Tax Cases Monthly Round Up: December 2023

Delhi High Court High-End KPO Services Provider Can't Be Compared With ITeS, Which Is BPO Services Provider: Delhi High Court Case Title: PCIT Versus Future First Info. Services Pvt. Ltd. Citation: 2023 LiveLaw (Del) 1301 The Delhi High Court has held that the high-end knowledge process outsourcing (KPO) services provider cannot be compared with the information technology-enabled services (ITeS), which fall under the category of BPO services provider. No Upward Adjustment Required To Be Carried Out For Amount Received By Sony India From Its AE: Delhi High Court Case Title: PCIT Versus M/s Sony India Pvt. Ltd Citation: 2023 LiveLaw (Del) 1304 The Delhi High Court has held that no upward adjustment concerning advertising, marketing, and promotion expenses (AMP) ought to have been made as the comparables chosen by the Transfer Pricing Officer (TPO) had a net margin lower than that registered by the assessee, Sony India. S. 69A Of Income Tax Act Can Only Be Invoked Where Books Of Account Are Maintained: Delhi High Court Case Title: CIT Versus Hersh Washesher Chadha Citation: 2023 LiveLaw (Del) 1305 The Delhi High Court has held that Section 69A of the Income Tax Act can only be invoked where books of account are maintained. Decision To Cancel GST Registration With Retrospective Effect Must Be Based On Some Objective Criteria: Delhi High Court Case Title: Pratima Tyagi Versus Commissioner Of GST Citation: 2023 LiveLaw (Del) 1310 The Delhi High Court has held that the decision to cancel the GST registration with retrospective effect must be based on some objective criteria. Power To Extend Time For Submitting Audit Reports U/S 142(2c) Belongs Exclusively To AO And Can't Be Exercised By CIT: Delhi High Court Case Title: PCIT Versus B.L. Kashyap And Sons Ltd. Citation: 2023 LiveLaw (Del) 1326 The Delhi High Court has held that the power to extend the time for submitting audit reports under Section 142(2c) belongs exclusively to the AO and cannot be exercised by CIT. Limitation Period To Pass Fresh Assessment Order Expired: Delhi High Court Accepts Returned Income For 12 Years Case Title: Indian Renewable Energy Development Agency Ltd Versus PCIT Citation: 2023 LiveLaw (Del) 1327 The Delhi High Court has accepted the returned income for 12 years as the limitation period to pass a fresh assessment order has expired. Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal (ITAT). AO Lacked Tangible Material To Form A Belief That Income, Chargeable To Tax Had Escaped Assessment: Delhi High Court Quashes Reassessment Notice Case Title: Saraswati Petrochem Pvt. Ltd. Versus Income Tax Officer The Delhi High Court has held that AO did not have the tangible material on record that could have persuaded him to form the belief that income, otherwise chargeable to tax, had escaped assessment. Employee Can't Be Penalised For Non-Deposit Of TDS By Employer: Delhi High Court Case Title: Shri Chintan Bindra Versus DCIT The Delhi High Court has held that the employer of the petitioner or assessee, having failed to perform his duty to deposit the deducted tax with the department, cannot be penalized. It would always be open for revenue to proceed against the employer of the petitioner for recovery of the deducted tax. No Incriminating Material Was Found During Search: Delhi High Court Quashes S. 153A Proceedings Case Title: PCIT Versus Oxygen Business Park Pvt. Ltd. The Delhi High Court has held that the assessment for the assessment year 2011–12 was finalized on January 20, 2012, and no notice under Section 143(2) of the Income Tax Act was issued. As such, no assessment was pending on the date of the search action, i.e., October 29, 2013. SCN Lacked Time Or Date For Personal Hearing: Delhi High Court Directs Restoration Of GST Registration Case Title: ATT SYS India Pvt Ltd Estex Tele Private Limited Consortium Versus The Commissioner Goods And Services Tax Delhi The Delhi High Court has directed the restoration of GST registration as no opportunity for a hearing was accorded to the petitioner or assessee. ITC Reversal During Late Night Search Involuntarily: Delhi High Court Directs Dept. To Reverse ITC In Assessee's ECL Case Title: Santosh Kumar Gupta Prop. Mahan Polymers Versus Commissioner, Delhi Goods And Services Tax Act & Ors. The Delhi High Court has directed the department to reverse the input tax credit (ITC) amounting to Rs. 22,14,226 in the petitioner's electronic credit ledger (ECL). Assessee Coerced ...

Tax Cases Monthly Round Up: December 2023

Mariya Paliwala

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