Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court

The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot make additions to assessee’s income in respect of completed/unabated assessments if no incriminating material has been found during the course of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961. However, the bench comprising Justices C.T. Ravikumar and Manoj Misra said that in terms of the said judgment, the completed/unabated assessments can be re-opened by the AO in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions mentioned under the said provisions.

Delhi High Court

Subscription Amount Received From Subscribers Of E-Journals Cannot Be Treated As Royalty: Delhi High Court

The Delhi High Court has held that the subscription amount received from subscribers of e-journals cannot be treated as royalty.

Mere Pendency Of An Appeal Would Not Detract From The Excise Duty Refund Demand: Delhi High Court

Case Title: M/S Goldy Engineering Works Versus Commissioner Of Central Excise

The Delhi High Court has held that the mere pendency of an appeal or an order of stay that may operate would not detract from the obligation of any person claiming a refund to make an application within the period prescribed and computed with reference to the "relevant date".

Delhi High Court Excludes Comparable On Grounds Of Functional Dissimilarity & Amalgamation

Case Title: The Commissioner Of Income Tax -4 Versus GE India Business Services Pvt. Ltd.

The Delhi High Court has held that the Software Development Services offered by TCS International could not be used as a comparable since the assessee was in the business of Indian Information technology-enabled services (ITES) or business process outsourcing (BPO).

Bombay High Court

Reassessment Can’t Be Initiated On Grounds Of Subsequent Contradictory Ruling By AAR: Bombay High Court

Case Title: Mrs. Usha Eswar Versus Rajeshwari Menon

The Bombay High Court has held that reassessment can’t be initiated on the grounds of a subsequent contradictory ruling by the Authority of Advance Ruling (AAR).

Gauhati High Court

Output Tax Was Paid Using ITC, Railway Can’t Deny GST Reimbursement On Price Variation: Gauhati High Court

Case Title: HCC-CPL (JV) Versus Union Of India

The Gauhati High Court had held that railways cannot deny GST reimbursement on account of price variation merely on the grounds that the output tax was paid through an electronic credit ledger using the Input Tax Credit (ITC).

Jammu & Kashmir High Court

J&K Roads Development Agency Is Exempted From TDS Deduction On TD Account Interest: Jammu & Kashmir High Court

Case Title: The Commissioner of Income Tax v/s The Jammu and Kashmir Bank Ltd.

The Jammu & Kashmir High Court has held that the J&K State Rural Roads Development Agency (JKSRRDA) is exempt from TDS deduction on interest income accrued on Term Deposit Accounts.

Gujarat High Court

Excess Claim Of Depreciation By Axis Bank, Voluntary Surrendered, No Case For Penalty: Gujarat High Court

Case Title: The Principal Commissioner Of Income Tax 1, Ahmedabad Versus Axis Bank Ltd.

The Gujarat High Court has held that the department has failed to establish that there was concealment of particulars of the income of the assessee, Axis Bank. The department has also failed to establish that the assessee furnished inaccurate particulars of its income.

Rajasthan High Court

Welding Electrodes Used For Repairing Plant & Machinery Are Capital Goods: Rajasthan High Court Allows CENVAT Credit To Hindustan Zinc

Case Title: Hindustan Zinc Ltd. Versus C.C.E.

The Rajasthan High Court has granted CENVAT Credit to Hindustan Zinc and held that welding electrodes used for repairing plants and machinery are capital goods and inputs.

Jharkhand High Court

Jharkhand High Court Rejects ESL Steel’s ITC Claim Prior To The Approval Of The Resolution Plan By NCLT

Case Title: M/s ESL Steel Limited Versus Principal Commissioner

The Jharkhand High Court rejected ESL Steel’s Input Tax Credit (ITC) claim prior to the approval of the resolution plan by the National Company Law Tribunal (NCLT).

