Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

Supreme Court Non-Service Of Assessment Orders Inconsequential If Assesee Had Knowledge About Them Otherwise : Supreme Court Case Title: Commercial Tax Officer Versus Neeraja Pipes Pvt. Ltd. Citation: 2023 LiveLaw (SC) 199 Attachment orders issued by the revenue for tax arrears will not be vitiated merely because the assessment orders were not served on the assessee, if the assessee had otherwise got knowledge about the assessment orders, held by the Supreme Court recently. KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court Case Title: State of Karnataka v. M/s. Ecom Gill Coffee Trading Private Limited Citation: 2023 LiveLaw (SC) 187 The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. It noted that in order to establish the same, the dealer should furnish the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and payment particulars etc. Delhi High Court Fee Earned By APMC For Regulating Poultry Market, Exempt Under S. 10(26AAB) of Income Tax Act: Delhi High Court Case Title: PC Commissioner of Income Tax vs. M/s Fish Poultry and Egg Marketing Committee The Delhi High Court has ruled that the income/ fee earned by an Agricultural Produce Marketing Committee (APMC) for regulating the poultry market, would fall within the scope of Section 10(26AAB) of the Income Tax Act, 1961, and thus the same would be exempt from income tax. Applications For Refund Of ITC Cannot Be Denied On Mere Suspicion: Delhi High Court Case Title: M/s Balaji EXIM vs Commissioner, CGST and Ors. Citation: 2023 LiveLaw (Del) 227 The Delhi High Court has held that applications for refund of Input Tax Credit (ITC) cannot be rejected merely on suspicion and without any cogent material. Bombay High Court Bombay High Court Quashes Reassessment Proceedings Against Jetair Case Title: Jetair Pvt Ltd vs. Deputy Commissioner of Income Tax & Ors. The Bombay High Court has quashed the reassessment proceedings against Jetair Pvt Ltd, a group entity of Jet Airways (India) Ltd, and has set aside the notice issued by the revenue department under Section 148 of Income Tax Act, 1961 against Jetair, seeking to reopen assessment for the relevant assessment year. Reassessment Notice Issued By The AO Merely On The Basis Of Change Of Opinion: Bombay High Court Quashes Order Case Title: Lakshdeep Investments & Finance Pvt. Ltd. Versus Assistant Commissioner of Income-tax The Bombay High Court has quashed the reassessment order on the grounds that the only reason for issuing the notice under Section 148 of the Income Tax Act appeared to be that the Assessing Officer had come to a different opinion on the question of valuation than the one adopted by the petitioner. Gujarat High Court Reassessment Notices Issued After Elapse Of Six Years: Gujarat High Court Quashes Assessment Case Title: Keenara Industries Private Limited Versus Income Tax Officer The Gujarat High Court has held that the reassessment notices were issued after the lapse of six years and are therefore time-barred. No Notice Served On Assessee, Assessment Order Passed Without Giving An Opportunity Of Hearing: Gujarat High Court Quashes Order Case Title: Manishkumar Tulsidas Kaneriya Versus Assistant Commissioner Of Income Tax, Central 1, Rajkot The Gujarat High Court, while setting aside the assessment orders, held that the assessment under Section 153 read with Section 144 had been done by the assessing officer without giving the petitioner assessee an opportunity to be heard in terms of and within the meaning of Section 144 of the Act. Orissa High Court Prior Approval Of The Superior Officer Before Passing Of The Assessment/Reassessment Order Pursuant To A Search Operation Is A Mandatory Requirement: Orissa High Court Case Title: ACIT, Circle-1(2), Bhubaneswar Versus M/s. Serajuddin & Co. Kolkata The Orissa High Court has held that the requirement of prior approval of the superior officer before an order of assessment or reassessment is passed pursuant to a search operation is a mandatory requirement of Section 153D of the Income Tax Act. ITAT No Disallowance Shall Be Made With Respect To Chargeable Sum Paid To A Foreign Company Without Deduction Of Tax: ITAT Case Title: Jaiprakash Associates Ltd. v. DCIT International Taxation Circle, Noida The Delhi Bench of Income Tax Appellate Tribunal has held that no disallowance shall be made to the assessee in regards to the chargeable sum paid by the assessee to a foreign company without deduction of tax. Late...

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

Mariya Paliwala

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