Tax Weekly Round-Up: January 13 - January 19, 2025

SUPREME COURT'Will Pull You Up' : Supreme Court Asks GST Department To Rectify Issues Over Fake Invoices, Asks How Genuine Purchasers Are LiableThe Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious bills to evade crediting the GST to the department.The Court orally wondered how could the purchaser be held liable for the incorrect GST registration of the suppliers when they have genuinely made purchases and paid the money, including the GST amount.HIGH COURTSAllahabad HC[Income Tax] Allahabad HC To Examine Whether Proceedings U/S 148A(b) Initiated Prior To 01.09.2024 Would Be Saved After Enforcement Of The Finance (No.2) Act, 2024Case Title: Ravish Rastogi v. Union Of India Thru. Secy. Ministry Of Finance New Delhi And 3 OthersCase no.: WRIT TAX No. - 359 of 2024The Lucknow Bench of the Allahabad High Court has sought state response on the question of maintainability of proceedings under Section 148A(b) of the Income Tax Act initiated prior to 01.09.2024, if at all, would be saved after enforcement of the Finance (No.2) Act, 2024 w.e.f. 01.09.2024 especially in view of sub-Section- (4) of Section 152 of the Income Tax Act, 1961 which has been inserted by the said Finance (No.2) Act, 2024.Andhra Pradesh HCSupply Of Solar Generating Power Station Is A Composite Supply, Would Not Amount To Works Contract; Attracts 5% GST: Andhra Pradesh High CourtCase Title: Sterling And Wilson Private Limited v. The Joint Commissioner and OthersCase Number: WRIT PETITION NO: 20096/2020The Andhra Pradesh High Court stated that the supply of solar generating power station is a composite supply and it would not amount to a works contract. Also, it is a moveable property and attracted 5% GST. The Division Bench of Justices R Raghunandan Rao and Maheswara Rao Kuncheam observed that “a 'works contract' is also a composite supply. However, there could be a 'composite supply', which does not fall within the ambit of 'works contract'….. The distinction between 'works contract' and a 'composite supply' would be whether the end product handed over to the contractee, is moveable or immoveable property.”Calcutta HCService Tax Liability Cannot Be Fastened On Implementation Of Govt Projects: Calcutta High CourtCase title: Commissioner Of Service Tax Kolkata Vs M/S Electrosteel Castings LimitedCase no.: CEXA/56/2024The Calcutta High Court has held that construction of canals/ pipelines/ conduits to support irrigation, water supply or for sewerage disposal, when provided to the Government, cannot be exigible to service tax. A division bench of Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya relied on two Circulars issued by the Central Board of Indirect Taxes and Customs to observe, “Even in case of works contract, if the nature of the activities is such that they are excluded from the purview of commercial or industrial construction services, or erection, commissioning or installation services, then they would generally remain excluded from this taxable service as well. These circulars are sufficient indication to hold that when the Government projects are being implemented, the service tax liability cannot be fastened.”Chhattisgarh HC[Municipal Corporation Act] Writ Petition Against District Judge's Order Upholding Imposition Of Property Tax Not Maintainable: Chhattisgarh HCCase title: Deepak Agrawal & Ors. v. Property Tax Assessment Officer & Ors.Case no.: WPT No. 159 of 2024The Chhattisgarh High Court has held that it cannot exercise writ jurisdiction against an order by the District Judge, which is the Appellate Authority under the Municipal Corporation Act 1956, upholding imposition of property tax.In doing so, single judge Justice Narendra Kumar Vyas cited Section 149 of the Act which prescribes that the Appellate Authority is amenable to revisional jurisdiction of the High Court.Delhi HCIf Assessee Produces Accounts, AO Must Be Satisfied That Accommodation Entries Exist Before Proceeding U/S 148 Of Income Tax Act: Delhi HCCase title: Sonansh Creations Pvt. Ltd. v. Assistant Commissioner Of Income Tax And Anr.Case no.: W.P.(C) No.17570/2022The Delhi High Court has held that an Assessing Officer is required to be satisfied that accommodation entries as alleged in show cause notice under Section 148A(b) of the Income Tax Act 1961 exist, particularly where the assessee produces its accounts. In doing so, a division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma heavily relied on its recent ruling in Sonansh Creations Pvt Ltd. v. Assistant Commissioner Of Income Tax And Anr. where it was held that to initiate reassessment proceedings under the Act, the AO must conduct an enquiry with respect to the information that suggests escapement of income, to ascertain its correctness.Absence Of Formal Communication U/S 148A Of Income Tax Act Not Fatal When Opportunity To ...

Tax Weekly Round-Up: January 13 - January 19, 2025

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