Delhi High Court

Budgetary Support Under GST Regime Can’t Be Denied To Eligible Unit: Delhi High Court

Case Title: M/s Special Cables Pvt Ltd versus Central Board of Indirect Taxes and Customs & Ors.

Citation: 2023 LiveLaw (Del) 120

The Delhi High Court has directed the revenue authorities to grant budgetary support to a manufacturing unit under the “Scheme of Budgetary Support under Goods and Services Tax (GST) Regime”, available to ‘eligible units’ located in specified States. The Court took note that the petitioner was eligible for exemption from Central Excise Duty prior to 01.07.2017, i.e., before the introduction of the GST regime in India, and thus, in terms of the scheme, it was entitled to avail budgetary support.

Notification Under S. 5 of FTDR Act Can’t Be Applied Retrospectively To Refuse Advance Authorization To Importer: Delhi High Court

Case Title: Jindal Exports and Imports Pvt Ltd vs. Director General of Foreign Trade & Ors.

The Delhi High Court has ruled that a notification issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act), which empowers the Central Government to formulate and announce the foreign trade policy, cannot be applied retrospectively by the Central Government.

Bombay High Court

GST Act Can’t Be Interpreted To Deny Right To Carry Trade And Commerce By Citizens: Bombay High Court

Case Title: Rohit Enterprises Versus The Commissioner State GST Bhavan

Citation: 2023 LiveLaw (Bom) 108

The Aurangabad Bench of the Bombay High Court has held that the provisions of the GST enactment cannot be interpreted so as to deny the right to carry on trade and commerce to any citizen or subject.

Constitute GST Tribunal To Reduce Needless Litigations In The Form Of Filing Writ Petitions: Bombay High Court Advises CBIC

Case Title: Rochem India Pvt. Ltd. Versus CBIC

The Bombay High Court has advised the Central Board of Indirect Taxes (CBIC) to construct GST tribunals to reduce needless litigation in the form of filing writ petitions.

Karnataka High Court

No GST Applicable On Supply Of Vouchers: Karnataka High Court

Case Title: M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors.

The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST.

Madras High Court

Madras High Court Dismisses Plea By AR Rahman, GV Prakash and Santhosh Narayan Challenging GST Department’s Order Claiming Service Tax

Case Title: M/s. Amirta International Institute of Hotel Management v. The Principal Commissioner of CGST & Central Excise

Citation: 2023 LiveLaw (Mad) 41

The Madras High Court has recently dismissed the pleas filed by music composers AR Rahman, GV Prakash and Santhosh Narayan challenging the proceedings initiated by the Commissioner of the GST Department levying service tax on transfer of copyright in musical work for the period between 2013 and 2017.

No GST Applicable On Supply Of Vouchers: Karnataka High Court

Case Title: M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors.

The Karnataka High Court has ruled that vouchers do not fall under the category of goods and services and therefore, the issue and supply of vouchers would not attract GST.

The bench of Justices P.S. Dinesh Kumar and T.G. Shivashankare Gowda remarked that vouchers, including Gift Vouchers and Cash Back Vouchers, are mere instruments accepted as consideration for supply of goods or services, which have no inherent value of their own.

Madras High Court

State GST Authority Can’t Prosecute If The Central Authority Has Already Initiated Action: Madras High Court

Case Title: Tvl Metal Trade Incorporation Versus The Special Secretary

Citation: 2023 LiveLaw (Mad) 51

The Madras High Court has held that the State Authority cannot prosecute the petitioner once again as the Central Authority has already initiated action against the petitioner in respect of the very same subject matter.

Gujarat High Court

Sales Tax or VAT Dues Payable Can't Be Claimed As Priority Over Dues Of Secured Creditor: Gujarat High Court

The Gujarat High Court has held that Sales tax or VAT dues payable cannot be claimed as priority over dues of the secured creditor.

The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that the charge in respect of the property in question created for sales tax dues is of no avail and has no efficacy in law.

Calcutta High Court

GST Dept. Empowered To Detain Vehicle And Seize The Goods: Calcutta High Court Upholds Penalty

Case Title: Ashok and Sons (HUF) Vs. Joint Commissioner

The Calcutta High Court has held that the GST department was lawfully permitted to impose a penalty under Section 129 as well as the SGST as the goods were found to be detained in the territory of the state.

