Delhi High Court Quashes ₹2000 Crore Tax Reassessment Notice Against Maruti Suzuki For Alleged Escapement Of Income In AY 2009-10

The Delhi High Court has quashed the reassessment action initiated by the Income Tax Department against car manufacturer Maruti Suzuki India Ltd for alleged escapement of income in the Assessment Year 2009-10.A division bench of Justices Yashwant Varma and Ravinder Dudeja observed that the company had made full and true disclosure of all facts in the course of the assessment and the Department did not have jurisdiction to reopen the assessment under Sections 147/148 of the Income Tax Act,...

GST Act | Can Time Limit To Adjudicate Show Cause Notice Be Extended By Notification Under S.168A? Supreme Court To Consider

The Supreme Court is to decide whether the time limit for adjudicating show cause notice and passing an order can be extended by the issuance of notifications under Section 168-A of the GST Act. This provision empowers the Government to issue notification for extending the time limit prescribed under the Act which cannot be complied with due to force majeure.“The issue that falls for the consideration of this Court is whether the time limit for adjudication of show cause notice and passing order...

Appeal Can't Be Dismissed Due To Procedural Delay When Assessee Has Complied With Statutory Requirements Including Pre-Deposit: Madras HC

The Madras High Court stated that appeal can't be dismissed due to procedural delay, when assessee has complied statutory requirements including pre-deposit. “The appeal should not be dismissed merely due to a procedural delay, especially when the petitioner has made an effort to comply with the statutory requirements, including the pre-deposit of 10% of the tax liability and additional payments towards the disputed tax amount” stated the bench of Justice Vivek Kumar Singh. In ...

Tax Weekly Round-Up: February 17 - February 23, 2025

SUPREME COURTCharitable Trust's Registration For Income Tax Exemption To Be Decided Based On Proposed Activities & Not Actual Activities : Supreme CourtCase Title: COMMISSIONER OF INCOME TAX EXEMPTIONS VERSUS M/S INTERNATIONAL HEALTH CARE EDUCATION AND RESEARCH INSTITUTECase no.: SPECIAL LEAVE PETITION (CIVIL) Diary No. 19528/2018The Supreme Court reiterated that when a charitable trust registers under Section 12-AA of the Income Tax Act (“Act”) for income tax exemptions (under Sections 10...

If Goods Imported Into SEZ Are Not Used For Authorised Operations But Sold In Domestic Tariff Area, Duty Has To Be Paid: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that if goods imported into an SEZ are not used for the authorised operations but are sold in Domestic Tariff Area, duty has to be paid. Section 51 of the Special Economic Zones (SEZ) Act, 2005 states that the provisions of the SEZ Act will take precedence over any other conflicting laws, meaning that if there is a disagreement between the SEZ Act and another law, the SEZ Act will be the...

Mere Wrong Availment Of Exemption Notification Does Not Mean That Availment Was Done To Evade Payment Of Central Excise Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere wrong availment of exemption notification does not mean that availment was done to evade payment of central excise duty. The Bench of Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that, “Mere wrong availment of an Exemption Notification would not lead to a conclusion that it was with an intent to evade payment of central excise duty unless the department is...

S.197 IT Act | AO Must Form Prima Facie Opinion Regarding Taxability In India Before Rejecting Assessee's Application For Nil TDS: Delhi HC

The Delhi High Court has made it clear that before rejecting an assessee's application under Section 197 of the Income Tax Act 1961 for nil TDS or deduction of tax at a lower rate, the assessing officer must form a prima facie opinion regarding the assessee's taxability in India.Section 197(1) of the Act enables an assessee to make an application for a certificate requiring the deduction of tax at a lower rate or no deduction at all if the Assessing Officer is satisfied that the total income of...

Delhi HC Grants Relief To Foreigner Whose Rolex Watch Was Seized By Customs, Says Waiver Of Show Cause & Hearing In 'Standard Form' Not Lawful

The Delhi High Court has reiterated that authorities making a traveller waive show cause notice before confiscation of goods, etc. under Section 124 of the Customs Act 1962, on a mere proforma, is not lawful.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma thus granted relief to a permanent resident of Hong Kong, whose Rolex wristwatch valued at ₹30,29,400/- was confiscated by the Customs Department at the airport.It observed, “This is another case where the Department is...

Designated Committee Under Sabka Vishwas Scheme May Reject Application For Compounding Tax Over Bogus Documents: Telangana High Court

A division bench of the Andhra Pradesh High Court has dismissed a writ petition filed by M/s Diwakar Road Lines challenging the rejection of an application to compound all previous service tax by way of a one-time settlement. The bench held that even though the statute does not prescribe for the rejection of any application, the committee may reject an application when the documents relied upon are ingenuine. The Division Bench comprising of Justice R. Raghunandan Rao and Justice...

Central Govt Employee Cannot Change Destination Midway While Claiming Leave Travel Concession: Delhi High Court

The Delhi High Court has made it clear that in terms of the Central Civil Services (Leave Travel Concession) Rules, 1988 an employee cannot change travel destination midway through the journey and if due to some unavoidable circumstance it has been changed, the same has to be a destination which is en route.In the case at hand, LTC was originally sought for travel to Trivandrum, which was subsequently changed to Goa, via Mumbai. However, the petitioner decided midway to change his destination to...

Article 226 Can't Be Invoked Against An SCN Issued U/S 74 Of CGST Act At Preliminary Stage: Kerala High Court

The Kerala High Court stated that Article 226 cannot be invoked against a show cause notice issued under Section 74 of the CGST Act at preliminary stage. “Article 226 of the Constitution of India is not meant to be used to break the resistance of the Revenue in this fashion. In exercise of such jurisdiction, the High Court is required to refrain from issuing directions to the authorities under the taxation statute to decide issues in stages or on a preliminary basis,” stated the...

ITAT Cannot Overstep Its Authority By Deciding On Merits When It Had Already Concluded Appeal Was Not Maintainable: Bombay High Court

The Bombay High Court stated that ITAT cannot overstep its authority by deciding on merits when it has already concluded an appeal was not maintainable. The Division Bench of Justices M.S. Sonak and Jitendra Jain observed that “Once the ITAT concluded that the Appeal before it against the impugned communication/order was not “maintainable”, there was no question of the ITAT evaluating the impugned communication/order on its merits or making any observations or recording any findings...