Tax Cases Weekly Round-Up: 19 November To 25 November, 2023

Delhi High Court Reassessment Notice Severed At Old Address Despite Knowing Assessee’s New Address: Delhi High Court Quashes Assessment Order Case Title: PCIT Versus M/S Dart Infrabuild (P) Ltd. The Delhi High Court has quashed the assessment order as the notice under Section 148 was improperly served as it was sent to the old address, despite the fact that the department was aware of the new address. Seized Cash Should Be Treated As Advance Tax As Per Law, There Was No Default In Payment Of Advance: Delhi High Court Case Title: Ashok Kumar Aggarwal Versus ACIT The Delhi High Court has held that the seized cash was offered by the assessee, under the regime that was prevailing then, to be treated as the advance tax, and thus there was no default in payment of the advance. Although its payment or adjustment was triggered due to a search action. No Recovery Towards TAS Can Be Made Towards Deductee Even If Deductor Is Undergoing CIRP: Delhi High Court Case Title: BDR Finvest Pvt. Ltd. Versus DCIT The Delhi High Court has held that no recovery towards Tax at Source (TAS) can be made towards the deductee even if the deductor is undergoing the Corporate Insolvency Resolution Process (CIRP). Bombay High Court Primary Facts Necessary For Assessment Fully & Truly Disclosed, AO Not Entitled To Change Opinion For Reassessment: Bombay High Court Case Title: DCW Limited Versus Assistant Commissioner of Income Tax The Bombay High Court has held that the primary facts necessary for assessment are fully and truly disclosed, and the Assessing Officer is not entitled, on change of opinion, to commence proceedings for reassessment. Orissa High Court Appeal Against ITAT Order Dismissing Revenue’s Recall Application Does Not Lie Before High Court: Orissa High Court Case Title: Principal Commissioner of Income Tax-1 Versus Sekhar Kumar Mohapatra The Orissa High Court has held that the order passed by the Income Tax Appellate Tribunal (ITAT) dismissing the department’s appeal on the ground of the low tax effect is appealable before the High Court under Section 260A of the Income Tax Act, 1961; however, an appeal against the ITAT order dismissing Revenue’s recall application does not lie before the High Court. Andhra Pradesh High Court Andhra Pradesh High Court Dismisses Plea Challenging Denial Of GST ITC Claim On The Basis Of Transfer Done Manually Not Electronically Case Title: Tikona Infinet Private Limited Versus The State of Andhra Pradesh The Andhra Pradesh High Court has dismissed the plea challenging the denial of the GST input tax credit (ITC) claim on the basis that the transfer was done manually, not electronically. Punjab And Haryana High Court Punjab And Haryana High Court Quashes Section 69 Addition On HSBC Geneva Deposits As Sufficient Explanation About Source Of Investments Given On Affidavit Case Title: Pr. Commissioner of Income Tax-I, Jalandhar Versus Joginder Singh Chatha The Punjab and Haryana High Court has quashed the addition under Section 69 of the Income Tax Act on HSBC Geneva deposits as a sufficient explanation about the source of investments given in the affidavit. Madras High Court Tax Payable After Credit Of Prepaid Taxes Is Less Than Rs.3,000, Prosecution Not Sustainable; Madras High Court Case Title: Manav Menon Versus DCIT The Madras High Court has held that prosecution under Section 276CC of the Income Tax Act is not sustainable as the tax payable after crediting prepaid taxes was less than the prescribed sum of Rs. 3,000. Section 245C(5) Of Income Tax Act Is Read Down By Removing Retrospective Last Date Of 1st Feb 21 As 31st March 21: Madras High Court Case Title: M/s. Jain Metal Rolling Mills Versus Union of India The Madras High Court has held that Section 245C(5) of the Income Tax Act, 1961 (as amended by the Finance Act, 2021) is read down by removing the retrospective last date of the 1st February 2021, as the 31st March 2021. 2 Years Limitation To File GST Refund Application Is Directory & Not Mandatory: Madras High Court Case Title: M/s. Lenovo (India) Pvt. Ltd. Versus JCIT The Madras High Court has held that the 2-year limitation to file a GST refund application is a directory and not mandatory. Jharkhand High Court Jharkhand High Court Rules In Favor of Revenue In Clean Energy Cess Case LL Citation: 2023 LiveLaw (Jha) 140 Case Title: Central Coalfields Limited vs union of India The Jharkhand High Court has ruled in favor of the Revenue in a case involving the demand for Clean Energy Cess on coal production. MP High Court S.73 CGST Act| ‘No Reasonable Opportunity Granted To Respond’, MP High Court Quashes Show Cause Notice Against Raymond Case Title: Raymond Limited V. Union of India Represented By Secretary, Department of Revenue & Ors. Citation: 2023 LiveLaw...

Tax Cases Weekly Round-Up: 19 November To 25 November, 2023

Mariya Paliwala

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