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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.
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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
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    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.
    Case LawsGST
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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.
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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.
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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.
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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.
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    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.
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    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
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    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.
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    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
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    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
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    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
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    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 concessional rates of BCD prescribed in notification no. 50/2017 - Customs dated 30.62017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting following entries of notification No. 50/2017-Customs dated 30.6.2017.

      3 February, 2020

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      Budget 2020-21 + FINANCE BILL, 2020

      S. No.

      S. No. of Notification No 50/2017-customs

      Description

      1.

      5

      Tuna bait [0303]

      2.

      7

      Goods upto an aggregate of ten thousand metric tonnes of total imports of Milk and cream, in powder, granules or other solid form in a financial year. [0402 10, 0402 21 00]

      3.

      7A

      Whey, concentrated, evaporated or condensed, liquid or semi-solid [0404 10 10]

      4.

      7B

      Other Whey [0404 90 00)

      5.

      8

      Butter Ghee, Butter Oil [0405]

      6.

      9

      Other cheese [0406 90 00)

      7.

      10

      Pancreas (Products of animal origin, not elsewhere specified) (Chapter 5]

      8.

      11

      Conch shell [0508 00]

      9.

      18

      Bulbs or tubers, other live plants [0601 or 0602]

      10.

      36

      All goods other than meslin or wheat [1001]

      11.

      38

      Meslin [1001]

      12.

      40

      Maize upto an aggregate of five lakh metric tonnes of total imports of such goods in a financial year [1005 90]

      13.

      47

      Sugar beet seeds [1209 10 00)

      14.

      56

      Edible oils [1508, 1512, 1513, 1514, 1515 or 1511 10]

      15.

      58

      Refined vegetable oils of edible grade, in loose or bulk form (other than palm oil) [chapter 15]

      16.

      59

      Vegetable oils of edible grade, in loose or bulk form (other than those specified against S. No. 58 and palm oil), imported for the manufacture of oil commonly known as “Vanaspati” or for refining.

      Explanation. -The expression “Vegetable oil” means-

      (a) in the case of cottonseed oil, oil having a free fatty acid content of at least 0.2%; and

      (b) in the case of any other vegetable oil. oil with free fatty acid content of at least 0.5%. [15]

      17.

      68

      Crude sunflower seed or safflower oil upto an aggregate of one lakh and fifty thousand metric tonnes of total imports of such goods in a financial year [1512 11]

      18.

      69

      Crude sunflower seed or safflower oil other than those specified against S. No. 68 [1512 11]

      19.

      72

      Refined rape, colza or mustard oil upto an aggregate of one lakh and fifty thousand metric tonnes of total imports of such goods in a financial year (1514 19 or 1514 99]

      20.

      78

      Margarine, animal or vegetable oils of edible grade [1517 or 1518]

      21.

      83

      Glycerol, crude; glycerol waters and glycerol lyes, (other than crude glycerin) [1520 00 00]

      22.

      88A

      Raw Sugar upto an aggregate of three lakh metric tonnes of total imports of such goods. Provided that the import of raw sugar in physical form is completed within sixty (60) days from the date of issue Of the Tariff Rate Quota Allocation Certificate or license by Directorate General of Foreign Trade (DGFT) to the importer. Provided further that the importer shall convert the raw sugar into white/ refined sugar within a period, not exceeding thirty (30) days, from the date of filing of bill of entry or the date of entry inwards, whichever is later [1701]

      23.

      89

      Dextrose Monohydrate [1702)

      24.

      92

      Molasses resulting from extraction or refining of sugar [1703]

      25.

      93

      Chewing gum whether or not sugar coated [1704 10 00]

      26.

      94

      Food preparations, for infant use and put up for retail sale, of-

      (i) goods of headings 0401 to 0404, containing cocoa calculated on a totally defatted basis, in a proportion by weight of 5% or more but less than 10%; or

      (ii) flour, meal, starch or malt extract containing cocoa calculated on a totally defatted basis, in a proportion by weight of 40% or more but less than 50% [1806 90)

      27.

      95

      Preparations for infant use put up for retail sale [1901 10]

      28.

      98

      preserved potatoes [2004 10 00]

      29.

      99

      Peanut Butter [2008 11 00]

      30.

      105

      Wine, for use as sacramental wine [22]

      31.

      108

      Angostura bitters [2208]

      32.

      113

      Fin fish feed [2301 20, 2309 90 32, 2309 90 39]

      33.

      115

      Dietary soya fibre [2304]

      34.

      148

      Naphtha, when imported by Ratnagiri Gas and Power Private Limited (RGPPL), for use in generation of electricity in the power plants of Ratnagiri Gas and Power Private Limited (RGPPL) at Dabhol, District Ratnagiri, Maharashtra [2710]

      35.

