Judicial updates-09th Feb 2022 (Income tax, GST & Corporate Laws)

ITAT Kolkata directs service of notice to Assessee’s Lawyer via email as same could not delivered to Assessee

Massive Infrastructure Pvt. Ltd. Vs ITO (ITAT Kolkata) dated 02/02/2022

Revaluation of Land by firm after conversion of inventory into fixed asset – colourable device?

PCIT Vs Orchid Griha Nirman Pvt. Ltd. (Calcutta High Court) dated 31/01/2022

*Tribunal agreed with CIT(A) that after conversion of inventory into fixed asset the firm revalued the developed land including construction thereon in order to bring it in line with the current market value to justify the business assistance secured by the firm from the banks to extent of nearly Rs. 250 crores. Therefore, on facts the tribunal concluded that the revaluation was not a colourable.
Confirmed by HC.

Failure to issue section 143(2) notice prior to finalising reassessment order makes reassessment proceedings a nullity

ACIT Vs P & R Infraprojects Ltd. (ITAT Delhi) dated 07/01/2022

ITAT deletes Addition of Profits from Suppressed of Sales belonging to Firm of director of Appellant Company

ITO Vs Super Hospitality Services Pvt. Ltd. (ITAT Ahmedabad) dated 31/01/2022

Interest on Investment made to acquire controlling interest allowable

Gujarat Nippon Enterprises Pvt. Ltd. Vs ITO (ITAT Ahmedabad) dated 01/02/2022

ESIC & PF paid before due date of filing income tax return allowable till AY 2020-21

Dr. B. Lal Clinical Laboratory Private Limited Vs ACIT (ITAT Jaipur) dated 20/01/2022

Filing of appeal in criminal court against Civil dispute amounts to abuse of process of Court: SC

Jayahari Vs State of Kerala (Supreme Court of India) dated 25/01/2022

CIT(E) Order passed without hearing Assessee during COVID-19 violates Principal of Natural Justice

Madhavi Raksha Sankalpa Vs CIT (Exemptions) (ITAT Mumbai) dated 28/01/2022

GST Evasion Case: Accused cannot be Detained in Custody Indefinitely- SC

Paresh Nathalal Chauhan Vs State of Gujarat (Supreme Court of India) dated 01/02/2022

The Hon’ble Supreme Court of India in Paresh Nathalal Chauhan v. The State of Gujarat & Anr. [SLP (Crl) No. 009458 – 009459/2021, Criminal Appeal Nos.164-165/2022 dated February 01, 2022] granted bail to a person accused of tax evasion. Held that, assessee cannot be detained for indefinite period of time when the maximum sentence for such offence is 5 years and investigation w.r.t. the same is still pending.

GST Appellate Authority can provisionally release goods & vehicle- HC

A K Enterprise Vs State of Gujarat (Gujarat High Court) dated 03/02/2022

ITC available on GST paid under RCM on hiring of buses for transportation of employees

In re Maanicare System India Private Limited (GST AAR Maharashtra) dated 01/02/2022

Matter pending before Competent Jurisdiction cannot be transferred for mere Temporary Shift In Residence

Silpa Shaji Vs Satheesh K.S. (Kerala High Court) dated 01/02/2022

Bar of Section 69(2) of Indian Partnership Act, 1932 not applicable to Transactions not in the course of business: SC

Shiv Developers Vs Aksharay Developers (Supreme Court) dated 31/01/2022

Judicial updates -21st January 2022

SC in G.T. Girish Vs Y. Subba Raju (D) By LRs judgment dated 18th Jan 2022 held that Subordinate Legislation in the form of Statutory Rules is a ‘law’ u/s 23 of Indian Contract Act

Matter involving large scale State Revenues should be disposed speedily Dalmia Refractories Limited Vs State of Tamil Nadu (Madras High Court) dated 11/01/2022

One Time Settlement (OTS) of Bank Loan is Not a Right of Borrowers held by SC in
matter of Bijnor Urban Cooperative Bank Limited dated 15/12/2021

