Supreme Court

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court

Case Title: State of Karnataka v. M/s. Ecom Gill Coffee Trading Private Limited

Citation: 2023 LiveLaw (SC) 187

The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. It noted that in order to establish the same, the dealer should furnish the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and payment particulars etc.

Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court

Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc.

Citation: 2023 LiveLaw (SC) 223

The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what is required along with the affixation is a mandate of law that directs the seller to affix such MRP.

Central Excise Act - To Be "Related Person", Buyer & Seller Must Have Direct Or Indirect Interest In Each Other’s Business : Supreme Court

Case Title: M/S Bilag Industries P. Ltd. & Anr. Versus Commr. Of Cen. Exc. Daman & Anr.

Citation: 2023 LiveLaw (SC) 257

The Supreme Court while ascertaining who is the “Related Party” under the Central Excise Act for the purpose of valuation held that before the clause in Section 4(4)(c) could be used, the buyer and seller had to be interested in one another's businesses. Since two-way traffic is required, there shouldn't be any one-way traffic.

Delhi High Court

Allegations Of Availment Of Fake Credit Cannot Be A Ground For Rejecting The Refund Applications Unless It Is Established: Delhi High Court

Case Title: M/S Balaji Exim Versus Commissioner, CGST

The Delhi High Court has held that allegations of availing of fake credit cannot be a ground for rejecting the refund applications unless it is established that the petitioner has not received the goods or paid for them.

Fraudulent GSTN Registration: Delhi High Court Directs Petitioner To Reveal Details Of His Friend Who Obtained It

Case Title: Anil Kumar Versus The Gst Commissioner, Cgst, And Central Excise And Ors.

Citation: 2023 LiveLaw (Del) 253

The Delhi High Court has ordered the petitioner to reveal the name of the friend who fraudulently obtained a GSTIN using his credentials at the department.

The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has directed the petitioner to disclose the identity of his friend, to whom he claims to have handed over his identity documents, to the police authorities as well as to the state GST authorities. The petitioner shall fully cooperate with the concerned authorities and provide them with all the information as required.

Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court

Case Title: Commissioner of Customs (Airport & General) vs M/s R.P. Cargo Handling Services

The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 (CBLR), merely contemplates the dispatch of the notice and not its receipt by the Customs Broker, within the stipulated period.

Applications For Refund Of ITC Cannot Be Denied On Mere Suspicion: Delhi High Court

Case Title: M/s Balaji EXIM vs Commissioner, CGST and Ors.

Citation: 2023 LiveLaw (Del) 227

The Delhi High Court has held that applications for refund of Input Tax Credit (ITC) cannot be rejected merely on suspicion and without any cogent material.

Bombay High Court

Bombay High Court Directs Release Of Seized Gutka And Pan-Masala On Furnishing The Bank Guarantee Of Rs. 27.84 Lakhs

Case Title: State of Maharashtra Versus Mahabal Enterprises

The Bombay High Court has directed to release the Gutka and Pan-Masala, which were banned in the state of Maharashtra, after furnishing the bank guarantee of Rs. 27,84,000.

Who Is The Proper Authority To Decide IGST Refund? Bombay High Court Directs The Dept. To Decide

The Bombay High Court has directed the department to decide who has the proper authority to decide on an IGST refund.

The division bench of Justice Nitin Jamdar and Justice Abhay Ahuja has noted that the customs authorities claimed that the GST authority is the proper officer for processing refund claims, whereas the GST authorities claim that it is the customs officer.

Madras High Court

Errors Committed Are Inadvertent, Rectification Would Enable Proper Reporting Of The Turnover And ITC: Madras High Court

Case Title: Deepa Traders Versus Principal Chief Commissioner of GST & Central Excise

The Madras High Court has held that errors committed are inadvertent and, the rectification would, in fact, enable proper reporting of the turnover and input tax credit (ITC) to enable claims to be made in an appropriate fashion by the assessees.

Karnataka High Court

Charger Sold Along With Mobile Phone Can’t Be Differently Taxed: Karnataka High Court

Case Title: The State of Karnataka Versus The Index Technologies India Ltd.

The Karnataka High Court has held that the charger, which is sold along with the mobile phone in one set, is taxable at the rate of 5%.

