Taxation Law – Transfer Pricing – International Transaction with Overseas Branches – Valid Reference to TPO – Petition Dismissed – Axis Bank contended that transactions between head office and foreign branches were not international transactions requiring ALP benchmarking – Held: In view of deeming fiction under Section 92F and judicial precedent, foreign branch...
Custom Law - Export Consignment Detention – Delay in Seizure Memo – Customs Act – Violation of Procedural Safeguards - Petitioner’s export goods detained since 13.01.2025 without seizure memo or panchanama – Court held that such detention without formal seizure for over two months was unjustified – Detention in violation of CBEC Circulars mandating action within...
Civil Law - Review Jurisdiction – Error Apparent on Record – Not Made Out – Review Rejected – Applicant (Assessee) sought review of earlier judgment alleging failure to consider seizure of documents and resultant delay in filing return under Section 139 – Court held: No error apparent on face of record; ITR being “non-est” was merely an obiter, not a concl...
Taxation Law - Corporate Insolvency – Resolution Plan and Tax Demands – Binding Effect under Section 31 of IB Code – Tax Demands Set Aside - The Supreme Court held that once a resolution plan is approved by the Adjudicating Authority (NCLT), all claims not part of the plan stand extinguished – Income tax demands for AYs 2012-13 and 2013-14, which were not submitted prior to...
Taxation Law - Exemption Under Sections 11 and 12 – Investment in Subsidiary Not a Violation of Section 13(1)(d) – The Revenue contended that the respondent violated Section 13(1)(d) by investing in equity shares of BARC, thereby making it ineligible for exemption under Sections 11 and 12 – The respondent argued that the funds were deployed pursuant to a government policy directi...
Taxation Law - Transfer Pricing – International Transaction – AMP Expenses – Absence of Agreement – No Adjustment Required – The Transfer Pricing Officer (TPO) treated AMP expenses incurred by the assessee as an "international transaction" for brand-building for its Associated Enterprise (AE) and made an adjustment – The ITAT held that the Revenue fail...
Taxation Law - Reassessment Proceedings – Requirement of Failure to Disclose Material Facts – Jurisdictional Condition – Section 147 of the Income-tax Act – Reassessment notice issued after four years from the end of the relevant assessment year must satisfy the condition that income escaped assessment due to failure to disclose fully and truly all material facts – In...
Income Tax – Disallowance Under Section 40A(3) – Whether Justified – The Tribunal held that no separate addition was made under Section 40A(3) and deleted the disallowance of ₹1,08,34,15,088—Revenue challenged this deletion—Held: Assessing Officer had explicitly mentioned the disallowance and initiated penalty proceedings under Section 271(1)(c)—Tribunal&rsquo...
Taxation Law - Tax Evasion – Undervaluation of Goods – Section 129 of the IGST/CGST Act – Goods in transit can be seized if transported in contravention of the Act or Rules – The petitioners contended that their goods were lawfully transported with valid tax invoices and without an e-way bill, as the value was below ₹50,000 – The Court held that undervaluation of go...
Taxational Law – CGST Act, UPGST Act - Provisional Attachment – Justification under Section 83 of UPGST Act – The petitioner’s bank account was provisionally attached due to alleged tax evasion – The petitioner contended that the attachment was arbitrary and relied on Radha Krishan Industries v. State of Himachal Pradesh (AIR 2021 SC 2114), where the Supreme Court rul...