The bench of Justice Bibek Chaudhuri has observed that Section 129 of the Central Goods and Services Tax Act, 2017, empowers the statutory authority to detain the vehicle and seize the goods. The goods shall be released only upon payment of a penalty equal to 200% of the tax payable on the goods.

Classification Of Polypropylene Bags Can’t Be Changed Just To Avail Lower Tariff-Rate: Calcutta High Court Upholds AAAR’s Ruling

Case Title: Mega Flex Plastics Ltd. & Anr. Versus The Union of India

The Calcutta High Court, while upholding the ruling of the Orissa Appellate Authority, held that the classification of polypropylene bags cannot be changed just to avail a lower tariff rate.

The single Justice Md. Nizamuddin has observed that the polypropylene bags manufactured by the petitioner are made from plastic granules and cannot be treated as textile articles.

Punjab & Haryana High Court

Penalty For Non Appearance - Not Valid If No Attempt To Evade Tax Is Made Out: Punjab & Haryana High Court

Case Title: M/s. Punjab Wool Syndicate Versus The State of Punjab and another

The Punjab and Haryana High Court has held that non-appearance before the Information Collection Centre (ICC) cannot be made a ground to initiate penalty proceedings if no attempt to evade tax is made.

The division bench of Justice Ritu Bahari and Justice Manisha Batra has observed that the driver had produced the documents at I.C.C. and subsequently, at the time of checking, he showed all the invoices. There was no attempt to evade tax. Hence, the VAT appeal was allowed, and no case for the imposition of a penalty is made out under Section 51(7)(c) of the Punjab VAT Act, 2005.

Fabrication Of Bills Worth Rs.367 Crores, Accused In Custody For 18 Months: Punjab and Haryana High Court Grants Bail

Case Title: Vijay Garg Versus the State of Haryana and another

The Punjab and Haryana High Court granted bail to the person accused of forging bills worth Rs. 367 crores and evading GST payments worth Rs. 26 crores.

Jharkhand High Court

Jharkhand High Court Allows Migration Of The TDS Amount Under GST

Case Title: M/s Subhash Singh Choudhary Versus The State of Jharkhand

The Jharkhand High Court has held that the unadjusted TDS amount has to be treated as an input tax credit amount and is required to be carried forward in the next succeeding months.

The division bench of Acting Chief Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the unadjusted TDS amount would have been otherwise refundable to the petitioners if it were not allowed to be carried forward as excess input tax credit in the statutory format of a quarterly return (Form JVAT 200).

Jharkhand High Court Stays Show-Cause Notices Issued By Two Different Authorities In Respect Of The Same Subject Matter

Case Title: M/s Ambey Mining Pvt. Ltd. Versus Commissioner of State Tax

The Jharkhand High Court has stayed the show-cause notices issued by two different authorities in respect of the same subject matter as being outside its jurisdiction.

Orissa High Court

Mosquito Repellent ‘Good Knight’ Is An Insecticide, 4% VAT Applicable: Orissa High Court

Case Title: State of Odisha Versus M/s. Godrej Sara Lee Ltd.

The Orissa High Court has held that the mosquito repellent "Good Knight" sold by Godrej Sara Lee Ltd. is an insecticide.

Gauhati High Court

Gauhati High Court Directs CIT (TDS) To Refund Income Tax Deducted From Salary Of Scheduled Tribe Officer Expeditiously

Case Title: Chyawan Prakash Meena Versus UOI

The Gauhati High Court has directed the Commissioner of Income Tax (TDS) to expeditiously process the request for a refund of income tax deducted from the salary of the DIG (Ops) of the Border Security Force, who is a member of the scheduled tribe.

CESTAT

No Service Tax Payable On Construction Services Provided To Gujarat State Police Housing Corporation: CESTAT

Case Title: R D Contractor & Company Versus Commissioner of Central Excise & ST, Anand

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not payable on the construction services provided to the Gujarat State Police Housing Corporation for the construction of a residential complex for the police staff.

