Tax
Investment Made From Share Premium Without Any Noticeable Business Activity, Legitimacy Of Income Not Established: Calcutta High Court
The Calcutta High Court has held that the source of investments by those two companies is also the share capital and share premium raised by them while issuing their own shares to other closely held companies, and those companies had no noticeable business activities.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya, while upholding the ITAT's order, noted that...
Labelling and Re-Labelling of Containers Qualifies as 'Manufacture' for CENVAT Credit Under Excise Act: Supreme Court
The Supreme Court has held that labelling or re-labelling of containers amounts to 'manufacture' under the Central Excise Act for availing cenvat creditThe bench of Justices A. S. Oka and Ujjal Bhuyan was pronouncing its judgment on an appeal by the revenue under Section 35L(1)(b) of the Central Excise Act, 1944 against a 2015 order passed by the CESTAT, Mumbai.By the impugned order, CESTAT...
Monetary Limit Of Rs. 1 Crore For Appeals To High Court; Delhi High Court Dismisses Dept's Appeal
The Delhi High Court has dismissed the challenging redemption fine of Rs. 40 lakhs, citing instructions issued by the Central Board of Indirect Taxes and Customs (CBIC), which set the monetary limit of Rs. 1 crore for appeals to the high court.The Bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that the issue involved is with regard to the redemption fine of Rs....
Unexplained Expenditure Addition Merely Based On CBIC Instruction Not Sustainable: Delhi High Court
The Delhi High Court has deleted the addition for unexplained expenditure, which was based on the instruction issued by the Central Board of Indirect Taxes and Customs (CBIC).“Merely proceeding on the basis that CBIC is an apex body and therefore, information provided by it cannot be doubted, without even identifying or meaningfully analyzing such information, is wholly insufficient to...
AO Can't Proceed With Assessment In Absence Of Section 127 Transfer Order: Delhi High Court
The Delhi High Court has held that the Assessing Officer cannot proceed with assessment in the absence of a transfer order under Section 127 of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that once the case of the assessee is centralized, then the transfer of the case of the assessee to another AO would not be permissible without...
Show Cause Notice Not Adjudicated For Nearly 14 Years; Delhi High Court Issues Notice To Dept.
A division bench of the Delhi High Court, comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja, has issued the notice to the department in a petition assailing the jurisdiction to adjudicate the Show Cause Notice, which has not been adjudicated for nearly 14 years.The petitioner/assessee is a manufacturer of Pan Masala containing tobacco commonly known as Gutkha, commercially...
S.144B(6) Income Tax Act | If Assessee “Requests” Then Opportunity Of Personal Hearing Is Mandatory, Not Optional: Allahabad High Court
The Allahabad High Court has held that opportunity of personal hearing is mandatory under Section 144B(6)(vii) and (viii) of the Income Tax Act, 1961 when show cause notice is issued regarding why assessment may not be completed as proposed. The Court held that once the assesee “requests” for an opportunity of personal hearing, it becomes incumbent on the Assessing Authority to grant...
UPVAT | Computation Of Correct ITC Be Examined By Assessing Authority Not Later Than Stage Of Making Regular Assessment Order: Allahabad High Court
The Allahabad High Court has held that computation of correct input tax credit can only be done till the passing of the regular assessment order by the Assessing Authority and not at a later stage. The Court held that reverse input tax credit is neither a 'rate of tax' nor a 'turnover' which can be subjected to reassessment under Section 29 of the Uttar Pradesh Value Added Tax Act,...
Tax Dues Can't Be Collected From Director Of Company Under Liquidation Unless Provided By Some Statute: Allahabad High Court Reiterates
Relying on its earlier decision in A.S. Solanki Vs. State of U.P. and others, the Allahabad High Court has reiterated that tax dues cannot be collected from director of company under liquidation unless it has been provided in any statute.The Allahabad High Court in A.S. Solanki had held that in a case where it was ascertained that the corporate veil had been used for malafide intent,...
Direct Tax Cases Weekly Round-Up: 5 To 11 May 2024
Supreme Court Interest-Free/Concessional Loans To Bank Employees Taxable As Perquisite : Supreme Court Upholds Rule 3(7)(I) Of Income Tax Rules Case Name- All India Bank Officers' Confederation Vs The Regional Manager, Central Bank Of India & Others Citation : 2024 LiveLaw (SC) 352 A Division bench of the Supreme Court comprising of Justice Sanjiv Khanna and...
Indirect Tax Cases Weekly Round-Up: 5 To 11 May 2024
Delhi High Court Delhi High Court Quashes MOOWR Instructions Denying Benefit To Solar Power Generation Units Case Title: Acme Heergarh Powertech Private Limited Versus CBIC The Delhi High Court has held that the statutory scheme underlying the Manufacture and Other Operations in Warehouse Regulations, 2019 (MOOWR) cannot be construed as seeking to exclude solar power...
SBI Not Liable To Deduct TDS On Transactions Related To Assignment Of Loans By NBFC: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the State Bank of India (SBI) is not liable to deduct tax at source (TDS) on transactions related to the assignment of loans by non-banking financial companies (NBFC).The bench of Om Prakash Kant (Accountant Member) and Sandeep Singh Karhail (Judicial Member) has observed that since the NBFC is not acting as an agent of...