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Case Laws
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AI Text Quick Glance by AI Headnote
AI TextQuick Glance (AI)Headnote
Agricultural land characterisation preserved where land was agricultural at sale, so sale proceeds not long term capital gains.
The analysis determines that the land was recorded and situated as agricultural land outside the non agricultural limits at the time of sale; therefore its character remained agricultural and it did not qualify as a capital asset under the statutory agricultural exclusion. The reasoning emphasises that post sale conversion or change of user by the purchaser does not retrospectively alter the land's character at sale. Operatively, the sale proceeds were held not to attract long term capital gains and the revenue's claim was rejected.
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Provisional attachment and frozen funds: Adjudicating Authority is the forum for determination; limited salary payments may be permitted.
The court clarified that adjudication whether frozen assets constitute proceeds of crime lies with the Adjudicating Authority and that that Authority lacks power to grant interim partial defreeze orders under the Section 8 procedure; provisional attachment, freezing and seizure operate within the PMLA scheme and proceedable property must be derived from scheduled offences. It upheld the Single Judge's exercise of discretion in relegating the respondent to the statutory remedy while permitting an incidental limited salary payment, holding that the order was not perverse. The appeal was dismissed and the High Court order stands.
AI TextQuick Glance (AI)Headnote
Statutory appeal allowed to challenge final assessment orders within four weeks, subject to pending validity adjudication.
Petitioner sought permission to file a statutory appeal against final assessment orders while the legality of Notifications extending time under Section 73(10) of the GST laws remained pending before higher adjudication. The court confined relief to procedural permission: the petitioner may prefer an appropriate statutory appeal to the Appellate Authority within four weeks, enabling appellate review of the assessment orders without prejudicing the ultimate determination on the validity and legality of the challenged Notifications. The appellate authority's decision is subject to this Court's final adjudication on the Notifications' validity.
AI TextQuick Glance (AI)Headnote
Failure to Disprove Genuineness of Transactions leads to deletion of tax addition based on alleged bogus purchases.
Where the Assessing Officer failed to produce adverse material or otherwise discharge the onus of disproving the genuineness of claimed purchases, the Commissioner (Appeals) and the Tribunal correctly deleted the addition based on alleged bogus purchases; the Tribunal found no rejection or recasting of books, no cogent rebuttal evidence, and noted VAT compliance and completed sales tax assessments. The concurrent factual findings in favour of the assessee were not disturbed, and no substantial question of law was shown to arise, so the deletion of the addition was upheld and the appeal dismissed.
AI TextQuick Glance (AI)Headnote
Equivalence of excise and customs prevents later customs duty, penalties or confiscation when excise equal to customs was paid.
Where exporters in a 100% EOU cleared finished marble slabs to DTA under a judicial stay and paid excise equal to the customs duty leviable on like imported goods pursuant to the proviso to Section 3, a subsequent demand for customs duty on imported raw marble is unsustainable because revenue parity was maintained; consequential interest demand is also set aside. Because there was no suppression, collusion or wilful misstatement and clearances and payments were on record, extended limitation and mandatory penalties predicated on suppression cannot be sustained. Confiscation and redemption fines are also unsupportable where no sanctionable breach occurred and goods were not available for seizure.
AI TextQuick Glance (AI)Headnote
Proceeds of Crime tracing sustained provisional attachment where claimant failed to discharge the burden to show legitimate acquisition.
Confirmation of provisional attachment addressed whether the properties represented proceeds of crime or their value, and held attachment sustainable where tracing linked funds to the scheme. The applicable burden required the person served to disclose legitimate sources; on the civil preponderance standard the available evidence-statements under the statute, account credits, admissions and loan repayments traced to scheme proceeds-was found sufficient and the statutory onus was not discharged, resulting in upholding confirmation of attachment and dismissal of the appeal.
AI TextQuick Glance (AI)Headnote
Stay of tax demand cannot require a deposit when prior findings negate tax deduction and default obligations.
Stay of tax demand should account for prior findings that no tax deduction at source was required and that the assessee was not in default. Where the demand arises under a penalty-operating provision, those findings directly affect whether any deposit is necessary pending appeal. A condition requiring deposit of 20% of the outstanding demand without addressing the Tribunal's factual finding and earlier non-default determinations was set aside. The stay application was allowed without requiring payment of any part of the demand during the appeal's pendency.
