Taxation Law – VAT - Tax Classification – Mobile Chargers as Accessories – Differential VAT Rate Justified – Tribunal erred in treating mobile chargers bundled with phones as part of the phone and applying 5% VAT – Held: Mobile chargers are not composite parts of phones but accessories – As per Supreme Court's ruling in State of Punjab vs. Nokia India Pvt. L...
Taxation Law – Income Tax Act - Bogus Purchases – Full Disallowance Justified – Tribunal’s 3% Estimation Set Aside - Tribunal had restricted disallowance on bogus purchases to 3% despite finding that purchases were unverified and books not produced – High Court held: Once Tribunal concluded purchases were bogus, restricting disallowance to 3% based on speculative grey...
Taxation Law – Input Tax Credit – Exemption under Section 7(c) – Prohibition under Section 13(7) – Credit Denied – Dealer claimed entitlement to input tax credit for purchases sold to manufacturer-exporters under Form-E as per exemption notification – Authorities rejected the claim citing Section 13(7) which bars credit where sales are exempt under Section 7(c) ...
Taxation Law - Customs – Delay in Adjudication – Rule 16 of Drawback Rules – Notices Quashed – The petitioners challenged show cause notices issued in 2016 alleging misclassification and excess duty drawback, which remained pending till 2023 – Held: Such inordinate delay without adjudication violates principles of natural justice and renders the notices without jurisd...
Taxation Law - Income Tax Act – Reassessment Proceedings – Allegation of Sham Transactions – Notice Quashed – The Revenue sought to reopen the assessment under Sections 148, 148A(b) and 148A(d) of the Income Tax Act alleging that the petitioner engaged in sham transactions related to JM Balanced Fund to create fictitious capital loss – The Court found that the petitio...
Taxation Law - GST Liability – Deposit of Tax under Wrong Head – Writ Allowed – The petitioner, engaged in renting out commercial property, paid GST to NOIDA, which inadvertently deposited the amount under an incorrect head – Both GST authorities and NOIDA admitted the petitioner’s payment – The Court held that the petitioner could not be penalized for NOIDA&rsq...
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...
