15 ViewsThe Hon’ble Supreme Court in the case of Central GST Delhi – III v. Delhi International Airport Ltd (Civil Appeal No. 8996 of 2019 dated May 19, 2023) held that neither is there any compulsion to levy development fee nor is the collection conditional upon its deposit in the government treasury. Facts: Delhi International […]
Institutions earning profit from educational activities will not get tax exemptions
28 ViewsThe Supreme Court has held that an institution earning profit from educational activities will not get exemption from income tax. With this it has reversed Punjab & Haryana High Court judgment where Baba Banda Singh Bahadur Education Trust was allowed exemption despite making profit from educational activities. “In the recent decision of this Court […]
Supreme Court ruling on Income Tax searches big relief to taxpayers
22 ViewsThe Supreme Court has held that the income tax (I-T) department cannot reopen completed assessments under the Section 153A of the I-T Act, unless “incriminating material” is unearthed during search and seizure operations. Any other material emanating from the search can’t be relied on for issuing re-assessment orders. The ruling, tax experts said, could […]
No ITC to purchasing dealer in the absence of proof of genuine transactions and physical movement of goods
62 ViewsThe Hon’ble Supreme Court in the State of Karnataka v. M/s. Ecom Gill Coffee Trading Pvt. Ltd. [Civil Appeal No. 230 of 2023 dated March 13, 2023] has quashed and set aside the order passed by the Hon’ble Karnataka High Court on the grounds that until the purchasing dealer discharges the burden of proof […]
In absence of cogent evidence, mere invoice production, cheque-payment insufficient to claim ITC: Supreme Court
42 ViewsIt’s a bad news for the industry as Supreme Court has held that mere production of invoice and cheque payment is insufficient to claim ITC (Input Tax Credit). Expert say though this order is related with matter under Value Added Tax (VAT) regime, but likely to have impact on GST too. “In absence of […]
Search & Seizure proceedings cannot be initiated unless there is sufficient material against the assessee
63 ViewsThe Hon’ble Supreme Court in Union of India & Ors. v. M/s. Magnum Steel Ltd. [Civil Appeal Nos. 9597-9599 of 2011 dated March 2, 2023] has held that, the person authorizing the search must express its satisfaction that the material is sufficient for it to conclude that search is necessary. Further held that, there […]
Bail denied to accused of fake invoices due to ongoing investigations to unearth more fake suppliers
The Apex Court has refused to interfere with the order passed by the Hon’ble Chhattisgarh High Court, wherein bail was denied to the accused in the alleged matter for availment of wrong Input Tax Credit, on the ground that investigations were still going on for detecting more fake suppliers and investigations might be hampered if bail was granted.
Bail Condition to deposit INR 70 Lakhs for alleged wrongful availment of ITC is not sustainable
104 ViewsThe Hon’ble Supreme Court in the matter of Subhash Chouhan v. Union of India [Criminal Appeal No. 186 /2023 dated January 20, 2023] set aside the condition imposed by the Hon’ble Chhattisgarh High Court, of depositing an amount of INR 70,00,000/- for grant of bail to the assessee, in a matter of wrongful availment […]
Integrated Desktop Computer cannot be classified as ‘portable device’
100 ViewsThe Hon’ble Supreme Court in Hewlett Packard India Sales Pvt. Ltd. & Anr. v. Commissioner of Customs (Import), Nhava Sheva [Civil Appeal No. 5373 and 6715 of 2019, dated January 17, 2023] set aside the orders of CESTAT, Mumbai, which classified the Integrated Desktop Computer as a portable device. Held that, such goods cannot be classified as ‘portable’ for the reasons that their dimensions make it illogical and unviable for […]
Replacement of old machinery with new machinery for improvement in quality/quantity results in ‘Modernisation’ and not diversification
123 ViewsThe Hon’ble Supreme Court in AMD Industries Limited v. Commissioner of Trade Tax, Lucknow and Anr. [Civil Appeal No. 108 of 2023 dated January 9, 2023] upheld the order passed by the Hon’ble Allahabad High Court holding that due to advancement in technology, if there is a replacement of the old machinery with the […]