The respondent, a company incorporated in the UAE, provided remittance services and established liaison offices in India. These offices were primarily engaged in downloading remittance information and printing cheques/drafts for delivery to beneficiaries in India based on instructions from NRI remitters. The RBI granted permission for these offices to engage in specific activities.
Is...
Facts:
The case involves a challenge to the constitutional validity of Section 43B(f) of the Income Tax Act, 1961, as inserted by the Finance Act, 2001. The provision pertains to the deduction for liability under the leave encashment scheme.
Issues:
Whether the newly inserted Clause (f) to Section 43B of the Income Tax Act, 1961, is constitutionally valid?
Whether the absence ...
FACTS:
Yum! Restaurants (Marketing) Private Limited (YRMPL), a fully-owned subsidiary of Yum! Restaurants (India) Private Limited (YRIPL), was incorporated to undertake Advertising, Marketing, and Promotion (AMP) activities for YRIPL and its franchisees. YRMPL received contributions from both members (franchisees) and non-members (Pepsi Foods Ltd.). YRMPL claimed tax exemption based on the doct...
Facts:
The case involves the respondent, M/S. Bombay Machinery Store, and the issue revolves around the movement of goods, delivery, and taxation under the Central Sales Tax Act, 1956. Goods were delivered to a carrier for transmission, and circulars by the Tax Administration of the State imposed a timeframe for delivery to determine the applicability of exemptions.
Issues:
W...
Sales Tax – Applicability on Bonded Warehouses – Appellants argued that sales of imported goods stored in bonded warehouses and sold to foreign-bound ships should not be subject to sales tax as they are in the course of import – Supreme Court held that such sales, occurring after goods are unloaded and kept in bonded warehouses on West Bengal's landmass, are not in the course...
Taxation Law - Bad Debts Write-Off – Section 36(1)(vii) vs. Provision for Bad Debts – Section 36(1)(viia) – Separate and Independent Deductions Allowed – The appellant claimed deductions under both Section 36(1)(vii) for actual bad debts written off and Section 36(1)(viia) for provisions for bad debts, arguing that both provisions are independent – Court held: The ded...
Insolvency Proceedings – Effect of Resolution Plan on Statutory Dues – The petitioner company underwent insolvency proceedings under the Insolvency and Bankruptcy Code, and a resolution plan was approved by the NCLT, Mumbai Bench – The plan provided for payment of all dues of creditors, including state dues – The petitioner contended that the resolution plan extinguished al...
Central Excise – Determination of Valuation – Issue concerning the applicability of Section 4 or Section 4A of the Central Excise Act for the goods sold by the respondent – Tribunal’s decision set aside by the Supreme Court – Section 4A applies when there is a statutory requirement to declare retail sale price on the package – HDPE bags sold by the respondent to...
Income Tax Law – Reopening of Assessment – Sections 147 and 148 of the Income Tax Act, 1961 – Whether reopening based on "change of opinion" without new tangible material is valid – Held, reopening was invalid due to lack of new material. The Court referred to CIT v. Kelvinator of India Ltd., noting that mere change of opinion cannot justify reopening an assessmen...
Income Tax Law – Hybrid System of Accounting – Methodology Adopted by the Company – Principal Commissioner of Income Tax, Shillong challenged the company’s use of the hybrid system of accounting, arguing it was in contravention of Section 145 of the Income Tax Act, 1961 – Tribunal had quashed the revisionary proceedings under Section 263, considering them erroneous an...