Tax Cases Weekly Round-Up: 23 July To 29 July, 2023

Supreme Court Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court Case Title: Commissioner of Service Tax-IV vs Prime Focus Ltd. Citation : 2023 LiveLaw (SC) 561 The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the 3D conversion services provided by the assessee, including services such as ‘imparting special effects’, ‘post production service’, ‘digital asset management and content service’ and ‘digital restoration service’, will not fall under the ambit of ‘video-tape production’ under Section 65(120) of the Finance Act, 1994. Bombay High Court Capital Gains Can’t Be Added As Unexplained Cash Credit For Sale Of Penny Stock: Bombay High Court Case Title: PCIT Versus Indravadan Jain, HUF The Bombay High Court held that capital gains cannot be added as unexplained cash credit for the sale of penny stock. AO’s Duty To Adjust Brought Forward Unabsorbed Depreciation: Bombay High Court Quashes Reassessment Case Title: Mukand Limited Versus The Union of India The Bombay High Court, while quashing the reassessment, held that the Assessing Officer had in his possession all the primary facts and it was for him to draw a proper inference as to whether the brought forward unabsorbed depreciation should be adjusted against capital gains or profit and gains from business or profession. Allahabad High Court Allahabad High Court Dismisses Challenge To Appointment Of Commissioners Of Income-Tax (Appeals) Case Title: Shweta Punj vs. Union of India The Allahabad High Court has held that Sections 116 and 117 of the Income Tax Act, 1961empower the Central Government to appoint Commissioner of Income-Tax (Appeals). Same pay scale would not make provisions of appointment under other statues applicable to the appointment of authorities under the Act of 1961. GST | Show Cause Notice Must Contain Foundation Of Case On Which Action Is Necessitated: Allahabad High Court Case Title: M/S Abhay Traders v. Commissioner Commercial Tax U.P. Lucknow And Another The Allahabad High Court has held that show cause notice must contain the foundation of the case based on which action is being necessitated. In case, the show cause notice is sufficient, assessee has remedy of filing reply/objections before the concerned authorities. Karnataka High Court Vodafone Idea Not Liable To Deduct TDS On Inter-Connectivity Usage & Bandwidth Charges: Karnataka High Court Case Title: M/S. Vodafone Idea Limited Versus Deputy Director Of Income Tax The Karnataka High Court has held that the assessee, Vodafone Idea, is not liable to deduct TDS on interconnectivity usage and bandwidth charges. Patna High Court Revenue Needs To Be Consistent, Can’t Accept Proposition In One Case And Challenge In Another: Patna High Court Case Title: Income Tax Officer vs. Indian Oil Corporation Ltd. The Patna High Court has upheld the principle of consistency in taxation matters, asserting that the Revenue cannot challenge a declaration of law accepted in one case while challenging its correctness in another case without just cause. Andhra Pradesh High Court Acceptance GSTR-3B Returns With Late Fee Will Not Condone Delay In Claiming ITC: Andhra Pradesh High Court Case Title: Thirumalakonda Plywoods Versus The Assistant Commissioner State Tax The Andhra Pradesh High Court has held that mere acceptance of Form GSTR-3B returns with a late fee will not exonerate the delay in claiming the Input Tax Credit (ITC). Meghalaya High Court Excise Act | Meghalaya High Court Upholds Order Granting Interest To Assessee On Refund Of Deposit Made 'Under Protest' During Investigation Case Title: The Principal Commissioner of Central vs. M/s Green Valliey Goods and Service Tax Industries Pvt Ltd The Meghalaya High Court on Wednesday upheld the order passed by the Customs Excise and Service Tax Appellate Tribunal (CESTAT) granting interest on the delayed refund of a deposit made by the assessee under protest, during investigation for allegedly claiming excess cenvat credit. ITAT ITAT Upholds Addition On Account Of Unexplained Cash Deposit Made During Demonetisation Case Title: Shri Karthick Natarajan Versus DCIT The Chennai Bench of the Income Tax Appellate Tribunal (ITAT), while rejecting the plea of the assessee for cash received in marriage, upheld the addition on account of an unexplained cash deposit made during demonetisation. No specific ICDS, ITAT Disallows Deduction On Marketing & Sales Expenses To Real Estate Developer Case Title: Bengal Peerless Housing Development Company Limited Versus Deputy Commissioner of Income Tax The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the deduction of marketing and sales expenses accumulated in...

Tax Cases Weekly Round-Up: 23 July To 29 July, 2023

Mariya Paliwala

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