Tax
Additions U/s 69C Based Merely On CBIC Information Can't Be Sustained: Delhi High Court
The Delhi High Court sets aside the assessment order and remits the matter to AO on the ground that the additions of Rs.70.10 Cr. made under Section 69C as unexplained expenditure based merely on information received from Central Board of Indirect Taxes & Customs (CBIC) is unsustainable. As per Section 69C of the Income tax Act, where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or...
'Co-Ordinated Investigation' For Prevention Of Tax Evasion Is Good Ground For Transfer: Delhi HC Refuses To Interfere With Transfer Order U/s 127
The Delhi High Court refuses to interfere with the order of the AO passed u/s 127 where the case of the Taxpayer was centralized and transferred from Income-tax Officer (ITO), Delhi to Deputy Commissioner of Income-tax (DCIT), Central Circle, Haryana. As per Section 127 of Income tax Act, the [Principal Director General or Director General] or [Principal Chief Commissioner or Chief Commissioner] or [Principal Commissioner or Commissioner] may, after giving the assessee a reasonable...
Search U/s 132 Is Invalid If Material Considered For Authorizing Search Is Irrelevant And Unrelated: Bombay High Court
The Bombay High Court recently quashed the search proceedings authorized by CBDT u/s 132(1) along with consequential notices and further actions on the ground that the material considered for authorizing the search is irrelevant and unrelated, and that “the reasons recorded, only indicates a mere pretence”. Finding that the reasons forming part of the satisfaction note must satisfy the judicial conscience, the Division Bench comprising Justice K. R. Shriram and Justice Dr. Neela ...
Indirect Tax Cases Weekly Round-Up: 12 To 18 May 2024
Supreme CourtLabelling and Re-Labelling of Containers Qualifies as 'Manufacture' for CENVAT Credit Under Excise Act: Supreme CourtCase Details: Commissioner Of Central Excise Belapur Vs Jindal Drugs Ltd. Citation : 2024 LiveLaw (SC) 374The Supreme Court has held that labelling or re-labelling of containers amounts to 'manufacture' under the Central Excise Act for availing cenvat credit. Delhi High CourtNon-Compliance Of Notification Conditions For Export Of Banned Non-Basmati White Rice; Delhi...
Assessee Can't Be Obstructed From Availing DTVSV Act Benefits Even When Limitation Period For Appeal Hasn't Expired: Delhi High Court
The Delhi High Court has held that the assessee can't be obstructed from availing of the benefits of the Direct Tax Vivad se Vishwas Act, 2020 (DTVSV Act) even where the time limit for an appeal has not expired.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the DTVSV Act aspires to finally free the tax arrears locked in litigation combat for ages and ultimately ensures timely collection of tax. In the present case, the dispute pertains to AY 2010–11....
Direct Tax Cases Weekly Round-Up: 12 To 18 May 2024
Delhi High CourtAO Can't Proceed With Assessment In Absence Of Section 127 Transfer Order: Delhi High CourtCase Title: Rajsheela Growth Fund (P) Ltd. Versus ITOThe Delhi High Court has held that the Assessing Officer cannot proceed with assessment in the absence of a transfer order under Section 127 of the Income Tax Act.Bombay High CourtMerely Brandishing Newspaper Cuttings Doesn't Prove Sharing Commercial Expertise: Bombay High CourtCase Title: Hindustan Export & Import Corporation Private...
Bus Meant For Carrying Passengers, Can't Be Called Means Of Transport Of Goods, Service Tax Payable: CESTAT
The Delhi Bench of Customs, Excise and Service Tax Appellate (CESTAT) has held that service tax is payable on buses meant for carrying passengers and cannot be called means of transport of goods. The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that on the applicability of the benefit of exemption under Clause 22(b) of the Notification No. 25/2012-ST, the authorities took a very hypothetical view to say that the appellant had booked the income from...
Crane Services To Transport Department Does Not Constitute Sale: Rajasthan High Court
The Rajasthan High Court, Jaipur Bench has held that crane services to the transport department does not constitute sale.The bench of Justice Sameer Jain has observed that the crane services provided by the respondent-assessee do not constitute sale as provided under Section 2(35)(iv) of the Rajasthan Value Added Tax Act, 2003 and hence, the order of the Tax Board does not call for any interference.The matter pertains to the assessment years, 2006/2007 to 2010/2011. A survey was conducted at the...
Right Of Appeal Relating To Value Of Service Maintainable Before Supreme Court: Meghalaya High Court
The Meghalaya High Court has held that the right of appeal relating to the value of service is maintainable before the Supreme Court.The bench of Chief Justice S. Vaidyanathan and Justice W. Diengdoh has observed that there is an appellate remedy available to the appellant or to the aggrieved party in terms of Section 35G of the Central Excise Act, 1944; the issue pertaining to the value of service cannot be agitated before the High Court. The party has a right only before the Supreme Court in...
S.2(e) UPVAT | Plant, Machinery Sold After Closure Of Business Are Capital Goods, Excluded From Levy Of Tax: Allahabad High Court
The Allahabad High Court has held that plant and machinery sold after the closure of business are capital goods under Section 2(f) of the Uttar Pradesh Value Added Tax Act, 2008 and are excluded from levy of tax under the amended definition of 'business' under Section 2(e) of the Act.The definition of 'business' under Section 2(e)(iv) of the Uttar Pradesh Value Added Tax Act, 2008 was amended in 2014 to include any transaction, even after the closure of business, if it relates to sale of goods...
[Income Tax] Once Books Of Accounts Not Objected To Before Tribunal, AO Can't Disturb Gross Profit Rates Applied By Assesee: Allahabad High Court
The Allahabad High Court has held that once the acceptance of books of accounts by the Commissioner of Income Tax (Appeals) have not been objected to by the Assessing Authority before the Income Tax Appellate Tribunal, it is not open to the Assessing Officer to disturb the gross profit rate as declared by the assesee.The bench comprising of Justice Saumitra Dayal Singh and Justice Donadi Ramesh held that “in absence of any other objection found in the books of accounts of the assessee as may...
Share Application Money Or Repayment Doesn't Attract Penalty Section 269SS And 269T: Calcutta High Court
The Calcutta High Court has held that if the share application money is neither a loan nor a deposit, then neither Section 269SS nor 269T of the Income Tax Act, 1961 shall apply. Consequently, no penalty, either under Section 271D or under Section 271E of the Income Tax Act, 1961, could be imposed.The bench of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj has observed that in cases of loans, it is ordinarily the duty of the debtor to seek the creditor and to repay the money...