DGFT Has No Authority To Violate The Foreign Trade Policy, Power Lies Only With Central Govt: Karnataka High court

The Karnataka High Court has held that only the Central Government can make provision for prohibiting, restricting, or regulating the import or export of goods or services, or technology and not the Director General of Foreign Trade (DGFT).

Madhya Pradesh High Court

VAT Act, Madhya Pradesh High Court Directs Dept. To Refund Pre-Deposit With 6% Interest

Case Title: Mount Everest Breweries Ltd. Versus State of Madhya Pradesh

The Madhya Pradesh High Court has directed the state/commercial tax department to refund the pre-deposit amount paid during the appeal with 6% interest to the assessee.

The division bench of Justice Sushrut Arvind Dharmadhikari and Justice Prakash Chandra Gupta has observed that even though there is no provision for payment of interest on the refund of amounts so collected under the VAT Act, the petitioner would be eligible for 6% interest per annum w.e.f. April 17, 2017, until the date of refund.

Orissa High Court

Kinley Water Falls Within Water, Not Aerated Or Mineral Water, Comes Within Tax Free List: Orissa High Court

Case Title: State of Odisha Versus M/s. Hindustan Coca-Cola

The Orissa High Court held that the sale of packaged drinking water under the brand name Kinley Water falls within the expression "water but not aerated or mineral water sold in bottles or sealed containers," which is covered under Entry No.39 of the Tax-Free List.

Chokad Is Not An Industrial Input: Orissa High Court Quashes Order Imposing 4% VAT

Case Title: M/s. Kamadhenu Cattle & Poultry Feed Unit versus The State of Odisha

The Orissa High Court has quashed the order imposing a 4% value-added tax (VAT) on the wheat bran (chokad) as it is not an industrial input.

Unrealistic To Expect GST Return Filing Without Actual Commencement Of Business: Orissa High Court Directs Dept. To Process Licence Application

Case Title: M/s. Galaxy Bar and Restaurant, Nayagarh Versus State of Odisha and others

The Orissa High Court has held that the license application should not be rejected only because a GST return has not been filed yet, since it is unrealistic to expect that to happen without the actual commencement of its business.

Calcutta High Court

Transporting Goods In A Vehicle Without Proper E-Way Bill Is A breach, Reasons Irrelevant: Calcutta High Court Upholds Penalty

Case Title: Asian Switchgear Private Limited Versus State Tax Officer

The Calcutta High Court upheld the penalty and stated that there was no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.

Dept. Vacillating Whether Goods Were In Transit Or In Godown: Calcutta High Court Directs Refund Of Penalty

Case Title: Sandip Kumar Singhal Versus Deputy Commissioner, Revenue, Bureau of Investigation North Bengal Headquarter & Ors.

The Calcutta High Court has directed the refund of the penalty and held that the department was vacillating between Sections 67 and 68 of the GST Act, depending on whether the goods are in transit or in the godown.

Gujarat High Court

Reversal of ITC At Midnight During Search And Seizure Operation Can't Be Treated As Voluntary Payment: Gujarat High Court Directs Refund

Case Title: Shree Ganesh Molasses Trading Company Versus Superintendent

The Gujarat High Court has held that the reversal of input tax credit (ITC) at midnight during search and seizure operations can't be treated as a voluntary payment.

The division bench of Justice Sonia Gokani and Justice Sandeep S. Bhatt has directed the department to reverse the ITC to the tune of Rs. 37,68,300 along with 6% interest.

CESTAT

CESTAT Allows Interest On Refunded Amount Deposited During Investigation

Case Title: M/s Leading Point Powertronics Pvt Ltd Versus Commissioner, Central Excise & CGST- Delhi South

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed interest on the amount refunded, which was deposited during the investigation.

CESTAT Allows Interest On Refunded Amount Deposited During Investigation

Case Title: M/s Leading Point Powertronics Pvt Ltd Versus Commissioner, Central Excise & CGST- Delhi South

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed interest on the amount refunded, which was deposited during the investigation.

Cenvat Credit Allowable On The Service Of Repair & Maintenance During Warranty Period: CESTAT

Case Title: C.C.E. & S.T.-Rajkot Versus Falcon Pumps Private Limited

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on the service of repair and maintenance during the warranty period.

Service Tax Not Payable On The Amount Collected From The Member Units For Treatment Of Effluent Water: CESTAT

Case Title: M/s. Perundurai Common Effluent Treatment Plant Versus The Commissioner of Central Excise and Service Tax

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the remuneration collected from the member units for the activity of treating effluent water.

