Income Tax – Reassessment Proceedings – Validity of Reopening Concluded Assessments – Whether reassessment can be initiated on the same grounds after a concluded assessment – Held, the initiation of reassessment proceedings for the same assessment year based on identical facts and figures is invalid – The Ashish Agarwal judgment did not mandate reopening of completed ...
Income Tax – Anonymous Donations – Section 115BBC – Applicability to Charitable and Religious Trusts – Appeals Dismissed – The appellant contended that the anonymous donations received by the Shree Sai Baba Sansthan Trust were taxable under Section 115BBC(1) since the trust was registered under Section 80G as a charitable institution – The Court held that the tr...
Service Tax – Exemption for Sub-Contractors – Assessment Order Challenged – Petitioner engaged in execution of works contracts as a sub-contractor argued that the services rendered were exempt from service tax. The High Court noted that the petitioner failed to produce conclusive evidence supporting the claim of exemption and also questioned the authenticity of the agreement pres...
Income Tax Law – Revision of Returns – Limitation – Appellant filed revised returns multiple times for the assessment year 1989-90, the last of which was submitted on 29th October 1991 – Assessing Officer refused to consider the return, citing Section 139(5) of the Income Tax Act, which barred the revised return due to the lapse of the one-year time limit – Appeals we...
Taxation Law - Input Tax Credit – Section 17(5)(c) & (d) CGST Act – Exclusion of Input Tax Credit (ITC) – The appellants challenged the constitutional validity of Section 17(5)(c) and (d) of the CGST Act which restricts ITC on goods and services used for the construction of immovable property – The respondents contended that such exclusion is arbitrary, particularly whe...
Taxation Law – Power to Levy Tax – Quasi-Judicial Function – The power to levy tax is a sovereign function, but its exercise must conform to constitutional provisions like Article 265, which mandates that taxes can only be levied or collected by law – Article 265 distinguishes between “levy” and “collection,” where levy includes both imposition and a...
Taxation Law - Reopening of Proceedings – Section 74 of the CGST Act – Second Show Cause Notice Quashed – The petitioner challenged the issuance of a second Show Cause Notice under Section 74 of the CGST Act after the earlier proceedings under Section 73 were concluded in favor of the petitioner. Held: Once proceedings under Section 73 are concluded, reopening under Section 74 is...
Taxation Law - Income Tax – Assessment of Amalgamated Entity – The appellant, Religare Enterprises Ltd. (successor of Religare Securities Ltd.), challenged assessment and reassessment orders issued in the name of the amalgamated entity, Religare Securities Ltd., which had ceased to exist post-amalgamation – The Court found that despite intimation of the amalgamation, the notices ...
Taxation Law - Entry Tax – Use or Consumption – Refining of Crude Oil – Petition Dismissed – Petitioners, including Ruchi Soya Industries Ltd. (now known as Patanjali Foods Ltd.), challenged the imposition of Entry Tax on crude soya oil brought into Madhya Pradesh for refining, arguing that the refining process does not amount to manufacture, and no new product emerged &nda...
Taxation Law – Input Tax Credit – Blocking of ITC – Rule 86A of CGST Rules, 2017 – Petitioners (taxpayers) challenged orders issued by the Commissioner of CGST/DGST under Rule 86A, blocking Input Tax Credit (ITC) in their Electronic Credit Ledgers (ECL), resulting in a negative balance – Petitioners argued that Rule 86A does not allow blocking ITC beyond what is avail...