Tax
Open Terrace/Portico Excluded While Computing Built-Up Area To Determine Eligibility For Deduction U/S 80-IB Of IT Act: Telangana High Court
The Telangana High Court stated that open terrace/portico excluded while computing build-up area for determining eligibility for deduction under section 80-IB of Income Tax Act. The Bench consists of Justices P. Sam Koshy and Narsing Rao Nandikonda was addressing the issue of whether the terrace / balcony that is in the form of open to sky or portico / porch area without walls could be added while computing the built-up area for the purpose of determining the eligibility for deduction...
S.161 CGST Act | Rectification Order Must Be Reasoned, Adverse Order Can Be Passed Only After Hearing Party: Delhi High Court
The Delhi High Court has made it clear that an order in rectification proceedings must be reasoned, passed after affording an opportunity of hearing to the party.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta made the observation while dealing with a petition against rejection of Petitioner's application seeking rectification of impugned demand orderPetitioner pointed out that in terms of the proviso 3 to Section 161 of the Central/Delhi Goods and Services Tax Act, 2017...
Allahabad High Court Rejects Patanjali's Plea Against ₹273.5 Crore GST Penalty
The Allahabad High Court has directed continuation of proceedings under Section 122 of the Central Goods and Services Tax Act, 2017 against M/s Patanjali Ayurved limited's 3 plants even though proceedings under Section 74 of the Act have been dropped against them.The bench of Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit held “Under the present GST regime, persons who are not liable to pay tax under Sections 73/74 of the CGST Act may very well be liable for penalties as described in...
Actual Figures Can Be Considered To Determine Service Tax Payable By Assessee If Books Of Accounts Show Higher Figures Than Statutory Returns: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that actual figures can be considered for determining service tax payable by assessee if books of accounts show higher figures than statutory returns. The Bench of Justices Binu Tamta (Judicial) and P.V. Subba Rao (Technical) has observed that, “If the books of accounts show higher figures than the statutory returns the actual figures can be considered for determining the service tax payable...
No Exporter Has Obligation To Either Anticipate Or Conform To Views Of DRI In Classifying Goods In Shipping Bills: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no exporter has an obligation to either anticipate or to conform to views of DRI in classifying goods in shipping bills. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “no exporter has any obligation to anticipate any views of DRI, audit or preventive officers regarding the classification of the goods or to conform to them. The exporter...
No Equity In Taxation Law: Himachal Pradesh High Court On Tax Liability Of Auction Purchaser
Himachal Pradesh High Court held that an auction Purchaser is liable to pay the outstanding taxes on vehicles acquired through auction. It stated that there is no equity in taxation law and equity would only come into play in case there is no law operating in the field.Justice Tarlok Singh Chauhan & Justice Sushil Kukreja: “It is more than settled that there is no equity in taxation law and further more equity would only come into play in case there is no law operating in the field. Here,...
Circular Clarifying Previous Notifications On Fiscal Duty Has Retrospective Effect : Supreme Court
The Supreme Court recently held that a circular/notification issued by the revenue department, clarifying or explaining a fiscal regulation, has to be given retrospective effect.In the facts of the case at hand, the Court held that a Circular dated 17.09.2010 issued by the Central Board of Excise and Customs (CBEC) had to be given retrospective effect as it clarified certain previous notifications on customs duty.It was opined that, being explanatory in nature, the Circular could not be...
S.27 Customs Act Or Doctrine Of Unjust Enrichment Won't Apply To Refund Of Bank Guarantee : Supreme Court Allows Patanjali Plea
The Supreme Court has held that Section 27 of the Customs Act, which requires a person seeking refund of duty to show that the burden was not passed on to the customer, is not applicable when refund is sought of a wrongly invoked bank guarantee.This is because encashment of bank guarantees by the Customs Department cannot be treated as payment of customs duty. Hence, neither Section 27 nor the doctrine of unjust enrichment is applicable. Holding so, the Supreme Court allowed the...
ITR Filing Due Date Extended From July 31 To September 15
The CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025."This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. This ensures a smoother and more accurate filing experience for everyone. Formal notification will follow," the Income Tax department said in a post on X.
Tax Weekly Round-Up: May 19 - May 25, 2025
SUPREME COURTIncome Tax Act | Supreme Court Clarifies Restriction Under S.80-IA(9) On Claiming Cumulative Deductions Under S.80IA & 80-HHCCase title: Case Title: Shital Fibers Limited versus Commissioner of Income Tax (and connected cases)Case no.: CIVIL APPEAL NO.14318 OF 2015Answering a reference, the Supreme Court held that deductions under Sections 80-IA/80-IB of the Income Tax Act need not reduce the gross total income before computing deductions under other provisions like Section...
'Industrial Building' Not Limited To Manufacturing Units, Can Include IT & Software Offices For Purposes Of Property Tax: Delhi High Court
The Delhi High Court has held that the scope of an 'Industrial Building' cannot be restricted merely to traditional notions of manufacturing involving tangible and physical goods.Justice Purushaindra Kumar Kaurav rather held that an 'Industrial Building' encompasses IT sector businesses where non-material inputs such as data, digital content, or intellectual capital are subjected to systematic transformation or reconstitution into new intellectual property outputs, such as software, algorithms,...
Disallowance U/S 143(1)(a) Of Income Tax Act Inapplicable When Issue Involved Is Pending Before Supreme Court: Chhattisgarh High Court
The Chhattisgarh High Court has held that an Assessing Officer (AO) cannot apply Section 143(1)(a) of the Income Tax Act, 1961 (the 1961 Act), to disallow a claim where the issue involved, such as the deductibility of employees' contributions to EPF/ESI under Section 36(1)(va), was pending consideration before the Supreme Court in Checkmate Services Pvt. Ltd. v. CIT [(2023) 6 SCC 451].In this regard, a Division Bench of Justice Sanjay K. Agrawal and Justice Deepak Kumar Tiwari held,“…we are of...