Delhi High Court

Reassessment Notices Issued Between 1st April 2021 To 30th June,2021 Not Time Barred: Delhi High Court

Case Title: Touchstone Holdings Private Limited Versus Income Tax Officer

Citation: 2022 LiveLaw (Del) 890

The Delhi High Court has held that the reassessment notices issued between 1st April 2021 and 30th June 2021, will be deemed to have been issued under Section 148A of the Income Tax Act.

The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the re-assessment notice dated 29.06.2021, which has been issued within the extended period of limitation, is not time-barred.

Karnataka High Court

Export Of Software Embedded Into Hardware; Sale Proceeds From Export Of Hardware Eligible For Deduction : KarnatakaHigh Court

Case Title: M/s. Subex Limited versus The Deputy Commissioner of Income Tax

Citation: 2022 LiveLaw (Kar) 373

The Karnataka High Court has ruled that where a software embedded into a hardware is exported by the assessee, the proceeds from export of the hardware component is eligible for deduction under Section 10A of the Income Tax Act, 1961, despite the fact that the hardware was separately invoiced and was not manufactured by the assessee, if the software cannot be used independently.

Madras High Court

GST Department Did Not Recognize Concept Of 'Working Day' And 'Holiday' In Matters Of Interception,Seizure, Detention: Madras High Court

Case Title: M/s.D.K.Enterprises Versus The Assistant /Deputy Commissioner (ST)

Citation: 2022 LiveLaw (Mad) 408

The Madras High Court has held that in the matters of interception, seizure, and detention, the GST Department did not recognise the concept of "working day" and "holiday" since substantial civil rights of the parties were at stake.

The single bench of Justice Anitha Sumanth has observed that neither the assessee nor the department could have the luxury of reference to a holiday to delay or protract the proceedings. The acts of interception and retention, though an invasion of the rights of citizens have been accorded statutory sanction in pursuance of the aims and objects of the Goods and Services Act. Thus, it was imperative that the intrusive acts be carried out in strict compliance with the statutory provisions.

Madhya Pradesh High Court

'Mistake In E-way Bill Was Human Error' | Madhya Pradesh High Court Quashes Penalty Under CGST Act

Case Title: Maharaja Cables (C/O Maxwell Logistic Pvt Ltd) Vs Commissioner (GST) State Tax Indore (M.P.)

The Madhya Pradesh High Court recently quashed the penalty imposed under the Central Goods and Service Tax Act, 2017 on a private company after the petitioner argued that the mistake while generating the e-way bill was an inadvertent human error.

The division bench of Justice Sheel Nagu and Justice Virendra Singh, while allowing the appeal, observed that the mistake in the e-way bill was bonafide. However, the court said the authorities will be at liberty to consider the case of the petitioner for the imposition of a minor penalty while treating the mistake in question to be a clerical mistake as per Circular dated 14.09.2018 issued by the Ministry of Finance, Government of India.

Jammu & Kashmir & Ladakh High Court

GST Registration, FSSA License Cannot Be Granted If The Premise Is Under Dispute: J&K&L High Court

Case Title: Parveez Ahmad Baba Versus Union Territory of J&K and others

Citation: 2022 LiveLaw (JKL) 152

The High Court of Jammu & Kashmir and Ladakh has held that the GST Registration cannot be granted if the ownership of the business owner's premise is under dispute.

The single bench of Justice Sanjeev Kumar observed that until the dispute is settled between the parties amicably or through intervention of the Court of competent jurisdiction, neither the designated authority under the Food Safety and Standard Act, 2006 shall issue the licence nor registration shall be accorded under the GST Act to either of the parties in respect of the premises "Samci Restaurant."

Uttarakhand High Court

Amount Paid Under Protest Prior To SCN , Consider As Pre -Deposit Under SVLDR Scheme: Uttarakhand HighCourt

Case Title: Patanjali Ayurved Ltd. Versus Commissioner of Central Excise & Service Tax

Citation: 2022 LiveLaw (Utt) 36

The Uttarakhand High Court has held that the amount paid under protest, towards interest, prior to the issuance of show cause shall be considered as pre-deposit while disposing of the application for a waiver under the 'Sabka Vikas (Legacy Dispute Resolution) Scheme, 2019' (SVLDR Scheme).

The single bench of Justice Sanjaya Kumar Mishra has observed that the statute does not make any distinction between the payment of taxes, interest thereon, or any penalty in the amount which has been deposited during enquiry, investigation, or audit shall be deducted while issuing the statement and shall be adjusted while calculating relief to the declarant.

ITAT

ITAT Allows Wastage Loss Due To Diesel & Petrol Tank Breakage

Case Title: M/s. Mohammad Bhai Esufali & Sons Versus ITO

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the wastage loss due to diesel and petrol tank breakage.

The two-member bench headed by R.S.Syal (Vice President) has observed that where the assessee demonstrates specific reasons for excess wastage/evaporation, such reasons cannot be thrown to the dustbin. They need to be examined on a case-by-case basis.

Serving Of Liquor Is Not A Charitable Activity, Income Tax Exemption Can't Be Granted: ITAT

Case Title: Federation of Delhi Textile Merchants Versus Income Tax Officer

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that serving liquor is not a charitable activity and the income tax exemption cannot be granted.

The two-member bench of Yogesh Kumar (Judicial Member) and Shamim Yahaya (Accountant Member) has observed that the Commissioner of Income Tax (Exemption) has relied on various bills of the Appellant wherein the service of liquor has been mentioned. However, CIT(A) has not mentioned the details of the clarification/reply given by the appellant in the order and has not adjudicated the reply.

