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Weekly Round-Up Of Tax Cases: 24 April To 30 April, 2022

Mariya Paliwala
1 May 2022 12:00 PM GMT
Weekly Round-Up Of Tax Cases: 24 April To 30 April, 2022
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Supreme CourtIncome Tax Act - Loss Suffered Due To Exchange Fluctuation While Repaying Loan Can Be Regarded As Revenue Expenditure : Supreme CourtCase Title: Wipro Finance Ltd. vs Commissioner of Income Tax Citation: 2022 LiveLaw (SC) 418 Allowing the appeal filed by Wipro Finance Ltd., the Supreme Court observed that the loss suffered owing to exchange fluctuation can be regarded...

Supreme Court

Income Tax Act - Loss Suffered Due To Exchange Fluctuation While Repaying Loan Can Be Regarded As Revenue Expenditure : Supreme Court

Case Title: Wipro Finance Ltd. vs Commissioner of Income Tax

Citation: 2022 LiveLaw (SC) 418

Allowing the appeal filed by Wipro Finance Ltd., the Supreme Court observed that the loss suffered owing to exchange fluctuation can be regarded as revenue expenditure and thus an allowable deduction. The bench comprising Justices allowed the appeal against High Court judgment which had reversed the above view taken by Income Tax Appellate Tribunal.

Delhi High Court

If Principles Of Natural Justice Are Violated, Writ Remedy Is Available Despite Statutory Appeal: Delhi High Court

Case Title: Jindal Realty Limited versus National Faceless Assessment Centre, Delhi

Citation: 2022 LiveLaw (Del) 376

The Delhi High Court has quashed an assessment order passed by the revenue department without issuing a prior show cause notice and draft assessment order to the assessee. The High Court has ruled that the assessment order was passed in violation of the principles of natural justice as well as the mandatory procedure prescribed under the "Faceless Assessment Scheme" under the Income Tax Act.

Delhi High Court Stays Reopening of Income Tax Assessment Keeping In View The Credentials Of BHEL

Case Title: Bharat Heavy Electricals Limited Versus PCIT

Citation: 2022 LiveLaw (Del) 378

The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has stayed the reopening of income tax assessments, keeping in view the credentials of Bharat Heavy Electricals Limited (BHEL).

Kerala High Court

Bonafide Error In Format Of Date On E-Way Bill, Warrants Only Minor Penalty: Kerala High Court

The Kerala High Court bench of Justice Bechu Kurian Thomas has held that a minor penalty can be imposed for a bona fide mistake in the date on an e-way bill.

Can GST Be Imposed On Royalty Paid To Govt? Kerala High Court To Consider

Case Title: Royal Sand & Gravels Pvt Ltd. v. Union of India & Ors.

The Kerala High Court has admitted a plea that has raised significant questions of whether royalty paid to the government qualifies as tax and if GST can be imposed on such royalty.

Karnataka High Court

Municipal Corporations Can Levy Advertisement Fee/ Tax Under KMC Act, No Conflict With Levy Of GST: Karnataka High Court

Case Title: HUBBALLI DHARWAD ADVERTISERS ASSOCIATION and others v. STATE OF KARNATAKA and Others

Citation: 2022 LiveLaw (Kar) 144

The Karnataka High Court has declared that there is no conflict between the power to levy GST under GST Act and power of Municipal Corporation to levy advertisement fee or advertisement tax under Section 134 of the Karnataka Municipal Corporations Act.

Madras High Court

Assessee To Claim Refund of Tax Collected By State WithoutAuthority Within 3 Years From The Date of Payment: Madras High Court

Case Title: State of Tamil Nadu Versus Deputy Commissioner (CT) (FAC)

Citation: 2022 LiveLaw (Mad) 179

The Madras High Court bench of Justice R.Mahadevan and Justice Mohhammed Shaffiq has held that any tax collected without authority would certainly amount to unjust enrichment and the assessees must claim a refund of the tax collected or retained by the state within three years from the date of their payments to the department.

