Topic
Taxation Law in India governs the levy and collection of taxes such as GST, excise, and service tax under central and state statutes, with frequent judicial interpretations shaping compliance and liability.
Allahabad HC rules Housey/Tambola played exclusively by members in a private club does not constitute taxable 'entertainment' under U.P. Act, setting aside Rs. 6.91 lakh demand. Ruling clarifies scope of entertainment tax for non-profit member-based activities.
ITAT Jaipur rules that penalties in search cases must be levied under Section 271AAB of the Income Tax Act, 1961, not Section 271(1)(c). The ruling clarifies the correct penalty framework for undisclosed income detected during search assessments, impacting taxpayers facing similar proceedings.
Karnataka High Court quashed a 12% Forest Development Tax (FDT) demand on timber purchases, holding that such demands cannot proceed until final resolution of pending appeals challenging the tax's constitutional validity. The interim order protects taxpayers from coercive recovery while the legal challenge remains unresolved.
ITAT Jaipur quashed an assessment under Section 153C of the Income Tax Act, 1961, after finding the Assessing Officer failed to apply mind while recording satisfaction. The ruling underscores strict compliance with statutory prerequisites for invoking Section 153C, impacting pending and future assessments based on similar jurisdictional flaws.
ITAT Jaipur quashes Section 153C assessment for AY 2014-15, ruling seized agreement dated 2012 irrelevant as it pertained to a prior year. The ruling clarifies jurisdictional limits on incriminating material under Section 153C, impacting future assessments based on third-party searches.
The ITAT Jaipur bench quashed penalty under Section 271(1)(c) after the assessee settled quantum dispute under the Direct Tax Vivad Se Vishwas Scheme 2020, holding that Section 5 grants immunity from penalty post-scheme settlement. This ruling clarifies that penalty proceedings cannot survive once a dispute is resolved under the DTVSV Act.
Supreme Court set aside a Rajasthan High Court order quashing a Section 148 reassessment notice, restoring the Income Tax Appellate Tribunal Jaipur’s jurisdiction to re-examine the case under the Faceless Assessment Scheme. The ruling clarifies that appellate jurisdiction under the Act remains distinct from writ jurisdiction, impacting reassessment proceedings pending before ITAT.
Kolkata ITAT quashed reassessment notices under Section 148A for failing to provide the mandatory 7-day compliance period and unsigned notices, reinforcing strict procedural safeguards in tax reassessment. The ruling underscores the importance of adherence to statutory timelines for notices issued under the Income Tax Act, impacting future reassessment proceedings.
The ITAT Delhi has ruled that returning excess CSR funds to the original donor does not violate Section 13(1)(c)(ii) of the Income Tax Act, as it lacks the element of benefit to a prohibited person. This clarifies that charitable trusts can return unutilized corporate donations without forfeiting their tax exemption under Section 11, providing critical relief to NGOs managing CSR compliance.
Kerala High Court holds that work contracts executed after the GST rollout (1.7.2017) cannot be subjected to both Kerala Value Added Tax (KVAT) and GST, preventing double taxation. The ruling mandates re-examination of disputed bill calculations for government contractors, ensuring compliance with the single-tax regime under GST.
CESTAT Bangalore rules that cenvat credit eligibility depends on classification under Customs Tariff at import, not functional use. Aluminium panels classified under CTH 7610 9090 ineligible for credit.
ITAT Delhi clarifies that Section 56(2)(viib) of the Income Tax Act operates on a receipt basis, not issuance basis. The tribunal upholds the Discounted Cash Flow (DCF) valuation method but limits tax additions to the excess premium over fair market value (FMV), providing relief to companies issuing shares post-2012-13.
CESTAT has ruled that taxpayers could lawfully utilize Cenvat credit to discharge service tax liability under the reverse charge mechanism for imported services prior to July 2012, overturning departmental demands and clarifying a critical ambiguity in pre-GST compliance. This decision protects businesses that relied on existing rules and sets a precedent for retrospective interpretation of credit utilization in indirect tax regimes.
CESTAT Chandigarh ruled that municipal corporations do not qualify as 'persons' under Section 65(105)(zzzm) of the Finance Act, 1994, for the period before 01.07.2012, exempting them from service tax on advertisement space sales. The decision sets a precedent for statutory interpretation of taxable entities, impacting revenue disputes involving constitutional bodies.
CESTAT Chandigarh has ruled that services related to railway infrastructure qualify for exemption under Notification 25/2012 regardless of whether the project serves public or private interests, clarifying that the exemption is not contingent on ownership or end-use. This decision shields project consultants and agents from service tax liability in railway development, offering critical relief to private contractors and public-sector partners alike.