Tax Cases Weekly Round-Up: 25 June To 1 July, 2023

Update: 2023-07-03 05:05 GMT
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Delhi High CourtAssessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores DemandCase Title: Darpan Kohli Versus Assistant Commissioner Of Income TaxThe Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.AO Unclear whether The Notice Is Issued...

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Delhi High Court

Assessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores Demand

Case Title: Darpan Kohli Versus Assistant Commissioner Of Income Tax

The Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.

AO Unclear whether The Notice Is Issued To An Individual Or A Corporate Entity: Delhi High Court Quashes Reassessment Notice

Case Title: Home Credit India B.V. Versus ACIT

The Delhi High Court has quashed the reassessment notice for non-application of mind by the department.

Bombay High Court

AO Can Make Reference To TPO Only After Selecting Case For Scrutiny Assessment: Bombay High Court

Case Title: Pr. Commissioner of Income Tax Versus Kimberly Clark Lever Private Limited

The Bombay High Court has held that the Assessing Officer (AO) can make reference to the Transfer Pricing Officer (TPO) under Section 92CA of the Income Tax Act only after selecting the case for scrutiny assessment.

Capital Gain To Be Taxed In Singapore: Bombay High Court Allows Capital Gains Exemption To FII

Case Title: CIT Versus M/s Citicorp Investment Bank

The Bombay High Court has granted the capital gains exemption to Foreign Institutional Investors (FII).

CBDT Circular Allowing Benefit Only To Cases Where Appeals Are ‘Dismissed In Limine’ Is Arbitrary: Bombay High Court

Case Title: Oerlikon Balzers Coating India Versus Union of India

The Bombay High Court has quashed FAQ 61 of the circular 21/2020 dated December 4, 2020, issued by the CBDT to the extent that it restricts appeals to those dismissed in limine’ on the ground that it was not only adverse to the interest of the assessee but also contrary to the object and reasons of the Direct Tax Vivad Se Viswas Act, 2020 (DTVSV-A).

Karnataka High Court

Karnataka High Court Allows Tax Exemption On Voluntary Donation Received By Educational Institution

Case Title: Pr Commissioner Of Income-1 Tax (Exemptions) Versus M/S Rashtreeya Sikshana Samithi Trust

The Karnataka High Court has allowed a tax exemption on voluntary donations received by educational institutions.

Gujarat High Court

Difficult To Submit Complete Reply To The SCN In Less Than 12 Hours: Gujarat High Court Quashes Assessment Order

Case Title: Dineshkumar Chhaganbhai Nandani Versus Income Tax Officer

The Gujarat High Court quashed an assessment order made by the income tax authorities without granting the petitioner an opportunity to be heard. The court found that the show cause notice cum draft assessment order was issued with an extremely short deadline, leaving the petitioner less than 12 hours to respond.

Sales-Tax Exemption Certificate Has Overriding Effect Over VAT Notification: Karnataka High Court

Case Title: State of Karnataka Versus Aishwarya Fort

The Karnataka High Court has held that the sales tax exemption certificate is valid for 7 years and could not have been rescinded before the period of eligibility expired as it is a sovereign assurance.

Jammu & Kashmir And Ladakh High Court

Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn Shawls

Case Title: M/s Ali Shah through Arif Ahmad Shah Versus Union of India and others

Citation: 2023 LiveLaw (JKL) 166

The Jammu & Kashmir And Ladakh High Court has dismissed a writ petition challenging a show cause notice regarding the export of banned yarn shawls.

ITAT

Income From The Sale Of RECs Is Capital In Nature, Is Not Subject To Taxation: ITAT

Case Title: M/s Satia Industries Ltd. Versus NFAC

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income from the sale of Renewable Energy Certificates (RECs) is classified as capital in nature and is not subject to taxation.

CESTAT

PPF Funds Management Service Prior To 10.9.2004 Not Liable To Pay Service Tax: CESTAT

Case Title: M/s State Bank of India, Mumbai Versus Commissioner of Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on the operation of PPF accounts after September 10, 2004.

Salary Is Out Of The Purview Of Service Tax: CESTAT Quashes Service Tax Demand Against Kellogg

Case Title: M/s. Kellogg India Pvt. Ltd. Versus Commissioner of CGST & CE, Belapur

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against Kellogg India and held that salary is out of the purview of service tax.

Charging Higher Fees By Charitable Institution Will Not Make It Commercial; CESTAT Allows Refund To Adani Institute Of Medical Sciences

Case Title: Gujarat Adani Institute Of Medical Sciences Versus C.C.E. & S.T.-Rajkot

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund to Gujarat Adani Institute Of Medical Sciences and held that merely by charging a higher fee, an institution cannot be treated as a commercial institute.

AAR

Full Credit Available On GST Charge In The Tax Invoice Issued By The Supplier: AAR

Applicant’s Name: M/s. Vedmutha Electricals India Private Limited

The Andhra Pradesh Authority of Advance Ruling (AAR) has ruled that full credit of the GST charge is included in the tax invoice issued by the supplier even if later commercial or financial credit notes are issued.

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