CESTAT ruled that statements and WhatsApp messages cannot be treated as evidence for imposing penalties under the Customs Act, 1962 without following procedural safeguards, including examination in chief and cross-examination.
Tribunal held that Section 54F allows exemption only for one residential unit. The assessee’s claim for a second flat was rejected, affirming that multiple units do not qualify unless treated as a single house.
Reopening Based on Incorrect LTCG Information Invalid; Long-Held Penny-Stock Shares Treated as Genuine — ITAT Mumbai Quashes Additions
The Tribunal held that reassessment based solely on a vague Investigation Wing alert, without any independent verification or link to the assessee, was invalid. It ruled that the AO failed to record a proper reason to believe and later assessed an unrelated issue. The entire reassessment was quashed for lack of jurisdiction.
The Court allowed forensic examination of an advocate’s seized CPU under strict safeguards after a GST search raised concerns about attorney-client privilege. It directed limited access, mandated presence of IT experts, and prohibited coercive action pending further review.
The Court set aside an appeal dismissal due to one-day notice for personal hearing. The petitioner will now have a proper hearing with at least a week’s notice.
The Court held that prolonged custody and the documentary nature of the evidence justified bail. The decision highlights that delayed trials in CGST matters should not lead to continued detention.
Additions for alleged on-money payments were disallowed because the evidence relied on by authorities contained errors and lacked authenticity. The decision highlights the need for corroborated, primary evidence in tax proceedings.
The Court held that a tax demand cannot be sustained solely on a fixed 2:1:3 input-output ratio and must be supported by evidence of suppressed outward supply.
The judgment highlights that GST penalties require proof of intent to evade tax; mere technical lapses, such as e-way bill expiry due to traffic restrictions, are insufficient.
