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    Case LawsIncome Tax
    Jurisdictional Prerequisites for Initiating Reassessment u/s 148: Non-Depoist of TDS by the Employer
    Case LawsIncome Tax
    Revisiting the Scope of "Record" u/s 263: Embracing Subsequent Records
    Case LawsIncome Tax
    Interpreting "Record": Revisiting the Scope of Revision Powers u/s 264 and Rectification of Mistake ...
    The Doctrine of Natural Justice in GST Proceedings: A Case Study on Show Cause Notice u/s 74"
    Input Tax Credit (ITC) and the Concept of "Plant" under GST: Supreme Court
    Case LawsCustoms
    Inordinate Delay in Adjudication: High Court's Stance on Quashing Show Cause Notices
    Case LawsCustoms
    Inordinate Delay in Adjudication: Upholding the Principles of Natural Justice
    Case LawsIncome Tax
    Supreme Court Upholds Validity of Re-Assessment Notices Issued During COVID-19 Lockdown
    Case LawsIndian Laws
    Unraveling the Mineral Rights Regime: The Supreme Court's Landmark Judgment
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    Navigating the Faceless Assessment Regime: A Judicial Perspective
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    Evidentiary Value of Statements Recorded During Income Tax Surveys: A Judicial Analysis
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    Faceless Assessment: Ensuring Compliance with Statutory Provisions
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    Faceless Assessment Mechanism: Jurisdictional Limits in Income Tax Proceedings
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    Reassessment Notices for AY 2013-14: Upholding the Doctrine of Limitation
    Principles of Tax Fairness and Mens Rea: Quashes Penalty for Mere Technical Errors
    Case LawsIncome Tax
    Decoding the Mandatory Timelines: A Thorough Examination of the Income Tax Assessment Order Nullific...
    Expiry of E-Way Bill AND Mens Rea: Technical Violation Alone Insufficient for Penalty Imposition
    Maintainability of Appeals: High Court Upholds Strict Interpretation of Limitation Provisions in GST...
    Case LawsIncome Tax
    Stay of Tax Demand: Interpreting the Discretionary Power u/s 220(6) of the Income Tax Act
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    Case LawsIncome Tax
    Show AI Summary
    Jurisdictional prerequisite: notice in the name of a deceased person invalidates reassessment initiation under Section 148.
    A notice under Section 148 issued in the name of a deceased person is a jurisdictional defect because a valid notice to the correct person is a condition precedent to reopening an assessment; legal representatives have no statutory duty to intimate death; where salary tax has been deducted at source, reassessment cannot be pursued against the deceased or their representatives, and employer non-deposit of TDS does not create an outstanding demand against the assessee or their legal representatives.
    Case LawsIncome Tax
    Show AI Summary
    Revisional power: Commissioner may consider subsequent records available at time of examination in tax proceedings.
    The Court construed the Commissioner's revisional power to permit consideration of all materials relating to the proceeding that are available at the time of his examination, including documents and valuation reports that came on the file after the assessment order; the Explanation to the provision was read as clarificatory, giving an inclusive meaning to "record" rather than restricting it to what the Assessing Officer had when passing the assessment.
    Case LawsIncome Tax
    Show AI Summary
    Revision powers under section 264: Commissioner must consider expanded record and rehear revision petitions on merits.
    The Court held that the Commissioner must consider a revision petition on its merits and that the term record in revision proceedings extends beyond the return and assessment order to include material from other sources and prior assessments. It emphasised consistency in treatment of continuing transactions and required the Principal Commissioner to take into account all relevant materials, identify any apparent mistakes, afford a personal hearing, and pass a reasoned order within a short timeframe.
    Case LawsGST
    Show AI Summary
    Natural justice in tax proceedings: show cause notices must allege fraud or concealment before enhanced recovery is invoked.
    The court quashed the enhanced-provision show cause notice for failing to allege the essential elements of fraud, willful misstatement, or suppression of facts and held that the enhanced regime may be invoked only when the adjudicating authority is prima facie satisfied of those elements and records that satisfaction in the notice; absent such express allegations the proceedings are without jurisdiction though fresh proceedings may be initiated with a proper notice.
    Case LawsGST
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    Plant classification under GST: functionality test determines ITC eligibility for buildings serving special technical requirements.
