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Supreme Court dismisses Transfer Petition as withdrawn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

Judiciary updates (Income Tax)-19 Nov 2021

Income Tax Exemption can’t be denied to BCCI merely because IPL is structured in more Profitable Manner

Board of Control for Cricket in India Vs PCIT (ITAT Mumbai) dated 02/11/2021

ITAT confirms addition of unexplained cash deposited in bank account

Shaheen Khan Vs ITO (ITAT Allahabad) dated 11th NOV 2021

Section 271(1)(c) penalty not sustainable if notice not specifies limb for levy of penalty

DCIT Vs Scooters India Ltd. (ITAT Lucknow) dated 02/11/2021

ITAT restores issue of Eligibility to claim depreciation on goodwill to AO

TUV Rheinland NIFE Academy Private Limited Vs ACIT (ITAT Bangalore) dated 01/11/2021

No addition on account of capitalization of royalty expenses as same is revenue in nature

Honda Motorcycle and Scooter India Pvt. Ltd. Vs ACIT (ITAT Delhi) dated 09/11/2021


Bipul Kumar

Judiciary updates (Tax & Corporate Laws)-15 Nov 2021

Default bail U/s. 167(2) Cr.P.C. cannot be equated with discretion of Court U/s. 437, 438 or 439 Cr.P.C.

Amandeep Singh Bhui Vs Inspector (Preventive) Central Goods and Service Tax (Punjab and Haryana High Court) dated 28/10/2021

GST on reimbursement received from MMRDA

 In re Maha Mumbai Metro (M3) Operation Corporation Limited (GST AAR Maharashtra) dated 10/11/2021

Writ maintainable Alternative Remedy available examining records, facts mis-match

Kanunga Extrusion Private Limited Vs Assistant Commissioner (ST) (Madras High Court) dated 21/10/2021

Income Tax

No addition on account of capitalization of royalty expenses as same is revenue in nature

Honda Motorcycle and Scooter India Pvt. Ltd. Vs ACIT (ITAT Delhi) dated 09/11/2021

Other Corporate Laws

Stamp Duty refund cannot be denied for delay in Application due to Judicial Proceedings

Rajeev Nohwar Vs Chief Controlling Revenue Authority Maharashtra State, Pune and Others (Supreme Court of India) dated 24/09/2021

In a contempt jurisdiction, Court cannot travel beyond original judgment: SC

 V. Senthur And Another Vs M. Vijayakumar (Supreme Court of India) dated 01/10/2021

Onus to Prove Deficiency in Service is on Complainant: SC

SGS India Ltd. Vs Dolphin International Ltd. (Supreme Court) dated 06/10/2021


Bipul Kumar

Judiciary updates-13th Nov 2021 (Corporate Laws & Income Tax)

Liability of ensuring that keyword is not an infringement of trademark lies on Google

DRS Logistics (P) Ltd. Vs Google India Pvt Ltd & Ors. (Delhi High Court) dated 30/10/2021

Criminal liability on officers arises only when offence is committed by company

Dayle De’souza Vs Government of India (Supreme Court of India) dated 29/10/2021

Forwarding of documents immediately by ED to AA after order of freezing passed under PML Rules

Since none of the other relevant material, which was the basis of the seizure under Section 17(1A) and the complaint under Section 17(4) of the PMLA were supplied to assessee, as the same were not even supplied by the ED to the AA. Thus, ED should forward a copy of the documents to the Adjudicating Authority immediately after a freezing order under PML Rule.

 J K Tyre And Industries Ltd Vs Directorate of Enforcement (Delhi High Court) dated 27/10/2021

Bombay HC grants injunction in favor of Zee Entertainment in dispute with Invesco

 Zee Entertainment Enterprises Ltd. Vs Invesco Developing Markets Fund (Bombay High Court) dated 26/10/2021

Rental income from sub-lease shall be considered as Business Income since same was business of assessee

 Shanthilal Movji Bhai Thakker Vs ITO (ITAT Chennai) dated 03/11/2021

Change in service conditions vis-à-vis non-issuance of notice of change under section 9A makes transfer order illegal

Caparo Engineering India Ltd. Vs Ummed Singh Lodhi And Anr (Supreme Court of India) dated 26/10/2021

Amount lying in stale draft account cannot be treated as income

DCIT Vs The Karur Vysya Bank Ltd. (ITAT Chennai) dated 03/11/2021


Bipul Kumar

Judiciary updates-12th Nov 2021 (Income tax, GST & Corporate Laws)

Income Tax

ITAT disallows grossing up of TDS deducted on interest paid to AE

Lite-on Mobile India Pvt. Ltd. Vs DCIT (ITAT Chennai) dated 03 Nov 2021

Disallowing finance charges, which were allowed in earlier years, needs re-consideration – Matter remanded back to AO