Asian Paints To Furnish ABank Guarantee For GST Department To Release The Detained Goods: Madras HighCourt

Case Title: Tvl.Asian Paints Limited Versus The Assistant Commissioner (ST)

The Madras High Court bench of Justice M. Dandapani has directed the GST department to release the detained goods on furnishing of the bank guarantee by Asian Paints.

Madhya Pradesh High Court

Clerical Mistake In Address On E-Way Bill: Madhya Pradesh High Court Imposes Minor Penalty

Case Title: Technosteel Infraprojects Pvt. Ltd Vs The State Of Madhya Pradesh

The Madhya Pradesh High Court bench of Justice Sheel Nagu and Justice Manindar Bhatti has held that a minor penalty can be imposed for a clerical mistake in the address on an e-way bill.

Telangana High Court

Outright Rejection Of Stay Application Is Not Justified, Need To Exercise The Appellate And Revisional Jurisdiction Judicially: Telangana High Court

Case Title: Access Tough Doors P. Ltd. Vs Additional Commissioner ST

The Telangana High Court has held that the appellate and revisional authorities must judiciously exercise their discretionary power to grant a stay under the Telangana VAT Act.

Jharkhand High Court

Initiation Of Adjudication Proceeding Without Issuance Of Show Cause Notice Is Void Ab Initio: Jharkhand High Court

Case Title: M/s. Godavari Commodities Ltd. Versus The State of Jharkhand

The Jharkhand High Court bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has held that the initiation of an adjudication proceeding without the issuance of a show cause notice is void ab initio.

Levy Of GST On Mining Royalty And Allied Charges: Jharkhand High Court Grants Interim Protection

Case Title: M/s Mandhan Minerals Corporation Versus Union of India

The Jharkhand High Court bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has granted interim protection on the levy of GST on mining royalty and allied charges.

CESTAT

Exported Goods Cannot Be Confiscated Under Section 113 Of Customs Act: CESTAT Hyderabad

Case Title: Nosch Labs Pvt Ltd versus Commissioner of Customs, Hyderabad

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that Section 113 of the Customs Act only provides for confiscation of goods that are to be exported and not for goods which have already been exported.

Service Tax Not Payable On Liquidated Damages: CESTAT

Case Title: M/s Madhya Pradesh Poorva Kshetra Versus Commissioner of CGST & Central Excise

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of S.K. Mohanty (Judicial Member) and P.V. Subba Rao (Technical Member) has held that service tax is not payable on liquidated damages recovered on the failure to fulfil the contract.

Denial Of Availment Of CENVAT Credit On Performa Invoices, Despite All Information, Is Absolutely Wrong: CESTAT

Case Title: Hindustan Zinc Ltd. Versus Commissioner Appeals

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Rachna Gupta (Judicial Member) held that the denial of availment of Cenvat Credit on performa invoices was absolutely wrong.

AAR

Apple And Malt Cola Fizzy Attracts 28%GST And 12% GST Compensation Cess: Gujarat AAR

Applicant's Name: M/s. Mohammed Hasabhai Karbalai

Citation: ADVANCE RULING NO. GUJ/GAAR/R/2022/02

The Gujarat Authority of Advance Ruling (AAR) consisting of Atul Mehta and Arun Richard has ruled that 28% GST and 12% GST Compensation Cess are payable on Apple and Malt Cola Fizzy.

GST ITC Admissible On Bus Hired For Transportation Of Employees Having Capacity Of More Than 13Passengers: Gujarat AAR

Applicant's Name: M/s. Emcure Pharmaceuticals Limited

The Gujarat Authority of Advance Ruling (AAR) consisting of Atul Mehta and Arun Richard ruled that the GST ITC is admissible on buses hired for transportation of employees having a capacity of more than 13 passengers.

ITAT

Subscription Fee Towards Cloud Services Not Taxable As Royalty: Delhi ITAT

Case Title: M/s MOL Corporation versus DCIT (International Taxation)

The Delhi Bench of ITAT, consisting of members Anubhav Sharma (Judicial Member) and R.K. Panda (Accountant Member), has ruled that subscription fee received towards Cloud Services is not taxable as royalty.

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