Tax Cases Weekly Round-Up: 13 August To 19 August, 2023

Supreme Court Income Tax Settlement Commission's Purpose Is To Give Assessee Chance To Disclose Undisclosed Income To Seek Immunity : Supreme Court Case Title: SHREE NILKANTH DEVELOPERS v. PRINCIPAL COMMISSIONER OF INCOME TAX Citation : 2023 LiveLaw (SC) 648 A Division bench of the Supreme Court, while hearing an appeal, discussed the objective and purpose behind setting up a Settlement Commission under the Income Tax Act 1961. Excise Duty Exemption | To Determine If A Product Falls Under Description "Intravenous Fluids”, Its Composition & Not Its Use Matters : Supreme Court Case Title: Commissioner of Central Excise vs M/s Denis Chem Lab Ltd. & Anr. Citation : 2023 LiveLaw (SC) 650 The Supreme Court has ruled that in order to determine whether a product would fall under the description of “Intravenous Fluids” so as to be eligible for exemption from excise duty, it is the composition of the product in question which is relevant and not whether the product is used for treatment of any particular disease. Interest Income Earned On Deposits By Clubs In Banks Which Are Corporate Members Taxable; Principle Of Mutuality Not Applicable: Supreme Court Case Title: SECUNDRABAD CLUB ETC. vs C.I.T.-V ETC. Citation : 2023 LiveLaw (SC) 660 The Supreme Court has ruled that the interest income earned on fixed deposits (FDs) made by Clubs in the banks which are members of those Clubs has to be treated like any other income from other sources within the meaning of Section 2(24) of Income Tax Act, 1961. The bench of Justices B.V. Nagarathna and Prashant Kumar Mishra said that the principle of mutuality would not apply to interest income earned on FDs made by Clubs in the banks irrespective of whether the banks are corporate members of the Club or not. Delhi High Court Delhi High Court Stays The Income Tax Reassessment Proceedings Initiated Against Oxfam India Case Title: Oxfam India Versus Deputy Commissioner Of Income Tax The Delhi High Court has stayed the income tax reassessment proceedings initiated against Oxfam India. Delhi High Court Directs Adjudicating Authority To Process Blackberry’s Claim Of Interest Under Section 11BB Of The Excise Act Case Title: Blackberry India Pvt Ltd. Versus The Assistant Commissioner, Central Excise And CGST Division The Delhi High Court has directed the adjudicating authority to process Blackberry’s claim of interest under Section 11BB of the Excise Act. The Officer Concerned Not Authorized To Administer Oath, No Evidentiary Value: Delhi High Court Case Title: PCIT Versus ARN Infrastructure Ltd. The Delhi High Court while upholding the ITAT’s ruling held that the addition of Rs. 10 crore was made purely on the basis of the statement made by directors without corroborative evidence. Kerala High Court Classification Of Dr.Reddy’s Senquel-AD As A Mouthwash Or A Medicament: Kerala High Court Remands The Matter Back Case Title: Dr. Reddys Laboratories Ltd. Versus The Commissioner Of Commercial Taxes Citation: 2023 LiveLaw (Ker) 407 The Kerala High Court has remitted the issue of the classification of Dr.Reddy’s Senquel-AD as a mouthwash or a medicament for fresh consideration. Jharkhand High Court Jharkhand High Court Quashes Arbitrary Forfeiture Of Earnest Money By CCL, Orders Release Case Title: Atibir Industries Company Limited vs. Central Coalfields Limited and Others Case Citation: 2023 LiveLaw (Jha) 25 The Jharkhand High Court has taken a strong stance against the arbitrary cancellation of a contract and the subsequent forfeiture of earnest money by Central Coalfields Limited, a public sector coal supplier, and declared the forfeiture of earnest money by a public sector coal supplier as "indefensible" and "arbitrary." Allahabad High Court Allahabad High Court Imposes 10K Cost On Income Tax Authority For Violation Of Principles Of Natural Justice Case Title: M/S M.L. Chains v. The Pr. Commissioner Of Income Tax - 1 and another 2023 LiveLaw (AB) 263 [Writ Tax No. - 638 of 2022] Case Citation: 2023 LiveLaw (AB) 263 The Allahabad High Court on Wednesday imposed a cost of Rs. 10,000 to be paid by an erring officer of the Income Tax Department for violating the principles of natural justice while cancelling the earlier Assessment Order and initiating fresh proceedings under Section 263 of the Income Tax Act, 1961. E-Way Bill Expired Due To Vehicle Break Down: Allahabad High Court Quashes Seizure Memo Case Title: M/S Rateria Laminators Pvt. Ltd. vs. Additional Commissioner The Allahabad High Court has set aside an order under Section 129(3) of the UPGST Act 2017 by which a penalty was imposed solely on the ground that no evidence had been adduced regarding the illness of the driver and the breakdown of the vehicle. Punjab And Haryana High Court Reusing...

Tax Cases Weekly Round-Up: 13 August To 19 August, 2023

Mariya Paliwala

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