Tax Cases Weekly Round-Up: 26 November To 2 December, 2023

Delhi High Court Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal (ITAT). AO Lacked Tangible Material To Form A Belief That Income, Chargeable To Tax Had Escaped Assessment: Delhi High Court Quashes Reassessment Notice Case Title: Saraswati Petrochem Pvt. Ltd. Versus Income Tax Officer The Delhi High Court has held that AO did not have the tangible material on record that could have persuaded him to form the belief that income, otherwise chargeable to tax, had escaped assessment. Employee Can’t Be Penalised For Non-Deposit Of TDS By Employer: Delhi High Court Case Title: Shri Chintan Bindra Versus DCIT The Delhi High Court has held that the employer of the petitioner or assessee, having failed to perform his duty to deposit the deducted tax with the department, cannot be penalized. It would always be open for revenue to proceed against the employer of the petitioner for recovery of the deducted tax. Bombay High Court Bombay High Court Orders Dept. To Refund Tax Deposited By HSBC Under Protest Case Title: The Hongkong and Shanghai Banking Corporation Versus UOI The Bombay High Court has ordered the department to refund the tax deposited by HSBC under protest. Allahabad High Court Income Tax Authority Cannot Dissect An Otherwise Indivisible Contract In Absence Of Legal Provision: Allahabad High Court Case Title: The Commissioner Of Income Tax (Tds) And Another v. Lalitpur Power Generation Co. Ltd. The Allahabad High Court has held that an otherwise indivisible contract cannot be dissected by the authorities under the Income Tax Act, in absence of any legal provision allowing such dissection. GST | No Real Use In Relegating Cases Of Undisputed Facts To Forum Of Alternate Remedy : Allahabad High Court Case Title: Hindustan Paper Machinery Industries v. Commissioner Cgst And 2 Others The Allahabad High Court has held that tax cases where the facts are undisputed and there are issues of jurisdiction and violation principles of natural justice involved may not be relegated to the Authorities. Direct Tax Vivaad Se Vishwas Act | Out-Of-Court Settlement Not Litigant's Fundamental Right, Can Be Availed Only As Per Law: Allahabad HC Case Title: Umesh Garg v. Union Of India and Another While dealing with a rejection order under the Direct Tax Vivaad Se Vishwas Act, 2020, the Allahabad High Court has held that a litigant does not have a fundamental or inherent right to claim settlement of dispute outside court. The right being created by statute must be availed in accordance with it. Madras High Court Assessee Disclosed Sale Of Agricultural Land In ROI During Scrutiny Assessment: Madras High Court Quashes Reassessment Initiated Beyond 4 Years Case Title: S.Uttam Chand Versus ACIT The Madras High Court has quashed the reassessment proceedings as the petitioner had disclosed the information with regard to the sale of agricultural land, and all the particulars with regard to the sale of agricultural land were disclosed before the Assessing Officer in full extent. Punjab And Haryana High Court Section 148A(b) Notice Not Specifically Served On Assessee: Punjab And Haryana High Court Imposes Rs. 10K Cost On Dept. Case Title: Nilam Mantri Versus ITO The Punjab and Haryana High Court has imposed a cost of Rs. 10K on the income tax department and quashed the order under Section 148A(d) of the Income Tax Act and the notice under Section 148 of the Income Tax Act. Orissa High Court Orissa High Court Allows Expenditure Towards Contribution For Running Of School As Business Expenditure Case Title: Principal Commissioner of Income Versus Paradeep Phosphates Limited The Orissa High Court has held that the expenditure towards the contribution for the running of the school is a business expenditure. ITAT ITAT Allows Section 80P Deduction On Interest Income Arising From Deposits/Investments Made With Co-Operative Bank Case Title: ITO Versus M/s Yendagandhi Large Sized Co-operative Society Ltd. The Visakhapatnam Income Tax Appellate Tribunal (ITAT) has held that there is a deduction under Section 80P of the Income Tax Act on interest income arising from deposits or investments made with cooperative banks. ITAT Imposes Cost Of Rs. 51K For Condoning 33 Days Delay In Filing Appeal Case Title: General Lifescience Distributors Versus CIT The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs. 51,000 for the 33-day delay in filing the...

Tax Cases Weekly Round-Up: 26 November To 2 December, 2023

Mariya Paliwala

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