Show Cause Notice Mailed To The Wrong Email Address: Delhi High Court Remands The Matter To The Assessing Officer For A Fresh Decision

Case Title: M/s Schneider Electric India Pvt. Ltd. Versus ACIT

Citation: 2022 LiveLaw (Del) 545

The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has remanded the matter to the assessing officer for a fresh decision as the department mailed the show cause notice to the wrong email address.

Delhi High Court Quashes Reassessment Order Issued Without Considering The Reply Filed By The Assessee

Case Title: Karida Real Estates Private Limited Versus ACIT

Citation: 2022 LiveLaw (Del) 546

The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has quashed the reassessment order issued without considering the reply filed by the assessee.

Delhi High Court Orders To De-seal Business Premises, Directs Assessee To Produce Documents

Case Title: M/s Shakti Oil And Chemical Co. Versus Commissioner of DGST Delhi

Citation: 2022 LiveLaw (Del) 556

The Delhi High Court bench of Justice Rajiv Shakdher and Justice Poonam S. Bamba has ordered the department to de-seal business premises and directed the assessee to produce documents.

Andhra Pradesh High Court

Penalty Can't Be Imposed Without Giving The Opportunity Of Hearing To The Taxpayer: Andhra Pradesh High Court

Case Title: S.P.Y. Agro Industries Limited Vs Union of India

The Andhra Pradesh High Court has ruled that the GST penalty cannot be imposed without giving the taxpayer an opportunity of hearing.

The division bench of Justice C. Praveen Kumar and Justice V. Sujatha has observed that any rectification under Section 161 of the CGST Act, which adversely affects any person, is possible only after following the principles of natural justice.

Punjab & Haryana High Court

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court

Case Title: Rajnandini Metal Ltd. Versus Union Of India

The Punjab and Haryana High Court bench of Justices Tejinder Singh Dhindsa and Pankaj Jain has held that there should be reason to believe that the input tax credit available in the Electronic Credit Ledger was obtained fraudulently or that the assesses are ineligible. The relevant officer must record the reasons, and a speaking order must be issued.

Gujarat High Court

Gujarat High Court Quashes Non-Speaking And Vague GST Cancellation Order

Case Title: Sing Traders Versus State of Gujarat

The Gujarat High Court bench of Justice J.B. Pardiwala as he then was and Justice Nisha M. Thakore has quashed the GST cancellation order as it was non-speaking and vague.

Orissa High Court

Commissioner Can't Allow Deposit Of Interest Payment In Instalments: Orissa High Court

Case Title: M/s. P.K. Ores Pvt. Ltd. @ M/S. PK Minings Pvt. Ltd. Versus Commissioner of Sales Tax

The Orissa High Court bench of Justices Jawant Singh and Murahari Sri Raman has held that the Commissioner of CT & GST is not empowered to allow the deposit of interest payments in instalments.

Calcutta High Court

Assessee Should Be Given Opportunity To Produce Evidence Which Has Impact On Tax Liability : Calcutta High Court

Case Title: Nipika Agarwal Proprietress of S.N. Trading Versus Assistant Commissioner of State Tax

The Calcutta High Court bench has held that assessees should be given the opportunity to produce evidence which has an impact on tax liability.

The division bench of Justice Debangsu Basak and Justice Bibhas Ranjan De has observed that tax authorities must adjudicate upon the tax liability in accordance with the law. Similarly, if the assessee is unable to present certain evidence that affects the tax liability, the assessee should be given a reasonable opportunity to bring the evidence to the attention of the tax authorities.

ITAT

Tuition Fee Is Taxable Only When A Corresponding Service Is Rendered By The Educational Institution: Hyderabad ITAT

Case Title: Dy. Commissioner of Income Tax, Hyderabad versus M/s. Hyderabad Educational Institutions Pvt Ltd

The Hyderabad Bench of ITAT has ruled that the tuition fee collected in advance is not taxable in the year of receipt and that the tuition fee is taxable only when a corresponding service is rendered by the educational institution.

The Bench, consisting of K. Narasimha Chary (Judicial Member) and Rama Kanta Panda (Accountant Member), held that examination fee collected from students on behalf of the foreign universities is not taxable as 'Fees for Technical Services'.

Delay In Filing Audit Reports Due To The Hospitalisation Of Accountant: ITAT Deletes Penalty

Case Title: Swaminath N. Patil Versus The Ward 2(5) Solapur

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty for delay in filing audit reports due to the hospitalisation of the assessee's accountant.

The two-member bench, led by R. S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), concluded that the assessee had explained the reasonable cause through documentary evidence.The Tribunal set aside the order of the CIT (A) and directed the AO to delete the penalty from the hands of the assessee.

Export Entitlements And Duty Drawback Of Promotion Scheme Is An Income Assessable Under "Profits Or Gains From Business Or Profession": ITAT

Case Title: Nekkanti Sea Foods Limited Versus PCIT

The Visakhapatnam Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the export entitlements and the duty drawback of the promotion scheme are an income assessable under the head "profits or gains from business or profession" as per clauses (iiib) and (iiid) of section 28 of the Income Tax Act, 1961.

The two-member bench of Duvvuru Rl Reddy (Judicial Member) and S. Balakrishnan (Accountant Member) concluded that the authorities below failed to appreciate the legislative intent underlying the addition of a clause-(iiid) to Section 28 of the Income Tax Act having retroactive effect.

Loss From Trading In Commodity Derivatives Non-Speculative In Nature, Can Be Set Off Against Regular Business Income: ITAT Lucknow

Case Title: Ramesh Verma versus ACIT

The Lucknow Bench of ITAT has ruled that trading in commodity derivatives, that satisfies the requirements of Clause (e) of the first proviso to Section 43 (5) of the ITAT, 1961, is non-speculative in nature, and thus the loss arising from it can be set off against the regular business income.

