Canned Pineapple in Syrup is “Processed Food,” not “Fresh Fruit”; Tax Exemption Denied Issue Whether pineapple slices, pineapple tidbits, and fruit cocktails preserved in sugar syrup and packed in vacuum-sealed tin containers fall under the category of “Fresh Fruits” (Entry A-23) of the Bombay Sales Tax Act, 1959, and are thus exempt from tax, or… Read More »
Rule 96(10) Omission Terminates Pending Proceedings: Refund of IGST Allowed Issue Whether the omission of Rule 96(10) of the CGST Rules (which restricted IGST refunds for exporters who imported inputs tax-free) applies retrospectively to abate/quash ongoing proceedings (Summons, SCNs, Appeals) initiated before the omission. Facts The Petitioners: Manufacturer-exporters who had exported goods on payment of… Read More »
Jurisdictional Clash: Can Customs Officers Demand Recovery of IGST Refunds? Issue Jurisdiction: Whether an officer of the Customs Department (specifically Commissioner of Customs, Export) has the jurisdiction to issue a Show Cause Notice (SCN) for the recovery of IGST refunds granted on exports, or if such power lies exclusively with the GST Department. Classification: Whether… Read More »
Reopening Assessment for CSR (Sec 35AC) disallowed without “New Material”; SLP Dismissed Issue Whether an assessment can be reopened under Section 147 to disallow CSR expenditure claimed under Section 35AC (or 80G) based solely on a “change of opinion” regarding the law, without any “fresh tangible material” coming to the Assessing Officer’s knowledge. Facts Assessment… Read More »
Commissioner cannot ignore Binding High Court Precedent citing Pendency of Appeal at Supreme Court Issue Whether the Commissioner, while exercising revisionary powers under Section 264, can refuse to follow a binding decision of the Jurisdictional High Court merely on the ground that the Department has appealed against that decision and the matter is pending before… Read More »
AMP Expenses & Distributor Commissions in MLM not an “International Transaction” Issue Whether Advertising, Marketing, and Promotion (AMP) expenses, specifically commissions paid to distributors by a Multi-Level Marketing (MLM) company, constitute an “international transaction” requiring Transfer Pricing adjustments. Facts Assessee: A manufacturer selling consumer products through direct selling (MLM). The Adjustment: The Transfer Pricing Officer… Read More »
I. Re-deposit of Cash Withdrawn for Salaries during Demonetization Accepted; Addition Deleted Issue Whether cash deposited in Specified Bank Notes (SBNs) during the demonetization period can be treated as unexplained cash credit under Section 68 when the assessee claims it was the re-deposit of cash previously withdrawn for salaries but not utilized due to a… Read More »
Sale of Land Taxed as Capital Gains; Gram Panchayat Certificate Insufficient to Prove Distance from Municipality Issue Whether a certificate issued by a Gram Panchayat is sufficient evidence to prove that agricultural land is situated beyond 8 kms from municipal limits (and thus exempt from Capital Gains Tax), or if a certificate from a competent… Read More »
Reassessment Quashed for “Borrowed Satisfaction”; AO failed to verify Accommodation Entry allegations independently Issue Whether a reassessment notice issued under Section 148 is valid if the reasons recorded by the Assessing Officer (AO) are mere reproductions of a general report from the Investigation Wing (DIT) without any independent application of mind or specific verification of… Read More »
Set-off of Capital Losses Allowed Despite Differing Tax Rates; “Similar Computation” refers to Head of Income Issue Whether an assessee can set off Short-Term Capital Loss (STCL) and brought-forward Long-Term Capital Loss (LTCL) against current year Long-Term Capital Gains (LTCG) under Section 70(2), even if the tax rates applicable to the gains and losses are… Read More »