Tax Cases Weekly Round-Up: 25 September To 1 October, 2022

Delhi High Court Physical Verification Of Business Premises For GST Registration Without Issuing Notice Is Violation Of Principle Of Natural Justice: Delhi High Court Case Title: Curil Tradex Pvt. Ltd. Versus The Commissioner Citation: 2022 LiveLaw (Del) 905 The Delhi High Court has held that the physical verification of business premises for GST registration without issuing a notice is a violation of the principle of natural justice. The division bench of Justice Rajeev Shakdher and Justice Taravitasta Ganju has noted that the proper officer opted to have the petitioner's business premises inspected, albeit without the presence of its authorised representative. Had notice or intimation been given, the glitch could have been overcome. No PMLA Proceedings After Quashing Of FIR Against Accused: Delhi High Court Set Aside Proceedings Against IHFL And Its Employees Case Title: Indiabulls Housing and Finance Limited v Enforcement Directorate The Delhi High Court has set aside the proceedings under the Prevention of Money Laundering Act, 2002 against Indiabulls Housing and Finance Limited (IHFL) and its employees. The division bench of Justice Anish Dayal and Justice Mukta Gupta relied on the decision of the Supreme Court in the case of Vijay Madanlal Choudhary & Ors Vs. Union of India & Ors. The supreme court held that authorities under the PMLA cannot resort to action against any person for money laundering on the assumption that the property recovered by them must be proceeds of crime and that a scheduled offence has been committed. The scheduled offence must be registered with the jurisdictional police or pending inquiry by way of complaint before the competent forum. In the event that there is already a registered scheduled offence but the person named in the criminal activity relating to a scheduled offence is finally absolved by a court of competent jurisdiction owing to an order of discharge, acquittal or quashing of the criminal case of the scheduled offence, there can be no action for money laundering against not only such a person but also any person claiming through him in relation to the property linked to the stated scheduled offence. Recovery Of Annual Report And Share Certificate From the Assessee's Premises Are Not Incriminating Documents: Delhi High Court Case Title: PCIT Versus Panchmukhi Management Services Pvt. Ltd. The Delhi High Court has held that the recovery of the annual report and the share certificate of the assessee premises cannot be considered to be incriminating documents. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the genuineness of the share capital has been accepted both by CIT (A) and ITAT and that there is no live link between the seized material and the additions made. Issuance Of Notice To Unrelated Mail Address Does Not Constitute Due Despatch: Delhi High Court Case Title: Suman Jeet Agarwal Versus ITO The Delhi High Court has held that the issuance of e-mail-attaching electronic notice to an unrelated e-mail address does not constitute due despatch and, therefore, the notices cannot be said to have been issued on 31st March 2021. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that since an authenticated copy of the notice was placed on the registered account of the assessee on the E-filing portal, as that is how the petitioners learnt about the notices, the notices will be held to have been issued on the date on which the notices were first viewed by the assessees on their e-filing portal. GST Not Payable On Renting Of A Residential Dwelling For Personal Use: Delhi High Court Case Title: Seema Gupta Versus Union Of India The Delhi High Court has held that Goods and Service Tax is not payable on renting a residential dwelling for personal use. The division bench of Justice Manmohan and Justice Manmeet Pritam Singh has observed that the rental of a residential dwelling to a proprietor of a registered proprietorship firm who rents it in his personal capacity for use as his own residence and not for use in the course or furtherance of the business of his proprietorship firm and such renting is on his own account and not that of the proprietorship firm, shall be exempt from tax under Notification No.04/2022-Central Tax (Rate) dated 13.07.2022. Bombay High Court Limitation Period Starts After Affixing Signatures On GST Registration Cancellation Order: Bombay High Court Case Title: Ramani Suchit Malushte Versus Union of India and Ors. The Bombay High Court has held that the limitation period would start only after the affixing of signatures on the GST registration cancellation order. "Only on the date on which the signature of Respondent issuing authority was put on the order dated November 14, 2019, for the purpose of attestation, would time to file an...

Tax Cases Weekly Round-Up: 25 September To 1 October, 2022

Mariya Paliwala

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