Road Construction Services Are Excluded From The Taxable Service: CESTAT Quashes Service Tax Demand

Case Title: Apollo Construction Projects Pvt Ltd. Versus C.S.T.-Service Tax – Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the demand for service tax and held that the service provided for road construction is excluded from the taxable service, namely "Commercial or Industrial Construction Service."

When The Test Reports Are On Record, No Need To Go To The Websites And Wikipedia: CESTAT

Case Title: Pradipkumar P. Patel Versus C.C.

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that when the test reports are available on record, there is no need to go to the website or Wikipedia.

No Excise Duty Payable On Manual Segregation Of Scrap: CESTAT

Case Title: The Commissioner, Central Excise & CGST, Alwar Versus M/s R.P. Industries

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not levied on manual segregation of scrap.

CESTAT Allows Service Tax Refund To Developer Of Residential Flats On Cancellation Of Booking

Case Title: M/s Ratnawat Infra Construction Company Versus Commissioner, Central Excise & CGST-Jaipur I

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the service tax refund to the developer of residential flats on cancellation of the booking.

Authorised Dealer Not Liable To Pay Service Tax On Incentives Out Of Dealership Agreement: CESTAT

Case Title: M/s Veer Prabhu Marketing Ltd. Versus Commissioner of Central Excise

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the authorized dealer was not liable to pay service tax on various incentives that it received from Tata as per the dealership agreement.

Deputy Commissioner Not Empowered To Reassess After The Goods Were Cleared For Home Consumption: CESTAT

Case Title: M/s Holy Land Marketing Private Limited Versus Commissioner of Customs

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Deputy Commissioner had the power to reassess the goods under Section 17(5) of the Customs Act, 1962, after the goods had been cleared for home consumption.

Service Tax Refund Can’t Be Denied On Input Services Wholly Consumed Within SEZ: CESTAT

Case Title: Vishay Semiconductor India Pvt. Ltd. Versus Commissioner of CGST & Central Excise

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax refunds cannot be denied on input services that are wholly consumed within the SEZ.

Haldiram Not Liable To Pay Service Tax On Take-Away Of Food Items: CESTAT

Case Title: Haldiram Marketing Pvt. Ltd. Versus Commissioner, Central Goods and Service Tax, GST Delhi East Commissionerate

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be levied on the activity of takeaway food items.

CESTAT Allows Cenvat Credit To Delhi Metro Rail Corporation On Consulting Engineer’s Services

Case Title: Delhi Metro Rail Corporation Ltd. versus Principal Commissioner, Service Tax, Delhi-I

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted Delhi Metro Rail Corporation a cenvat credit for consulting engineer services.

No Excise Duty Payable On Empty Barrels Used Only For Packing Material: CESTAT

Case Title: M/s Cairn India Limited Versus Assistant Commissioner

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no excise duty is payable on empty barrels used only for packing material.

Stadium Provided By Tamil Nadu Cricket Association For IPL Matches, Not Taxable As ‘Infrastructural Support Service’ To BCCI: CESTAT

Case Title: M/s. Tamil Nadu Cricket Association versus Commissioner of Service Tax

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the Chepauk Stadium provided by the Tamil Nadu Cricket Association for conduct of the Indian Premier League (IPL) matches, does not attract service tax. The Tribunal dismissed the Revenue Department’s contention that the same was in the nature of infrastructural support service provided to the Board of Control for Cricket in India (BCCI), which fell within the definition of ‘Support Services of Business or Commerce’ under Section 65(104c) of the Finance Act, 1994.

AAAR

Permit Issued By Forest Dept. For Coal-Transit Taxable As "Public-Administrative-Services": AAAR

Appellant’s Name: Singareni Collieries Company Limited

The Telangana Appellate Authority of Advance Ruling (AAAR) has ruled that the permit issued by the forest department for coal transit is taxable as public administrative services.

AAR

Works Contract Services Of Construction Of Railway Under Bridge Exigible To 18% GST: Karnataka AAR

Applicant’s Name: S K Swamy and Company

The Karnataka Authority of Advance Ruling (AAR) has ruled that Indian Railways' contract services for the construction of the railway under the bridge are subject to 18% GST.

