Small Tax Effect: Monetary Limit To Prefer An Appeal Before The Supreme Court Is Rs. 2 crores: Supreme Court

Case Title: CIT Versus Swapnil Finance Pvt. Ltd.

The Supreme Court disposed of the appeal on the ground of low tax effects. The division bench of Justice M.R. Shah and Justice Sudhanshu Dhulia observed that the monetary limit to file an appeal before the Supreme Court is Rs. 2 crores.

Bombay High Court

Bombay High Court Allows Deduction On Issuance Of Completion Certificate

Case Title: The Principal Commissioner of Income Tax Versus M/s. Vardhan Builders

The Bombay High Court has allowed the income tax deduction under Section 80-IB on the grounds that a completion certificate was issued by the competent authority.

The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki S.A. Menezes, while upholding the order of the Income Tax Appellate Tribunal (ITAT), observed that there was no allegation by the survey team during the earlier survey conducted in the year 2006 that the assessee was not raising the construction as per the approved plan. It was also held that if there was any modification to a completed residential unit for which a completion certificate had been issued by the competent authority, the assessee could not be held responsible.

Failure To Furnish Certified Octroi Exemption Form; Importer Not Ineligible For Refund Of Octroi Under Section 194(2) Of MMC Act: Bombay High Court

Case Title: Hyprecision Hydraulik versus State of Maharashtra & Ors.

The Bombay High Court has ruled that failure to furnish a declaration duly certified by the Octroi Inspector, would not render the importer ineligible for refund of Octroi Duty under Section 194(2) of the Mumbai Municipal Corporation Act, 1888 (MMC Act).

The Bench of Acting Chief Justice S. V. Gangapurwala and Justice Arif S. Doctor held that production of a duly certified octroi exemption form is not a substantive requirement but merely a procedural requirement to enable an eligible party to claim refund of Octroi under Section 194(2), on imports made in pursuance of a specified contract executed with the Government.

Delhi High Court

Tax deposited During Search Not Voluntary: Delhi High Court Directs GST Dept. To Return Rs.1.80 Crores With Interest

Case Title: M/s. Vallabh Textiles Versus Senior Intelligence Officer

The Delhi High Court has directed the GST department to return the amount of Rs. 1.80 crores along with 6% interest as the recovery of tax made during the search was not voluntary.

The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that no recovery of tax should be made during search, inspection, or investigation unless it is voluntary.

Delhi High Court Grants Interim Protection Against Retrospective Denial Of Concessional Rate Of Customs Duty To Solar Units

Case Title: ReNew Hans Urja Pvt. Ltd. vs. Central Board of Indirect Taxes and Customs

The Delhi High Court has granted interim protection against the retrospective denial of the vested right of the benefit of concessional rate of duty under project import regulations granted to solar power developers.

The Division Bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju have directed the customs authorities to refrain from taking any precipitative steps at the time of import of goods pursuant to the registration of contracts under the Project Import Regulations, 1986.

Age At The Time Of Commission Of Offence Has To Be Taken And Not When The Proceedings Initiated: Delhi High Court

Case Title: Rajinder Kumar Versus State

The Delhi High Court upheld the prosecution for an undisclosed foreign bank account, observing that the age at the time of the offense must be taken into account, not when the proceedings were initiated.

The single judge bench of Justice Suresh Kumar Kait has relied on the decision of the Delhi High Court in the case of Pradip Burman vs. Income Tax Office, in which it was held that Circular/Instruction No. 5051 dated 07.02.1991 issued by the Central Board of Direct Taxes (CBDT) does not bar the initiation of prosecution for those who have attained the age of 70 years.

Bombay High Court

Technical Consideration Cannot Come In The Way Of Substantial Justice: Bombay High Condones ITR-filing Delay

Case Title: M/s Bhatewara Associates Versus Union Of India

The Bombay High Court has condoned a year-long delay in filing the Income Tax Return (ITR) over "genuine hardships."

The division bench of Justice Dhiraj Singh Thakur and Justice Abhay Ahuja has observed that technical considerations cannot come in the way of substantial justice. It is neither an allegation of malafide nor an allegation that the delay has been deliberate.

Karnataka High Court

Interest on Tax Refund Payable On Expiry Of 3 Months From The Date Of Refund Application: Karnataka High Court

Case Title: Al Tisource Business Solutions Pvt. Ltd. Versus Deputy Commissioner of Central Tax

The Karnataka High Court has held that the interest on a delayed tax refund is payable on the expiration of 3 months from the date of filing the refund application.

The single bench of Justice R. Krishna Kumar has observed that merely because there were certain deficiencies or lacunae in the refund claim by the petitioner, the circumstance cannot be relied upon or made the basis by the respondent or department to contend that it was entitled to pass the refund sanction order beyond the prescribed statutory period of three months.

Karnataka High Court Quashes Provisional Attachment Of Fixed Deposits Worth Rs. 3700 Crores Against Xiaomi

Case Title: Xiaomi Technology India Pvt. Ltd.

The Karnataka High Court has quashed the provisional attachment of fixed deposits worth Rs. 3700 crores against Xiaomi. The single bench of Justice S.R. Krishna Kumar has quashed the provisional attachment of the fixed deposit subjected to various conditions.

ITAT

AO Can't Pass Rectification Order to Disallow Set-off Of Loss By Invoking Section 79 of Income Tax Act, On Change In Assessee's Shareholding: ITAT

Case Title: M/s. Birla Edutech Limited versus ITO

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Section 154 of the Income Tax Act, 1961 can only be exercised by the Assessing Officer for rectification of mistake which is apparent on the face of record.

