Goods and Services Tax – Cancellation of Registration – Non-filing of Returns – GST registration of petitioner cancelled under Section 29(2)(c) of the CGST Act due to failure to file returns for six months – Petitioners contended they were unaware of the online procedure and could not respond to the show cause notice – Registration cancelled ex parte without assigning...
Taxation Law - Income Tax – Residence of Hindu Undivided Family – Section 4A(b) of the Income Tax Act – Assessee Held Resident – The appellant, karta of a Hindu Undivided Family domiciled in Ceylon, claimed that the control and management of the family affairs was wholly outside British India – Despite permanent residence in Ceylon, the appellant frequently visited Br...
Taxation Law - Bad Debt – Section 10(2)(xi), Income-tax Act – Debt of Earlier Firm Taken Over into Assessee’s Money-Lending Business – Deduction Allowed – On dissolution/closing of a prior partnership, assessee took his half share in a decree debt (₹8,197), opened debtor’s account in his own HUF money-lending books, credited later recoveries, and wrote off ₹...
Reassessment – Section 34 of the Income-tax Act – Notice to HUF After Partition – Valid – Escaped income of HUF for year 1939-40 sought to be assessed in 1944 – Though partition order under Section 25A(1) had been passed, ITO issued notice in name of HUF and served on karta – Held: assessment could proceed as if family still existed; no need to issue notice to e...
Taxation – Business expenditure – Non-resident – Lull in business vs cessation – Assessee, a French drilling company with ONGC contract till 1993, maintained continuous correspondences and bid activity with ONGC during 1993–1998, ultimately securing a fresh contract in October 1998 (formalised January 1999) – Held: Such sustained efforts show intention to carry ...
Tax Exemption – Meaning of ‘Investment’ – Small Scale Industrial Unit – Term “investment” under Notification No. 1428-F.T. dated 26.05.1994 and Rule 41 of West Bengal Sales Tax Rules, 1995 interpreted as actual capital outlay on plant and machinery – Depreciation not deductible in computing investment – Expression “investment” denot...
Constitutional Law – Legislative Competence – Entry 49 List II – “Taxes on Lands and Buildings” – Scope – Challenge to U.P. Large Land Holdings Tax Act, 1957 on ground that “lands” in Entry 49 does not include agricultural land – Held: Word “lands” in Entry 49 is of wide amplitude and includes agricultural land – Constit...
Income Tax – Accrual of Income – Mercantile System – Reduction of Commission – Assessee-firm, acting as managing agents of two shipping companies, originally entitled to 10% commission on freight, agreed during the accounting year to reduce the rate to 2½% – Larger commission shown in books but reduced by agreement before close of year – Held: Mere book e...
Taxation Law - Section 25(4) Income Tax Act - Relief – Date of “Succession in such capacity” – Executors carrying on business after death pending sale – Held: Succession occurs on death, not on later sale – The testator’s shipping agency business was directed by will to be continued by executors as a going concern for up to one year pending sale – He...
Income Tax – Section 43B – Deduction Disallowed – Bottling Fee – Actual Payment Required – Held that furnishing of bank guarantee does not amount to “actual payment” under Section 43B – Requirement is for actual outflow of funds to the exchequer – Bottling fees are not tax, duty, cess or fee but consideration for exclusive privilege under excis...