ITAT deletes section 69 Additions for deposits duly reflected in Broker Agency’s account
Kavita Samtani Vs DCIT (ITAT Jaipur) In a recent judgment, the Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) quashed additions made by the Assessing Officer (AO) to the declared income of taxpayer Kavita Samtani for the Assessment Year (AY) 2017-18. The ITAT’s order overturns findings upheld by the Commissioner of Income Tax (Appeals) […]
Mandatory PAN Linking for FSSAI License Compliance
Food Safety and Standards Authority of India (FSSAI) has made it mandatory for food business operators (FBOs) to link their Permanent Account Number (PAN) with FSSAI licenses and registrations. This requirement, based on recommendations by the Department for Promotion of Industry and Internal Trade (DPIIT), is effective from October 22, 2024, and applies to new […]
SEBI Proposal to Review UPSI Definition under Insider Trading
Consultation Paper on Proposed review of the definition of UPSI under SEBI (Prohibition of Insider Trading) Regulations, 2015 SEBI conducted a study on material events disclosed to the stock exchanges and events classified as UPSI by listed entities. It was seen that companies were categorizing only the items explicitly mentioned in Regulation 2(1)(n) of PIT […]
GST on Buy One Get One Free Scheme, Secondary Discounts & issuance of Credit Notes
Summary: The Central Board of Indirect Taxes and Customs (CBIC) clarified the GST compliance for schemes like “Buy One Get One Free” (BOGO) and secondary discounts through a circular issued on March 7, 2019. For BOGO offers, where a product is sold at the price of one but involves two products, the GST on both […]
ITAT Quashes Section 272A(1)(C) penalty
Deepak Kumar Samtani Vs ADIT (Inv.) (ITAT Jaipur) In the case of Deepak Kumar Samtani vs. ADIT (Inv.), the Jaipur Income Tax Appellate Tribunal (ITAT) reviewed an appeal against a penalty imposed under Section 272A(1)(C) of the Income Tax Act. The penalty stemmed from alleged non-compliance with multiple summonses issued to Samtani. The first notice, […]
No Section 69 addition for Unsecured Loans Recorded in Husband’s Business Ledger
Kavita Samtani Vs DCIT (ITAT Jaipur) The Income Tax Appellate Tribunal (ITAT) in Jaipur has set aside the assessment order issued by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals) [CIT(A)] for Smt. Kavita Samtani, an assessee involved in a series of assessments related to financial years 2013-14 and 2015-16 […]
ITAT Jaipur Upholds Section 50C Addition for Stamp Duty Value Exceeding Transaction Value by 10%
Kavita Samtani Vs DCIT (ITAT Jaipur) The Income Tax Appellate Tribunal (ITAT) Jaipur Bench recently dismissed an appeal filed by Kavita Samtani, challenging an order by the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal concerned an addition to her income for the 2018-19 assessment year under Section 50C of the Income Tax Act, 1961, […]
Non-issuance of PCC due to pendency of FIR constitutes unreasonable restriction: Delhi HC
Amardeep Singh Bedi Vs Union of India & Anr. (Delhi High Court) Delhi High Court held that non-issuance of Police Clearance Certificate [PCC] merely due to pendency of FIR, without any conviction or finding of guilt, constitutes an unreasonable restriction. Accordingly, court directed to issue PCC. Facts- The Petitioner is an Indian national having a […]
Non-issuance of PCC due to pendency of FIR constitutes unreasonable restriction: Delhi HC
Amardeep Singh Bedi Vs Union of India & Anr. (Delhi High Court) Delhi High Court held that non-issuance of Police Clearance Certificate [PCC] merely due to pendency of FIR, without any conviction or finding of guilt, constitutes an unreasonable restriction. Accordingly, court directed to issue PCC. Facts- The Petitioner is an Indian national having a […]
Failure to admit and evaluate additional evidence constitutes violation of natural justice: ITAT Ahmedabad
Maha Gujarat Silk Section Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that CIT(A) erred in upholding addition made by AO without considering the additional evidence. Such failure to admit and evaluate the additional evidence constitutes a violation of natural justice. Thus, matter remanded back for fresh adjudication. Facts- The assessee is a partnership firm engaged […]
Competent authority authorized to decide rewards under informer schemes: Delhi HC
S. C. Gupta Vs Union of India And Ors (Delhi High Court) Delhi High Court held that rewards under informer schemes are ex-gratia payments and thus, lie within the discretion of the competent authority. Court cannot direct Government to grant a particular amount to the informant by way of an award. Facts- The Petitioner claims […]
Comparative Analysis of Insurance Fraud Laws: Approaches Across Jurisdictions
Comparative analysis of insurance fraud laws: investigating how different jurisdictions address insurance fraud and its enforcement Abstract The paper tries to investigate what constitutes insurance fraud, how it is controlled, and the regulations in place to combat it. Insurance fraud refers to unlawful conduct committed by both policyholders and insurance providers. The research categorizes categories […]
Addition u/s. 69 based on excel sheet seized from third party without independent enquiry untenable
ACIT Vs Yerra Rajesh (ITAT Visakhapatnam) ITAT Vishakhapatnam held that addition u/s. 69 r.w.s. 115BBE of the Income Tax Act merely on the basis of excel sheet seized from third party without any independent enquiry and independent corroborative evidences is unsustainable in law. Facts- Assessee filed his return of income for the A.Y. 2022-23. Thereafter, […]
Sec 128A of CGST Act 2017
A Comprehensive Guide to Waiver of Interest and Penalty Introduction The Goods and Services Tax (GST) Act, 2017, provides certain provisions for taxpayers to seek relief from interest and penalty imposed on them. One such provision is Section 128A r.w.t Rule 164, which outlines the procedure and conditions for the closure of proceedings under Section […]
Customs Duty Amendment for Direct Supplies to Defense, Govt.
