Tax Cases Weekly Round-Up: 4 June To 10 June, 2023
Mariya Paliwala
11 Jun 2023 11:54 AM IST
Delhi High CourtDelhi High Court Directs Dept. To Reconsider Travelport UK’s Refund AdjustmentCase Title: Travelport International Operations Limited United Kingdom Versus Commissioner Of Income Tax International Taxation 3 N.Delhi & Ors.Citation: 2023 LiveLaw (Del) 506The Delhi High Court has directed the department to reconsider Travelport UK’s refund adjustment on the basis of...
Delhi High Court
Delhi High Court Directs Dept. To Reconsider Travelport UK’s Refund Adjustment
Case Title: Travelport International Operations Limited United Kingdom Versus Commissioner Of Income Tax International Taxation 3 N.Delhi & Ors.
Citation: 2023 LiveLaw (Del) 506
The Delhi High Court has directed the department to reconsider Travelport UK’s refund adjustment on the basis of the contents of the writ petition.
Bombay High Court
Bombay High Court Upholds The Validity of Provisions Dealing With Place Of Supply Under IGST
Case Title: Dharmendra M. Jani Versus Union of India
The Bombay High Court has upheld the validity of Section 13(8)(b) and Section 8(2), which deal with place of supply under the Integrated Goods and Service Tax Act, 2017 (IGST Act).
Karnataka High Court
Case Title: M/s. GE T & D India Ltd. Versus State Of Karnataka
The Karnataka High Court has quashed the recovery from the banker and directed the department to reconsider the application under the Karasamadhana Scheme.
Gujarat High Court
GST Payable Only On The Cost of Construction and Not On The Cost Of Land: Gujarat High Court
Case Title: Munjaal Manishbhai Bhatt Versus Union Of India
The Gujarat High Court, while giving major relief to the buyers, has held that GST is payable only on the cost of construction and not on the cost of land.
Case Title: RHC Global Exports Private Limited Versus Union Of India
The Gujarat High Court has held that the state GST department can initiate proceedings against the unit situated in the Special Economic Zone (SEZ).
Rajasthan High Court
Case Title: M/s Devyani International Limited Versus The Additional Commissioner
The Jaipur Bench of the Rajasthan High Court has held that the sale of ‘pizza’ and ‘sandwich’ would qualify as the sale of ‘cooked food’ and the sale shall be eligible for the exemption of payment of Value Added Tax (VAT) in excess of 5%.
Burden To Prove That A Specific Product Falls Within A Particular Tariff Is Always On The Department: Rajasthan High Court
Case Title: M/s Compuage Infocom Limited Versus The Assistant Commissioner
The Jaipur Bench of the Rajasthan High Court has held that the burden to prove that a specific product falls within a particular tariff is always on the revenue, more so when the revenue is trying to classify products in the residual entry as against the specific entry.
Tripura High Court
Case Title: M/S SR Constructions Vrs. The Union of India & Ors.
The Tripura High Court has held that in providing taxable work contract services for the said construction of a hotel building, the assessee is entitled to take an input tax credit on the goods and services being utilized for providing the taxable work contract services.
J&K And Ladakh High Court
GST Budgetary Support Scheme Can’t Be Interpreted Liberally: J&K And Ladakh High Court
Case Title: M/s Best Crop Science Industrial Area Versus Union of India
Citation: 2023 LiveLaw (152)
The Jammu & Kashmir and Ladakh High Courts have held that the GST Budgetary Support Scheme cannot be interpreted liberally.
ITAT
Case Title: ICRW Group Gratuity Trust Versus ICLEI South Asia Group Gratuity Trust
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that any trust that has been created for the purpose of managing the statutory obligations of employees of the parent trust would certainly fall within the ambit of advancement of general public utility and, hence, be considered a charitable activity as defined under Section 2(15) of the Income Tax Act.
Case Title: ACIT Versus Ashish Bansal
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy with his own whims and fancies.
Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITAT
Case Title: ACIT Versus Kamlesh Kumar Rathi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income derived from the sale of agricultural land is not a capital asset.
Deemed Dividend Cannot Be Taxed In The Hands Of Non-Shareholders: ITAT
Case Title: DCIT Versus Aaryavart Infrastructure P. Ltd.
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that deemed dividends cannot be taxed in the hands of non-shareholders.
Provisions Of Section 44BB Not Applicable In Absence Of PE: ITAT
Case Title: Baker Hughes Energy Technologies UK Ltd. Versus ACIT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the provisions of Section 44BB of the Income Tax Act are not applicable in the absence of a permanent establishment (PE).
CESTAT
Manufacturing Without Proper Manufacturing Facilities: CESTAT Upholds Excise Duty Demand, Penalty
Case Title: Orkay Gears Versus C.C.E.-Ahmedabad-i
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that manufacture and clearances made by the four units availing the benefit of Notification No. 8/2003-CE have to be clubbed together as these units are one and the same. Their operations are under common management/family members and financial control, and they have mutual financial interests with each other.
Case Title: Rajashree Polyfil Versus Commissioner of Central Excise & ST
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that certificates issued by qualified professionals like cost accountants, chartered accountants, and chartered engineers should not be brushed aside merely with the statement that corroborative evidence was not produced.
