Tax Cases Weekly Round Up: 26 March To 1 April, 2023

Supreme Court Income Tax Act - Date Of Panchnama Last Drawn Starting Point Of Limitation For Completing Block Assessment Proceedings: Supreme Court Case Title: Anil Minda and Others Versus Commissioner of Income Tax Citation: 2023 LiveLaw (SC) 246 The Supreme Court has held that the date on which the Panchnama was last drawn is the starting point of the two-year limitation for completing the block assessment proceedings under the Income Tax Act 1961. Central Excise Act - To Be "Related Person", Buyer & Seller Must Have Direct Or Indirect Interest In Each Other’s Business : Supreme Court Case Title: M/S Bilag Industries P. Ltd. & Anr. Versus Commr. Of Cen. Exc. Daman & Anr. Citation: 2023 LiveLaw (SC) 257 The Supreme Court while ascertaining who is the “Related Party” under the Central Excise Act for the purpose of valuation held that before the clause in Section 4(4)(c) could be used, the buyer and seller had to be interested in one another's businesses. Since two-way traffic is required, there shouldn't be any one-way traffic. Delhi High Court Refund Can’t Be Withheld On The Ground That Assessee Is Selected For Scrutiny Assessment; Delhi High Court Sets Aside Order Withholding Refund Due To OYO Case Title: OYO Hotels and Homes Private Limited vs Deputy Assistant Commissioner of Income Tax & Anr. The Delhi High Court has set aside the Revenue Department’s order withholding a refund of over Rs. 33 Crores due to OYO Hotels and Homes Pvt Ltd, while directing the department to reconsider OYO’s representations seeking disbursal of the refund amount, bearing in mind the provisions of Section 241A of the Income Tax Act, 1961. Madras High Court Errors Committed Are Inadvertent, Rectification Would Enable Proper Reporting Of The Turnover And ITC: Madras High Court Case Title: Deepa Traders Versus Principal Chief Commissioner of GST & Central Excise The Madras High Court has held that errors committed are inadvertent and, the rectification would, in fact, enable proper reporting of the turnover and input tax credit (ITC) to enable claims to be made in an appropriate fashion by the assessees. Karnataka High Court DGFT Has No Authority To Violate The Foreign Trade Policy, Power Lies Only With Central Govt: Karnataka High court The Karnataka High Court has held that only the Central Government can make provision for prohibiting, restricting, or regulating the import or export of goods or services, or technology and not the Director General of Foreign Trade (DGFT). Madhya Pradesh High Court VAT Act, Madhya Pradesh High Court Directs Dept. To Refund Pre-Deposit With 6% Interest Case Title: Mount Everest Breweries Ltd. Versus State of Madhya Pradesh The Madhya Pradesh High Court has directed the state/commercial tax department to refund the pre-deposit amount paid during the appeal with 6% interest to the assessee. The division bench of Justice Sushrut Arvind Dharmadhikari and Justice Prakash Chandra Gupta has observed that even though there is no provision for payment of interest on the refund of amounts so collected under the VAT Act, the petitioner would be eligible for 6% interest per annum w.e.f. April 17, 2017, until the date of refund. Calcutta High Court AO Has Reduced The Procedure To An Empty Formality, To Be Deprecated: Calcutta High Court The Calcutta High Court had quashed the Assessment Order and held that the assessing officer has reduced the procedure to an empty formality, which has to be deprecated. Punjab & Haryana High Court Minimum Period Of 7 Days To Respond Is Mandatory, Non-Compliance is To Reassessment Proceedings: Punjab & Haryana High Court Case Title: Baljeet Singh Versus ITO The Punjab & Haryana High Court has held that a minimum period of seven days to respond as provided under Section 148A(b) of the Income Tax Act is mandatory in nature and non-compliance in this regard would be fatal to the reassessment proceedings. ITAT ITAT Allows Section 54F Deduction Though Capital Gain Scheme Account Was Not Opened Case Title: T. Pandian Versus ITO The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under section 54F though the capital gain scheme account was not opened. AAR Supply Of Goods To The Overseas Customer Is Neither A Supply Of Goods Nor A Supply Of Services: Karnataka AAR Applicant’s Name: Marubeni India Private Limited The Karnataka Authority for Advance Ruling (AAR) has ruled that the supply of goods to an overseas customer is treated neither as a supply of goods nor as a supply of services. Transaction Of Transfer/Sale Of One Of The Independent Running Business Divisions Attracts 18% GST: AAR Applicant’s Name: PICO2FEMTO Semiconductor Services Private Limited The Karnataka Authority for Advance Ruling (AAR) has held that the transfer or sale of one of the independently...

Tax Cases Weekly Round Up: 26 March To 1 April, 2023

Mariya Paliwala

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