Tax Cases Weekly Round-Up: 17 To 23 December, 2023

Update: 2023-12-25 05:30 GMT
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Delhi High Court High-End KPO Services Provider Can't Be Compared With ITeS, Which Is BPO Services Provider: Delhi High Court Case Title: PCIT Versus Future First Info. Services Pvt. Ltd. Citation: 2023 LiveLaw (Del) 1301 The Delhi High Court has held that the high-end knowledge process outsourcing (KPO) services provider cannot be compared with...

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Delhi High Court

High-End KPO Services Provider Can't Be Compared With ITeS, Which Is BPO Services Provider: Delhi High Court

Case Title: PCIT Versus Future First Info. Services Pvt. Ltd.

Citation: 2023 LiveLaw (Del) 1301

The Delhi High Court has held that the high-end knowledge process outsourcing (KPO) services provider cannot be compared with the information technology-enabled services (ITeS), which fall under the category of BPO services provider.

No Upward Adjustment Required To Be Carried Out For Amount Received By Sony India From Its AE: Delhi High Court

Case Title: PCIT Versus M/s Sony India Pvt. Ltd

Citation: 2023 LiveLaw (Del) 1304

The Delhi High Court has held that no upward adjustment concerning advertising, marketing, and promotion expenses (AMP) ought to have been made as the comparables chosen by the Transfer Pricing Officer (TPO) had a net margin lower than that registered by the assessee, Sony India.

S. 69A Of Income Tax Act Can Only Be Invoked Where Books Of Account Are Maintained: Delhi High Court

Case Title: CIT Versus Hersh Washesher Chadha

Citation: 2023 LiveLaw (Del) 1305

The Delhi High Court has held that Section 69A of the Income Tax Act can only be invoked where books of account are maintained.

Decision To Cancel GST Registration With Retrospective Effect Must Be Based On Some Objective Criteria: Delhi High Court

Case Title: Pratima Tyagi Versus Commissioner Of GST

Citation: 2023 LiveLaw (Del) 1310

The Delhi High Court has held that the decision to cancel the GST registration with retrospective effect must be based on some objective criteria.

Power To Extend Time For Submitting Audit Reports U/S 142(2c) Belongs Exclusively To AO And Can't Be Exercised By CIT: Delhi High Court

Case Title: PCIT Versus B.L. Kashyap And Sons Ltd.

Citation: 2023 LiveLaw (Del) 1326

The Delhi High Court has held that the power to extend the time for submitting audit reports under Section 142(2c) belongs exclusively to the AO and cannot be exercised by CIT.

Limitation Period To Pass Fresh Assessment Order Expired: Delhi High Court Accepts Returned Income For 12 Years

Case Title: Indian Renewable Energy Development Agency Ltd Versus PCIT

Citation: 2023 LiveLaw (Del) 1327

The Delhi High Court has accepted the returned income for 12 years as the limitation period to pass a fresh assessment order has expired.

Bombay High Court

Agreement To Provide Manpower For Maintenance Is Contract Of Service And Not A Sale Under MVAT Act: Bombay High Court

Case Title: Atos India Private Limited Versus The State of Maharashtra

The Bombay High Court has held that an agreement to provide manpower to perform maintenance is a contract of service and not a sale contract under the MVAT Act.

Customs Deputy Commissioner's Order Contrary To AAR's Ruling, Bombay High Court Quashes

Case Title: Isha Exim carrying on business Versus UOI

The Bombay High Court has quashed the customs deputy commissioner's order contrary to the ruling passed by the Authority of Advance Ruling (AAR).

Action Of Customs Assistant Commissioner In Selling Gold Jewellery Belonging To Assessee Is Illegal: Bombay High Court

Case Title: Leyla Mohmoodi Versus The Additional Commissioner of Customs

The Bombay High Court has held that the action on the part of the Assistant Commissioner of Customs in disposing of or selling the gold jewellery belonging to the petitioners or assessee subject matter of the proceedings was illegal and unconstitutional.

Reassessment Proceedings Can't Be In The Nature Of Review: Karnataka High Court

Case Title: EIT Services India Pvt. Ltd. Versus Deputy Commissioner Of Income Tax

The Karnataka High Court has held that reassessment proceedings cannot be in the nature of review.

Karnataka High Court Directs NFAC To Refund Rs.29.30 Cr. With Interest To Myntra

Case Title: M/S Myntra Designs Private Limited Versus National Faceless Assessment Centre

The Karnataka High Court has directed the National Faceless Assessment Centre (NFAC) to refund Rs. 29.30 crore with interest under Section 244A of the Income Tax Act to Myntra Designs Pvt. Ltd.

Madras High Court

Madras High Court Quashes Assessment Order Passed Without Considering Assessee's Request Of Personal Hearing Through Video Conference

Case Title: C.Chellamuthu Versus The Principal Commissioner

The Madras High Court has quashed the assessment order passed without considering the assessee's request for a personal hearing through video conference.