SEBI impose penalty for dealings in illiquid Stock Options at the BSE In Re Ashok Kumar Sharma HUF (SEBI) -23/12/2021


Rajasthan HC disposes Plea seeking extension of due dates till portal Glitches removed

Tax Bar Association Vs Union of India (Rajasthan High Court) dated 12/01/2022

If AO accepts objections of assessee and does not assess or reassess the income which was the basis of notice than he cannot made additions on other issues

Yashoda Shivappa Nagangoudar Vs ITO (Bombay High Court) dated 05/01/2022

Provisional custom duty paid by Assessee cannot be treated as deposit

Nirma Ltd Vs C.C.-Jamnagar(prev) (CESTAT Ahmedabad) dated 13/01/2022

Bombay HC in Vodafone Idea Ltd. Vs ACIT dated 03/01/2022 held-

Reopening of Assessment not permissible to take another view on same material

For legal updates




Bipul Kumar

Judiciary updates-03rd Dec 2021 (Income tax, GST & Corporate Laws)

Income Tax

Supreme Court dismisses Transfer Petition as withdrawn

 Rajinder Kumar Vs Central Board of Direct Tax & Anr. (Supreme Court of India) dated 15/11/2021

No addition of unaccounted investment if transactions were via Banking Channels

 ITO Vs Vaneet Mittal (ITAT Chandigarh) dated 22/10/2021

Petitioner entitled to avail NIL rate of withholding tax on aircrafts leased to AIL – Delhi HC

Celestial Aviation Trading 64 Limited Vs ITO (Delhi High Court) dated 12/11/2021

No deemed dividend on loan given on interest to Sister Concern for business

TCI Exim Pvt. Ltd. Vs ACIT (ITAT Delhi) dated 02/11/2021


HC directs GST dept to reconsider registration of petitioner as composite dealer instead of regular dealer

Varsha Ritu Vs Union of India (Rajasthan High Court, Jodhpur Bench) dated 08/11/2021

HC Quashed order Cancelling GST Registration without Opportunity of Hearing

 S.S. Traders Vs State of U.P And 3 Others (Allahabad High Court) dated 02/11/2021

IGST Payable on supply of Import services under RCM

 In re GSPC(JPDA)LTD (GST AAR Gujarat) dated 06/09/2021

GST Evasion accused released on regular bail after 2½ years

Manish Vs State of Haryana (Punjab and Haryana High Court) dated 29/10/2021

Corporate Laws

Accident claim benefit available only when accident took place after reviving of policy

Life Insurance Corporation of India Vs Sunita (Supreme Court of India) dated 29/10/2021

HC expunges adverse remarks made by Customs Commissioner against an Advocate

 M. S. Srinivasa Vs Union of India (Karnataka High Court) dated 10/11/2021

Judiciary updates (Income tax, GST & Corporate Laws) -09th Nov 2021

Income Tax

ITAT condone the delay in appeal filing as delay was in e-filing & not on manual filing

Gemini Iron and Steel (P) Ltd. Vs ITO (ITAT Chennai) dated 02/11/2021

TDS not deductible on exempt supplementary rent – Section 10(15A)

InterGlobe Aviation Ltd. Vs JCIT (ITAT Delhi) dated 29/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021


SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

Godrej & Boyce Mfg. Co. Ltd. Vs Union of India and Ors. (Bombay High Court) dated 29/10/2021

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Corporate Laws

Judgment debtor cannot raise objections to executions in installments: SC

Dipali Biswas & Ors. Vs Nirmalendu Mukherjee (Supreme Court of India) dated 05/10/2021

Beneficial scheme cannot run contrary to express terms of provisions

 Union of India Vs Abhiram Verma (Supreme Court of India) dated 30/09/2021


Bipul Kumar

Judiciary updates-27th Oct 2021 (Income tax, GST & Corporate Laws)


SC: Nature of levy cannot be determined with nomenclature ascribed to Tax

Jalkal Vibhag Nagar Nigam dated SC 22 Oct 2021

Opinion under Section 83 of CGST Act should be strictly based upon material facts

