Income Tax Dept. Can't Unreasonably Reject Proof Submitted By The Assessee: Calcutta High Court

The Calcutta High Court has held that the income tax department cannot unreasonably reject proof submitted by the assessee. The division bench of Justice T.S. Sivagnanam and Justice Bivas Pattanayak noted that the assessing officer brushed aside the explanation offered by the assessee by stating that merely filing PAN details and a balance sheet does not absolve the assessee from his responsibilities of proving the nature of transactions. The court observed that merely setting aside...

Inapplicability Of MOOWR Scheme On Solar Power Generating Units: Delhi High Court Says No Coercive Action

The Delhi High Court bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju issued notice and restrained the customs officer from taking any coercive action against the petitioners assailing the legality of Board Instruction No. 13/2022 dated 9.07.2022. The instruction was issued by the CBIC with regards to the inapplicability of the Manufacturing and Other Operations in Warehouse (no. 2) Regulations, 2019 (MOOWR Scheme) on solar power generating units.The MOOWR Scheme grants a...

DGFT Notifies Procedure For Submission Of Requests For Seeking IMC's Approval For Export Of Wheat Flour

The Director General of Foreign Trade (DGFT) has notified the procedure for submission of requests for seeking the approval of Inter-Ministerial Committees (IMC) for the export of wheat flour. Wheat flour (Atta) export is permitted subject to the recommendation of the Inter-Ministerial Committee (IMC) on wheat export. The export of Maida, Samolina (Rava/Sirgi), however, remains free without any conditions. To get the necessary NOC from IMC for the export of wheat flour, all...

Show Cause Notice Cancelling GST Registration Must Disclose Reason: Allahabad High Court

The Allahabad High Court has held that the show cause notice cancelling registration must indicate the reason and the mere mentioning of violation under the CGST Act is not sufficient. The single bench of Justice Saumitra Dayal Singh has observed that cancellation of registration has the most serious civil consequences. While Section 29(1) of the CGST Act provides for specific grounds for cancellation with effect from the date of the occurrence of certain events, Section 29(2) provides...

Developer Put In Possession Of The Property Under The Development Agreement, Assessee Not Liable To Pay Wealth Tax: Karnataka High Court

The Karnataka High Court has set aside the order passed by the ITAT holding that the assessee was liable to pay Wealth Tax with respect to a property, despite transferring possession of the said property to a developer under a Joint Development Agreement. The Bench, consisting of Justices P.S. Dinesh Kumar and Anant Ramanath Hegde, observed that the developer had physically obtained possession of the property and that under the Development Agreement, the developer had the power to...

Benefit Of Carried Forward Business Losses And Unabsorbed Depreciation Losses Can't Be Availed For Ingenuine Amalgamation/Demerger: ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) consisting of S.S. Vishwanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has held that the benefit of section 72A of the Companies Act, 1956 cannot be availed if the sole idea of the amalgamation was only to avail the benefit of carried forward business losses and unabsorbed depreciation losses as it is not for genuine purpose. The respondent/assessee is a company incorporated under the provisions of...

Tax Cases Weekly Round-Up: 10 July To 16 July, 2022

Supreme Court Sufficiency Or Inadequacy Of Reasons To Believe Cannot Be Looked Into While Considering Validity Of Search & Seizure U/Sec 132 Income TaxAct: Supreme Court Case Title: Principal Director Of Income Tax (Investigation) vs Laljibhai KanjiBhai Mandalia | 2022 LiveLaw (SC) 592 Citation: 2022 LiveLaw (SC) 592 The Supreme Court, in a judgment delivered on Wednesday, restated the principles in exercising the writ jurisdiction in the matter of search and seizure under...

Madras High Court Quashes Non-Speaking Order Rejecting The GST Registration Application

The Madras High Court bench of Justice Anitha Sumanth has quashed the non-speaking order rejecting the GST registration application. The petitioner had made an application seeking registration in accordance with Section 22 read with Section 25 of the CGST Act and Rule 8 of the CGST Rules. The registration sought was in respect of a rice mandi. The receipt of the application was duly acknowledged and physical verification (pv) was also duly undertaken. A notice came to be issued by the...

CBIC Notifies Deputy DRI Or Assistant DRI To Act As The Proper Officer Under The Customs

The Central Board of Indirect Taxes and Customs (CBIC)has notified the Deputy DRI or Assistant DRI to act as the proper officer under the Customs. The CBIC has issued amendments to its earlier issued Notification No. 26/2022-Customs (N.T) dated March 31, 2022, which assigned certain officers in relation to the functions under the Customs Act, 1962. The Board has added New SI. No. 4A to NN. 26/2022 (Customs) to designate the Deputy Director of Revenue Intelligence or Assistant...

ITAT Directs Revenue To Give Effect To High Court Order Holding Software License Charges Received By EY Not Taxable As 'Royalty'

The Delhi Bench of ITAT has directed the revenue authorities to give effect to the order passed by the Delhi High Court in favour of EY Global Services Limited (UK) (EYGSL (UK), holding that payments received by EYGSL (UK) from its member firms in India, towards Software License and Maintenance Charges, Global Technology Charges and GWAN Connectivity Charges, are not taxable in India. The Bench, consisting of Astha Chandra (Judicial Member) and Shamim Yahya (Accountant Member), noted...

Vessel Support Services Provided In Relation To Foreign Vessels Sailing To Other Countries Falls Under "Export of Services": AAR

The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that the vessel support services provided in relation to foreign vessels sailing to other countries outside India fall under "export of services" as per Section 2(6) of the IGST Act, as the "place of supply" in such cases is entirely "outside India". The two-member bench of T.G.Venkatesh and K.Latha has observed that if such vessels are calling at a port in India, then the Place of Supply in respect of that vessel is in...

GST Payable On Supply Of Medicines, Consumables Used For Providing Health Care Services To Out-Patients admitted To The Hospital: AAR

The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that the supply of medicines and consumables used in the course of providing health care services to outpatients admitted to the hospital for diagnosis, medical treatment, or procedures is not a composite supply. As a result, it is subject to GST. The two-member bench of T.G.Venkatesh and K.Latha has ruled that the supply of medicines and consumables used in the course of providing health care services to in-patients admitted...