GST Officers Should Not Pressurise Taxpayers To Pay Tax Not Following Procedure: Delhi High Court

The Delhi High Court has held that it is impermissible for the officers to pressurize the taxpayers to pay tax without following the requisite procedure, notwithstanding that it may be apparent that such tax is due and payable.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the assessee's statement cannot be read as acknowledgement of any liability to pay ITC....

Delhi High Court Allows Exemptions Claim Of Amazon On Echo Show 5, Echo Dot 4th Generation Under Customs Notification

The Delhi High Court has held that Echo Show 5, Echo Dot 4th Generation, and Echo Dot 4th Generation with Clock are eligible to claim exemptions in accordance with SI. No. 20 of the Notification dated June 30, 2017.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that merely because these devices could, if so chosen by the user, also be used as mere speakers, the...

Assessee Coerced To Deposit GST During Search: Delhi High Court Orders Refund

The Delhi High Court has directed the department to refund the amount deposited by the petitioner by making a payment of Rs. 23,70,000 in cash along with interest at a rate of 6% per annum.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that payments aggregating to Rs. 28,20,000 were made at 11:49 PM and at 12:38 PM during the search operations. The payments made by...

ITC Reversal During Late Night Search Involuntarily: Delhi High Court Directs Dept. To Reverse ITC In Assessee's ECL

The Delhi High Court has directed the department to reverse the input tax credit (ITC) amounting to Rs. 22,14,226 in the petitioner's electronic credit ledger (ECL).“We do not find it difficult to accept that the petitioner may have found the circumstances intimidating and had, accordingly, agreed to reverse the ITC. We are unable to accept that the reversal of ITC was made voluntarily...

SCN Lacked Time Or Date For Personal Hearing: Delhi High Court Directs Restoration Of GST Registration

The Delhi High Court has directed the restoration of GST registration as no opportunity for a hearing was accorded to the petitioner or assessee.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the show cause notice (SCN) does not mention any time or date for a personal hearing. Thus, the petitioner was not afforded a hearing to contest the SCN. The order...

Addition For Deemed Dividend Made Can Be Done In Hands Of Shareholder Only: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that addition for a deemed dividend made under Section 2(22)(e) of the Income Act can be done in the hands of the shareholder only.The bench of Yogesh Kumar (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the assessee is not a registered shareholder in the loan-given company, so the addition to...

ITAT Deletes Penalty For Default In Not Deducting TDS On Foreign Remittances

The Jaipur Bench of Income Tax Appellate Tribunal (ITAT) has deleted the penalty levied for default in not deducting TDS on foreign remittances.The bench of Sandeep Gosain (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) has observed that the assessee has deliberately not avoided TDS and there is no contumacious conduct on the part of the assessee.The ITO has passed an...

No Incriminating Material Was Found During Search: Delhi High Court Quashes S. 153A Proceedings

The Delhi High Court has held that the assessment for the assessment year 2011–12 was finalized on January 20, 2012, and no notice under Section 143(2) of the Income Tax Act was issued. As such, no assessment was pending on the date of the search action, i.e., October 29, 2013.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that during the search action against...

Tax Cases Weekly Round-Up: 3 To 9 December, 2023

Supreme CourtIncome Tax Act | To Compute Deduction Under S. 80-IA, Market Value Of Electricity Is The Rate At Which State Board Supplies Power : Supreme CourtCase Title: Commissioner Of Income Tax v M/s Jindal Steel & Power LimitedCitation: 2023 LiveLaw (SC) 1048The Supreme Court has held that for the purpose of computing deduction under Section 80 IA of the Income Tax Act, 1961, the rate...

West Bengal Passes Bill To Impose 28% GST On Online Gaming, Horse Racing, Casinos

The West Bengal government has passed a bill to impose 28% GST on online gaming, horse racing and casinos.The state government has notified the West Bengal Goods and Services Tax (Second Amendment) Bill, 2023.A measure to increase the GST from the current 18% to 28% on internet gaming, horse racing, and casinos was approved by the Bengal legislature on Thursday. As of October 1, 2023,...

Delhi High Court Quashes Order In Revision In Respect Of Rs.1,000 Cr. LTCG Exemption Passed Against Buyer Of Non-Existing Seller

The Delhi High Court has held that a revisionary order under Section 263 of the Income Tax Act could not be passed against a non-existing seller entity by invoking Section 163 against the buyer.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the expression “agent” suggests that there is a principal in existence on whose behalf the agent acts. However,...

DGFT Amends Export Policy Of Onion From “Free” To “Prohibited” Till March 31, 2023

The Directorate General Of Foreign Trade (DGFT) has amended the export policy for onions. The HS Code 0703 10 19, which was previously categorised as 'Free,' has been revised to 'Prohibited' until March 31, 2024.The Notification will come into effect from December 08, 2023. The provisions as under Para 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not...