GST ITC Available On Trading Of Meat Products, Packed Cold Cuts Spices, Masala Powder: Karnataka AAR

Applicant’s Name: Meat Mart Unit of the New Bangalore Ham Shop

The Karnataka Authority for Advance Ruling (AAR) has ruled that the GST Input Tax Credit (ITC) is available for the trading of meat products, packed cold cuts, spices, and masala powder.

The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that input tax credit has to be availed of in terms of sections 16 and 17 of the CGST Act 2017 read with Rule 42 of the CGST Rules 2017.

5% GST Payable On Pre-Packaged And Labelled Jaggery: Karnataka AAR

Applicant’s Name: Prakash and Company

The Karnataka Authority of Advance Ruling (AAR) has held 5% GST on pre-packaged and labeled jaggery.

Setting-Up Naval Communication Network By Subcontractor For BSNL, Attracts 12% GST: Maharashtra AAAR

The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that 12% GST is applicable on setting up the Naval Communication Network as a subcontractor for the Indian Navy on behalf of Bharat Sanchar Nigam Limited (BSNL).

5% GST Applicable On Value Of Part Of Gold Retained For Job Work: West Bengal AAR

Applicant’s Name: Aabhushan Jewellers Pvt. Ltd.

The West Bengal Advance Ruling Authority (AAR) has ruled that the value of 10 grams of gold is included in the value of job work services and is subject to 5% GST.

GST Exempted On Services Of Milling Of Food Grains Into Flour To Govt. Of West Bengal For PDS: AAR

Applicant’s Name: Somnath Flour Mills

The West Bengal Authority of Advance Ruling (AAR) has ruled that services by way of milling food grains into flour (atta) and supplying it to the Food & Supplies Department, Govt. of West Bengal, for distribution under the Public Distribution System, are eligible for GST exemption.

GST Exempted On Bouquet Made With Dry Parts Of Plants, Foliage, And Branches Of Plant: AAR

Applicant’s Name: Shopinshop Franchise Pvt. Ltd.

The West Bengal Authority of the Advance Ruling (AAR) has observed that bouquets made with dry parts of plants, such as foliage, flower buds, grasses, and branches of plants, are exempt from GST.

Selling Of Alcoholic Liquor For Human Consumption Is A “Non-Taxable Supply”: AAR

Applicant’s Name: Karnani FNB Specialities Ltd.

The West Bengal Authority for Advance Ruling (AAR) has observed that the activities of selling alcoholic liquor for human consumption by the applicant would be treated as a "non-taxable supply" and therefore fall under the category of "exempt supply" under the GST Act.

Supply Of Ready To Eat And Ready To Cook Food Products Attracts 18% GST: Karnataka AAR

Applicant’s Name: SATS Food Solutions India Private Limited

The Karnataka Authority for Advance Ruling has ruled that 18% GST is applicable on the supply of ready-to-eat and ready-to-cook food products.

The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that all kinds of food mixes, including instant food mixes, soft drink concentrates, Sharbat, the betel nut product known as "Supari," sterilized or pasteurized millstone, ready-to-eat packaged food, and milk containing edible nuts with sugar or other ingredients, attract 18% GST.

GST Payable On Additional Surcharge Collected From Open Access Consumer Under Electricity Act: AAR

Applicant’s Name: Chamundeshwari Electricity Supply Corporation Limited

The Karnataka Authority for Advance Ruling (AAR) has held that the additional surcharge collected from open-access consumers as per Section 42 of the Electricity Act, 2003, is taxable under the GST Act.

The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that Chamundeshwari Electricity Supply Corporation Limited cannot be considered either a "governmental authority" or a "local authority."

Direct Taxes

Supreme Court

Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO

Case Title: PCIT Versus Servant of People Society

The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity.

S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment

Case Title : PR. COMMISSIONER OF INCOME TAX CENTRAL v. ABHISAR BUILDWELL P. LTD

The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party records available can be relied on to assess total income, or whether the assessment has to confined only to the incriminating material seized during the search. The Court also discussed the issue whether there is no incriminating material seized during the search, then those assessments be reopened and reassessed under Section 153A.

