Tax Cases Weekly Round-Up: 25 December to 31 December 2022

Delhi High CourtCompensation On Cancellation Of Leasehold Rights Over A Plot, Capital Receipt: Delhi High CourtCase Title: PCIT Versus Pawa Infrastructure (P) Ltd.Citation: 2022 LiveLaw (Del) 1215The Delhi High Court has held that the leasehold rights held by the assessee in the plot were a capital asset and that the compensation received by the assessee from the Government of Goa on the cancellation of the plot was a capital receipt and not a revenue receipt.The division bench of Justice...

ADD Not Leviable In Period Between Expiry Of Provisional ADD Notification And Final Notification: Gujarat High Court

The Gujarat High Court has reiterated that imports made during the intervening period between the expiry of the Notification imposing Provisional Anti-Dumping Duty (ADD) and the Notification levying final Anti-Dumping Duty, would not attract Anti-Dumping Duty.The Court dismissed the contention made by the revenue department that since the final Anti-Dumping Duty Notification was issued with effect from the same date as the Provisional Duty Notification, levying duty at the same rate as specified...

Shipping Industry – A Complex Saga

Taxability of shipping industry has always been tricky and complex saga comparing to other service industry. To understand the tax implication of Shipping Industry, it is pertinent to understand the revenue model of shipping industry.It is often seen that exporters have approached Freight Forwarding Agency or Shipping Agency to move their goods either from their place of business or from Port of lading to the Port of Destination located outside the geographical location of India, in short in the...

20 Important Supreme Court Judgments on Income Tax with Parallel Citations

Section 45(4) of Income Tax Act applicable to cases of subsisting partners of a partnership transferring the assets in favour of a retiring partner. Commissioner of Income Tax v. Mansukh Dyeing and Printing Mills, 2022 LiveLaw (SC) 991Section 260A IT Act - Appeal only lies before high court within whose jurisdiction the assessing officer is situated. Commissioner of Income Tax - I v. Balak Capital Pvt. Ltd; 2022 LiveLaw (SC) 982Sec.194H Income Tax Act attracted for 'supplementary commission'...

Marine Paint As Part Of Vessel? Bombay High Court Confirms AAAR Decision

The Bombay High Court has dismissed the writ petition challenging the advance ruling given by the Maharashtra Appellate Authority for Advance Ruling (AAR).The division bench of Justice Nitin Jamdar and Justice Gauri Godse has observed that the authority and the appellate authority followed the entire procedure and that full opportunity was given to the petitioner. There was no evidence of a violation of natural justice principles due to a lack of opportunity to be heard.All points put forth by...

CA Certificate Can Be Used For Clearing Differences In ITC As Per GSTR-3B And GSTR-2A For FY 2017-18, 2018-19: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification to deal with the difference in Input Tax Credit (ITC) availed in Form GSTR-3B as compared to that detailed in Form GSTR-2A for FY 2017–18 and FY 2018–19.The proper officer will ask the registered person to present a certificate for the concerned supplier from the CA or the cost accountant if the difference between the ITC claimed in Form GSTR-3B and the ITC available in Form GSTR-2A exceeds Rs 5 lakh (CMA). The CA...

Gujarat High Court Quashes Assessment Order Of Income Tax Worth Rs. 101 Crores For Not Following Natural Justice

The Gujarat High Court has quashed the assessment order of income tax worth Rs. 101 crores on the grounds of a violation of the principle of natural justice by the National Faceless Assessment Center.The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that the respondent/department will be at liberty to proceed with assessment under the provisions of Section 144B of the Income Tax Act, 1961, as permissible under the law, after issuance of a show cause notice and...

ITAT Allows Expenses Incurred Towards Transfer Of Shares

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the expenses incurred towards the transfer of shares.The two-member bench of Yogesh Kumar U.S. (Judicial Member) and B.R.R. Kumar (Accountant Member) has observed that the expenses incurred by the assessee are allowable transfer expenses as per Section 48 of the Income Tax Act, and both the lower authorities have committed an error in disallowing the expenses incurred by the assessee.The assessee filed the return for the...

Madras High Court Upholds State's Decision To Increase Property Tax In Chennai, Coimbatore Municipal Areas

The Madras High Court recently upheld the validity of the Government Order issued by Tamil Nadu's Municipal Administration and Water Supply Department and the consequential resolutions of Greater Chennai Corporation and Coimbatore Corporation by which the property taxes in Chennai and Coimbatore were revised and increased.The court however emphasised that this revision in tax rates could not be implemented retrospectively and rejected a revision notice to such extent.Justice Anita Sumanth passed...

CBIC Issues Various Clarificatory Circulars On GST; Prescribes Procedure For Handling ITC Mismatch In FORM GSTR-3B and FORM GSTR-2A

The Central Board of Indirect Taxes and Customs (CBIC)has recently issued a series of circulars clarifying various GST relatedissues.The CBIC, in its circular dated 27.12.2022, noted thatduringthe initial period of implementation of GST, i.e., the financial years 2017-18and 2018-19, many suppliers had failed to furnish the correct details in FORMGSTR-1, which led to certain deficiencies or discrepancies in FORM GSTR-2A.However, it observed that the concerned recipients in their FORM GSTR-3B,...

CBIC notifies Central Goods And Services Tax (Fifth Amendment) Rules, 2022 In Accordance With 48th GST Council Meeting: Know 5 Significant Changes

The Central Board of Indirect Taxes and Customs (CBIC) has notified the Central Goods and Services Tax (Fifth Amendment) Rules, 2022, on the recommendations of the 48th GST Council Meeting.The Central Goods and Services Tax (Fifth Amendment) Rules, 2022 shall be effective on 26 December 2022.1. PAN to be verified through separate one-time passwordsThe Permanent Account Number shall be validated online by the common portal from the database maintained by the Central Board of Direct Taxes and...

No Service Tax Is Payable On Commission Received In Convertible Foreign Exchange: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is demandable when the commission received is in convertible foreign exchange.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the commission agent service provided to a foreign-based entity for promoting or marketing their goods in India constitutes an export of services, given that the Indian agent's activity includes providing...