Tax Cases Weekly Round-Up: 17 September To 23 September, 2023

Delhi High Court Tax Authority Based In Delhi Lacks Jurisdiction On Withholding Tax Liability On Share Purchase Transaction: Delhi High Court Quashes Tax Demand Against Sumitomo Case Title: Sumitomo Mitsui Financial Group Inc. Versus CIT The Delhi High Court has deleted the tax demand against Sumitomo Mitsui Financial Group on the grounds of lack of jurisdiction. Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart Case Title: Flipkart India Private Limited Versus Value Added Tax Officer The Delhi High Court has directed the Value Added Tax (VAT) department to refund Rs. 6.62 crore to Flipkart along with interest. Bombay High Court DRP Can Give Directions Only In Pending Assessment Proceedings: Bombay High Court Case Title: Undercarriage and Tractor Parts Pvt. Ltd. Versus DRP The Bombay High Court has held that the Dispute Resolution Panel (DRP) could give directions only in pending assessment proceedings. Bombay High Court Quashes Re-Assessment Order Based On Change Of Opinion Without Any Tangible New Information Case Title: Ashraf Chitalwala Versus DCIT The Bombay High Court has quashed the reassessment order based on a change of opinion without surfacing any tangible new information. Kerala High Court GST - Input Tax Credit Cannot Be Denied To Purchaser Merely Because Seller Didn't Record Transaction In GSTR-2A Form: Kerala High Court Counsel for the Petitioner: Advocates Aji V. Dev, H. Abdul Lathief, Alan Priyadarshi Dev, and S. Sajeevan Citation: 2023 LiveLaw (Ker) 495 The Kerala High Court recently held that Input Tax Credit (ITC) cannot be denied to a purchaser merely on ground of non-reflection of the transaction in the GSTR-2A Form. Allahabad High Court UP VAT | Burden To Prove Purchase From Registered Dealer On Assessee: Allahabad High Court Case Title: The Commissioner, Commercial Tax v. M/S Ramway Foods Ltd. [SALES/TRADE TAX REVISION No. - 26 of 2023] Case Citation: 2023 LiveLaw (AB) 334 In a revision preferred by the Tax Department, the Allahabad High Court has held that the burden to prove that purchases were made from registered dealer lies on the Assesee claiming the same. The Department cannot be made to discharge a negative burden to prove that the sales were made from unregistered dealers. Patna High Court Civil Liability Imposed for Failing to Settle Tax Dues Due to Incorrect Input Tax Credit Claim, Attracts Penalty: Patna High Court Case Title: M/s Munna Traders vs. The State of Bihar and Others LL Citation: 2023 Livelaw (Pat) 112 In a recent verdict, the Patna High Court upheld the imposition of interest and penalty on M/s Munna Traders, an assessee under the Bihar Goods and Services Tax Act (BGST Act). The penalties were enforced due to an excessive claim of input tax credit, with the Court deeming the penalty as a civil liability arising from the failure to pay the due tax, stemming from an erroneous input tax credit claim. ITAT Employee Stock Option Expenses Revenue In Nature: ITAT Deletes Disallowance Against Cleartrip Case Title: Cleartrip Private Limited Versus DCIT The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that employee stock option expenses are revenue in nature. Assessment Invalid On Account Of A Mechanical Non-Speaking Approval Under Section 153D: ITAT Case Title: Vrushali Sanjay Shinde Versus DCIT The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that assessment invalid on account of a mechanical non-speaking approval under Section 153D of the Income Tax Act. Issuance Of Bonus Shares Does Not Amount To Transfer Of Property And Does Not Attract Section 56(2)(vii)(c): ITAT Case Title: DCIT Versus Aruna Chandhok The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that in the issue of bonus shares, the money remains with the company and nothing comes to the shareholders as there is no transfer of the property and the provisions of Section 56(2)(vii)(c) of the Income Tax Act. TDS Not Required To Be Deducted At The Time Of Grant Of ESOP: ITAT Case Title: DCIT Versus Total Energies Marketing India Pvt. Ltd. The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS is not required to be deducted at the time of grant of an employee stock ownership plan (ESOP). TNMM Should Be Applied In Respect Of International Transaction Of `Sale Of Finished Goods’: ITAT Case Title: DCIT Versus M/s. Ampacet Speciality Products Private Limited The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that the Transactional Net Margin Method (TNMM) should be applied in respect of international transactions of `Sale of finished goods’. ‘Non-Cooperative Attitude’ Cannot Be The Basis Of Imposing Penalty: ITAT Case Title: Alankit Imaginations Ltd. Versus DCIT ...

Tax Cases Weekly Round-Up: 17 September To 23 September, 2023

Mariya Paliwala

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