    The expression plant or machinery in Section 17(5)(d) of the CGST Act must be interpreted by reference to functionality rather than by equating it with the statutory definition of "plant and machinery." A building qualifies as a plant for ITC purposes if, on the facts, it was planned and constructed to serve the assessee's special technical or operational requirements. The functionality test is fact-specific and requires case-by-case analysis of the building's role in the assessee's business.
    Case LawsCustoms
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    Inordinate delay in adjudication bars further proceedings on stale show cause notices absent a reasonable explanation.
    The court found the delay from 2008 to 2021 inordinate and unexplained, concluding the respondents did not provide a reasonable explanation; the delayed transfer to the call book without intimation breached statutory intimation requirements, and established precedent limits reliance on higher authority to excuse gross unexplained delays in adjudication of show cause notices.
    Case LawsCustoms
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    Inordinate delay in adjudication undermines procedural fairness and bars continuation of prolonged, unexplained proceedings.
    The court found that prolonged, unexplained delay in adjudicating a show cause notice breached procedural fairness and natural justice, causing irretrievable prejudice by impairing evidence preservation and business planning. Delay attributable to the revenue authorities, contrary to Tribunal directions for timely disposal, rendered continuance of proceedings unsustainable and emphasized the necessity of justifying delay and ensuring timely adjudication.
    Case LawsIncome Tax
    Show AI Summary
    Pandemic relief legislation upheld: re-assessment notices issued during lockdown remain valid despite later procedural rule.
    The court interpreted the pandemic relief legislation as providing comprehensive relief that extended to procedural obligations in force at the time of issuance, not confined solely to extensions of time. It applied the principle that statutes operate prospectively and concluded the later-introduced procedural provision does not apply retrospectively to invalidate earlier-issued re-assessment notices, limiting its analysis to the validity of issuance and not the merits of re-assessment proceedings.
    Case LawsIndian Laws
    Show AI Summary
    Central legislative competence over mineral regulation affirmed; royalties characterised as compensation for resource depletion, limiting state levies.
    The Court concluded that the central legislative framework occupies the field of mineral regulation and that royalties are compensation for depletion of state-owned natural resources, not conventional taxes; consequently the Centre may impose such levies while States remain constrained from imposing royalties in the nature of compensation that would encroach on the Centre's exclusive regulatory domain.
    Case LawsIncome Tax
    Show AI Summary
    Faceless assessment mechanism requires reassessment steps to follow a centralized faceless procedure, otherwise territorial officer lacks jurisdiction.
    The Scheme framed under the enabling provision must be read to include preliminary proceedings linked to reassessment, so that reassessment initiation and related steps follow the faceless mechanism; concurrent exercise of territorial and faceless functions would undermine the Scheme's purpose and render steps taken outside the faceless protocol inconsistent with the statutory framework.
    Case LawsIncome Tax
    Show AI Summary
    Evidentiary value of survey statements: survey disclosures lack conclusive weight and require independent corroboration.
    Statements recorded during a tax survey are permissive and not taken on oath, so they are not conclusive evidence by themselves; they cannot be treated as inherently incriminating material to justify reopening assessments or making additions without independent corroboration, and must be recorded free of coercion in line with administrative instructions and judicial precedents.
    Case LawsIncome Tax
    Show AI Summary
    Faceless assessment jurisdiction: JAO lacked authority under the statutory faceless procedure, invalidating improperly issued notices.
    The court determined that reassessment notices and related proceedings were inconsistent with the statutory faceless assessment framework because they were issued without following the prescribed allocation of jurisdiction and procedural sequence under the faceless mechanism; administrative orders purportedly exempting cases were not read to displace the statutory requirements and earlier precedent interpreting the faceless provisions was applied.
    Case LawsIncome Tax
    Show AI Summary
    Faceless Assessment: statutory scheme governs jurisdiction and extends to central and international taxation proceedings.
