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 (Tax Laws)- 27th Jan 2022

Claim of Assessee of Profit lower than 8% cannot be denied for mere non-submission of Tax Audit Report

ACIT Vs Vairam Constructions (ITAT Chennai) dated 18/01/2022

Rs. 258 Crore illegal ITC availment case – HC refuses Bail to accused

Paritosh Kumar Siingh Vs Senior Intelligence Officer (Chhattisgarh High Court) dated 18/01/2022

Income Tax Notice issued issued against a dead person, is null and void

Dharamraj Vs ITO (Delhi High Court) dated 17/01/2022

Directors’ personal property cannot be Attached to Recover Companies Sales Tax Dues
Sunita Ramesh Bansal Vs Assistant Commissioner of State Tax (Gujarat High Court) dated 13/01/2022

HC disposes petition as department granted credit as per courts direction which was earlier not given

Siddharth Enterprises Vs Nodal Officer (Gujarat High Court) dated 12/01/2022

Expenses towards provision for pension fund allowable as expenses

ACIT Vs Punjab & Sind Bank (ITAT Delhi) dated 05/01/2022

HC directs unblocking of Electronic Credit Ledger as one year period was expired

Krishna Fashion Vs Union of India (Delhi High Court) dated 18/01/2022

GST Cash credit account of assessee cannot be provisionally attached

Manish Scrap Traders Vs Principal Commissioner (Gujarat High Court) dated 12/01/2022

If assessee resold goods imported from AE without any value addition, than most appropriate method for determining ALP is RPM

Randox Laboratories India Private Limited Vs ACIT (ITAT Bangalore) dated 04/01/2022

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

Judicial updates (GST)-18th Jan 2022

Electronic Credit Ledger automatically gets unblocked after 1 Year

Ambika Creation Vs Commissioner, Govt. of Gujarat (Gujarat High Court) dated 12/01/2022

HC cancels summon under GST as Petitioner was co-operating

FSM Education Pvt. Ltd. Vs Union of India (Bombay High Court) dated 10/01/2022

HC grants bail to CA on furnishing bail bond of Rs. 50 Lakh in Bogus ITC claim

Amit Kumar Agarwal @ Amit Agarwal Vs State of Odisha (Orrisa High Court) dated 11/01/2022

HC sets aside retrospective amendment In IPR denying GST reimbursement

Ultratech Cement Limited Vs State of Odisha (Orissa High Court) dated 04/01/2022

GST paid during Investigation shall be treated as amount paid ‘under protest’

Aditya Energy Holdings Vs Directorate General of GST Intelligence (Madras High Court) dated 10/12/2021

In absence of proper details & substantiating documentary evidences advance ruling cannot be given

Chep India Private Limited (GST AAR Tamilnadu) dated 28/12/2021

ITC of GST restricted U/s. 17(5)(d) cannot be utilised

INOX Air Products Pvt Ltd. (GST AAAR Tamilnadu) dated 02/12/2021

Advance ruling under GST cannot be given on facts related to Pre-GST period

Handloom Weavers Cooperative Society Ltd. (GST AAR Tamilnadu) dated 30/12/2021


Bipul Kumar

Judicial updates (GST & Income Tax) -11 Jan 2022


Patna HC Quashes GST order passed in violation of Principles of Natural Justice

Sky Vision Media Private Limited Vs State of Bihar (Patna High Court) dated 04 Jan 2022

Cash credit account cannot be provisionally attached- HC issues contempt notice to Principal Commissioner

Manish Scrap Traders Vs Principal Commissioner (Gujarat High Court) dated 05/01/2022

Levy of basic excise duty & NCCD not violative of Article 14 of Constitution

V.S. Products Vs Union of India (Karnataka High Court) dated 04/01/2022

HC quashes Order for not providing hearing opportunity to Assessee

Naresh Aggarwal Agencies Pvt. Ltd. Vs State of Punjab & anr. (Punjab and Haryana HC) dated 21/12/2021


