Income Tax – Leave Travel Concession (LTC) – TDS – The Supreme Court upheld the judgment of the Delhi High Court, affirming that the appellant, State Bank of India (SBI), was in default for not deducting tax at source on the LTC payments made to its employees. The Court ruled that LTC claims involving foreign travel are not exempt under Section 10(5) of the Income Tax Act, 1961. ...
Property Tax – Capital Value System – Amendments to MMC Act, 1888 – High Court upheld amendments but struck down Rules 20, 21, and 22 of 2010 and 2015 Capital Value Rules – Supreme Court reinstated these rules, holding them intra vires the MMC Act – Emphasized legislative competence and rational basis for amendments aimed at modernizing property tax assessment –...
Insolvency Law – Priority of Tax Claims – The State is a secured creditor under the GVAT Act – Section 48 of the GVAT Act provides for a first charge on the property of the dealer for tax dues – Supreme Court held that Section 48 is not contrary to or inconsistent with Section 53 of the IBC – Section 53(1)(b)(ii) of the IBC includes debts owed to a secured creditor, w...
Tax Deduction at Source (TDS) – Commission and Brokerage – Supplementary Commission – Travel agents earning amounts over the Net Fare set by airlines – Section 194H of IT Act mandates TDS on such amounts if principal-agent relationship exists – Supplementary Commission to be included for TDS deduction [Paras 1-19].
Principal-Agent Relationship – Ana...
Income Tax – Deduction under Section 80-IB – Eligibility – Assessee manufacturing polyurethane foam used as car seats – Claimed deduction under Section 80-IB – Assessing Officer, CIT(A), and High Court denied deduction, classifying product as polyurethane foam under Eleventh Schedule – Tribunal's favorable ruling for assessee overturned – Supreme Court...
Income Tax – Capital Gains – Revaluation of Assets – The respondent, a partnership firm, revalued its assets and credited the revalued amount to the partners' capital accounts – The Assessing Officer (AO) considered this a transfer of capital assets and made additions towards short-term capital gains under Section 45(4) of the Income Tax Act – Supreme Court held t...
Promissory Estoppel – Doctrine of estoppel will not be applied against the State in its governmental public or sovereign capacity – Exception where it is necessary to prevent fraud or manifest injustice – Section 174(2)(c) of the CGST Act rescinds earlier tax exemptions – Estoppel cannot operate against legislative functions – Union not bound by 2003 O.M. due to statu...
Constitutional Law – Writ Jurisdiction – High Court’s jurisdiction under Article 226 of the Constitution – Statutory remedy of appeal under Section 46(1) of the MP VAT Act, 2002 – High Court entertained a writ petition against the Assessment Order denying Input rebate despite availability of statutory appeal – Supreme Court held High Court’s decision unsus...
Wealth Tax Act – Valuation of Shares – Respondent-assessee gifted shares under a lock-in period – Shares listed and quoted on stock exchanges but restricted from trading – Tribunal/Court must determine if such shares are "quoted shares" – Supreme Court affirmed shares under lock-in are not "quoted shares" due to lack of regular market transactions ...
Service Tax – Consulting Engineer vs. Works Contract – Services such as erection, installation, and commissioning of goods at customer sites cannot be classified as consulting engineer services – Tribunal correctly held that such services fall under works contract and are not liable for service tax as consulting engineering – Revenue's appeal dismissed [Paras 2-4].
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