Income Tax Law – Section 33AC and Section 80-I Interaction – Interpretation of Income Tax Act Provisions in Shipping Industry Context – Deduction Computation Clarified – The High Court of Bombay examined whether the deduction under Section 33AC of the Income Tax Act, 1961, for a reserve created by a shipping company to acquire a new ship, should be subtracted from the profi...
Taxation Law - Goods and Services Tax – Maintainability of Writ Petition against Show Cause Notice – Limited Jurisdiction – A writ petition challenging a Show Cause Notice under Section 74 of the CGST/WBGST Act is not maintainable unless the notice is wholly without jurisdiction or ex-facie perverse. Procedural grievances, such as alleged non-consideration of replies, can be addr...
Consumer Law – Deficiency in Services and Negligence – Appeal regarding compensation for a fatal accident involving tourists organized by travel operators – District Commission awarded Rs. 50 lakhs – Appellants sought enhanced compensation – Delhi State Consumer Disputes Redressal Commission held that the District Commission failed to adequately compensate for mental ...
CENVAT Credit – Definition of Capital Goods – Whether Mobile Towers and Prefabricated Buildings (PFBs) Qualify – Bombay vs. Delhi High Court Divergence – Reconciliation by Supreme Court – The Bombay High Court held that mobile towers and PFBs are immovable property and therefore ineligible for CENVAT credit under Rule 2(a)(A) or Rule 2(k) – The Delhi High Court ...
Taxation Law - Goods and Services Tax (GST) – Refund Restrictions – Rule 96(10) of CGST Rules – Ultra Vires Declaration – Refund of IGST – Rule 96(10) of CGST Rules – Ultra Vires Section 16 of the IGST Act – The court held that Rule 96(10), which imposed restrictions on exporters claiming refunds of IGST when certain benefits from government notifications ...
Taxation Law - Luxury Tax Assessment – Transfer of Part of Property – Tax Evasion – The petitioner sought relief from luxury tax after transferring the first floor of his residential building to his wife, thereby reducing the area under his ownership below the taxable limit under Section 5A of the Kerala Building Tax Act, 1975 – Held: Such a transfer, if accepted, would cre...
Income Tax – Reassessment Notice – Legality of Sanction: Petitioner challenged the reassessment notice issued under Section 148 and the order under Section 148A(d) of the Income Tax Act for the assessment year 2016-17. Contention was based on improper sanction obtained under Section 151(i) instead of 151(ii) for proceedings beyond three years from the relevant assessment year – C...
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 ...