SUPREME COURT Motor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme Court Case name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand. Case no.: SLP (C) No. 30491 of 2018 The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim case, observed that monthly income...
SUPREME COURT
Case name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand.
Case no.: SLP (C) No. 30491 of 2018
The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim case, observed that monthly income could be fixed after taking into account the tax returns. However, the details of tax payment must be properly brought into evidence to enable the Tribunal/Court to calculate the income.
The Bench of Justices C.T Ravikumar and Sanjay Karol were deciding a batch of appeals preferred both by the insurer and the claimant. While the claimant prayed for the enhancement of compensation, the insurer pleaded for the reduction.
HIGH COURTS
Delhi HC
Case title: MS L. R. Sharma And Co v. Union Of India & Ors.
Case no.: W.P.(C) 13689/2024
The Delhi High Court has held that the usage of expression "where it is possible to do so" doesn't make the timeline stipulated under Section 73(4B) of the Finance Act, 1994 to determine service tax dues 'suggestive' in nature.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed, “...Section 73(4B) was framed and introduced in the Finance Act to ensure effective administration of taxation. While there cannot be denying that the taxation forms the backbone of a nation's economy, any inordinate delay by the Revenue itself in prosecuting its own cases cannot be construed in their favour by stretching the period of limitation to nine years especially when the provision requires the proceedings to be concluded within six months / one year.”
Case title: Chegg India Pvt Ltd v. UoI & Ors.
Case no.: W.P.(C) 1062/2024
The Delhi High Court has held that delay in filing certified copy of impugned order in an appeal preferred by Assessee under Section 107 of the Central Goods and Services Tax Act, 2017 would not render the appeal time-barred, if it was filed online within prescribed time. A division bench of Justices Prathiba M. Singh and Amit Sharma reasoned,
“the condition to physically file the certified copy of the impugned decision/order is not mandatory…where the certified copy was submitted with a delay, may be condoned if the online filing was completed within the prescribed limitation period. Ultimately, what is to be borne in mind is the fact that online filing was within limitation…In most Courts and Tribunals, online filing and electronic filing is now prescribed mode and the Courts are moving towards technologically advance systems. It would be retrograde to opine that online filing, which was complete in all respects, including electronic copy of the order, is not valid filing.”
Case title: Shri Balaji Enterprises v. Additional Director General New Delhi & Ors.
Case no.: W.P.(C) 11207/2023
The Delhi High Court has cautioned the Customs Authorities against keeping show-cause notices pending in call-book only to take them up after several years, leaving the assessee in lurch.
A division bench of Justices Prathiba M. Singh and Amit Sharma observed that in the absence of any “glaring impossibility”, such an approach of the authorities would not be permissible. In the case at hand, Petitioner challenged the delay of almost eight years in adjudication of the show-cause notice issued to it in 2015.
Case title: Sumit Bharana v. UoI
Case no.: W.P.(C) 16701/2024
The Delhi High Court has held that co-accused are entitled to apply separately for compounding of offences committed by a Company or a Hindu Undivided Family under the Income Tax Act, 1961.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela ruled that the co-accused need not await filing of application for compounding by the company or the HUF.
Case title: S A N Garments Manufacturing Private Limited v. Pr Commissioner Of Income Tax 7 And Anr
Case no.: W.P.(C) 932/2024
The Delhi High Court has reiterated that a designated authority under the Direct Tax Vivad Se Vishwas Act, 2020 cannot reopen an assessment after a final certificate is issued under Section 5 of the Act and all disputes with regard to the 'tax arrear' stand concluded.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela observed, “once a declarant is issued a certificate (Form No.5) in terms of Section 5 of the DTVSV Act, and the declarant deposits the determined amount, the Designated Authority is proscribed from initiating any action or proceedings in respect of 'tax arrear'. The dispute stands settled.”
Case title: M/S G.S Industries v. Commissioner Of Central Tax And Gst, Delhi (West)
Case no.: W.P.(C) 13149/2024
The Delhi High Court has made it clear that a Commissioner under the Central Goods and Services Tax Act 2017 cannot, in purported exercise of its powers under Section 107(2), sit in appeal over an order passed by the Appellate Authority.
A division bench of Justices Yashwant Varma and Dharmesh Sharma ruled, “The Commissioner, while seeking to review an order passed under the Act and in purported exercise of powers vested by Section 107(2), cannot possibly sit over and above an order passed by the appellate authority.”
Case title: The Pr. Commissioner Of Income Tax - Central -1 v. Capital Power Systems Ltd.
Case no.: ITA 501/2024
The Delhi High Court has held that Section 150 of the Income Tax Act, 1961 can be invoked for reassessment only to give effect to a 'conclusive finding' by an appellate authority regarding escapement of income by an assessee.
A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed that invocation of the provision requires a “strict and cautious application” of the terms 'findings' and 'direction' to prevent the reopening of assessments based on findings or directions that are only incidental, tangential, or beyond statutory authority.
Karnataka HC
Case Title: M/s Vigneshwara Transport Company v. Additional Commissioner of Central Tax Bengaluru North-West Commissionerate
Case Number: WRIT PETITION NO.18305 OF 2023 (T-RES)
The Karnataka High Court held that when investigation is substantially completed by improper officer, show cause notice issued by proper officer u/s 74 of CGST Act is liable to be set aside.
The Bench of Justice M.I. Arun observed that “…substantial part of the investigation including search and seizure of the materials has been done by respondent no.2 who is not the proper Officer and under the circumstances, the said investigation, inspection, search and seizure in respect of the assessee herein has to be considered ab initio void…”
Kerala HC
Case Title: The Kerala State -Ex-Services League State Committee, Thiruvanthapuram v. Commissioner of Central Excise Customs and Service Tax, Trivandrum
Case Number: C.E. APPEAL. NO. 16 OF 2018
The Kerala High Court stated that services by charitable society who look after socio-economic and welfare matters of ex-serviceman and their families is liable to service tax.
The Division Bench of Justices A.K. Jayasankaran Nambiar and Easwaran S. observed that “for an association like the assessee, the embarking on a transaction that is designed to earn income for its members, would have to be seen as a commercial venture and the assessee who embarks on such a venture, a 'commercial concern'.”