Friday, 13 March 2015

Bombay High Court felt the need for performance evaluation of members of Tribunal; sets aside order

Excise & Customs : Where Tribunal neither followed, nor distinguished and not even considered its earlier order passed in respect of same/similar process, matter was remanded back to Tribunal for consideration afresh


Assessee was liable to penalty as it availed of credit on purchases made from a fictitious firm

Excise & Customs : Where it was found that assessee-dealer had made purchases from a fictitious firm and had availed/passed-on credit, assessee-dealer was liable to penalty under CENVAT credit Rules


Income unearthed during search isn't undisclosed income of block period if it is duly reflected in b

IT: Where all items of cash credits alleged against assessees were reflected in books of account, an exercise under section 158BB by Assessing Officer was not justified


Co. engaged in advisory and software support services isn't comparable to High end KPO service provi

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering advisory and software support services to its AE, in view of fact that some of comparables selected were improper on account of turnover, brand value and functional difference as they rendered high end KPO services, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh


Tribunal has power to decide upon provision applicable for levying penalty even if not called upon t

Service Tax : Even if department has not appealed against adjudication/appellate orders levying penalty under section 78, then also, on assessee's appeal against penalty under section 78, Tribunal has power to decide appropriate section applicable for levy of penalty and therefore, levy of penalty under section 76 by Tribunal was valid


RBI eases account opening norms for proprietary concerns

BANKING : Know Your Customer (KYC) Guidelines - Accounts of Proprietary Concerns


Penalty reduced as assessee had paid tax instantly on demand after wrongly availing of input tax cre

GST & VAT: Tamil Nadu VAT - Where assessee was carrying on business in food and drinks and it wrongly availed input tax credit on purchase of said items, penalty was rightly levied at 50 per cent under section 27(4)(i)


Arbitrators have to give reasons for arbitral award even if arbitral proceedings are initiated under

Arbitration Act: Where arbitrator's award was unsupported by any reason, same was to be set aside even though arbitral proceedings were initiated under old Act, i.e., Arbitration Act, 1940


ITAT couldn't pass order without considering objections of assessee relating to non-compliance of se

IT/ILT : Order of remand based by Tribunal without considering assessee's objection relating to non-compliance of section 144C by authorities below was to be set aside with a direction for de novo consideration


No new FDI can be brought in construction sector if minimum capitalization isn't achieved within 6 m

FDI/FEMA/ILT : Consolidated FDI Policy Circular 2014 - Review of Foreign Direct Investment (FDI) Policy on Construction Development Sector - Amendment in Paragraph 6.2.11 – Clarification on Press Note No. 10 (2014 Series), Dated 3-12-2014


No provisional attachment of wife's property to recover VAT dues from her husband

CST & VAT : Gujarat VAT - Where neither owner nor purchaser was dealer, attachment of property on ground that husband of owner had tax arrears, was unjustified


Recovery can't be initiated during pendency of adjudication

Service Tax : Prima facie, when demand of tax is yet to be adjudicated, it cannot be said as tax payable, for which recovery powers of section 87 may be available


Winding up petition wasn't maintainable when debt was seriously disputed by respondent-Co.

CL: Winding up petition wasn't maintainable when debt was seriously disputed by respondent-Company


Bajra seeds after processing with poisonous chemicals became new article; eligible activity for Sec.

IT: Where bajra seeds after treatment with poisonous chemicals got rendered unfit for human consumption and, was a different article or thing than raw bajra fit for human consumption, said activity would be an activity of manufacturing


On finalization of provisional assessment demand to be made after adjusting excess duty against shor

Excise & Customs : While finalizing a provisional assessment, excess payment of duty for some period must be adjusted against short payment for different period and only net duty payable must be demanded


No surcharge on works contract when assessee had paid exemption fee to avail of exemption on works c

CST & VAT : Rajasthan VAT - Where State Government vide notification dated 30-4-1993 issued under Rajasthan Sales Tax Act, 1954 exempted from tax transfer of property in goods involved in execution of works contract on condition that contractor undertakes to pay exemption fee at rate of 1 per cent on total value of contract and assessee paid such amount to avail exemption, Assessing Authority was wrong in holding that assessee was also liable to pay surcharge thereon under section 13 of Rajastha


House constructed by builder on behalf of assessee has to be considered for granting sec. 54F relief

IT: Investment of consideration received on transfer, in a flat constructed by builder within 3 years would amount to construction of a residential house for purpose of claiming deduction under section 54F


Sum paid to consultant-doctor without any stipulation of working hours or leave would attract sec. 1

IT: Where from contracts, no stipulations regarding working hours, academic leave or attachments had been found which would reveal that consultant doctors were employees of assessee, Tribunal was right in holding that there existed no relationship of employer and employee between assessee and consultant doctors and accordingly, TDS under section 194J would be applicable on doctors remuneration and not under section 192