Tax
Assessment Re-Opened By Dept. Based On 'Change Of Opinion'; Himachal Pradesh High Court Quashes Reassessment
The Himachal High Court quashed the reassessment order on the grounds that the assessment was re-opened by the department based on 'change of opinion'.The bench of Justice Tarlok Singh Chauhan and Justice Sushil Kukreja has observed that as per the record the objections were raised only by the Audit Party and, therefore, reasons have been recorded on borrowed satisfaction of the Audit Party and not that of the respondent-department. A perusal of the reasons for reopening the case would make it...
Direct Tax Weekly Round-Up: 23 To 29 June 2024
Calcutta High CourtRaising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property TaxCitation: 2024 LiveLaw (Cal) 149Case Title: Saila Ghosh Versus State of West BengalThe Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax.Andhra Pradesh High CourtBelated Deposit Of TDS, Andhra Pradesh High Court Quashes Prosecution Against AssesseeCitation: 2024 LiveLaw...
Indirect Tax Weekly Round-Up: 23 To 29 June 2024
Bombay High CourtDiscrepancies Between Dates Of Creation And Signing Assessment Order; Bombay High Court Quashes MVAT Order Passed Beyond 4 YearsCase Title: Karvy Innotech Limited Versus State of MaharashtraThe Bombay High Court, while noting the discrepancies between the dates of creation and signing of the assessment order, quashed the Maharashtra Value Added Tax Act (MVAT) Order, which was passed beyond the limitation period of 4 years.Madras High CourtTax Demand on Post Sale Discounts...
Assessment Order Passed Against Dead Person Is Nullity: Karnataka High Court
The Karnataka High Court, while quashing the assessment order, held that the assessment order under Section 147 read with Section 144 of the Income Tax Act amounts to nullity.The bench of Justice S. Sunil Dutt Yadav has observed that when the assessee dies during the pendency of the proceedings, proceedings are to be continued through the legal representatives of the deceased. The legal representative of the deceased assessee has questioned the validity of the assessment order passed under...
No Service Tax Payable On Amount Received By Automobile Dealer From Manufacturer As Trade Discount: Delhi CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on an amount received by an automobile dealer from the manufacturer as a trade discount.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that any amount received by an automobile dealer from the manufacturer as a trade discount, including a quantity discount (which is a trade discount given on the basis of volume of purchase), are...
Customs Brokers Not Liable Once Verification Of Address Is Completed: Delhi CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations. The bench of Rachna Gupta (Judicial Member) and P. V. Subba Rao (Technical Member) observed that once verification of the address is completed by a Customs Broker, if the client moves to...
Net Profit Shall Be Estimated @2.75% Of Total Turnover In Case Its Rate Is Highest In First Year Of Operation: Cuttack ITAT
Finding that the assessee has shown highest rate of net profit in its first year of business, the Cuttack ITAT directed for estimation of net profit @2.75% on the total turnover of the assessee after reduction of the airport rent cost, sheet cost and truck rent cost as there is no possibility of assessee earning any income out of the said expenses. The Bench of Manish Aggarwal (Accountant Member) and George Mathan (Judicial Member) observed that “the assessee has shown the highest...
Service Tax On Commission Paid To Foreign Commission Agents Is Payable Under RCM From 18.04.2006: Bangalore CESTAT
The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax on commission paid to the foreign commission agents is payable under reverse charge only from April 18, 2006, and not from January 1, 2005.The bench of P.A. Augustian (Judicial Member) and Pullela Nageswara Rao (Technical Member) has observed that the appellant has discharged the service tax for the period from April 18, 2006, to December 27, 2008, and also intimated it to the...
Service Tax Exemption On Laying Pipelines For Water Supply And Drainage: Ahmedabad CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on laying pipelines for water supply and drainage.The bench of Somesh Arora (Judicial Member) and C.L. Mahar (Technical Member) has observed that the appeals appear to be part of the investigation that has been carried out against M/s. Shree Hindustan Fabricators, and the appellants are only the sub-contractors of the main contractor, M/s. Shree Hindustan Fabricators, and...
Rejection Of Belated Objections By DRP Does Not Extend Limitation Of Passing Final Assessment U/s 144(4): Delhi ITAT
The New Delhi ITAT held that once the DRP has chosen to reject the objections of assessee on the ground of delay, its resultant effect is confirmation of merits of draft order passed by the AO. However, the ITAT clarified that such rejection by DRP on ground of delay in no way extends the limitation of passing the final assessment order u/s 144(4) of the Act. The ITAT held so while finding that though the DRP has rejected the objections, but did not issue any directions for the...
“Convenience Fee” & “Cancellation Fee” Not Connected To Business Promotion; CESTAT Quashes Service Tax Demand Against Yatra Online
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the service tax demand against Yatra Online, held that “convenience fee” and “cancellation fee” are recovered in the course of the provision of the service related to the booking of tickets for passage through air and not in connection with any business promotion.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the “convenience fee" and...
Tax Demand on Post Sale Discounts Received By Way Of Financial Credit Notes Not Tenable: Madras High Court
The Madras High Court has quashed the order imposing tax demands on post-sale discounts received by way of financial credit notes on the ground that receiving a discount is not tenable in law.The bench of Justice Senthilkumar Ramamoorthy has observed that the assessing officer concluded that the taxable person is providing a service to the supplier while taking advantage of a discount by facilitating an increase in the volume of sales of such supplier. This conclusion is ex facie erroneous and...