The Bench of Pramod Kumar (Vice President) and Aby T. Varkey (Judicial Member) held that the issue whether Section 79 of the Income Tax Act was applicable in the case of the assessee where there was a change in its shareholding, was a debatable issue which involved interpretation of various sections and provisions of law, including the Income Tax Act, 1961 as well as the Companies Act, 1956.

Land Received In Lieu Of Business Loan Foregone, Is A Business Asset Not A Capital Asset: ITAT

Case Title: M/s. TVS Finance & Services Ltd. versus ACIT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the land received by the assessee in the normal course of its finance business, in lieu of a business loan foregone, would assume the character of a business asset and not a capital asset, irrespective of its treatment in the assessee's books of accounts.

Amount Equivalent To Capital Gains Utilised For Acquisition Of New House: ITAT Allows Capital Gain Exemption

Case Title: Anik Chatterjee Versus ITO

The Delhi Bench of the Income Tax Appellate Tribunal has allowed the capital gain exemption under section 54 of the Income Tax Act on the grounds that the amount equivalent to the capital gains has been used for the acquisition of a new house.

The two-member bench of Yogesh Kumar US (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has observed that the agreement for sale was signed on August 8, 2014, and the payments had been completed by October 8, 2014.

CESTAT

Coal Transportation From Pitheads Of Mines To Railway Sidings Not "Mining Of Mineral": CESTAT

Case Title: Chhaya Mahalley Versus Commissioner, Customs, Central Excise & CGST

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the coal transported from the pitheads of the mines to the railway sidings would be classified under the head "transport of goods by road" service, and the activity does not involve any taxable service in relation to "mining of minerals."

The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Accountant Member) has observed that the Commissioner of Appeals was, therefore, not justified in holding that the appellant had undertaken the activity of mining services with effect from June 1, 2007.

AAR

Transfer Of Monetary Proceeds By IVL India To ILV Sweden Attracts IGST Under RCM: AAR

Applicant's Name: M/s. IVL India Environmental R&D Pvt Ltd.

The Maharashtra Authority of Advance Ruling (AAR) has ruled that the transfer of monetary proceeds by IVL India to the applicant IVL Sweden will be liable for payment of integrated goods and services tax under the reverse charge mechanism.

The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that other than the service provided by the applicant to the Municipal Corporation of Greater Mumbai (MCGM), there is a very definite service being provided by IVL Sweden, located outside India, on account of its experience, credentials, and expertise, to the applicant, located in India, that enables the applicant to perform under the contract. There is no doubt that the services are being supplied in the taxable territory, i.e., India.

18% GST Payable On Glaze Gels: AAR

Applicant's Name: Healthy Life Foodtech Pvt. Ltd.

The Maharashtra Authority of Advance Ruling (AAR) has held that 18% GST is payable on glaze gels.

The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that while sugar-baked confectionery is directly sold to ultimate end users for consumption, glaze gel is not consumed by end consumers, rather its product is used by cake manufacturers as a filling between sponge layers of cakes.

The applicant manufactures glaze gels and markets them to bakeries all across India. The glaze gel is processed in a manner similar to boiled sugar confectionery.

Supply of Tata Garbage Tipper Vehicle To Municipalities Attracts 28% GST: AAR

Applicant's Name: M/s. Tata Motors Limited

The Maharashtra Authority of Advance Ruling (AAR) has held that the supply of Tata garbage tipper vehicles to Municipalities shall attract 28% GST.

The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that garbage tipper vehicles can be used for the transportation of goods. The starting words of Entry 8704 are "Motor Vehicles for the Transport of Goods." Thus, the rate of tax applicable shall be 28%; as only refrigerated vehicles are taxable at 18%; and all trucks covered under heading 8704 are taxable at 28%.

GST ITC Not Available On ​​Goods And Services Used For Construction Of A Pipeline Laid Outside The Factory Premises: AAR

Applicant's Name: M/s. Mumbai Aviation Fuel Farm Facility Pvt Ltd.

The Maharashtra Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) is not available on goods and services used for the construction of a pipeline laid outside the factory premises.

The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that, as per the explanation to Section 17 of the GST Act, "plant and machinery" does not include a pipeline laid outside the factory premises.

Raula Gundi Is A Chewing Tobacco Without Lime Tube, Attracts 28% GST: AAR

Applicant's Name: Das & Sons

The Orissa Authority for Advance Ruling (AAR) has held that "Raula Gundi," which is "chewing tobacco without lime tubes," attracts 28% GST with a 160% Compensation Cess.

The two members of the bench, G.K. Pati and P.K. Mohanty have observed that "Raula Gundi," i.e., chewable gundi, is "chewing tobacco," the principal or predominant ingredient of which is tobacco.

Affiliation Provided By Kota University To Its Constituent Colleges For Imparting Education Is A Supply, Attracts GST: Rajasthan AAR

Applicant's Name: M/s University of Kota

The Rajasthan Authority of Advance Ruling (AAR) has observed that affiliation provided by Kota University to its constituent colleges for imparting education is a supply and taxable under GST.

The two-member bench of Umesh Kumar Garg and M. S. Kavia has observed that the affiliation services provided by Kota University enable the institution to conduct the course or programme and do not relate to the admission of students to the course or programme or the conduct of examinations for admission to the institution. The exempted examination services are those related to admission to the institution and not to the examination based on which degree, title, etc. are conferred to the students, as claimed by the applicant. Therefore, the "affiliation" fees collected by Kota University are not exempt from GST.