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Case Laws
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AI Text Quick Glance by AI Headnote
AI TextQuick Glance (AI)Headnote
Regular bail follows prolonged pre-trial custody where cognizance is pending and trial delay is likely.
Regular bail may be warranted where continued pre-trial custody is no longer necessary pending trial. Incarceration for about one year and three months, absence of cognizance, and proceedings at a nascent stage indicated that the trial would take considerable time. Bail granted to arrested co-accused and the non-arrest of several others further weighed against continued detention. Release was granted on terms to be fixed by the Trial Court.
AI TextQuick Glance (AI)Headnote
Statutory appeal limitation prevents condonation beyond the prescribed period, while implemented registration restoration bars effective departmental challenge.
Section 107 of the CGST Act sets a three-month appeal period and permits the First Appellate Authority to condone delay only for one additional month on sufficient cause. As a statutory authority, it has no inherent power to extend that outer limit; equitable considerations or High Court directions confined to particular writ proceedings do not enlarge its jurisdiction. Where the Department has implemented an order restoring GST registration, enabled business continuation and return filing, estoppel and orderly administration prevent a later challenge seeking to reverse that position. Registration restoration consequently remains effective despite invalid condonation beyond the statutory limit.
AI TextQuick Glance (AI)Headnote
GST late fee remains deductible because delayed tax payment is not expenditure for an unlawful purpose.
Section 69 additions for capital introduced and unreconciled bank credits require verification of the taxpayer's explanation and supporting bank records. Identified sources, including personal-bank funds, loan repayment, maturity proceeds and FD/OD withdrawals, must be reconciled with confirmations and documents; where substantiated, the additions cannot survive. GST late fee for delayed tax payment is deductible business expenditure because it compensates for delay and is not incurred for an offence or a purpose prohibited by law under Explanation 1 to section 37(1).
AI TextQuick Glance (AI)Headnote
Section 54 exemption can cover adjoining flats used as one residence before the single-house restriction applied.
For assessment year 2012-13, section 54 permitted exemption for investment in adjoining flats that were acquired and intended to function as one residential accommodation; the later restriction to one residential house in India did not apply. Capital-gains computation for a property comprising land and a building must include indexation of the accepted allowable cost of the building, rather than indexation of land alone. Sufficient cause for delayed filing may be established by bona fide circumstances, including advanced age, difficulty accessing electronic communications, and prompt action upon learning of the appellate order.
AI TextQuick Glance (AI)Headnote
Leasehold-right transfers are not construction-related taxable supplies, preventing blocked-credit restrictions and fraud-based recovery on related input tax credit.
Transfer of leasehold rights in an industrial plot is treated as a transfer of benefits arising from immovable property rather than a taxable supply. Consequently, input tax credit on acquiring those rights cannot be characterised as blocked credit under the construction-related restriction, which applies only to lawfully taxable inward supplies of goods or services received for construction of immovable property. No construction occurs merely through a transfer of leasehold rights. Fraud-based recovery cannot be invoked where the underlying transaction is non-taxable and the credit is not ineligible. Tax collected on a subsequent transfer was deposited with the Government.
AI TextQuick Glance (AI)Headnote
PMLA bail restrictions yield where prolonged custody and delayed predicate proceedings undermine personal liberty and speedy trial.
Section 45 of the Prevention of Money-laundering Act imposes additional twin conditions for bail but is not an absolute prohibition. Prolonged judicial custody, absence of framed charges, delayed filing of the predicate-offence charge sheet, and continuing investigation may show that trial is not likely to commence promptly. Where money-laundering proceedings depend on the scheduled offence, continued detention may impair Article 21 protections of personal liberty and speedy trial. Concerns about influencing witnesses may be addressed through stringent bail conditions, supporting regular bail despite Section 45 restrictions.
AI TextQuick Glance (AI)Headnote
Tax reimbursement arbitration permits contractual allocation while import and inter-State sales remain outside DVAT under an integral contractual nexus.
