Income Tax – Re-opening of Assessment – High Court quashes notice for re-opening assessment due to lack of tangible material – Supreme Court finds that objective material existed justifying re-opening based on search proceedings, seized documents, and statements under Section 132(4) – Assessment originally accepted under Section 143(1) without scrutiny, thus not shielding f...
Service Tax – Banking and Financial Services – Interchange Fee – Whether the interchange fee received by the issuing bank (Citi Bank) from the acquiring bank in credit card transactions is subject to service tax – Tribunal relied on the decision in M/s ABN Amro Bank NV v. Commissioner of Central Excise, Customs and Service Tax, Noida, holding interchange fee not liable to s...
Income Tax – Recalling of Earlier Order – Section 254(2) of Income Tax Act – Powers under Section 254(2) limited to rectifying mistakes apparent from record – ITAT’s jurisdiction does not extend to re-hearing appeals on merits – High Court’s affirmation of ITAT’s recalling order erroneous – Detailed submissions on merits by parties does not con...
Tax Law – Pre-deposit Requirement – Appellant deposited amounts under protest before the assessment order – Contended that these should be adjusted against the pre-deposit required under Section 26(6A) of the MVAT Act for filing an appeal – Supreme Court held that the plain language of the statute requires a deposit of 10% of the disputed tax liability in addition to any am...
Taxation – Exemption Notification – Conditions for Eligibility – The Supreme Court held that while exemption notifications should be liberally construed, the beneficiary must fall within the ambit of the exemption and fulfill the conditions thereof. If any conditions laid down in the notification are not fulfilled, the application of the notification does not arise. The Court emp...
Taxation – Nature and Character – Levy of water and sewerage taxes under Section 52 of the UP Water Supply and Sewerage Act – Levy labeled as water tax and sewerage tax – Supreme Court held that the nomenclature does not determine the nature of the levy – Taxes on lands and buildings within the meaning of Entry 49 List II of the Seventh Schedule – Taxes imposed ...
Income Tax Act – Section 263 – Period of Limitation for Revisional Orders – The Supreme Court clarifies that under Section 263(2) of the Income Tax Act, the period of limitation for making an order is two years from the end of the financial year in which the order sought to be revised was passed. The term "made" is used in Section 263(2), not "received" or &qu...
Income Tax – Gains from Foreign Exchange Fluctuations – Non-inclusion under Section 80HHC Deduction – Gains from foreign exchange fluctuations in EEFC account not considered as income derived from export business – EEFC account gains not directly related to the business of export of goods, hence cannot be included in deduction under Section 80HHC of Income Tax Act. [Paras 2...
Income Tax Appeal – Challenge to Settlement Commission's decision – High Court remanded matter to Settlement Commission for reconsideration of immunity from penalty and prosecution – Appellant aggrieved by High Court's decision – Appeal filed. [Para 2.11]
Settlement Commission – Jurisdiction to entertain application – Preliminary objection r...
Tax Dispute – Classification of service tax – Appeals arising from service tax demands – Four Show Cause Notices issued – Adjudication challenged before Customs, Excise and Service Tax Appellate Tribunal (CESTAT) – CESTAT passes remand order – Commissioner re-adjudicates based on remand order – Classification, liability, and valuation issues considered &nd...