Tax Cases Monthly Round-Up: June 2023

Update: 2023-07-03 09:15 GMT
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Indirect TaxesDelhi High CourtShow Cause Notice Lacks Reasons In Detail For Denial Of Refund Of ITC To Mcdonald’s India: Delhi High CourtCase Title: M/S Mcdonalds India Pvt. Ltd. Versus Additional CommissionerCitation: 2023 LiveLaw (Del) 479The Delhi High Court has held that the show cause notice lacks reasons in detail for the denial of refund of Input Tax Credit (ITC) to...

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Indirect Taxes

Delhi High Court

Show Cause Notice Lacks Reasons In Detail For Denial Of Refund Of ITC To Mcdonald’s India: Delhi High Court

Case Title: M/S Mcdonalds India Pvt. Ltd. Versus Additional Commissioner

Citation: 2023 LiveLaw (Del) 479

The Delhi High Court has held that the show cause notice lacks reasons in detail for the denial of refund of Input Tax Credit (ITC) to Mcdonald's India.

Delhi High Court Quashes SCN For Being Devoid Of Reasons, Restores GST Registration

Case Title: Rishiraj Aluminium Private Limited Versus Goods And Service Tax Officer

The Delhi High Court has quashed the show cause notice as it was devoid of reasons and restored the GST registration.

Rule 89(4) Under CGST Rules Inapplicable On Refund Of Integrated Tax Paid On Zero-Rated Supply: Delhi High Court

Case Title: Ohmi Industries Asia Private Limited Versus Assistant Commissioner

The Delhi High Court has held that Rule 89(4) of the Central Goods and Services Tax Rules, 2017 is inapplicable to cases of refund of integrated tax paid on zero-rated supply.

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).

Excise Commissioner Is Duty Bound To Cancel Liquor Licence On The Application Of Legal Heirs Of The Deceased: Bombay High Court

Case Title: Dattaram Govind Naik Versus State Of Goa

The Bombay High Court, Goa Bench has held that when the legal heirs of the deceased license holder applied for cancellation, the excise commissioner was duty-bound to cancel it.

Karnataka High Court

Karnataka High Court Issues Directions To Determine Tax Difference Calculation For Pre-GST Works Contract

Case Title: B S Kumar Swamy Versus State Of Karnataka

The Karnataka High Court has issued directions determining the tax difference calculation for pre-GST works contracts.

Dept. To Reconsider The Application Under Karasamadhana Scheme: Karnataka High Court Quashes Recovery From The Banker

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.

Kerala High Court

GST Act Has An Inbuilt Mechanism And Impliedly Excludes The Application Of The Limitation Act: Kerala High Court

Case Title: Penuel Nexus Pvt. Ltd. Versus The Additional Commissioner Headquarters (Appeals)

Citation: 2023 LiveLaw (Ker) 280

The Kerala High Court has held that Section 107 of the CGST Act is an inbuilt mechanism and has impliedly excluded the application of the Limitation Act.

Andhra Pradesh High Court

Life Tax On Vehicle Should Be On The Cost, Excluding GST And Cess: Andhra Pradesh High Court Directs Refund

Case Title: Valluru Pavan Chand Versus State of AP

The Andhra Pradesh High Court has held that life tax is to be collected from the vehicle owner upon sale based on the net invoice price of the vehicle and not the ex-showroom price of the vehicle.

Tax Not Payable On Motor Vehicles Exclusively Used for Contract Inside Central Deposit Yard: Andhra Pradesh High Court

Case Title: Tarachand Logistics Solutions Limited Versus State of Andhra Pradesh

The Andhra Pradesh High Court has held that the motor vehicles exclusively used for the petitioner's contract inside the Central Deposit Yard of Rashtriya Ispat Nigam Limited (RINL) are not liable for taxation and are entitled to exemption.

