Indian Tax Jurisprudence - The Legal Chamber

The Supreme Court delivered a split verdict on the interplay between Sections 144C and 153 of the Income Tax Act, 1961. The key legal question was whether the detailed procedure and timelines under Section 144C for eligible assessees operate within or in addition to the limitation period prescribed under Sections 153 for passing assessment orders. The divergence of opinion led to the matter being referred to a larger bench for final determination. Facts Of The Case: The case involved several foreign companies, including Shelf Drilling Ron Tappmeyer Ltd., engaged in oil exploration in India. For Assessment Years 2014-15 and 2018-19, the companies filed returns declaring losses. Their cases were selected for scrutiny, and the Assessing Officers passed draft assessment orders ...

The Supreme Court upheld the constitutional validity of Section 5A of the Kerala General Sales Tax Act and Section 7A of the Tamil Nadu General Sales Tax Act, ruling that purchase tax applies to taxable goods even when sellers are exempt. It clarified that these provisions constitute independent charging sections, ensuring tax collection when goods otherwise escape sale tax due to exemptions or specific transactional circumstances. Facts Of The Case: The case involved a batch of appeals concerning the applicability of purchase tax under Section 5A of the Kerala General Sales Tax Act, 1963, and Section 7A of the Tamil Nadu General Sales Tax Act, 1959. The appellants, including C.T. Kochouseph and others, were dealers who had purchased goods from sellers exempted from tax under various gov...

Tag: Indian Tax Jurisprudence

Key Income Tax Ruling: Supreme Court Divided on Limitation Period Under Sections 144C & 153

Big Win for State Tax Laws: 3 Clarifies Purchase Tax Scope “Kerala & Tamil Nadu Sales Tax Laws”