Tribunals and Commissions judgments

ITAT Delhi rules that notice under Section 143(2) of the Income Tax Act is mandatory for all returns filed in response to Section 148 notices, regardless of e-verification status or procedural defects. The tribunal sets a precedent that cognizance of a return by the Assessing Officer triggers the obligation to issue the notice, impacting reassessment proceedings nationwide.

ITAT Pune held that severe medical conditions (leprosy) and national emergencies (COVID-19 lockdown) constitute 'reasonable cause' under Section 253 of the Income Tax Act, justifying condonation of a 3-year delay in filing an appeal. This ruling sets a precedent for taxpayers facing genuine health crises or force majeure events, ensuring procedural justice in tax litigation.

CESTAT Kolkata rules that imposition of penalty under Section 112(b) of the Customs Act requires proof of prior knowledge through circumstantial evidence, not just the appellants' claims of ignorance. The tribunal set aside penalties imposed solely on verbal assertions, emphasizing the need for corroborative evidence in smuggling cases.

ITAT Delhi quashes reassessment proceedings where the Assessing Officer introduced fresh grounds in the 148A(d) order that were absent in the original notice under Section 148A(b). The ruling reinforces that reassessment cannot be a fishing expedition and must strictly comply with statutory procedure to uphold natural justice for taxpayers.

CESTAT Chandigarh ruled that ambiguous CRCL test reports merely stating goods 'have characteristics of base oil' fail to meet the evidentiary threshold for misdeclaration under the Customs Act. The judgment mandates clear, categorical test reports to sustain allegations of misclassification, impacting importers and customs authorities alike.

ITAT Pune rules that CSR contributions to funds like the PM Relief Fund are eligible for deduction under Section 80G of the Income Tax Act, unless specifically barred by statute. The ruling clarifies that the burden of proof lies on the revenue to demonstrate exclusion, impacting corporate tax planning and compliance for CSR expenditures.

ITAT Ahmedabad rules that reassessment notices issued under Section 148 of the Income Tax Act beyond the prescribed limitation period are jurisdictionally defective and void. The decision reinforces strict compliance with procedural timelines, protecting assessees from belated tax scrutiny without valid grounds.

NGT clarifies that its suo motu powers do not extend to bypassing territorial jurisdiction rules. The Tribunal must transfer cases to the appropriate zonal bench where the environmental violation occurred, ensuring compliance with procedural fairness and jurisdictional boundaries.

CESTAT Chandigarh rules that distinct invoicing of transportation and cargo handling services prevents classification as a 'naturally bundled service' under the Finance Act, 1994. The ruling clarifies that service tax liability must be assessed based on actual invoicing practices, not assumed bundling, impacting multimodal logistics providers and tax authorities.

ITAT Ahmedabad rules that warranty provisions calculated through past experience and scientific estimation qualify as ascertained liabilities under Section 115JB, barring their addition to book profits. This clarifies the tax treatment of contingent liabilities for corporate taxpayers, ensuring compliance with accounting standards while preventing double taxation.

ITAT Pune rules that taxing entire bank deposits as unexplained income under Section 69A without allowing set-off for verified purchase expenses violates natural justice. The Tribunal mandates a reasonable profit estimation based on turnover, ensuring fair assessment for taxpayers.

CESTAT Chandigarh clarifies that call center services qualify as 'export of services' under Rule 3(2) of the Export of Service Rules, 2005 if the overseas recipient effectively uses them, entitling service providers to rebate claims. The ruling rejects the Revenue's argument that physical performance in India disqualifies export status, reinforcing the 'effective use' doctrine for cross-border service tax exemptions.

CESTAT Chennai broadens the scope of 'input services' under Cenvat Credit Rules, 2004, allowing service tax credit on Business Support Services and Management Consultant Services. This ruling aligns with judicial precedents, reinforcing that activities integral to business operations qualify for credit, benefiting manufacturers and service providers alike.

CESTAT Chandigarh rules that CENVAT credit is allowable on waste disposal and air pollution survey services as 'input services' under Rule 2(l) of the CENVAT Credit Rules, 2004, if they are integral to the manufacturing process. This decision clarifies the eligibility of environmental compliance services for tax credit, impacting manufacturers availing such services.

ITAT Pune rules that the Commissioner's revisionary powers under Section 263 IT Act cannot be invoked to reassess depreciation on goodwill or warranty provisions already correctly allowed by the Assessing Officer. The ruling underscores that revisionary jurisdiction requires evidence of erroneous or prejudicial orders, not mere re-examination of settled claims.

ITAT Pune rules that unsecured loans from family members under Section 68 of the Income Tax Act are valid if identity, genuineness, and creditworthiness up to ₹2.5 lakh are established through bank statements and affidavits. This sets a precedent for taxpayers to defend cash credits from close relatives without tax additions, provided documentary evidence is furnished.

ITAT Pune condones a 10-month delay in filing an income tax appeal, holding that the assessee’s bona fide reliance on a deceased consultant and lack of deliberate negligence outweigh procedural timelines. The ruling reinforces that substantial justice prevails over technicalities, particularly where delay stems from unforeseen circumstances like the consultant’s death.

CESTAT Hyderabad rules that salary reimbursements to foreign entities for expatriate employees directly employed by an Indian entity are not liable for service tax. The Tribunal held that the employer-employee relationship overrides secondment arrangements, negating the reverse charge mechanism under the Finance Act.

CAT Kolkata reaffirms that review petitions under Order 47 CPC cannot be used to re-agitate the merits of a case or substitute appellate review. Only glaring errors evident on the face of the record justify review, reinforcing procedural finality in service law disputes for retired public servants and government bodies.

CAT Kolkata rules that denial of No Objection Certificate (NOC) to government servants for external job interviews without statutory grounds violates their right to career progression. The tribunal mandates compliance with DoPT guidelines, holding arbitrary refusals as unconstitutional.

The Central Administrative Tribunal, Cuttack, ruled that 25 years of uninterrupted casual service entitles an employee to regularization, as denying it while regularizing similarly situated workers constitutes arbitrary discrimination under Article 14. The judgment reinforces that constitutional equity demands uniform treatment for employees performing identical duties over decades, especially when they are barred by age from seeking other government employment.

CAT Hyderabad holds that suspension of a government servant lapses automatically if charge sheet is not issued within 90 days, reinforcing DOPT guidelines and Ajay Kumar Choudhary precedent.

National Green Tribunal mandates UPPCB to act on complaints against illegal brick kilns, affirming duty to enforce environmental norms without delay.

The National Green Tribunal holds that individuals cannot directly approach it with generalized pollution complaints without first filing formal grievances with the pollution control board.