The Ministry of Finance, under Notification No. 47/2024-Customs dated November 13, 2024, has amended the existing customs duty exemption framework outlined in Notification No. 50/2017-Customs. Under this amendment, Condition No. 48 now includes provisions for direct supplies to the armed forces of the Union under the Ministry of Defence and to government departments. This change, […]
SEBI Consultation on AI Tools Responsibility in Securities Market
The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing amendments to several regulations related to the use of Artificial Intelligence (AI) tools by regulated entities such as market infrastructure institutions, stock brokers, and other intermediaries. The aim is to assign clear responsibilities regarding the usage of AI, particularly ensuring the […]
SEBI Circular on REITs Employee Benefit Trust & Quarterly Reporting
SEBI has released a circular addressing three key regulatory updates for Real Estate Investment Trusts (REITs). Firstly, SEBI relaxed specific lock-in and allotment requirements for units assigned to employee benefit trusts under unit-based employee benefit (UBEB) schemes, promoting operational ease for such trusts in aligning with REIT regulations. Secondly, SEBI, in collaboration with the Indian […]
SEBI Issues Updates on InvITs Employee Trust and Reporting
On November 13, 2024, SEBI released a circular addressing multiple updates for Infrastructure Investment Trusts (InvITs), including relaxations, reporting format standards, and timeline alignments. SEBI provided relaxation on lock-in and allotment restrictions for units allotted to employee benefit trusts under the unit-based employee benefit (UBEB) scheme. This adjustment aims to facilitate smoother acquisition and transfer […]
SEBI Proposes Revisions for Angel Funds Regulation
The Securities and Exchange Board of India (SEBI) has issued a consultation paper regarding the review of the regulatory framework for Angel Funds under the AIF (Alternative Investment Funds) Regulations. Angel Funds are a category of venture capital funds that channel investments into start-ups, primarily from Angel Investors. While the sector has experienced significant growth, […]
Supplier View Feature in GST IMS: A New Update
The Government of India has introduced the Supplier View functionality within the Invoice Management System (IMS) on the GST Portal as of November 13, 2024. This feature allows suppliers to view the actions taken by recipient taxpayers on the invoices they have reported in GSTR-1, GSTR-1A, or IFF. This provides transparency, helping suppliers to identify […]
Review of SEBI Custodian Regulations: Consultation Paper
The Securities and Exchange Board of India (SEBI) has issued a consultation paper to review the SEBI (Custodian) Regulations, 1996, in light of the significant growth in assets under custody (AUC) and evolving market dynamics. Currently, 17 custodians, handling a wide range of institutional and non-institutional clients, are responsible for safekeeping assets and ensuring compliance […]
Amritsar Airport Added for Export of Jewellery Goods
1 4.71 Port of Export Exports under schemes of gold /silver/platinum jewellery and articles thereof shall be allowed by airfreight and Foreign Post Office through the Customs House at Mumbai, Kolkata, Chennai, Delhi, Jaipur, Bengaluru, Kochi, Coimbatore, Ahmedabad, Dabolin Airport, Goa, Hyderabad, and Surat (Surat Hira Bourse). Export by courier shall also be allowed through […]
Environmental Legislation in India: Challenges and Pathways
Abstract: Environmentalism has emerged as a critical concern globally, with India developing a unique framework of laws and policies addressing various environmental concerns. This paper looks at how environmental legislation has evolved in India, where the key laws and mechanisms for enforcing them have been established and the challenges in implementing them. Over and above this, the article will look into India’s international commitments as well as the role of the judiciary in the making of environmental policy. The aim is to give the reader a comprehensive view of progress and challenges in the environmental legal landscape of India. 1. Introduction […]
HC Directs State GST to Reconsider Order on ITC Rejection & stays Coercive Action
Trident Infraprojects Pvt. Ltd. Vs State of Assam And 2 Ors (Gauhati High Court) In the case of Trident Infraprojects Pvt. Ltd. Vs State of Assam and Others, the Gauhati High Court addressed the issue concerning the input tax credit under the Central Goods and Services Tax (CGST) Act, 2017. The petitioner sought to claim […]
Penalty Imposed for not mentioning DIN in Form AOC-4
The Registrar of Companies (ROC) in Kerala imposed a penalty on M/s. Saint Philomenas Koonammavu Nidhi Ltd for failing to include the Director Identification Number (DIN) in the financial statements attached to Form AOC-4 for the financial year ending 31st March 2020. This violation of Section 158 of the Companies Act, 2013, resulted in the […]
Order disregarding direction of the court cannot be sustained: Madras HC
Vaani Estates Private Limited Vs Additional / Joint / Deputy / ACIT / ITO (Madras High Court) Madras High Court held that any order contrary / disregarding the direction of this Court cannot be sustained as it renders the order bad for want of jurisdiction. Thus, order set aside and writ petition disposed of. Facts- […]
