Tax Cases Weekly Round-Up: 14 May to 20 May, 2023

Supreme Court Credit Note Issued By Automobile Manufacturer To Dealer, In Consideration Of Replacement Of Defective Part, Attracts Sales Tax: Supreme Court Case Title: M/S. Tata Motors Ltd. vs The Deputy Commissioner Of Commercial Taxes (SPL) & Anr. Citation : 2023 LiveLaw (SC) 443 The Supreme Court has ruled that a credit note issued by an automobile manufacturer to a dealer of automobiles, in consideration of the replacement of a defective part done by the dealer pursuant to a warranty agreement, is exigible to sales tax. Delhi High Court Delhi High Court Quashes Penalty Order Under BMA On Failure Of Dept. To Consider Assessee’s Email Case Title: Prateek Chitkara Versus JCIT Citation: 2023 LiveLaw (Del) 408 The Delhi High Court has quashed the penalty order under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA) for non-consideration of the assessee’s email. Income Tax Act - Carrier of Goods Not An ‘Owner’; Bitumen Not A ‘Valuable Article’ Under S. 69A : Supreme Court Case Title: M/s. D.N. Singh vs Commissioner of Income Tax, Central, Patna & Anr. Citation : 2023 LiveLaw (SC) 451 The Supreme Court has ruled that bitumen cannot be treated as a ‘valuable article’ under Section 69A of the Income Tax Act, 1961. The bench comprising Justices K.M. Joseph and Hrishikesh Roy made the observation while dealing with an appeal filed against the decision of the Patna High Court, who had upheld the additions made by the Assessing Officer (AO) towards the bitumen lifted by the assessee as a carriage contractor, which was allegedly not delivered by it to the consignee- the Road Construction Department of the Government of Bihar, as instructed. Bombay High Court Bombay High Court Quashes Reassessment Triggered On A Change Of Opinion As To The Calculation Of Tax Payable By The Assessee Case Title: Chanchal Bhagwatilal Gokhru Versus Union of India The Bombay High Court has quashed the reassessment proceedings triggered by a change of opinion as to the calculation of tax payable by the assessee. Karnataka High Court Online Rummy Games Played Are Not Taxable As ‘Betting’ And ‘Gambling: Karnataka High Court Quashes GST Intimation Notice Demanding Rs. 21,000 Crores Against Gameskraft Case Title: Gameskraft Technologies Private Limited Versus Directorate General Of Goods The Karnataka High Court has quashed the GST Intimation Notice to the tune of Rs 21,000 crore and held that online/electronic/digital Rummy games and other Online/Electronic/Digital games played on Gameskraft’s platforms are not taxable as "betting" and "gambling". Jammu & Kashmir High Court Transfer Of Goods By Power Grid Corporation To Its Contractor Does Not Involve Transfer Of Ownership, Hence No Sale: Jammu & Kashmir High Court Case Title: M/S Power Grid Corporation of India Ltd. Versus Assessing Authority Sales Tax Circle D Jammu Citation: 2023 LiveLaw (JKL) 122 The Jammu & Kashmir High Court has held that sales tax is not leviable on materials purchased by Power Grid Corporation from outside the state and transferred to contractors. ITAT Agricultural Operations Cannot Be Dubbed As ‘Commercial Activity’ Merely For Commercially Selling Hybrid Seeds And Open Pollinated Seed Varieties: ITAT Case Title: Dy. Commissioner of Income Tax Versus M/s. Pravardhan Seeds Pvt. Ltd. The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that when agricultural activity is conducted and seeds are produced, merely because the seeds were sold commercially, the basic agricultural operations also cannot be dubbed "commercial activities" and not ‘agricultural activities’. ITAT Deletes Income Tax Addition Towards ESOP Case Title: Unilever India Exports Limited Versus ACIT The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition towards ESOP. ITAT Imposes Cost On Assessee For Being Delinquent And Lethargic In Pursuing The case Before The Authorities Case Title: Anilkumar Champalal Jain Versus ITO The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a fine of Rs. 2000 for being delinquent and lethargic in pursuing the matter before the tax authorities. AO Can’t Make Addition On The Basis Of Statement Without Corroborating It With Any Other Material: ITAT Case Title: DCIT Versus M/s. Parshwa Associates The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that an AO cannot make additions merely on the basis of a statement without corroborating it with any other material. ITAT Deletes Additions On Long Term Capital Gains On The Purported, Notional, Fictitious Sale Of Jewellery Case Title: Ballabh Prasad Aggarwal Versus ACIT The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has...

Tax Cases Weekly Round-Up: 14 May to 20 May, 2023

Mariya Paliwala

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