Cases Reported in ITR| Latest Cases on Income Tax Laws
Explore the latest cases reported in Income Tax Reports (ITR) Volume on Return of Income, Royalty, Exemptions, Investment business, Reassessment, Appeal and much more.
royalty
Read why SC held that State Government can levy royalty on production and disposal of brick earth being a minor mineral
On 01-06-1958, the Government of India published a notification in the exercise of powers conferred under Section 3(e) of the Mines and Mineral (Regulations and Development) Act, 1957 by which brick earth was declared a minor mineral within the meaning of the 1957 Act.
2024: A Year of Bold Dissents in the Face of Landmark Verdicts
2024 was a year of pathbreaking verdicts on several issues such as Electoral Bonds, Citizenship Act, Tax/Royalty on Mines, Minority Institutions etc. Some major issues saw unanimous and near unanimous verdicts by the Supreme Court; however, there were notable Dissenting Opinions in 2024 which shed light on several key legal concepts.
Computation of royalty a Policy matter, but Court can’t ignore prima-facie anomaly in the computation mechanism: SC
Even though the Court declined to declare Explanations to Rule 38 of MCR, 2016 and Rule 45(8)(a) of MCDR, 2017 as unconstitutional, it took strict note of the anomaly in the provisions vis-a-vis computation of royalty to be levied for the extraction or consumption of mined ores and gave the Respondents one last chance to resolve the issue.
Justice BV Nagarathna: Igniting Hope for the First Ever Woman Chief Justice of India
Justice B. V Nagarathna who is currently serving as a Judge of Supreme Court of India, formerly served as a Judge of Karnataka High Court until her elevation to the Supreme Court. Justice Nagarathna is also the potential contender for the first ever woman Chief Justice of India.
Read Justice BV Nagarathna’s sole dissent in SC’s verdict on ‘royalty’ as tax and States power to levy cess on mineral rights
“Royalty is in the nature of a tax or an exaction. It is not merely a contractual payment but a statutory levy under Section 9 of the MMDR Act.”
Supreme Court on Parliament’s power to impose limitations on State to levy tax on mineral rights
Supreme Court said that authorizing the Central Government to lay down the terms of mining leases and grant approval to concessions, the MMDR Act seeks to ensure that there is uniformity in the terms for working of mines and extraction of minerals.
Explained | Supreme Court’s verdict on ‘royalty’ as tax and States power to levy cess on mining and mineral-use activities
“The payments made to the Government cannot be deemed to be a tax merely because the statute provides for their recovery as arrears”.
Supreme Court holds that States can levy cesses on mining and mineral-use activities; Justice BV Nagarathna dissents
This matter was the oldest pending nine-judge Bench case before the Supreme court. The Bench had reserved its judgment in the matter on 14-03-2024
‘Difference between amount payable as condition of import and sale of goods’; CESTAT quashes order including royalty in transactional value of imported raw materials
The Tribunal stated that there is no such condition in the Technology License Agreement which provides that royalty payment is a pre-condition for sale/import of raw materials and there is no evidence to establish how the royalty payment is linked to the import of raw materials.
Subscription amount received from e-journals cannot be treated as royalty: Delhi High Court
“For a service to be categorized as a technical service, it has to be concerned with applied science, i.e., using scientific knowledge for practical applications, or industrial science concerning, relating to, or derived from industry.”
Karnataka High Court rejects Xiaomi Technology’s challenge to the constitutional validity of S. 37-A of FEMA
While Xiaomi’s petition was held to be maintainable on the fulcrum of Article 14, however, the impugned provision as per the High Court did not manifest any arbitrariness.
Delhi High Court denies Nokia’s plea of directing Oppo to pay royalty to Nokia under Order 39 Rule 10 CPC in Standard Essential Patents (SEPs) case
Delhi High Court: In a case where application was filed by Nokia under Order 39 Rule 10 of CPC, the
Mad HC decides on includability of royalty / guarantee commission in business profit for the purpose of calculation of deduction under S 80 HHC of IT Act
Madras High Court: A Division Bench of R Mahadevan and Sathya Narayan Prasad, JJ. dismissed the tax appeal holding that guarantee commission
FEMA Xiaomi Saga
by Dr Srikant Parthasarathy† and Dr Amirthalakshmi R††
Bom HC | Can a person’s image be used for a commercial purpose, without his/her express written consent? Justice G.S. Patel elaborates directing Amazon Prime to take down the telecast of a movie using a person’s private image
Bombay High Court: G.S. Patel, J., while addressing a matter wherein the offence of defamation has been alleged, expressed: Simply using another’s
Amounts paid by Indian companies to non-resident manufacturers/suppliers for resale/use of the computer software not royalty, hence, not taxable in India: Supreme Court [Read detailed report]
DTAA provisions must be treated as law and followed by Indian courts, notwithstanding what may be contained in the Income Tax Act to the contrary, unless more beneficial to the assessee.
ITAT | India-Germany Tax Treaty | Subscription fee earned by Elsevier for online database held not royalty or fee for technical services, and thus not taxable in India
Income Tax Appellate Tribunal (ITAT): A two-member Bench of Saktijit Dey, Judicial Member and Manoj Kumar Aggarwal, Accountant Member, allowed the appeal
MP HC | Vehicle of first-time offender not to be confiscated where rule is for penalty of 30 times the royalty of mineral being illegally transported
Madhya Pradesh High Court: This petition was filed before a Division Bench of S.C. Sharma and Virender Singh, JJ., against the order