Tax Cases Weekly Round-Up: 19 November To 25 November, 2023

Update: 2023-11-27 15:30 GMT
Click the Play button to listen to article
story

Delhi High Court Reassessment Notice Severed At Old Address Despite Knowing Assessee’s New Address: Delhi High Court Quashes Assessment Order Case Title: PCIT Versus M/S Dart Infrabuild (P) Ltd. The Delhi High Court has quashed the assessment order as the notice under Section 148 was improperly served as it was sent to the old address, despite the fact that the department was...

Your free access to Live Law has expired
Please Subscribe for unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments, Ad Free Version, Petition Copies, Judgement/Order Copies.

Delhi High Court

Reassessment Notice Severed At Old Address Despite Knowing Assessee’s New Address: Delhi High Court Quashes Assessment Order

Case Title: PCIT Versus M/S Dart Infrabuild (P) Ltd.

The Delhi High Court has quashed the assessment order as the notice under Section 148 was improperly served as it was sent to the old address, despite the fact that the department was aware of the new address.

Seized Cash Should Be Treated As Advance Tax As Per Law, There Was No Default In Payment Of Advance: Delhi High Court

Case Title: Ashok Kumar Aggarwal Versus ACIT

The Delhi High Court has held that the seized cash was offered by the assessee, under the regime that was prevailing then, to be treated as the advance tax, and thus there was no default in payment of the advance. Although its payment or adjustment was triggered due to a search action.

No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court

Case Title: BDR Finvest Pvt. Ltd. Versus DCIT

The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP).

Case Title: DCW Limited Versus Assistant Commissioner of Income Tax

The Bombay High Court has held that the primary facts necessary for assessment are fully and truly disclosed, and the Assessing Officer is not entitled, on change of opinion, to commence proceedings for reassessment.

Orissa High Court

Appeal Against ITAT Order Dismissing Revenue’s Recall Application Does Not Lie Before High Court: Orissa High Court

Case Title: Principal Commissioner of Income Tax-1 Versus Sekhar Kumar Mohapatra

The Orissa High Court has held that the order passed by the Income Tax Appellate Tribunal (ITAT) dismissing the department’s appeal on the ground of the low tax effect is appealable before the High Court under Section 260A of the Income Tax Act, 1961; however, an appeal against the ITAT order dismissing Revenue’s recall application does not lie before the High Court.

Andhra Pradesh High Court

Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically

Case Title: Tikona Infinet Private Limited Versus The State of Andhra Pradesh

The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically.

Punjab And Haryana High Court

Punjab And Haryana High Court Quashes Section 69 Addition On HSBC Geneva Deposits As Sufficient Explanation About Source Of Investments Given On Affidavit

Case Title: Pr. Commissioner of Income Tax-I, Jalandhar Versus Joginder Singh Chatha

The Punjab and Haryana High Court has quashed the addition under Section 69 of the Income Tax Act on HSBC Geneva deposits as a sufficient explanation about the source of investments given in the affidavit.

Madras High Court

Tax Payable After Credit Of Prepaid Taxes Is Less Than Rs.3,000, Prosecution Not Sustainable; Madras High Court

Case Title: Manav Menon Versus DCIT

The Madras High Court has held that prosecution under Section 276CC of the Income Tax Act is not sustainable as the tax payable after crediting prepaid taxes was less than the prescribed sum of Rs. 3,000.

Section 245C(5) Of Income Tax Act Is Read Down By Removing Retrospective Last Date Of 1st Feb 21 As 31st March 21: Madras High Court

Case Title: M/s. Jain Metal Rolling Mills Versus Union of India

The Madras High Court has held that Section 245C(5) of the Income Tax Act, 1961 (as amended by the Finance Act, 2021) is read down by removing the retrospective last date of the 1st February 2021, as the 31st March 2021.

2 Years Limitation To File GST Refund Application Is Directory & Not Mandatory: Madras High Court

Case Title: M/s. Lenovo (India) Pvt. Ltd. Versus JCIT

The Madras High Court has held that the 2-year limitation to file a GST refund application is a directory and not mandatory.

