Friday, 16 October 2015

Dept. must specify default committed by assessee in SCN without demand is invalid

Excise & Customs : Mere passing reference to a section in show-cause notice, without any supporting omissions or commissions by assessee supporting invocation of said section, cannot validate demand under said section

Directors can't approach different High Courts to quash FIR for fraud and cheating filed at Delhi

CL: Where allegations of cheating and fraud had been levelled against partners of company, regarding which FIR had been registered in Delhi, Delhi Court had summoned accused and Magistrate at Delhi had taken cognizance of matter, petitioners could not have approached a different High Court for quashing of complaint

Penalty levied on financer as he failed to offer explanation for accepting or repaying cash loans ab

IT: Where assessee accepted and repaid loan exceeding Rs. 20,000 in cash from/to money lender repeatedly, even when transaction took place in a major city and offered no explanation regarding urgency or compulsion, levy of penalty was in consonance with law

Hexidine and Hexigel would fall in category of ‘drugs & medicines’ under West Bengal Sales Tax Act

CST & VAT : West Bengal VAT - Products 'Hexidine' and 'Hexigel' were drugs and medicines falling under Entry No. 24(iv) of Part A of Schedule IV of West Bengal Sales Tax Act, 1994

No incurrence of exp. on services provided by assessee proved that it had outsourced services to AE;

IT/ILT: Where assessee was not incurring any expenditure in respect of services claimed to be received from AE, assessee's claim that it was outsourcing services was acceptable and no transfer pricing adjustment was called for

Activity of distribution of lottery isn't liable to service-tax, rules Sikkim High Court

Service Tax: Activity of buying and selling of lottery is not service. Department cannot demand service tax on said activity on basis of Rule 6(7C) of Service Tax Rules since it is an optional scheme of payment of tax and does not create a charge of service tax

ITAT apportions exp. on living Germplasm and technical know-how between capital and revenue exp.

IT : Where under a long term licensing agreement, assessee acquired genetic material for cereals, seeds, etc. i.e., organic Germplasm as also technical know-how in bio-technology field along with right to future development and improvement and such technology would benefit assessee even after expiry of agreement period and even assessee could sell germplasm, a part of expenditure paid by assessee would be apportioned as capital expenditure

HC slams ITAT for deciding case in casual manner by merely following its earlier order

IT : Where Tribunal in respect of withdrawal of deduction under section 36(1)(viia), merely followed its order for preceding assessment year and upheld order passed by Commissioner in a casual manner, same was not justified; matter was to be remanded back to Tribunal

Sec. 14A disallowance shall also be added back for computing book profits under sec. 115JB

IT: Where assessee-company engaged in business of pharmaceuticals received product development charges which were credited to profit and loss account as part of normal sales, same was not to be reduced from expenditure incurred by assessee on carrying out scientific research on which section 35(2AB) deduction had to be allowed

Allahabad HC directs revenue to pay interest on assets seized above 19 years after completion of ass

IT : Where revenue had retained assets of assessee, viz., FDR, Indira Vikas Patra, Kisan Vikas Patra even after completion of assessment unreasonably for long duration without renewal and encashment thereof resulting in loss of interest which seized assets could have earned in normal course of things, revenue was directed to pay such interest to assessee

Order of provisional release of seized goods is an appealable order

Excise & Customs: Order of adjudicating authority granting provisional release of seized goods, is an appealable order; therefore, writ petition against said order was dismissed citing bar of alternate remedy

No deemed dividend if lender-co. had share premium reserve and not accumulated profits to declare di

IT: Where assessee-company created a reserve out of share premium, provisions of section 2(22)(e) would not be applicable as same would be governed by section 78 of Companies Act, 1956

Reimbursement to director for payment made by him via credit card on behalf of co. wasn't deemed div

IT: Where assessee made payments on behalf of company using his credit card which had been reimbursed by company, same could not be treated as deemed dividend under section 2(22)(e)

Levy of services charges on e-tickets doesn’t amount to abuse of dominance position by Railways

Competition Act : E-ticketing facility in Railways is an additional value added service offered by IRCTC and any customer wishing to avoid payment of service charges may not register himself with IRCTC but can book tickets through manual PRS counters without paying any service charge and, therefore, levy of service charges on e-tickets does not amount to an abuse of dominant position by Railways

Duty could be paid using credit in absence of specific restriction in case of withdrawal of fortnigh

Excise & Customs : In case of withdrawal of monthly/fortnightly facility to pay duty, mere provision that 'duty should be paid through account current' does not amount to restriction on use of Cenvat credit; hence, in absence of any specific restriction on use of credit, payment of duty using credit is valid

Failure to quote PAN while filing appeal before CIT(A) due to ignorance doesn't attract penalty

IT: Where assessee failed to quote permanent account number(PAN) while filing appeal before Commissioner (Appeals), since default made on part of assessee was because of her ignorance and not because of any mala fide intention, penalty levied under section 272B was to be deleted

No reassessment to make disallowance for TDS default if impugned exp. wasn’t deducted in original as

IT : Where Assessing Officer initiated reassessment proceedings on ground that assessee had paid labour expenses without deducting tax at source which resulted in under assessment of income, but in fact amount in question had not been claimed as deduction, impugned reassessment proceedings deserved to be quashed