Tax
Loans Extended By NOIDA Is Not Commercial Activity, Eligible For Section 10(46) Exemption: Delhi High Court
The Delhi High Court has held that the loans and advances extended by the New Okhla Industrial Development Authority (NOIDA) are not commercial activities and are eligible for exemption under Section 10(46) of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the respondent department has erred in holding that the loans and advances extended by the petitioner would fall within the ambit of commercial activity. The conclusion not only...
Bagasse Is Not A Manufactured Item And Not Dutiable: CESTAT
The Allahabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that bagasse is not a manufactured item and hence not dutiable and does not attract Rule 6(3) of the CENVAT Credit Rules, 2002 (CCR 2004).The bench of P.K. Choudhary (Judicial Member) has observed that the department should have suo-motu refunded the amount paid by them on clearance of Bagasse under the provisions of Rule 6(3) of CCR, 2004. There is no question of any limitation being attracted.Rule...
Reassessment Notice Not Issued In Terms Of Procedure Prescribed Under Faceless Assessment; Karnataka High Court Grants Interim Stay
The Karnataka High Court has granted an interim stay on a reassessment notice issued under Section 148 of the Income Tax Act, 1961 which was not issued in terms of the procedure prescribed under Faceless Assessment.The bench of Justice Sunil Dutt Yadav has stayed the reassessment notice issued by the jurisdictional assessing officer under Section 148 of the Income Tax Act, 1961 since the notice could not have been issued by the jurisdictional assessing officer but ought to have been issued in...
Assessee Can't Be Expected To Deduct TDS From Payments Which Became Taxable Owing To Retrospective Amendment: Bombay High Court
The Bombay High Court at Goa, while upholding the order of the Income Tax Appellate Tribunal (ITAT), has held that the assessee cannot be expected to deduct tax at source from payments that became taxable owing to a retrospective amendment.The bench of Justice M.S. Karnik and Justice Valmiki Menezes has observed that it is not open to the department to take a divergent view on the expenditure for renovation and construction of schools or temples when it has allowed the expenditure on the...
Meghalaya High Court Directs Customs Commissioner To Refund Rs. 60 Lakhs For Destroying Seized Betel Nuts
The Meghalaya High Court has directed the customs commissioner to refund Rs. 60 lakh for destroying seized betel nuts.The bench of Justice H. S. Thangkhiew has observed that the Tribunal found that the goods were neither imported nor proved to be smuggled. Though the case was assailed before the Division Bench and ultimately before the Supreme Court, it was dismissed.The goods of the petitioner, betelnuts weighing 32 MT, had been seized by the customs commissioner. The petitioner prayed for...
CESTAT Quashes Service Tax Demand On Housekeeping Services Provided To UN Agencies
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand in respect of housekeeping services provided to UN agencies and educational institutions.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the exemption to the United Nations is general in nature, and services provided to UNDP, UNICEF, UN Women, UNAIDS, UNODC, and UNOPS are available on the basis of Mega Exemption Notification...
Filing Statutory Appeal After Writ Proceedings Concluded Is Abuse Of Process: Andhra Pradesh High Court Imposes Cost
The Andhra Pradesh High Court has held that the filing of the statutory appeal by the writ petitioner after writ proceedings and subsequent proceedings against the same order of assessment, just to avoid the compliance of the directions of the writ Court, is nothing but abuse of the process of the Court.The bench of Justice Ravi Nath Tilhari and Justice Kiranmayee Mandava has observed that the writ petitioner is not entitled to the exclusion of time taken in writ proceedings and the subsequent...
ITAT Half Yearly Digest: January To June 2024 - PART II
Failure To Produce Share Certificate Is No Basis To Doubt Share Purchase Transaction: Mumbai ITAT Refers Art 265 Of ConstitutionCase Title: Shantaben Fathechand Mehta verses Income-tax Officer Referring to Article 265 of the Constitution of India, the Mumbai ITAT remanded the case to the file of AO with direction to verify factual aspects, pertaining to the purchase of the shares in consideration and re-compute the liability accordingly.Trading Income From Sale Of Scrips Can't Be Conferred As...
ITAT Half Yearly Digest: January To June 2024 - PART I
S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITATCase Title: Asstt. CIT Versus Iqbal Ali KhanThe Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that exemption under Section 54F of the Income Tax Act is not available on property predominantly being used for religious purposes.ITAT Deletes Addition Of Unexplained Investment In Stock Valuation DifferenceCase Title: Ethiraj Hotel Mart Versus DCITThe Chennai Bench of Income Tax...
Indirect Tax Half Yearly Digest: January To June 2024
Supreme CourtCustoms Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme CourtCase Title: M/s Global Technologies and Research versus Principal Commissioner of Customs, New Delhi (Import)Citation : 2024 LiveLaw (SC) 239Recently, the Supreme Court held that under the Customs Act, the Importer's Bill of Entry of subsequent imported goods can be discarded if the subsequent imported goods are undervalued to the previously...
Indirect Tax Half Yearly Digest: January To June 2024 - PART II
Allahabad High CourtAllahabad High Court Grants Bail To Applicant Accused Of Availing Excess Input Tax Credit, As Proceedings U/S 70 And 74 Pending Since LongCase Title: Qamar Ahmed Kazmi vs. State of U.P. Citation: 2024 LiveLaw (AB) 131The Allahabad High Court has granted bail to the applicant accused of availing excess input tax credit as the proceedings under Section 70 and Section 74 of the Goods and Service Tax Act, 2017 were pending since long.Tax Dues Can't Be Collected From Director Of...
Direct Tax Half Yearly Digest: January To June 2024 - PART II
Kerala High CourtAssessee Can't Indefinitely Seek Time In Response To SCN: Kerala High CourtCase Title: Shaju Pachelil Pathrose Versus Additional/Joint/Deputy/Assistant Commissioner Of Income TaxCitation: 2023 LiveLaw (Ker) 12The Kerala High Court has held that the assessee cannot indefinitely seek time in response to a show cause notice.Writ Petition Challenging Orders Of Tamil Nadu Assessing Authority Not Maintainable Merely For Having A Bank Account In Kerala: Kerala High CourtCitation: 2024...