Tax Cases Weekly Round-Up: 6 August To 12 August, 2023

Delhi High Court Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court Case Title: PCIT Versus M/S Eltek Sgs Pvt. Ltd. Citation: 2023 LiveLaw (Del) 668 The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill. Bombay High Court Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court Case Title: Coventry Estates Pvt. Ltd. Versus The Joint Commissioner CGST and Central Excise The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice. Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court Case Title: Cummins India Limited Versus ACIT The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it. Bombay High Court Quashes Review Order Which Disallowed Deductions, Being Contra To Natural Justice Case Title: Kalpataru Power Transmission Ltd. Versus State Of Maharashtra The Bombay High Court has quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN). Gujarat High Court Gujarat High Court Orders Refund Of IGST With Interest In An Inadvertent Tax Payment Case Case Title: Tagros Chemicals India Pvt. Ltd. Versus Union Of India Case Citation: Case Citation: 2023 Livelaw (Guj) 128 The Gujarat High Court has directed the refund of the Integrated Goods and Service Tax (IGST) amount, along with applicable interest, to a petitioner who inadvertently paid IGST at a higher rate than the concessional rate applicable. Gujarat High Court Quashes Orders Rejecting Declaration Under SVLDRS Scheme, Directs Acceptance Of Declaration Case Title: M/s FTA HSRP Solutions Pvt. Ltd. vs Union Of India The Gujarat High Court has rendered a verdict in favor of M/S Fta Hsrp Solutions Pvt, setting aside the rejection of their declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The court has directed the designated committee, Sabka Vishwas Dispute Resolution Scheme, to accept the petitioner's declaration and bring closure to the tax dispute. Gujarat High Court Quashes Income Tax Reassessment Notices Against Non-Existent Entity Case Title: Anokhi Realty Private Limited vs. Income Tax Officer 2023 LiveLaw (Guj) 132 [Special Civil Application No. 17613 Of 2021] Case Citation: 2023 LiveLaw (Guj) 132 The Gujarat High Court has quashed the income tax reassessment notice against a non-existent entity. Services Can’t Be Roped Into FTS Unless Person using Services Able To Use Technology: Gujarat High Court Case Title: Commissioner Of Income Tax (International Taxation And Transfer Pricing) Versus Star Rays The Gujarat High Court has held that mere rendering of services cannot be roped into fees for technical service (FTS) unless the person utilising the services is able to make use of the technical knowledge, etc. Calcutta High Court Calcutta High Court Dismisses Income Tax Dept’s Appeal On The Ground Of Low Tax Effect Case Title: Principal Commissioner Of Income Tax-2, Kolkata -Versus- M/S. Deepak Industries Ltd. The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects. Jammu & Kashmir And Ladakh High Court Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court Case Title: PCIT Versus M/S The J&K Bank Ltd. The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs. Madhya Pradesh High Court Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost Case Title: Hitesh Nagwani Versus Commissioner Of Customs The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge. Patna High Court Patna High Court Orders Railways To Refund Illegal VAT Deduction from Contractors' Bills Case Title: PCM Cement Concrete Pvt. Ltd vs. The Union of India and Others Case Citation: 2023 LiveLaw (Pat) 90 In a significant ruling, the Patna High...

Tax Cases Weekly Round-Up: 6 August To 12 August, 2023

Mariya Paliwala

Tags