Kerala High Court Strikes Down Rules 9(4A) and 9(4C) Of Municipality Rules On Property Tax Fixation

The Kerala High Court has set aside Rules 9(4A) and 9(4C) of the Kerala Municipality (Property Tax, Service Tax and Surcharge) Rules which prescribe fixation of property tax at a minimum of 25% over and above the tax levied for the previous year, if the property tax arrived at on computation as per the Rules is less than the tax levied for the previous year.Justice N. Nagaresh pointed out that Section 233 of the Kerala Municipality Act, 1994 does not permit the fixation of property tax over and...

Karnataka High Court Upholds GST & Central Excise Duty On Tobacco; Says 'Articles 246 & 246A Can Be Simultaneously Exercised'

The Karnataka High Court has upheld the notification dated July 6, 2019 issued by the Union of India by which Central Excise Duty has been levied on tobacco and tobacco products. A single Judge bench of Justice S. Sunil Dutt Yadav said, "It needs to be kept in mind that taxation is not merely a source of raising revenue but is also recognised by the fiscal tool to achieve fiscal and social objective." The petitioner M/s.V.S.Products and others, all manufacturers of Tobacco and...

Goods In Transit Can't Be Confiscated Under CSGT Act On Grounds Of Under-Valuation Or Wrong Route: Gujarat High Court

The Gujarat High Court has held that mere undervaluation of the goods or change of route of the consignment can't be sufficient grounds to detain the goods and vehicle under the Central Goods and Services Tax Act, 2017.Holding thus, the Bench of Justice Nisha M. Thakore quashed the entire confiscation proceedings including the notice issued u/s 130 of CGST Act against the Petitioner, Karnataka Traders, who is a seller of the goods (Arecanut) and a registered dealer under the GST.The case in...

Income Deduction For State Govt Undertakings - 'Exclusivity' Under S. 40(a)(iib) of Income Tax Act Not Based On Number Of Undertakings : Supreme Court

The Supreme Court has rejected the argument raised by the Kerala State Beverages Corporation that it is entitled to deduct the levies made by the state government on it from income. The Beverages Corporation's claim was on the premise that the license given to by the State Government to trade in liquor was not 'exclusive'. Section 40(a)(iib) of the Income Tax Act, which refers to charges paid to the government that are not deductible from income, uses the word "exclusively". The Supreme Court...

Correct Approach Of The Madras High Court Single Bench On GST On Maintenance Charges By Residents Welfare Association

Apropos to the article "A critical approach to Madras High Court single bench decision on GST on maintenancecharges by Residents Welfare Association", what the author seems to have missed is what the Hon'ble Supreme Court has said in Govind Saran Ganga Saran Vs Commissioner of Sales Tax[1], way back in 1985 which continue to hold field even today. The first is the character of the imposition known by its nature which prescribes the taxable event attracting the levy, the second is a clear...

A Critical Approach To Madras High Court Single Bench Decision On GST On Maintenance Charges By Resident Welfare Associations

The recent judgement of the Madras High Court in Greenwood Owners Association v. Union of India WP 5518&1555 of 2020 dated 01.07 2021 quashing the order of the Authority for Advanced Ruling ("AAR") dated 21.06.2019 and holding that Goods and Service Tax ('GST') is payable on maintenance amounts charged by Residential Welfare Associations ('RWAs') in excess of Rs 7500/- seem to be changing the nature of taxation. Though many RWAs felt the single judge's order as a relief for small home...

Bombay High Court Rejects Petition Filed By Maharashtra Cabinet Minister Chhagan Bhujbal Challenging Show Cause Notice Issued By Income Tax Department

The Bombay High Court has rejected a petition filed by Maharashtra Cabinet Minister Chhagan Bhujbal challenging a show cause notice issued by the Income Tax department.In a judgment passed earlier this month, a division bench of Justices K R Shriram and A B Borkar observed that they did not see any reason to exercise their extraordinary jurisdiction under Article 226 of the Constitution of India and prohibit the authority from proceeding further in the matter.Bhujbal's petition challenged a...

Taxation Relaxation Act Does Not Validate Reassessment Notices Issued Under Old Income Tax Act Regime : Delhi High Court Quashes 1.3K Notices

The Delhi High Court on Wednesday held that sec. 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 empowers the Government or Executive to extend only the time limits and does not delegate the power to legislate on provisions to be followed for initiation of reassessment proceedings. Pursuant to the lockdown imposed in March last year amid the covid 19 pandemic, looking at the difficulties faced by citizens in complying with the statutory time limits,...

Supreme Court Issues Notice On Plea Challenging 18% GST On Mining Operations

The Supreme Court on Tuesday issued notice on two writ petitions challenging the October 6 circular through which the government of India has clarified that GST is applicable on services by way of grant of mineral exploration and mining rights at the rate of 18%.The writ petitions are filed by a group of firms involved in mining and crushing operations. The bench of Justices D. Y. Chandrachud, Surya Kant and Vikram Nath asked the advocate for the Petitioners, Mr. Kartik Seth, regarding the issue...

Faceless Assessment Scheme: Kerala High Court Issues Notice To Centre On Plea Challenging Constitutionality Of S.144B Of IT Act

The Kerala High Court has admitted a batch of writ petitions challenging the constitutional validity of the Faceless Assessment Procedure under Section 144B of the Income Tax Act.Justice Bechu Kurian Thomas issued notice to the Central government in the matter and temporarily stayed all further proceedings pursuant to the assessments made against the petitioners.The Faceless Assessment Scheme was introduced in 2020 by insertion of Section 144B via the Taxation and Other Laws (Relaxation and...

ITAT Cannot Recall Its Order By Invoking Power U/Sec 254(2) Income Tax Act : Supreme Court

The Supreme Court observed that the Income Tax Appellate Tribunal cannot recall orders passed by it invoking power under Section 254(2) of the Income Tax Act.Section 254(2) power is only to correct and/or rectify the mistake apparent from the record and not beyond that, the bench comprising Justices MR Shah and BV Nagarathna said.In this case, the ITAT allowed the Revenue's appeal and held that payments made for purchase of software are in the nature of royalty. The Assessee filed miscellaneous...