Tax Cases Weekly Round-Up: 4 June To 10 June, 2023

Delhi High CourtDelhi High Court Directs Dept. To Reconsider Travelport UK’s Refund AdjustmentCase Title: Travelport International Operations Limited United Kingdom Versus Commissioner Of Income Tax International Taxation 3 N.Delhi & Ors.Citation: 2023 LiveLaw (Del) 506The Delhi High Court has directed the department to reconsider Travelport UK’s refund adjustment on the basis of the contents of the writ petition.Bombay High CourtBombay High Court Upholds The Validity of Provisions Dealing With Place Of Supply Under IGSTCase Title: Dharmendra M. Jani Versus Union of IndiaThe Bombay High Court has upheld the validity of Section 13(8)(b) and Section 8(2), which deal with place of supply under the Integrated Goods and Service Tax Act, 2017 (IGST Act).Karnataka High Court Dept. To Reconsider The Application Under Karasamadhana Scheme: Karnataka High Court Quashes Recovery From The BankerCase Title: M/s. GE T & D India Ltd. Versus State Of KarnatakaThe Karnataka High Court has quashed the recovery from the banker and directed the department to reconsider the application under the Karasamadhana Scheme.Gujarat High CourtGST Payable Only On The Cost of Construction and Not On The Cost Of Land: Gujarat High CourtCase Title: Munjaal Manishbhai Bhatt Versus Union Of IndiaThe Gujarat High Court, while giving major relief to the buyers, has held that GST is payable only on the cost of construction and not on the cost of land.SGST Dept. Can Initiate Proceedings Against The Unit Situated In SEZ: Gujarat High Court Imposes Rs.10K CostCase Title: RHC Global Exports Private Limited Versus Union Of IndiaThe Gujarat High Court has held that the state GST department can initiate proceedings against the unit situated in the Special Economic Zone (SEZ).Rajasthan High Court‘Pizza’ And ‘Sandwiches’ Are ‘Cooked Foods’: Rajasthan High Court Allows Exemption Of Payment Of VAT In Excess Of 5%Case Title: M/s Devyani International Limited Versus The Additional CommissionerThe Jaipur Bench of the Rajasthan High Court has held that the sale of ‘pizza’ and ‘sandwich’ would qualify as the sale of ‘cooked food’ and the sale shall be eligible for the exemption of payment of Value Added Tax (VAT) in excess of 5%.Burden To Prove That A Specific Product Falls Within A Particular Tariff Is Always On The Department: Rajasthan High CourtCase Title: M/s Compuage Infocom Limited Versus The Assistant CommissionerThe Jaipur Bench of the Rajasthan High Court has held that the burden to prove that a specific product falls within a particular tariff is always on the revenue, more so when the revenue is trying to classify products in the residual entry as against the specific entry.Tripura High CourtGST ITC Available On Work Contract Services For The Construction Of Hotel Building: Tripura High CourtCase Title: M/S SR Constructions Vrs. The Union of India & Ors.The Tripura High Court has held that in providing taxable work contract services for the said construction of a hotel building, the assessee is entitled to take an input tax credit on the goods and services being utilized for providing the taxable work contract services.J&K And Ladakh High CourtGST Budgetary Support Scheme Can’t Be Interpreted Liberally: J&K And Ladakh High CourtCase Title: M/s Best Crop Science Industrial Area Versus Union of IndiaCitation: 2023 LiveLaw (152)The Jammu & Kashmir and Ladakh High Courts have held that the GST Budgetary Support Scheme cannot be interpreted liberally.ITATTrust Created For Managing The Statutory Obligations Of Employees Of The Parent Trust: ITAT Grants Section 12AA RegistrationCase Title: ICRW Group Gratuity Trust Versus ICLEI South Asia Group Gratuity TrustThe Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that any trust that has been created for the purpose of managing the statutory obligations of employees of the parent trust would certainly fall within the ambit of advancement of general public utility and, hence, be considered a charitable activity as defined under Section 2(15) of the Income Tax Act.AO Can’t Sit On The Armchair Of Businessman Assessee To Replace His Business Strategy By His Own Whims And Fancies: ITATCase Title: ACIT Versus Ashish BansalThe Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy with his own whims and fancies.Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITATCase Title: ACIT Versus Kamlesh Kumar RathiThe Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income derived from the sale of agricultural land is not a capital asset.Deemed Dividend Cannot Be Taxed In The Hands Of Non-Shareholders: ITATCase Title: DCIT Versus Aaryavart Infrastructure P. Ltd.The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that deemed dividends cannot be taxed in the hands of non-shareholders.Provisions Of Section 44BB Not Applicable In...

Tax Cases Weekly Round-Up: 4 June To 10 June, 2023

Mariya Paliwala

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