Income Tax Act | Writ Petition Can Be Entertained To Examine If Conditions To Issue Section 148 Notice Are Satisfied : Supreme Court

Case Title: Red Chilli International Sales Versus ITO

Citation: 2023 LiveLaw (SC) 16

The Supreme Court recently set aside an order of the Punjab and Haryana High Court which dismissed a writ petition filed by an assessee against a notice issued under Section 148A of the Income Tax Act 1961 for reopening assessment.

The High Court had dismissed the writ petition on the ground of availability of alternative remedy. Taking exception to the High Court's approach, the Supreme Court observed that writ petitions have been entertained to examine whether the conditions for the issuance of notice under Section 148 of the Income Tax Act have been satisfied.

Bombay High Court

Bombay High Court Quashes Reassessment Order On Asian Paints In View Of Full Disclosure

Case Title: Asian Paints Ltd. Versus The Assistant Commissioner of Income-tax

The Bombay High Court has quashed the reassessment order as the assessee, Asian Paints, disclosed fully and truly all facts material and necessary for the assessment.

Karnataka High Court

Circular Regarding Mismatch Of ITC Is Applicable For 2019-20 In Case Of Identical Errors: Karnataka High Court

Case Title: M/s Wipro India Ltd. Versus Assistant Commissioner Of Central Tax

The Karnataka High Court has held that the circular regarding the mismatch of input tax credit (ITC) is applicable for 2019–20 in the case of identical errors.

Calcutta High Court

Tribunal Being Fact-Finding Body, Unless Perversity Shown, High Court Can’t Interfere: Calcutta High Court

Case Title: PCIT Versus Britannia Industries Ltd.

The Calcutta High Court has held that unless and until the order passed by the Tribunal suffers from any perversity or ignores any vital fact in an appeal under Section 260A of the Income Tax Act, the Court is not expected to interfere with the order.

Gujarat High Court

Assessee Entitled For Deduction On Export Benefits On Account Of The Refund Of Excise Duty: Gujarat High Court

Case Title: PCIT Versus M/s. Reckitt Benckiser Healthcare India Ltd.

The Gujarat High Court has upheld the tribunal’s order, by which it was held that the assessee was entitled to and eligible for deduction on export benefits on account of the refund of excise duty under Section 80IC of the Income Tax Act.

Once Assessee Shows Genuineness Of Transactions, No Additions Can Be Made: Gujarat High Court

Case Title: PCIT Versus M/s.Neotech Education Foundation

The Gujarat High Court has held that the assessee has discharged the primary onus to prove the creditworthiness of the transaction.

Reopening The Assessment Based On Change Of Opinion, Not Valid: Gujarat High Court

Case Title: Shahlon Silk Industries Pvt. Ltd. Versus ACIT

The Gujarat High Court has held that the Assessing Officer cannot have any jurisdiction to issue the notice for reopening the assessment when the assessment is sought to be reopened beyond a period of four years.

The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that there was a change of opinion by the Assessing Officer to reopen the assessment for the assessment year 2013-2014, more particularly when the issues raised in the reopening assessment were already considered during the assessment proceedings under Section 143(3) of the Act, 1961.

Telangana High Court

Subsumption Of Service Tax Will Not Absolve Liability To Pay GST If Service Tax Was Agreed To Be Paid In Agreement : Telangana High Court

Case Title: Smt K. Himabindu v. TSRTC

In a Writ Petition, the Telangana High Court ordered that the Petitioner is liable to pay the GST on the license fee in place of service tax as the Petitioner was paying service tax separately under the terms of Deed of License.

Tripura High Court

State Of Tripura Has No Jurisdiction To Levy VAT For Supply Of LPG Cylinder Under Work Orders Executed Outside The State: Tripura High Court

Case Title: M/s Maharaja Gas Agency versus State of Tripura & Ors.

The Tripura High Court has ruled that the State of Tripura has no jurisdiction to levy VAT under the Tripura Value Added Tax Act, 2004 (TVAT), on transport or supply of LPG cylinders to Tripura under the work orders executed outside the State. The bench of Acting Chief Justice T. Amarnath Goud and Justice Arindam Lodh held that that the situs of the sale would be the place where the contracts were executed.

ITAT

TDS Not Applicable To Salary/Commission Paid To Partners: ITAT

Case Title: ACIT Versus Dhar Construction Company

The Gauhati Bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS is not applicable to salary or commission paid to partners.

CESTAT

Once The Flat Buyer Cancels The Booking Builder Not Liable To Pay Service Tax: CESTAT

Case Title: Credence Property Developers Pvt. Ltd. Versus Commissioner of CGST & Central Excise

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that once the buyer cancelled the booking and the consideration for service was returned, the service contract got terminated, and once it is established that no service is provided, then refund of tax for such service becomes admissible.

Service Tax Not Payable On Intermediary In The Sale Of Space or Time For Media Agency On Commission Basis: CESTAT

Case Title: Drishty Communication Private Limited Versus C.C.E. & S.T.-Rajkot

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on intermediaries in the sale of space or time for media agencies on a commission basis.

Responsibility Of Assessee To Know The Eligibility Before Making Export Benefits Claim: CESTAT

Case Title: M/s Cipra Enterprises Versus Commissioner of Customs

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the appellant made a wrong claim of export benefit under MEIS, having been misadvised by the Customs House Agent (CHA).

Clinical Establishments Providing Health Care Services Are Exempted From Service Tax: CESTAT

Case Title: M/s. Maharaja Agrasen Hospital Charitable Trust Versus

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that clinical establishments providing health care services are exempt from service tax.

AAAR

18% GST Applicable On Services Of Project Management Consultancy Services: Maharashtra AAAR

Applicant’s Name: M/s. Worley Services India Pvt. Ltd.

The Maharashtra Appellate Authority for Advance Ruling (AAAR) has ruled that project management consulting services are subject to 18% GST.

The two-member bench of D.K. Srinivas and Rajiv Kumar Mittal has upheld the AAR’s ruling and observed that services provided through their professionals are in the nature of professional and technical services as the services provided require technically qualified and trained professionals and staff. Thus, the services provided by the appellant will merit classification under SAC 998349 with the description "Other technical and scientific services."

AAR

Salted, Flavoured Potato Chips, Chivda, Sev, Hing Bhujiya Attracts 12% GST: Gujarat AAR

Applicant’s Name: Prajapati Keval Dineshbhai

The Gujarat Authority for Advance Ruling (AAR) has observed that 12% GST is applicable on salted and flavouring potato chips, chivda, sev, and hing bhujiya.