Delhi High Court

Delhi High Court Stays Reassessment Order Based On Internal Audit Objection

Case Title: Kum Kum Kohli Versus ACIT

The Delhi High Court has stayed the reassessment order based on an internal audit objection.

The division bench of Justice Rajiv Shadher and Justice Tara Vitasta Ganju has observed that the expression "any audit objection" was introduced only by the Finance Act, 2022, although with effect from April 1, 2012. Prior to the amendment, the expression obtained in Explanation 1(ii) appended to Section 148 referred to the "Comptroller and Auditor General of India."

Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court

Case Title: Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. Versus ACIT

Citation: 2023 LiveLaw (Del) 125

The Delhi High Court has quashed the reassessment and held that the department cannot go behind the Tax Residency Certificate (TRC) issued by the other tax jurisdiction.

The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the reason given for reopening the assessment, namely, to verify the nature and genuineness of the transactions of the assessee in the assessment year, was untenable in law as the return of income had been filed by the assessee within time with full particulars. The notice has been issued on borrowed satisfaction, which is impermissible in law.

Bombay High Court

Availability Of Interest-Free Surplus Fund To Make Investment: Bombay High Court Deletes Addition On Interest Expenditure

Case Title: Pr. Commissioner of Income-Tax Versus Godrej & Boyce Mfg. Co. Ltd.

The Bombay High Court has upheld the CIT’s order in deleting the addition made on account of interest expenditure as the assessee, Godrej & Boyce, had sufficient interest-free surplus funds to make the investment.

No Reason For AO To Believe Income Chargeable To Tax Escaped Assessment: Bombay High Court

Case Title: Late Bharat Jayantilal Patel Versus Deputy Commissioner of Income Tax

The Bombay High Court has held that the development agreement permitted construction on the land only as a licensee, which did not have the effect of transmitting possession in favor of the licensee as per Section 53A of the Transfer of Property Act.

The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that there was neither any tangible material nor any reason for the assessing officer to believe that "any income chargeable to tax had escaped assessment,". The action of the assessing officer, therefore, would be without jurisdiction.

Absence Of Material: Bombay High Court Quashes Reassessment Proceedings

Case Title: Konark Life Spaces Versus Assistant Commissioner of Income -Tax

The Bombay High Court has quashed the reassessment proceedings as the issue of "large loans and advances" was not only raised during the scrutiny assessment but also responded to by the assessee.

The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that between the date of the order of assessment, which is sought to be reopened, and the date of the formation of the opinion, nothing new happened. There is neither new information on hand nor reference made to any new material on record.

CBDT Circular Disallowing Expenses Incurred On Granting Freebies To Doctors, Not Applicable To A/Y 2008-09: Bombay High Court

Case Title: Abbott India Ltd versus Assistant Commissioner of Income Tax & Ors.

The Bombay High Court has ruled that the CBDT Circular, dated 01.08.2012, as per which the expenses incurred in granting freebies to medical practitioners is inadmissible under Section 37 of the Income Tax Act, 1961, since it is prohibited by law, would not be applicable to the assessment year 2008-09.

Active PAN In Name Of Amalgamating Company, Would Not Justify Reassessment Proceedings Against It: Bombay High Court

Case Title: CLSA India Private Limited versus Deputy Commissioner of Income Tax & Ors.

The Bombay High Court has reiterated that once the revenue department is aware about the amalgamation and had knowledge regarding the non-existence of the amalgamating entity, an assessment order passed against such amalgamating entity would be void and not merely a procedural defect.

Assessment Can’t Be Reopened Based On Another Director’s Disclosure Of Income Differently Received: Bombay High Court

Case Title: Deepak Marda Versus The Income Tax Officer

The Bombay High Court has held that the fact that a different director of the same company disclosed the income received in a different way cannot be used as justification to reopen the assessment.

Karnataka High Court

Payroll Services By IBM Philippines Not FTS, TDS Not Liable To Be Deducted: Karnataka High Court

Case Title: Director of Income Tax Versus IBM India

Citation: 2023 LiveLaw (Kar) 65

The Karnataka High Court, while dismissing the appeal of the department, held that payroll services by IBM Philippines are not fees for technical services (FTS), and the TDS is not liable to be deducted.

