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Case Laws
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AI Text Quick Glance by AI Headnote
AI TextQuick Glance (AI)Headnote
Unaccounted stock discovered during business premises surveys requires tax assessment rather than direct confiscation and confiscation-related fines or penalties.
For excess or unaccounted stock discovered during surveys of business premises, tax is determined under sections 73 or 74 of the GST Acts rather than through direct confiscation proceedings under section 130. Registered persons must maintain true and correct accounts under section 35, which provides for tax on unaccounted goods as though supplied. Direct confiscation and the resulting fines and penalties are unsustainable for such stock.
AI TextQuick Glance (AI)Headnote
Expired e-way bills can trigger GST penalties when vehicle discrepancies and surrounding circumstances indicate an intention to evade tax.
Transportation under an expired e-way bill is treated as transportation without a valid e-way bill and may attract a GST penalty where surrounding circumstances indicate an intention to evade tax. Section 129 governs detention and penalties, while Rule 138 governs e-way bills. A penalty was justified where the bill recorded a different vehicle registration, repair slips were produced only during adjudication, the driver had not reported a breakdown and no FASTag movement was shown, although the goods matched the other documents. Fiscal penalties are civil liabilities, and intention to evade tax may be assessed from the surrounding circumstances.
AI TextQuick Glance (AI)Headnote
Timely payment after GST notice precludes penalties, while verified input credit and prior payments resolve disputed tax demands.
The disputed integrated GST input tax credit is supported by verified invoices and a chartered accountant's certificate. Payments already made towards central and state GST must be appropriated against the remaining demands. Section 73(8) of the Central Goods and Services Tax Act precludes penalties when tax and interest are paid within the prescribed period after notice. The integrated GST penalty is also unsupported by the records. No tax remains due under the disputed heads, and the consequential interest demand falls.
AI TextQuick Glance (AI)Headnote
Draft assessment orders protect objections to prejudicial transfer-pricing adjustments; final assessments without mandatory service lack jurisdiction.
For an eligible assessee, the faceless assessment procedure requires service of a draft assessment order before a final order where a transfer-pricing variation is prejudicial. The draft order enables the assessee to object before the Dispute Resolution Panel. Issuing a final assessment without first serving the mandatory draft order deprives the assessee of that opportunity and results in an incurable jurisdictional error, rendering the final assessment invalid.
AI TextQuick Glance (AI)Headnote
Interest on enhanced acquisition compensation forms part of land value, while delayed-payment interest compensates for payment delays.
Interest on excess acquisition compensation under Section 28 forms part of the enhanced value of the acquired land, whereas interest under Section 34 compensates for delay in payment. An acquisition award may also include additional compensation and solatium. Where tax deducted from agricultural-land compensation has been deposited with the Income Tax Department, the Assessing Officer assesses the nature of the land and determines the refund claim.
AI TextQuick Glance (AI)Headnote
Expenditure disallowance for exempt income does not apply when no exempt income is earned during the assessment year.
Section 14A and Rule 8D govern the disallowance of expenditure relating to exempt income. Where no exempt income is earned during the relevant assessment year, expenditure cannot be disallowed under Section 14A. Appellate jurisdiction under Section 260A is confined to substantial questions of law, including in disputes over such disallowance.
AI TextQuick Glance (AI)Headnote
Pre-existing operational debt disputes bar insolvency proceedings even when a debtor provides no timely detailed demand notice reply
Pre-existing, plausible and non-illusory disputes over operational debt require rejection of an operational creditor's insolvency application. A late or absent reply to a demand notice does not prevent the debtor from relying on evidence of an earlier dispute. A holding response withholding admission of the demand may constitute notice of dispute even without specific details. The dispute must be supported by evidence, but its likely success need not be determined. Relevant communications may concern outstanding credit notes, detention and demurrage charges, reconciliation and the amount payable, provided they relate to the transactions underlying the claim.
