Tax
Payments By Supervisors To Individual Labourers, Each Not Exceeding Rs. 20,000, Can't Be Disallowed: Calcutta High Court
The Calcutta High Court has held that payments by supervisors to individual labourers, each not exceeding Rs. 20,000, cannot be disallowed under Section 40A(3) of the Income Tax Act, 1961.The bench of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj has observed that the supervisors acted as agents of the assessee to disburse the amount to individual labourers, which in no...
CBDT Clarification On Media Reports Claiming Special Drive To Reopen Cases With Reference To HRA Claims
The Central Board of Direct Taxes (CBDT) has issued the clarification on media reports claiming special drive to reopen cases with reference to House Rent Allowance (HRA) claims.“Certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the Department as part of its routine exercise of verification of...
UPVAT | Intention To Evade Tax Essential For Imposition Of Penalty U/S 54(1)(2): Allahabad High Court
The Allahabad High Court has held that intention to evade tax is essential condition for imposing penalty under Section 54(1)(2) of the Uttar Pradesh Value Added Tax Act, 2008.Section 54(1) of the Uttar Pradesh Value Added Tax Act, 2008 provides for circumstances under which penalties can be imposed on an assesee. It is provided that where an assessing authority is satisfied that an assesee...
AO To Record Dissatisfaction With Correctness Of Claim Of Assessee In Respect Of Expenditure: Bombay High Court
The Bombay High Court has held that the Assessing Officer should record his dissatisfaction with the correctness of the claim of the assessee in respect of the expenditure, and to arrive at such dissatisfaction, he should give cogent reasons. The Bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that though the AO has stated that the assessee's explanation is not...
Cross-Examination Necessary For Arriving At Fair Trial, It Is Not Whims Of Adjudicating Authority To Allow Or Reject Request: CESTAT
The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cross-examination is necessary for arriving at a fair trial.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that, as per Section 9D of the Central Excise Act, it is not the whims of the adjudicating authority to allow or reject the request...
Freight/Insurance Amount Is Not Includible In Assessable Value Of Goods For Charging Excise Duty: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the freight or insurance amount is not included in the assessable value of the goods for charging excise duty.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) found no valid reason for disallowing the deduction for the freight and insurance paid inasmuch as the sales are...
AO Is Not Clothed With Powers To Ascertain ALP Of Any International Transaction: Delhi High Court
The Delhi High Court has held that AO is not clothed with the powers to ascertain the Arm's Length Price (ALP) of any international transaction.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the AO is not clothed with the powers to ascertain the ALP of any international transaction that is selected based on the transfer pricing risk...
Bombay High Court Quashes Reassessment Order Against Housewife When Property Was Purchased By Her Husband
The Bombay High Court has quashed a reassessment order against a housewife when the alleged investment was made by her husband.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed, “We also have to notice that, surprisingly, the Principal Chief Commissioner of Income Tax has also accorded sanction for the issuance of this order instead of directing the AO to drop...
Direct Tax Cases Quarterly Digest 2024
Supreme Court Taxpayer Entitled To Hearing On Merits If Appeals Were Dismissed By HC For Delay In Filing Paper-Book: Supreme Court Case Title: Herbicides India Limited vs ACIT 2024 LiveLaw (SC) 44 While setting aside the Rajasthan High Court orders, the Supreme Court restored the assessee's appeals by condoning the delay in filing the paper-book before High...
CBIC Waives Off Interest For Late GSTR-3B Filers Due to Technical Glitches On The Portal
The Central Board of Indirect Taxes and Customs (CBIC) has waived off interest for late GSTR-3B filers due to technical glitches on the portal.The Board has notified that the rate of interest per annum to be 'Nil', for the class of registered persons who were required to furnish the return in FORM GSTR-3B, but failed to furnish the return for the June, 2018, October 2018, July 2017 and...
Decision On A Question Of Law That Is Later Overturned Or Modified By The Superior Court In Another Case Does Not Form A Ground For Review: Jharkhand High Court
The Jharkhand High Court has recently clarified the criteria for reviewing judgments in tax appeal cases, particularly regarding decisions based on legal questions. According to the explanation to Rule 1 of Order 47 of the Code of Civil Procedure, the court stated that if a decision on a legal question forming the basis of a court judgment is later reversed or modified by a higher court in...
CESTAT Cases Weekly Round-Up: 31 March To 6 April 2024
Emotionally Intelligent Companion Device For Children Is Classifiable As 'Automatic Data Processing Machines' And Not 'Plastic Toys': CESTAT Case Title: R N Chidakashi Technologies Pvt. Ltd. Versus Commissioner of Customs (Import) The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that MIKO II, an “emotionally intelligent...