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Tax Annual Digest 2024

Live Law

SARFAESI Act | Charge Of Secured Creditor Will Precede Over The Charge Based On Dues Of Sales Tax: Gujarat High Court The Gujarat High Court has reiterated that the charge of the Secured Creditor will precede over the charge of an Unsecured Creditor. The bench of Justice B. M. Shyam Prasad has observed that the GSTIN of the recipient organization was not furnished initially, is able to be furnished later, and demonstrates that its services of imparting training to the helicopter pilots were totally Income Tax: Denial of 80lA Benefit In 4th Year Of Assessment, U-Turn By Department Is Not Justified: Delhi High Court The Delhi High Court has held that the Principal Commissioner Income Tax wrongly invoked jurisdiction under Section 263 of the Income Tax Act and fell in error by taking a U-turn in the fourth assessment year, thereby denying the benefit of Section 80IA of the Income Tax Act. Placing reliance on the earlier decision of Delhi High Court in Nestle SA v. Assistant Commissioner of Income Tax, the bench comprising of Acting Chief Justice Manmohan and Justice Mini Pushkarna held “It is settled law that investment in shares in an Indian subsidiary cannot be treated as 'income' as the same is in the nature of “capital account transaction” not giving rise to any income.” S. 80IA Deduction Available To Assessee Engaged In Developing Infrastructure Projects Like Roads, Canals: Gujarat High Court The Gujarat High Court has allowed the deduction under Section 80IA of the Income Tax Act to the assessee engaged in developing infrastructure projects like roads, canals, etc. The Division Bench of Justices Sushrut Arvind Dharmadhikari and Duppala Venkata Ramana observed that “GST Act, 2017 is a special legislation which holistically deals with procedure, penalties and offences relating GST and at the cost of repetition this court cannot emphasise more that the GST Authorities cannot be permitted to bypass procedure for launching prosecution under GST Act, 2017 and invoke provisions of Indian Penal Code only without pressing into service penal provisions from GST Act and that too without obtaining sanction from commissioner under Section 132 of GST Act especially when the alleged actions squarely fall within the precincts of offence as enumerated under GST Act, 2017.” NCLT Order Prevails Over GST Demand, Even If State Is Not Notified About Pending NCLT Proceedings: Andhra Pradesh High Court The Andhra Pradesh High Court stated that National Company Law Tribunal order prevails over Goods and Services Tax demand, even if the state government is not notified about the pending NCLT proceedings. Section 2 in the Entry Tax Act defines only motor vehicle to mean the same as defined in clause of section 2 excluding, inter alia, tractor.” Treaty Provisions Prevails Over Income Tax Act – Receipts From Aircraft Leasing Is Not Taxable As Royalty: Delhi High Court The Delhi High Court held that consideration received by Assessee from aircraft leasing activity is not taxable as royalty either u/s 9 of Income Tax Act or under India-Ireland DTAA.