Goods Loaded Without Proper Documents Can't Be Exported Without Clearance By Customs Officials: CESTAT Kolkata Sets Aside Penalty

Stating that goods wrongly loaded by the steamer agent could not have been exported without clearance by the Customs officials themselves, the Customs, Excise & Service Tax Appellate Tribunal at Kolkata set aside the penalty imposed under Section 114 of the Customs Act, 1962. The provision stipulates a penalty for attempting to export goods improperly. The Appellant, a steamer agent, was saddled with Rs. 2 lakh penalty for exporting goods without Let Export Order (LEO). Noting...

Reduction In Share Capital Amounts To Transfer Of Capital Asset Under Income Tax Act : Supreme Court

The Supreme Court (recently on January 02) reiterated that reduction in share capital is covered under Section 2(47) of the Income Tax Act, 1961, which talks about transfer of a capital asset. It explained that such reduction would be come under the expression “sale, exchange or relinquishment of the asset” used in the provision.For reference, the concerned portion of Section 2(47) reads as:“transfer' in relation to a capital asset, includes, (i) the sale, exchange or relinquishment of the...

Twin Conditions U/S 127 Of Income Tax Act For Transferring Assessee's Case From One Officer To Another Are Mandatory: Himachal Pradesh HC

The Himachal Pradesh High Court has elucidated the mandatory twin conditions for transfer of an assessee's case under Section 127 of the Income Tax Act, 1961, from one Assessing Officer to another. Section 127 stipulates that the Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter and after recording his reasons for doing so, transfer any case from Assessing Officer subordinate to him to any other Assessing Officer also subordinate to him. ...

S.168A GST Act | 'Recommendation' Of GST Council To Extend Limitation Period Can Be Substituted By Subsequent 'Ratification': Telangana HC

The Telangana High Court has upheld the validity of two 2023 notifications, issued by the GST Department post COVID-19 pandemic, for extending the limitation period prescribed for issuing notices under Section 73 of the Central Goods and Services Tax Act, 2017. A division bench of Justice Sujoy Paul and Dr. Justice G. Radha Rani also upheld a notification issued in 2022 for similar purpose. In doing so, it observed, “In the manner statute i.e., Section 168A is worded, there is no...

What Constitutes Valid Service Of Notice U/S 169 Of CGST Act? Madras High Court Clarifies

The Madras High Court interpreted Section 169 of Central Goods and Services Tax Act, 2017 and stated that Section 169 mandates a notice in person or by registered post or to the registered e-mail ID alternatively and on a failure or impracticability of adopting any of the aforesaid modes, then the State can, in addition, make a publication of such notices/ summons/ orders in the portal/ newspaper through the concerned officials. The Bench of Justice K. Kumaresh Babu observed that “when...

Assessee Must Clearly Establish 'Movement Of Goods' To Defend Allegations Of Accommodation Entries: Delhi HC

The Delhi High Court has made it clear that merely producing transaction documents to establish that payments were made to an entity is not sufficient to defend the allegations of accommodation entries. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “The documents provided by the petitioner would establish that the payments had been made to Shri Ajay Gupta through banking channels. However, the same does not address the allegation of...

Uploading Information On Insight Portal Not A Substitute For Handing Over Material To AO For Non-Searched Entity U/S 153C Of IT Act: Delhi HC

The Delhi High Court has held that the provision under Section 153C of the Income Tax Act, 1961 for the Assessing officer of a searched person to record 'satisfaction' and handover documents regarding undisclosed income of another person cannot be substituted by merely uploading such information on the Department's insight portal. The provision stipulates that where the Assessing Officer of the person searched is satisfied that records of undisclosed assets relate to another person,...

Tax Annual Digest 2024

SARFAESI Act | Charge Of Secured Creditor Will Precede Over The Charge Based On Dues Of Sales Tax: Gujarat High CourtThe Gujarat High Court has reiterated that the charge of the Secured Creditor will precede over the charge of an Unsecured Creditor.The ruling came in a writ petition whereby the core issue raised was - 'Who will have the first charge over the property in question i.e. Secured Creditor or the State / Central Government (Crowns debt) on account of non-payment of dues of the Sales...

Customs Dept Should Serve Notices By Email In Addition To Post, Will Prevent Delay And Non-Appearances: Delhi High Court

The Delhi High Court recently called upon the Customs Department to make use of Section 153(c) of the Customs Act, 1962 which empowers it to serve notices through email. A division bench of Justices Prathiba M. Singh and Amit Sharma said such an approach will prevent delay and non-appearances, leading to expeditious disposal of matters. “In the opinion of this Court, the provision itself makes it clear that notices can be sent by email…The Customs Department ought to in future...

Service Tax Not Payable On Commission Received From Foreign Universities For Promoting & Publicizing Business In India: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax not payable on commission received from foreign universities for promoting and publicizing business in India. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that “the assessee is held not liable to pay service tax with reference to foreign Consultancy Income i.e. the income received from foreign universities for...

FAOs And JAOs Have Concurrent Jurisdiction For Assessment, Re-assessment Or Re-Computation U/S 147 Income Tax Act: Madras High Court

The Madras High Court recently clarified that both the Faceless Assessment Officer and Jurisdictional Assessment Officer have concurrent jurisdiction as far as assessment, re-assessment or re-computation under Section 147 of the Income Tax Act. “As far as the assessment, re-assessment or re-computation in terms of the provisions of Section 147 of the IT Act is concerned, both the FAO as well as the JAO will have concurrent jurisdiction,” the court ruled. Justice Krishnan Ramasamy made...

Tax Weekly Round-Up: 30th December 2024 - 5th January 2025

SUPREME COURT Motor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme Court Case name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand. Case no.: SLP (C) No. 30491 of 2018 The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim case, observed that monthly income could be fixed after taking into account the tax returns. However, the details of tax payment must be...