AI TextQuick Glance (AI)Headnote
Customs seizure upheld where lab reports showed imported industrial oil was actually restricted diesel-type fuel
Imported goods declared as industrial oil were held to be restricted Automotive Diesel Fuel/High Speed Diesel because the laboratory reports, read together, showed a diesel-dominant composition adulterated with lighter hydrocarbons and most akin to HFHSD. The Court found the scientific opinion on the character of the goods to be clear and unambiguous, distinguished Gastrade International, and rejected the challenge based on testing by more than one laboratory where the samples were duly collected and the relevant technical parameters were examined. On that basis, the seizure under Section 110 of the Customs Act was upheld and the writ petitions failed.
AI TextQuick Glance (AI)Headnote
Unexplained delay can bar Special Leave Petitions; lack of substantive grounds supports dismissal on merits.
A Special Leave Petition filed after a gross unexplained delay may be dismissed for non-condonation where the petitioner fails to provide a satisfactory justification; consequently, procedural laches can bar appellate scrutiny. Separately, where review of the impugned order discloses no substantial infirmity, absence of grounds for interference on merits warrants dismissal. Operatively, the petition was dismissed both for unexplained delay and for lack of merit, the filing was restored for dismissal, and any question of law was left open.
AI TextQuick Glance (AI)Headnote
Reopening of assessment under Section 149 and Section 148A upheld issue, with special leave petitions dismissed by the SC.
Reopening of assessment under Section 149(1)(b) turned on whether the prima facie opinion formed under Section 148A could still be treated as a roving inquiry and whether cash withdrawals fell within the expression "asset" for limitation purposes under Section 149. The SC found no reason to interfere with the High Court's order and dismissed the special leave petitions, leaving the challenge to reassessment jurisdiction unsuccessful.
AI TextQuick Glance (AI)Headnote
Revisionary jurisdiction fails where goodwill depreciation and actual warranty expenses show no erroneous, revenue-prejudicial assessment.
Revisionary jurisdiction under section 263 requires the assessment order to be both erroneous and prejudicial to revenue. Depreciation on the opening written down value of goodwill, previously accepted and supported by audited accounts and the tax audit report, could not be revised for a later year without showing impairment or inconsistency; any challenge to goodwill creation concerned the year of creation. Actual warranty expenses remained allowable where the taxpayer had voluntarily disallowed the warranty provision and claimed only expenses incurred, with no material showing error or prejudice. The revisionary order was quashed and the assessment order restored.
AI TextQuick Glance (AI)Headnote
Proceeds of crime under PMLA were narrowed to traced mining-linked gains, while genuine share-investment proceeds were excluded.
Investment in Bharathi Cements and the later share-sale proceeds were held not to be proceeds of crime because the transaction was treated as a genuine commercial outgo and no material showed tainted funds or criminal involvement of the foreign purchaser. Mining-linked profits from the Kadapa limestone activity were treated as proceeds of crime at the provisional stage on the basis of a coordinated and collusive arrangement, but the quantified amount was reduced after accepting revised computation and excluding the share-sale component. The Tribunal found sufficient reason to believe for provisional attachment under the PMLA where direct proceeds were stated to be intermingled and untraceable. It also held that no express power existed to direct substitution of attached property, though an agreed substitution was not precluded.
AI TextQuick Glance (AI)Headnote
Service classification of travel activities: travel agent booking services prevail over business auxiliary character, shifting related tax demands.
The provider's activities fall within the statutory scope of air travel agent service rather than business auxiliary service because they involve booking passage as IATA agents and do not meet the specific categories listed for business auxiliary services; demands framed under business auxiliary service are set aside. Charges for passport, visa processing, insurance and similar items do not constitute travel agent service and related demands are set aside. Allegations of short payment and excess collection under air travel agent service require factual verification and are remanded to the adjudicating authority. Invocation of extended limitation and penalty is unsustainable where classification was disputed and no clear suppression is shown.
Quick Glance (AI)Headnote
Writ petition barred by laches; Supreme Court declined interference and dismissed the special leave petition.
