Tax Cases Weekly Round-Up: 3 September To 9 September, 2023

Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title: M/S Frequent Logistics Services PVT. LTD. v. Commissioner Goods and Service Tax Department And ORS. Delhi High Court has recently set aside show cause notice proposing to cancel GST registration and the consequential order cancelling the same on the ground that reasons for cancelling registration of assesee were not clearly mentioned in the show cause notice. Delhi High Court Upholds Validity Of Rule 8 of Chewing Tobacco And Unmanufactured Tobacco Packing Machines Rules 2010 Case Title: Gopal Corporates LLP Versus Commissioner Delhi-East The Delhi High Court has upheld the validity of Rule 8 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules 2010 (CTUT), which deals with the alteration in the number of operating packing machines. Undisclosed Income Taxed In The Hands Of Flagship Company Can’t Be Again Subjected To Tax In The Hands Of Assessee Companies: Delhi High Court Case Title: PCIT Versus Surya Agrotech Infrastructure Limited The Delhi High Court has held that undisclosed income taxed in the hands of flagship companies cannot be again subjected to tax in the hands of assessee companies. Bombay High Court Write-Off Of A Bad Debt Can’t Be Held To Be An Asset Under Section 153A(1) Of The Income Tax Act, 1961: Bombay High Court Case Title: Ashok Commercial Enterprises Versus Assistant Commissioner of Income Taxation The Bombay High Court has held that a write-off of a bad debt cannot be held to be an asset under section 153A(1) of the Income Tax Act, 1961. Development Agreement Not To Be Treated As Transfer Of Possession Of Land: Bombay High Court Quashes Reassessment Notice Case Title: Darshana Anand Damle Versus DCIT The Bombay High Court has quashed the reassessment notice and held that the granting of a licence for the purpose of development of the flats and selling the same could not be said to be granting possession. Karnataka High Court No Further Recovery Of Demand Can Be Made When A Fresh Assessment Is Barred: Karnataka High Court Directs Rs.87 Crore Refund To United Spirits Case Title: United Spirits Limited Versus Assistant Commissioner Of Income-Tax The Karnataka High Court has held that no further demand can be made for recovery of the balance amount since a fresh assessment is barred. In other words, the tax paid by the assessee must be accepted as it is, and in the event of the tax paid being in excess of the tax liability duly computed on the basis of the return furnished and the rates applicable, the excess shall be refunded to the assessee. Calcutta High Court Accused Entitled To Cross-Examine Statements Of Natural Person Recorded Under Customs Act, 1962: Calcutta High Court Case Title: Monotosh Saha Versus Special Director, Enforcement Directorate, Foreign Exchange Management Act The Calcutta High Court has held that the accused is entitled to cross-examine natural persons whose statements were recorded under the Customs Act, 1962. Lawyer-Client Privileged Communication; GST Dept. Can’t Issue Notice To Lawyer : Calcutta High Court Case Title: Himangshu Kumar Ray Versus State Of West Bengal The Calcutta High Court has held that the GST department cannot issue notice to the advocate appearing on behalf of the assessee. Patna High Court Tax Authorities Should Not Act As Extortionist, Act Like Business Facilitator; Patna High Court Imposes Cost On Officer Case Title: Sita Pandey Versus The State of Bihar The Patna High Court has imposed a cost of Rs. 5,000 on officers for surreptitiously making tax recoveries contrary to GST enactment. Allahabad High Court Can’t Deviate From Text Of GST Provisions, Rules And Forms In GST: Allahabad High Court Quashes Penalty The Allahabad High Court has held that the Goods and Service Tax Act, 2017 is a complete code in itself and there can be no deviation from the text of the Act, Rules and Forms. ITAT ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists Case Title: D D & Co. Versus Asst. Commissioner of Income-tax The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists. Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT Case Title: M/s. Al Telekom Austria ...

Tax Cases Weekly Round-Up: 3 September To 9 September, 2023

Mariya Paliwala

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