The division bench of Justice P.S. Dinesh Kumar and Justice T.G. Shivashankare Gowda has observed that the work has been outsourced to IBM Philippines. IBM Philippines was carrying out the work described in the agreement between IBM India and P&G India. Hence, IBM Philippines was not rendering any technical service, and therefore, the income in the hands of IBM Philippines is a business income.

Gujarat High Court

Practice Of Not Responding To Request Of Adjournment, To Take Matter Up At Anytime, When AO Deems Fit Is Not Endorsable: Gujarat High Court

Case Title: Shree Siddhi Foods Versus ACIT

The Gujarat High Court has held that the practice of not responding to the request for adjournment and thereafter taking the matter up at any time when the Assessing Officer deems it appropriate was not endorsable.

Orissa High Court

Appearance Of AR Not Enough For Presuming Service On Assessee Under S. 292BB Of ITA: Orissa High Court

Case Title: PCIT (Central) versus Narayan Kumar Khaitan

The Orissa High Court has deprecated the Income Tax Authority who, despite being informed that the assessee was in judicial custody, failed to serve a notice upon him through the Superintendent of the concerned jail, in the proceedings initiated against the assessee under Section 263 of the Income Tax Act, 1961.

Orissa High Court Allows Deduction To The Co-operative Society Involved In The Business Of Banking

Case Title: Cuttack Central Co-operative Bank Ltd. Versus Asst. Commissioner of Income Tax

The Orissa High Court has granted the deduction to the Co-operative Society engaged in the banking business.

The division bench of Chief Justice Dr. S. Muralidhar and Justice M. S. Raman has observed that the tribunal was justified in making further classification while interpreting Section 80P(4) of the Income Tax Act by treating it to be different from the primary agriculture rural development bank/co-operative societies.

Invalid Assumption Of Jurisdiction: Orissa High Court Quashes Reassessment Notices Against Vedanta

Case Title: Vedanta Resources Ltd. Versus ACIT

The Orissa High Court has quashed the reassessment notice issued against Vedanta Resources Ltd. (VRL) on the grounds of an invalid assumption of jurisdiction.

The division bench of Chief Justice Dr. S. Muralidhar and Justice M.S. Raman observed that under Section 127(2)(a), no transfer of jurisdiction can take place without affording the Assessee a reasonable opportunity of being heard in the matter.

Allahabad High Court

Reassessment Proceedings For AY 2013-14, 2014-15 Initiated After 1 April 2021 Have To Be Closed Irrespective Of Income Escaping Assessment: Allahabad High Court

Case Title: Rajeev Bansal Versus Union Of India

The Allahabad High Court ruled that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) cannot be used to conduct the reassessment proceedings beyond March 30, 2021. The time limit outlined in Section 149(1)(b) (as amended beginning April 1, 2021) cannot be extended by the department after March 30, 2020.

Dealer Can’t Undervalue Goods To Escape Tax, Under The Garb of E-Way Bill Isn’t Required For Goods Below Rs. 50,000: Allahabad High Court

Case Title: M/s Radha Fragrance versus Union of India & Ors.

The Allahabad High Court has ruled that under the garb of the protection given under Rule 138 of CGST Rules, 2017, dispensing the requirement of E-Way bill for movement of goods valuing below Rs.50,000, a dealer who is a manufacturer, cannot be allowed to send his goods to different consignees by undervaluing the same, and without the Taxing Authorities proceeding to take action against him under Section 129 of the CGST Act.

Taxing Authorities Can't Stop Assessee From Claiming Statutory Right: Allahabad High Court

Case Title: M/S Yash Kothari Public Charitable Trust Versus State Of U.P. And 2 Others

Case Citation: 2023 LiveLaw (AB) 64

The Allahabad High Court has held that the taxing authorities cannot, in the garb of technicality, stop any assessee from claiming his statutory right, as provided under the Income Tax Act.

The bench of Justice Rohit Ranjan Agarwal has observed that, due to the mistake of the department or a technical glitch in the software, when an appeal of an assessee is not reflected on the portal, the department cannot deny the appeal filed offline on technical grounds.

