Tribunals and Commissions judgments

CAT Allahabad set aside the removal of a railway employee presumed dead under Section 108 of the Indian Evidence Act, directing payment of family pension, arrears, and reconsideration of compassionate appointment for the son. The ruling underscores that disciplinary actions cannot proceed without first establishing legal presumption of death, ensuring due process for dependents.

ITAT Guwahati rules that failure to disclose third-party evidence gathered during search operations violates principles of natural justice under the Income Tax Act. The ruling reinforces the assessee's right to fair rebuttal, impacting tax assessment procedures nationwide.

The Central Administrative Tribunal ruled that an acquittal by compromise in a mutual dispute involving cross-FIRs cannot lead to automatic disqualification for Delhi Police recruitment. The Screening Committee must conduct a holistic assessment of the candidate's character and the nature of the dispute before rejecting candidature.

NCLAT Chennai reaffirms that High Courts cannot condone delays under Section 421 of the Companies Act, 2013, as the statute vests this power exclusively with the appellate tribunal. The ruling underscores the mandatory exhaustion of statutory remedies and bars writ jurisdiction for procedural lapses, impacting corporate litigants and insolvency practitioners.

ITAT Hyderabad condoned a 419-day delay in filing an income tax appeal, holding that assessees must establish 'sufficient cause' with evidence under Section 249(3) of the Income Tax Act. The tribunal remanded the case to CIT(A) for merits consideration, emphasizing procedural compliance in faceless assessments and the assessee's duty to maintain updated contact details.

CAT Jammu rules that the second Time-Bound Promotion (TBP) under SRO 14/1996 accrues from the first day of the month following nine years from the promotion order date, not the physical joining date. The tribunal sets aside erroneous pay fixation, ensuring notional benefits align with the promotion timeline, impacting service law calculations for government employees.

ITAT Mumbai ruled that reassessment proceedings initiated beyond three years from the relevant assessment year are invalid if approved by an incorrect authority under Section 151(ii) of the Income Tax Act. The tribunal held that only the 'specified authority' as amended in 2021 could grant approval, rendering the notice and subsequent proceedings null and void. This decision reinforces jurisdictional compliance in tax reassessment cases, impacting taxpayers and revenue authorities alike.

CAT Allahabad quashes Rs. 39,000/month recovery from a government employee's salary for unauthorized quarter occupation, ruling that due process and opportunity of hearing are mandatory under FR 45-A. The judgment reinforces that recovery proceedings must comply with principles of natural justice, impacting government accommodation rules and service law.

ITAT Mumbai rules that cash deposits derived from disclosed sales, already offered for taxation, cannot be reclassified as unexplained income under Section 68 of the IT Act. The ruling prevents double taxation and reinforces the principle that only unverified or undisclosed sources can be taxed as unexplained credits.

ITAT Mumbai rules that when an assessee voluntarily discloses a portion of bogus purchases, only 12.5% profit margin-not the entire purchase amount-can be added under Section 69C. The decision aligns with jurisdictional High Court precedent, offering relief to taxpayers facing reassessment for non-genuine expenditures where partial disclosure is made.

CESTAT Hyderabad ruled that where goods are sold on FOR basis with freight included in assessable value and risk retained till delivery, outward transportation up to the buyer's premises qualifies as 'input service' under Rule 2(l) of CENVAT Credit Rules 2004. This clarifies that the 'place of removal' can extend beyond the factory gate for FOR sales, allowing manufacturers to claim CENVAT credit on outward freight charges.

CESTAT Chennai reaffirms that reimbursable expenses collected by service providers do not form part of taxable value under the Service Tax Valuation Rules, provided the 'Pure Agent' conditions are met. The ruling shields businesses from retrospective tax demands on expenses like freight, warehousing, and survey charges, reinforcing the Supreme Court's precedent invalidating Rule 5(1).

Calcutta High Court sets aside a design registration order, ruling that novelty and prior publication under the Designs Act 2000 must be established through strict documentary proof and comparative analysis, not mere visual inspection. The case is remanded for re-adjudication, emphasizing the need for rigorous evidentiary standards in design cancellation proceedings.

ITAT Mumbai rules that while disallowance of commission expenditure under Section 37(1) of the IT Act is valid on merits, the same amount cannot be taxed again in a subsequent assessment year, reinforcing the bar on double taxation. This holding protects taxpayers from punitive reassessments where income was already disclosed and taxed.

ITAT Mumbai rules that taxpayers must be provided full export-import details from DGFT before any addition to income can be sustained. The tribunal set aside an addition of ₹65.54 lakh, emphasizing procedural fairness in income tax assessments where unreconciled data is relied upon.

ITAT Ahmedabad rules that capital introduced by partners cannot be treated as unexplained income under Section 68 of the Income Tax Act if the partner's identity and creditworthiness are established. The decision reinforces that tax authorities must accept documented partner contributions unless material discrepancies exist, offering relief to partnership firms under tax scrutiny.

ITAT Delhi rules that gifts from NRI relatives cannot be taxed as unexplained income under Section 69A if the assessee proves the source, identity, and bank trail. The ruling clarifies that mere suspicion without evidence of cash circulation is insufficient for addition, protecting taxpayers from arbitrary tax demands on legitimate family transfers.

ITAT Delhi rules that cash deposits during demonetization, sourced from prior bank withdrawals (e.g., salary income), cannot be taxed as unexplained income under Section 69A without evidence of diversion or unaccounted utilization. The ruling shifts the burden of proof to the tax authorities to establish diversion, reinforcing taxpayer rights in banking transactions.

CESTAT Chennai rules that abatement for trade discounts in jewellery trade can be granted based on consolidated sales data and Chartered Accountant certificates, without requiring transaction-wise correlation. This eases compliance burdens for manufacturers adopting provisional assessments under Rule 7 of Central Excise Rules, particularly in industries with fluctuating prices and indirect sales channels.

CESTAT Mumbai rules that placement fees charged by educational institutions to students-not employers-do not constitute 'manpower recruitment or supply agency service' under Section 65(105)(k) of the Finance Act, 1994. The decision clarifies that service tax liability arises only when institutions act as intermediaries for employers, shielding academic bodies from retrospective tax demands.

ITAT Delhi ruled that a limited risk service provider is entitled to cost-plus remuneration, rejecting transfer pricing adjustments where benchmarking was inconsistent and DRP directions were ignored. The decision reinforces the consistency principle in transfer pricing, impacting multinational enterprises and tax compliance strategies.

NCLAT quashes CCI's penalty order for violating principles of natural justice by imposing Rs. 301.61 crore penalty without notifying the appellant of its intent to differ from the Director General's report. The ruling reinforces that regulatory bodies must afford parties a fair hearing before departing from investigative findings, impacting all competition law proceedings.

CESTAT Chennai rules that visa facilitation services provided directly to travelers do not qualify as 'business auxiliary services' under Section 65(19) of the Finance Act, 1994, exempting travel agencies from service tax liability. The ruling clarifies the scope of taxable services, impacting travel agencies and tax practitioners dealing with similar disputes.

NGT Central Zone sets aside SEIAA's arbitrary rejection of environmental clearance for a dolomite mine, ruling that statutory authorities must either follow expert committee recommendations or provide detailed reasons for dissent. The judgment reinforces natural justice principles in environmental governance, impacting all project proponents seeking environmental clearance under the EIA Notification 2006.