Petition under Article 226 of the Constitution not entertained due to availability of alternative statutory remedy
St John’s School Whitehall Vs Employees Provident Fund Organization (Meghalaya High Court) Meghalaya High Court didn’t entertained petition under Article 226 of the Constitution, for demand raised by EPF authorities for payment of damages and dues, due to availability of alternative statutory remedy. Accordingly, petitioner directed to deposit 25% of demanded amount. Facts- The petitioner/school […]
Guide to Fast Track Merger Under Section 233 of Companies Act 2013
Summary: The fast track merger process under Section 233 of the Companies Act, 2013, allows mergers between small companies, start-ups, or holding and subsidiary companies with fewer regulatory requirements. To qualify, small companies must have a paid-up capital of less than ₹4 crore and a turnover of less than ₹40 crore, while start-ups must be […]
Latest Case Law Related to IBC – July to September 2024
Summary: This collection of judgments delves into recent Supreme Court and High Court rulings concerning the Insolvency and Bankruptcy Code (IBC). In BRS Ventures vs. SREI Infrastructure, the Supreme Court held that while resolution plans extinguish claims against a corporate guarantor, creditors retain the right to pursue the principal borrower. In Vijay Kumar Singhania vs. […]
Key Considerations for CAs Shifting to Private Practice
A major decision in any Chartered Accountant’s life would be to start his or her own practice. Either at the very beginning of his or her career and or at a later stage of his or her life. Making a decision to start your own practice at the beginning of the career and or at […]
A Fresh Outlook on India’s Market Dynamics & Investment Strategies
In November, Indian markets sustained healthy performance, primarily supported by robust domestic equity inflows. Key drivers included a promising recovery in private capital expenditure, a positive rural cycle, and a decline in crude oil prices. Additionally, the U.S. Federal Reserve’s proactive 50-basis-point rate cut, paired with expectations of more cuts to ensure a “soft landing” […]
NFRA Proposes revision of Quality & Auditing Standards despite ICAI disagreement
The National Financial Reporting Authority (NFRA) recently convened its 18th meeting on November 11-12, 2024, to discuss updates to quality and auditing standards in alignment with global practices. NFRA recommended that the Standard on Quality Control (SQC1) be revised to become Standards on Quality Management (SQM1 and SQM2), mirroring the International Standards on Quality Management […]
Key GST Updates, Legal Developments and Economic Forecasts
The International Monetary Fund (IMF) has retained India’s economic growth rate at 7% for the current fiscal 2024-25. For 2026, IMF’s forecast is of 6.5%. On the other had RBI’s forecast for 2025 is 7.2%. For 2025, growth projections for China is 4.5%, US is 2.2% and World is 3.2%. Justice D.Y. Chandrachud demitted the […]
Police, Prosecutors Must Not Frame Innocent By Presenting Selective Evidence: HP HC
It is most refreshing, most reinvigorating and most reassuring to learn that none other than the Himachal Pradesh High Court at Shimla itself in a most learned, laudable, landmark, logical and latest judgment titled State of HP vs Chohan Singh & Others in Cr. Appeal No. 529 of 2012 and cited in Neutral Citation No.: […]
CIT(A) directed to condone delay as it is alleged that addition is based on incorrect reporting by auditor
ABS Fujitsu General Pvt. Ltd. Vs DCIT (ITAT Bangalore) ITAT Bangalore directed CIT(A) to condone delay of 484 days in filing of an appeal and consider the issue on merits as it is alleged that the addition is made due to incorrect reporting by auditor. Facts- The assessee is a private limited company engaged in […]
Deemed rent u/s. 23(1)(a) not invocable as property leased out for continuous long period
A.S. Raja Sons Enterprises (P.) Ltd Vs ACIT (ITAT Visakhapatnam) ITAT Vishakhapatnam held that invocation of deemed rent under section 23(1)(a) of the Income Tax Act unjustified since property of the assessee is leased out for a continuous long period for the occupation of tenants. Facts- The assessee is engaged in the business of letting […]
Non-admission of additional evidence by CIT(A) untenable: Matter remanded
Janaki Ram Babji Rao Annam Vs ITO (ITAT Visakhapatnam) ITAT Visakhapatnam held that CIT(A) didn’t admit the additional evidence produced by the assessee by simply holding that no request for admission of additional evidence under rule 46A was filed. Hence, matter remanded back to CIT(A) with direction to admit additional evidence. Facts- The case of […]
Weekly Newsletter from CBIC Chairman dated 11th November, 2024
The 18th All India Customs Consultative Group (CCG) meeting was held in Pune in a hybrid format, chaired by the Member (Customs), CBIC. The CCG, established in 2009, serves as a platform for addressing customs-related issues raised by trade associations to improve the Ease of Doing Business for importers, exporters, and stakeholders. This year, 134 […]
