Tax Cases Weekly Round-Up: 19 March To 25 March 2023

Supreme Court Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc. Citation: 2023 LiveLaw (SC) 223 The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what is required along with the affixation is a mandate of law that directs the seller to affix such MRP. Delhi High Court Fraudulent GSTN Registration: Delhi High Court Directs Petitioner To Reveal Details Of His Friend Who Obtained It Case Title: Anil Kumar Versus The Gst Commissioner, Cgst, And Central Excise And Ors. Citation: 2023 LiveLaw (Del) 253 The Delhi High Court has ordered the petitioner to reveal the name of the friend who fraudulently obtained a GSTIN using his credentials at the department. The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has directed the petitioner to disclose the identity of his friend, to whom he claims to have handed over his identity documents, to the police authorities as well as to the state GST authorities. The petitioner shall fully cooperate with the concerned authorities and provide them with all the information as required. ITO Can’t By-Pass SC Decision In ‘Engineering Analysis’ In The Name Of A Review Petition Filed By Dept: Delhi High Court Case Title: Milestone Systems A/S vs. Deputy Commissioner of Income Tax Citation: 2023 LiveLaw (Del) 254 The Delhi High Court has set aside the Income Tax Department’s order rejecting the assessee’s application seeking a certificate for “NIL” rate of withholding tax under Section 197 of the Income Tax Act, 1961. Allegations Of Availment Of Fake Credit Cannot Be A Ground For Rejecting The Refund Applications Unless It Is Established: Delhi High Court Case Title: M/S Balaji Exim Versus Commissioner, CGST The Delhi High Court has held that allegations of availing of fake credit cannot be a ground for rejecting the refund applications unless it is established that the petitioner has not received the goods or paid for them. Madras High Court Madras High Court Quashes The Criminal Proceedings Against Guarantor Of Assessee, For Assessee’s Failure To Pay Tax; States It's Only Contractual Liability And Not Criminal Case Title: Santhosh vs. The Commercial Tax Officer & Anr. The Madras High Court has quashed criminal proceedings against the guarantor of the assessee for failing to pay the tax dues of the latter to the Commercial Tax Department. The Commercial Tax Officer (CTO) filed a private complaint before the Judicial Magistrate against the assessee as well as the petitioner, who stood as a guarantor with respect to the tax arrears of the business done by the assessee. Karnataka High Court Karnataka High Court Permitted Superintendent of Central Tax To Pass Orders For Revoking Cancellation Of GST Registration On Filing Returns Case Title: M/s S P Metals Versus Assistant Commissioner Of Commercial Taxes The Karnataka High Court has permitted the Superintendent of Central Tax to pass suitable orders for revocation of the cancellation of the GST registration, if the petitioner/assessee files returns. The single bench of Justice B. M. Shyam Prasad has observed that the cancellation of GST registration was without due opportunity and was arbitrary. Tripura High Court Arbitrary Orders Driving Taxpayer To File Appeal By Depositing 50% Of The Disputed Taxes: Tripura High Court Imposes Cost Of Rs. 25,000 On The Taxes Recoverable From His Salary Case Title: Megha Technical and Engineer Private Limited Versus The State of Tripura The Tripura High Court has imposed a cost of Rs. 25,000/- on the Commissioner of Taxes to be recovered from his salary and to be paid to the Tripura High Court Bar Association for passing an order in an arbitrary manner. Calcutta High Court Calcutta High Court Quashes Income Tax Notices Issued In The Name Of Non-Existing Company Case Title: S. K. Finserve Private Limited Vs Assistant Commissioner of Income Tax The Calcutta High Court has quashed the income tax notice issued in the name of a non-existing company, in spite of the department having notice and knowledge of non-existence of the company. ITAT ITAT Bangalore Holds Expenditure Incurred By Flipkart Towards ESOP Is Eligible For Deduction Under S. 37 Of ITAT Case Title: Flipkart India Pvt Ltd vs. Assistant Commissioner of Income Tax The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal of Flipkart India against disallowance of over Rs.15.5 Crore of expenses claimed by it under Section 37 of the Income Tax Act, 1961, towards Employee Stock Ownership Plan (ESOP). Failure Of Kidney A Reasonable Cause Which Prevented Assessee To Supply The Documents And Replies To The AO: ITAT ...

Tax Cases Weekly Round-Up: 19 March To 25 March 2023

Mariya Paliwala

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