Tax Cases Weekly Round-Up: 1 To 7 October, 2023

Delhi High Court EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday Case Title: PCIT Versus Pepsico India Holding Pvt. Ltd. The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday. Bombay High Court Bombay High Court Quashes Reassessment Against Knight Riders Sports Case Title: Knight Riders Sports Pvt. Ltd. Versus ACIT The Bombay High Court has quashed the reassessment against Knight Riders Sport and held that a change of opinion does not constitute justification to believe income chargeable to tax escaped assessment. Uttarakhand High Court Uttarakhand High Court Set Aside Reassessment Proceedings Initiated against Amalgamated Company As It Became Non-Existent Case Title: Delta Electronics India Pvt. Ltd. Versus PCIT The Uttarakhand High Court has held that PAN activation by a transferor company does not entitle revenue to issue a reassessment notice after the appointed date of amalgamation. Telangana High Court Once Sanction Is Given To A Particular Authority Wilful Tax Evasion Prosecution Has To Be Launched By Him Alone: Telangana High Court Case Title: Tirumala Tirupati Constructions India Pvt. Ltd. Versus ACIT The Telangana High Court has overturned the assessee's wilful tax evasion prosecution before the Special Judge for Economic Offences. Service Tax Rebate Can Be Allowed Subject To Receipt Convertible Foreign Exchange Against Each Invoice: CESTAT Case Title: M/s. I Gate Global Solutions Ltd. Versus Commissioner of CGST The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that unless it is established that against every invoice convertible foreign exchange has been received, the rebate of service tax paid in respect of that invoice cannot be allowed to the exporter. Madras High Court Madras High Court Allows Company To File Statutory Appeal After Limitation Period Noting That It Could Not Check GST Portal Due To Lack Of Employees Case Title: SRM Engineering Construction Corporation Limited v. The Assistant Commissioner (ST) (FAC) The Madras High court recently allowed a company to file a Statutory Appeal against the Assessment Order passed by the Assistant Commissioner (ST) (FAC) even though the limitation period to file an appeal had expired after noting that the company failed to access the notice in the GST portal. [Section 220 Income Tax Act] Cannot Escape Payment Of Interest Merely Due To Wrong PAN Number In Order: Madras High Court Case Title: G Moorthi v The Recovery Officer Citation: 2023 LiveLaw (Mad) 305 The Madras High Court recently observed that PAN particulars are only one of the modes to identify an individual and merely because a wrong PAN number was given in the order by the Adjudicating officer of SEBI, a person could not escape payment of interest. ITAT Income From Nursery Activities Of Growing Various Types Of Lawns, Flower Plants And Vegetable Plants Is Agricultural In Nature: ITAT Case Title: Talshibhai B Narola Versus The Income Tax Officer The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that income from nursery activities such as growing various types of lawns, flower plants, and vegetable plants is agricultural in nature. Assessee Resorts To Colourable Devices, Sham Transactions To Defraud Dept: ITAT Case Title: Manoj Anand Versus ACIT The Panaji Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee had resorted to colourable devices and sham transactions in order to defraud the Department by camouflaging its unaccounted income so that ultimately, the tax could be evaded. ALP Of The ESOP Expenses Cannot Be Taken As ‘Nil’: ITAT Case Title: Booking.Com India Support & Marketing Services Private Limited Versus DCIT The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the arm's-length price (ALP) of the employee stock option plan (ESOP) expenses cannot be taken as ‘Nil’. CESTAT Punjab Cricket Association Not Liable To Pay Service Tax Under The Head “Club or Association Service”: CESTAT Case Title: M/s Punjab Cricket Association Versus The Commissioner of Central Excise, Chandigarh-I The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Punjab Cricket Association (PCA) is not liable to pay service tax under the heading “club or association service”. CESTAT Quashes Service Tax Demand On Amount Received For Vessels To Dredging Corporation Case Title: M/s. International Seaport Dredging Limited Versus Commissioner of GST and Central Excise The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the amount received ...

Tax Cases Weekly Round-Up: 1 To 7 October, 2023

Mariya Paliwala

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