AI TextQuick Glance (AI)Headnote
Principal-to-principal support and software services are not intermediary supplies merely because they facilitate an overseas recipient's business.
Services supplied on a principal-to-principal basis on the supplier's own account are not intermediary services merely because they facilitate the recipient's business. Intermediaries facilitate a separate supply between other persons, with the definition read in the context of brokers and agents. Export requirements include a place of supply outside India and payment in convertible foreign exchange. Separately incorporated parent and subsidiary companies are not merely establishments of a distinct person. Place-of-supply issues fall within the GSTAT Principal Bench's jurisdiction. Refund objections must be sufficiently specified in the notice, and appellate findings must be reasoned; rejection beyond the notice violates natural justice. Qualifying service exports may attract refunds of unutilised input tax credit with statutory interest.
AI TextQuick Glance (AI)Headnote
Railway works contract tax concession requires proof of construction involving immovable property and a composite supply
Railway construction services qualify for the concessional 12% GST rate under entry 3(v)(a) of Notification No. 11/2017-Central Tax (Rate), as amended, only if the supplier establishes a composite works contract involving construction relating to immovable property. General construction descriptions in invoices, without structural proof or billing breakups, did not establish the claimed classification. The services therefore attracted 18% GST instead of the concessional rate.
AI TextQuick Glance (AI)Headnote
Delayed GST refund interest cannot be denied solely for full payment through the electronic credit ledger and subsequent re-credit.
Section 56 provides for interest when an eligible refund is not made within sixty days of receipt of the refund application. Interest cannot be denied solely because the disputed demand was paid through the electronic credit ledger and subsequently re-credited; the debited input tax credit remains unavailable until restored. Section 107 prescribes a minimum pre-deposit and stays recovery of the balance, but does not prohibit payment of the full demand or treat it as a waiver of refund or interest rights. Full payment does not, by itself, extinguish the interest claim.
AI TextQuick Glance (AI)Headnote
Suppressed turnover assessments require entry-wise verification and reasoned computation, while missing invoices alone do not establish suppression.
Determination of suppressed taxable turnover from seized records requires identification and examination of disputed entries, reconciliation with books and returns, and a transparent, evidence-based computation. Non-production of invoices during the initial investigation does not by itself establish suppression; invoices produced later require verification against diaries, books and returns. A speaking order must record the evidence, explanations and reasons supporting the determination. Inadequate entry-wise analysis and unexplained computations undermine determinations of suppressed turnover and consequential tax and penalty liability.
AI TextQuick Glance (AI)Headnote
Statutory appeal delay following ex parte assessment condoned on partial deposit, with timely appeal to receive merits review
Delay in a statutory appeal against an ex parte assessment was condoned under Article 226 after the taxpayer offered to deposit half of the assessed liability. Condonation was conditional on that deposit, and an appeal filed within one month of receipt of the order must be decided on its merits, despite expiry of the statutory limitation period.
AI TextQuick Glance (AI)Headnote
E-way bill penalties for technical omissions require intent to evade tax; appeal limits permit exceptions based on the Commissioner's opinion.
A technical failure to complete Part B of an e-way bill cannot sustain a penalty under section 129 without an established intention to evade tax. Genuine commercial documents and an e-invoice generated before movement support the transaction. Under the applicable circular, the monetary limit for departmental appeals does not bar an appeal where the Commissioner considers a challenge necessary in the interest of justice or revenue. The Commissioner need not state the reasons for that opinion, which cannot be challenged.
AI TextQuick Glance (AI)Headnote
Fictitious transaction penalties require collective evidence assessment and an effective hearing when ex parte proceedings leave material facts unresolved.
Findings of fictitious transactions require collective evaluation of the available evidence and an effective hearing where material facts remain unresolved after ex parte proceedings. Closure of premises following claimed discontinuance of business, subsequent cancellation of a supplier's registration, or absence of a particular document is not conclusive by itself. The taxpayer's burden of substantiating transactions must be examined, and the taxpayer must have an opportunity to respond and produce supporting records before an adverse finding.
