Tax Cases Weekly Round-Up: 23 April To 29 April, 2023

Bombay High Court Goa Value Added Tax (12th Amendment) Act, 2020 Defies The Doctrine Of Separation Of Powers: Bombay High Court Case Title: Rohan Lobo Versus State Of Goa The Bombay High Court has held that the Goa Value Added Tax (12th Amendment) Act, 2020, is an impermissible judicial override defying the doctrine of separation of powers. Material Triggering Reassessment Must Be Furnished To The Assessee: Bombay High Court Case Title: Anurag Gupta Versus ITO The Bombay High Court has held that providing information to the assessee without furnishing the material based upon which the information is provided would render an assessee handicapped in submitting an effective reply to the show cause notice. Gujarat High Court Income Tax Assessment Can’t Be Reopened Without Any Foundation: Gujarat High Court Case Title: Bimlakumari Lajpatraj Hurra Versus Income Tax Officer The Gujarat High Court has held that when the foundation was missing, there could not have been the erection of ground to seek reopening of assessment. Kerala High Court Claim Of Deduction Under Section 80P Is Conditional On Filing A Return Within The Due Date: Kerala High Court Case Title: M/S. Nileshwar Rangekallu Chethu Vyavasaya Thozhilali Sahakarana Sangham Versus The Commissioner Of Income Tax The Kerala High Court has held that the pre-condition for claiming the deduction under Section 80P of the IT Act has now been made more stringent by reducing the time available to an assessee for making the claim. Punjab and Haryana High Court Tax Deposited During Search Can't Be Retained By Department Till Adjudication Of Notice: Punjab and Haryana High Court Case Title: Modern Insecticides Ltd. Versus Commissioner, Central Goods and Service Tax and another The Punjab and Haryana High Court has held that deposits of tax during searches cannot be retained by the department until the adjudication of the notice. Rajasthan High Court Entitlement Of ITC After Cancellation Of GST Registration Can Be Considered During Revocation: Rajasthan High Court Case Title: M/s R.K. Jewelers Versus The Union of India The Rajasthan High Court has held that the assessee is entitled to lodge an ITC claim when the department considers the issue of revocation of GST registration cancellation. ITAT Without Corroborating Evidence, Addition Can’t Be Made On The Basis Of A Declaration Made U/s 132(4) Of The Income Tax Act: ITAT Case Title: Agrim Infraproject Private Limited Versus Deputy Commissioner of Income Tax The Guwahati Bench of the Income Tax Appellate Tribunal (ITAT) has held that without corroborating evidence, an addition ought not to be made on the basis of a declaration made under Section 132(4) of the Income Tax Act. Assessee Explained The Source Of The Excess Stock Found During The Course Of Survey: ITAT Deletes Addition Case Title: M/s. Overseas Leathers Versus Deputy Commissioner of Income-tax The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee has explained the source of the excess stock found during the course of the survey. Amount Declared As Turnover Can’t Be Concealed Income: ITAT Case Title: Raj Kumar Versus ITO The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the amount is declared as turn-over, it cannot be called concealed income and be taxed twice on the same amount. Employee Remuneration, Legal Expenses, Board Meeting Expenses etc. , Can’t Be Attributable To Interest From FDs: ITAT Case Title: Avantha Consulting Services Ltd. Versus DCIT The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), while refusing to allow the income tax deduction, has held that employee remuneration, salary, legal expenses, board meeting expenses, and director sitting fees cannot be attributable to the interest earned from the fixed deposits. CESTAT Allocation Of Area Development Charges By The State Government Cannot Be Treated As Consideration Towards A Service: CESTAT Case Title: M/s. The Madhya Pradesh State Mining, Corporation Limited Versus Pr. Commissioner, CGST & Central Excise The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the allocation of area development charges by the state government cannot be treated as consideration for service. Service Tax Not Leviable On Incentives For Achieving Sales Target: CESTAT Case Title: M/s Audi Motors Pvt. Ltd. Versus Commissioner CGST, Jodhpur The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not leviable on incentives for achieving sales targets. Order Prescribing Conditions Of Provisional Release Is Too Harsh: CESTAT Directs Release Seized Goods Case Title: M/s. OSM Ecocar Pvt. Ltd. Versus Commissioner of Customs ...

Tax Cases Weekly Round-Up: 23 April To 29 April, 2023

Mariya Paliwala

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