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...
Denial of input tax credit (ITC) was considered where no finding of collusion, fraud, or mala fide conduct existed; the authority invoked non fraud procedure, indicating the transaction was bona fide, so depriving the purchaser of ITC would be arbitrary under Article 14. The court distinguished assessment under non fraud and fraud processes and applied the ratio in Sahil Enterprises to hold the purchaser not liable for the seller's failure to remit collected tax. The impugned order was set aside and ITC of Rs. 22,09,964/- was directed to be allowed forthwith.
Denial of input tax credit (ITC) was considered where no finding of collusion, fraud, or mala fide conduct existed; the authority invoked non fraud procedure, indicating the transaction was bona fide, so depriving the purchaser of ITC would be arbitrary under Article 14. The court distinguished assessment under non fraud and fraud processes and applied the ratio in Sahil Enterprises to hold the purchaser not liable for the seller's failure to remit collected tax. The impugned order was set aside and ITC of Rs. 22,09,964/- was directed to be allowed forthwith.
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