Woman’s Hotel Stay with Man Not Consent for Sex: Bombay HC
Women Booking Hotel Room With A Men Does Not Imply Her Consent For Sex: Bombay HC While most commendably not hesitating at all whatsoever in attaching paramount importance to the dignity, consent and well being of women, it is certainly most refreshing, most reinvigorating and so also most reassuring to note that none other than […]
FCRA Denial Reasons for Registration & Renewal Applications
The Ministry of Home Affairs, through a public notice dated November 8, 2024, outlines the reasons for the denial or refusal of registration and renewal applications under the Foreign Contribution (Regulation) Act, 2010 (FCRA). Applications are rejected if they do not meet eligibility criteria or fulfill the conditions outlined under the Act. Reasons for denial […]
Operational framework for reclassification of Foreign Portfolio Investment to FDI
The Reserve Bank of India (RBI) has issued guidelines for the reclassification of Foreign Portfolio Investment (FPI) to Foreign Direct Investment (FDI) under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. If an FPI exceeds the 10% limit on a company’s total paid-up equity, it must either divest or reclassify the excess investment as FDI. […]
SEBI Introduces Trading with Blocked Amount for Investors
Securities and Exchange Board of India (SEBI) has introduced new guidelines to enhance investor protection in the secondary market by allowing trading supported by blocked funds in the investor’s bank account. This facility, which was launched in January 2024, enables clients to block funds at the time of placing buy orders without transferring them to […]
SEBI Circular on FPI to FDI Reclassification Procedure
SEBI’s recent circular (SEBI/HO/AFD/AFD-POD-3/P/CIR/2024/152) outlines the updated procedure for reclassifying Foreign Portfolio Investor (FPI) investments to Foreign Direct Investment (FDI). According to the circular, if an FPI’s investment in an Indian company exceeds 10% of its paid-up equity capital, the FPI can reclassify its holdings as FDI, following the guidelines set by the Foreign Exchange […]
SEBI Proposes Procedure for Waiver or Reduction of Interest
Securities and Exchange Board of India (SEBI) has issued a consultation paper on the procedure for seeking a waiver or reduction of interest in recovery proceedings related to penalty non-payment. Under SEBI’s powers, recovery proceedings follow the Income-tax Act provisions, and SEBI has delegated authority to reduce or waive interest to the Competent Authority. A […]
Madras HC remitted matter back
Health Remedies Vs Assistant Commissioner of State Tax (Madras High Court) Madras High Court remanded the matter back for reconsideration with condition to remit 5% of disputed tax demand since the tax proposal was confirmed because the tax payer did not appear for the personal hearing or respond to the show cause notice. Facts- An […]
Legal Framework, Policies & Challenges
Abstract Sustainable development has become a central focus for India, a nation that is grappling with rapid economic growth, environmental degradation, and pressing socio-economic needs. This paper explores the concept of sustainable development in India, particularly through the lens of environmental law. It assesses India’s legal and policy framework aimed at achieving sustainable development, its […]
Key Legal Aspects & FAQs
Summary: Creating a valid Will in India requires specific guidelines, though no particular language is mandated. A valid Will should express the testator’s intent to distribute assets upon death, be made by an individual over 18, of sound mind, and without any coercion. The testator should be fully aware of the content and voluntarily approve […]
Date of submission of claim recognised on accrual of cash incentive: Punjab & Haryana HC
CIT Vs Punjab Bone Mills (Punjab and Haryana High Court) Punjab and Haryana High Court held that date of submission of claim would be recognized on accrual of cash incentive and not from date of submission or receipt of cash incentive. Facts- Question raised vide the present petition is that whether on the facts and […]
Revamp of Income Tax Act 1961: Key Updates for Taxpayers
Arjuna: Krishna, there’s news that the Income Tax Act of 1961 might soon be replaced. What’s this all about? Krishna: Arjuna, after over six decades of serving as the foundation of India’s tax laws, the Income Tax Act has grown complicated due to numerous amendments. The new direct tax laws is designed to simplify and […]
Dismissal of appeal due to non-prosecution without adjudicating matter on merits unjustified: ITAT Ahmedabad
Joykutty Selistine Puthuvayal House Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that dismissal of appeal due to non-prosecution without adjudicating the issue on merits deprives the assessee of fair opportunity of being heard hence violating the principles of natural justice. Thus, matter remanded back to CIT(A) for fresh adjudication. Facts- The assessee is an individual […]
Revisionary jurisdiction u/s. 263 not invocable when AO took legally plausible view: ITAT Ahmedabad
