Income Tax Act | Supreme Court Clarifies Restriction Under S.80-IA(9) On Claiming Cumulative Deductions Under S.80IA & 80-HHC

Answering a reference, the Supreme Court held that deductions under Sections 80-IA/80-IB of the Income Tax Act need not reduce the gross total income before computing deductions under other provisions like Section 80-HH for export profits.The bench comprising Justices Abhay S Oka, Ahsanuddin Amanullah and AG Masih delivered the verdict while answering a reference after a matter was referred...

Admissibility Of Printouts From Seized Electronic Evidence Requires Certificate U/S 36B Of Central Excise Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that admissibility of printouts from seized electronic evidence requires certificate under Section 36B of the Central Excise Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical) has observed that, “that a printout generated from a secondary electronic evidence...

Tax Weekly Round-Up: May 12 - May 18, 2025

SUPREME COURTSupreme Court Upholds Constitutional Validity Of S.5A, Kerala General Sales Tax Act and S.7A, Tamil Nadu General Sales Tax ActCase Title: C.T. KOCHOUSEPH VERSUS STATE OF KERALA AND ANOTHER ETC., CIVIL APPEAL NOS. 941 – 945 OF 2004 (and connected cases)Citation : 2025 LiveLaw (SC) 554The Supreme Court recently upheld the constitutional validity of Section 5A of the Kerala...

Issuance Of Show Cause Notice U/s 74 Of CGST Act Does Not Imply Violation Of Natural Justice: Himachal Pradesh High Court

Section 74: Determination of tax not paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.Himachal Pradesh High Court held that when a show cause notice is issued under Section 74 Of the Central Goods and Services Tax Act, the matter is still at a preliminary stage, and objections can't be raised on...

Excise Duty Under Sugar Cess Act Can Be Claimed As CENVAT Credit: Calcutta High Court

The Calcutta High Court stated that excise duty under sugar tax act can be claimed as CENVAT credit. The Bench consists of Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) was addressing the issue of whether payment of duty under Sugar Cess Act, 1982 can be claimed as Cenvat Credit when the Cenvat Credit Rules does not provide payment of cess under the Sugar...

Sale Of Goods At Concessional Rates Alone Does Not Constitute A Sham Transaction: Jharkhand High Court Quashes SCN

The Jharkhand High Court stated that sale of goods at concessional rates alone does not constitute a sham transaction. The Division Bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan observed that “notices under Section 61 have been issued to assessees and instead of pointing out discrepancies in the returns filed by assessees, the competent officer has embarked...

12% IGST Is Leviable On Imported 'Lemoneez' Drink: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 12% IGST is leviable on imported 'Lemoneez'. The Bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) was addressing the issue of whether 'Lemoneez' is appropriately classifiable under residuary item 2106 90 19 as a soft drink concentrate [under miscellaneous...

Penalty Can't Be Imposed U/S 114AA Of Customs Act On Broker Merely For Failing To Physically Verify Importer's Premises: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that penalty can't be imposed under Section 114AA Customs Act on customs broker merely for failing to physically verify the importer's premises. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that “the allegations that the appellant...

Rampant Misuse Of S.16 GST Act For Wrongful Availment Of ITC Will Create 'Enormous Dent' In GST Regime: Delhi High Court

The Delhi High Court has once again flagged concerns over rampant misuse of Section 16 of the Central Goods and Services Tax Act 2017 by traders, for wrongful availment of Input Tax Credit.The provision enables businesses to get input tax on the goods and services which are manufactured/ supplied by them in the chain of business transactions. It is meant as an incentive for businesses who...

Whether Compensation Cess Is Leviable On Goods Supplied To Merchant Exporter: Gujarat High Court Asks GST Council To Decide

The Gujarat High Court has referred a matter to the GST Council to decide on whether the compensation cess is leviable on goods supplied to merchant exporter. The Division Bench of Justices Bhargav D. Karia and D.N. Ray observed that “……..no notification is issued by the Central Government or State Government under the Compensation Cess Act and therefore, the assessee...

Supreme Court Upholds Constitutional Validity Of S.5A, Kerala General Sales Tax Act and S.7A, Tamil Nadu General Sales Tax Act

The Supreme Court recently upheld the constitutional validity of Section 5A of the Kerala General Sales Tax Act, 1963 and Section 7A of the Tamil Nadu General Sales Tax Act, 1959."The challenge to the constitutional validity must be rejected on the basis of the ratio elucidated by this Court in Kandaswami (supra), Hotel Balaji (supra) and Devi Dass (supra)...Hotel Balaji (supra)...

Jharkhand HC Quashes Provisions Of RTE Amendment Rules Levying Inspection Fee, Security Deposit On Private Schools

The Jharkhand High Court has partly allowed a batch of writ petitions challenging the Jharkhand Right of Children to Free and Compulsory Education (First Amendment) Rules, 2019. The Court struck down as unconstitutional the provisions requiring private schools to pay application and inspection fees and to maintain a security deposit for recognition, holding that the State lacked legal...