Tax Cases Weekly Round-Up: 3 September To 9 September, 2023

Update: 2023-09-11 10:30 GMT
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Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title:...

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Delhi High Court

Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20%

Case Title: Jindal Stainless Ltd Versus DCIT

The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%.

GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court

Case Title: M/S Frequent Logistics Services PVT. LTD. v. Commissioner Goods and Service Tax Department And ORS.

Delhi High Court has recently set aside show cause notice proposing to cancel GST registration and the consequential order cancelling the same on the ground that reasons for cancelling registration of assesee were not clearly mentioned in the show cause notice.

Delhi High Court Upholds Validity Of Rule 8 of Chewing Tobacco And Unmanufactured Tobacco Packing Machines Rules 2010

Case Title: Gopal Corporates LLP Versus Commissioner Delhi-East

The Delhi High Court has upheld the validity of Rule 8 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules 2010 (CTUT), which deals with the alteration in the number of operating packing machines.

Undisclosed Income Taxed In The Hands Of Flagship Company Can’t Be Again Subjected To Tax In The Hands Of Assessee Companies: Delhi High Court

Case Title: PCIT Versus Surya Agrotech Infrastructure Limited

The Delhi High Court has held that undisclosed income taxed in the hands of flagship companies cannot be again subjected to tax in the hands of assessee companies.

Bombay High Court

Write-Off Of A Bad Debt Can’t Be Held To Be An Asset Under Section 153A(1) Of The Income Tax Act, 1961: Bombay High Court

Case Title: Ashok Commercial Enterprises Versus Assistant Commissioner of Income Taxation

The Bombay High Court has held that a write-off of a bad debt cannot be held to be an asset under section 153A(1) of the Income Tax Act, 1961.

Development Agreement Not To Be Treated As Transfer Of Possession Of Land: Bombay High Court Quashes Reassessment Notice

Case Title: Darshana Anand Damle Versus DCIT

The Bombay High Court has quashed the reassessment notice and held that the granting of a licence for the purpose of development of the flats and selling the same could not be said to be granting possession.

Karnataka High Court

No Further Recovery Of Demand Can Be Made When A Fresh Assessment Is Barred: Karnataka High Court Directs Rs.87 Crore Refund To United Spirits

Case Title: United Spirits Limited Versus Assistant Commissioner Of Income-Tax

The Karnataka High Court has held that no further demand can be made for recovery of the balance amount since a fresh assessment is barred. In other words, the tax paid by the assessee must be accepted as it is, and in the event of the tax paid being in excess of the tax liability duly computed on the basis of the return furnished and the rates applicable, the excess shall be refunded to the assessee.

Calcutta High Court

Accused Entitled To Cross-Examine Statements Of Natural Person Recorded Under Customs Act, 1962: Calcutta High Court

Case Title: Monotosh Saha Versus Special Director, Enforcement Directorate, Foreign Exchange Management Act

The Calcutta High Court has held that the accused is entitled to cross-examine natural persons whose statements were recorded under the Customs Act, 1962.

Lawyer-Client Privileged Communication; GST Dept. Can’t Issue Notice To Lawyer : Calcutta High Court

Case Title: Himangshu Kumar Ray Versus State Of West Bengal

The Calcutta High Court has held that the GST department cannot issue notice to the advocate appearing on behalf of the assessee.

Patna High Court

Tax Authorities Should Not Act As Extortionist, Act Like Business Facilitator; Patna High Court Imposes Cost On Officer

Case Title: Sita Pandey Versus The State of Bihar

The Patna High Court has imposed a cost of Rs. 5,000 on officers for surreptitiously making tax recoveries contrary to GST enactment.

Allahabad High Court

Can’t Deviate From Text Of GST Provisions, Rules And Forms In GST: Allahabad High Court Quashes Penalty

The Allahabad High Court has held that the Goods and Service Tax Act, 2017 is a complete code in itself and there can be no deviation from the text of the Act, Rules and Forms.

ITAT

ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists

Case Title: D D & Co. Versus Asst. Commissioner of Income-tax

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.

Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT

Case Title: M/s. Al Telekom Austria Versus The Deputy Commissioner of Income Tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).

No Income Tax Payable On Bonus Shares Under The Head ‘Income From Other Sources’: ITAT

Case Title: DCIT Versus Smt Aruna Chandhok

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not chargeable on bonus shares under the heading ‘income from other sources’.

Income Tax Raid, ITAT Finds Money Laundering, Directs Assessing Officer To Inform SEBI, PMLA Authorities

Case Title: Naresh Manakchand Jain Versus ACIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to share information on all persons allegedly involved in the racket of money laundering.

CESTAT

Excess Amount Paid In Service Tax Can Be Adjusted Against The Short Payment In Education Cess: CESTAT

Case Title: M/s Paharpur Cooling Towers Ltd. Versus Commissioner of Service Tax, Kolkata

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the excess amount paid in service tax can be adjusted against the short payment in education cess.

Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT

Case Title: Shyam Singh Versus Commissioner Custom

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.

CESTAT Quashes Confiscation Of Goods, Imposition Of Redemption Fine, Penalty, Customs Duty Demand In Absence Of CLRI Report

Case Title: M/s. Benign International Versus Commissioner of Customs

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that it quashes confiscation of goods, imposition of redemption fines, penalties, and customs duty demands in the absence of the Central Leather Research Institute, Chennai (CLRI) Report.

Manufacture Of Barges, Cenvat Credit Available On Steel Used: CESTAT

Case Title: Shreeji Shipping Versus Commissioner of Central Excise & ST, Rajkot

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on steel materials used in the manufacture of barges.


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