CESTAT Allows Cenvat Credit On Service Tax Paid By Automotive Dealers

Case Title: ICICI Lombard General Insurance Company Ltd.

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the cenvat credit on service tax paid by automotive dealers.

Builder/Developer/Promoter Not Liable To Pay Service Tax On Construction Of Complex Service Or Works Contract Prior To July 2010: CESTAT

Case Title: M/s. South India Shelters Private Limited Versus The Commissioner of Central Excise

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no liability for paying tax under ‘construction of complex service’ or ‘works contract’ would lie on the builder, developer, or promoter during the period prior to July 2010.

Imported Coal Does Not Attract Customs Education Cess And Higher Education Cess: CESTAT

Case Title: M/s. Chemplast Sanmar Ltd. Versus The Commissioner of Customs

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that imported coal would not attract the Customs Education Cess and the Higher Education Cess.

Service ​​Provider Deploying Employees In Manufacturing Premises For Specified Job Works Can’t Be Held As Manpower Supply Services: CESTAT

Case Title: M/s Donypolo Udyog Ltd Versus Commissioner, Central Excise & Service Tax, Indore

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that where the service provider has deployed his employees in the assessee's manufacturing premises for specific job works, it cannot be considered manpower supply services.

Excise Duty Not Payable On Scrap Sent To The Job Workers For Manufacture Of Angles And Channels: CESTAT

Case Title: M/s.Tansi Pump Unit Versus The Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on the scrap that has been sent to the job workers for the manufacture of intermediate products such as angles and channels.

Service Tax Not Payable On The Service Charges For Prepayment Of Loan Amount By The Customer: CESTAT

Case Title: Rajasthan Financial Corporation Versus Additional Commissioner

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service charges for pre-payment or foreclosure of loan amounts by the customer cannot be treated as taxable services and are not chargeable to service tax.

Both Sales Tax And Service Tax Cannot Be Made Applicable On The Same Transaction: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that both sales tax and service tax cannot be made applicable on the same transaction.

Cooperative Banks Qualified As Cooperative Societies : CESTAT Allows Section 80P Deduction On Interest Received From Co-Operative Banks

Case Title: M/s.Laxmi Bachat Sharafi Sahkari Mandali Ltd. Versus ITO

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that cooperative banks qualified as cooperative societies and the interest received from cooperative banks by the assessee in the present case qualified for deduction under section 80P(2)(d) of the Income Tax Act.

CESTAT Rejects The Refund Claim Of Krishi Kalyan Cess Worth Rs. 5 Lakhs Paid On Services Received For Manufacturing Of Goods

Case Title: M/s Lupin Limited Versus Commissioner of Central Tax & Customs (Appeals), Guntur

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has rejected the refund claim of Krishi Kalyan Cess (KKC) worth rs. 5 lakhs paid on services received for manufacturing of goods.

Mere NBFC Registration Not Enough Under Provision Of Service Tax For Levy: CESTAT

Case Title: M/s Qualcomm India Pvt ltd Versus Commissioner of Customs & Central Excise, Hyderabad-IV

The Hyderabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mere registration as an NBFC is not enough under the provision of service tax to levy.

CESTAT Allows Cenvat Credit Of Service Tax Paid On Services Of Toilets Located In Port User Building

Case Title: M/s Jawaharlal Neharu Port Trust Versus Commissioner of Central Tax - Raigad

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the CENVAT credit of service tax paid on services of toilets located in port-user buildings.

Architect Service, Telephone Expenses For Construction Of Hotel Are Input Services: CESTAT Allows Cenvat Credit On Service Tax

Case Title: M/s Asrani Inns & Resorts Pvt. Ltd. Versus Commissioner of Central Goods & Service Tax Navi Mumbai

The Mumbai Bench of the Customs, Excise, and Service Tax Tribunal (CESTAT) has allowed the Cenvat Credit on Service Tax paid on architect services; telephone expenses, etc. for construction of hotel are input services.

Central Excise Duty Not Payable On Capital Subsidy Received From State Government In Form Of Sales Tax Challan 37B: CESTAT

Case Title: M/s Harit Polytech Pvt. Ltd. Versus Commissioner, Central Excise & CGST- Jaipur I

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that central excise duty is not payable on capital subsidies received from the state government in the form of sales tax challan 37b.

