Taxation Law - Maintainability of Direct Appeal under DVAT Act – Interpretation of Section 106(4) - The respondents objected to the maintainability of appeals directly filed in the High Court, arguing the DST Act’s procedure (Section 45) requiring a Tribunal reference should apply, especially for tax periods before 01 April 2005 – The Court held that Section 106(4) of DVAT does n...
Taxation Law - Expenditure Classification – Current vs. Capital Expenditure – Income Tax Act - The appellant, operating a 5-Star hotel, sought deductions for expenses incurred on replacing carpets, mattresses, and lampshades, claiming them as allowable under Section 31 as “current repairs.” The Tribunal denied the claim, categorizing the expenses as capital rather than reve...
Income Tax Law – Reassessment Notice – Assumption of Jurisdiction Beyond Four Years – Reopening of assessment under Section 148 of the Income Tax Act, 1961 for AY 2011-12 was challenged by the petitioner (Discovery Communications India), as the original assessment had already been completed under Section 143(3) – Notice issued after the four-year limitation under the first ...
Taxation Law – GST - Excess Stock Found – Applicability of Sections 73/74 vs. Section 130 – Proceedings Quashed – The petitioner contested the use of Section 130 of the UPGST Act for proceedings related to the discovery of excess stock during a survey, claiming that the correct legal approach should involve Sections 73 or 74 – Held: The court agreed with the petitione...
Income Tax – Reassessment – Writ petition challenging reassessment based on an admitted error in filing – Petitioner made a mistake in the tax declaration under the Voluntary Disclosure Scheme, which led to a reassessment notice – The mistake was flagged to the authorities, including the Principal Commissioner of Income Tax (PCIT), but the mistake was not corrected, and rea...
Central Goods and Services Tax Act, 2017 – GST Registration Suspension – Requirement of Landlord Consent – Tenant Rights – Suspension and Cancellation – The petitioner, M/s Crystal Beverages, challenged the order-cum-show cause notice dated 10.07.2024, suspending its GST registration over alleged unauthorized use of additional premises due to a lack of No Objection Ce...
Criminal Proceedings – Cheating and Dishonest Intent – Application to quash proceedings initiated for non-payment for supplied wheat – Applicants claimed dispute is civil in nature, and invoked moratorium under IBC – High Court held prima facie case under Section 420 IPC made out – Rejected plea of moratorium protection under IBC for criminal liability – Applica...
Income Tax – Bogus Purchases – Disallowance of 10% – The appellant challenged the disallowance of 10% of purchases deemed bogus by the ITAT, despite the acceptance of sales as genuine by the Revenue – Held: The ITAT found no cogent or convincing evidence to support the Revenue's allegation that all purchases were bogus – The ITAT, however, upheld the CIT-A's d...
GST Law – Revocation of Voluntary Cancellation of Registration – Principles of Natural Justice – The petitioner challenged the revocation of voluntary cancellation of their GST registration and subsequent retrospective cancellation from 27 June 2020 – The CGST authorities had revoked the voluntary cancellation without issuing a show cause notice or granting a hearing &ndash...
Taxation Law - Broken Period Interest – Deduction for Securities Held as Stock-in-Trade – Revenue Expenditure – The court held that broken period interest, paid when a bank purchases government securities, should be treated as a revenue expenditure when the securities are held as stock-in-trade. This is because the income from securities is chargeable under Section 28 of the Inco...