Allahabad High Court

'Refrain From Issuing Service Tax /GST Notices To Lawyers Rendering Legal Services': Allahabad HC Directs Lucknow GST Commissionerate

Case title - Pankaj Khare vs. Union Of India Thru. Secy. Deptt. Of Custom And Cgst, Ministry Of Finance, New Delhi And Others 2023 LiveLaw (AB) 187 [WRIT TAX No. - 148 of 2023]

Case Citation: 2023 LiveLaw (AB) 187

The Allahabad High Court has ordered the Commissioner, GST to issue clear direction to the GST Commissionerate in Lucknow that no notices regarding payment of service tax /GST are issued to the lawyers rendering legal service falling in the negative list so far as service tax is concerned.

Gujarat High Court

'Provide Specific Reasons': Gujarat High Court Quashes Order Cancelling Firm's GST Registration Based On Cryptic Show Cause Notice

Case Title: Sona Metals Versus State Of Gujarat

The Gujarat High Court has quashed an order cancelling the Goods and Services Tax (GST) registration of Sona Metals, citing a lack of detailed reasons for the cancellation.

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.

SGST Dept. Can Initiate Proceedings Against The Unit Situated In SEZ: Gujarat High Court Imposes Rs.10K Cost

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).

Madhya Pradesh High Court

Failure Of Kia Motors To Furnish Information For The Entry Of Demo Car Into Madhya Pradesh: Madhya Pradesh High Court Upholds GST Levy

Case Title: M/S Kia Motors India Private Ltd. Versus The State Of Madhya Pradesh

The Madhya Pradesh High Court has held that in the absence of information given, the entry of a demo car into the state of Madhya Pradesh renders it exigible to GST.

Rajasthan High Court

‘Pizza’ And ‘Sandwiches’ Are ‘Cooked Foods’: Rajasthan High Court Allows Exemption Of Payment Of VAT In Excess Of 5%

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.

VAT Leviable On Entire ‘Entry-Coupon’ Amount Charged By Chokhi Dhani Resort Is Adjustable Against Food: Rajasthan High Court

Case Title: Commercial Taxes Officer Versus Chokhi Dhani Resorts Pvt. Ltd.

The Rajasthan High Court, Jaipur Bench, has held that Value Added Tax (VAT) is leviable on the entire ‘entry-coupon’ amount charged by Chokhi Dhani Resort, which is adjustable against food.

Tripura High Court

GST ITC Available On Work Contract Services For The Construction Of Hotel Building: 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.

Calcutta High Court

GST Registration Cancellation With Retrospective Effect Can’t Be A Ground To Deny GST ITC To The Buyer: Calcutta High Court

Case Title: M/s. Gargo Traders Versus The Joint Commissioner, Commercial Taxes

The Calcutta High Court, while noting that at the time of the transaction, the name of the supplier as a registered taxable person was already available with the government record, and the buyer/petitioner had paid the amount of the purchased articles as well as tax through the bank and not in cash, remanded the matter back to the department.

Punjab And Haryana High Court

Punjab And Haryana High Court Directs GST Dept. To Return Illegally Recovered GST Without Issuing SCN Along With 6% Interest

Case Title: M/s Samyak Metals Pvt. Ltd. Versus Union of India and others

The Punjab and Haryana High Court has directed the GST Department to return illegally recovered GST without issuing a Show Cause Notice, along with 6% interest.

Punjab & Haryana High Court Impedes Coercive Actions Against Online Opinion Betting App In Respect Of Rs. 1500 Crore GST Notice

Case Title: Probo Media Technologies Versus Union of India

The Punjab and Haryana High Court impeded coercive actions against the online opinion betting app, Probo Media Technologies, in respect of the GST Notice demanding Rs. 1500 crore.

Orissa High Court

GST Tribunal Not Constituted: Orissa High Court Condones Delay And Stays GST Demand

Case Title: M/s. Laxman Barik Versus Joint Commissioner of State Tax (Appeals)

The Orissa High Court stayed the Goods and Service Tax (GST) demand subject to deposit of tax as the GST Tribunal is not constituted.

