Tax Cases Weekly Round-Up: 12 November To 18 November, 2023

Supreme Court UP VAT Act | Assessee Entitled To Claim Full Input Tax Credit On Exempted Goods Produced As By-Products Or Waste Products During Manufacturing Of Taxable Goods: Supreme Court Case details: M/S Modi Naturals Ltd v The Commissioner of Commercial Tax UP Case No.: 2023 LiveLaw (SC) 976 The Supreme Court while relying on Explanation (iii) to Section 13 of Uttar Pradesh Value Added Tax Act, 2008 (“UP VAT Act”), has held that if during the manufacture of any taxable good any tax exempted goods are produced as by-product/waste product, then it shall be deemed that the goods purchased from within the State for such manufacturing have been used in manufacture of taxable goods alone. Thus, the Assessee would be entitled to claim full benefit of Input Tax Credit (“ITC”) in respect of taxable goods purchased from within the State. UP VAT Act | Definition Of “Goods” Under Sec. 2(m) And Sec. 13(1)(f) Includes Taxable As Well As Exempted Goods: Supreme Court Case details: M/S Modi Naturals Ltd v The Commissioner of Commercial Tax Up The Supreme Court has held that the definition of “Goods” under Section 2(m) of Uttar Pradesh Value Added Tax Act, 2008 (“UP VAT Act”) includes both taxable as well as exempted goods. Similarly, the word “goods” under Section 13(1)(f) of the UP VAT Act cannot be said to be qualified by the word “taxable”. Delhi High Court Concealment Of Income Above Rs.50 Lakhs, Extended Period Of Limitation Would Apply: Delhi High Court Case Title: Ganesh Dass Khanna Versus ITO The Delhi High Court has held that an extended period of 10 years would apply in serious tax evasion cases where there was evidence of concealment of income above Rs. 50 lakhs. Wrongful Application Of Foreign Contribution By Trust Not In Accordance With Trust’s Objective: Delhi High Court Upholds Reassessment Case Title: Enviornics Trust Versus The Dept. Commissioner Of Income Tax The Delhi High Court has upheld the reassessment proceedings against a trust for wrongful application of foreign contribution, which was against the objective of the trust. TRU Can’t Issue Clarification Regarding Classification Of Polypropylene Woven And Non-Woven Bags Under Customs Tariff Act, 1975: Delhi High Court Case Title: Association Of Technical Textiles Manufacturers And Processors & Anr. Versus UOI The Delhi High Court has held that the Tax Research Unit (TRU) cannot issue clarification regarding the classification of polypropylene woven and non-woven bags under the Customs Tariff Act, 1975. Delhi Gymkhana Club Exigible To Tax Under Delhi Tax On Luxuries Act, 1996: Delhi High Court Case Title: Delhi Gymkhana Club Versus Commissioner (Luxury Tax), New Delhi & Ors. The Delhi High Court has held that Delhi Gymkhana Club is exigible to tax under the Delhi Tax on Luxuries Act, 1996. AO Lacked Tangible Material To Form A Belief That Income, Chargeable To Tax Had Escaped Assessment: Delhi High Court Quashes Reassessment Notice Case Title: Saraswati Petrochem Pvt. Ltd. Versus Income Tax Officer The Delhi High Court has held that AO did not have the tangible material on record that could have persuaded him to form the belief that income, otherwise chargeable to tax, had escaped assessment. Bombay High Court Amount Received In Satisfaction Of The Inheritance Rights Is Not A Taxable Income: Bombay High Court Case Title: Ramona Pinto v. Deputy Commissioner of Income Tax, Income Tax Appeal No. 2610 of 2018 The High Court of Bombay has held that an An amount received in satisfaction of the inheritance rights is not a taxable income. Firm Liable To Pay Tax On Distribution Of Capital Assets On Dissolution And Not Partner: Bombay High Court Case Title: Ramona Pinto Versus Deputy Commissioner of Income Tax The Bombay High Court has held that, as per Section 45(4) of the Income Tax Act, assuming that there was a distribution of capital assets upon dissolution of the firm, it is the firm and not the partner who has to pay the tax. Bombay High Court Quashes Reassessment Proceedings Against Non-Existent Entity Despite Active PAN Case Title: Diversey India Hygiene Private Limited Versus ACIT The Bombay High Court has quashed the reassessment proceedings against non-existent entities despite an active PAN. Bombay High Court Quashes Income Tax Assessments Against Agriculturist And Rickshaw Driver For Improper Sanction Case Title: Chandar Mahadev Naik Versus Income Tax Officer The Bombay High Court has quashed the income tax assessments for the assessment year 2016-2017 against agriculturists and rickshaw drivers for improper sanction. Bombay High Court Direct JAO To Provide Specific Information Relied Upon To Issue The Section 148A(b) Notice Case Title: Ganesh Ramesh Chavan Versus Income Tax Officer The Bombay High Court has directed the Jurisdictional ...

Tax Cases Weekly Round-Up: 12 November To 18 November, 2023

Mariya Paliwala

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