Amount Deposited In The Personal Ledger Account Until It Is Not Debited Towards Duties Is Property Of The Assessee: CESTAT

Case Title: M/s Hariwansh Packing Products Versus Commissioner of CGST & Central Excise Nagpur-I

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the amount deposited in the Personal Ledger Account (PLA) until such time as it is not debited towards duties is the property of the appellant.

AAAR

Vouchers Are Neither Goods Nor Services, No ITC Available To Myntra: AAAR

Applicant’s Name: Myntra Designs Private Limited

The Karnataka Appellate Authority of Advance Ruling (AAAR) has held that input tax credit (ITC) is not available on the vouchers and subscription packages procured by Myntra from third-party vendors.

AAR

Supply Of Ice Cream From The Outlets Cannot Be Considered As Supply Of “Restaurant Services”: AAR

Applicant’s Name: HRPL Restaurants P. Ltd.

The Gujarat Authority for Advance Ruling (AAR) has ruled that the supply of ice cream from the outlets cannot be considered as the supply of restaurant services.

Building And Fabricating Tipper Body If Chassis Is Owned, Supplied By The Customer Attracts 18% GST: Punjab AAR

Applicant’s Name: Raj Agro AIDS

The Punjab Authority of Advance Ruling (AAR) has held that the building and fabricating of a tipper body if the chassis is owned and supplied by the customer attracts 18% GST.

Purchaser Is Not Entitled To ITC On The Purchases Made From The Seller Who Had Discharged Its Tax Liability: AAR

Applicant’s Name: Vimal Alloys Ltd.

The Punjab Authority of Advance Ruling (AAR) has held that the purchaser is not entitled to claim Input Tax Credit (ITC) on the purchases made by it from the seller, who had discharged its tax liability.

GST Under Reverse Charge Mechanism Is Applicable On Services Of Renting Residential Premises as Guest House: AAR

Applicant’s Name: Indian Metals and Ferro Alloys Limited

The Odisha Authority of Advance Ruling has held that GST under the reverse charge mechanism is applicable to services by way of taking residential premises on rent for use as its guest house.

5% GST Payable On RCM Basis On Purchase Of Tobacco Leaves/Bhukko From The Agriculturist: Gujarat AAR

Applicant’s Name: M/s. JCP Agro Process P Ltd.

The Gujarat Authority for Advance Ruling (AAR) has ruled that 5% GST on reverse charge mechanisms (RCM) shall be applicable on the purchase of tobacco leaves/bhukko from the agriculturist.

28% GST Payable On Supply PVC Floor Mats For Cars: AAR

Applicant’s Name: Manishaben Vipulbhai Sorathiya

The Gujarat Authority for Advance Ruling (AAR) has ruled that 28% GST is payable on the supply of PVC floor mats for cars.

The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the floor mats used for four-wheel motor vehicles (cars) supplied by the applicant are principally for use in motor vehicles.

Supply Of Goods To The Overseas Customer Is Neither A Supply Of Goods Nor A Supply Of Services: Karnataka AAR

Applicant’s Name: Marubeni India Private Limited

The Karnataka Authority for Advance Ruling (AAR) has ruled that the supply of goods to an overseas customer is treated neither as a supply of goods nor as a supply of services.

Transaction Of Transfer/Sale Of One Of The Independent Running Business Divisions Attracts 18% GST: AAR

Applicant’s Name: PICO2FEMTO Semiconductor Services Private Limited

The Karnataka Authority for Advance Ruling (AAR) has held that the transfer or sale of one of the independently running business divisions attracts 18% GST.

Supply Of The Aircraft Type Rating Training Is Exigible To GST: AAR

Applicant’s Name: CAE Flight Training (India) Private Limited

The Karnataka Authority for Advance Ruling (AAR) has held that the supply of aircraft-type rating training is eligible for GST.

Direct Taxes

Supreme Court

Non-Service Of Assessment Orders Inconsequential If Assesee Had Knowledge About Them Otherwise : Supreme Court

Case Title: Commercial Tax Officer Versus Neeraja Pipes Pvt. Ltd.

Citation: 2023 LiveLaw (SC) 199

Attachment orders issued by the revenue for tax arrears will not be vitiated merely because the assessment orders were not served on the assessee, if the assessee had otherwise got knowledge about the assessment orders, held by the Supreme Court recently.