Kiri Industries Ltd. Vs PCIT (ITAT Ahmedabad) ITAT Ahmedabad held that invocation of revisionary jurisdiction under section 263 of the Income Tax Act by the Principal CIT erred since AO has taken legally plausible view. Accordingly, order set aside. Facts- The assessee filed the return of income declaring a total income of Rs. Nil. However, […]
Environmental Laws & Its Implementation In India – A Critical analysis
Introduction The challenge here is the rapid urbanization of counties, the industry, and rising population making environmental sustainability as one of the predominant key issues. Given India’s diverse ecologies and its drastic environmental decay, effective and thorough environmental regulations in the country have become critical. The evolution of India’s environmental law in light of our […]
Mere cash deposits not constitutes turnover for Section 44AB Audit: ITAT Delhi
Mohd Javed Vs ITO (ITAT Delhi) In Mohd Javed vs. Income Tax Officer (ITO), the Delhi ITAT addressed an appeal concerning a penalty under Section 271B of the Income Tax Act, imposed due to unreported turnover. Javed, a commission agent for the Gujarat Milk Cooperative Federation, reported a nominal turnover of ₹4.01 lakh in his […]
Appeal for Early Hearing to Waive GST Interest & Penalties – Section 128A
Summary: The recently introduced Section 128A of the Central Goods and Services Tax (CGST) Act, 2017, effective November 1, 2024, enables taxpayers to obtain conditional waivers on interest and penalties for specific tax demands under Section 73, provided they settle the full tax amount by March 31, 2025. This waiver applies to cases with pending […]
National Green Tribunal: Role, Jurisdiction and Challenges
Summary: The National Green Tribunal (NGT) of India, established under the National Green Tribunal Act, 2010, provides a judicial forum dedicated to resolving environmental disputes and enforcing environmental laws. Established on October 18, 2010, NGT operates under the principles of “polluter pays” and sustainable development, offering swift resolutions to reduce the burden on traditional courts. […]
Bombay HC Quashes Section 148 Proceeding, Orders De Novo Assessment
Anil Kumar Mehta Vs ITO (Bombay High Court) In Anil Kumar Mehta vs Income Tax Officer (ITO), the Bombay High Court addressed procedural issues surrounding notices under Section 148 of the Income Tax Act, 1961. The petitioner challenged an order dated April 4, 2022, under Section 148A(d) and a subsequent notice dated April 5, 2022, […]
Thoughts On Laws and Policies Relating to MSMEs Sector
Worldwide, the micro, small and medium enterprises have been accepted as the engine of economic growth and the foundation for promoting equitable development. These enterprises constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial […]
Private Equity’s Expanding Role in Middle Market M&A
Private Equity’s Strategic Surge in Mergers & Acquisitions (M&A): Unveiling the Drivers of Middle-Market Boom Summary: Private equity (PE) has become a significant force in mergers and acquisitions (M&A), especially within the middle market, driven by record-high investment capital (“dry powder”) and favorable regulatory frameworks. While PE once focused on large-scale acquisitions, the middle-market segment—companies […]
Understanding Invoice Management System for ITC
Summary: The Invoice Management System (IMS) in India was introduced to enhance the tracking and reporting of Input Tax Credit (ITC) for businesses. IMS enables suppliers to upload invoices, which then reflect in the recipient’s system with options to accept, reject, or keep pending. Accepted invoices automatically populate the recipient’s GSTR-2B, though recipients must meet […]
Empowering MSME via TReDS
Summary: The Ministry of Micro, Small and Medium Enterprises (MSME) has mandated that all companies with a turnover exceeding Rs. 250 crore and Central Public Sector Enterprises (CPSEs) must register on the Trade Receivables Discounting System (TReDS) platform by March 31, 2025. Launched by the Reserve Bank of India (RBI) in 2014, TReDS enables MSMEs […]
Understanding Recent Amendment to Section 128A, 16(5) & 16(6)
Summary: Recent amendments to GST provisions under Sections 16 and 128A introduce significant updates, particularly affecting Input Tax Credit (ITC) claims and tax relief. The Supreme Court upheld Section 16(4) in the Safari Retreat case, affirming the government’s authority to restrict ITC claims. Additionally, Section 16(5) set a deadline of November 30, 2021, for ITC […]
Section 271B penalty quashed as Revenue Misinterprets Gross receipt of agent as Sales
Sh. Nikki Tyagi Vs ITO (ITAT Delhi) The case of Sh. Nikki Tyagi vs. Income Tax Officer (ITO) addressed a penalty imposed under Section 271B of the Income Tax Act due to a turnover exceeding the threshold requiring an audit. Tyagi, a distributor for Mother Dairy, filed a return under presumptive taxation, declaring income from […]
ITAT quashes section 271B Penalty as Assessee’s Bank Deposits Reflect Sales for Mother Dairy, Not Own Turnover
Ved Singh Vs ITO (ITAT Delhi) In the case of Ved Singh vs. ITO (ITAT Delhi), the taxpayer Ved Singh challenged a penalty levied under Section 271B of the Income-tax Act, 1961, amounting to ₹1,09,807 for the assessment year 2017-18. The penalty was initially imposed by the Assessing Officer (AO) due to Singh’s failure to […]
Section 271B Penalty on Mother Dairy Agent Quashed by ITAT
