Tax Cases Weekly Round-Up: 16 July To 22 July, 2023

Supreme Court Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court Case Title: Principal Commissioner of Income Tax vs King Buildcon Pvt. Ltd. Citation : 2023 LiveLaw (SC) 532 The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot make additions to assessee’s income in respect of completed/unabated assessments if no incriminating material has been found during the course of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961. However, the bench comprising Justices C.T. Ravikumar and Manoj Misra said that in terms of the said judgment, the completed/unabated assessments can be re-opened by the AO in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions mentioned under the said provisions. Delhi High Court Subscription Amount Received From Subscribers Of E-Journals Cannot Be Treated As Royalty: Delhi High Court Case Title: The Commissioner Of Income Tax Versus Springer Nature Customer Services Centre GMBH The Delhi High Court has held that the subscription amount received from subscribers of e-journals cannot be treated as royalty. Mere Pendency Of An Appeal Would Not Detract From The Excise Duty Refund Demand: Delhi High Court Case Title: M/S Goldy Engineering Works Versus Commissioner Of Central Excise The Delhi High Court has held that the mere pendency of an appeal or an order of stay that may operate would not detract from the obligation of any person claiming a refund to make an application within the period prescribed and computed with reference to the "relevant date". Delhi High Court Excludes Comparable On Grounds Of Functional Dissimilarity & Amalgamation Case Title: The Commissioner Of Income Tax -4 Versus GE India Business Services Pvt. Ltd. The Delhi High Court has held that the Software Development Services offered by TCS International could not be used as a comparable since the assessee was in the business of Indian Information technology-enabled services (ITES) or business process outsourcing (BPO). Bombay High Court Reassessment Can’t Be Initiated On Grounds Of Subsequent Contradictory Ruling By AAR: Bombay High Court Case Title: Mrs. Usha Eswar Versus Rajeshwari Menon The Bombay High Court has held that reassessment can’t be initiated on the grounds of a subsequent contradictory ruling by the Authority of Advance Ruling (AAR). Gauhati High Court Output Tax Was Paid Using ITC, Railway Can’t Deny GST Reimbursement On Price Variation: Gauhati High Court Case Title: HCC-CPL (JV) Versus Union Of India The Gauhati High Court had held that railways cannot deny GST reimbursement on account of price variation merely on the grounds that the output tax was paid through an electronic credit ledger using the Input Tax Credit (ITC). Jammu & Kashmir High Court J&K Roads Development Agency Is Exempted From TDS Deduction On TD Account Interest: Jammu & Kashmir High Court Case Title: The Commissioner of Income Tax v/s The Jammu and Kashmir Bank Ltd. The Jammu & Kashmir High Court has held that the J&K State Rural Roads Development Agency (JKSRRDA) is exempt from TDS deduction on interest income accrued on Term Deposit Accounts. Gujarat High Court Excess Claim Of Depreciation By Axis Bank, Voluntary Surrendered, No Case For Penalty: Gujarat High Court Case Title: The Principal Commissioner Of Income Tax 1, Ahmedabad Versus Axis Bank Ltd. The Gujarat High Court has held that the department has failed to establish that there was concealment of particulars of the income of the assessee, Axis Bank. The department has also failed to establish that the assessee furnished inaccurate particulars of its income. Rajasthan High Court Welding Electrodes Used For Repairing Plant & Machinery Are Capital Goods: Rajasthan High Court Allows CENVAT Credit To Hindustan Zinc Case Title: Hindustan Zinc Ltd. Versus C.C.E. The Rajasthan High Court has granted CENVAT Credit to Hindustan Zinc and held that welding electrodes used for repairing plants and machinery are capital goods and inputs. Jharkhand High Court Jharkhand High Court Rejects ESL Steel’s ITC Claim Prior To The Approval Of The Resolution Plan By NCLT Case Title: M/s ESL Steel Limited Versus Principal Commissioner The Jharkhand High Court rejected ESL Steel’s Input Tax Credit (ITC) claim prior to the approval of the resolution plan by the National Company Law Tribunal (NCLT). Calcutta High Court No Evidence Of Supplier Of Tea Involved In Smuggling Poppy Seeds: Calcutta High Court Releases Vehicle And Tea Case Title: Radha Tea Merchant versus Senior Joint...

Tax Cases Weekly Round-Up: 16 July To 22 July, 2023

Mariya Paliwala

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