Income Tax Act - Date Of Panchnama Last Drawn Starting Point Of Limitation For Completing Block Assessment Proceedings: Supreme Court

Case Title: Anil Minda and Others Versus Commissioner of Income Tax

Citation: 2023 LiveLaw (SC) 246

The Supreme Court has held that the date on which the Panchnama was last drawn is the starting point of the two-year limitation for completing the block assessment proceedings under the Income Tax Act 1961.

Delhi High Court

Refund Can’t Be Withheld On The Ground That Assessee Is Selected For Scrutiny Assessment; Delhi High Court Sets Aside Order Withholding Refund Due To OYO

Case Title: OYO Hotels and Homes Private Limited vs Deputy Assistant Commissioner of Income Tax & Anr.

The Delhi High Court has set aside the Revenue Department’s order withholding a refund of over Rs. 33 Crores due to OYO Hotels and Homes Pvt Ltd, while directing the department to reconsider OYO’s representations seeking disbursal of the refund amount, bearing in mind the provisions of Section 241A of the Income Tax Act, 1961.

ITO Can’t By-Pass SC Decision In ‘Engineering Analysis’ In The Name Of A Review Petition Filed By Dept: Delhi High Court

Case Title: Milestone Systems A/S vs. Deputy Commissioner of Income Tax

Citation: 2023 LiveLaw (Del) 254

The Delhi High Court has set aside the Income Tax Department’s order rejecting the assessee’s application seeking a certificate for “NIL” rate of withholding tax under Section 197 of the Income Tax Act, 1961.

Income Tax Demand On OYO For 1,140 Cr: Delhi High Court Directs CIT To Give Personal Hearing

Case Title: OYO Hotels And Homes Pvt. Ltd. Versus DCIT

The Delhi High Court has directed the Commissioner of Income Tax (CIT) to accord a personal hearing to OYO for the stay on the income tax demand of Rs. 1,140 crores.

TDS Not Deposited By Employer, Can’t Be Adjusted Against Future Refund Due To Assessee: Delhi High Court

Case Title: Sanjay Sudan vs. Assistant Commissioner of Income Tax & Anr.

The Delhi High Court has ruled that the revenue department cannot adjust the withheld tax (TDS) which has not been deposited by the deductor (employer) in the Central Government Account, against the refund due and payable to the deductee/assessee.

Fee Earned By APMC For Regulating Poultry Market, Exempt Under S. 10(26AAB) of Income Tax Act: Delhi High Court

Case Title: PC Commissioner of Income Tax vs. M/s Fish Poultry and Egg Marketing Committee

The Delhi High Court has ruled that the income/ fee earned by an Agricultural Produce Marketing Committee (APMC) for regulating the poultry market, would fall within the scope of Section 10(26AAB) of the Income Tax Act, 1961, and thus the same would be exempt from income tax.

Bombay High Court

Bombay High Court Quashes Income Tax Proceedings On The Ground That S. 148 Notice Was Served On Secondary Email Id Provided In PAN

Case Title: Lok Developers versus Deputy Commissioner of Income tax

The Bombay High Court has set aside the proceedings initiated by the revenue authorities against the assessee for non-compliance of the reassessment notice issued under Section 148 of the Income Tax Act, 1961, on the ground that the notice was served on the secondary email id registered with the PAN database instead of the registered primary email id or the updated email id mentioned by the assessee in its last Return of Income.

Bombay High Court Quashes Reassessment Proceedings Against Jetair

Case Title: Jetair Pvt Ltd vs. Deputy Commissioner of Income Tax & Ors.

The Bombay High Court has quashed the reassessment proceedings against Jetair Pvt Ltd, a group entity of Jet Airways (India) Ltd, and has set aside the notice issued by the revenue department under Section 148 of Income Tax Act, 1961 against Jetair, seeking to reopen assessment for the relevant assessment year.

Reassessment Notice Issued By The AO Merely On The Basis Of Change Of Opinion: Bombay High Court Quashes Order

Case Title: Lakshdeep Investments & Finance Pvt. Ltd. Versus Assistant Commissioner of Income-tax

The Bombay High Court has quashed the reassessment order on the grounds that the only reason for issuing the notice under Section 148 of the Income Tax Act appeared to be that the Assessing Officer had come to a different opinion on the question of valuation than the one adopted by the petitioner.