Sh. Naresh Kumar Vs ITO (ITAT Delhi) In the case of Naresh Kumar vs. ITO, the Delhi Income Tax Appellate Tribunal (ITAT) ruled in favor of the appellant, a Mother Dairy agent and ex-serviceman, by overturning a penalty imposed under Section 271B of the Income Tax Act. The assessee’s case was scrutinized due to cash […]
E इन्वॉइसिंग और ई-वे बिल की संयुक्त समीक्षा।
Summary: जीएसटी अधिनियम, 2017 के अंतर्गत, ई-इनवॉइस और ई-वे बिल दो अलग-अलग प्रक्रियाएं हैं जो करदाताओं के अनुपालन में सहायक हैं। ई-इनवॉइस का उपयोग लेनदेन के सभी विवरण रिकॉर्ड करने और मानकीकृत प्रारूप तैयार करने के लिए किया जाता है और इसे इनवॉइस पंजीकरण पोर्टल (IRP) के माध्यम से जनरेट किया जाता है। इसके विपरीत, […]
Outstanding amount under Maharashtra Settlement could not be adjusted against refund payable under Maharashtra VAT Act
Andreas Stihl Private Limited Vs Joint Commissioner of State Tax (Bombay High Court) Conclusion: Since there was no order u/s 50 of the MVAT Act for adjustment of refund of the F.Y 2016-17 against dues of F.Ys 2013-14, 2015-16 & 2017-18, therefore, the authorities under the Settlement Act may also be the authorities under the […]
No GST liabilities on salary paid to Seconded Employees as per CBIC Circular No. 210/4/2024-GST dated 26.06.2024
Metal One Corporation India Pvt Ltd Vs Union of India & Ors. (Delhi High Court) Conclusion: Foreign entities including Sony India Pvt. Ltd. was absolved of liability to pay Goods and Services Tax ( GST ) on the salaries paid to seconded employees as the value of the service rendered would have to be treated […]
Dismissal of condonation of delay for non-filing of condonation petition untenable: ITAT Chennai
Medavakkam Vattara Nadargalikkiya Sangam Vs ITO (ITAT Chennai) ITAT Chennai held that the condonation of delay should not be dismissed for the reason that the appeal filed belatedly is not accompanied by condonation petition. Thus, order set aside and matter remanded back. Facts- Vide the present appeal, the appellant has mainly contested that Addl/JCIT has […]
POCSO Sexual Assault Cases Can’t Be Quashed on Compromise: SC
Sexual Assault Under POCSO Can’t Be Quashed Based On ‘Compromise’, Offence Is Heinous & Not Of Private Nature: SC It is definitely in the fitness of things that the Supreme Court in a most learned, laudable, landmark, logical and latest judgment in Criminal Appeal No. 3403 of 2023 (@ SLP (Crl.) No. 12912 of 2022) […]
Madras HC directs Dept to hear GTS appeal on merits Despite Delayed filing
Sri Shanmuga Motors Vs State Tax Officer (Madras High Court) Summary: In Sri Shanmuga Motors v. State Tax Officer (W.P. No. 11737 of 2024), the Madras High Court addressed the dismissal of an appeal filed by Sri Shanmuga Motors against a tax assessment order dated September 9, 2023. The appeal, initially rejected on January 30, […]
Action of AO based on High Court decision not erroneous hence jurisdiction u/s. 263 unjustified
Heylands Exports Pvt. Ltd. Vs PCIT (ITAT Chennai) ITAT Chennai held that action of AO based on jurisdictional High Court decision as prevalent on the specified time, which was later on reversed by the Supreme Court, cannot be held to be erroneous and prejudicial to the interest of revenue. Thus, invocation of jurisdiction u/s. 263 […]
Appeal dismissed as tax effect below monetary limit as specified by CBDT: ITAT Kolkata
ITO Vs Genesis Computech Pvt. Ltd. (ITAT Kolkata) ITAT Kolkata dismissed the appeal preferred by the revenue since tax effect is below the threshold specified by CBDT vide circular no. 5 of 2004 dated 15.03.2024 and also the case doesn’t fall under any exception as per CBDT circular. Facts- During the assessment proceedings, the Assessing […]
Dismissal of appeal merely because appeal was filed manually instead of e-filing unjustified: ITAT Ahmedabad
Mayursinh Jayandrasinh Jadeja Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that dismissal of appeal by CIT(A) on technical/ procedural aspect merely because the appeal was filed manually instead of e-filing unjustified as assessee was not given an opportunity to cure the defect. Accordingly, appeal restored back. Facts- The case of the assessee was reopened based on […]
Payment by Google Ireland not in nature of royalty is not taxable in India: ITAT Bangalore
DCIT Vs Google Ireland Ltd. (ITAT Bangalore) ITAT Bangalore held that payments made by GIL towards Adwords program is not in the nature of royalty or FTS [Fees for Technical Service] and hence the same is not taxable in India. Facts- The assessee, Google Ireland Limited (GIL) is a foreign company having its registered office […]
Issuance of notice to dead person unjustified since entire estate taken over by official assignee: Madras HC
A.Sai Siva Jyothi Vs PCIT (Madras High Court) Madras High Court held that issuance of notice in the name of assessee unjustified as Official Assignee has taken charge of the entire estate of the original assessee. Once the assets are taken over by official assignee the notice issued to dead person is non est in […]
AO not permitted to take different stand on same issue over different years: ITAT Chennai
ITO Vs Ambur Economic Development Organization (ITAT Chennai) ITAT Chennai held that an AO is not permitted to take different stand on the same issue and same set of facts over different years. Thus, exemption u/s. 11 granted in spite of the fact that return was filed using ITR-6. Facts- The primary issue challenged by […]
