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    Case LawsIncome Tax
    Section 153C and the Necessity of AO's Satisfaction: A Detailed Judicial Analysis
    Interpreting E-Way Bill Regulations: High Court's Guidance on Proportionality and Taxpayer Intent
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    Case LawsIncome Tax
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    Seized-material nexus under Section 153C: AO must form reasoned satisfaction before reopening assessments for specific years.
    Section 153C requires the Assessing Officer to form a reasoned satisfaction that seized material during a search has a bearing on an assessee's total income before initiating assessments; mere discovery is insufficient, and the AO must identify specific assessment years, map incriminating material year-wise, and record reasons to justify abatement or reopening.
    Case LawsGST
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    E way bill compliance: omission of conveyance details alone should not justify automatic seizure absent intent to evade tax.
    Omission of the vehicle number in Part B of an e way bill, where goods are transferred to a transporter for onward carriage and tax invoiced at applicable rates with registered parties, does not by itself indicate intent to evade tax. Authorities must apply proportionality and consider relevant exemptions and documentary compliance before resorting to detention or seizure under the e way regulatory scheme.
    Case LawsMoney Laundering
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    Appearance under summons: accused not treated as in custody and need not apply for bail; ED arrest power limited after cognizance.
    Appearance pursuant to a summons under section 44(1)(b) of the PMLA does not amount to custody; section 437 CrPC therefore does not apply solely on that basis. Sections 205 and 88 CrPC apply to PMLA complaints-allowing dispensation of personal attendance and bonds-yet acceptance of a bond under section 88 is not a grant of bail. Special Courts may issue warrants under section 70 for non appearance and may cancel such warrants on undertakings. After cognizance under section 4 on a section 44(1)(b) complaint, ED officers cannot arrest the accused under section 19.
    Case LawsIncome Tax
    Show AI Summary
    Royalty classification of software payments: remittances for software purchases are not treated as royalty under established precedent.
    Where distribution agreements or End User License Agreements do not grant any proprietary interest or a right to use copyright, payments for acquiring computer software are not to be characterised as royalty; this conclusion follows controlling precedent and DTAA considerations and renders an Assessing Officer's contrary classification inconsistent with the correct legal interpretation.
    Case LawsGST
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    Record Maintenance under CGST: due process required before determining tax liability and imposing penalties or confiscating goods.
    The judgment emphasizes that maintenance of accurate records, including electronic records under Section 35, is mandatory; tax determination on unaccounted goods under Section 35(6) must follow the procedural safeguards of Sections 73 or 74, including issuance of a show cause notice; confiscation under Section 130 requires proof of statutory prerequisites such as intent to evade tax or failure to account for goods; and penalties under Section 122 must be categorised according to whether tax evasion is quantified, with non-evastion contraventions attracting the statutory ceiling applicable to that category.
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    Deemed supply from unaccounted stock: tax liability must be determined through assessment procedures, not survey provisions.
    Excess or unaccounted stock discovered during a survey constitutes a deemed supply for tax purposes, but the determination and quantification of tax liability on such deemed supply must be effected through the statutory assessment procedure; invoking the survey-specific provision as the primary basis for separate proceedings is inconsistent with the statutory scheme.
    Case LawsIndian Laws
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    Judicial restraint in writ jurisdiction: Defer to statutory remedies under SARFAESI to preserve sale finality.
    The note explains that High Courts should ordinarily refrain from exercising Article 226 writ jurisdiction where an effective statutory remedy under the SARFAESI Act exists, particularly in recovery matters; confirmed and registered auction sales attain finality and the right of redemption is extinguished, and interference is permissible only in narrow exceptions such as proven fraud, collusion, or clear statutory or procedural violations.
    Case LawsIncome Tax
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    Reopening assessments: procedural compliance and substantive escapement requirements determine validity of reassessment notices.
    The judgment examines validity of notices under Section 148, holding that TOLA does not apply retrospectively for the assessment year at issue and notices issued after the statutory cutoff cannot be back-dated. Notices barred by the limitation in Section 149(1) are ineffective. Procedural prerequisites - notably issuance of a Document Identification Number and issuance through automated allocation by the faceless centre rather than direct action by the Jurisdictional Assessing Officer - are mandatory. Substantively, reopening requires escapement of income in the form of an asset, expenditure, transaction, event, or book entry; a mere change of opinion or dispute over an ordinarily allowed deduction does not meet that threshold.
    Case LawsIncome Tax
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    Faceless assessment: issuance of section 148 reopening notices by jurisdictional assessing officers inconsistent with faceless regime.
    The faceless assessment framework under Section 151A and the Scheme dated 29 March 2022 allocates exclusive jurisdiction to either the Faceless Assessment Officer or the Jurisdictional Assessing Officer for issuance of reopening notices and assessments; actions by an authority outside its assigned jurisdiction are inconsistent with the faceless regime and cause prejudice to the taxpayer as a matter of law.
    NewsBills
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    Income-tax rate scheme for optional new tax regime governs slab-based taxation for eligible individuals, with surcharge and cess.
    The note confirms tax rates for AY 2024-25 remain unchanged in specified statutory sections and in Part I of the First Schedule, reproduces slabbed rates under the optional section 115BAC regime and explains surcharge rules-including staged surcharge percentages, caps where income includes dividends or incomes under sections 111A/112/112A, marginal relief provisions-and that Health and Education Cess at 4% applies on tax inclusive of surcharge.
