Tax
Tax Weekly Round-Up: March 03 - March 09, 2025
SUPREME COURTSupreme Court Upholds Allahabad HC Decision That Chargers Sold With Cell Phones Cannot Be Taxed Separately Under UP VAT Act 2008Case title: COMMISSIONER, COMMERCIAL TAXCase no.: U. P. LUCKNOW vs. M/S SAMSUNG (INDIA) ELECTRONICS PVT. LTD.| Diary No. - 20066/2021The Supreme Court recently upheld the decision of the Allahabad High Court which observed that the charger sold with a...
Goods Not Accompanied By E-Way Bill, Without Matching Description Shows Intention To Evade Tax: Allahabad High Court
The Allahabad High Court has held that the intention to evade tax is established by the fact that the goods in transit were not accompanied by e-way bill and the goods taxable at 18% were taxed only at 5%. The Court held that after 2018, it was mandatory for the assesee to download e-way bill with goods in transit. “It is mandatory on the part of the seller to download the e-way...
Transfer Pricing | Existence Of International Transaction Must Be Determined Before Benchmarking Analysis Is Commenced: Delhi HC
The Delhi High Court has held that before the Income Tax Department commences transfer pricing benchmarking analysis of an assessee's international transactions, the very existence of such 'international transaction' must be determined.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar, while dealing with the case of an Indian entity producing liquor for brands like...
Income Tax Department Cannot Attach Properties Indefinitely Without Pursuing Steps To Resolve Matter: Delhi High Court
The Delhi High Court has held that the Income Tax Department cannot, suspecting escapement of tax on income by an assessee, indefinitely attach its properties without taking further steps to resolve the matter.Single judge Justice Sachin Datta observed that Section 222 of the Income Tax Act, 1961 which empowers the Tax Recovery Officer to proceed with “attachment and sale of assessee's...
S.67 Of CGST Act & S.110 Of Customs Act Are Pari Materia; GST Department Must Give Notice To Assessee Before Extending Seizure Period: Delhi HC
The Delhi High Court has held that an assessee must be issued notice within six months of seizure of its goods under Section 67 of the Central Goods and Services Tax Act 2017, failing which the goods must be returned by the Department.A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar further held that the period of seizure cannot be extended under Section 67)7) for...
'Entire Case Based On Records Already Considered During Scrutiny': Mumbai ITAT Quashes Reopening Of Assessment Against Shah Rukh Khan For AY 2012-13
The Mumbai ITAT has quashed the reopening of assessment proceedings against the Assessee/ Appellant i.e., Shah Rukh Khan for AY 2012-13.The tribunal held that the reasons recorded while initiating the re-assessment, were completely silent as regards the allegation that income chargeable to tax has escaped assessment due to failure on the part of the assessee to disclose fully and truly...
Legal & Consultancy Services Under RCM Is Liable To Service Tax: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that legal & consultancy services under RCM is liable to service tax. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that “in absence of any reply or any supporting documents, Legal fees expense incurred by the assessee are...
'Highly Undesirable Practice, Wastes Judicial Time': Delhi High Court Laments Frequent Non-Appearance Of Govt Counsel In Customs Matters
The Delhi High Court recently expressed its displeasure at the frequent non-appearance of government counsel in customs related matters.A division bench comprising Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “It is noticed that in a large number of customs matters, the Counsels are either not appearing or appear without proper instructions. In cases of nonappearance, the...
Assessee Entitled To Interest On Refund Under Direct Tax 'Vivad Se Vishwas' Scheme: Gujarat High Court
The Gujarat High Court stated that the assessee is entitled to the interest on refund under Direct Tax Vivad Se Vishwas Scheme. “it is true that the assessee is not entitled to interest under Section 244A of the Income Tax Act, 1961, however, when the assessee has opted for direct tax for Vivad se Visvas Scheme 2020 and filed the application which was approved by...
'Extra Duty Deposit' Different From Customs Duty, Limitation For Seeking Refund U/S 27 Of Customs Act Is Inapplicable: Delhi High Court
The Delhi High Court has held that an Extra Duty Deposit (EDD) does not constitute a payment in the nature of customs duty under the scope of Section 27 of the Customs Act, 1962 and thus, the period of limitation for seeking a refund of customs duty under the provision would not apply qua EDD.Section 27 deals with a person/entity's claim for a refund of Customs duty in certain...
Survey Report On Existence Of 'Permanent Establishment' In Tax Year Not Relevant For Previous/Future AYs: Delhi HC Grants Relief To Swiss Co
The Delhi High Court has held that the existence of a foreign entity's Permanent Establishment (PE) in India is required to be determined in law for each year separately on the basis of the scope, extent, nature and duration of activities in each year.A division bench of Justices Yashwant Varma and Ravinder Dudeja made the observation while dealing with a Swiss company's case, which was...
CESTAT Can't Reject Appeal Merely Because Pre-Deposit Was Made In Wrong Account, Especially When Rules Were Unclear: Delhi High Court
The Delhi High Court has held that merely because a pre-deposit prescribed under Section 35F of the Central Excise Act, 1944, for preferring an appeal is made in the wrong account, that too when the integrated portal might not have been fully functional, cannot result in rejection of appeal on the ground of defects.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta...