Foreign National Wearing Personal Jewellery To India Not Subject To Import Duty: Delhi High Court

The Delhi High Court has held that the jewellery worn to India by a foreign national is not subject to customs duty.A division bench of Justices Yashwant Varma and Ravinder Dudeja thus declared as illegal the action of the Customs Department, confiscating a Thai national's gold chain and kara. It observed,“In the present case also, petitioner is a foreign national, who brought a chain and a kara by wearing them on his body while arriving from Bangkok. The same was not brought in a concealed...

Orissa High Court Quashes Order After Assessee Fails To Prosecute Appeal Due To Ongoing Medical Treatment

The Orissa High Court, considered that the assessee was unwell and undergoing medical treatment at the time the notices regarding his appeal were served and accordingly quashed the order demanding liability for unpaid tax. The Bench consisting of Justices Arindam Sinha and M.S. Sahoo was considering a case in which the assessee/petitioner failed to reply to the notice regarding his appeal due to health issues. In this case, the assessee/petitioner failed to attend scheduled...

Department Failed To Prove Non-Existence Of Firms: Rajasthan High Court Grants Bail To Assessee Charged For Issuing Fake Invoices

The Rajasthan High Court granted bail to the assessee charged for issuing fake invoices to the firms on the ground that the department failed to prove that these firms are not in existence and their GST registration have been cancelled. The Bench of Justice Ganesh Ram Meena observed that “……there is nothing on record that who claimed how much input tax credit on the basis of alleged fake invoices said to have been issued by the accused”. In this case, the assessee/accused...

Provisions Of Foreign Trade Policy Cannot By Itself Authorise Levy Of Interest U/S 28AA Of Foreign Trade Act: Kerala High Court

The Kerala High Court stated that the provisions of the Foreign Trade Policy cannot by itself authorise the levy of interest under Section 28AA of the Foreign Trade (Development and Regulation) Act, 1992, as such levy must be supported by plenary legislation. The Bench of Justice Gopinath P. was considering a case where the assessee challenged the interest imposed upon him under the provisions of Section 28AA of the Customs Act, 1962 on the amounts repaid by the assessee on the...

2% Additional Tax For Acquiring 'Second Vehicle' Can't Be Levied When First Vehicle Has Already Been Sold: Telangana High Court

The Telangana High Court recently set aside Moosarambagh RTO's direction imposing 2% additional tax on a resident's purchase of a Mahindra XUV 700 car by labelling it to be his 'second vehicle'. As per the Telangana Motor Vehicles Taxation Act, 1963, vehicles that cost over Rs 20 lakh will be charged 18%. A second vehicle purchased in the name of the owner will be charged an additional 2% tax. Justice Nagesh Bheemapaka clarified that the additional tax on a second vehicle is...

Loss In Derivatives Is Not A Speculative Transaction And Can Be Set Off Against Business Income Of Assessee: Kerala High Court

The Kerala High Court stated that loss in derivatives is not a speculative transaction and can be set off against business income of the assessee. Further, this is not a case where Section 73 of Income Tax Act is attracted since it deals with losses in speculation business. The Bench of Justice A.K. Jayasankaran Nambiar observed that “……..a loss in the derivative business would consequently be a business loss for the purposes of Section 72, and a set off of such business loss would...

"Personal Jewellery" Of Person Coming To India Not Subjected To Customs Duty: Delhi High Court

The Delhi High Court recently granted relief to a woman whose over 200 gm gold jewellery was confiscated by the Customs on her return from Dubai. In doing so, a division bench of Justices Yashwant Varma and Ravinder Dudeja held that “personal jewellery” which is not found to have been acquired on an overseas trip and was always a “used personal effect” of the passenger would not be subject to duty under the Baggage Rules, 2016. Rule 2(vi) of the 2016 Rules, while defining “personal ...

Appellate Authority Has To Consider Grounds Raised In Appeal And Decide On Merits, Even If Appeal Is Heard Ex Parte: Patna High Court

The Patna High Court stated that the Appellate Authority has a duty and an obligation to examine grounds raised by assessee in memorandum of appeal and decide issue on merits even if appeal is filed ex parte. The Bench consisting of Chief Justice K. Vinod Chandran and Justice Partha Sarthy, stated that “the Appellate Authority even while considering the appeal ex parte will have to consider the grounds raised in the memorandum of appeal, deciding the appeal on merits……” The ...

S.153C Of IT Act Restricts Assessment Beyond Documents Considered By AO To Derive Satisfaction Note For Initiating Proceedings On 'Other Person': Delhi HC

The Delhi High Court has answered in the affirmative the question whether Section 153C of the Income Tax Act, 1961 restricts an assessing officer from enquiring beyond the documents considered for deriving satisfaction note for initiating assessment/ re-assessment of the 'other person'. Section 153C contains a special provision relating to assessment of 'other person', pursuant to material found during the search operations conducted under Section 132 on any person or as a result of ...

Loss Of FD Investments Doesn't Qualify As 'Trading Loss' For Deduction From Income U/S 28 Of Income Tax Act: Telangana HC

The Telangana High Court has held that the loss of fixed deposit investments by an assessee does not qualify as a 'trading loss' for the purposes of claiming deduction from income under Section 28 of the Income Tax Act, 1961. Under Section 28, one may deduct expenses that are fully and solely incurred in the course of operating a business or practicing a profession. In the case at hand, the appellant, engaged in the business of sale of electrical goods, money lending and dealing in...

Only Income From Investment Made By Charitable Institution In Violation Of S.13(1)(d) Income Tax Act Is Liable To Tax: Telangana HC

The Telangana High Court has held that the benefit of exemption under Section 11 of the Income Tax Act, 1961, can be denied only on income from such investments made by charitable or religious institutions, which are in violation of Section 13(1)(d) of the Act. Section 11(1) of the Act mandates that any income derived from the property held under the trust wholly for charitable purpose or religious purpose is exempted from the total income to the extent to which such income is applied...

Tax Weekly Roundup: November 25 - December 01, 2024

HIGH COURTS Allahabad HC [S.73(10) UPGST] Time Extension Notification Dated 24.04.2023 Valid Only From 31.03.2023, Not Before: Allahabad High Court Case Title: M/s A.V. Pharma Thru. Its Prop. Smt. Madhu Vohra v. State of U.P. Thru. Prin. Secy. State Tax Lko. and 2 Ors. Case no.: WRIT TAX No. - 264 of 2024 The Allahabad High Court has held the time extension notification dated 24.04.2023 extending time period for passing orders under Section 73(9) and 73(10) of the Uttar...