    NewsBills
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    Deduction of income-tax at source: updated TDS structure for non-resident capital gains and non domestic companies.
    Part II of the First Schedule to the Finance Bill, 2024 prescribes FY 2024-25 rates for deduction of income-tax at source under specified sections; tax is to be deducted per the relevant statutory provisions. The rate for other income paid to a company that is not a domestic company is proposed to be reduced to thirtyfive percent. A revised table sets distinct TDS rates on capital gains for non-residents for transfers before and on or after 23rd July 2024. Other TDS rates generally remain as in the Finance Act, 2023. Surcharge is unchanged and Health and Education Cess remains at four percent for non-residents.
    NewsBills
    Show AI Summary
    Rates for deduction of income tax at source set TDS and advance tax computation, applicable to accelerated assessments.
    Rates for deduction of income tax at source from Salaries and under section 194P and the computation of advance tax are specified in Part III of the First Schedule to the Finance Bill for the relevant fiscal year; those rates also apply to charging income tax in specified accelerated assessment circumstances such as provisional assessment of shipping profits to non residents, assessments of persons leaving India, likely property transfers to avoid tax, and bodies formed for short duration.
    NewsBills
    Show AI Summary
    Concessional tax regime rates set with graduated slabs and capped surcharge for high income taxpayers under new proposal.
    A concessional tax regime under proposed clause (ii) of sub section (1A) of section 115BAC will apply to individuals, HUFs, AOPs, BOIs and certain artificial juridical persons from assessment year 2025 26, prescribing graded tax rates by income band; an opt out under sub section (6) of section 115BAC makes Part III of the First Schedule applicable. Part III also provides age based higher exempt thresholds for resident senior and super senior citizens and includes capital gains under sections 111A, 112 and 112A in taxable income. Surcharge rates rise with income but are subject to caps, specific restrictions for dividend and specified incomes, limits for associations of companies, a reduced cap for persons under sub section (1A) of section 115BAC, and marginal relief at thresholds.
    NewsBills
    Show AI Summary
    Co-operative society tax regime: rates unchanged with tiered surcharge and optional concessional schemes under sections 115BAD and 115BAE.
    Co-operative society tax rates remain unchanged and are set in the First Schedule; tiered surcharge applies with marginal relief to address surcharge effects. A resident co-operative society meeting specified conditions may elect an optional lower tax regime with a prescribed surcharge. A manufacturing co-operative society formed and commenced production within specified dates, foregoing specified incentives and deductions, may opt for a concessional manufacturing tax rate for assessment years from the stated year, with a prescribed surcharge. These measures are provided in the cited clauses and the First Schedule.
    NewsBills
    Show AI Summary
    Surcharge cap on firm tax limits additional levy above the income threshold, preserving tax on threshold plus excess.
    The income-tax rate for firms remains unchanged from the prior year; firms with total income above the threshold face a surcharge on computed income-tax, but the combined tax and surcharge for income exceeding the threshold is capped so it cannot exceed the tax on income at the threshold plus the excess income.
    NewsBills
    Show AI Summary
    Local authority income-tax surcharge capped to limit additional tax burden above the applicable income threshold.
    The income-tax rate for local authorities for FY 2024-25 remains unchanged. A surcharge applies to income-tax where total income exceeds the statutory threshold, calculated as a percentage of income-tax. The combined income-tax and surcharge on income above the threshold is capped so that it does not exceed, by more than the excess income, the income-tax payable on income equal to the threshold.
    NewsBills
    Show AI Summary
    Corporate tax rate changes with maintained surcharge framework, marginal relief and a health and education cess applied to computed tax.
    The Bill sets differentiated corporate tax rates for domestic and non domestic companies, preserves optional lower-tax regimes for qualifying domestic companies, and reduces the non domestic base rate. It maintains surcharge bands for domestic and non domestic entities, provides marginal relief in surcharge computation, excludes surcharge on advance tax for certain specified funds, and imposes a Health and Education Cess on tax computed inclusive of surcharge without marginal relief for the cess.
    NewsBills
    Show AI Summary
    Standard deduction increase under new tax regime raises allowable salary and family pension deductions to incentivize regime shift.
    An amendment makes the standard deduction for salaries and the family pension deduction operate as if the lower statutory caps were substituted by higher caps where income-tax is computed under the specified clause of the new tax regime; these substitutions apply only when tax is computed under that new-regime provision and take effect from the stated future assessment year.
    NewsBills
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    Employer pension contribution deduction increased for employees under new tax regime from assessment year 2025-26.
    Employer contributions to an employee's pension scheme will be deductible to the employer up to 14% of the employee's salary instead of the current 10%; contributions made by non government employers will also be deductible for the employee up to 14% of salary where the employee's pay is chargeable under the alternate tax regime. The amendments apply from 1 April 2025 for assessment year 2025 2026.
    NewsBills
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    Tax incentives for IFSC expanded: wider fund exemptions, clearing house income relief, VC relief, and interest limit carve outs.
    Proposed amendments broaden IFSC tax concessions: include retail schemes and Exchange Traded Funds as specified funds under section 10(4D); exempt specified income of Core Settlement Guarantee Funds by recognising IFSCA market infrastructure regulations; extend section 68 relief to Venture Capital Funds regulated by IFSCA; and exclude IFSC finance companies from the section 94B interest deduction limitation, subject to prescribed conditions. Amendments take effect from 1 April 2025 and apply to the subsequent assessment year.

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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