Supreme Court
Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court
The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the 3D conversion services provided by the assessee, including services such as ‘imparting special effects’, ‘post production service’, ‘digital asset management and content service’ and ‘digital restoration service’, will not fall under the ambit of...
Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court
The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot make additions to assessee’s income in respect of completed/unabated assessments if no incriminating material has been found during the course of search under Section 132 or...
Self-Assessment Of Assessee Not Rendered Malafide Merely Because It Was Based On A CETSTAT View Which Was Later Overturned : Supreme Court
The Supreme Court has upheld the decision of the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) by holding the demand for differential excise duty raised against the assessee, M/s Reliance Industries Ltd, as time barred.The court dismissed the contention that Reliance had deliberately suppressed and withheld material information and documents from...
Income Tax Act - Carrier of Goods Not An ‘Owner’; Bitumen Not A ‘Valuable Article’ Under S. 69A : Supreme Court
The Supreme Court has ruled that bitumen cannot be treated as a ‘valuable article’ under Section 69A of the Income Tax Act, 1961. The bench comprising Justices K.M. Joseph and Hrishikesh Roy made the observation while dealing with an appeal filed against the decision of the Patna High Court, who had upheld the additions made by the Assessing Officer (AO) towards the bitumen lifted by...
Loss On Confiscation Of Smuggled Items By DRI Officials Cannot Be Claimed As ‘Business Loss’ Under Income Tax Act: Supreme Court
The Supreme Court bench comprising Justices M. R. Shah and M.M. Sundresh has set aside the Rajasthan High Court’s order of allowing the loss claimed by the assessee on account of confiscation of silver bars by the Customs department, as ‘business loss’ under Section 37(1) of the Income Tax Act, 1961. Justice M. R. Shah reckoned that the assessee was carrying on a legitimate...
Income Tax Act- AO Can’t Make Additions to Completed Assessments In Absence Of Incriminating Materials: Supreme Court
The Supreme Court has ruled that no additions can be made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961 in the absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132 A, in respect of completed /unabated assessments. The bench of Justices M.R. Shah and Sudhanshu Dhulia remarked that...
Transfer Pricing | High Courts Not Precluded From Scrutinising ITAT’s Determination Of Arm’s Length Price : Supreme Court
The Supreme Court has ruled that the High Court is not precluded from considering the determination of the arm’s length price determined by the Income Tax Appellate Tribunal (ITAT), in exercise of its powers under Section 260A of the Income Tax Act, 1961.Dismissing the proposition that in every case where the Tribunal determines the arm’s length price, the same shall attain finality,...
S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court
The Supreme Court has ruled that the assessee is not entitled to deduction under Section 80- IB of the Income Tax Act, 1961 on the amount received / profit derived from the Duty Entitlement Pass Book Scheme (DEPB) and the Duty Drawback Schemes.The bench of Justices M.R. Shah and B.V. Nagarathna held that the profit from DEPB and the Duty Drawback claims cannot be said to be an income...
Income Tax Act | For A Company To Be A "Resident" In India, Domicile Or Registration Irrelevant; Test Is Where De Facto Control Lies : Supreme Court
The Supreme Court has ruled that under the Income Tax Act, 1961, the domicile or the registration of the company is not at all relevant, and the determinate test is the place where, the sole right to manage the company and the control of the company lies. The place where the “head and seat” and the “directing power” of the affairs of the company and the control and management is...
Mere Delay In Remittance Of TDS Doesn’t Attract Penalty Under S 271C Income Tax Act: Supreme Court
The Supreme Court has ruled that no penalty is leviable under Section 271C of the Income Tax Act, 1961 on mere delay in remittance of the tax deducted at source (TDS) after the same has been deducted by the assessee.The bench of Justices M.R. Shah and C.T. Ravikumar observed that the relevant words used in Section 271C(1)(a) are “fails to deduct”, and the same does not speak about...
Section 263 Income Tax Act | Erroneous Order Of Assessing Officer Causing Prejudice To Revenue Is Revisable By CIT : Supreme Court
The Supreme Court has held that the Commissioner of Income Tax can exercise revision powers under Section 263 of the Income Tax Act over the orders of the Assessing Officer which cause prejudice to the interest of the revenue.The Top Court set aside the Bombay High Court’s order where the High Court had ruled that the amount paid by the assessee to its shareholders in lieu of settlement...