Registration under s.12AB upheld; CIT(Exemptions) exceeded jurisdiction by deciding taxability instead of preliminary verification and registration di...
Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
HC held that penalty under Section 50 of the FERA is not sustainable against the appellants. Reading Section 18(1)(a) with Sections 18(2) and 18(3) and the attendant notification, the Court found that non-realisation of a small percentage (~5.45%) of export proceeds did not warrant automatic penal liability where prescribed procedural requisites and reasonable steps are considered. The appellants were entitled to write-off of unrealised export bills in line with post-liberalisation RBI practice; the AD had sought write-off and the RBI failed to implement the applicable circular. The appellants had also reversed proportionate duty drawback, negating misuse of export incentives, supporting relief from penalty.
HC held that penalty under Section 50 of the FERA is not sustainable against the appellants. Reading Section 18(1)(a) with Sections 18(2) and 18(3) and the attendant notification, the Court found that non-realisation of a small percentage (~5.45%) of export proceeds did not warrant automatic penal liability where prescribed procedural requisites and reasonable steps are considered. The appellants were entitled to write-off of unrealised export bills in line with post-liberalisation RBI practice; the AD had sought write-off and the RBI failed to implement the applicable circular. The appellants had also reversed proportionate duty drawback, negating misuse of export incentives, supporting relief from penalty.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4830 
Join Channel 