Contractual disputes over which party bears or reimburses tax are arbitrable where they concern reciprocal obligations and neither determine statutory tax liability nor bind tax authorities. For works contracts, transfer of property in goods is a deemed sale, but goods procured pursuant to an integral nexus with the contract may qualify as sales in the course of import or inter-State trade and remain outside DVAT. Contractual specifications, supplier approval, pre-inspection, tax-exemption certificates, custom-made goods and consignee identification may establish that nexus; subsequent incorporation into the works does not sever it. Limited review of arbitral awards precludes reappreciation of evidence where the tribunal's view is plausible.
AI TextQuick Glance (AI)Headnote
Effective service of GST show-cause notices requires alternative modes and meaningful personal hearing before ex parte assessment.
Ex parte GST assessments based on show-cause notices uploaded only to the GST portal may not provide effective service where repeated portal notices receive no response. Although portal upload is a recognised mode of service, the proper officer must explore other available modes, preferably registered post, to ensure an effective opportunity to respond. Confirming show-cause proposals without effective service and a meaningful personal hearing reduces the process to an ineffective formality; ex parte assessments made in those circumstances cannot be sustained.
AI TextQuick Glance (AI)Headnote
Contractual GST allocation permits supplier reimbursement but does not prevent statutory recovery from the taxpayer.
Private contractual allocation of GST liability does not bar statutory recovery from a person liable under the CGST Act. Suppliers receiving assignment consideration inclusive of GST and undertaking to remit it remain contractually liable to reimburse the payer for unpaid GST and consequential interest. Statutory authorities may nevertheless pursue the payer under section 16(2), subject to the pending statutory appeal. A civil money claim cannot extend to statutory authorities where they were added late and no amended prayer or contractual basis supports relief against them.
AI TextQuick Glance (AI)Headnote
Supplier discount disclosures in GST reconciliation cannot alone establish output tax liability or support a new marketing-service theory.
Supplier discounts or incentives disclosed in Column 5(O) of GSTR-9C do not, without more, establish an output-tax liability for the recipient. Section 15(3) governs exclusion of discounts from the supplier's taxable value and requires verification of pre-existing agreements, invoice linkage, credit notes, supplier reporting, return treatment, and any input-tax-credit reversal. Taxability must therefore depend on whether the recipient reduced outward turnover or tax liability. A discount cannot be recharacterised at the appellate stage as consideration for promotion or marketing services where that taxable-supply theory was absent from the show-cause notice and original adjudication.
Quick Glance (AI)Headnote
Recording satisfaction in reassessment proceedings remained undecided after special leave petitions on penalty provisions were dismissed for delay.
Special leave petitions concerning penalties for contraventions involving loans or deposits under sections 271D and 271E were dismissed because the filing delays, reported as 427 and 433 days, lacked satisfactory explanation. No substantive determination was made on the requirement for the reassessment Assessing Officer to record satisfaction during reassessment proceedings.
AI TextQuick Glance (AI)Headnote
Resolution plan finality bars reassessment of pre-plan tax periods despite later information on alleged earlier transactions.
Approval of a corporate insolvency resolution plan extinguishes past claims, including statutory dues, for periods before approval. Its binding effect prevents reassessment proceedings against the corporate debtor for a pre-plan assessment year, even where fresh information later emerges regarding alleged transactions before plan approval. Consequently, pre-resolution-plan tax liabilities cannot be pursued through a newly initiated reassessment.
AI TextQuick Glance (AI)Headnote
Misreporting penalty requires proof of a specified statutory instance; under-reported income alone attracts the ordinary penalty rate.
Enhanced penalty for misreporting requires establishment of a specified statutory instance of misreporting; under-reporting alone supports only the ordinary penalty rate. A penalty notice is sufficiently specific where it expressly identifies under-reporting arising from misreporting as the charge. Where a return has been furnished, the excess of income assessed for the first time over income processed under section 143(1)(a) constitutes under-reported income. The enhanced rate cannot apply merely because under-reported income exists where no statutory misreporting category is identified or established; penalty is then confined to 50% of tax on that under-reported income.
AI TextQuick Glance (AI)Headnote
Written acceptance of customs reassessment preserves challenge rights; undisclosed NIDB data alone cannot justify enhanced import valuation.