Jharkhand High Court

Jharkhand High Court Rules In Favor of Revenue In Clean Energy Cess Case

LL Citation: 2023 LiveLaw (Jha) 140

Case Title: Central Coalfields Limited vs union of India

The Jharkhand High Court has ruled in favor of the Revenue in a case involving the demand for Clean Energy Cess on coal production.

MP High Court

S.73 CGST Act| ‘No Reasonable Opportunity Granted To Respond’, MP High Court Quashes Show Cause Notice Against Raymond

Case Title: Raymond Limited V. Union of India Represented By Secretary, Department of Revenue & Ors.

Citation: 2023 LiveLaw (MP)

Madhya Pradesh High Court has recently quashed a show cause notice and order of demand issued against Raymond Limited by observing that a minimum of 30 days must be given to afford ‘reasonable opportunity’ for the noticee to respond as per Section 73 of CGST Act.

Kerala High Court

Kerala High Court Rejects Assessee ’s Claim For Service Tax Refund To Meet VAT Demand On Pest Control Contract

Case Title: M/S.Gaiagen Technologies Private Limited Versus State of Kerala

The Kerala High Court has rejected the assessee's claim for a service tax refund to meet the VAT demand on the pest control contract.

Gujarat High Court

IGST Refund On Exported Goods Being Zero Rated Supplies Admissible As Excess Drawback Repaid: Gujarat High Court

LL Citation: 2023 LiveLaw (Guj) 195

Case Title: Adf Foods Ltd. Versus Union Of India

The Gujarat High Court has ruled that the surplus drawback resulting from the utilization of the Cenvat Credit facility was repaid along with interest, and thus, the refund of Integrated Goods and Services Tax (IGST) paid on goods and services for exported goods, classified as zero-rated supplies, is deemed eligible.

Income Tax Act | Valid Show-Cause Notice Crucial For Recovery Under Section 179: Gujarat High Court

LL Citation: 2023 LiveLaw (Guj) 187

Case Title: Bhailal Babubhai Patel Versus The Principal Commissioner Of Income Tax 1

In a recent ruling, the Gujarat High Court has set aside an Income Tax Liability Order, highlighting the crucial requirement of a valid show-cause notice for recovery under Section 179 of the Income Tax Act, 1961.

Income Tax Act | Section 56(2)(Viic) Not Applicable To Fresh Issuances Or Allotments Of Shares By A Company: Gujarat High Court

LL Citation: 2023 LiveLaw (Guj) 188

Case Title: The Principal Commissioner Of Income Tax 1, Ahmadabad Versus Jigar Jashwantlal Shah)

The Gujarat High Court recently delivered a crucial ruling on the interpretation of Section 56(2)(viic) of the Income Tax Act, 1961, stating that the provision does not apply to fresh issuances or allotments of shares by a company.

Reassessment on suspicion to enquire Further is Unsustainable: Gujarat High Court

LL Citation: 2023 LiveLaw (Guj) 189

Case Title: Artiben Amishkumar Patel Versus The Income Tax Officer, Ward 3(2)(1)

The Gujarat High Court has delivered a significant ruling, asserting that reassessment on suspicion for making further inquiry is unsustainable under section 148 of the Income Tax Act.

Income Tax Act | 35(2ab) Deduction Can't Be Denied For Failure Of Authority To Send Intimation: Gujarat High Court Upholds ITAT Decision In Schaeffler India Ltd's Tax Appeal

LL Citation: 2023 LiveLaw (Guj) 190

Case Title: The Principal Commissioner Of Income Tax 1, Ahmadabad Versus Jigar Jashwantlal Shah)

In a recent ruling by the Gujarat High Court, it has been held that the deduction under Section 35(2AB) of the Income Tax Act cannot be denied merely due to the failure of the authority to send intimation.

Gujarat High Court Quashes FIR Against Chartered Accountant Firm In GSLDC Scam

LL Citation: 2023 LiveLaw (Guj) 191

Case Title: Naman Gyanchand Pipara Versus State Of Gujarat & Ors.

The Gujarat High Court has quashed the First Information Report (FIR) against a Chartered Accountant firm in connection with the Gujarat State Land Development Corporation Limited (GSLDC) Scam.