Mutharamman & Co. (Madras HC dated 05/10/2021)

Income Tax

Section 12AA registration cannot be denied without examining the activities

ICRW Group Gratuity Trust Vs CIT (Exemption) (ITAT Delhi) dated 21/10/2021

ITAT explains basic conditions for Satisfaction of reimbursement Claim

Rieter Machine Works Limited Vs ACIT (ITAT Pune) dated 21/10/2021

No attribution of profit in absence of permanent establishment

ESPN Star Sports Mauritius Vs DCIT (ITAT Delhi) dated 20/10/2021

HC dismisses writ petition as petitioner is having alternative statutory remedy of appeal

Ankit Gupta Vs National Faceless Assessment Centre (Rajasthan High Court) dated 21/10/2021

Corporate Laws

Sec 138 NI Act: Complaint comes to an end Once Accused & Complainant Enter into a Settlement Agreement: SC

Gimpex Private Limited Vs Manoj Goel (Supreme Court of India)  dated 08/10/2021

Authorities shall provide opportunity of hearing before arriving at any figure in demand Notice

Golden Trees Plantation Limited Vs Securities And Exchange Board of India (Gujarat High Court) dated 06/09/2021

Calculating limitation period for proceedings under IBC?

V Nagarajan Vs SKS Ispat and Power Ltd.& Ors. (Supreme Court of India) dated 21/10/2021

HC asks govt to keep vigil on ‘Rising Frauds in Aadhaar Enrollment

Naresh Kumar R.P. Vs State of Karnataka (Karnataka High Court) dated 30/09/2021

Benami Act, 1988, would not extend to properties purchased by the company

Kalyan Buildmart Pvt. Ltd. Vs Initiating Officer (Rajasthan High Court) dated 06/10/2021


Bipul Kumar

Judiciary updates- Company Laws 13th Oct 2021

  1. NCLAT has power to grant case withdrawal under Rule 11 of NCLT Rules Anuj Tejpal Vs Rakesh Yadav (NCLAT Delhi) dated 07/07/2021
  2. Writ petition against an order of NCLT not maintainable before HC

Ideal Surgicals Vs National Company Law Tribunal (Kerala High Court) dated 02/07/2021

3. DIN of director cannot be deactivated merely for section 164(2) disqualification
Zacharta Maramkandathil Mohan Vs Union of India (Kerala High Court) dated 16/06/2021

4. For Cases admitted by NCLT all proceeding should be concluded by NCLT only

Shriraj Investment and Finance Ltd. & Ors. and Casper Consumer Electronics Pvt. Ltd. Vs Union of India & Anr. (Delhi High Court): W.P.(CRL) 1823/2020, & W.P.(CRL) 1414/2021 dated 14th Sept 2021

5. NCLAT set aside unsavoury observations/comments in NCLT order

Chalasani Udaya Sankar Vs Lexus Technologies Pvt. Ltd. (NCLAT Chennai) dated 13/07/2021

6. HC directs Official Liquidator to pay unsecured creditor with 4% interest Govt of India Vs Mewar Textiles And Ors (Rajasthan High Court, Jodhpur Bench) dated 20/07/2021

7. Statutory dues cannot be claimed if not exists in company’s approved RP for DHFL Piramal Capital (Housing Finance Ltd. Vs Administrator, Dewan Housing Finance Corporation Ltd. (NCLAT Delhi) dated 12/07/2021

8. Liquidation should be the last resort after proper evaluation & calibration  Lotus City Plot Buyers Welfare Association Vs Three C Homes Pvt. Ltd dated 08/07/2021

9. Application to enforce shareholders right under board resolution is to be made before NCLT Jaiveer Singh Virk Vs Sir Sobha Singh & Sons Pvt. Ltd. (Delhi High Court) dated 01/03/2021

10. RoC cannot deactivate Director Identification Number (DIN) : HC

 Baalu Renukadevi Vs Union of India (Madras High Court) dated 30/04/2021

Bipul Kumar