Calcutta High Court

No Evidence Of Supplier Of Tea Involved In Smuggling Poppy Seeds: Calcutta High Court Releases Vehicle And Tea

Case Title: Radha Tea Merchant versus Senior Joint Commissioner

The Calcutta High Court has released the attached vehicle and tea on the grounds that the tea supplier was not involved in smuggling poppy seeds.

Allahabad High Court

Vague Arrest Memo, Allahabad High Court Grants Bail To Accused In Fake GST ITC Worth Rs.88 Crores

Case Title: Ashish Kakkar V/s UOI

The Allahabad High Court has granted bail to the person allegedly involved in the creation of 92 fake GST Forms and the passing of fake Input Tax credits (ITC) to the tune of Rs. 88 crore.

ITAT

ITAT Upholds Interest On 'Outstanding Interest Receivable' Against Parle Biscuits

Case Title: Parle Biscuits Private Limited Versus Assessment Unit

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the levy of interest on 'outstanding interest receivable' against Parle Biscuits.

Plastic Waste Management Falls Under Preservation Of Environment: ITAT Allows Income Tax Exemption

Case Title: Punjab Plastic Waste Management Society Versus CIT(E)

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the Income Tax exemption for the Punjab Plastic Waste Management Society and observed that plastic waste management falls under the preservation of the environment.

Passing Of Project Specific Architectural Drawings And Design With Measurement Doesn’t Amount To ‘Make Available’ Technical Knowledge: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the mere passing of project-specific architectural drawings and designs with measurements did not amount to making available technical knowledge, know-how, or processes.

CESTAT

No Excise Duty Applicable On Residual Fuel Gas Cleared By Haldia Petrochemicals: CESTAT

M/s. Haldia Petrochemicals Limited Versus Commissioner of Central Excise, Haldia

Wired Headset Not A Part Of Any Mobile Phone: CESTAT Allows Customs Duty Exemption

Case Title: M/S Sennheiser Electronics India Pvt Ltd Versus Principal Commissioner, Customs (Import)Inland Container Depot

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty exemption on Earphones.

AAR

Education Provided By Isha Yoga Center Ineligible For GST Exemption: AAR Karnataka

Applicant’s Name: M/s Isha Founder

In a recent ruling, the Karnataka Authority For Advance Ruling bench has held that the education provided by Isha Yoga Center's residential school, Isha Samskriti, does not qualify for exemption under the Goods and Services Tax (GST) laws. The ruling came in response to an application filed by Isha Yoga Center seeking clarification on the applicability of GST exemption to its educational services.

Veterinary Instruments "AI Crate/Travis" Classified Under TI 7306, GST Applicable At 18%: GAAR

Name of Applicant: Kantaben Rameshbhai Chaudhari, Krishna Entperises

In a significant development, the Gujarat Authority Of Advance Ruling (GAAR) Bench has provided clarity on the classification and tax rate applicable to the veterinary instrument known as "AI Crate" or "Artificial Insemination Crate/Travis."

Gujarat AAR Rules It Lacks Jurisdiction On Supply of Goods And Services Matter in Madhya Pradesh

Name of Applicant: Pooja Construction Co

The Gujarat Authority for Advance Rulings (AAR) has ruled that it does not have jurisdiction to rule on a matter involving a supply of goods and services in Madhya Pradesh.

12% GST Payable On ‘Solar Home Lighting System’: AAR

Applicant’s Name: R2V2 Technologies Private Limited

The Uttar Pradesh Authority of Advance Ruling (AAR) has held that 12% GST is payable on solar home lighting systems.

Rapigro Is A Plant Growth Regulator, Attracts 18% GST: AAR

Applicant’s Name: Jivagro Limited

The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that Rapigro attracts 18% GST.

Gold In Any Form Fails Pass Test Of Second-Hand Goods, Marginal Scheme Benefit Not Applicable: AAR

The Kerala Authority of Advance Ruling (AAR) has ruled that the benefit of the marginal scheme is not applicable to gold, as gold in any form fails to pass the test of second-hand goods.