Tax Cases Monthly Round Up: September 2023

Direct Tax Supreme Court Material Disclosed To Income Tax Settlement Commission Needn't Be Something Which Wasn't Discovered By Assessing Officer : Supreme Court Case Title: KOTAK MAHINDRA BANK LIMITED vs COMMISSIONER OF INCOME TAX BANGALORE AND ANR Citation : 2023 LiveLaw (SC) 822 The Supreme Court has ruled that Section 245H of the Income Tax Act, 1961, which empowers the Settlement Commission to grant immunity from prosecution and penalty to the assessee if he has co-operated with the Settlement Commission and has made “full and true disclosure of his income”, cannot be saddled with an artificial requirement that the material “disclosed” by the assessee before the Commission must be something apart from what was “discovered” by the Assessing Officer. Delhi High Court Tax Authority Based In Delhi Lacks Jurisdiction On Withholding Tax Liability On Share Purchase Transaction: Delhi High Court Quashes Tax Demand Against Sumitomo Case Title: Sumitomo Mitsui Financial Group Inc. Versus CIT The Delhi High Court has deleted the tax demand against Sumitomo Mitsui Financial Group on the grounds of lack of jurisdiction. Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart Case Title: Flipkart India Private Limited Versus Value Added Tax Officer The Delhi High Court has directed the Value Added Tax (VAT) department to refund Rs. 6.62 crore to Flipkart along with interest. Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. Undisclosed Income Taxed In The Hands Of Flagship Company Can’t Be Again Subjected To Tax In The Hands Of Assessee Companies: Delhi High Court Case Title: PCIT Versus Surya Agrotech Infrastructure Limited The Delhi High Court has held that undisclosed income taxed in the hands of flagship companies cannot be again subjected to tax in the hands of assessee companies. Overlooking Assesssee’s Reply Demonstrates Non-Application Of Mind By The AO: Delhi High Court Case Title: Aphv India Investco. Private Limited Versus ACIT The Delhi High Court has quashed the draft assessment orders, final assessment orders, and consequential demand on the grounds that the assessing officer inadvertently overlooked the email reply of the assessee, in which the assessee disclosed vital facts pertaining to its case. Delhi High Court Directs AWS India To Withhold 8% Payment Of The AWS USA And Deposit It With The Dept. Case Title: Amazon Web Services India Pvt Ltd & Anr. Versus ITO The Delhi High Court has directed that AWS India withhold 8% of payments payable or paid to AWS USA and deposit the same with the income tax department. Brand Names Are Specie Of The Trademark: Delhi High Court Allows Depreciation Case Title: Pr. Commissioner Of Income Tax -1, Chandigarh Versus M/S Kuantum Papers Ltd. The Delhi High Court has allowed the depreciation and held that the expression "trademark" under Section 32(1)(ii) of the Income Tax Act, 1961, and in the appended Explanation 3(b) would clearly include brand names. Bombay High Court Capital Gain Tax, No Retrospective Applicability Of Amendment Restricting Investment In India: Bombay High Court Case Title: Hemant Dinkar Kandlur Versus Commissioner of Income Tax The Bombay High Court has held that the amendment restricting investment in house property in India has retrospective applicability. Assessee Entitled To The Benefit Of VsV Act During The Pendency Of Prosecution Not Involving 'Tax Arrears': Bombay High Court Case Title: Pragati Pre Fab India Pvt. Ltd. Versus PCIT The Bombay High Court has directed the department to decide the application filed by the assessee in conformity with the Direct Tax Vivad Se Vishwas Act 2020. DRP Can Give Directions Only In Pending Assessment Proceedings: Bombay High Court Case Title: Undercarriage and Tractor Parts Pvt. Ltd. Versus DRP The Bombay High Court has held that the Dispute Resolution Panel (DRP) could give directions only in pending assessment proceedings. Bombay High Court Quashes Re-Assessment Order Based On Change Of Opinion Without Any Tangible New Information Case Title: Ashraf Chitalwala Versus DCIT The Bombay High Court has quashed the reassessment order based on a change of opinion without surfacing any tangible new information. Bombay High Court Directs Dept. To Refund TDS Amount Deposited By Assessee Under Protest Case Title: Grasim Industries Ltd. Versus Assistant Commissioner of Income Tax The Bombay High Court, while invoking the doctrine of unjust enrichment, directed the department to refund the TDS amount deposited by the assessee under protest. Bombay High Court Quashes Reassessment Notice Issued After 3 Years Without...

Tax Cases Monthly Round Up: September 2023

Mariya Paliwala

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