Service Tax Not Prima Facie Leviable On Amounts Claimed As Performance Linked Incentives/Commission: Delhi High Court

The Delhi High Court has prima facie observed that service tax is not leviable on amounts claimed by an Assessee as commission or performance linked benefit. A division bench of Justices Yashwant Varma and Dharmesh Sharma cited the decision of a Larger Bench of the CESTAT in Kafila Hospitality & Travels Pvt. Ltd. vs. Commr. Of S.T., Delhi (2023). In that case, the Tribunal...

Mobile Towers Are Not Immovable Property, They Are Eligible For Input Tax Credit: Delhi High Court Allows Airtel's Plea

The Delhi High Court has held that mobile/ telecommunication towers are movable properties, eligible for availing input tax credit under the Central Goods and Services Tax Act, 2017. A division bench of Justices Yashwant Varma and Girish Kathpalia further held that telecom towers fall outside the scope of Section 17(5) of the CGST Act which sets out various goods and services...

Rule 8D Of IT Rules Can Be Invoked Only If Assessee's Computation Of Expenses Attributable To Earning Exempt Income Is Found Inadequate: Delhi HC

The Delhi High Court has held that recourse to Rule 8D of the Income Tax Rules, 1962 for computing disallowance under Section 14A of the Income Tax Act is available only if the Assessee's computation of expenses attributable to earning exempt income, is found to be inadequate. Rule 8D provides a mechanism to determine the expenditure in relation to exempt income. In the case at...

Delhi HC Deprecates Practice Of GST Authorities Issuing 'Template Orders', Says Rejection Of Reply To SCN Must Be On Merits

The Delhi High Court recently granted relief to a logistics company aggrieved by the decision of Assistant Commissioner, GST, rejecting its reply to a show cause notice by way of a 'template' order. A division bench of Justices Prathiba M. Singh and Amit Sharma observed that a SCN, which seeks to impose further liabilities (including penalties) upon assesses, has to be decided...

Regulatory Measures Under GST Laws Necessary To Prevent Tax Evasion, Not Violative Of Fundamental Right To Trade: Calcutta High Court

The Calcutta High Court has held that regulatory measures under the Goods and Services Tax Act cannot be labeled as violative of an assessee's right to trade/ business under Article 19(1)(g) of the Constitution. Justice Rajarshi Bharadwaj reasoned that such regulatory measures are “necessary to ensure compliance and prevent tax evasion”. The observation comes in a petition filed...

Coconut Oil Classifiable As 'Edible Oil' For Central Excise Tariff; If Sold As Cosmetic, Taxable As 'Hair Oil' : Supreme Court

The Supreme Court has held that pure coconut oil, packaged and sold in small quantities ranging from 5 ml to 2 litres, would be classifiable as 'Edible oil' for the purposes of the Central Excise Tariff Act, 1985. It will be classifiable as "hair oil" if it is packaged and sold as a cosmetic."we are of the opinion that pure coconut oil sold in small quantities as 'edible oil' would...

Delhi HC Directs Customs To Release Azerbaijan National's 'Personal' Gold Jewellery, Restrains Her From Selling It In India

Reinforcing its stand that the 'personal' gold jewellery of a foreign national coming to India is not subject to duty, the Delhi High Court ordered the Customs department to release an Azerbaijan national's belongings. A division bench of Justices Prathiba M. Singh and Amit Sharma however restrained the foreign national from selling the jewels in India. “Petitioner shall not...

S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC

The Delhi High Court has made it clear that a Final Assessment order passed by the Income Tax Authorities under Section 143 of the Income Tax Act, 1961 is not sustainable, if it is passed in ignorance of pending objections before the Dispute Resolution Panel. A division bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela further clarified that lack of...

SC's Judgement In Abhisar Buildwell Case Doesn't Permit Reopening Of Assessments Beyond Limitation Period U/S 149(1) Of IT Act: Delhi HC

The Delhi High Court has reiterated that the Supreme Court's judgment in Abhisar Buildwell does not permit reopening of assessments under Section 147/148 of the Income Tax Act, 1961 beyond the period stipulated under Section 149(1). Section 149 lays down the time limit for issuing a notice to a taxpayer under various provisions of the Income Tax Act. Normally, no notice of reopening...

Tax Weekly Round-Up: December 09 - December 15, 2024

HIGH COURTS Allahabad HC [GST] Assesee Cannot File For Requisite Documents Once Plea Is Accepted And Notice Is Issued: Allahabad High Court Case Title: M/s Laxmi Telecom v. State of U.P. and Anr. Case no.: WRIT TAX No. - 2160 of 2 The Allahabad High Court has held that an assessee cannot file for the supply of requisite documents after the adjudicating body has accepted...

Delhi High Court Disallows Income Tax Dept From Adjusting Stayed Demand Towards Previous Refund Due To Nokia

Granting relief to telecom equipment company Nokia, the Delhi High Court disallowed the Income Tax Department from adjusting the outstanding demand raised against the company, towards a previous refund due to it. A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma pointed towards stay of recovery proceedings and said, “there is no allegation that the petitioner...

Form 26B Under Income Tax Rules Not Required For Refund Once Form 5 Under 'Vivad Se Vishwas' Act Is Issued: Allahabad High Court

The Allahabad High Court has held that an assesse claiming refund of excess TDS (tax deduction at source) is not required to fill Form 26B under the Income Tax Rules once Form 5 of the Vivad Se Vishwas Act, 2020 has been issued to them. “A perusal of the Rules would reveal that Form 26B is required to filled up if the assessee claims refund paid under Chapter XXVII-B of the Act,...