Penalty cannot be imposed merely for non-filing of Audit Report Electronically

SLV Housing Development Corporation Vs ACIT (ITAT Bangalore) dated 22/11/2021

CIT cannot invoke section 263 if there was lack of inquiry from the end of AO

Pushp Steel and Mining Private Ltd. Vs PCIT (ITAT Delhi) dated 22/12/2021

RPM method used by Taxpayer cannot be rejected without pointing defect in the same

Randox Laboratories India Private Limited Vs ACIT (ITAT Bangalore) dated 04/01/2022


Bipul Kumar

Judicial updates (GST)- 20th Dec 2021

Whether Form GSTR-3B is a return or not under the CGST Law

SC in Union of India & Ors. v. Aap and Company [Civil Appeal No(s). 5978/2021 dated December 10, 2021] reversed the judgment of the Gujarat High Court, ruling that FORM GSTR-3B is not a return under Section 39 of the CGST Act.

Union Of India & Ors. Vs. AAP And Company (Supreme Court) dated 10/12/2021

No Denial of ITC if transactions were genuine & supplier registration cancelled thereafter- HC

LGW Industries Limited & Ors. Vs Union of India & Ors. (Calcutta High Court) dated 13/12/2021

GST not payable on accommodation services if per day declared tariff is below Rs. 1000

In re Healersark Resources Private Limited (GST AAR Karnataka) dated 06/12/2021

GST not leviable on free of cost supply during warranty period

In re South Indian Federation of Fishermen Societies (GST AAR Karnataka) dated 06/12/2021

GST on supply of services relating to sale or purchase of rice

 In re Hindustan Agencies (GST AAR Karnataka) dated 06/12/2021

GST on reimbursement of Electricity & Water charge

Electricity and water charges reimbursed directly, charged to the licensee by issuing debit note or paid by the licensee is considered monthly License fee and total value along with fixed monthly rent is to be considered as transaction value of rent for the purpose levy of tax under GST Act.

 In re Indiana Engineering Works (Bombay) Pvt. Ltd (GST AAR Maharashtra) dated 06/12/2021

GST on Part Recovery of transport facility provided to employees

In re Integrated Decisions And Systems India Pvt Ltd (GST AAR Maharashtra) dated 06/12/2021


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)- 25th Nov 2021


HC directs AO to pay ₹25000 to PM CARES for not following section 144B

Parag Kishorchandra Shah Vs The National Faceless Assessment Center & Ors. (Bombay High Court) dated 27/10/2021

Transfer Pricing Officer: Quasi-capital are treated differently than normal loan transactions

Bilakhia Holdings Pvt. Ltd. Vs ACIT (ITAT Surat) dated 11/10/2021


No withholding of GST refund on account of need for verification of suppliers to supplier of ultimate exporter

Bhagyanagar Copper Private Limited Vs Central Board of Indirect Tax and Customs (Telangana High Court) dated 28/09/2021

GST Registration cancellation on Hyper-Technical grounds causes Revenue Loss: HC

CIGFIL Retail Pvt. Ltd. Vs Union of India (Calcutta High Court) dated 10/11/2021

Vires of Section 16(2) of CGST Act, 2017 challenged before HC

Unifab Engineering Project Pvt. Ltd. and anr. Vs Deputy Commissioner CGST And CEX (Bombay High Court) dated 16/11/2021

Provisional attachment after expiry of one year breaches Section 83 provisions of CGST Act

Formative Tex Fab Vs State of Gujarat (Gujarat High Court) dated 21/10/2021

Services by ‘Airbus Group India’ are ‘Intermediary service’ & liable to GST

 In re Airbus Group India Pvt. Ltd.  (GST AAAR Karnataka dated 09/11/2021

Bombay HC issues notice in challenge to Constitutional validity of 16(4) of CGST Act

Meta Tiles Pvt. Ltd. Vs Union of India (Bombay High Court) dated 29/10/2021


Bipul Kumar