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...
Income Tax – Transfer of Case – Section 127 of Income Tax Act – Held: Transfer of petitioner’s case was justified as part of centralization of investigation into M/s. Falcon Marine Pvt. Ltd. and its group – Multiple cases were transferred for coordinated investigation – Transfer order upheld [Paras 7-8, 12-13].
Principles of Natural Justice – Requiremen...
Taxation Law – VAT - Taxation of Set-Top Boxes (STBs) – Whether STBs are Goods – Interpretation of Section 2(15) KVAT Act, 2003 – The petitioners challenged the Karnataka Appellate Tribunal’s decision, which held that Set-Top Boxes (STBs) provided to subscribers for a fee constitute a ‘sale’ under Section 2(29)(d) of KVAT Act, 2003 – Petitioners argu...
Service Tax – Lottery Distributors – Principal-Agent vs. Principal-to-Principal Relationship – No Service Tax Liability – The Government of Sikkim entered into agreements with the respondents for the sale of lottery tickets – The agreements provided for the outright sale of tickets, with unsold tickets being returned for destruction to ensure transparency – The ...
Taxation Law - Fixed Place Permanent Establishment (PE) – Business Connection – No Fixed Place PE Established – Test of Disposal Not Satisfied – The Revenue contended that Nokia OY had a Fixed Place PE in India through its subsidiary, NIPL – The Court examined whether a fixed place of business was at the disposal of the assessee for conducting its business – Hel...
Taxation Law - Admissibility of Additional Evidence – Rule 46A of the Income Tax Rules, 1962 – Tribunal's Action Justified – The appellant challenged the ITAT's refusal to admit additional evidence regarding a Will that was not presented during the assessment or CIT(A) stages – Held: Rule 46A conditions were not met, as no application for admitting new evidence was ...
Taxation Law – Withholding Tax under Section 197 Income Tax Act – Assessing Officer must consider previous years' tax treatment – The Court held that under Rule 28AA of the Income Tax Rules, the Assessing Officer (AO) is required to consider the past four years' tax history before issuing a withholding tax certificate – Since in the previous assessment y...