NICAI Update:
CA Raj Chawla
Quotes of the day,
1. Winning does not always mean being FIRST. Winning means you are doing BETTER than you have Ever Done Before. Never Stop Trying until you are DONE.
2. Happiness is created by Good Experiences.But JOY naturally flows from Pure Hearts. Think all you SPEAK, never SPEAK all you THINK.
NICAI Update:
1. Delhi High Court has directed the Income Tax Department to release the jewellery and cash seized from a family's house, after the latter agreed to deposit advance tax towards their probable tax liability arising from a search operation.
2. A division bench of Justices Dinesh Mehta and Vinod Kumar passed the order while disposing of writ petitions filed by members of a family whose jewellery worth Rs 5.95 Crores and cash/forex amounting to about Rs 40 lakh had been seized during a search conducted under the Income Tax Act, alleging it to be out of the undisclosed income.
3. The petitioners sought release of the seized assets, contending that every seized article is explained/explainable. It was also pointed out that a family wedding was scheduled and that the jewellery was required for the occasion.
4. During the hearing, the petitioners submitted that they were willing to deposit Rs 2.5 crore as advance tax, without prejudice to their rights and contentions, to secure the interest of the Revenue.
Case : W.P.(C) 7448/2025 CM APPL. 41160/2025
KOSHALIYA DEVI RASTOGI
5. Madras High Court has upheld the validity of GST late fees, distinguishing it from tax and penalty. According to the ruling, late fees under Section 47 of the GST Act are regulatory charges intended to defray administrative costs associated with managing delayed compliance and maintaining the integrity of the digital tax ecosystem.
6. Key Points from the Judgment:
Late Fees are Not Penalties: The court emphasized that late fees are distinct from penalties, serving a different purpose. Late fees aim to regulate compliance, whereas penalties are imposed as punishment.
7. No Prior Notice Required: The court ruled that no prior notice or personal hearing is necessary for levying late fees, as the amount is automatically computed based on a fixed, mathematical basis linked to the period of delay.
8. GST Amnesty Scheme Benefits: The court clarified that amnesty benefits cannot be claimed as a matter of right and are available only if taxpayers strictly comply with the conditions and timelines Specified in the relevant notifications.
9. Implications of the Ruling:
Reduced Litigation: The court's distinction between late fees and penalties may reduce litigation and disputes between taxpayers and authorities.
10. Increased Compliance: The ruling emphasizes the importance of timely compliance, encouraging taxpayers to file returns and pay taxes on time to avoid late fees.
11. Fairness and Proportionality: The judgment promotes fairness and proportionality in tax administration, ensure that taxpayers are not unfairly penalized for minor infractions.
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With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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