CESTAT

Excess Service Tax Paid Can Be Adjusted Towards Service Tax Liability For The Succeeding Month Or Quarter: CESTAT

Case Title: M/s B.L. Kashyap & Sons Ltd. Versus Commissioner of Service Tax

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excess service tax paid can be adjusted towards service tax liability for the succeeding month or quarter.

Profit Made On Transportation Charges Need Not Be Included In The Assessable Value, No Excise Duty Payable: CESTAT

Case Title: M/s. Concrete Products and Construction Co. Versus Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that profit made on transportation charges need not be included in the assessable value and the excise duty is not leviable.

Accumulated Cenvat Credit Lying Unutilized Does Not Carry Any Interest: CESTAT

Case Title: M/s. Ad2Pro Global Creative Solutions Pvt. Ltd. Versus The Commissioner of Service Tax

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that accumulated CENVAT credit lying unutilized does not carry any interest.

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.

Certificates Issued By Qualified Professionals Like CAs Can’t Be Brushed Aside Merely For Lack Of Corroborative Evidence: CESTAT

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.

Services Rendered By Indian Commission Agent To Foreign Principal Will Qualify As Export Of Service: CESTAT

Case Title: M/s. Arcelor Mittal Stainless (I) P. Ltd. Versus Commissioner Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the services rendered by Indian commission agents to foreign principals will qualify as "export of service.

CESTAT Allows Service Tax Refund On Advance Amount Returned To The Buyer, Upon The Cancellation Of The Flats Booking

Case Title: Guardian Landmarks LLP Versus Commissioner of Central Excise & Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed service tax refunds on advance amounts returned to the buyer upon cancellation of the flat booking.

No Service Tax Payable On Administrative Charges Received From Coal Mine Companies By Coal Mines PF Organization: CESTAT

Case Title: Coal Mines Provident Fund Organization Versus Commissioner of Central Excise & Service Tax, Dhanbad

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on administrative charges received from coal mine companies by the Coal Mines Provident Fund Organisation.

Service Tax Not Payable On Fixed Facility Charges For Providing Liquid Gas Storage Tanks: CESTAT

Case Title: M/s.Inox Air Products Ltd. Versus The Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on fixed facility charges (FFC) for providing liquid nitrogen gas storage tanks.

AAAR

Movement Of Goods Between Branches In Different States Taxable Under 'Lease Rental Service': AAAR

Appellant’s Name: CHEP India Private Limited

The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the movement of goods between branches in different states is taxable under 'lease rental service'.

18% GST Payable On Target-Based Incentive Received By Intel Reseller: AAAR

Appellant’s Name: M/s MEK Peripherals India Private Limited Versus

The Maharashtra Appellate Authority of Advance Ruling (AAAR), while upholding the Order of the AAR, ruled that 18% GST is payable on target-based incentives received by Intel resellers.

PPF Funds Management Service Prior To 10.9.2004 Not Liable To Pay Service Tax: CESTAT

Case Title: M/s State Bank of India, Mumbai Versus Commissioner of Service Tax

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on the operation of PPF accounts after September 10, 2004.

Salary Is Out Of The Purview Of Service Tax: CESTAT Quashes Service Tax Demand Against Kellogg

Case Title: M/s. Kellogg India Pvt. Ltd. Versus Commissioner of CGST & CE, Belapur

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against Kellogg India and held that salary is out of the purview of service tax.

Charging Higher Fees By Charitable Institution Will Not Make It Commercial; CESTAT Allows Refund To Adani Institute Of Medical Sciences

Case Title: Gujarat Adani Institute Of Medical Sciences Versus C.C.E. & S.T.-Rajkot

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund to Gujarat Adani Institute Of Medical Sciences and held that merely by charging a higher fee, an institution cannot be treated as a commercial institute.

