandeep N. Bhatt has observed that the refund of excise duty was pivotal to the activities carried on by the assessee. Thus, it has been held that the payment of central excise duty has a direct nexus with...

Tribunal Being Fact-Finding Body, Unless Perversity Shown, High Court Can’t Interfere: Calcutta High Court

The Calcutta High Court has held that unless and until the order passed by the Tribunal suffers from any perversity or ignores any vital fact in an appeal under Section 260A of the Income Tax Act, the Court is not expected to interfere with the order.The division bench of Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharya has observed that the issues related to an erroneous and prejudicial order and the lack of proper inquiry on which the show-cause notice under Section 263 was issued are...

CBDT Extends Time Limit For Compliance To Seek Exemption under S. 54 To 54GB Of The IT Act

The Central Board of Direct Taxes (CBDT) has notified the extension of the time limit for compliance to be made for claiming any exemption under sections 54 to 54GB of the Income-tax Act, 1961.The Board had issued a circular dated June 25, 2021, which provided relaxation in respect of certain compliances to be made by taxpayers, including investment, deposit, payment, acquisition, purchase, construction, etc., for the purpose of claiming any exemption under the provisions contained in Sections...

Income Tax Act | Writ Petition Can Be Entertained To Examine If Conditions To Issue Section 148 Notice Are Satisfied : Supreme Court

The Supreme Court recently set aside an order of the Punjab and Haryana High Court which dismissed a writ petition filed by an assessee against a notice issued under Section 148A of the Income Tax Act 1961 for reopening assessment.The High Court had dismissed the writ petition on the ground of availability of alternative remedy. Taking exception to the High Court's approach, the Supreme Court observed that writ petitions have been entertained to examine whether the conditions for the...

Tax Cases Weekly Round-Up: 1 January to 7 January 2023

Supreme Court Non-Banking Finance & Leasing Companies Not Liable To Pay Interest Tax On Instalments Paid Under Hire Purchase Agreement : Supreme Court Case Title: M/s. Muthoot Leasing And Finance Ltd. versus CIT Citation : 2023 LiveLaw (SC) 7 The Supreme Court has held that non-banking finance and leasing companies are not liable to pay tax on the interest component included in the hire-purchase instalment paid under the hire purchase agreement. Sabka Vishwas Scheme : ...

Treated Water Obtained From CETP Attracts 18% GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has observed that treated water obtained from the Common Effluent Treatment Plant (CETP) attracts 18% GST.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the applicant is also a common effluent treatment plant engaged in collecting, conveying, treating, and disposing of effluents from its member dyeing and bleaching units and obtaining water by the process of reverse osmosis. The treated water is not used for drinking...