Tax
Central Charges & International Taxation Charges Are Not Excluded From Purview Of Faceless Mechanism U/s 144B R/w/s 151A: Bombay High Court
The Bombay High Court held that the faceless mechanism would be applicable to all cases of Central Charges and International Taxation charges. However, the High Court clarified that it is only the assessment proceedings which would be required to be undertaken outside the faceless mechanism. Section 151A of the Income Tax Act empowers the Central Government to make a scheme for purpose of assessment, reassessment, or recompilation u/s 147; issuance of notice u/s 148 for conducting...
Acquisition Of Flipkart Singapore Shares, Double Taxation Avoidance Treaty,No Invention To Evade Tax: Delhi High Court
While overturning the AAR ruling in the case of Tiger Global - Flipkart transaction, the Delhi High Court allowed India Mauritius DTAA (Double taxation avoidance agreement) benefit to petitioner/ assessee on ground that the transaction stands grandfathered by Article 13(3A) of India-Mauritius Treaty. Simultaneously, the High Court held that Tax Residency Certificate (TRC) issued by a jurisdiction is 'sacrosanct' unless any proof of tax fraud/sham transaction is substantiated by the...
Failure TO Disclose All Material Facts Fully & Truly During Original Assessment Is Vital For Invoking Jurisdiction U/s 147: Bombay HC
The Bombay High Court recently clarified that it is not open to the Revenue to initiate reassessment on the premise that it can simply form a belief supported by its own reasons, thereby ignoring the explicit formulation of the jurisdiction within which reassessment may be initiated. The High Court therefore quashes the reassessment notice issued under old regime of Section 148 along with the order disposing off Assessee's objection against re-opening of the assessment. Section 147...
Department Can Centralize Assessment At One Place If There Are Sufficient Reasons: Bombay High Court Upholds Transfer Order U/s 127
Finding that the Assessee had transactions with certain Indian citizens, who were subject to search operation and whose assessments were centralized with the Central Circle at New Delhi, the Bombay High Court find sufficient reasons for proposing of Assessee's case to be centralised at New Delhi. The High Court also found that the assessment of such persons would certainly have a bearing on the assessment of the Assessee, as there are inter se transactions between such parties. ...
Reopening Proceedings In Defiance Of Mandatory Procedure U/s 151A To Be Quashed: Bombay High Court
The Bombay High Court clarified that the Assessing Officer is required to adhere to the provisions of Section 151A read with CBDT Notification dated Mar 29, 2022 for resorting to a procedure u/s 148A and the consequent notice u/s 148. Section 151A of the Income Tax Act empowers the Central Government to make a scheme for the purpose of assessment, reassessment, or recompilation u/s 147 (Income-escaping assessment); Issuance of notice u/s 148 for conducting income-escaping assessment;...
ITAT Weekly Round-Up: 18 To 24 August 2024
Income Tax Deduction Allowable To Interest Income 'Attributable' To Cottage Industry Business: ITATCase Title: Potheri Village Weaning Food Manufacturing Womens Development Industrial Coop Versus ITOThe Chennai bench of Income Tax Appellate Tribunal (ITAT) has held that the income tax deduction allowable to interest income 'attributable' to cottage industry business.Gift Received From Non-Resident Brother Is Exempt From Taxation In India : Mumbai ITATCase Title: Abul Wais Abdus Salam versus...
CESTAT Weekly Round-Up: 18 To 24 August 2024
SEZ Unit In India Is A Territory Deemed To Be Outside India, No Excise Duty Payable On Manufacturing Goods: CESTATCase Title: Commissioner Appeals – CGST & Central Excise Rajkot Versus M/S. Reliance Industries Ltd, Unit Of RSEZ JamnagarThe Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that the SEZ Act exempts all duties in respect of the goods manufactured in the Special Economic Zones (SEZ).Import Of Floodlight For World Cup On Duty Exemption, SCN...
Incorrect Address Mentioned In Invoices Can't Be A Reason To Deny Cenvat Credit: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an incorrect address mentioned in invoices cannot be a reason to deny CENVAT credit.The bench of Rachna Gupta (Judicial Member) has observed that the invoices with incorrect addresses issued by the input service providers contain all the requisite particulars as required under the proviso to Rule 9(2); therefore, Cenvat credit cannot be denied to the appellant. In fact, Rule 9(2) nowhere requires...
Indirect Tax Weekly Round-Up: 18 To 24 August 2024
Bombay High CourtNon-Submission Of “Bill Of Export” Can't Be Treated As Non-Discharge Of Export Obligation, If Supply To SEZ Unit Is Proved: Bombay High CourtCase Title: Phoenix Industries Limited Versus UOIThe Bombay High Court has held that if the party is able to show proof of supply to the Special Economic Zone (SEZ) Unit, then non-submission of the “Bill of Export” cannot be treated as non-discharge of proof of export obligation (EO).Madras High CourtCommercial Tax Officer Not Obligated To...
Direct Tax Weekly Round-Up: 18 To 24 August 2024
Delhi High CourtAmount Paid For Obtaining Mining Rights In E-Auctions Can't Be Construed As Income; Delhi High Court Quashes Reassessment OrderCase Title: Vedanta Limited Versus ACITCitation: 2024 LiveLaw (Del) 917The Delhi High Court has quashed the reassessment order and held that the amount paid for obtaining mining rights in e-auctions cannot be construed as income.Section 80-IA(7) Deduction Can't Be Denied For Failure To Digitally File Audit Report: Delhi High CourtCase Title: Shree Bhavani...
Delay In Filing Appeal, Notices Uploaded On GST Portal , Copy Not Served: Madras High Court Condones Delay
The Madras High Court has condoned the delay of 285 days in filing the appeal on the grounds that the notices were uploaded on the GST portal but no hard copy was served on the assessee.The bench of Justice Krishnan Ramasamy has observed that the delay was not wilful but due to bona fide reasons, and a reasonable cause has been shown by the petitioner for the delay. The petitioner/assessee is a firm that runs a wholesale business selling paintings, and he has been regular in filing the monthly...
Tax Invoice, E-Way Bill, GR Or Payment Details Not Sufficient To Prove Physical Movement Of Goods: Allahabad High Court Upholds Penalty U/S 74 GST
Recently, the Allahabad High Court has held that production of tax invoice, e-way bill, GR or payment details is not sufficient to show the actual physical movement of the transaction for the purposes of availing Input Tax Credit under Section 16 of the Goods and Service Tax Act, 2017. Section 16 of the Goods and Service Tax Act, 2017 provides for the conditions and eligibility for claiming input tax credit. Section 16(2) provides that an assesee is not entitled any input tax credit...