AI TextQuick Glance (AI)Headnote
Non-consecutive invoice numbering alone does not justify goods detention or transit penalties where documentation matches and no evasion is alleged.
Non-consecutive tax invoice numbering is a technical irregularity where valid documents accompany interstate goods, the quantity and description match, and no unaccounted transaction or tax evasion is alleged. Rule 46 requires consecutive invoice numbers, but such a lapse alone does not justify detention or a penalty under section 129. Section 125 addresses general penalties for technical infractions, but its imposition requires deliberate noncompliance. A general penalty is not established without that requirement.
AI TextQuick Glance (AI)Headnote
Transitional credit remains available when portal failure delays a required return despite diligent efforts and subsequent prompt filing.
Undisputed transitional credit remains available where a departmental portal failure prevents diligent, timely filing of a required return and the return is filed at the first available opportunity. Section 140 requires returns for the six months preceding the appointed date, while Rule 117 governs the transitional declaration. Substantial compliance and the principle that law does not compel the impossible inform this result. A fraud-based penalty cannot replace the non-fraud penalty proposed in the notice; section 75(7) bars confirmation of a demand on grounds not specified in the notice. Section 74 requires foundational facts supporting fraud, wilful misstatement or suppression with intent to evade tax; disclosed filing difficulty and perceived wilfulness alone are insufficient. Consequential relief extends to associated interest and penalty.
AI TextQuick Glance (AI)Headnote
Eligible input tax credit is not denied solely for return mismatches or recording integrated tax under central and state heads
For the relevant period, input tax credit requires an invoice, receipt of services, actual payment of tax to the government and filing of a return; the later invoice-reflection requirement does not apply. The claimant bears the burden of proving eligibility. A certificate under the administrative circular is a verification measure, not an independent eligibility condition, and its discrepancy mechanism does not apply where the invoiced integrated tax is reflected in GSTR-2A. Eligible integrated-tax credit on an inter-State supply by a special economic zone unit is not wrongly availed merely because it is inadvertently recorded under central and state tax heads. Wrong-head payment provisions concern tax paid on a transaction, not credit claimed by the recipient.
AI TextQuick Glance (AI)Headnote
Reassessment notices issued beyond the old limitation period raise questions about their validity for an earlier assessment year.
Reassessment for assessment year 2014-15 raises the issue of whether a notice under Section 148 may be issued after expiry of the six-year limitation period under the old reassessment regime.
AI TextQuick Glance (AI)Headnote
Estimated bogus purchase additions cannot sustain concealment penalties when consistent coordinate-bench decisions support deletion without distinguishing features.
Penalties for concealment or furnishing inaccurate particulars on estimated additions for alleged bogus purchases are unsustainable where coordinate-bench decisions on identical additions support deletion and no distinguishing features or subsequent contrary rulings exist. Judicial discipline and consistency require those decisions to be followed. Penalties imposed under section 271(1)(c) of the Income-tax Act, 1961 on such estimated additions must therefore be deleted.
AI TextQuick Glance (AI)Headnote
Customs broker licence suspension requires demonstrated urgency when authorities delay action on an offence report pending inquiry.
Immediate suspension of a customs broker's licence pending inquiry under Regulation 16 of the Customs Brokers Licensing Regulations, 2018 requires a demonstrated need for urgent action. Suspension cannot be sustained where the licensing authority delays acting on an offence report and identifies no subsequent information establishing urgency. Regulation 17 governs disciplinary proceedings, while separate action to revoke the licence remains subject to the applicable procedure and timelines.

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1982 (6) TMI 151 - AT - Wealth-tax

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Testamentary devolution and HUF character: inherited property stays separate unless clear evidence shows conversion into joint family property.
Property devolving by will from a coparcener who had already separated from the joint family remains the recipient's separate property and does not become ... Summary

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Acts Income Tax