Tax INFORM- December 2024

The forty-seventh issue of our monthly tax newsletter, Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax:

Domestic Tax Rulings:

• Reassessment proceedings involving tax liability below Rs. 50 lakh are to be dropped.
• A reassessment notice issued in the name of a dead person can be challenged by a legal representative.
• CBDT is directed to apply the VsV Scheme to taxpayers whose due date for filing an appeal has not expired.
• Surrender of rights in patent and trademark pursuant to a co-marketing agreement is capital receipt.
• Revision u/s 263 is unsustainable if CIT fails to show perceived tax liability to be prejudicial to Revenue.

Notifications/ Circulars:

• Notification No. 6/2024: Specifying Forms prescribed in Appendix-II of the Income Tax Rules 1962, to be furnished electronically under sub-rules (1) and (2) of Rule 131 of the Income Tax Rules 1962.

Indirect Tax: 

Goods & Services Tax

 

Case Laws:

• Flavoured milk would fall under Tariff Heading 0402 and cannot be treated to fall under 2202.
• Assessee cannot be deprived of the amount of interest on account of interstate dispute between Central and State authorities.
• Telecommunication towers are movable items of essential equipment.
• For a project spread across two states, tax liability has to be discharged to the extent of work executed in both states.
• Taxpayer eligible for refund of IGST on ocean freight subsequent to striking down of Notification No.10/2017 SC in Mohit Minerals case.

Central Excise

Notifications/ Circulars:

• Notification No. 30/2024: Withdraw RIC on export of motor spirit.
• Notification No. 29/2024-GST: Withdraw SAED on production of petroleum crude and on export of aviation turbine fuel, motor spirit.