The Bench, consisting of A.D. Jain (Vice President) and T.S. Kapoor (Accountant Member), held that there is no bar of expertise required for trading in commodity derivatives and that Clause (e) of the first proviso to Section 43(5) does not require any such expertise.

Society Receiving Grant From Foreign Entity Can't Be Denied Section 12A Registration: ITAT

Case Title: M/s. Share India Versus CIT(E)

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) consisting of K.Narasimha Chary (Judicial Member) and Bhagirath Mal Biyani (Accountant Member) has ruled that the society receiving grant from foreign entity cannot be denied the registration under Section 12A of the Income Tax Act.

Delayed Audit Report Due To The Delay By Statutory Auditors: ITAT Deletes Penalty

Case Title: Kendrapara Credit Co-operative Society Ltd Versus ITO

The Cuttack Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty where the assessee has sufficient and reasonable cause for delay in obtaining the audit report.

The two-member bench of George Mathan (Judicial Member) and Arun Khodpia (Accountant Member) has observed that the delay in submitting the audit report was on account of a delay in obtaining the audit report from the statutory auditors. The statutory auditors are appointed by the Registrar of Co-operative Societies and not by the assessee.

Commission Earned On Distribution Of Indian Mutual Fund Outside India, Not Taxable: ITAT Mumbai

Case Title: Dy. Commissioner of Income Tax versus Credit Suisse (Singapore) Ltd.

The Mumbai Bench of ITAT has ruled that the commission earned on distribution of Mutual Funds schemes of an Indian fund outside India cannot be taxed in India, if all the operations are carried out by the distributor outside India.

The Bench, consisting of Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member), held that merely because the Mutual Funds distributed were controlled and regulated by SEBI and RBI in India, the commission earned by the assessee/distributor cannot be taxed in India, since the said income was not 'reasonably attributable' to any operation carried out in India.

CESTAT

Supply Of Bed Rolls Kits Amounts To Supplying Services To IRCTC, Chargeable To Service Tax: CESTAT

Case Title: Hakamichand D & Sons Versus C.S.T.-Service Tax - Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the supply of bedroll kits to passengers of air-conditioned classes and other classes on behalf of IRCTC attracts service tax.

The two-member bench of Ramesh Nair (Judicial Member) and P.Anjani Kumar (Technical Member) observed that the supply of bedroll kits to passengers for and on behalf of IRCTC is in the nature of a "customer care service". Therefore, the services are appropriately classifiable under business auxiliary services.

IT Service Provided By Assessee To Associate Company In USA Amounts To Export Of Service: CESTAT

Case Title: Celtic Systems Private Limited Versus C.C.E. & S.T.-VADODARA-I

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) and Raju (Technical Member) has ruled that IT services provided by the assessee to the associate company in the USA amount to an export of services.

Credit Availed By Indian Overseas Bank On The Service Tax Paid On Deposit Insurance Service Is Eligible For CENVAT Credit: CESTAT

Case Title: M/s. Indian Overseas Bank Versus The Commissioner of Central Excise & Service Tax

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Sulekha Beevi C.S. (Judicial Member) and P. Anjani Kumar (Technical Member) has held that the credit availed by the Indian Overseas Bank on the Service Tax paid on the basis of the premium paid to the Deposit Insurance and Credit Guarantee Corporation (DICGC) for insuring deposits is eligible for CENVAT Credit.

AAAR

Turmeric in Whole Form Is 'Agricultural Produce', Attracts 5% GST: AAAR

Appellant's Name: N. B. Patil

The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that 5% GST is payable on turmeric in its whole form, falling under the definition of "Agricultural Produce".

The two-member bench of Rajeev Kumar Mital and Ashok Kumar Mehta has observed that the first supply of turmeric in whole form by farmers, being supplied by a non-taxable person in the Agricultural Produce and Marketing Committee, is not liable to GST by virtue of the provisions of section 23 (1) (b) and 2 (107) of the CGST Act, 2017.

AAR

GST Payable On Medical Health Insurance Premium For Employees: AAR

Applicant's Name: M/s. Hyderabad Metropolitan Water Supply And Sewerage Board

The Telangana Authority of Advance Ruling (AAR) consisting of B. Raghu Kiran and S.V. Kasi Visweswara Rao has observed that GST is payable on medical health insurance premiums for employees.

GST Not Payable On Monthly Collection Not Exceeding Rs.7500 Per Member Of RWA: AAR

Applicant's Name: M/s. Jayabheri orange county owners association

The Telangana Authority of Advance Ruling (AAR) consisting of B. Raghu Kiran and S.V. Kasi Visweswara Rao has ruled that GST is not payable on monthly collection not exceeding Rs. 7500 per member of the Resident Welfare Association (RWA).

GST Payable On Receipt Of Gratuitous Payment From Outgoing Member: AAR

Applicant's Name: Monalisa Co-Operative Housing Society Limited

The Maharashtra Authority of Advance Ruling (AAR) consisting of T.R. Ramnani and Rajiv Magoo has ruled that GST is payable on receipt of gratuitous payment from outgoing members.

ITC Admissible On GST Paid On GTA Service Despite Vehicles Travelling Empty in Return Journey: AAR

Applicant's Name: M/s. Vadilal Enterprises Ltd.

The Gujarat Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) is admissible on GST paid on goods transport agency (GTA) service supplied to it, despite refrigerated vehicles travelling empty during the return journey.