Penalty u/s 51 of Punjab VAT Act whether just and reasonable?

0 comments Saturday, February 16, 2013

Section 51(7)(c) of Punjab VAT Act, 2005 prescribes penalty equal to 50% of the value of goods for not producing requisite documents i.e (Invoice/Delivery challan, Goods Receipt etc.) at the check post or Information collection centre with a view to attempt or avoid or evade the due tax.

Similarly section 51(7)(b) prescribes penalty equal to 30% of the value of goods, if the goods are accompanied with requisite documents but attempt to evade tax or avoidance or evasion of tax is proved.
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Earnest money forfeited is a capital receipt not liable to tax

0 comments Tuesday, February 12, 2013

It is not disputed that there was an agreement to sell between the assessee and M/s Shinestar Buildcon P Ltd. and in terms of the agreement the assessee received Rs. 18 crores as earnest money. Subsequently, the said earnest money was forfeited by the assessee and the same was claimed as capital receipt. Assessing Officer was not satisfied, therefore, a reference was made to Addl. Commissioner of Income Tax, u/s 144 of the IT Act. The Ld. Commissioner of Income Tax (Appeals) has given a categorical finding that in respect of the issue of forfeiture ofearnest money, the Addl. Commissioner of Income Tax, after taking into consideration the provisions of section 51 of the IT Act and decision of the Hon’ble Supreme Court in the case ofTravancore Rubber and Tea Company Ltd., issued directions that forfeited earnest money is not liable to tax and the same is to be considered as charge against the property and value of the property is to be suitably adjusted for the purpose of computation of capital gain, as and when the property is sold.
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Seller is an agent of Government or not-two opposite verdicts

0 comments Sunday, February 10, 2013

Recently Punjab & Haryana High Court in Gheru Lal Bal Chand vs State of Haryana has held that no liability can be fastened on the purchasing registered dealer on account of non-payment of tax by the selling registered dealer in the treasury unless it is fraudulent, or collusion or connivance with the registered selling dealer or its predecessors with the purchasing registered dealer is established.
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Notification levying Institution and Building tax in Punjab quashed being unconstitutional

0 comments Saturday, February 2, 2013

Punjab & Haryana High Court in KRBL Limited vs State of Punjab CWP No. 12965 of 2012 decided on 25th January, 2013 has quashed the notification u/s 3 of Punjab(Institutional and other Buildings) Tax Act, 2011 and the consequential notices issued persuant thereto, levying tax @ Rs. 1 per sq, foot on the basis of floor area on Institutions and Buildings situated outside the municipal areas within Punjab. However the Hon'ble court upheld the constitutional validity of section 3 of the said Act.  

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