Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Whether mere deviation of route during transit, when the consignment was accompanied by valid tax invoice and no discrepancy in goods or documents was found, could justify detention and penalty under s.129 CGST/KGST was answered in the negative. The authority relied only on a cyclostyled driver statement and produced no material to prove deliberate diversion or intent to evade tax, while the taxpayer offered a prompt, plausible explanation of inadvertent route-miss. Since s.129 is invocable only upon deliberate tax evasion and not for technical or minor lapses, the orders imposing s.129 penalty were held illegal and were set aside, with liberty to proceed, if at all, only under s.125. - HC
Whether mere deviation of route during transit, when the consignment was accompanied by valid tax invoice and no discrepancy in goods or documents was found, could justify detention and penalty under s.129 CGST/KGST was answered in the negative. The authority relied only on a cyclostyled driver statement and produced no material to prove deliberate diversion or intent to evade tax, while the taxpayer offered a prompt, plausible explanation of inadvertent route-miss. Since s.129 is invocable only upon deliberate tax evasion and not for technical or minor lapses, the orders imposing s.129 penalty were held illegal and were set aside, with liberty to proceed, if at all, only under s.125. - HC
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