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

Mariya Paliwala
11 April 2022 5:26 AM GMT
Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022
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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...

High Courts

Delhi 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

Case Title: Additional Commissioner of Income Tax Central Range 1, Mumbai Versus Leena Gandhi Tiwari

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) headed by Pramod Kumar (Vice President) and Rahul Chaudhary (J​​udicial Member) has ruled that mere non-disclosure of a foreign asset in the income tax return, by itself, is not a valid reason for a penalty under the Black Money Act, if the source of investment is well explained by the assessee.

Source Of Demonetized Notes Collected By Co-Operative Society Explained, ITAT Quashes Addition Made Under Section 68 Of Income Tax Act

Case Title: Sri Bhageeratha Pattina Sahakara versus ITO, Davanagere

The Bangalore Bench of ITAT has ruled that there is no rationale in the action of the Assessing Officer of making additions to assessee's income under Section 68 of the Income Tax Act on the ground that the assessee has violated RBI notifications.

CESTAT

Service Tax Not Leviable On IPL Promotion Activities By Anil Kumble: CESTAT

Case Title: Anil Kumble Versus Commissioner of Central Excise, Customs & Service Tax, Bangalore-I Commissionerate

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P. Dinesha (Judicial Member) and P. Anjani Kumar (Technical Member) has held that the promotional activities undertaken by the former Indian skipper Anil Kumble shall not be treated as "business auxiliary services", so no service tax can be imposed.

AAR

'Ready to Eat' Popcorn Sold In Retail Packages Attracts 18% GST: AAR

Applicant's Name: M/s. Agro Tech Foods Limited

The Telangana Authority of Advance Ruling, consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao, has ruled that 18% GST is payable on 'ready to eat' popcorn sold in retail packages.

GST Payable On Value Of Supply Which Includes Interest For Delayed Payment: AAR

Applicant's Name: M/s. Hyderabad Metropolitan Water Supply and Sewerage Board

The Telangana Authority of Advance Ruling (AAR) bench of members S.V. Kasi Visweswara Rao and B. Raghu Kiranhas ruled that the Goods and Service Tax is payable on the value of supply, which includes interest, late fee, or penalty for delayed payment.

GST Is Payable 'On Fair Trade Premium': Kerala AAR

Applicant's Name: Fair Trade Alliance Kerala

The Kerala Authority of Advance Ruling (AAR) bench of Sreeparvathy S.L. and Abraham Renn S. has ruled that GST is payable on fair trade premium, which forms part of the consideration and value of a taxable supply of goods.


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