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

Supreme Court Supreme Court Allows 2-Months Extra Window For Availing Transitional Credit; Directs GSTN To Open Portal For TRAN-1/TRAN-2 Forms Case Title : Union of India vs. M/s Filco Trade Centre Pvt. Ltd. and Anr. Citation : 2022 LiveLaw (SC) 628 In a relief to several assessees who missed the statutory deadline, the Supreme Court has directed the Goods and Services Tax Network (GSTN) to allow a 2-month additional window from September 1, 2022 to October 31, 2022 for claiming Transitional Credit. TRAN-1 and TRAN-forms were brought to allow assessees to carry forward pre-GST credits to the GST system. As per the GST Rules, such claims had to be filed within 90 days from the date when the GST Act came into force (July 1, 2017). Different High Courts passed directions for extending the timeline, against which the GST department approached the Supreme Court. Delhi High Court Tax payment Software Has To Be Tailor-Made According To The Legal Rights Of The Taxpayers: Delhi High Court Case Title: Celerity Infrastructure Pvt. Ltd. Versus Dy Commissioner Of Income Tax Circle 73-1 Citation: 2022 LiveLaw (Del) 706 The Delhi High Court has held that the tax payment software has to be tailor-made according to the needs, aspirations, and legal rights of the taxpayers and not that the taxpayers' legal rights have to be tailor-made in accordance with the software being used by the Tax Department. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has held that as the petitioners have paid the taxes, they should be given credit for the challans paid on Form 3 under the Direct Tax Vivad se Vishwas Act (DTVSV Act). The order/communication rejecting credit of taxes deposited under the DTVSV on the hyper-technical ground that challans have been deposited under the minor head '200' instead of '400' is unfair, illegal, and contrary to the objective of enacting the DTVSV Act. Inapplicability Of MOOWR Scheme On Solar Power Generating Units:Delhi High Court Stays SCN Seeking To Revoke MOOWR License Case Title: ACME Heergarh Powertech Private Limited vs. Central Board of Indirect Taxes and Customs and Anr. The Delhi High Court bench of Justice Rajiv Shakdher and Justice Vitasta Ganju has stayed the show cause notice issued by the commissioner to revoke the licence under the Manufacturing and Other Operations in Warehouse (no. 2) Regulations, 2019 (MOOWR). Delhi High Court Directs DSIR To Issue Report Quantifying Expenditure On Scientific Research Incurred By The Assessee Case Title: SRF Ltd. versus Union of India Citation: Citation: 2022 LiveLaw (Del) 714 The Delhi High Court has directed the Department of Scientific and Industrial Research (DSIR) to issue reports on the expenditure incurred by the assessee SRF Ltd. for the relevant assessment years in Form 3CL within six weeks. The Division Bench of Justices Manmohan and Manmeet Pritam Singh Arora observed that the DSIR is statutorily bound to issue the Form 3CL within 120 days in accordance with Rule 6(7A) (ba) of the Income Tax Rules, 1962, certifying the expenditure incurred by the assessee on its in-house R&D units. Bombay High Court AO To Workout Pro Rata Deduction In Regard To Eligible Residential Units: Bombay High Court Case Title: The Pr. Commissioner of Income Tax- 4 Versus Kumar Builders Consortium Citation : 2022 LiveLaw (Bom) 265 The Bombay High Court has upheld the order of the ITAT directing the Assessing Officer to work out the pro rata deduction under Section 80IB(10) of the Income Tax Act, 1961. The division bench of Justice Dhiraj Singh Thakur and Justice Abhay Ahuja has observed that Section 80IB(10) nowhere even remotely aims to deny the benefit of deduction in regard to a residential unit, which otherwise confirms the requirement of size at the cost of an ineligible residential unit with a built-up area of more than 1500 sq. ft. Karnataka High Court Karnataka High Court Directs Income Tax Department To Issue A 'Nil Tax Deduction At Source'Certificate To Flipkart For Reimbursements Made To Walmart Case Title: M/S. Flipkart Internet Private Limited versus Deputy Commissioner Of Income Tax (International Taxation) and Ors. The Karnataka High Courthas directed the Income Tax Department to issue a 'Nil Tax Deduction at Source' Certificate to Flipkart under Section 195(2) of the Income Tax Act, 1961, with respect to the reimbursements made by it to Walmart Inc. Madras High Court Dept. To Follow Procedure Set Out In Circular On The Issues Of Mismatch: Madras High Court Quashes VAT Assessment Case Title: M/s.Gharpure Engg. & Construction (Pvt) Ltd. Versus Assistant Commissioner (ST) Citation: 2022 LiveLaw (Mad) 324 The Madras High Court bench of Justice Anitha Sumnath has quashed the VAT assessment and directed the department to follow the procedure set out in the circular regarding the ...

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

Mariya Paliwala

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