Seven Important Judgements Of The Courts And Tribunal On Core Legal Issues + Four Articles On Interesting Topics
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Sep 25, 2021, 1:33:48 AM9/25/21
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Dear Subscriber,
Whether interest u/s 234B for default in payment of advance tax due to
non deduction of tax at source by the payer is liable to be paid for AY
2012-13 and earlier years (as the law was amended with effect from AY
2012-13 to specifically provide for levy of interest u/s 234B).
The Apex court relying on judgement of Madras High Court in the case of
CIT, Tamilnadu-I, Madras Vs Madras Fertilisers Limited (1984) 149 ITR
703(Mad) held that as the provisions Section 209(1)(d) warranted payment
of advance tax of an amount by reducing the amount deductible or
collecting as tax at source, the Japanese company could not have been
faulted for non payment of advance tax.
How an ingenious litigant, by taking recourse to a series of proceedings
one after the other, has been successful in blocking the enforcement of
a security interest, created in favour of a secured creditor, thereby
defeating the very purpose for which the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (hereinafter referred to as ‘the SARFAESI Act’) was enacted.
This judgement reiterates the dictum that Litigation doesn’t always pay and truth always prevails.
The Court struck down Rule 6(9) that conferred power upon the Selection
Committee to determine its own procedure for selection of President and
Members of the District and State Commission. The court referred to the
case of All Uttar Pradesh Consumer Protection Bar Association (2018) 2
SCC 225 and held that it would lead to wide variation in standards as
well as a great deal of subjective, bureaucratic and political
interference, and finally it will result in denial of justice which will
be in violation of Article 14 of the Constitution of India.
Harshhvardhan Chhajed v. DGIT (Rajasthan High Court)
The petitioner no. 3 was travelling from Mumbai to Jaipur. He was carrying Jewellery and diamonds. The Jewellery was sent to Jaipur as stock in trade in the course of business. The Income tax Authorities seized the Jewellery. The statement was recorded u/s. 132(4) of the Act the petitioner stated that it was stock in trade, challans and approval memo was also submitted to the Authorities. In spite of producing various documents, the stock in trade was not released. The petitioners filed writ before the High Court. The High Court held that the seizure was illegal and directed to release the stock in trade. The High Court also directed revenue to pay interest of Rs.1 lakh to the petitioners.
Tapas Kumar Basak Vs ADIT (International Taxation) & Ors(Calcutta High Court)
Whether commissioner in exercise of power u/s 264 can revise the order
passed by the AO treating the assessee as a resident even though the
assessee claimed the status of Non resident?
This judgement brings an important point to the forefront that the
proper evidence and documents must be produced before the authorities
below before approaching the writ court under Article 226.
DCIT v. Surbhit Impex Pvt. Ltd (ITAT Mumbai)
It was further observed by the Bench that it’s a pity that sometimes the
departmental appeals are filed without carefully looking at undisputed
foundational facts in a routine manner. In the present case, even though
the Assessing Officer is in appeal, the foundational facts are not even
in disputes and these foundational facts indicate that there was no
remission or cessation of liability in the relevant previous year. Yet,
the Assessing Officer is on appeal. That does not make any sense. It is
hoped that the Income Tax Authorities are more careful in taking a call
on which decisions needs to be pursued in further appeals.
Tribunal held that when the reassessment notice was issued to assess the
excess share premium as income from other sources, however the addition
was made as cash credits under section 68 of the Act, the reassessment
is bad in law.
By CA Rajesh Mehta: Taxation of partnership firms has always been a controversial issue especially with reference to taxability of withdrawal of capital over and above the balance by partners at the time of retirement or receipt of money or assets on reconstitution or dissolution of a partnership firm.
(pdf available for download)
By Advocate Narayan Jain: A will or testament is a legal document by which a person, the testator, expresses his wishes as to how his property is to be distributed after his death. He also names one or more persons, to act as the executor, to manage the estate until its final distribution. For the devolution of property not disposed of by will.
(pdf available for download)
By Justice R. V. Easwar, Senior Advocate, assisted by Advocate Aditya Ajgaonkar: The first seeds of the modern-day system of direct taxation in India, as we know it, were sown by the British. Tax on income was introduced into India by Sir James Wilson and a separate Income Tax Act was passed in the year 1886. This was then replaced by an Act passed in 1918. The Income Tax Act that independent India inherited was the Indian Income-tax Act, 1922, which was an Act to consolidate and amend the law relating to Income Tax and Super Tax and it was only in the year 1962, 1st April, 1962 to be precise, that the Income-tax Act, 1961, came into force.
(pdf available for download)
By Satyaranjan C Dharmadhikari, Advocate and Retired Judge, High Court of Bombay: The dictionary meaning of the word ‘tax’ is a strain or heavy demand, an oppressive or ‘burdensome’ obligation. The dictionary also says ‘tax’ means a call to account. In my humble opinion, we Indians and particularly those who are doing well in life have not understood the fundamental principle of taxing power. The power is utilized in order to create Harmony and balance in the society. It integrates and brings together a huge population divided amongst others Economically. The taxing power is really calling for those in higher income groups and at the top to account for the needs of those who are not so affluent and can safely be termed as deprived sections of the society.
(pdf available for download)
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