Tax
Quashing Of Show Cause Notice On One Issue Doesn't Mean Other Demands Are Not Liable To Be Adjudicated: Delhi High Court
The Delhi High Court has made it clear that if a show cause notice is quashed by a higher authority on one issue, it doesn't mean that other issues raised in the SCN are not liable to be adjudicated.The observation was made by the bench of Justices Prathiba M. Singh and Dharmesh Sharma in a case where the SCN was quashed by another division bench of the High Court so far as the issue relating to duty on free supply of materials was concerned. However, the CESTAT proceeded to discharge the entire...
Charitable Trust's Registration For Income Tax Exemption To Be Decided Based On Proposed Activities & Not Actual Activities : Supreme Court
The Supreme Court reiterated that when a charitable trust applies under Section 12-AA of the Income Tax Act (“Act”) for income tax exemptions (under Sections 10 and 11), the tax authorities should decide on the registration based on the charity's "proposed activities" than its actual activities, as stated in the Ananda Social case. The Court, however, clarified that mere registration under Section 12-AA would not entitle a charitable trust to claim exemption under Sections 10 and 11...
Tax Weekly Round-Up: February 10 - February 16, 2025
NEW INCOME TAX BILLNew Income Tax Bill 2025: Concept Of "Tax Year" To Be Introduced Instead Of "Assessment Year", "Financial Year" To Remain UnchangedThe new Income Tax bill is set to introduce the concept of 'Tax Year'. This will replace the current concept of assessment year (or previous year) from the Income Tax Act.Persons engaged in digital content creation, including social media influencers and online platforms, shall be required to register for Goods and Services Tax (GST) if their...
Customs Department Must Intimate Party About Disposal Of Confiscated Property Both Via Email And On Mobile: Delhi High Court
The Delhi High Court has held that the Customs Department must ensure that the intimation of disposal of detained or confiscated property is given to the concerned party both via email as also the mobile number.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma reasoned this will ensure that a party who succeeded in Court or Tribunal against the detention of the property is not deprived of their properties.The observation was made while dealing with a case where despite the order...
Cess Levied On Cinema Tickets U/S 3C Of Kerala Local Authorities Entertainment Tax Act Is Constitutionally Valid: Kerala High Court
The Kerala High Court has stated that cess levied on cinema tickets under Section 3C Of Kerala Local Authorities Entertainment Tax Act is constitutionally Valid. “Cess can also mean a tax levied for a special purpose or as an increment to the existing tax and, in given circumstances, a fee. In the case at hand, entertainment tax is already levied under the Act of 1961 and the Cess under Section 3C is an additional levy. Thus, the contention of the Assessee that under Entry 62 of List...
TPO's Role Is To Determine ALP Of International Transactions, Can't Act As AO To Probe Legitimacy Of Such Transactions: Delhi High Court
The Delhi High Court has made it clear that the role of a Transfer Pricing Officer is to conduct a transfer pricing analysis and determine the arm's length price of an assessee's international transaction and the TPO cannot act as an Assessing Officer to probe the legitimacy of such transactions.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed, “It is necessary to bear in mind that there is a distinction between the functions of a TPO and an AO. The TPO is required to...
ALP Not Concerned With Commercial Expediency Of International Transaction, Assessee Reporting Loss Not Grounds To Deem ALP Nil: Delhi HC
The Delhi High Court has held that a Transfer Pricing Officer cannot compute the arm's length price of an assessee's international transactions as nil, merely because despite the services availed from such transactions, the assessee incurred a loss in business.A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma observed that the TPO cannot weigh the ALP on the basis of financial benefits or commercial expediency of the transactions in question.It held, “The question whether the...
Delhi High Court Orders Customs To Release Traveller's Gold Worth ₹20 Lakh, Iphone, Playstation & More Over Failure To Issue SCN
The Delhi High Court recently ordered the Customs authorities to release a traveller's gold worth over ₹14 lakh and other branded articles like iPhone, PlayStation, etc. over the authority's failure to issue him a show cause notice.Section 124 of the Customs Act, 1962 contemplates issuance of a show cause notice before confiscation of goods.The Petitioner had landed at Delhi International airport with his family. He was intercepted carrying a gold chain, another three layered gold chain with...
GST Registration Cannot Be Refused Merely Because Assessee Belongs To Another State: Andhra Pradesh High Court
The Andhra Pradesh High Court stated that GST registration can't be refused merely because the assessee belongs to another State. “Though the apprehension of the respondents may not be misplaced, it would not mean that registration can be refused on a ground, which is not available under the Statute or the Rules. There do not appear to be any restriction for persons outside the State to come into the State of Andhra Pradesh and seek registration under the APGST Act,” stated the...
Income Tax Act | No Penalty Under S.271AAA If Undisclosed Income Is Admitted, Explained & Tax Paid Even With Delay : Supreme Court
The Supreme Court, while determining a tax matter, observed that the undisclosed income, under Section 271AAA(1) of the Income Tax Act, surrendered by the assessee during the search, is not sufficient to levy the penalty. Essentially, the said provision talks about penalty where a search has been initiated. The explanation reads as: “(a) “Undisclosed income” means— (i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or...
High Court Within Whose Jurisdiction AO Passes Assessment Order Has Jurisdiction To Entertain Appeal U/S 260A Income Tax Act: Delhi HC
The Delhi High Court has reiterated that only such High Court within whose jurisdiction the Assessing Officer passing an impugned assessment order is situated would have the jurisdiction to entertain an appeal under Section 260A of the Income Tax Act, 1961.The Section makes provision for an appeal to the High Court from an order passed in appeal by the Appellate Tribunal.In the case at hand, the original assessment order was passed by the AO in Amritsar, making an addition of ₹4,37,046/- to the...