      149

      Naphtha, when imported for generation of electrical energy by a generating company as defined in section 2(28) of the Electricity Act, 2003 (36 of 2003) to supply electrical energy-or to engage in the business of supplying electrical energy [2701]

      36.

      152

      Propane, Butane [2711 12 00, 2711 13 00]

      37.

      160

      Electrical energy [ 2716 00 00]

      38.

      170

      Phosphoric acid, for the manufacture of fertilizers(28]

      39.

      212

      Japanese Encephalitis (JE) vaccine, imported by the Andhra Pradesh Government through UNICEF [30]

      40.

      220

      Kyanite salts, in a form indicative of their use for manurial purpose [31]

      41.

      243

      Isolated soya protein [3504]

      42.

      244

      Colour positive unexposed cinematographic film in jumbo rolls and colour negative unexposed cinematographic film in rolls of 400 feet and 1000 feet [37]

      43.

      245

      Instant print film [3701 20 00 or 3702]

      44.

      246

      Cinematographic films, exposed but not developed [3704]

      45.

      247

      Promotional material (like Trailers, making of film etc.) imported in the form of electronic promotion kits (EPK)/ beta cams (Any Chapter)

      46.

      263

      The following polymers of ethylene, namely: -

      (i) Cow density polyethylene (LDPE),

      (ii) Linear low-density polyethylene (LLDPE),

      (iii) High density polyethylene (HDPE),

      (iv) Linear medium density polyethylene (LMDPE),

      (v) Linear high-density polyethylene (LHDPE) [3901]

      47.

      264

      All goods other than poly 'so-butylene [39021

      48.

      266

      All goods [3903]

      49.

      274

      Compostable polymer or bio-plastic used in the manufacture of bio degradable agro mulching films, nursery plantation pots and flower pots [3913 90 90]

      50.

      275

      Water blocking tape for use in the manufacture of insulated Wires and cables falling under heading 8544 (except sub-heading 8544 11) [3919 90 90]

      51.

      278

      Subbed polyester base, imported by M/s. Hindustan Photo Films Manufacturing Company Limited, Udhagamandalam for the manufacture of medical or industrial X-ray films and graphic art films [39201

      52.

      286

      Patent leather [4114 20 10]

      53.

      287

      Raw furskins [4301). tanned and dried furskins [4302]

      54.

      386

      Lead bars. rods. profiles and wire [7806]

      55.

      388

      Zinc tubes, pipes and tube or pipe fittings [7907]

      56.

      389

      Tin plates, sheets and strip, of a thickness exceeding 0.2 mm; tin foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2 mm; tin powders and flakes [8007]

      57.

      398

      Parts and components of the goods specified in List 10 required for use in high voltage power transmission project (Any chapter]

      58.

      401

      All items of equipment including machinery and rolling stock, procured by or on behalf of Delhi Metro Rail Corporation Ltd. for use in-

      (i) Delhi MRTS Project Phase-I, and

      (ii) Specified corridors of Delhi MRTS Project Phase-Il, comprising of the following, namely: -

      (a) Vishwavidyalaya- Jahangirpuri;

      (b) Central Secretariat-Qutab Minar (via All India Institute of Medical Sciences);

      (c) Shahdara- Dilshad Garden;

      (d) Indraprastha-New Ashok Nagar;

      (e) Yamuna Bank-Anand Vihar-lnter State Bus Terminus; and

      (f) Kirti Nagar-Mundka (along with operational Link to Shahdara- Rithala corridor) (Any Chapter)

      59.

      412

      Goods specified in List 15 required for construction of roads [84 or any other chapter]

      60.

      447

      The following goods required for manufacture of Optical disk drives (ODD), namely: -

      (i) Pick up assembly

      (ii) Digital signature procession integrated circuit

      (iii) DC motor

      (iv) LDO voltage regulator [84 or Any other Chapter]

      61.

      456

      The following goods, namely: -

      (a) Sprinklers and drip irrigation systems for agricultural and horticultural purposes;

      (b) Micro Irrigation equipment [8424]

      62.

      457

      Poultry incubators and brooders [8436 21 00]

      63.

      459

      Parts for manufacture of printers falling under sub heading 8443 32 (except 8443 99 51, 8443 99 52, 8443 99 53) [8443]

      64.

      465

      CD -Writers (8471]

      65.

      474

      MP3 or MP4 or MPEG 4 player with or without radio or video reception facility [85]

      66.

      483

      One set of pre-recorded cassettes accompanying books for learning languages and essential complement to such books, [85]

      67.

      484

      Audio cassettes, if recorded with material from books, newspaper or magazines, for the blind [85]

      68.

      515

      Colour television picture tubes for use in the manufacture of cathode ray televisions [8540 11]

       

       


      Full Text:

      Budget 2020-21 + FINANCE BILL, 2020

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      ActsIncome Tax