    The court analysed Section 151A read with Sections 144B and 148A and held that administrative instructions dated March 31, 2021 and September 6, 2021 issued under section 119 apply only to assessment orders and do not extend to proceedings under Sections 148A and 148; those instructions cannot be read into the scheme notified on March 29, 2022. The mandatory faceless procedure under Sections 144B and 151A applies to notices and proceedings, including central charges and international taxation charges, and notices issued outside that mechanism fall outside the statutory jurisdictional framework.
    Case LawsIncome Tax
    Show AI Summary
    Doctrine of limitation prevents revival of lapsed reassessment powers; administrative instructions cannot "travel back in time."
    The court held that when the right to reopen assessment had already lapsed under the pre amended limitation regime, subsequent amendments or administrative instructions could not revive that right; administrative attempts to "travel back in time" and extend limitation were invalid, assessees retain the defence of limitation, and pandemic era notifications did not cover years whose limitation had already expired.
    Case LawsGST
    Show AI Summary
    Mens rea requirement in tax penalties: technical errors without intent cannot justify penalty imposition under GST compliance.
    Requirement of mens rea for imposition of tax penalties is central where e Way Bill compliance is questioned. Mere procedural or timing inconsistencies, without evidence of intent to evade tax and where valid tax invoices accompany the goods and tax has been charged, do not justify penal action. Authorities must establish culpable intent with cogent reasoning and comply with procedural and natural justice safeguards before imposing penalties.
    Case LawsIncome Tax
    Show AI Summary
    Mandatory timelines under Section 144C require assessments to be completed within the prescribed month after DRP direction, else invalid.
    Once the DRP framed directions, the Assessing Officer was obliged to complete the assessment in conformity with those directions within one month from the end of the month in which the DRP's direction was served; service by uploading the DRP directive on the ITBA portal constitutes valid service for computing that period. The procedure does not envisage further involvement of the Transfer Pricing Officer once the DRP's direction is issued and an order under the transfer pricing provision has been remitted to the AO.
    Case LawsGST
    Show AI Summary
    Mens rea requirement: technical expiry of an e way bill alone cannot justify a tax penalty without intent to evade.
    The court held that a purely technical lapse in E Way Bill formalities - where goods were otherwise covered by two e invoices and two E Way Bills and there was no dispute on consignor, consignee or goods - does not demonstrate the mens rea necessary to impose a penalty under the tax penal provision; authorities' focus on the expired E Way Bill alone was legally insufficient given documentary explanations and absence of intent to evade tax.
    Case LawsGST
    Show AI Summary
    Exclusion of Limitation Act: GST Act's specific appellate time limits operate as a self contained code, barring general extensions.
    The court analysed whether the GST Act's appellate limitation regime operates as a complete code excluding the general Limitation Act. It applied the principle that fiscal statutes with detailed procedural and temporal rules are to be strictly construed, treating the special statute's limitation provision as implying exclusion of the Limitation Act's extension mechanism, and emphasised policy aims of expeditious dispute resolution, revenue certainty and administrative finality.
    Case LawsIncome Tax
    Show AI Summary
    Assessing Officer discretion in granting stay of tax demand cannot be rigidly constrained by administrative OMs, requiring case specific consideration.
    The Assessing Officer's discretionary power under section 220(6) to grant stay of tax demand is not fettered by CBDT Office Memorandums; those OMs are administrative guidelines and do not mandate a uniform pre deposit. The AO must consider prima facie case, likelihood of success, and undue hardship and may require a higher, lower or no deposit depending on case specific facts. Administrative adjustment of refunds without considering a pending stay application was held arbitrary and the matter was remitted for reconsideration applying these principles.
    Case LawsIncome Tax
    Show AI Summary
    Technical services interpretation requires specialized expertise and a demonstrable link to payments for withholding tax consequences.
    Interpretation of technical services under the India Ireland DTAA requires the application or transfer of specialized knowledge, skill or expertise; incidental training or assistance enabling a reseller to market standard software does not meet that threshold. The Reseller Agreement did not contemplate technology transfer or bespoke solutions, payments were tied to reseller net revenue, and the record lacked material linking remittances to customized technical services. Authorities must establish an evidentiary and contractual nexus between payments and provision of specialized technical services before applying withholding tax under the treaty.

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      Review of Customs duty Exemptions - Review of conditional exemption rates of BCD

      24 July, 2024

      Contents
      Notifications
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      Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

      (i) The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

      S. No.

      S N of 50/17-Cus

      Brief Description

      1.

      17

      Specified Planting materials, namely, oilseeds, seeds of vegetables, tubers, etc.

      2.

      80A

      Algal oil for manufacturing of aquatic feed

      3.

      90

      Lactose for use in manufacture of homeopathic medicines

      4.

      104

      Specified goods used in processing of sea-food

      5.

      133

      Gold ores and concentrates

      6.

      139

      Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)

      7.

      150

      Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)

      8.

      155

      Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit

      9.

      164

      Electrical energy supplied from SEZ unit to DTA

      10.

      165

      Electrical energy supplied from SEZ to DTA

      11.

      172

      Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module

      12.

      183

      Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals

      13.

      184

      Pharmaceutical Reference Standard

      14.

      188

      Goods for manufacture of ELISA Kits

      15.

      191

      Maltol for manufacture of deferiprone

      16.

      204

      Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide

      17.

      237

      Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased)

      18.

      253

      Specified Goods for manufacture of Brushless Direct Current (BLDC) motors

      19.

      257

      Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters

      20.

      257A

      Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter

      21.

      257B

      Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter

      22.

      257C

      Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter

      23.

      258

      Security fibre, threads, Paper based Taggant, M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore.

      24.

      259

      Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper

      25.

      260

      Goods for the manufacture of specified orthopedic implants (902110)

      26.

      261

      Raw material for manufacture of Copper-T Contraceptive

      (i) Alatheon

      (ii) Copper Wire

      27.

      265

      Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic

      28.

      269

      Super absorbent polymer for manufacture of adult diapers and specified goods

      29.

      271

      Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn

      30.

      276

      Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables

      31.

      279

      New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc

      32.

      280

      New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose

      33.

      290

      Wood pulp for manufacture of newsprint, paper or paperboard

      34.

      292

      Goods imported for manufacture of paper, paper boards, newsprint

      35.

      293A

      Newsprint and uncoated paper imported for printing of newsprint

      36.

      296A

      Lightweight coated paper imported by actual users for printing of magazines

      37.

      326

      Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers

      38.

      329

      Pile fabrics for the manufacture of toys

      39.

      333

      Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment

      40.

      334

      (i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers

      41.

      345A

      Simply Sawn Diamonds

      42.

      364A

      Spent catalyst or ash containing precious metals

      43.

      368

      Ferrous Scrap

      44.

      374

      Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel

      45.

      375

      Specified items for manufacture of cold rolled grain-oriented steel (CRGO) steel

      46.

      378

      Metal parts for manufacture of electrical insulators falling under heading 8546

      47.

      379

      Pipes and tubes for use in manufacture of boilers

      48.

      380

      Forged steel rings for manufacture of special bearings for use in wind operated electricity generators

      49.

      381

      Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules

      50.

      392

      Dies for drawing metal, where imported after repairs from abroad

      51.

      403

      Parts and raw materials for offshore oil exploration

      52.

      404

      Specified items including capital goods and raw materials for off shore oil exploration

      53.

      415

      Parts for manufacture of catalytic convertors

      54.

      415A

      Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions

      55.

      416

      Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters

      56.

      417

      Cerium compounds for use in the manufacture of washcoat for catalytic converters

      57.

      418

      Zeolite for use in the manufacture of washcoat for catalytic converters

      58.

      422

      Machinery, electrical equipment for use in semiconductor wafer and LCD

      59.

      423

      Machinery, electrical equipment for use in marking and packaging of semiconductor chips

      60.

      426

      Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell

      61.

      435

      Capital goods for printing industry

      62.

      442

      Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

      63.

      446

      Parts and components for manufacture of tunnel boring machines

      64.

      451

      Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater

      65.

      462

      Ball screws for use in the manufacture of CNC Lathes

      66.

      463

      Linear Motion Guides for use in the manufacture of CNC Lathes

      67.

      464

      CNC Systems for use in the manufacture of CNC Lathes

      68.

      464A

      Goods for manufacture of plastic processing machineries

      69.

      467

      Parts and components of cash dispenser or automatic bank note dispenser

      70.

      468

      Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only)

      71.

      471

      All parts for use in the manufacture of LED lights

      72.

      472

      All inputs for use in the manufacture of LED driver or MCPCB for LED lights

      73.

      476

      Television equipment, cameras etc for taking films, imported by a foreign film unit or television team

      74.

      477

      Filming equipment of foreign origin if imported into India after having been exported therefrom.

      75.

      480

      Goods imported for being tested in specified test centers

      76.

      489B

      Goods for manufacturing of Microphones

      77.

      504

      Parts and Components of Digital Still Image Video Cameras

      78.

      509

      Parts, components and accessories for manufacture of Digital Video Recorder

      79.

      510

       Parts, components and accessories for use in manufacture of reception apparatus for television

      80.

      511

      Parts, components and accessories for manufacture of CCTV Camera

      81.

      512

      Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack

      82.

      512A

      Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly

      83.

      515A

      Open Cell for manufacture of TV Panel

      84.

      516

      The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel

      85.

      517

      Magnetrons for manufacture of domestic microwave ovens

      86.

      519

      Raw materials or parts for use in manufacture of e-Readers

      87.

      523A

      Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells

      88.

      527

      Lithium-ion cell use in manufacture of battery or battery pack

      89.

      527A

      Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile

      90.

      527B

      Lithium-Ion Cell manufacture of battery or battery pack of EV

      91.

      534

      Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)

      92.

      535

      Raw materials for manufacture of aircraft and parts of aircraft

      93.

      535A

      Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence

      94.

      536

      Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts

      95.

      537

      All goods of Heading 8802 (except 88026000-spacecraft)

      96.

      538

      Components or parts, including engines, of aircraft of heading 8802

      97.

      539

      (a) Satellites and payloads; (b) Ground equipment brought for testing of (a)

      98.

      539A

      Scientific and technical instruments etc for launch vehicles and satellites

      99.

      540

      Specified goods imported by scheduled air transporter

      100.

      542

      Specified goods imported by Aero Club, Flying Training Institutes

      101.

      543

      Specified goods imported by non-scheduled air transporter

      102.

      544

      Parts (other than rubber tubes), of aircraft of heading 8802

      103.

      546

      Parts (other than rubber tubes), of aircraft of heading 8802

      104.

      548

      Barges or pontoons imported along with ships

      105.

      551

      Cruise ships, Excursion ships

      106.

      553

      Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up

      107.

      555

      Vessels like warships, lifeboats excluding vessels and floating structure imported for break up

      108.

      567

      Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve

      109.

      569

      Parts required for manufacture of Ostomy products

      110.

      570

      Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof

      111.

      575

      Specified Hospital Equipment for use in specified hospitals

      112.

      578A

      Raw materials, for the manufacture of Cochlear Implants

      113.

      580

      X-Ray Baggage Inspection Systems and parts thereof

      114.

      581

      Portable X-ray machine / system

      115.

      583

      Parts and cases of braille watches, for the manufacture of Braille watches

      116.

      591

      Parts of electronic toys

      117.

      593

      Parts of video games for the manufacture of video games

      Note: Description of entries is indicative. Notification may be referred to for complete description.

      (ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

      S. No.

      S. No. of 50/2017Cus

      Brief Description

      1.

      212A

      Medicines/drugs/vaccines supplied free by United  Nations International Children's Emergency Fund (UNICEF), Red Cross etc

      2.

      213

      Drugs and materials

      3.

      428

      Specified goods imported by accredited press cameraman

      4.

      429

      Specified goods, imported by accredited journalist

      5.

      549

      Capital goods, raw materials and spares for repairs of ocean-going vessels

      6.

      550

      Spare parts and consumables for repairs of ocean going vessels registered in India.

      7.

      577

      Lifesaving medical equipment for personal use

      8.

      607

      Life Saving drugs like Keytruda etc

      9.

      607A

      Lifesaving drugs/medicines for personal use

      10.

      611

      Archaeological artefacts for exhibition in a museum

      11.

      612

      Specified raw material for sports goods

      Note: Description of entries is indicative. Notification may be referred to for complete description.


      Full Text:

      Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

      Topics

      ActsIncome Tax