Tax Cases Weekly Round-Up: 28 May to 3 June, 2023

Update: 2023-06-04 06:45 GMT
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Delhi High Court Faceless Assessment Is Not A Fundamental Right: Delhi High Court Dismisses Gandhis, Aam Aadmi Party's PleasCase Title: Sanjay Gandhi Memorial Trust Versus Commissioner Of Income Tax (Exemption) & Ors.Citation: 2023 LiveLaw (Del) 446The Delhi High Court, while dismissing the plea of Rahul Gandhi, Priyanka Gandhi, and the Aam Aadmi Party, has held that neither the...

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Delhi High Court 

Faceless Assessment Is Not A Fundamental Right: Delhi High Court Dismisses Gandhis, Aam Aadmi Party's Pleas

Case Title: Sanjay Gandhi Memorial Trust Versus Commissioner Of Income Tax (Exemption) & Ors.

Citation: 2023 LiveLaw (Del) 446

The Delhi High Court, while dismissing the plea of Rahul Gandhi, Priyanka Gandhi, and the Aam Aadmi Party, has held that neither the e-assessment nor the faceless assessment scheme in any manner modifies the power to transfer cases from one Assessing Officer under a Principal Commissioner of Income Tax to another Assessing Officer under another Principal Commissioner of Income Tax who are holding non-concurrent charges.

Non-Supply Of Survey Report, Delhi High Court Stays Reassessment Proceedings Against Centre For Policy Research

Case Title: Centre For Policy Research Versus Deputy Commissioner Of Income Tax

Citation: 2023 LiveLaw (Del) 466

The Delhi High Court has stayed the reassessment proceedings against the Centre for Policy Research.

Taxpayers Filing Declaration Under SVLDR Scheme Can’t Quantify The Duty Under Indirect Taxes: Delhi High Court

Case Title: Ideal Broadcasting India Pvt. Ltd Versus Union Of India

Citation: 2023 LiveLaw (Del) 467

The Delhi High Court has held that taxpayers filing declarations under the Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 (SVLDR Scheme) cannot quantify the duty under indirect taxes.

Dept. Initiated Reassessment By Deviating From Prior View Without Any Cogent Reasoning: Delhi High Court Quashes Reassessment Notices

Case Title: Prem Kumar Chopra Versus ACIT

Citation: 2023 LiveLaw (Del) 468

The Delhi High Court has quashed the reassessment notices on the grounds that the department has initiated reassessment by deviating from prior views without any cogent reasoning.

Show Cause Notice Bereft Any Specific Allegation, Delhi High Court Quashes GST Registration Suspension Order

Case Title: Fayiz Nangaparambil Versus Union Of India

Citation: 2023 LiveLaw (Del) 469

The Delhi High Court has held that the Show Cause Notice was short of the necessary requirements as it did not contain any specific allegation.

Show Cause Notice Lacks Reasons In Detail For Denial Of Refund Of ITC To Mcdonald’s India: Delhi High Court

Case Title: M/S Mcdonalds India Pvt. Ltd. Versus Additional Commissioner

Citation: 2023 LiveLaw (Del) 479

The Delhi High Court has held that the show cause notice lacks reasons in detail for the denial of refund of Input Tax Credit (ITC) to Mcdonald's India.

Patna High Court

Power To Collect Entertainment Tax No Longer Vest In The State After 101st Amendment: Patna High Court

Case Title: M/s DEN Networks Limited Versus The State of Bihar

The Patna High Court has held that the power to collect entertainment tax would no longer vest in the state after the 101st Amendment.

ITAT

NLU-Delhi Is Not Engaged In Business: ITAT Quashes Income Tax Penalty

Case Title: National Law University Versus Additional/Joint/Deputy/Assistant Commissioner of Income Tax

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty under Section 271B of the Income Tax Act on the grounds that the NLU-Delhi is not engaged in "business" and exists solely for educational purposes.

Relationship Between Consultant Doctor And The Hospital Can't Be seen As Employer Employee : ITAT Deletes Addition

Case Title: Deputy Commissioner of Income Tax Versus M/s. Kovai Medical Centre and Hospital Limited

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made towards short deduction of TDS and held that the relationship between a Professional Doctor consultant and the Hospital cannot be treated as an Employer-Employee relationship unless there exist specific Rules and Provisions in the contract of appointment between the consultant and Hospital.

E-Filing Of “Audit Report” Beyond The Date, Violative Of CBDT Circular: ITAT Denies Section 11 Exemption to Trust

Case Title: Shri Jain Shwetamber Murtipujak Sangh Versus ITO (Exemption)

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) refused to grant the exemption under Section 11 of the Income Tax Act on the grounds that the trust e-filed the "audit report" in Form 10B beyond the date.

Gift From Family Members Do Not Require Any Special Occasion: ITAT Deletes Addition

Case Title: Shri Hemant Pandya Versus ITO

The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that addition and held that gifts from family members do not require any special occasion.

CESTAT

Interest On Delayed Service Tax Refund Payable On Expiry Of 3 Months From Application: CESTAT

Case Title: M/s Champion Flavours, Meerut Versus Commissioner CGST, Jammu

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that interest on delayed service tax refunds is payable on the expiration of 3 months from the date of application.

Excess Service Tax Paid Can Be Adjusted Towards Service Tax Liability For The Succeeding Month Or Quarter: CESTAT

Case Title: M/s B.L. Kashyap & Sons Ltd. Versus Commissioner of Service Tax

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excess service tax paid can be adjusted towards service tax liability for the succeeding month or quarter.

Profit Made On Transportation Charges Need Not Be Included In The Assessable Value, No Excise Duty Payable: CESTAT

Case Title: M/s. Concrete Products and Construction Co. Versus Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that profit made on transportation charges need not be included in the assessable value and the excise duty is not leviable.

Accumulated Cenvat Credit Lying Unutilized Does Not Carry Any Interest: CESTAT

Case Title: M/s. Ad2Pro Global Creative Solutions Pvt. Ltd. Versus The Commissioner of Service Tax

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that accumulated CENVAT credit lying unutilized does not carry any interest.

AAAR

Uttar Pradesh Jal Nigam Is Not A Local Authority: AAAR Denies Concessional Rate Benefit On Works-Contract Services

The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has held that Uttar Pradesh Jal Nigam (UPJN) is not a local authority and 18% GST is payable on the works-contract services.

AAR

GST Payable On Monthly Rental, Night Charges, Fuel On Mileage Basis In Availing Motor Vehicle Rental Services: AAR

Applicant’s Name: Uttarakhand Civil Aviation Development Authority

The Uttarakhand Authority of Advance Ruling (AAR) has held that GST is payable on monthly rental, night charges, and fuel on a mileage basis when availing motor vehicle rental services.

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