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In a 106 pages long verdict, the Supreme Court has decided whether a credit note issued by a manufacturer to a dealer of automobiles in consideration of the replacement of a defective part, using spare parts from dealer’s own stock or from an open market, in the automobile sold pursuant to a warranty agreement being collateral to the sale of the automobile, will be exigible to sales tax.
Supreme Court reiterated that to examine whether a particular transaction is sale of capital assets or business expense, multiple factors like frequency of trade and volume of trade, nature of transaction over the years etc., are required to be examined.
In terms of Section 2(22)(e) of the Act, treating the loans and advances received by concerns, in which shareholders of the company giving loans and advances had substantial interest, qualified as “deemed dividend”
After examining the expenses payable and the detailed order of the CIT,the ITAT held that the CIT has correctly examined the invoices, period and purpose for the expenses which have not been paid for the last six years
It is a well-accepted principal of tax jurisprudence that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy by his own whims and fancies
by Tarun Jain†
Cite as: 2023 SCC OnLine Blog Exp 45
“When a legitimate expectation of a specific outcome is created by a public authority, the said public authority is required to take into account such expectation created by it when making a decision that affects the interests of the individual or group” –Justice Krishna Murari
Justice Tirunelveli Subbiah Sivagnanam was sworn in as the Chief Justice of Calcutta High Court on 11-05-2023.
“The intention of the legislature is very clear and unambiguous that the moment any eventuality as mentioned in Section 45(5) occurs, the penalty shall be leviable as mentioned in sub-section (6) of Section 45 of the Gujarat Sales tax Act, 1969”, the Supreme Court observed.
In Aashirward Films v. Union of India, (2007) 6 SCC 624, Supreme Court laid down that a taxing statute for the reasons of functional expediency and even otherwise, can pick and choose to tax some; so long as the classification is reasonable.
The Gujarat AAR said that the lease deed nowhere suggests that the consideration received by the applicant is related to construction of complex, building, civil structure or a part thereof. Thus, the question of this transaction falling within the ambit of Sl. No. 5(b), Schedule II, does not arise.
Karnataka AAR said that there were two transactions involving the applicant. The first transaction is of supply of goods by the manufacturer to the applicant and the second transaction is of supply of the same goods by the applicant to an overseas customer.
The Calcutta High Court quashed the imposition and recovery of penalty by the respondent authorities and directed them to refund the penalty amount and issue discharge certificate in favour of the petitioners.
ITAT held that the second proviso to Clause (i) of Section 40(a) just like second proviso to clause (ia) of Section 40(a) was inserted to remove an anomaly and were therefore curative and declaratory in nature. Hence, it had to be given retrospective effect.
ITAT noted that an identical issue was subject matter of consideration of the Tribunal in assessee’s own case, hence following the precedent, the Tribunal directed that the payment received in this case cannot be treated as FTS under Article 12 (5) of India Netherlands DTAA.
This roundup contains many interesting rulings including the Shiv Sena Party Name and Symbol Dispute, Negligence committed by doctors and Compensation therein, Amendment to Section 178(6) of the Income Tax Act, Initiation of the Corporate Insolvency Resolution Process and more.
Madars High Court said that truth will come out only when the petitioner appears before the respondent pursuant to the summons received by him and not otherwise. Further, held that if it is the same subject matter, the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter
A clarificatory press release dated 1-03-2013 issued by the Finance Ministry pursuant to the 2013 amendment makes it clear that a Tax Residency Certificate is to be accepted and tax authorities cannot go behind it. Further, based on repeated assurances to foreign investors by way of CBDT Circulars as well as press releases and legislative amendments and decisions of the Courts, the revenue cannot go behind TRC.
Allahabad High Court adjourned the tax writ of Paytm’s parent company, will decide the issue that whether the supply of mobile recharge coupons and DTH recharge vouchers to recipients, who are in other States, would be interstate supply or intra-state supply.
The Supreme Court observed that taxation depends upon the language of the charging section and what is brought to tax within the four corners of the charging section.