Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court

The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill.

Bombay High Court

Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court

Case Title: Coventry Estates Pvt. Ltd. Versus The Joint Commissioner CGST and Central Excise

The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice.

Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court

Case Title: Cummins India Limited Versus ACIT

The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.

Bombay High Court Quashes Review Order Which Disallowed Deductions, Being Contra To Natural Justice

Case Title: Kalpataru Power Transmission Ltd. Versus State Of Maharashtra

The Bombay High Court has quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN).

Gujarat High Court

Gujarat High Court Orders Refund Of IGST With Interest In An Inadvertent Tax Payment Case

The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax (IGST) amount, along with applicable interest, to a petitioner who inadvertently paid IGST at a higher rate than the concessional rate applicable.

Gujarat High Court Quashes Orders Rejecting Declaration Under SVLDRS Scheme, Directs Acceptance Of Declaration

Case Title: M/s FTA HSRP Solutions Pvt. Ltd. vs Union Of India

The Gujarat High Court has rendered a verdict in favor of M/S Fta Hsrp Solutions Pvt, setting aside the rejection of their declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The court has directed the designated committee, Sabka Vishwas Dispute Resolution Scheme, to accept the petitioner's declaration and bring closure to the tax dispute.

Gujarat High Court Quashes Income Tax Reassessment Notices Against Non-Existent Entity

The Gujarat High Court has quashed the income tax reassessment notice against a non-existent entity.

Services Can’t Be Roped Into FTS Unless Person using Services Able To Use Technology: Gujarat High Court

Case Title: Commissioner Of Income Tax (International Taxation And Transfer Pricing) Versus Star Rays

The Gujarat High Court has held that mere rendering of services cannot be roped into fees for technical service (FTS) unless the person utilising the services is able to make use of the technical knowledge, etc.

Calcutta High Court

Calcutta High Court Dismisses Income Tax Dept’s Appeal On The Ground Of Low Tax Effect

Case Title: Principal Commissioner Of Income Tax-2, Kolkata -Versus- M/S. Deepak Industries Ltd.

The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects.

Jammu & Kashmir And Ladakh High Court

Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court

Case Title: PCIT Versus M/S The J&K Bank Ltd.

The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs.

Madhya Pradesh High Court

Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost

Case Title: Hitesh Nagwani Versus Commissioner Of Customs

The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.

Patna High Court

Patna High Court Orders Railways To Refund Illegal VAT Deduction from Contractors' Bills

In a significant ruling, the Patna High Court has directed the Indian Railways to refund an amount of Rs. 38,22,897 to PCM Cement Concrete Pvt. Ltd., following an illegal VAT deduction made from the bills of the contractor.

ITAT

Treatment Of Shares In Books Of Accounts Determines Taxation, JM Financial’s Set-off Not Colourable Device: ITAT

Case Title: M/s J.M. Financial Ltd. Versus DCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the treatment of shares in books of accounts determines taxation under capital gain or business income, and the method adopted for arriving at the sale consideration does not determine the nature of the transaction.

Section 68 Of The Income Tax Act Is Not Applicable On Share Premium: ITAT

Case Title: Hiranandani Healthcare Private Limited Versus CIT (A)

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

Case Title: Vikram Bajaj Versus PCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.

Income Would Accrue Only When The Assessee Gets A Right To Receive The Income: ITAT

Case Title: Mahalasa Exports Versus ITO

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.

ITAT Imposes Cost Of Rs.10K On Foreign Portfolio Investor For Not Responding To Section 142(1) Notices

Case Title: Hunt International Investments LLC Versus DCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.10,000 on a foreign portfolio investor (FPI) for not responding to notices under Section 142(1) of the Income Tax Act.

CESTAT

CESTAT Allows CENVAT Credit To Hero Motocorp On Helmet Locks Supplied Along With Motorcycles

Case Title: M/s Hero Motocorp Ltd. Versus The Commissioner of Central Excise, Delhi-III

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT Credit to Hero Motocorp on helmet locks supplied along with motorcycles.

Weighment Of Goods By FCI Is Not Covered Under “Business Auxiliary Service”: CESTAT

Case Title: The Food Corporation of India Versus The Commissioner of Central Excise and Service Tax, Panchkula

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that undertaking the weighment of goods by the Food Corporation Of India (FCI) is not covered under "business auxiliary service".

Bill Discounting Facility Could Be Offered Not Only By Banking Company But Also By A Body Corporate: CESTAT

Case Title: M/s. Surin Automotive Private Limited Versus Commissioner of Central Excise and Service Tax

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that bill discounting facilities could be offered not only by a banking company or a financial institution but also by a body corporate.

CESTAT Upholds Service Tax Demand Against The Service Provider Based On ONGC’s Reply

The Kolkata Bench Of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has upheld the service tax demand against the service tax provider based on ONGC’s reply.

Service Tax Not Chargeable On Tour Services For Carrying Out Hajj Pilgrimage In Saudi Arabia By Indian Pilgrims: CESTAT

Case Title: M/s. Amber Travel Services Versus Commissioner, Central GST & Central Excise, Jaipur

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not chargeable on tour services for carrying out the Hajj pilgrimage in Saudi Arabia by Indian Pilgrims.