No jurisdiction under Article 226 as non-compliance with principles of natural justice not substantiated
Frontier Agrotech Private Limited Vs Joint Commissioner of State Tax (Patna High Court) Patna High Court held that invocation of extraordinary jurisdiction under Article 226 of the Constitution of India unjustified as lack of jurisdiction and the absence of compliance with principles of natural justice have been merely raised but not substantiated. Facts- The petitioner […]
Deduction u/s. 54EC admissible as nexus between advance from sale of property and investment in NHAI bonds established
Shital Piyushkumar Patel Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that benefit of deduction under section 54EC of the Income Tax Act allowed since nexus between advance received towards sale of property and investment made in NHAI bonds established. Facts- During the assessment proceedings under Section 143(3) of the Act, it was observed that a […]
Analysis of Section 245 of Companies Act
1. Introduction The introduction of class action suits under the Companies Act, 2013 (the Act), marked a significant step towards protecting shareholders and depositors. After more than a decade since the Act was enacted, India has started to see substantial applications filed with the National Company Law Tribunal (NCLT), with minority shareholders taking companies to […]
Appeal dismissed in absence of substantial question of law: Delhi HC
PCIT Vs Esys Information Technologies Ltd (Delhi High Court) Delhi High Court held that appeal filed by the revenue is liable to be dismissed in absence of any substantial question of law. Thus, appeal is, accordingly, dismissed. Facts- The assessee is a subsidiary of eSys Technologies Pvt. Ltd, Singapore (ESYS Singapore) and is engaged in […]
Government should prevent misuse of public funds for issuing advertisements for extraneous purpose
Editors’ Forum Vs State of Maharashtra & Ors. (Bombay High Court) Bombay High Court directed the State of Maharashtra [including BMC, CIDCO, MIDC, MHADA, BEST and Municipal Corporation of Nagpur] to ensure that there is no abuse or misuse of public funds for issuing advertisements for extraneous purpose. Advertisement should not be released in violation […]
Rule 96(10) of CGST Rules is ultra vires of section 16 of IGST Act: Kerala HC
Sance Laboratories Private Limited Vs Union Of India (Kerala High Court) Kerala High Court held that rule 96(10) of the Central Goods and Services Tax Rules, 2017 [CGST Rules] as inserted by notification 53/2018-CT dated 09-10-2018 effective from 23-10-2017 is ultra vires of provisions of section 16 of the Integrated Goods and Services Tax Act, […]
Redemption fine and penalty reduced in case of import of green peas due to extension of restriction
Commissioner of Customs (Port) Vs Rahul Agro Industries (CESTAT Kolkata) CESTAT Kolkata taking a sympathetic view further reduced redemption fine and penalty on import of green peas due to extension of restriction. Redemption fine and penalty reduced to Rs. 25 Lakhs each. Facts- The issue involved in the present Appeal is Importation of Green Peas […]
SC laid down legal framework for withdrawal and settlement of claims in CIRP while adjudging Byju’s matters
GLAS Trust Company LLC Vs BYJU Raveendran & Ors (Supreme Court of India) Conclusion: Supreme Court while adjudicating matters emphasized the need to follow the legal framework laid down by statutory provisions for the withdrawal of petitions and settlement of claims in a Corporate Insolvency Resolution Process (CIRP). The correct course of action for approval […]
Clarification on Insurance Amount & Bond Value for CCSPs & validity of Bond for AEO-LO
The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 22/2024-Customs to clarify the insurance and bond value requirements for Customs Cargo Service Providers (CCSPs). The changes reduce the insurance amount by considering an average storage duration of 5 days, down from the previous 10-day period. This adjustment is based on the reduced […]
Waiver Scheme for GST Taxpayers Under Section 128A
The GST Council’s 53rd meeting on June 22, 2024, introduced a waiver scheme for taxpayers to reduce disputes by waiving interest and penalties on demands or orders under Section 73 of the CGST Act, 2017. This applies to the financial years 2017-18, 2018-19, and 2019-20, excluding cases involving fraud or willful misstatements. To avail of […]
Reporting of Foreign Exchange Transactions to Trade Repository
The Reserve Bank of India (RBI) has announced an expansion of reporting requirements for foreign exchange (FX) transactions to the Trade Repository (TR) of Clearing Corporation of India Ltd. (CCIL). Effective from February 10, 2025, all inter-bank FX contracts, including those involving INR, must be reported to the TR in specified hourly batches. For FX […]
Relief to taxpayer where ITC has been disallowed u/s 16(4) of CGST Act, 2017
Summary: The CBIC, through Circular No. 237/31/2024-GST dated 15th October 2024, clarified the implementation of subsections (5) and (6) of Section 16 of the CGST Act, 2017, providing relief to taxpayers where Input Tax Credit (ITC) had been disallowed under Section 16(4). The circular outlines various scenarios related to the availment of ITC, emphasizing that […]