Madras High Court Quashes Assessment Order Passed Without Considering Assessee's Request Of Personal Hearing Through Video Conference

The Madras High Court has quashed the assessment order passed without considering the assessee's request for a personal hearing through video conference.

Allahabad High Court

Investments Made Through Banking Channels Can't Be Disbelieved, Onus On Revenue To Prove Otherwise: Allahabad High Court

Case Title: Principal Commissioner Of Income Tax v. M/S Pnc Infratech Ltd.

The Allahabad High Court held that investments made through banking channels and show in regular returns cannot be disbelieved unless proven otherwise by the department.

Kerala High Court

GST Evasion Prosecution Does Not Depend Upon Completion Of Assessment: Kerala High Court

Citation: 2023 LiveLaw (Ker) 738

Case Title: Badha Ram Versus Intelligence Officer

The Kerala High Court has held that prosecution for offences under Section 132 of the CGST Act does not depend upon the completion of the assessment.

Patna High Court

Patna High Court Allows Appeal Beyond Stipulated Time based on CBIC Notification

Case Title: M/s Prince Sanitation Gandhi Path vs. The State of Bihar and Ors

LL Citation: 2023 LiveLaw (Pat) 145

In a recent ruling, the Patna High Court has provided relief to individuals facing delayed appeals under Sections 73 and 74 of the BGST Act.

Chhattisgarh High Court

Chhattisgarh High Court Upholds Constitutional Validity Of S. 16(4) Of CGST Act

Case Title: M/s Jain Brothers Versus UOI

The Chhattisgarh High Court upheld the constitutional validity of Section 16(4) of the CGST Act, which specifies the time frame in which a registered taxpayer is required to claim input tax credit.

ITAT

Without Pointing Out Any Specific Defect In Audited Books Of Accounts AO Can't And Should Not Make Any Estimated Addition: ITAT

Case Title: Priyamda Media & Infotainment Private Limited Versus DCIT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that without pointing out any specific defect in the audited books of accounts, the AO cannot and should not make any estimated addition.

ITAT Deletes Addition On Availing Accommodation Entries In Shape Of LTCG As It Was Not Recorded In Books Of Accounts

Case Title: Himanshu Botadara Versus ITO

The Indore Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition of availing accommodation entries in the shape of Long Term Capital Gain (LTCG) as it was not recorded in the books of accounts.

CESTAT

Payment Under IPL Playing Contract, CESTAT Quashes Service Tax Demand Against Cricketer R. Ashwin

Case Title: R. Ashwin Versus The Commissioner of GST & Central Excise

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against cricketer R. Ashwin.

Fire Incidence Beyond Control Of ONGC Petro, CESTAT Allows Customs Duty Remission

Case Title: ONGC Petro Additions Limited Versus C.C.-Ahmedabad

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty remission on the goods that were destroyed as a result of the fire incident beyond the control of the assessee, ONGC Petro.

Hero Cycle Not Required To Pay Automobile Cess On E-Bike As It Was Already Paid At The Time Of Import: CESTAT

Case Title: M/s Hero Cycle Ltd. Versus Commissioner of CGST, Ludhiana

The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hero Cycle is not required to pay automobile cess on an e-bike as it was already paid at the time of import.

CESTAT Allows Excise Duty Exemption On Special Purpose Bullet Proof Armoured Vehicles To Tata Motors

Case Title: M/s JCBL Limited, Unit-II Versus The Commissioner of Central Excise And Service Tax, Chandigarh-II

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted the excise duty exemption on special purpose bullet-proof armoured vehicles to Tata Motors.

Service Tax Not Payable When Public Funded Research Institutions Like IIT Receive Grants From Govt: CESTAT

Case Title: M/s. Indian Institute of Technology Versus Commissioner of GST and Central Excise

The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable when publicly funded research institutions like IIT receive grants or aid from the government for conducting research or project work.

AAAR

Incentives Received Under “Atma Nirbhar Gujarat Sahay Yojna” Can't Be Considered As Subsidy, GST Applicable: Gujarat AAAR

GUJ/GAAAR/APPEAL/2023/07

The Gujarat Appellate Authority of Advance Ruling (AAAR) has held that incentives received under the “Atma Nirbhar Gujarat Sahay Yojna” dated May 16, 2020, declared by the Gujarat Government could not be considered subsidies, and GST is applicable.

AAR

12% GST Applicable On Renting Residential Dwelling Units On Monthly Rental Basis: Karnataka AAR

Advance Ruling No. KAR ADRG 34/2023

The Karnataka Authority of Advance Ruling has held that 12% GST is applicable to renting residential dwelling units on a monthly rental basis.


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