Tax Cases Weekly Round-Up: 31 December 2023 To 6 January 2024

Supreme Court Supreme Court Dismisses UP Govt.'s Appeal Against Allahabad HC Order Quashing Demand Of Rs. 235.52 Crores Against VIVO Case Title: State of Uttar Pradesh and Anr. v. M/s Vivo Mobile India Private Ltd. & Ors. On Thursday(January 4), the Supreme Court dismissed a Special Leave Petition filed by the State of Uttar Pradesh against the order of the Allahabad High Court quashing the demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited raised by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017. Delhi High Court Actual Interest Expenditure Had To Be Adjusted Against Income Earned By Way Of Interest: Delhi High Court Case Title: CIT Versus RRPR Holding Pvt. Ltd. Citation: 2024 LiveLaw (Del) 3 The Delhi High Court has held that actual interest expenditure had to be adjusted against the income earned by way of interest. Use Of Trademark Incidental To Advertisement Or Publicity Is A Business Income, Not Royalty And FTS: Delhi High Court Case Title: Hyatt International-Southwest Asia Ltd. Versus Additional Director Of Income Tax The Delhi High Court has held that the use of trademarks incidental to advertisement or publicity was held as neither royalty nor fees for technical services (FTS) but as business income. Order Cancelling GST Registration With Retrospective Effect Bereft Of Reasons, Liable To Be Quashed: Delhi High Court Case Title: RS Wires Industries Versus Sales Tax Officer Class The Delhi High Court has quashed the order cancelling GST registration with retrospective effect, bereft of reasons. Employee Accepted Salary After TDS Deduction, Employer Responsible For Non-Deposit: Delhi High Court Case Title: Harshdip Singh Dhillon Versus Union Of India The Delhi High Court has held that the employee accepted salary after TDS deduction and the employer is responsible for non-deposit of TDS. GST ITC Refund Can't Be Rejected Merely On Ground Of Non-Supply Of Authenticated Document: Delhi High Court Case Title: M/S Mittal Footcare Versus The Commissioner Of Central Goods And Services Tax The Delhi High Court has held that an input tax credit (ITC) refund cannot be rejected merely on the grounds of the non-supply of authenticated documents. Kerala High Court Assessee Can't Indefinitely Seek Time In Response To SCN: Kerala High Court Case Title: Shaju Pachelil Pathrose Versus Additional/Joint/Deputy/Assistant Commissioner Of Income Tax Citation: 2023 LiveLaw (Ker) 12 The Kerala High Court has held that the assessee cannot indefinitely seek time in response to a show cause notice. Karnataka High Court CA Firm Paid Service Tax With Accrued Interest Before Show Cause Notice: Karnataka High Court Reduces Penalty From 100% To 25% Case Title: M/S. V.K. Niranjan And Co Versus Commissioner Of Service Tax The Karnataka High Court has held that the service tax has been paid with accrued interest even before the show cause notice has reached the review petitioner. Madras High Court Madras High Court permits Compounding Of Prosecution In Tax Evasion Case By MRF Chairman & Managing Director Case Title: The Principal Commissioner of Income Tax Versus K.M.Mammen Citation: 2024 LiveLaw (Mad) 2 The bench of Justice R. Mahdevan and Justice Mohammed Shaffiq, while upholding the order passed by the single judge, held that since the penalty was reduced from 300% to 100% of the tax sought to be evaded, the assessee is entitled to the benefit of Section 279(1A) of Income Tax. The section deals with non-prosecution for tax offences where the penalty is reduced. Areca Nuts Have Limited Shelf-Life, Risk Of Contamination: Madras High Court Directs Verification Of Certificate Of Origin Case Title: M/s.Radha Industries Versus Commissioner of Customs The Madras High Court has directed the verification of certificate of origin within 30 days and in case of failure of verification within time release the seized areca nut is subject to providing a bond for 100% of the value of goods but without insisting on a bank guarantee. Gujarat High Court Income Tax Act | Gujarat High Court Invalidates Income Tax Assessment Order Due To Violations Of Section 144B Case Title: Dhvanil Hemendra Reshamwala Versus Income Tax Officer, Ward 1(3)(1) LL Citation: 2024 LiveLaw (Guj) 2 In a significant legal development, the Gujarat High Court has invalidated an Income Tax Assessment Order, citing violations of Section 144B of the Income Tax Act. Income Tax Act | Section 119(2)(B) Application Cannot Be Rejected Citing Vague & Arbitrary Reasons Case Title: M/S AMIT HOSPITAL PVT. LTD. Versus PRINCIPAL COMMISSIONER OF INCOME TAX LL Citation: 2024 LiveLaw (Guj) 1 In a recent ruling, the Gujarat High Court has emphasized that applications under Section...

Tax Cases Weekly Round-Up: 31 December 2023 To 6 January 2024

Mariya Paliwala

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