Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022

High CourtsDelhi High Court Income Tax Dept. To Decide On Rectification Application Filed By American Express, Grant Refund If Any: Delhi High Court Case Title: American Express India Private Limited Versus ACIT Citation: 2022 LiveLaw (Del) 289 The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has directed the income tax department to decide on the rectification application filed by American Express and grant a refund, if any, along with the interest. Charitable Institution Can't Be Denied Income Tax Exemption For Collecting Service Charges From Its Donors To Defray Administrative Cost: Delhi High Court Case Title: CIT (E) Versus India HIV Aids Alliance Citation: Citation: 2022 LiveLaw (Del) 294 The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has held that charitable institutions cannot be denied income tax exemption for collecting service charges from their donors to defray administrative costs. Madras High Court Wrong Declaration In E-Way Bill: Madras High Court Quashes Penalty Under GST As There Was No Intention Of Tax Evasion The Madras High Court bench of Justice C. Saravanan has quashed the penalty under GST for a wrong declaration in an e-way bill as there was no intention of tax evasion. Gujarat High Court No Show Cause Notice Issued Along With Draft Assessment Order: Gujarat High Court Quashes Section 144B Order Case Title: Symphony Limited Vs ACIT The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has held that the issuance of a show cause notice along with the draft assessment order is absolutely necessary before passing an order under Section 144B of the Income Tax Act. Section 44 Of GVAT Act Akin To Garnishee Order; Requires Debtor-Creditor Relationship: Gujarat High Court Case Title: Shri Shakti Cotton Pvt. Ltd. Versus The Commercial Tax Officer "It can be said that in interpreting a taxing statute, the equitable considerations are entirely out of place. The reasons of morality and fairness can have no application to bring a citizen who is not within the four corners of the taxing statute within its fold so as to make him liable to payment of tax," Justice JB Pardiwala of the Gujarat High Court has opined. Allahabad High Court Registration Under GST ACT Cannot Be Cancelled By Merely Describing The Firm As 'Bogus': Allahabad High Court Case Title: Apparent Marketing Private Limited versus State of U.P. and Others The Allahabad High Court has ruled that registration under GST Act cannot be cancelled by merely describing the firm as 'bogus'. The Single Bench of Justice Saumitra Dayal Singh held that cancellation of GST registration has serious consequences since it takes away the fundamental right of a citizen to engage in business, adding that the revenue authorities have a heavy burden to establish the existence of facts that may allow for cancellation of registration under the GST Act. ITAT AO's Jurisdiction Doesn't Change On Mere Surrendering Section 12A Registration: ITAT Upholds Income Tax Reassessment Order Against Young Indian Case Title: Young Indian Vs. ACIT(E) The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Amit Shukla (Judicial Member) and Anil Chaturvedi (Accountant Member) has upheld the income tax reassessment order against Young Indian on the grounds that the jurisdiction of AO does not change on mere surrendering registration under Section 12A of the Income Tax Act. Limitation For Revisionary Jurisdiction Runs From The Date Of Assessment Order And Not Reassessment, If Subject Matter Was Not Covered In Reassessment: ITAT Kolkata Case Title: Alkem Laboratories Limited versus Principal Commissioner of Income Tax The Kolkata Bench of ITAT, consisting of members Rajpal Yadav (Vice President) and Rajesh Kumar (Accountant Member), has ruled that the period of limitation for exercising revisionary jurisdiction under Section 263 of Income Tax Act, 1961 runs from the date of assessment order and not the reassessment order, if the revisionary jurisdiction is sought to be exercised with respect to an issue which was not the subject matter of reassessment proceedings. No Liability To Deduct TDS On Payments Made By Lenskart To Facebook Ireland: ITAT Delhi Case Title: Addl. Commissioner of Income Tax, New Delhi versus M/s Lenskart Solution (P) Ltd. The Delhi Bench of ITAT, consisting of members N. K. Choudhry (Judicial Member) and Anil Chaturvedi (Accountant Member), has upheld the order passed by the CIT (A) deleting additions of over Rupees 67 Lakhs made to Lenskart's taxable income for non-deduction of TDS on marketing expenses paid by it to Facebook Ireland Inc. Non-Disclosure Of A Foreign Asset In ITR Is Not A Valid Reason For Imposition Of Penalty If source Of Investment Is Well Explained: Mumbai ITAT ...

Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022

Mariya Paliwala

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