Search Year Must Be Included While Computing 10-Year Block For Reassessment: Gujarat High Court

The Gujarat High Court on 9 March, held that while computing the extended ten-year block period for reassessment in search cases, the assessment year relevant to the previous year in which the search is conducted (search assessment year) must be included in the computation. The Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi quashed the notice issued to Dilipbhai Prabhudas Patel (petitioner) under Section 148 of the Income Tax Act. The Bench held: "The statutory...

Gujarat High Court Upholds DRI Seizure Of Imported Industrial Oil, Says Product Most Akin To Restricted Diesel Fuel

The Gujarat High Court has upheld the seizure of imported consignments declared as “industrial oil," holding that the product was most akin to Automotive Diesel Fuel (ADF) / High Flash High Speed Diesel (HFHSD), which are restricted commodities importable only through State Trading Enterprises under the import policy.The Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi dismissed multiple writ petitions filed by importers, including Deep International (petitioner),...

Transfer Of Self-Generated Trademark Before April 2002 Not Taxable As Capital Gains: Gujarat High Court

The Gujarat High Court has held that money received from transferring a self-generated trademark before 2002 cannot be taxed as capital gains, as the law allowing such taxation came into force only later. The Court noted that Section 55(2) of the Income Tax Act was amended with effect from April 1, 2002, to allow taxation of transfers of trademarks by treating their cost of acquisition as nil, and the amendment cannot apply to earlier transactions.A Division Bench comprising Justice A.S....

Rebate Cannot Be Denied On Procedural Lapses If Export Duty Payments Are Undisputed: Gujarat High Court

The Gujarat High Court on 20 February, held that a rebate of central excise duty on exported goods cannot be denied merely due to procedural lapses, such as non-submission of original ARE-1 documents, when the fact of export and payment of duty is otherwise established through supporting records. A Division Bench of Justice A. S. Supehia and Justice Pranav Trivedi allowed the writ petition filed by Ashland India Private Limited, setting aside orders that had rejected the company's rebate claim...

CIT Cannot Reject Delay Condonation Plea On Grounds Beyond Scope of Application: Gujarat High Court

The Gujarat High Court on 9 March held that while deciding an application for condonation of delay under Section 119(2)(b) of the Income Tax Act, the Authority cannot examine issues beyond the scope of the delay condonation request. Section 119(2)(b) empowers the Central Board of Direct Taxes (CBDT) to authorise Income Tax authorities to admit delayed refund or loss carry-forward claims on showing “genuine hardship.” A Division Bench of Justice A. S. Supehia and Justice Pranav Trivedi held...

Gujarat High Court Sets Aside Transfer Of Income Tax Case From Ahmedabad To Rajkot Without Hearing Taxpayer

The Gujarat High Court has set aside an order transferring an assessee's income-tax reassessment case from Ahmedabad to Rajkot after finding that the transfer was made without granting the taxpayer an opportunity of hearing as required under the Income Tax Act. The division bench of Justice A. S. Supehia and Justice Pranav Trivedi held that in the present case the transfer of jurisdiction under Section 127(2) of the Income Tax Act could not be sustained since it had been effected without...

Input Tax Credit Transfer On Company Amalgamation Not Restricted By State: Gujarat High Court

The Gujarat High Court on 5 March held that input tax credit (ITC) cannot be denied on the amalgamation of companies merely because the transferor and transferee entities are registered in different States. A Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi heard a petition filed by Emerson Process Management (India) Pvt. Ltd. challenging the refusal of GST authorities to allow the transfer of ITC following the amalgamation of Pentair Valves and Controls India Pvt....

AO Cannot Reopen Assessment On Same Material To Cure Lapse In Original Proceedings: Gujarat High Court

The Gujarat High Court on 24 February ruled that the Revenue cannot initiate reassessment proceedings under Section 148 of the Income Tax Act based on the same material that was already scrutinised in the original proceedings, which later lapsed due to the Assessing Officer's failure to meet the statutory deadlines. The Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi held that reopening an assessment in such circumstances is an impermissible attempt to “camouflage”...

Gujarat High Court Grants Bail To Lawyer Accused Of Filing GST Return For 'Non-Existent, Fake Entities'

The Gujarat High Court recently granted bail to an advocate who was arrested for allegedly filing GST returns for firms that are claimed to be non-existent, fake entities.Sanghani has been booked under Sections 132 (1)(b) (whoever issues any invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax), and 132 (1) (c) (whoever avails input tax...

DTVSV Scheme 2024 Inapplicable To Reassessments Arising From Search Proceedings: Gujarat High Court

The Gujarat High Court on 18 February held that taxpayers whose reassessment proceedings arise from incriminating material discovered during search operations under Sections 132 or 132A of the Income Tax Act are not eligible to avail the benefit of the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi dismissed a batch of writ petitions led by Radha Madhav Eco-Industrial Park, which challenged the rejection of their...

Gujarat High Court Sets Aside ₹30,000 Customs Penalty On Zaveri & Co. For Wrong Regulatory Action

The Gujarat High Court on 24 February set aside a penalty imposed on Zaveri and Co. Pvt. Ltd. for alleged violations of warehousing regulations, holding that the customs authorities had initiated proceedings under the wrong regulatory framework and failed to provide the audit report that formed the basis of the action. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi passed the ruling while allowing a writ petition filed by the company challenging the penalty order...

Gujarat High Court Quashes Reassessment On Income From Property Sale After Fraudulent Deeds Cancelled

The Gujarat High Court has recently quashed reassessment proceedings initiated under Section 148A of the Income Tax Act agaisnt an individual taxpayer after noting that the Assessing Officer failed to consider that two sale deeds had been cancelled on account of fraud and that the sale consideration had been reversed. Section 148A governs the procedure to be followed before reopening an assessment. A bench of Justice A.S. Supehia and Justice Pranav Trivedi recorded that the sale deeds dated...