Tax Cases Weekly Round-Up: 19 February To 25 February 2023

Bombay High Court GST Act Can’t Be Interpreted To Deny Right To Carry Trade And Commerce By Citizens: Bombay High Court Case Title: Rohit Enterprises Versus The Commissioner State GST Bhavan Citation: 2023 LiveLaw (Bom) 108 The Aurangabad Bench of the Bombay High Court has held that the provisions of the GST enactment cannot be interpreted so as to deny the right to carry on trade and commerce to any citizen or subject. Availability Of Interest-Free Surplus Fund To Make Investment: Bombay High Court Deletes Addition On Interest Expenditure Case Title: Pr. Commissioner of Income-Tax Versus Godrej & Boyce Mfg. Co. Ltd. The Bombay High Court has upheld the CIT’s order in deleting the addition made on account of interest expenditure as the assessee, Godrej & Boyce, had sufficient interest-free surplus funds to make the investment. Constitute GST Tribunal To Reduce Needless Litigations In The Form Of Filing Writ Petitions: Bombay High Court Advises CBIC Case Title: Rochem India Pvt. Ltd. Versus CBIC The Bombay High Court has advised the Central Board of Indirect Taxes (CBIC) to construct GST tribunals to reduce needless litigation in the form of filing writ petitions. Allahabad High Court Dealer Can’t Undervalue Goods To Escape Tax, Under The Garb of E-Way Bill Isn’t Required For Goods Below Rs. 50,000: Allahabad High Court Case Title: M/s Radha Fragrance versus Union of India & Ors. The Allahabad High Court has ruled that under the garb of the protection given under Rule 138 of CGST Rules, 2017, dispensing the requirement of E-Way bill for movement of goods valuing below Rs.50,000, a dealer who is a manufacturer, cannot be allowed to send his goods to different consignees by undervaluing the same, and without the Taxing Authorities proceeding to take action against him under Section 129 of the CGST Act. Madhya Pradesh High Court No Incriminating Material Found During Search: Madhya Pradesh High Court Dismisses Department’s Appeal Case Title: PCIT Versus M/s Great Galleon Ventures Ltd. The Madhya Pradesh High Court's Indore Bench dismissed the department's appeal, ruling that no incriminating documents were discovered during the search. Orissa High Court Appearance Of AR Not Enough For Presuming Service On Assessee Under S. 292BB Of ITA: Orissa High Court Case Title: PCIT (Central) versus Narayan Kumar Khaitan The Orissa High Court has deprecated the Income Tax Authority who, despite being informed that the assessee was in judicial custody, failed to serve a notice upon him through the Superintendent of the concerned jail, in the proceedings initiated against the assessee under Section 263 of the Income Tax Act, 1961. Punjab and Haryana High Court Fabrication Of Bills Worth Rs.367 Crores, Accused In Custody For 18 Months: Punjab and Haryana High Court Grants Bail Case Title: Vijay Garg Versus the State of Haryana and another The Punjab and Haryana High Court granted bail to the person accused of forging bills worth Rs. 367 crores and evading GST payments worth Rs. 26 crores. Renting Dharamshala On Nominal Rent For Marriages Not Commercial, No Property Tax: Punjab and Haryana High Court Case Title: Daulat Ram Khan Versus State of Haryana The Punjab and Haryana High Court has held that if Dharamshala is provided at a nominal rent for conducting marriages, it will not amount to a commercial purpose. Jharkhand High Court Jharkhand High Court Stays Show-Cause Notices Issued By Two Different Authorities In Respect Of The Same Subject Matter Case Title: M/s Ambey Mining Pvt. Ltd. Versus Commissioner of State Tax The Jharkhand High Court has stayed the show-cause notices issued by two different authorities in respect of the same subject matter as being outside its jurisdiction. CESTAT No Service Tax Payable On Construction Services Provided To Gujarat State Police Housing Corporation: CESTAT Case Title: R D Contractor & Company Versus Commissioner of Central Excise & ST, Anand The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not payable on the construction services provided to the Gujarat State Police Housing Corporation for the construction of a residential complex for the police staff. ITAT IBC Has Overriding Effect On All The Acts Including Income Tax Act: ITAT Case Title: ACIT Versus ABW Infrastructure Ltd. The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Insolvency and Bankruptcy Code (IBC) has an overriding effect on all acts, including the Income Tax Act, as per Section 178(6) of the Income Tax Act, effective from November 1, 2016. Misplacing FD Is Not The Ground For Deleting Addition Of Interest: ITAT Case Title: Smiths Detection Asia Pacific Pte Ltd Versus The Dy. C.I.T The Delhi Bench of the Income Tax Appellate ...

Tax Cases Weekly Round-Up: 19 February To 25 February 2023

Mariya Paliwala

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