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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Contract Law – Tender Process – Uniform Bidding – GST Rates – High Court directed the appellant to clarify GST rates and HSN codes in the tender document to ensure fair competition – Supreme Court held that no statutory or public duty exists requiring the appellants to indicate the HSN code – Bidder's responsibility to quote correct GST rate [Paras 1-48].
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Service Tax – Sale of Software – The Supreme Court held that once a lumpsum has been charged for the sale of a CD containing antivirus software and sales tax has been paid, the Department cannot levy service tax on the entire sale consideration on the ground that updates are provided – The Court emphasized that the transaction in question amounted to the transfer of the right to ...