Madras High Court

Personal Hearing To Be Granted In All Matters Prior To Finalisation Of Assessment: Madras High Court

Case Title: SKS Builders and Promoters Versus Assistant Commissioner (ST)

The Madras High Court has held that personal hearings shall be granted in all matters prior to the finalization of assessments, except where the stand of the assessee is intended to be accepted by the department.

Madras High Court Quashes The Criminal Proceedings Against Guarantor Of Assessee, For Assessee’s Failure To Pay Tax; States It's Only Contractual Liability And Not Criminal

Case Title: Santhosh vs. The Commercial Tax Officer & Anr.

The Madras High Court has quashed criminal proceedings against the guarantor of the assessee for failing to pay the tax dues of the latter to the Commercial Tax Department.

The Commercial Tax Officer (CTO) filed a private complaint before the Judicial Magistrate against the assessee as well as the petitioner, who stood as a guarantor with respect to the tax arrears of the business done by the assessee.

Karnataka High Court

Karnataka High Court Permitted Superintendent of Central Tax To Pass Orders For Revoking Cancellation Of GST Registration On Filing Returns

Case Title: M/s S P Metals Versus Assistant Commissioner Of Commercial Taxes

The Karnataka High Court has permitted the Superintendent of Central Tax to pass suitable orders for revocation of the cancellation of the GST registration, if the petitioner/assessee files returns.

The single bench of Justice B. M. Shyam Prasad has observed that the cancellation of GST registration was without due opportunity and was arbitrary.

Calcutta High Court

Section 50C Cannot Be Applied On Compulsory Acquisition Of A Capital Asset: Calcutta High Court

Case Title: PCIT Versus Durgapur Projects Ltd.

The Calcutta High Court has held that in cases of compulsory acquisition of a capital asset (land or building, or both), the provisions of Section 50C of the Income Tax Act cannot be applied as the question of payment of stamp duty for effecting the transfer does not arise.

AO Issued Income Tax Assessment Notice To Non-Existent Company: Calcutta High Court Imposes Cost

Case Title: Orbit Projects Private Limited Vs Income Tax Officer

The Calcutta High Court has imposed a fine of Rs. 20,000 on the assessing officer for issuing the income tax assessment notice to the non-existent company.

Calcutta High Court Quashes Income Tax Notices Issued In The Name Of Non-Existing Company

Case Title: S. K. Finserve Private Limited Vs Assistant Commissioner of Income Tax

The Calcutta High Court has quashed the income tax notice issued in the name of a non-existing company, in spite of the department having notice and knowledge of non-existence of the company.

AO Has Reduced The Procedure To An Empty Formality, To Be Deprecated: Calcutta High Court

The Calcutta High Court had quashed the Assessment Order and held that the assessing officer has reduced the procedure to an empty formality, which has to be deprecated.

Madhya Pradesh High Court

Alternative Remedy Is Not Absolute Bar To Examine Conditions To Issue Reassessment Notice: Madhya Pradesh High Court

Case Title: M/S Space Enclave Private Limited Versus Income Tax Department

The Madhya Pradesh High Court stayed the reassessment proceedings and admitted them for the final hearing.

Orissa High Court

Assesses Failed To File Affidavit Proving Repayment Of Loans: Orissa High Court Sustains Addition On “Unsecured Loan”

Case Title: M/s. Unideep Food Processing (P) Ltd. Versus ITAT

The Orissa High Court has sustained the addition of unsecured loans under Section 68 of the Income Tax Act, 1961.

Prior Approval Of The Superior Officer Before Passing Of The Assessment/Reassessment Order Pursuant To A Search Operation Is A Mandatory Requirement: Orissa High Court

Case Title: ACIT, Circle-1(2), Bhubaneswar Versus M/s. Serajuddin & Co. Kolkata

The Orissa High Court has held that the requirement of prior approval of the superior officer before an order of assessment or reassessment is passed pursuant to a search operation is a mandatory requirement of Section 153D of the Income Tax Act.

Gujarat High Court

Reassessment Notices Issued After Elapse Of Six Years: Gujarat High Court Quashes Assessment

Case Title: Keenara Industries Private Limited Versus Income Tax Officer

The Gujarat High Court has held that the reassessment notices were issued after the lapse of six years and are therefore time-barred.

