Tax Cases Weekly Round Up: 26 March To 1 April, 2023
Mariya Paliwala
3 April 2023 1:00 PM GMT
Supreme Court 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...
Supreme Court
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.
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
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.
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
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.
Calcutta High Court
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.
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
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.
AAR
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.