A writ petition was non-suited for delay and barred by laches, and the SC found no good ground to interfere with the High Court's order. The challenge to maintainability on the basis of delay was therefore not accepted, and the special leave petition was dismissed.
AI TextQuick Glance (AI)Headnote
Anticipatory bail granted where the accused cooperated with investigation and disputed facts were left for trial.
Anticipatory bail was granted where the accused had cooperated with investigation, appeared before the Investigating Officer, and co-accused had already been enlarged on bail. The Court treated the alleged forged-document dispute as a matter for trial and declined to express any view on merits to avoid prejudice. On those facts, the appellant was held entitled to anticipatory bail, subject to terms and conditions imposed by the Investigating Officer.
AI TextQuick Glance (AI)Headnote
Statutory appeal rights: petitioner granted six weeks to file; appellate authority must hear and decide on merits.
Petitioner may prefer a statutory appeal against the final assessment; the SC granted additional time and permitted filing within six weeks, directing that any such appeal be entertained notwithstanding limitation and decided on merits. The appellate authority must consider all grounds and documentary evidence (including specific documentary requests), afford an opportunity of personal hearing, and pass a reasoned order expeditiously. Earlier observations in writ proceedings must not preclude fresh consideration on merits. The Special Leave Petition is disposed; relief is limited to permit and mandate proper adjudication of the statutory appeal within the specified timeframe.
AI TextQuick Glance (AI)Headnote
Ownership of drilling ship and depreciation claim treated as factual issue; Supreme Court declined interference in reassessment challenge.
Reopening under Section 148 was sought to examine whether depreciation had been wrongly claimed on a drilling ship allegedly owned by another entity. The Court noted that the earlier appellate proceedings had addressed only the quantum of depreciation, not the threshold question of entitlement based on ownership. It treated ownership of the drilling ship as a question of fact best determined by the income-tax authorities and found no reason to interfere with the High Court's order. The special leave petition was dismissed.
Quick Glance (AI)Headnote
Settlement order finality bars reopening through writ jurisdiction where statutory procedure and disclosure requirements were satisfied.
Settlement Commission orders made after compliance with the statutory procedure, full and true disclosure requirements, and the prescribed settlement process attain finality. Such orders are conclusive and ordinarily cannot be reopened through writ jurisdiction merely to reassess the settlement. Rectification or declaration that a settlement is void remains confined to fraud or misrepresentation, while judicial review is limited to legality and procedural compliance. The Supreme Court declined to interfere with the High Court's conclusion that the Settlement Commission had followed the required procedure and that reopening the settlement through writ relief was not maintainable, dismissing the special leave petition.
AI TextQuick Glance (AI)Headnote
CSR-linked donations to approved relief funds remain deductible under section 80G absent an express statutory prohibition.
Donations made in discharge of CSR obligations to approved relief funds were held eligible for deduction under section 80G because the Act contains no express bar against such contributions for those funds. The commentary distinguishes section 37(1), where CSR expenditure is denied as business deduction, from section 80G, which permits deduction for specified donations unless the Legislature has specifically excluded them. A separate income-computation issue under the intimation process was restored for factual verification and fresh decision by the Assessing Officer.
AI TextQuick Glance (AI)Headnote
Statutory Pre-Deposit cannot be waived in writ jurisdiction; appeals require mandatory deposit absent extraordinary circumstances.
Challenge to an order confirming demand for wrongful availment of input tax credit under Section 74 is not maintainable in writ proceedings where the order records findings of misstatement, suppression and fake invoices and no perversity or mala fide is shown; certiorari will not reappraise reasoned tax findings. The statutory pre-deposit requirement for preferring the statutory appeal cannot be waived in writ jurisdiction absent extraordinary circumstances, and the petitioner must comply with the pre-deposit condition before pursuing the appellate remedy; the writ petition is dismissed accordingly.

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2021 (11) TMI 376 - AT - Income Tax

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Tribunal upholds capitalization of NTPC project expenses, citing consistency with prior judgments.
The Tribunal dismissed the Revenue's appeal, upholding the Ld. CIT(A)'s decision to allow expenses related to the NTPC project to be capitalized. The ... Summary

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Acts Income Tax