No Notice Served On Assessee, Assessment Order Passed Without Giving An Opportunity Of Hearing: Gujarat High Court Quashes Order

Case Title: Manishkumar Tulsidas Kaneriya Versus Assistant Commissioner Of Income Tax, Central 1, Rajkot

The Gujarat High Court, while setting aside the assessment orders, held that the assessment under Section 153 read with Section 144 had been done by the assessing officer without giving the petitioner assessee an opportunity to be heard in terms of and within the meaning of Section 144 of the Act.

Tripura High Court

Arbitrary Orders Driving Taxpayer To File Appeal By Depositing 50% Of The Disputed Taxes: Tripura High Court Imposes Cost Of Rs. 25,000 On The Taxes Recoverable From His Salary

Case Title: Megha Technical and Engineer Private Limited Versus The State of Tripura

The Tripura High Court has imposed a cost of Rs. 25,000/- on the Commissioner of Taxes to be recovered from his salary and to be paid to the Tripura High Court Bar Association for passing an order in an arbitrary manner.

Punjab & Haryana High Court

Minimum Period Of 7 Days To Respond Is Mandatory, Non-Compliance is To Reassessment Proceedings: Punjab & Haryana High Court

Case Title: Baljeet Singh Versus ITO

The Punjab & Haryana High Court has held that a minimum period of seven days to respond as provided under Section 148A(b) of the Income Tax Act is mandatory in nature and non-compliance in this regard would be fatal to the reassessment proceedings.

ITAT

Amounts Paid By Google India To Google US For Seconded Employees Does Not Come Within ‘FTS’ or ‘FIS’: ITAT

Case Title: M/s. Google LLC Versus JCIT (OSD) (IT)/DCIT (IT)

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that amounts paid by Google India to Google US with reference to seconded employees do not come within the fees for technical services (FTS) or fees for included services (FIS) under the Income Tax Act or under the India-US Tax Treaty.

Centralized Processing Centre Not Authorized To Carry Out Adjustment For Disallowance Of Section 80P Deduction: ITAT

Case Title: Sai Prerana Co-op. Credit Society Ltd. Versus Income Tax Officer

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Centralised Processing Centre (CPC) was not authorized to carry out such adjustments for disallowance of deduction under section 80P of the Income Tax Act.

Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT

Case Title: Deutsche India Pvt. Ltd. Versus Asstt. Director of Income Tax

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction.

Lease Rent Paid For Acquiring Mining Rights Is Capital In Nature, Income Tax Deduction Not Allowable: ITAT

Case Title: ZF Steering Gear (India) Ltd. Versus DCIT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has observed that lease rent paid for acquiring mining rights is capital in nature and income tax deductions cannot be allowed.

Payment Received From Foreign Company On Account Of Business Support Services Not Taxable As FTS: ITAT

Case Title: Inteva Products Netherlands BV Versus ACIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received from foreign companies on account of business support services are held to be taxable as fees for technical services (FTS).

Expenses Of Solid Waste Disposal Is An Accrued Liability As It Was Disposed At Temporary Site: ITAT Allows Claim Worth Rs. 7.77 Crores

Case Title: ACIT Versus The Green Environment Services Co-op Society Ltd.

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the assessee’s claim of Rs. 7,77,73,600 as a provision for expenses of solid waste disposal.

NFAC Bound By The Decision Of Jurisdictional High Court: ITAT

Case Title: Nagesh Consultants Versus The Deputy Commissioner of Income Tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the National Faceless Appeal Centre (NFAC) was bound by the binding decision of the jurisdictional high court, where the AO was situated.

ITAT Upholds Income Tax Addition On Amount Received For Arbitration Settlement

Case Title: TGE Gas Engineering GmbH Versus DCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the income tax addition on the amount received for arbitration settlement from Indian Oil Infrastructure & Energy Services.

An Order Is Not Prejudicial To The Interest Of Revenue U/S 263 If It Is Based On An Uncertain Issue Of Entitlement Of Treaty Benefit: ITAT

Case Title: M/s. Tata NYK Shipping Pte. Ltd. vs. Commissioner of Income Tax, International Taxation-3, New Delhi.

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that an order by assessing officer on whether a particular entity is entitled to a treaty benefit or not is a highly contentious issue and cannot be considered to be erroneous and prejudicial to the interest of revenue under section 263 of Income Tax Act, 1961.

