Tax
Reward Schemes Must Be Fairly Implemented: Bombay High Court Directs Dept To Pay Informer For Assisting In Tax Recovery
The Bombay High Court has directed the department to pay informer for assisting in tax evasion recovery. Justices M.S. Sonak and Jitendra Jain stated that “If the Government has formulated a reward scheme, it must be implemented fairly and transparently. Informers who take risks and invest time must not be made to run from pillar to post to secure what may be due and payable. There must be no unreasonable delay in paying the determined reward amounts, and the practice of raising...
No Leniency In Import/Export Lapses; Bombay High Court Upholds Licence Cancellation Of Courier Agency For Clearing Imports Without Authorisation
The Bombay High Court has upheld the licence cancellation of a courier agency for clearing imports without authorisation by stating that any such exercise of discretion of leniency will only encourage persons to commit the offence by taking recourse to the services of the courier agencies. Justices M.S. Sonak and Jitendra Jain stated that “the petitioner has been negligent in carrying out its obligation under the 1998 Regulations. These obligations are cast on the Authorised Courier...
Benefits To Registered Retail Traders Under MSMED Act Limited To Priority Sector Lending, Not Eligible For QCO Exemption: Kerala High Court
The Kerala High Court held that the benefits to registered retail traders under MSMED Act, 2006 (Micro, Small and Medium Enterprises Development Act, 2006) limited to priority sector lending only, and are not eligible for QCO [Plywood and Wooden flush door shutters (Quality Control) Order, 2024] exemption. Justice Ziyad Rahman A.A. stated that “the entire category of wholesale and retail trades were excluded completely from the purview of MSMED Act and later, they were re-included...
Tax Weekly Round-Up: June 30 - July 06, 2025
HIGH COURTSBombay HCIncome Tax | Sales Tax Incentive Under Govt Scheme For Industrial Promotion Is Capital Receipt, Not Taxable: Bombay High CourtCase Title: Bajaj Auto Limited v. Dy. Commissioner of Income TaxCase Number: INCOME TAX APPEAL NO.505 OF 2003The Bombay High Court has stated that sales tax incentive under a government scheme for industrial promotion is a capital receipt, not taxable.Chief Justice Alok Aradhe and Justice Sandeep V. Marne were addressing the issue of whether an...
[Income Tax Act] Reassessment Beyond 4 Years Requires Specific Non-Disclosure By Assessee, Not Mere Allegations: Bombay High Court
The Bombay High Court stated that reassessment under Section 147 Income Tax Act beyond 4 years requires specific non-disclosure by assessee, not mere bald allegations. Section 147 of the Income Tax Act, 1961 provides for the reopening of assessment proceedings. This section gives discretion to the Assessing Officer (AO) to reopen the assessment proceedings when he/she has reason to believe that some of the income has escaped assessment. Justices B.P. Colabawalla and Firdosh P....
Assessing Authority Not Bound By Appellate Tribunal's Observations In De Novo Assessment: Madras High Court
The Madras High Court has stated that the assessing authority is not bound by the appellate tribunal's observations in a De Novo assessment. Justices Anita Sumanth and N. Senthilkumar opined that while concluding the assessment de novo, the assessing authority is not bound by the observations made by the first appellate authority. In this case, the Commercial Taxes Department has filed the appeal challenging the order of the Tamil Nadu Sales Tax Appellate Tribunal relating to the...
Income Tax | Serving SCN On Old Email After Updation Is Invalid, Despite Earlier Acknowledgement: Kerala High Court
The Kerala High Court stated that reply to one SCN on old email cannot justify non-service of subsequent notice on updated email. Justice Ziyad Rahman A.A. stated that “one of the notices issued under Section 142(1) of the Income Tax Act was indeed served to the assessee in the old email ID, which was after updating the email ID. The assessee also submitted a response to the said notice as well. However, that by itself cannot be a reason to reject the contentions put forward by the...
AD-I Banks Can Grant Extension For Export Drawback Claims; RBI's Direct Approval Not Mandatory: Kerala High Court
The Kerala High Court stated that AD-I banks authorized by RBI can grant extension for export drawback claims, RBI's direct approval not mandatory. Justice Ziyad Rahman A.A. stated that the Master Circular published in this regard indicates that it is not necessary that extension should come from the Reserve Bank of India itself as the AD-I bank are authorized to grant such extension. In this case, the assessee/petitioner is engaged in the export of garments to various countries....
Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number
The Kerala High Court quashed Income Tax proceedings under Section 148 against co-operative society initiated on cancelled PAN. Justice Ziyad Rahman A.A. observed that the transactions pertain to the relevant assessment year were carried out based on the PAN card that was then in existence, which was later cancelled. By the time the proceedings of assessment were initiated by issuing a notice under Section 148, the assessee was issued with a new PAN card, wherein, the status of the...
Cadbury's 'Perk' Products Are 'Wafer Biscuits', Not Chocolates, Qualifies For Concessional Duty: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 'perk' products are 'wafer biscuits', not chocolates and are entitled to the benefit of the exemption notification. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) were addressing the issue of whether Perk, ULTA Perk, Perk Poppers and Wafer Uncoated Reject manufactured by the assessee are classifiable under Excise Tariff Item 1905 32 11 of the Central Excise...
Occupancy Certificate Not Final For Plinth Area Determination: Kerala High Court Upholds Luxury Tax U/S 5A Of Kerala Building Tax Act
The Kerala High Court stated that occupancy certificate not final for plinth area determination under Section 6 of the Kerala Building Tax Act. Justice Ziyad Rahman A.A. was addressing the issue where challenge raised by the assessee was against the assessment of building tax and luxury tax, by mainly placing reliance upon Occupancy Certificate. Section 5A Of Kerala Building Tax Act imposes luxury tax on residential buildings that exceed a certain plinth area threshold. Section ...
Proceedings U/S 148A Of Income Tax Act Unsustainable If Escaped Income Is Below ₹50 Lakhs & Notice Is Issued After 3 Years: Kerala High Court
The Kerala High Court held that proceedings under Section 148A of Income Tax Act not sustainable if escaped income is below Rs. 50 lakhs and notice issued after 3-years. Justice Ziyad Rahman A.A. stated that “when the order of the assessing authority is found to be without jurisdiction and hit by the period of limitation, it is not necessary to relegate the party concerned to undergo the rigor of the statutory proceedings”. Section 148A of the Income Tax Act, 1961 empowers...