Supplementary report valid even if investigating officer fails to seek permission for further investigation
Asha Vs State Of Kerala (Kerala High Court) Kerala High Court held that failure of investigating officer to seek permission before conducting further investigation cannot be the reason to held supplementary/additional final report invalid. Facts- The petitioner is the 6th accused in the case, where he alleged to have committed offences punishable u/s 447, 323, […]
No addition u/s 69 of unexplained cash deposits as same was based on mere suspicion
Tirupati Jewels Vs ITO (ITAT Delhi) Conclusion: Addition of Rs. 2.25 crore made by AO against assessee for unexplained cash deposits was deleted as assessee had discharged the onus and prove the genuineness of the transaction and addition was based on mere suspicion of AO. Held: Assessee-firm was engaged in trading gold, silver, and diamond […]
Delhi HC Modifies retrospective GST Registration Cancellation Date to SCN Date
Deepali Kapoor Vs Avato Ward-63, State Goods and Services Tax & Another (Delhi High Court) In a recent decision, the Delhi High Court has modified the effective date of GST registration cancellation for the petitioner, Deepali Kapoor, from a retrospective date to a more recent one. Kapoor had contested the order issued by Avato Ward-63, […]
Classification of Food Products under GST: HIC-ABF Ruling
In re HIC-ABF special foods (P) Ltd. (GST AAR Kerala) In the recent ruling by the Kerala Authority for Advance Ruling (AAR) on the application of M/S HIC-ABF Special Foods Pvt. Ltd., the primary issue examined was the classification of various ready-to-eat food items for GST purposes. The applicant, engaged in producing ready-to-eat seafood and […]
Data Privacy & Banking Compliance: GDPR vs. Indian Laws
Data Privacy And Banking Compliance Under Eu’s GDPR And Data Protection Laws In India Summary: The rise of electronic banking has heightened concerns around data privacy, prompting regulatory changes like the EU’s General Data Protection Regulation (GDPR) and India’s Digital Personal Data Protection Act (2023). GDPR, effective since 2018, ensures strict data protection standards for […]
CCI Fines Maruti Suzuki ₹200 Cr for Anti-Competitive Practices
MEDIA REPORT ANALYSIS on CCI imposes ₹200 crore penalty on Maruti Suzuki for entering into anti-competitive agreements with dealers to restrict discounts Summary: The article by Jelysna Chacko on Bar and Bench examines the Competition Commission of India’s (CCI) ₹200 crore penalty against Maruti Suzuki India Limited (MSIL) for engaging in anti-competitive practices. MSIL allegedly […]
Why Income Tax Notices Are Issued: Reasons and Compliance Tips
Let’s understand why notice under income tax issued : Key Reasons, Types, and Best Practices for Compliance Summary: The rise in income tax notices recently can be attributed to advancements in the tax department’s data analytics and increased digital transactions, leading to more rigorous scrutiny. Notices may be issued due to mismatches in reported income […]
No IGST on ocean freight could be levied on FOB Transactions
BLA Coke Pvt. Ltd. Vs Union Of India & Ors. (Gujarat High Court) Conclusion: Integrated Goods and Services Tax ( IGST ) on ocean freight could not be levied on Free on Board ( FOB ) transactions also as once the IGST was paid on value of goods including the freight, cost and insurance, it would […]
Fly Ash Bricks/ Blocks containing less than 90% fly ash content liable to 5% GST: Gujarat HC
Shree Mahalaxmi Cement Vs State of Gujarat & Ors. (Gujarat High Court) Gujarat High Court held that Fly Ash Bricks and Fly Ash Blocks containing less than 90% fly ash content is liable to 5% GST and not 18% GST. Accordingly, order passed by advance ruling authority set aside. Facts- The present petition is filed […]
Penalty u/s. 271D set aside as claim made in an open and bonafide manner: ITAT Bangalore
Gangadhara Shetty Vs ITO (ITAT Bangalore) ITAT Bangalore held that penalty under section 271D of the Income Tax Act not leviable in terms of section 273B of the Income Tax Act since claim of exemption u/s. 54 is made in an open and bonafide manner. Facts- Assessee is an individual and earning salary income. The […]
No addition u/s 68 as unexplained cash credits as there was lack of incriminating evidence
DCIT Vs Sarena Pvt. Ltd. (ITAT Delhi) Conclusion: Addition of unsecured loans as unexplained cash credits under Section 68 was unjustified as all the above transactions were duly recorded in the books of account and there was no undisclosed cash credit involved in these transactions. Held: AO had recorded the reasons to believe based on […]
NIDB data alone cannot be base for rejection of transaction value: CESTAT Chennai
Albany Molecular Research Hyderabad Research Centre Pvt Ltd Vs Commissioner of Customs (CESTAT Chennai) CESTAT Chennai held that enhancement of transaction value solely on the basis of NIDB data, without determining how imported goods are comparable and contemporaneous, not justified. Hence, order set aside. Facts- The Appellant, an 100% EOU, was importing Diethylaminosulfer Trifluoride and […]