AAR

GST Payable On Monthly Rental, Night Charges, Fuel On Mileage Basis In Availing Motor Vehicle Rental Services: AAR

Applicant’s Name: Uttarakhand Civil Aviation Development Authority

The Uttarakhand Authority of Advance Ruling (AAR) has held that GST is payable on monthly rental, night charges, and fuel on a mileage basis when availing motor vehicle rental services.

GST Is Payable On Substance Use Disorder As It Is Out Of Ambit Of Health Care Services: Rajasthan AAR

Applicant’s Name: M/S Sanjeevani Psychiatric Clinic

The Rajasthan Authority of Advance Ruling (AAR) has held that Goods and Service Tax (GST) is payable on substance use disorder as it is outside the ambit of health care services.

‘Duty Credit Scrips’ To Be Excluded From The Value Of Exempt Supply To Compute ITC Reversal: AAR

Applicant’s Name: M/s. Kaveri Exports, TSAAR Order No.12/2023

The Telangana Authority of Advance Ruling (AAR) has ruled that "duty credit scrips" shall be excluded from the value of exempt supply.

Full Credit Available On GST Charge In The Tax Invoice Issued By The Supplier: AAR

Applicant’s Name: M/s. Vedmutha Electricals India Private Limited

The Andhra Pradesh Authority of Advance Ruling (AAR) has ruled that full credit of the GST charge is included in the tax invoice issued by the supplier even if later commercial or financial credit notes are issued.

Direct Taxes

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.

Delhi High Court Directs AO To Provide Information To Vodafone Mauritius To Drive Out The Validity Of TRC

Case Title: VODAFONE MAURITIUS LIMITED Versus ACIT

The Delhi High Court has directed the AO to provide information to Vodafone Mauritius to determine the validity of the Tax Residency Certificate (TRC).

AO Can Make Reference To TPO Only After Selecting Case For Scrutiny Assessment: Bombay High Court

Case Title: Pr. Commissioner of Income Tax Versus Kimberly Clark Lever Private Limited

The Bombay High Court has held that the Assessing Officer (AO) can make reference to the Transfer Pricing Officer (TPO) under Section 92CA of the Income Tax Act only after selecting the case for scrutiny assessment.

Capital Gain To Be Taxed In Singapore: Bombay High Court Allows Capital Gains Exemption To FII

Case Title: CIT Versus M/s Citicorp Investment Bank

The Bombay High Court has granted the capital gains exemption to Foreign Institutional Investors (FII).

CBDT Circular Allowing Benefit Only To Cases Where Appeals Are ‘Dismissed In Limine’ Is Arbitrary: Bombay High Court

Case Title: Oerlikon Balzers Coating India Versus Union of India

The Bombay High Court has quashed FAQ 61 of the circular 21/2020 dated December 4, 2020, issued by the CBDT to the extent that it restricts appeals to those dismissed in limine’ on the ground that it was not only adverse to the interest of the assessee but also contrary to the object and reasons of the Direct Tax Vivad Se Viswas Act, 2020 (DTVSV-A).

Assessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores Demand

Case Title: Darpan Kohli Versus Assistant Commissioner Of Income Tax

The Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.

AO Unclear whether The Notice Is Issued To An Individual Or A Corporate Entity: Delhi High Court Quashes Reassessment Notice

Case Title: Home Credit India B.V. Versus ACIT

The Delhi High Court has quashed the reassessment notice for non-application of mind by the department.

Bombay High Court

AO Can Make Reference To TPO Only After Selecting Case For Scrutiny Assessment: Bombay High Court

Case Title: Pr. Commissioner of Income Tax Versus Kimberly Clark Lever Private Limited

The Bombay High Court has held that the Assessing Officer (AO) can make reference to the Transfer Pricing Officer (TPO) under Section 92CA of the Income Tax Act only after selecting the case for scrutiny assessment.

Capital Gain To Be Taxed In Singapore: Bombay High Court Allows Capital Gains Exemption To FII

Case Title: CIT Versus M/s Citicorp Investment Bank

The Bombay High Court has granted the capital gains exemption to Foreign Institutional Investors (FII).