Southern Hills Developers Pvt. Ltd. Vs DCIT (Karnataka High Court) dated 31 Aug 2021

Deduction allowable on loss suffered by assessee on Foreign Exchange Fluctuation Loss

PCIT Vs United Spirits Ltd. (Karnataka High Court) dated 02 Sept 2021

No interest expense disallowance when own fund exceeds capital work-in-progress

Axis Bank Limited Vs DCIT (ITAT Ahmedabad) dated 28 Oct 2021


Separate GST registration need not be obtained at the place of importation

In re Pine Subsidiary Industry (GST AAR Karnataka) dated 29/10/2021

AAR cannot give ruling on whether HSN or SAC needs to be mentioned in invoice

 In re GEW (India) Pvt. Ltd. (GST AAR Karnataka) dated 08/11/2021

GST on job work services such as anodizing, plating, on goods/materials belonging to registered persons

In re ALCOATS (GST AAR Karnataka) dated 29 Oct 2021

Manpower services provided to Government entities not exempt from GST

 In re Sree Vinayaka Enterprises (GST AAR Karnataka) dated 29/19/2021

AAR cannot give ruling on value for levy of IGST on imports

In re HDL Industries (GST AAR Karnataka) dated 29/10/2021

Corporate Laws

Gold smuggling not covered within the definition of terrorist act under Unlawful Activities (Prevention) Act

Mohammed Shafi P. Vs National Investigation Agency (Kerala High Court) dated 02 Nov 2021

Arbitrator has Substantial Discretion in Awarding Interest U/s. 31(7)(a) of Arbitration Act: SC

Punjab State Civil supplies Corporation Limited (SC dated 20/10/2021)


Bipul Kumar

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 (Income Tax)-03rd November 2021

Faceless Assessment Order passed without issuance of Draft Assessment Order quashed by HC

Shreeji Investment & Advisory Services Vs National Faceless Assessment Centre (Bombay High Court) dated 25/10/2021

Interest on FD/Bonds constituting business income can be included for Partners remuneration calculation

DCIT Vs Niyati Construction Co. (ITAT Ahmedabad) dated 25/10/2021

No section 271(1)(c) penalty for Mere claim of wrong deduction

PCIT Vs Sonu Realtors Private Limited (Bombay High Court) dated 11/10/2021

Income assessed by CPC, Bangalore cannot be taken as returned income

Ranuj Nagrik Sahakari Bank Ltd. Vs ITO (ITAT Ahmedabad) dated 08/06/2021

Profit attribution not permissible in absence of PE in India

ACIT Vs Ericsson, AB Sweden (ITAT Delhi) dated 27/10/2021

No Penalty for failure to maintain books when Assessee submitted Audit Report & Audited Accounts

Aum Jewels Vs ITO (ITAT Delhi) dated 21/09/2021


Bipul Kumar

Judiciary updates (Income Tax) -30th October 2021

No section 271D Penalty on wife for receiving money from husband for purchase of family property

Smt. Meera Devi Kumawat Vs JCIT (ITAT Jaipur): ITA No. 1201/JP/2019 dated 21/10/2021

TPO duty bound to determine ALP by following any one of prescribed methods

Firemenich Aromatics Production (India) Pvt. Ltd. Vs ACIT (ITAT Mumbai) dated 26/10/2021

Section 36 deduction permitted if expenditure is not for extension of business activity

CIT Vs Ceebros Hotels P Ltd. (Madras High Court) dated 05/10/2021

Depreciation allowable on home-theatre used for business purpose

DCIT Vs Tally Solutions Pvt. Ltd. (ITAT Bangalore) dated 14/10/2021

If AO made addition on estimated GP basis than other item-wise disallowance should not be made

Devyani Tex Chem Pvt. Ltd. Vs ACIT (ITAT Surat) dated 22/06/2021

Deemed dividend not attracted on Loan Taken on interest

DCIT Vs Heilgers Development & Construction Company Pvt. Ltd (ITAT Kolkata) dated 18/08/2021

Activity of Providing Affordable Housing by MHADA is Charitable in Nature

Maharashtra Housing & Area Development Authority (MHADA) Vs DCIT (ITAT Mumbai) dated 13/10/2021

ROC expense for enhancement of share capital not allowable

Moldtek Packaging Ltd. Vs ACIT (ITAT Hyderabad) dated 02/07/2021

Addition under section 69A unsustainable for cash deposited as facilitator

Ashish Natvarlal Vashi Vs ITO (ITAT Surat) dated 11/05/2021


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