Govt. Invites Suggestions From Industry And Trade Associations For Changes In Direct and Indirect Taxes in Budget 2023-24

The Ministry of Finance has invited suggestions from industry and trade associations for changes in direct and indirect taxes in Budget 2023-24.The Ministry of Finance would like to gain from the Trade Association's suggestions and viewpoints as it develops the proposals for the Union Budget of 2023–24.The industry and trade associations might send their recommendations for modifications to the structure, rates, and expansion of the tax base for both direct and indirect taxes, along with a...

Financial Benefits To Assessee Can't Be A Ground To Levy Interest Without A Statutory Provision: Bombay High Court

The Bombay High Court has ruled that penalty or interest on additional customs duty (CVD) and special additional duty of customs (SAD), or surcharge, which is not connected to the basic customs duty, cannot be imposed in the absence of an explicit substantive provision. The Division Bench of Justices K.R. Shriram and A.S. Doctor observed that there was no substantive provision which obligated the assessee to pay interest or penalty on CVD or SAD, leviable under the Customs Tariff Act,...

Payment Made By Assessee To Non-Resident Supplier Amount To "Royalty" And Liable To Deduct TDS: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the payment made by the assessee to the non-resident supplier would amount to royalty and there is an obligation on the part of the assessee to deduct tax at source.The two-member bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the introduction of Explanation 5 in Section 9(1)(iv) of the Income Tax Act has enlarged the scope of the definition of "Royalty".As per...

SCN Without Any Reasons: Delhi High Court Quashes Order Cancelling GST Registration

The Delhi High Court has quashed the order cancelling the GST registration as the Range Inspector has physically verified the premises, neither by serving any notice of the physical verification nor in the report generated after the verification was uploaded on the portal.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that there was an infraction of the provisions of Rule 25 of the CGST and the order has gone beyond the frame of the Show Cause Notice.The...

Charges Of Clandestine Removal Cannot Be Confirmed On The Basis Of Private Records Without Corroborative Evidence: CESTAT

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that charges of clandestine removal cannot be confirmed on the basis of private records, the authenticity of which was doubted by the manufacturer without any corroborative evidence.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the onus to establish clandestine activities, resulting in confirmation of demand is placed heavily on the Revenue and is...

TDS On NRI Payment: Delhi High Court Rejects Appeal By Revenue- Payment Found As Salary, Not Fees

The Delhi High Court, while upholding the order passed by the Income Tax Appellate Tribunal (ITAT), has held that the provision of TDS on NRI payments under Section 195 of the Income Tax Act has no application once the nature of payment is determined as salary and a deduction has been made under Section 192.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the real employer of the seconded employees continues to be the Indian entity and not the...

IT Exemption To Defence Personnel Invalidated From Service Due To Disability: ITAT Rejects Revenue's Contention

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax exemption shall be available to Defence Forces personnel who have been invalidated from service on account of bodily disability while in service.The two-member bench of Chandra Mohan Garg (Judicial Member) has deleted the addition made by the A.O. on account of disability pension not exempt from tax as the assessee had taken premature retirement at his own request.The appellant/assessee is a retired employee of...

Valuation Of Shares For The Purpose Of Gift Tax Should Take Into Consideration Limitation And Restrictions: Supreme Court

The Supreme Court has held that the valuation of shares for the purpose of gift tax must take into consideration the limitations and restrictions.The division bench of Justice Sanjiv Khanna and Justice J.K. Maheshwari has observed that the equity shares under the lock-in period were not "quoted shares", for the simple reason that the shares in the lock-in period were not quoted on any recognised stock exchange regularity from time to time. There are no current transactions relating to these...

Tax Cases Weekly Round-Up: 9 October To 15 October, 2022

Supreme court Supreme Court Directs Andhra Pradesh To Transfer To Jharkhand CST Collected From Tata Motors In Respect To Sale To APSRTC Case Title: Tata Motors Limited Versus Central Sales Tax Appellate Authority & Others Citation: 2022 LiveLaw (SC) 847 The Supreme Court has directed the state of Andhra Pradesh to transfer to Jharkhand the amount of central sales tax deposited by Tata Motors with respect to the sale of buses to the Andhra Pradesh State Road Transport...

Cess Received By Trust From Milk Societies, Against Sales Made , Not Voluntary; Can't Be " Corpus Donation": ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the Cess received by a trust from the milk supplying societies, against the sales made by them to the Cooperative Milk Producers Union, cannot qualify as a "Corpus Donation" under the Income Tax Act, 1961, since they are not voluntary in nature. The Bench of Siddhartha Nautiyal (Judicial Member) and Annapurna Gupta (Accountant Member) observed that the assessee trust- Dudhsagar Research & Development...

DGFT Notifies Procedure For General Authorisation for Export after Repair in India

The Director General of Foreign Trade (DGFT) has notified the procedure for general authorization for export after repair in India (GAER).The export of imported Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) items to the same entity abroad after repair in India will be allowed on the basis of a one-time GAER subject to post-reporting on a quarterly basis issued by DGFT, subject to the various conditions.The SCOMET items were imported to a designated/authorized...

GST Dept. To Consider Reply to SCN Sent By Assessee Through post and Not Portal: Madras High Court

The Madras High Court has held that the GST Department should consider a reply to a show cause notice even if it is sent by the assessee through the post and not the portal.While rejecting the objection of the department that the postal/physical reply to them shall not be considered, the single bench of Justice M. Nirmal Kumar has directed the department to give an opportunity for personal hearing to the petitioner, hear the objections, peruse the documents submitted and the explanations.The...