Written acceptance of an enhanced customs value waives only the requirement for a speaking order; it does not surrender the importer's statutory right to challenge rejection of transaction value or reassessment. Declared transaction value may be rejected only after grounds for reasonable doubt are formed and communicated and prescribed sequential valuation rules are followed. Undisclosed NIDB or contemporaneous-import data, without particulars, independent corroboration, and cogent justification, cannot alone support enhancement. Consequently, reassessment lacking these safeguards is legally unsustainable.
AI TextQuick Glance (AI)Headnote
Tariff classification of boiler support structures turns on sole-use machinery-part identity, excluding structural steel and prefabricated-building headings.
Boiler Support Steel Structures imported in completely knocked-down condition qualify as machinery parts when their design, dimensions, connection points, attachments and position-specific tags establish sole or principal use with a designated boiler system. Rule 1 of the General Rules for Interpretation and Section XVI principles support classification as other boiler parts, because heading 7308 excludes structures clearly identifiable as machinery parts. Associated platforms, galleries, walkways and maintenance structures remain within the engineered boiler-support arrangement. Classification as prefabricated buildings is excluded because the goods lack the essential character of such buildings.
AI TextQuick Glance (AI)Headnote
Tax subsidy treatment remained unexamined after insufficient cause barred the special leave petition on limitation.
The issue concerned disallowance under section 43B and the treatment of a subsidy received from the Government of Haryana. Insufficient cause for delay led to rejection of the condonation application and dismissal of the special leave petition as time-barred. No substantive determination of the section 43B disallowance or subsidy treatment is recorded.
AI TextQuick Glance (AI)Headnote
Personal Hearing in Faceless Assessment Invalidates Orders Passed Despite Technical Failure in Requested Video Conferencing
Faceless assessment under section 144B must provide a requested personal hearing through video conferencing, reflecting principles of natural justice. Where technical glitches prevented the assessee from availing the requested facility, without any default by the assessee, passing the draft assessment order without that hearing breached those principles. The draft assessment order and consequential final assessment order were therefore invalid, and the issue was decided in favour of the assessee.
AI TextQuick Glance (AI)Headnote
Assessment of a dissolved company is void because reassessment jurisdiction cannot arise from notice to a non-existent entity.
Dissolution of a company before issuance of a reassessment notice ends its existence as a juristic person, preventing initiation or completion of reassessment against it. A valid reassessment notice is the jurisdictional foundation for reassessment proceedings; notice issued to a non-existent entity cannot confer that jurisdiction. Assessment, demand and penalty actions consequential to such notice are void. Issuing proceedings against a dissolved company constitutes a substantive jurisdictional defect, not a procedural irregularity capable of validation under the statutory saving provision.
AI TextQuick Glance (AI)Headnote
Interim protection against operational suspension granted where the suspension appeared unjustified and the regulatory inquiry timeline was not followed.
Interim protection against suspension of operations was considered warranted pending a contemplated inquiry because a strong prima facie case for relief existed. The suspension appeared prima facie unjustified, and the prescribed timeline under Regulation 11(3) appeared not to have been followed. The appeal was admitted on substantial questions of law, with a stay on the suspension order and consequential public notice pending inquiry. The pending inquiry was directed to proceed without influence from the impugned appellate order.
AI TextQuick Glance (AI)Headnote
Prior notice before disposal of seized gold determines valuation at release, while confiscation appeals delay conditional payment.
Disposal of seized gold without statutory prior notice to its owner under Section 150(1) makes the applicable valuation, if confiscation proceedings ultimately favour the owner, the fair market value on the date release is directed rather than the historical sale proceeds. A pending departmental appeal against non-confiscation leaves abatement and confiscation merits for appellate determination. Immediate disbursement of the gold's value against bank guarantees is not available while that appeal remains unresolved; expedited appellate determination and subsequent conditional payment govern release.

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1991 (1) TMI 187 - AT - Income Tax

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Case on Income Tax Act: Disallowance of Expenses & Additions under Various Sections
The case involved various issues related to disallowance of expenses and quantification of additions under different sections of the Income Tax Act. The ... Summary

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Acts Income Tax