Punjab and Haryana High Court

S. 124 of Finance Act, 2019 Not Violative of Article 14: Punjab & Haryana High Court

Case Title: M/s Schlumberger Asia Services Ltd versus Union of India & Anr.

The Punjab and Haryana High Court has upheld the constitutional validity of Sections 124(2) and 130(2) of the Finance Act, 2019, which deal with the ‘Vivad se Vishwas Scheme’ (VSV Scheme), dismissing the contention that the said provisions were violative of Article 14 of the Constitution of India since they deny refund to the assessee/ declarant even if the amount already deposited by it exceeds the amount payable under the Scheme.

Renting Dharamshala On Nominal Rent For Marriages Not Commercial, No Property Tax: Punjab and Haryana High Court

Case Title: Daulat Ram Khan Versus State of Haryana

The Punjab and Haryana High Court has held that if Dharamshala is provided at a nominal rent for conducting marriages, it will not amount to a commercial purpose.

Madhya Pradesh High Court

No Incriminating Material Found During Search: Madhya Pradesh High Court Dismisses Department’s Appeal

Case Title: PCIT Versus M/s Great Galleon Ventures Ltd.

The Madhya Pradesh High Court's Indore Bench dismissed the department's appeal, ruling that no incriminating documents were discovered during the search.

ITAT

Credit For TCS Available To Assessee In Whose Hand Income Is Assessed To Tax: ITAT

Case Title: M/s Hotel Ashok Garden versus ITO

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has reiterated that credit for Tax Collected at Source (TCS) should be given to the assessee who is finally and lawfully assessed to tax in respect of the income on which TCS has been collected, irrespective of the person in whose name the TCS certificate has been issued.

Unmarried Daughter’s Jewllery And Mother’s Jewellery Can Be Kept In Family Home: ITAT Deletes Addition

Case Title: Shakun Devi Versus Joint Commissioner of Income Tax

The Allahabad Income Tax Appellate Tribunal (ITAT) has deleted the addition as the jewellery belonging to unmarried daughters will be kept along with the assessee’s jewellery in a family home where they are living together.

Section 14A Disallowance Not Warranted If No Exempt Income Is Earned: ITAT

Case Title: Indian Farmers Fertiliser Versus DCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the disallowance under Section 14A of the Income Tax Act is not warranted if no exempt income is earned.

The two-member bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that Section 14A envisages that there should be actual receipt of income, and hence Section 14A of the Act will not apply where no exempt income is received or receivable during the relevant previous year.

Expenses Incurred During Regular Course Of Business Cannot Be Treated As Capital Expenses: ITAT

Case Title: ACIT Versus Drishti Soft Solutions Pvt. Ltd.

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that expenses incurred during the regular course of business cannot be treated as capital expenses.

The two-member bench of Yogesh Kumar US (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that the payment was made towards the professional fee, which includes monthly retainer fees for the professional services.

IBC Has Overriding Effect On All The Acts Including Income Tax Act: ITAT

Case Title: ACIT Versus ABW Infrastructure Ltd.

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Insolvency and Bankruptcy Code (IBC) has an overriding effect on all acts, including the Income Tax Act, as per Section 178(6) of the Income Tax Act, effective from November 1, 2016.

Misplacing FD Is Not The Ground For Deleting Addition Of Interest: ITAT

Case Title: Smiths Detection Asia Pacific Pte Ltd Versus The Dy. C.I.T

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of interest on fixed deposits (FDs).

Jet Airways Fails To Comply With The Notices In spite Of Several Opportunities: ITAT Imposes Cost Of Rs. 25,000 Payable To PM Relief Fund

Case Title: M/s. Jet Airways (India) Limited Versus DCIT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that Jet Airways has failed to comply with the notices issued by the lower authorities in spite of several opportunities. Jet Airways was directed to pay a cost of Rs. 25,000 for being delinquent before the lower authorities which was to be paid to the Prime Minister’s Relief Fund within 30 days.

ITAT Deletes Addition On Cash Deposits During Demonetisation

Case Title: Mrs. Usha Narayan Chaware Versus ITO

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of cash deposits during demonetization.