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-29th Jan 2022

Judicial updates-29th Jan 2022

K. Arumuga Velaiah vs P.R. Ramasamy Supreme Court Judgement dated 27th Jan 2022

👉 Document of partition which provides for effectuating division of properties in future is not compulsorily registrable u/s 17 of the Registration Act

SC not entertain the petitions under Article 32 of the Constitution in the first instance. The petitioners have an alternate and efficacious remedy of moving the concerned High Courts under Article 226 of the Constitution.

Udaipur Chambers of Commerce  Vs Union of India (Supreme Court of India) dated 04/01/2022

Tenancy Transfer not Amounts to Creation of New Tenancy

Bombay HC- Alice Realties Pvt. Ltd. Vs State of Maharashtra dated 03/01/2022

HC should Exercise jurisdiction under Article 226 on sound judicial principles

LNJ Power Ventures Ltd. Vs Rajasthan Electricity Regulatory Commission (Rajasthan High Court) dated 06/01/2022

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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

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Bipul Kumar

Judicial updates-19th Jan 2022

Judicial updates-19th Jan 2022

CCI directs probe against Google for Abusing its Dominant Position against Publishers

In re Digital News Publishers Association (CCI) dated 07/01/2022

NCLT/NCLAT should not pass ad hoc orders regarding fee and expenses payable to Resolution Professionals

Devarajan Raman Vs Bank of India Limited (Supreme Court of India) dated 05/01/2022

NCLAT Stays Order Initiating CIRP as parties entered Settlement Agreement

Vinayak K Deshpande Vs Nexo Industries P Ltd (NCLAT Chennai) dated 04/01/2022

SC Restores Limitation Extension & excludes Period From 15.03.2020 to 28.02.2022 From Limitation

In Re Cognizance For Extension of Limitation (Supreme Court of India) dated 10/01/2022

Section 45 PMLA Act Gets Triggered while Considering Anticipatory Bail Plea

Asst. Director Enforcement Directorate Vs Dr. V.C. Mohan (Supreme Court of India) dated 04/01/2022

Builder obliged to provide occupancy certificate to flat owners & Failure amount to deficiency in service

Samruddhi Co-operative Housing Society Ltd. Vs Mumbai Mahalaxmi Construction Pvt. Ltd. (Supreme Court of India) -11/01/2022

Comments made during Mediation or Settlement Proceedings cannot be relied by Courts

Arjab Jena@ Arjab Kumar Jena Vs. Utsa Jena @ Pattnaik (Supreme Court of India) dated 05/01/2022

Nobody has a fundamental right to a public holiday

Kishnabhai Nathubhai Ghutia Vs Administrator Union Territory (Bombay High Court) dated 05/01/2022

God cannot be summoned by Court for inspection or verification

S.P. Eswaramurthy Vs Government of Tamil nadu (Madras High Court) dated 06/01/2022

Employees refusing regular promotion offer disentitled to financial upgradation benefits

Union of India Vs Manju Arora (Supreme Court of India) dated 03/01/2022

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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)- 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

Judicial updates (Income tax) -15th Dec 2021

Addition based on mere Third Party statement without granting Cross-Examination deleted

Vijayshree Food Products P. Ltd. Vs ACIT (ITAT Delhi) dated 06/12/2021

FIR can’t be registered against Income Tax officials for any act done in good faith

Director General of Income Tax Vs Deputy Commissioner of Police (Karnataka High Court) dated 25/11/2021

TDS not deductible if payees were not identified

Volvo India Pvt. Ltd. Vs ITO (TDS) (Karnataka High Court) dated 15/11/2021

Authorised officer conducting search & seizure cannot retain documents/ assets beyond 15 days

 Dr. R. P. Patel & Ors. Vs Asst. Director of Income Tax (Investigations) & Ors. (Kerala High Court) dated 30/07/2021

No extension of period to pass assessment order being time-barred under guise of special audit u/s 142(A)

Chet Ram Ravi Kumar Vs DCIT (ITAT Chandigarh) dated 04/10/2021

No Tax on Capital Gains on Sale of Agricultural Land which is not a capital asset

Dashratbhai Gopalbhai Patel Vs ITO (ITAT Ahmedabad) dated 31/08/2021

Order passed without issuing draft Assessment cannot be sustained

Golden Tobacco Limited Vs National Faceless Assessment Centre (Bombay High Court) dated 28/10/2021

CBDT notifications not empowers department to put into oblivion section 148A provisions

JSVM Plywood Industries Ltd Vs Union of India (Gauhati High Court) dated 08/12/2021


Bipul Kumar