Tax Weekly Round-Up: April 21 - April 27, 2025

HIGH COURTSBombay HCAmalgamated Company Can Adjust Written Down Assets Of Constituent Companies & Claim Depreciation Without Central Govt Approval: Bombay HCCase Title: Technova Imaging Systems Limited v. Deputy Commissioner of Income TaxCase Number: INCOME TAX APPEAL NO. 405 OF 2003The Bombay High Court stated that amalgamated company can adjust written down of assets of amalgamating companies and claim depreciation without central government's approval. The Division Bench of Chief Justice Alok Aradhe and Justice M.S. Karnik stated,“The Tribunal was not justified in law in holding that in view of insertion of Section 72A in the Income Tax Act, 1961, the assessee (being the amalgamated company) not having obtained approval of the Central Government was not entitled to adjust the written down value of the assets of the amalgamating companies on the basis of depreciation actually allowed to them and to claim depreciation on such adjusted written down value of the assets of the amalgamating companies.”Delhi HCS.107(6) Of CGST Act Does Not Grant Discretion To Court For Waiving Pre-Deposit At Time Of Filing Appeal: Delhi High CourtCase title: M/S Impressive Data Services Private Limited v. Commissioner (Appeals-I), Central Tax Gst, DelhiCase no.: W.P.(C) 4662/2025The Delhi High Court has made it clear that it has no discretion to allow a prayer seeking waiver of pre-deposit condition prescribed under Section 107(6) of the Central Goods and Services Tax Act, 2017 for preferring an appeal under the statute. In terms of Section 107(6), insofar as the admitted tax, interest or penalty is concerned, the entire amount would have to be deposited. In so far as the disputed amount is concerned, 10% of the tax would have to be deposited as a pre-deposit along with the appeal.The division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed that Section 107(6) “ does not give discretion for waiver of the pre-deposit.”S.13 Income Tax Act | Charitable Trust's Status Not Affected For Making Reasonable Payments On Services Rendered By Related Party: Delhi HCCase title: Commissioner Of Income Tax Exemption Delhi v. IILM FoundationCase no.: ITA 179/2023 and batchThe Delhi High Court has held that a Charitable Trust's status cannot be taken away citing violation of Section 13 of the Income Tax Act, 1961 merely because it made reasonable payment for services rendered by a related party.Ordinarily, Charitable Trusts are not allowed to make payments for the benefit of 'prohibited parties'. The division bench of Justices Vibhu Bakhru and Tejas Karia however ruled that if such payment is reasonable, in exchange for the services offered by such a prohibited person, the exemption can be claimed.Delhi HC Sets Aside ₹12 Crore GST Demand On Exide Industries But Imposes ₹1 Lakh Cost For Laxity In Responding To Hearing NoticesCase title: Exide Industries Ltd. v. Assistant Commissioner, CGST & Ors.Case no.: W.P.(C) 4822/2025The Delhi High Court has set aside a GST demand of over ₹12 crores raised on storage battery manufacturer Exide Industries, for wrongful availment of Input Tax Credit.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta however imposed a cost of ₹1 lakh on the Indian multinational for “laxity” in responding to the repeated hearing notices issued by the Department.Whether Roof-Mounted Air Conditioners For Trains Attract 18% GST Or 28% GST? Delhi High Court To DecideCase title: Ms Stesalit Limited & Anr v. Union Of India & Ors.Case no.: W.P.(C) 3138/2025The Delhi High Court will soon decide the GST rate applicable to roof-mounted air conditioners of specific designs manufactured for the railways. A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta are seized with a petition filed by railways and aerospace technology company StesaLIT Limited, challenging a Circular issued by the Union Finance Ministry in 2024, stipulating that above said AC units shall be classified under HSN 8415 (which attracts 28% GST) and not HSN 8607 (which attracts 18% GST).GST Demand Of Over ₹10 Crores Raised Without Considering Assessee's Stand: Delhi High Court Orders Fresh AdjudicationCase title: M/S Perfetti Van Melle India Pvt Ltd Additional Commissioner (Adjn.) v. CGST Delhi North & OrsCase no.: W.P.(C) 2178/2025The Delhi High Court has asked the Adjudicating Authority under Central Goods and Service Tax Act 2017 to undertake fresh adjudication of the show cause notice issued to an assessee, raising demand of more than ₹10 crores.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta did so after noting that such a “substantial” demand was made without even considering the assessee's reply.Assessee's Business Cannot Be Prejudiced By Complete Attachment Of Bank Accounts Pending Adjudication By GST Authority: Delhi HCCase title: M/S Brijbihari Concast Pvt. Ltd. (Through Its Director Sh. Rajeev Agarwal) v. Directorate General Of Goods And Services Tax Intelligence Meerurt Zonal ...

Tax Weekly Round-Up: April 21 - April 27, 2025

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Tax Weekly Round-Up: April 21 - April 27, 2025

Kapil Dhyani

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INR 1099+GST

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