The Amount Which Is Lower Of Unabsorbed Depreciation And Business Loss Will Be Set-Off Against Book Profits: ITAT

Case title: M/s PVR Pictures Ltd. v. Dy. CIT, Circle 19(2), New Delhi

The Delhi Bench of Income Tax Appellate Tribunal has clarified the provisions of clause (iii) of Explanation-1 to Section 115JB (2) for computation of book profits for taxation. The Tribunal held that amount which is lower between unabsorbed depreciation and business loss deserves to be set off against the current Assessment Year (A.Y.) book profits in terms of the provisions of Income Tax Act.

No Disallowance Shall Be Made With Respect To Chargeable Sum Paid To A Foreign Company Without Deduction Of Tax: ITAT

Case Title: Jaiprakash Associates Ltd. v. DCIT International Taxation Circle, Noida

The Delhi Bench of Income Tax Appellate Tribunal has held that no disallowance shall be made to the assessee in regards to the chargeable sum paid by the assessee to a foreign company without deduction of tax.

Late Filing Of Return, Denial Of Section 80P Exemption Not Justified: ITAT

Case Title: Ambaradi Seva Sahkari Mandali Ltd. Versus DCIT

The Rajkot Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that denying the exemption under Section 80P of the Income Tax Act solely on the basis of the assessee's late filing of a return is not justifiable.

Income Earned From Offshore Supply Of Escalators And Elevators Is Not Taxable In India: ITAT

Case Title: Schindler China Elevator Company Ltd. Versus ACIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that income earned by the assessee from the offshore supply of escalators and elevators is not taxable in India.

Confusion In Relation To The Service Of Intimation Through Email: ITAT Condones Delay Of 9 Years

Case Title: M.K. Hotels & Resorts Ltd. Versus Assistant Commissioner of Income Tax

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) ruled that there was significant ambiguity regarding the service of notice under Section 143(1) to the assessee via email.

Employers Have To Deposit Employees' Contribution Towards EPF/ESI On Time To Avail Income Tax Deduction: ITAT

Case Title: The National Housing Bank Versus CIT(A), NFAC

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that employers have to deposit employees' contributions towards EPF/ESI on time to avail of income tax deductions.

Income Tax Disallowances Made On Ad Hoc Basis Without Specifying A Particular Mistake: ITAT

Case Title: Dynamix India Drill-Con Co. Versus ACIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that disallowances have been done on an ad hoc basis without specifying a particular mistake.

ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITAT

Case Title: Flipkart India Pvt Ltd vs. Assistant Commissioner of Income Tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal of Flipkart India against disallowance of over Rs.15.5 Crore of expenses claimed by it under Section 37 of the Income Tax Act, 1961, towards Employee Stock Ownership Plan (ESOP).

Failure Of Kidney A Reasonable Cause Which Prevented Assessee To Supply The Documents And Replies To The AO: ITAT

Case Title: Sunil Kumar Garg Versus ITO

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that failure of the kidney was a reasonable cause of ailment that prevented the assessee from supplying the documents and replies to the AO.

Reasons Recorded For Reopening The Reassessment To Be Examined On Standalone Basis To Determine The Validity Of Proceedings U/s 147: ITAT

Case Title: Jowheri Jalaluddin Mullick Versus ITO Versus Income Tax Officer

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the reasons, as recorded for reopening the reassessment, are to be examined on a standalone basis to determine the validity of proceedings under Section 147 of the Income Tax Act.

Assessee Not Responsible To Explain Recipients Of Receipts Shown In Form No. 26AS: ITAT

Case Title: M/s Travelport LP Versus The Dy. C.I.T

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee is not responsible to explain the recipients of the receipts shown in Form No. 26AS.

Husband Entitled To TDS Credit On Interest Earned From Amount Gifted To His Wife: ITAT

The Income Tax Appellate Tribunal's (ITAT), Pune Bench ruled that the husband is entitled to TDS credit on interest earned on the amount gifted to his wife.

Characterization Of Share Application Money By AO As Unexplained Cash Credit Is Devoid Of Necessary Verifications: ITAT

Case Title: Bhatia Energy and Minerals Pvt. Ltd. Versus ITO

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the characterization of the share application money of Rs. 25 lac by the AO as an unexplained cash credit under Section 68 of the Income Tax Act is clearly devoid and bereft of necessary verifications.

ITAT Allows Section 54F Deduction Though Capital Gain Scheme Account Was Not Opened

Case Title: T. Pandian Versus ITO

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under section 54F though the capital gain scheme account was not opened.