Tax Cases Weekly Round-Up: 11 December to 17 December 2022

Supreme Court Income Tax Dept. Can't Initiate Reassessment Proceedings During The Pendency Of The Rectification Proceedings: Supreme Court Case Title: S.M. Overseas (P) Ltd. Versus CIT The Supreme Court has held that the income tax department cannot initiate the reassessment proceedings during the pendency of the rectification proceedings. The division bench of Justice M.R. Shah and Justice C.T. Ravikumar has observed that the Punjab and Haryana High Court has committed a serious error in holding that the notice under Section 154 was invalid as it was beyond the period of limitation. The proceedings under Section 154 of the Income Tax Act were not the subject matter before the High Court. Delhi High Court Delhi High Court Allows Deduction Of Expenses Undertaken Under the CSR Endeavour u/s 37 Of The Income Tax Act Case Title: PCIT Versus PEC Ltd. Citation: 2022 LiveLaw (Del) 1186 The Delhi High Court has allowed the deduction of expenses undertaken under the Corporate Social Responsibility (CSR) endeavor under Section 37 of the Income Tax Act, 1961. The division bench of Justice Rajeev Shakdher and Justice Tara Vitasta Ganju has observed that the memorandum, which was published along with Finance (No. 2) Bill 2014, clearly indicated that the amendment would take effect from 01.04.2015 and, accordingly, would apply in relation to assessment year 2015-2016 and the subsequent years. Delhi High Court Refuses To Release Laptop, Computer, Documents, Seized By DGGI During Search Case Title: Dhruv Krishan Maggu Versus Principal Directorate General Citation: 2022 LiveLaw (Del) 1187 The Delhi High Court has refused to release laptops, computers, documents, and other things that were seized by the Directorate General of GST Intelligence (DGGI) during the search. The single bench of Justice Prathiba M. Singh has observed that the "documents, books, or things" can be retained for a maximum period of four and a half years, within which period the notice has to be issued, plus thirty days from the date of the erroneous refund. Bombay High Court Failure To Disclose All Material Facts Is Essential To Issue Reassessment Notice: Bombay High Court Case Title: Chowgule & Company (P) Ltd. Versus JCIT The Bombay High Court at Goa has held that failure to disclose fully and truly all material facts is an essential jurisdictional parameter that must be fulfilled before any notice can be issued for reopening the assessment proceedings after the expiration of four years from the end of the relevant assessment year. The division bench of Justice M.S. Sonak and Justice Bharat P. Deshpande has observed that in the absence of any allegation or a plain statement about compliance with the jurisdictional parameter, the reassessment notice cannot be ordinarily sustained. Madras High Court Madras High Court Quashes Non-Speaking Order Cancelling GST Registration The Madras High Court has quashed the order canceling GST registration without referring to the reason for the non-filing GSTR-3B return. The single bench of Justice M. Sundar has remitted the matter back to the appellate authority with a directive to examine the matter on the merits based on available records and based on the opportunity already given to the writ petitioner/assessee under sub-section (8) of Section 107 of the CGST Act. Chhattisgarh High Court Lease Charges Paid By The Railways Department Not Subjected To Levy Of VAT: Chhattisgarh High Court Case Title: M/s Ultratech Cement Limited Versus State of Chhattisgarh Citation: Writ Petition (T) No. 128 Of 2015 The Chhattisgarh High Court has held that the lease charges paid by the Railways Department are not subject to the levy of value-added tax (VAT). The single bench of Justice P. Sam Koshy has observed that the right to use goods or the use of goods is not the relevant factor to justify the levy of taxes. Gujarat High Court Gujarat High Court Releases Bank Account From Attachment Of Subsidiary Of Taiwan Company Subject To The Personal Undertaking Of The Directors Case Title: FCS Manufacturing (India) Pvt. Ltd Vs Deputy Director Of Income Tax The Gujarat High Court has directed the department to release the bank account from the attachment of the subsidiary of the Taiwan Company subject to the personal undertakings of the directors. The division bench of Justice Sonia Gokani and Justice Mauna M. Bhatt, in order to secure the revenue's interest, has directed the department to continue the attachment of FD with DBS amounting to Rs. 2.65 crores. No Fraudulent Intention Established: Gujarat High Court Quashes Penalty Case Title: Shree Govind Alloys Pvt. Ltd. The Gujarat High Court has held that the department could not establish any element of tax evasion with fraudulent intent or negligence. The division bench of Justice Sonia Gokani and Justice...

Tax Cases Weekly Round-Up: 11 December to 17 December 2022

Mariya Paliwala

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