Tax
Tax Monthly Digest: November 2024
SUPREME COURT DRI Officers Can Issue Show-Cause Notices Under Customs Act : Supreme Court Allows Review Against 'Canon India' Judgment Case Details : COMMISSIONER OF CUSTOMS vs. M/S CANON INDIA PRIVATE LIMITED Case no.: R.P.(C) No. 000400 - / 2021 The Supreme Court today (November 7) held that the officers of the Directorate of Revenue Intelligence(DRI) have the power to exercise powers under the Customs Act, 1962 to issue show-cause notices and recover duties The Court held...
AO Cannot Assess 'Other Incomes' If No Addition Is Made On Account Of 'Reasons' For Which Reassessment U/S 147 Of IT Act Was Initiated: Delhi HC
The Delhi High Court has made it clear that an Assessing Officer (AO) cannot assess other incomes of an Assessee in a case where no addition is made on account of the “reasons” for which reassessment under Section 147 of the Income Tax Act, 1961 was initiated. Section 147 empowers the AO to assess or reassess income and also any other income, if he has “reason to believe” that any income chargeable to tax has escaped assessment for any assessment year. The controversy in the case at...
Finance Act, 2013 | Audit Report Determining Tax Liability Doesn't Bar Eligibility Under Voluntary Compliance Encouragement Scheme: Delhi HC
The Delhi High Court has held that an audit report determining liability towards tax dues is not a notice or an order of determination as contemplated under Section 106(1) of the Finance Act, 2013. Section 106 talks about Person who may make declaration of tax dues. Sub-section (1) states that any person may declare his tax dues in respect of which no notice or an order of determination under section 72 or section 73 or section 73A of the Chapter has been issued or made before the ...
GST Department Not Empowered To Issue Notices In Name Of Non-Existent Entity Post Amalgamation: Delhi High Court
The Delhi High Court has made it clear that neither Section 160 nor Section 87 of the Central Goods and Services Tax Act, 2017 enable the Department to issue notice in the name of an entity which ceased to exist post amalgamation. Section 160 is pari materia to Section 292-B of the Income Tax Act, 1961 which provides that no notice or assessment or any proceedings can be deemed to be invalid merely for the reason of any mistake, defect or omission in such notice, assessment or other...
Allahabad High Court Directs State GST Dept To Not Initiate Action For Assessment Years In Which Central GST Had Already Acted
The Allahabad High Court has directed the State Goods and Service Tax Authorities to not take action for any assessment year in which the Central Goods and Service Tax Authorities have already taken action. Petitioner approached the High Court under Article 226 of the Constitution of India against the actions taken by the State and Central GST Authorities for the same assessment year, 2017-18. It was argued that once State GST Authorities had completed assessment proceedings under...
Appeals U/S 260A Of Income Tax Act Not Sustainable In Absence Of Perversity In Tribunal's Fact Finding: Allahabad High Court
While entertaining an Income Tax Appeal, the Allahabad High Court has held that an appeal under Section 260A of the Income Tax Act, 1961 cannot be sustained without establishing a perversity with the fact finding of the Tribunal. “In the instant appeal the department has only challenged the fact finding off the Tribunal. A catena of Supreme Court judgments have concluded that in relation to facts, no substantial question of law would arise unless the finding of fact is perverse,” held...
Once HC Directs To Avail Alternate Remedy, Appeal U/S 107 GST Cannot Be Dismissed As Not Maintainable: Allahabad High Court
The Allahabad High Court has held that once the High Court has directed the assesee to approach the appellate authority under Section 107 of the Central Goods and Service Tax Act, 2017, the appeal cannot be dismissed as not maintainable. Counsel for petitioner argued that notice and demand under Section 79 of the CGST Act were issued to the petitioner, pursuant to which it approached the High Court. The then Division Bench relegated the petitioner to alternate remedy of appeal under...
Proper Officer Must Provide 'Reason To Doubt' Value Of Goods Declared By Importer Before Initiating Reassessment U/S 17 Customs Act: Delhi HC
The Delhi High Court has held that the proper officer under the Customs Act, 1962 must provide “reasons to doubt” the declared value of imported goods, before proceeding with reassessment under Section 17. Pertinent to note that Section 17 of the Customs Act, 1962 relates to 'Assessment of duty'. An entity intending to import goods is required to self-assess the duty which would be leviable. For this purpose, the importer is required to electronically present on the customs automated...
Customs Act | Importer Accepting Enhanced Valuation Of Goods For Expeditious Clearance Not 'Waiver' Of Right To Contest Re-Assessment: Delhi HC
The Delhi High Court has held that where enhancement of valuation of goods by the proper officer for the purpose of determining Customs duty is accepted by the importer under protest, for expeditious clearance, it cannot be said that the importer has waived its right to question the reassessment. Pertinent to note that Section 17 of the Customs Act, 1962 relates to 'Assessment of duty'. Sub-section (5) provides that in a case where the importer confirms his acceptance of the...
[Taxation] Passing Order Without Providing Opportunity Of Hearing, Providing Documents Violates Natural Justice: Allahabad HC Reiterates
While deciding a case relating to Input Tax Credit, the Allahabad High Court has held that a quasi-judicial body must provide an opportunity of hearing to a person before imposing liability on them. The Division Bench comprising Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit held that as per the doctrine of audi alteram partem (let the other side be heard as well), such orders cannot be passed without providing the assessee a proper opportunity to make present their case. It...
Patna High Court Dismisses Plea Challenging Notifications Extending Timeline For Issuance Of Orders U/S 73(10) Of CGST Act
The Patna High Court has rejected a petition challenging Notifications extending timeline for issuance of Orders under Section 73(10) of the GST Act.The Division Bench, comprising Chief Justice K. Vinod Chandran and Justice Partha Sarthy was dealing with the case where the assessees/petitioners filed writ petition against Notification Nos. 13/2022-Central Tax, 9/2023-Central Tax & 56/2023-Central Tax which extended the dates for issuing orders under Section 73(10) of the GST Act.In this...