Tax Cases Weekly Round-Up: 20 August To 26 August, 2023

Supreme CourtSupreme Court Recalls Judgment Holding That No Indirect Taxes Can Be Levied On Duty-Free Shops At AirportsCase Title: Commissioner of CGST and Central Excise Mumbai East vs Flemingo Travel Retail LtdCitation: 2023 LiveLaw (SC) 673The Supreme Court has recalled its Division Bench judgment dated 10 April 2023, where the top court had ruled that Duty-Free Shops situated in the arrival or departure terminals of Airports are outside the customs frontiers of India and therefore, they cannot be saddled with any indirect taxes like the Service Tax.Delhi High CourtIncome Tax Dept. Not Under The Obligation To Grant Additional Tax Concession As Per BIFR’s Order: Delhi High CourtCase Title: DGIT Versus The Indian Plywood Mfg. Co.The Delhi High Court has held that the income tax department is not under the obligation to grant additional tax concessions as per the order passed by the Board for Industrial and Financial Reconstruction (BIFR).Pre-Deposit Made Before OHA Can’t Be Adjusted Against Any Other Tax Dues: Delhi High Court Allows Refund To Flipkart IndiaCase Title: Flipkart India Private Limited Versus Value Added Tax OfficerThe Delhi High Court, while allowing the refund to Flipkart India, held that a pre-deposit made before the Objection Hearing Authority (OHA) cannot be adjusted against any other tax dues.In Hi-Tech “Click Of Mouse” Age Some Income Tax Officials Are Yet To Come Out Of Their Love For “Snail Pace” Style Of Working: Delhi High CourtCase Title: PCIT Versus M/S National Fertilizers Ltd.The Delhi High Court has rejected the appeal of the income tax department and refused to condone the delay of 498 days.Bombay High CourtBombay High Court Quashes Reopening Of Assessment After 4 Years In The Absence Of Concealment By AssesseeCase Title: Astec LifeSciences Ltd. Versus The Assistant Commissioner of Income TaxThe Bombay High Court has quashed the reopening of the assessment after 4 years in the absence of concealment by the assessee.Gujarat High CourtGujarat High Court Quashes Faceless Assessment Order For Lack Of Proper Opportunity Of HearingCase Title: Shree Ganesh Intermediary Private Limited Versus National Faceless Assessment Centre, DelhiCitation: 2023 Livelaw (Guj) 137The Gujarat High Court has quashed the faceless assessment on the grounds that there is only a day for the assessee to respond so as to save the limitation period.Gujarat High Court Quashes Order Rejecting Refund Claim By Vodafone-IdeaCase Title: M/S Vodafone Mobile Services Limited Versus Union Of IndiaCase Citation: 2023 Livelaw (Guj) 138The Gujarat High Court has ruled in favor of M/S Vodafone Mobile Services Limited, a prominent telecommunications provider, in a case challenging the rejection of their claim for a tax refund under the Goods and Services Tax (GST) regime.Himachal Pradesh High CourtHimachal Pradesh High Court Stays Service Tax-Cum-Divisional Commissioner’s Order As GSTAT Not ConstitutedCase Title: M/s Vardhman Ispat Udyog Versus State of Himachal Pradesh and Ors.The Himachal Pradesh High Court has stayed the service tax-cum-divisional commissioner’s order as GSTAT was not constituted.Jharkhand High CourtLabor Cess Inapplicable To Material Supply And Consultancy Charges: Jharkhand High CourtCase Title: The State of Jharkhand and Others vs. M/s Flowmore LimitedCase Citation: 2023 LiveLaw (Jha) 28The Jharkhand High Court has ruled that Labor Cess should not be imposed on the supply of materials and consultancy charges for a contract that is different from civil works contracts. This decision came after the State appealed against a ruling made by a Single Judge Bench on June 13, 2022. The Single Judge Bench had stated that Labor Cess is not applicable to the supply of materials and consultancy charges for a contract that is distinct from civil works contracts.ITATITAT Allows Rs.1,094.14 Cr Loss To Standard Chartered Bank Arising From Securities Scam As Business LossCase Title: Deputy Director of Income Tax Versus Standard Chartered BankThe Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the loss of Rs. 1,094.14 crore to Standard Chartered Bank arising from a securities scam as a business loss.Interest Certificate Not Necessary For Claiming Section 24(B) Deduction: ITATCase Title: Manjri Stud Farm Pvt. Ltd. Versus ACTIThe Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the interest certificate is not necessary for claiming section 24(b) deduction.ITAT Deletes TP-Adjustment On Payment Of Export Commission And Model Fee Against Honda SubsidyCase Title: Honda Motorcycle and Scooter India Pvt. Ltd. Versus ACITThe Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the adjustment on account of Arm's Length Pricing (ALP) of the export commission payment against the Honda subsidy.HSBC Not Liable To Deduct TDS On Nostro Account Maintenance Charges: ITATCase Title: ITO Versus HSBCThe Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the...

Tax Cases Weekly Round-Up: 20 August To 26 August, 2023

Mariya Paliwala

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