CBDT Circular Allowing Benefit Only To Cases Where Appeals Are ‘Dismissed In Limine’ Is Arbitrary: Bombay High Court

Case Title: Oerlikon Balzers Coating India Versus Union of India

The Bombay High Court has quashed FAQ 61 of the circular 21/2020 dated December 4, 2020, issued by the CBDT to the extent that it restricts appeals to those dismissed in limine’ on the ground that it was not only adverse to the interest of the assessee but also contrary to the object and reasons of the Direct Tax Vivad Se Viswas Act, 2020 (DTVSV-A).

Assessing Officer Has No Jurisdiction To Reopen Assessment If Dispute Is Settled Under Kar Vivad Samadhan Scheme: Bombay High Court

Case Title: Citibank N.A. Versus S.K. Ojha

The Bombay High Court has held that there is no jurisdiction for an assessing officer to reopen an assessment if a dispute is settled under the Kar Vivad Samadhan Scheme (KVSS).

Bombay High Court Allows BOCW Cess Refund On Supply Portion Of Contract

Case Title: GE T and D India Ltd Versus Union of India & Ors

The Bombay High Court has allowed the Building and Other Construction Workers Welfare (BOCW) Cess refund on the supply portion of the contract.

Director Proves Lack Of Control On Financial Affairs: Bombay High Court Quashes Income Tax Recovery

Case Title: Prakash B. Kamat Versus Principal Commissioner of Income-tax

The Bombay High Court has quashed the income tax recovery against the Director of a company on the grounds that the Director has sufficiently discharged the burden cast upon him in terms of Section 179(1) of the Income Tax Act.

Karnataka High Court

Notice And Assessment Order Passed In The Name Of Non-Existing Company Is Illegal And Without Jurisdiction: Karnataka High Court

Case Title: Coffee Day Resorts (Msm) Pvt. Ltd. Versus The Deputy Commissioner Of Income-Tax

The Karnataka High Court has held that a notice and assessment order passed in the name of a non-existing company is substantively illegal and is an order passed without jurisdiction.

Karnataka High Court Allows Tax Exemption On Voluntary Donation Received By Educational Institution

Case Title: Pr Commissioner Of Income-1 Tax (Exemptions) Versus M/S Rashtreeya Sikshana Samithi Trust

The Karnataka High Court has allowed a tax exemption on voluntary donations received by educational institutions.

Kerala High Court

Land To Be Re-assessed For Fixing Basic Tax Rate After Change In The Nature Of Land: Kerala High Court

Case Title: K.R Santhosh Versus Revenue Divisional Officer

Citation: 2023 LiveLaw (Ker) 268

The Kerala High Court has held that as the nature of the land of the petitioner has been permitted to be changed pursuant to the passing of a statutory order under the Kerala Land Utilisation Order, 1967, the competent authority is bound to re-assess the rate of basic tax and to make necessary entries in the Basic Tax Register after verifying the veracity and genuineness of the permission obtained.

Gujarat High Court

Difficult To Submit Complete Reply To The SCN In Less Than 12 Hours: Gujarat High Court Quashes Assessment Order

Case Title: Dineshkumar Chhaganbhai Nandani Versus Income Tax Officer

The Gujarat High Court quashed an assessment order made by the income tax authorities without granting the petitioner an opportunity to be heard. The court found that the show cause notice cum draft assessment order was issued with an extremely short deadline, leaving the petitioner less than 12 hours to respond.

Sales-Tax Exemption Certificate Has Overriding Effect Over VAT Notification: Karnataka High Court

Case Title: State of Karnataka Versus Aishwarya Fort

The Karnataka High Court has held that the sales tax exemption certificate is valid for 7 years and could not have been rescinded before the period of eligibility expired as it is a sovereign assurance.

