CGST Act | Once Returns Are Filed Within Time Period U/S 16(5), Limitation U/S 16(4) Loses Significance: Kerala High Court Allows ITC Claim

The Kerala High Court held that Section 16(5) of the CGST Act (Central Goods and Services Tax Act, 2017), being a non-obstante provision, overrides the time limit prescribed under Section 16(4) once returns are filed within the cut-off date specified therein. Section 16(4) of the Central Goods and Services Tax Act, 2017 specifies that no registered person can take Input Tax Credit (ITC) for any invoice or debit note issued against the supply of goods or services after the due date for...

Income Tax Act | Upkeep & Maintenance Expenses For Rubber Replantation Are Revenue Expenditure, Deductible U/S 37: Kerala High Court

The Kerala High Court held that expenditure incurred on the upkeep and maintenance of rubber trees, including expenses relating to replantation and replacement, is revenue in nature and therefore allowable as a deduction under Section 37 of the Income Tax Act, 1961. Section 37 of the Income Tax Act, 1961, provides that expenses incurred by businesses for raising loans are eligible for deduction. Justices A. Muhamed Mustaque and Harisankar V. Menon were examining the issue regarding...

Bank Not 'Assessee In Default' For Not Deducting TDS On Interest After Accepting Form 15H From Senior Citizens: Kerala High Court

The Kerala High Court held that once a bank accepts valid Form 15H declarations from senior citizen depositors under Section 197A(1C) of the Income Tax Act, it cannot be treated as an “assessee in default” for non-deductions of TDS (deduct tax at source) on interest income. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the bank (appellant) has to be treated as an assessee in default for failure to deduct TDS on interest income paid to senior citizens who have ...

Review Petition Can't Be Entertained Against Order Refusing To Appoint Arbitrator: Kerala High Court

The Kerala High Court held that review petitions challenging orders passed under section 11 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) are not maintainable, reiterating that the arbitration act is a self contained code and does not permit substantive review unless expressly provided. Justice S. Manu dismissed a review petition filed against an order passed by the court refusing to appoint the arbitrator, holding that the High Court becomes functus-officio after...

S.11 Arbitration Plea Not Maintainable Without Valid S.21 Notice; Email Suggesting Arbitrator Appointment Insufficient: Kerala High Court

The Kerala High Court dismissed an arbitration request filed under section 11(6) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) holding that the applicants failed to send a valid notice under section 21 which is a pre-condition for invoking jurisdiction of the court for appointment of an arbitrator. Justice S. Manu held that email relied upon by the applicants merely asking the respondents to suggest an arbitrator did not mention any specific dispute, any arbitration...

Municipality Must Accept Only Tax Component, Penal Charges Not Required For Filing Appeal Under Municipal Act: Kerala High Court

The Kerala High Court held that under Section 509(11) of the Municipality Act, only the tax component shown in the demand notice is required to be paid for filing an appeal. The bench clarified that the Municipality cannot insist on payment of penal interest or any other additional charges for entertaining the appeal. Section 509(11) of the Municipality Act, 1994, provides that no appeal or revision shall be filed against the levy of tax unless the full tax amount shown in the demand...

Kerala High Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand On Puducherry-Registered Car Found Used In Kerala

The Kerala High Court upheld the motor vehicle tax demand on a car registered in Puducherry after finding no evidence that it was actually used there. Justices A. Muhamed Mustaque and Harisankar V. Menon noted that the NIL returns do not reflect any business being carried out by the assessee from Puducherry. The bench opined that the onus shifts to the assessee to show that the vehicle was not being used in Kerala to attract tax. In the case at hand, the assessee/appellant...

Income Tax Appeal Cannot Be Rejected Solely For Assessee's Non-Appearance Before CIT(A): Kerala High Court

The Kerala High Court has held that an Income Tax Appeal cannot be rejected solely for the assessee's non-appearance before the Commissioner of Income Tax (Appeals). Justice Ziyad Rahman A.A. stated that none of the provisions in Section 250 of the Income Tax Act permit the appellate authority to reject the appeal on the ground of non-appearance of the assessee/appellant, without going into the merits of the case. In this case, the assessee/petitioner had filed an appeal,...

Interest On Delayed Agricultural Income Tax Not Deductible U/S 37 Income Tax Act: Kerala High Court

The Kerala High Court has held that interest on delayed agricultural income tax is not deductible under Section 37 Income Tax Act. Section 37 of the Income Tax Act provides deductions on expenses which are directly related to a business's operations. Justices A. Muhamed Mustaque and Harisankar V. Menon examined whether the interest paid on account of the delayed payment of Agricultural Income Tax is eligible for deduction under Section 37 of the Income Tax Act, 1961. The ...

Income From Public Religious/Charitable Trusts Not Eligible For Exemption U/S 10(23BBA) Income Tax Act: Kerala High Court

The Kerala High Court has held that income derived from public religious/charitable trusts is not eligible for exemption under Section 10(23BBA) of the Income Tax Act. Section 10(23BBA) of the Income Tax Act, 1961, provides a complete exemption from income tax for the income of a body or authority that has been established, constituted, or appointed under any Central, State, or Provincial Act specifically for the administration of public religious or charitable trusts or endowments. ...

Classification Of Goods Is Factual Issue, Not For Writ Court To Decide: Kerala High Court Upholds Seizure & Provisional Release Conditions

The Kerala High Court has held that the classification of 'Nata de Coco' is a factual matter that must be decided by the adjudicating authority through statutory proceedings and not by the writ court. Justice Ziyad Rahman A.A. stated that since it is a statutory proceeding contemplated under Section 124 of the Act, which should be followed from the proceedings under Section 110 of the Act, the question as to be sustainability of the classification cannot be considered by this Court in...

Lower Conversion Factor Applicable For Timber Imports Before 11.5.2012: Kerala High Court Allows Refund Of Additional Customs Duty

The Kerala High Court has held that a lower conversion factor is applicable for timber imports made before 11.05.2012. Justice Ziyad Rahman A.A. examined the issue regarding the refund of additional customs duty paid for the import of timber from Myanmar and other foreign countries. The centre of controversy was the conversion factor to be applied for converting the Hoppus Ton, which is the traditional unit of volume applied in Myanmar for the measurement of logs, to the metric...