GST Registration Cancellation – Challenge against retrospective cancellation – Petitioner contests order dated 07.10.2022 for cancellation of GST registration from 02.07.2017 and the Show Cause Notice dated 23.09.2022 – Registration cancellation without proper justification or notice for retrospective effect deemed inappropriate. [Para 1, 5-7] GST Compliance – ...
Taxation – Interest on Delayed Refunds – Section 56 of CGST Act – Supreme Court held that interest at the rate of 6% per annum applies unless covered by the proviso to Section 56 – Proviso applies where refund arises from an order passed by adjudicating authority or court – In present case, no such order existed, hence 6% interest rate applies – High C...
Tax Law – Electricity Duty – Exemption Provisions – The Supreme Court held that charitable educational institutions are not exempt from electricity duty under the Maharashtra Electricity Duty Act, 2016 – The omission of Section 3(2)(iiia) from the 1958 Act in the 2016 Act indicates the legislative intent to exclude such exemptions – High Court's interpretation lea...
Service Tax - Renting of Immovable Property - Exemption - Market Committees under Rajasthan Agricultural Produce Markets Act, 1961 - Appellants claimed exemption under Circular No. 89/7/2006 - Supreme Court held that the activity of renting/leasing shops/lands/platforms by Market Committees is not a mandatory statutory duty under Section 9 of the Act - Therefore, not exempt from service tax as per...
Motor Vehicles - Taxation - Financier-in-Possession - U.P. Motor Vehicles Taxation Act, 1997 - Financier took possession of vehicle upon default in loan payment - Liability to pay tax - Supreme Court upheld High Court's decision - Financier-in-possession considered "owner" under Section 2(h) of Act 1997 and Section 2(30) of Act 1988 - Tax payable even if vehicle not used, unless exem...
Income Tax – Delay in Filing Form 10 – Condonation of Delay – Petitioner sought quashing of order by Commissioner of Income Tax (Exemption) and for directions to accept Form No.10 with condoned delay. Amendments in Income Tax Act and rules leading to inadvertent delay acknowledged. Comparison with similar condonation in AY 2017-18 and AY 2018-19 highlighted. [Para 1, 2, 3] &nb...
Income Tax – Deduction under Section 37(1) – Pharmaceutical companies' gifting freebies to doctors is "prohibited by law" and cannot be claimed as a deduction under Section 37(1) – Expenditure incurred by pharmaceutical companies for such freebies is inadmissible under the Income Tax Act – Court emphasizes the principle that no entity should benefit from an ac...
Taxation - Income Tax on Perquisites - Challenging Sections 17(2)(viii) and Rule 3(7)(i) of Income Tax Act and Rules regarding taxability of fringe benefits provided as concessional loans to bank employees - Bench upholds constitutionality of Section 17(2)(viii) and Rule 3(7)(i), dismissing the appeal - Held that the legislative intent was clear, and the rules did not constitute excessive delegati...
Anticipatory Bail in Economic Offenses – Fraudulent Input Tax Credit Claim – Involvement of Chirag Goel and Chaman Goel in a GST Input Tax Credit fraud of Rs.200 crores – Accused obtained anticipatory bail which was challenged by the Directorate General of GST Intelligence (DGGI) due to the serious nature of the economic offense and the attempt by Chaman Goel to leave the country...
Mutual Funds as Investment, Not Business – The Tribunal and CIT(A) held that transactions in mutual funds were investments, not stock-in-trade, based on factors like quantum, frequency, holding period, purpose, and disclosure in financial records. Gain on mutual fund redemption deemed as capital gain, not business income. [Paras 11-15] Capital Contribution and Deemed Dividend &n...