Calcutta High Court

TDS Not Deductible On Trade Discount Allowed By Newspaper Company To INS Accredited Advertising Agent: Calcutta High Court

Case Title: Commissioner Of Income Tax TDS, Versus ABP Private Limited

The Calcutta High Court has held that TDS is not deductible on trade discounts allowed by newspaper companies to Indian Newspaper Society (INS) accredited advertising agents.

Gauhati High Court

Gauhati High Court Issues Notice On Contempt Plea Alleging Non-Compliance Of Direction To Refund Tax Deducted From BSF DIG’s Salary

Case Title: Dr. Chyawan Prakash Meena v. Raja Ghosh, IRS & 4 Ors.

The Gauhati High Court on Monday issued notice to the Income Tax Officials in a contempt petition filed by a DIG of Border Security Force alleging non-compliance of the court order directing the IT authorities to refund the tax deductions made from the officer's salary.

Jammu & Kashmir And Ladakh High Court

Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn Shawls

Case Title: M/s Ali Shah through Arif Ahmad Shah Versus Union of India and others

Citation: 2023 LiveLaw (JKL) 166

The Jammu & Kashmir And Ladakh High Court has dismissed a writ petition challenging a show cause notice regarding the export of banned yarn shawls.

ITAT

Bogus Long-Term Capital Gains From Transaction In Penny Stocks: ITAT Upholds Addition

Case Title: Hemil Subhashbhai Shah Versus DCIT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of bogus long-term capital gains from transactions in penny stocks.

Gift From Family Members Do Not Require Any Special Occasion: ITAT Deletes Addition

Case Title: Shri Hemant Pandya Versus ITO

The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that addition and held that gifts from family members do not require any special occasion.

Trust Created For Managing The Statutory Obligations Of Employees Of The Parent Trust: ITAT Grants Section 12AA Registration

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.

AO Can’t Sit On The Armchair Of Businessman Assessee To Replace His Business Strategy By His Own Whims And Fancies: ITAT

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).

Benefits Of India- Mauritius DTAA Available To Collective Investment Vehicles: ITAT

Case Title: Sapein Funds Ltd. Versus CIT(International Taxation)

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the benefits of the Double Taxation Avoidance Agreement (DTAA) are available to collective investment vehicles.

200% Penalty Can’t Be Levied Unless Dept. Specifies Misreporting: ITAT

Case Title: Saltwater Studio LLP Versus NFAC

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that a 200% penalty can’t be levied unless the department specifies misreporting.

Interest Income Received On Temporary FDs Is Eligible For Exemption: ITAT

Case Title: Allstate India Private Limited Versus Deputy Commissioner of Income-tax

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interest income received on temporarily fixed deposits is eligible for exemption.

Joint Ownership Of The Property Is No Bar In Claiming Exemption Under Section 54F Of The Income Tax Act: ITAT

Case Title: Zainul Abedin Ghaswala Versus CIT(A), NFAC

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 54F of the Income Tax Act on the grounds that the assessee is not the exclusive owner of multiple residential properties occupied by other family members.

Income Tax Not Chargeable On Interest Subsidy Received Under Technology Upgradation Fund Scheme: ITAT

Case Title: Dy. Commissioner of Income-tax Central Circle 1(4) Versus M/s Grasim Industries Ltd.

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not payable on the interest subsidy received under the technology upgradation fund scheme.

Expenses For Community Development, Environment Health & Safety : ITAT Allows CSR Expenditure

Case Title: Dy. Commissioner of Income Tax Versus M/s. GMR Warora Energy Ltd.

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the expenditure has been accepted to be for community development and environmental health and safety expenses, the same cannot be held to have not been incurred wholly and exclusively for the purpose of business in the year under consideration.

Income From The Sale Of RECs Is Capital In Nature, Is Not Subject To Taxation: ITAT

Case Title: M/s Satia Industries Ltd. Versus NFAC

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income from the sale of Renewable Energy Certificates (RECs) is classified as capital in nature and is not subject to taxation.

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