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...

Comparable Used For First Time During ALP Determination Must Be Justified With Reasons: Punjab & Haryana High Court Deletes Arm's Length Price

The Punjab & Haryana High Court held that Revenue Department must establish compelling reasons for taking departure from the comparables selected by him in previous assessment years if he opts so, while carrying out transfer pricing adjustment to the international transactions of the assessee. The Division Bench comprising Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth observed that “Once the TPO himself has not accepted the said comparable which were considered for ...

Jharkhand High Court Quashes Criminal Proceedings For Delayed Tax Payment In Absence Of Any Penalty Proceedings

The Jharkhand High Court has quashed the criminal proceedings against a man accused of tax evasion under the Income Tax Act, 1961. The case involved allegations that the petitioner, a tractor dealer, failed to pay the tax liability associated with his income tax returns for the assessment year 2011-12, despite declaring the amount in his filing.The court's decision to quash the proceedings hinged on the fact that the tax was eventually paid, albeit with some delay, and that there were no pending...

Imposing Redemption Fine Equal To Value Of Goods Is Harsh; CESTAT Directs Reduction

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while reducing the quantum of the redemption fine, held that imposing a redemption fine equal to the value of goods is harsh.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that the total unbranded goods were valued at Rs. 1,65,49,893/-, and a redemption fine of the same value was imposed by the Commissioner in the impugned order. He also confiscated 2880 pairs of...

AO Ought To Grant TDS Credit In Compliance Of ITAT's Directions: Delhi High Court

The Delhi High Court has held that the Assessing Officer (AO) ought to grant TDS credit in compliance with the Income Tax Appellate Tribunal's (ITAT's) directions.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that the Tribunal had framed an unequivocal direction for the AO to verify and attend to the grievance of short credit of TDS, bearing in mind what stood reflected in Form 26AS and which amount was quantified at Rs. 2,03,36,66,125. The petitioner/assessee had...

Preferential Location Charges Charged By Builder Includible In Taxable Value For Service Tax Levy: CESTAT

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the preferential location charges charged by the builder includible in the taxable value of the service tax levy.The bench of P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) have observed that the service is rendered in the context of a location, which does not make it a tax on land within the meaning of Entry 49 of List II. The tax continues to be a tax on the rendering of...

AO Made No Enquiries In Respect Of Large Investment Made By Assessee Without Any Cash: Ahmedabad ITAT Upholds Revision U/s 263

Finding that no enquiries were being carried out by AO in respect of the discrepancies which were very much evident out from the large investment made by assessee in property even when assessee has no such cash, the Ahmedabad ITAT held that the order of AO was rightly treated as erroneous and prejudicial to the interest of the revenue by the Pr. CIT.As per the Explanation 2 to section 263 of the Income tax Act, the order passed by the AO shall be deemed to be erroneous and pre-judicial to the...

Dept. To Wait For Outcome Of DRI Investigation Before Rejecting Request For Correction Of Declared Value In Bill Of Entry: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the department would have awaited the outcome of the DRI investigation before rejecting the request for correction of the declared value in the bill of entry.The bench of P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) have observed that, though there was considerable delay in seeking amendment of the bill of entries, since the goods were cleared provisionally, records...

FTA Benefit Available On Import Of Clear Float Glass From Malaysia, Eligible For BCD Exemption: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Free Trade Area (FTA) benefit is available on the import of clear float glass (CFG) from Malaysia, and the assessee is eligible for Basic Custom Duty (BCD) exemption.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the CFG is rightly classifiable under CTH 70051090 as identical imports of CFG were initially assessed provisionally in...

Inadequate Enquiry By AO Would Not By Itself Give Occasion To CIT To Pass Order U/s 263 Merely Based On Difference Of Opinion: Ahmedabad ITAT

The Ahmedabad ITAT held that the PCIT cannot impose his own view in the proceedings u/s 263 by overriding the view taken by the AO, without bringing any new fact or anything adverse on record.Section 263 of the Income Tax Act is a provision that empowers the Commissioner of Income Tax to revise any order passed by an assessing officer if the Commissioner believes that the order is erroneous and prejudicial to the interests of the revenue.The ITAT held so after finding that the AO had taken a...