Transfer Of Non-Self Generated Goodwill At Book Value; No Tax Can Be Levied Despite Withdrawal Of Tax Exemption: ITAT

Case Title: Dy. Commissioner of Income Tax versus M/s. Univercell Telecommunications India Pvt. Ltd.

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that, where a goodwill is acquired by incurring cost and it is transferred at book value, no tax can be levied on transfer of the goodwill despite withdrawal of exemption on capital gains tax on conversion of a sole proprietary concern into a company, for violation of the conditions provided in Section 47(xiv)(b) of the Income Tax Act, 1961.

The Bench of V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member) held that if the goodwill is acquired by incurring cost and is not self-generated, and if after considering the cost incurred, the capital gains on transfer of the said goodwill amounts to 'nil', then even after invoking Section 47A(3) of the Income Tax Act, there can be no liability with respect to capital gains on conversion of the proprietary concern into a company .

TDS Exemption On Payments To Agents Of Foreign Shipping Companies: ITAT

Case Title: DCIT Versus M/s Expeditors International [I] Pvt. Ltd

The Delhi Income Tax Appellate Tribunal (ITAT) has held that the payments to agents of foreign shipping companies are exempt from TDS deduction.

The two-member bench of Saktijit Dey (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that provisions of section 172 of the Income-tax Act, 1961 apply to payments made to agents of foreign shipping companies; therefore, provisions of section 194C of the Income-tax Act, 1961 do not apply.

Ola Not Liable To Deduct Withholding TDS On Payments To Drivers: ITAT

Case Title: ANI Technologies Private Limited Versus DCIT

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that Ola is not liable to deduct withholding TDS on the payments to drivers.

The two-member bench of Sudhanshu Shrivastava (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that the AO and the CIT(A) erred in concluding that the assessee was providing transportation services which were subcontracted to the driver and, consequently, the assessee was liable to deduct tax at source while disbursing fare to the driver.

AO Not Justified In Disallowing The Claim Of Interest Expense : ITAT

Case Title: Sunny Rock Estates & Developers Pvt. Ltd. Versus Deputy Commissioner of Income-tax

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is not justified in disallowing the claim of interest expense and treating it for capitalization in the project cost.

The two-member bench of Rajpal Yadav (Vice President) and Girish Aggarwal (Accountant Member) has directed the AO to allow the claim of interest expenses of Rs.41,06,890.

Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption

Case Title: Mr. Mohammad Rafiq Ahemadsaheb Kokani Versus The Income Tax Officer

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years.

The two-member bench of S.S. Vishwanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member)has observed that part of the land could not be used for agricultural purposes but grass was grown owing to the conditions of drought. It does not disentitle the assessee as the land was held for agricultural purposes only.

CESTAT

Losses Of Upto 1% Can Be Allowed Without Detailed Scrutiny : CESTAT

Case Title: Hindustan Petroleum Corporation Limited Versus Commissioner of Central Excise, Central Excise Building, Visakhapatnam

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand of excise duty against Hindustan Petroleum and held that losses of up to 1% can be allowed without detailed scrutiny.

The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that there was no allegation, let alone evidence, that the losses were not genuine or that the products were suspected to have been diverted or pilfered.

Basic Customs Duty Exemption On Import Of Colour Data Projectors: CESTAT

Case Title: M/s BenQ India Pvt. Ltd. Versus Additional Director General (Adjudication)

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the import of colour data projectors is exempted from basic customs duty.

The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that for the period prior to 01.01.2017, all goods falling under CTSH 8528 41, 8528 51, or 8528 61 were unconditionally exempted from payment of Basic Customs Duty under Serial No. 17 of the exemption notification. Post 01.01.2017, Serial No. 17 of the notification exempts all goods falling under CTSH 8528 42, 8528 52, or 8528 62 if they are of a kind solely or principally used in an automatic data processing machine of heading 8471. The goods imported by the appellant satisfy the description of the goods in the exemption notification for both periods and are, therefore, eligible for exemption.

Service Tax Exemption Available On Rendering Transmission Of Electricity: CESTAT

Case Title: M/s. KEC International Ltd. Versus Commissioner of CGST

The Chattisgarh Customs, Excise and Service Tax Appellate Tribunal (CESTAT), consisting of Justice Dilip Gupta (President) and P. Anjani Kumar (Technical Member), has held that the service tax exemption is available on the transmission of electricity.

AAR

Works Contract Services Executed To State Government For Construction Of Airport Terminal Building Attracts 18% GST: AAR

Applicant's Name: KMV Projects Limited

The Karnataka Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on the work contract services executed for the state government for the construction of the airport terminal building and greenfield airport.

The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that work contract services executed for Karnataka State Police Housing and Infrastructure Corporation Limited for the Construction of High-Security Prison are liable to tax at 18% GST with effect from 01.01.2022.

Supply Of Ayurvedic Products Under AYUSH Department Licences Attracts 12% GST: AAR

Applicant's Name: M/s. Incnut Lifestyle Retail Private Limited

The Telangana Authority of Advance Ruling (AAR) has ruled that 12% GST is payable on the supply of ayurvedic products under AYUSH department licences.

The two-member bench of B. Raghu Kiran and S.V. Kasi Visweswara Rao has observed that the products which are used for care are treated as "cosmetics" and therefore taxed at 18% GST. 12% GST is payable on the products which are used for cure and are treated as 'Medicaments' falling under Serial No. 63 of Schedule II.

Kingfisher Radler Attracts28% GST and 12% Cess: AAR

Applicant's Name: United Breweries Limited

The Karnataka Authority of Advance Ruling (AAR) has ruled that the Kingfisher Radler attracts 28% GST and 12% Cess.

The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that the product "Kingfisher Radler" has different variants and all the variants merit classification as carbonated beverages of fruit drinks, all covered under tariff heading 2202 99 90.