No Reason To Believe Income Chargeable To Tax Escaped Assessment: Gujarat High Court Quashes Income Tax Notice

LL Citation: 2023 LiveLaw (Guj) 192

Case Title: Bhagwati Polyfill Pvt. Ltd. Versus The Assistant Commissioner Of Income Tax

The Gujarat High Court in a recent ruling underscored the importance of tangible evidence and a valid reason to believe that income has escaped assessment in a significant decision regarding the validity of reopening assessments based on reasons lacking a direct connection between the taxpayer and the disputed transaction.

Patna High Court

Petitioner Failed To Avail Appeal Remedy, Can’t Invoke Of The Extraordinary Jurisdiction: Patna High Court

LL Citation: 2023 LiveLaw (Pat) 135

Case Title: M/s Punit Kumar Choubey vs. The Commissioner, Commercial Tax, and Others

The Patna High Court recently ruled on a writ petition challenging an assessment order and the rejection of an appeal based on the limitation ground.

Parties Cannot Deem SGST And CGST As IGST Without Compliance With Taxation Enactment Provisions: Patna High Court

LL Citation: 2023 LiveLaw (Pat) 134

Case Title: M/s. Vishwanath Iron Store vs. The Union of India

The Patna High Court has dismissed the writ petition filed by Vishwanath Iron Store, a partnership firm registered under the Bihar State Goods and Services Tax Act, seeking correction of a GST invoice for the purpose of availing input tax credit, while stating Understanding between parties cannot supersede the provisions of taxation laws.

Allahabad High Court

UP VAT Act | Enhancement Of Turnover Not A Necessary Consequence To Rejection Of Books Of Accounts: Allahabad High Court

Case Title: M/S Sri Shanti Readymade v. The Commissioner, Commercial Taxes

The Allahabad High Court has held that turnover cannot be enhanced merely based on rejection of books of accounts. There has to be material as to suppression of turnover by the assesee to indicate evasion of tax.

Rejection Of Books Of Accounts Under UPVAT Act Will Not Necessarily Lead To Rejection Of Books Under Central Sales Tax Act: Allahabad HC Reiterates

Case Title: M/S Sri Shanti Readymade v. The Commissioner, Commercial Taxes

The Allahabad High Court has reiterated that in absence of any material on record, rejection of books of accounts under local laws cannot be the sole ground for rejection of books of accounts under Central Sales Tax Act.

UPVAT Rules | Stricter Approach To Be Followed Before Giving Benefit Of Exemptions/ Deductions: Allahabad High Court

Case Title: The Commissioner, Commercial Tax U.P. v. S/S Sanya Construction And Developers Pvt. Ltd.

The Allahabad High Court has held that though in case of doubt, taxing statues are to be interpreted in favour of the assesee. However, a stricter approach needs to be followed before giving the benefit of exemptions and deductions.

Case Title: Mrs Lalitha Subramanian v. Union Of India And 3 Others [WRIT TAX No. - 1137 of 2023]

The Allahabad High Court has held that the Goods and Service Tax Department is required to serve notice upon the legal representative of a deceased before proceeding against the deceased under the Central Goods and Service Tax Act, 2017.

Initiation Of Revision Proceedings By Issuing Show Cause Notice And Passing Revision Order Without DIN Are Invalid: ITAT

Case Title: M/s. Nova Properties Private Limited Versus The Pr. CIT-3

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that the initiation of revision proceedings by issuing show cause notice and passing a revision order without a Document Identification Number (DIN) is invalid.

CESTAT

Service Tax Liability Can’t Be Fastened On Compensation Received By Fabindia For Loss Caused By Breach Of Contract: CESTAT

Case Title: Fabindia Limited Versus Commissioner, Central Excise & Central Goods and Service Tax

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax liability cannot be fastened on compensation received by Fabindia for loss caused by breach of contract.

Biscuits Can Qualify As ‘Food Stuff’ To Be Eligible For Service Tax Refund: CESTAT

Case Title: M/s. Bansal Biscuits Private Limited Versus Commr. of Central Excise & Service Tax, Patna

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that biscuits can qualify as foodstuff so as to be eligible for the service tax exemption.

Tags:    

Similar News