Tax Cases Weekly Round-Up: 25 June To 1 July, 2023

Delhi High CourtAssessment Order Cannot Be Directed Against Only One Of The Legal Heirs Of Deceased Assessee: Delhi High Court Sets Aside Rs. 10 Crores DemandCase Title: Darpan Kohli Versus Assistant Commissioner Of Income TaxThe Delhi High Court held that an assessment order cannot be directed against only one of the legal heirs of a deceased assessee.AO Unclear whether The Notice Is Issued To An Individual Or A Corporate Entity: Delhi High Court Quashes Reassessment NoticeCase Title: Home Credit India B.V. Versus ACITThe Delhi High Court has quashed the reassessment notice for non-application of mind by the department.Bombay High CourtAO Can Make Reference To TPO Only After Selecting Case For Scrutiny Assessment: Bombay High CourtCase Title: Pr. Commissioner of Income Tax Versus Kimberly Clark Lever Private LimitedThe Bombay High Court has held that the Assessing Officer (AO) can make reference to the Transfer Pricing Officer (TPO) under Section 92CA of the Income Tax Act only after selecting the case for scrutiny assessment.Capital Gain To Be Taxed In Singapore: Bombay High Court Allows Capital Gains Exemption To FIICase Title: CIT Versus M/s Citicorp Investment BankThe Bombay High Court has granted the capital gains exemption to Foreign Institutional Investors (FII).CBDT Circular Allowing Benefit Only To Cases Where Appeals Are ‘Dismissed In Limine’ Is Arbitrary: Bombay High CourtCase Title: Oerlikon Balzers Coating India Versus Union of IndiaThe Bombay High Court has quashed FAQ 61 of the circular 21/2020 dated December 4, 2020, issued by the CBDT to the extent that it restricts appeals to those dismissed in limine’ on the ground that it was not only adverse to the interest of the assessee but also contrary to the object and reasons of the Direct Tax Vivad Se Viswas Act, 2020 (DTVSV-A).Karnataka High CourtKarnataka High Court Allows Tax Exemption On Voluntary Donation Received By Educational InstitutionCase Title: Pr Commissioner Of Income-1 Tax (Exemptions) Versus M/S Rashtreeya Sikshana Samithi TrustThe Karnataka High Court has allowed a tax exemption on voluntary donations received by educational institutions.Gujarat High CourtDifficult To Submit Complete Reply To The SCN In Less Than 12 Hours: Gujarat High Court Quashes Assessment OrderCase Title: Dineshkumar Chhaganbhai Nandani Versus Income Tax OfficerThe Gujarat High Court quashed an assessment order made by the income tax authorities without granting the petitioner an opportunity to be heard. The court found that the show cause notice cum draft assessment order was issued with an extremely short deadline, leaving the petitioner less than 12 hours to respond.Sales-Tax Exemption Certificate Has Overriding Effect Over VAT Notification: Karnataka High CourtCase Title: State of Karnataka Versus Aishwarya FortThe Karnataka High Court has held that the sales tax exemption certificate is valid for 7 years and could not have been rescinded before the period of eligibility expired as it is a sovereign assurance.Jammu & Kashmir And Ladakh High Court Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn ShawlsCase Title: M/s Ali Shah through Arif Ahmad Shah Versus Union of India and othersCitation: 2023 LiveLaw (JKL) 166The Jammu & Kashmir And Ladakh High Court has dismissed a writ petition challenging a show cause notice regarding the export of banned yarn shawls.ITATIncome From The Sale Of RECs Is Capital In Nature, Is Not Subject To Taxation: ITATCase Title: M/s Satia Industries Ltd. Versus NFACThe Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income from the sale of Renewable Energy Certificates (RECs) is classified as capital in nature and is not subject to taxation.CESTATPPF Funds Management Service Prior To 10.9.2004 Not Liable To Pay Service Tax: CESTATCase Title: M/s State Bank of India, Mumbai Versus Commissioner of Service TaxThe Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on the operation of PPF accounts after September 10, 2004.Salary Is Out Of The Purview Of Service Tax: CESTAT Quashes Service Tax Demand Against KelloggCase Title: M/s. Kellogg India Pvt. Ltd. Versus Commissioner of CGST & CE, BelapurThe Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against Kellogg India and held that salary is out of the purview of service tax.Charging Higher Fees By Charitable Institution Will Not Make It Commercial; CESTAT Allows Refund To Adani Institute Of Medical SciencesCase Title: Gujarat Adani Institute Of Medical Sciences Versus C.C.E. & S.T.-RajkotThe Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the refund to Gujarat Adani Institute Of Medical Sciences and held that merely by charging a higher fee, an institution cannot be treated as a commercial institute.AARFull Credit...

Tax Cases Weekly Round-Up: 25 June To 1 July, 2023

Mariya Paliwala

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