2021-TIOL-NEWS-051 Part 2, Dated:Tuesday, March 02, 2021

2021-TIOL-NEWS-051 Part 2 | March 02 2021

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INCOME TAX


	2021-TIOL-513-HC-DEL-IT Jatinder Pal Singh Vs DCIT Whether when taxpayer fails to offer explanation about nature & source of acquisition of money, then value of such money may be deemed to be his unexplaind income - YES: HC - Assessee's appeal dismissed: DELHI HIGH COURT 2021-TIOL-508-HC-KAR-IT Pr.CIT Vs Syndicate Bank On appeal, the High Court observes that the issues raised in the present appeal have been settled in favor of the assessee, through the decisions rendered in the assessee's own case for different period. Hence the Court disposes off the present appeal accordingly. - Revenue's appeal dismissed : KARNATAKA HIGH COURT 2021-TIOL-416-ITAT-MUM Rosy Blue India Pvt Ltd Vs DCIT Whether provisions of section 142(2A) to order Special Audit can be invoked without bringing any material on record to demonstrate complexity of books of Account - NO: ITAT Whether addition in closing stock can be made by the AO when assessee is following accounting policy consistently qua valuation of stocks which has duly been disclosed in audited accounts under significant accounting policies - NO: ITAT - Assessee's appeal allowed: MUMBAI ITAT 2021-TIOL-415-ITAT-MUM Go Airlines India Ltd Vs DCIT Whether deduction claimed on account of CENVAT credit pertaining to PSF/UDF and advertisement expenses can be disallowed when assessee has not earned it - YES: ITAT Whether disallowance u/s 35D can be made when no asset of enduring nature is created on account of issuance of initial public offer - NO: ITAT - Assessee's appeal partly allowed: MUMBAI ITAT 2021-TIOL-414-ITAT-CHD Hero Investment Pvt Ltd Vs DCIT Whether income from sale and purchase of shares/securities/PMS/Mutual Funds should be treated as income under head 'capital gains' – YES: ITAT - Case remanded: CHANDIGARH ITAT

GST CASE


	2021-TIOL-86-AAR-GST Shivam Agro Industries GST - 'Zn EDTA' (Zinc Ethylenediamine Tetra Acetic Acid) and 'Fe EDTA' (Iron Ethylenediamine Tetra Acetic Acid) Acetic Acid) used as fertilizer to overcome zinc deficiency and iron deficiency respectively in plants and supplied by the applicant are micronutrients classifiable under Chapter Heading 3824 99 90 of the First Schedule to the Customs Tariff Act, 1975; are covered under Sl. No. 56 of Schedule-II of Notification No. 1/2017-Central Tax (Rate) attracting GST @ 12%: AAR GST - Supply of the products 'Zn EDTA' and 'Fe EDTA' by the applicant to the recipient, who is not registered under the Fertilizer Control Order, 1985, will have no impact on the applicability of particular S. No. of the Schedules of the Notification No. 1/2017-Central Tax (Rate) as there is no such condition prescribed in said entry under said notifications: AAR - Application disposed of: AAR 2021-TIOL-85-AAR-GST Air Control And Chemical Engineering Company Ltd GST - Supply, Testing and Commissioning of 160 TR Chilled Water Plant to Naval Dockyard (Vishakhapatnam) is a composite supply with the principal supply being of goods viz. '160 TR Chilled Water Plant'/ 'Chiller' falling under Chapter sub-heading No. 8418 10 10 - GST applicable is @28% till 26.07.2018 and @18% from 27.07.2018: AAR GST - Chilled Water Plant is used for supplying chilled water through flexible insulated hoses to Ships under refit i.e. ships under repair whose main engine, AC plant are non-operational or cannot be used - The chilled water is further circulated on-board ship to provide control temperature for electronics and human comfort - The said plant is, thus, primarily used in the Naval Dockyard meant to maintain and control the temperature and humidity in the Naval Ships stationed in the Dockyard - Since, said Chilled Water Plant is not installed in the Warships, Vessels and Submarines meant for Indian Navy but same is installed at Naval Dockyard, Authority holds that the same cannot be categorised as "Any Parts" of Vessels under HSN 8906 and consequently, same is not subjected to GST @ 5% under HSN 8906 as per Sr. No. 252 (Any Chapter) of the Notification No. 01/2017-IT (Rate): AAR - Application disposed of: AAR

INDIRECT TAX

2021-TIOL-514-HC-MUM-CUS

Pranda Jewellery Pvt Ltd Vs UoI

Cus - Import of articles of gold i.e. images of different deities which are decorative images made out of gold sheets classified by the importer under Customs Tariff Heading No. 71141910 since the year 2008 - Deputy Commissioner of Customs rejected the said classification and re-classified the imported goods under the Customs Tariff Heading No. 3926 4039 besides denying the benefit of Notification No.46/2011 dated 01.06.2011 - Appellate authority noted that the petitioner was not heard either before re-classification or before re-assessment; thus principles of natural justice were not followed - accordingly, OIO was set aside by order dt. 09.10.2020 and the matter was remanded - Since no decision has been taken by the adjudicatory authority after remand, the importer is before the High Court.

Held: Petitioner had earlier moved the adjudicating authority for provisional release of the imported goods u/s 110A of the Customs Act, 1962 on 03.03.2020 but to no avail - It is observed that for import of identical goods for the period from 09.03.2017 to 23.12.2017 and again for the period from 13.01.2018 to 14.06.2018, bills of entries of the petitioner were cleared by accepting identical classification declared by the petitioner - Further, although a dispute was raised in respect of bill of entry No. 7262799 dated 18.07.2018, however, at the intervention of the Commissioner, the imported goods were cleared on bond without insisting on any bank guarantee - Without expressing any opinion at this stage, Bench is of the view that it would be in the interest of justice if a decision is taken by the proper officer for release of the imported goods of the petitioner for home consumption either on the basis of provisional assessment or under section 110A of the Customs Act, 1962 - Such decision is to be taken within a period of two weeks and matter is posted on 16th March, 2021: High Court [para 6 to 8]

- Interim order passed:BOMBAY HIGH COURT

2021-TIOL-512-HC-MAD-CX

Tamilnadu Newsprint And Papers Ltd Vs CCE

CX - CENVAT credit is admissible on construction materials viz. M.S.Angles , M.S.Joint Beams and TOR Steel - Immovability is not a criteria for denial of Cenvat Credit - Civil miscellaneous appeal is allowed and the order passed by the Tribunal dated 11.06.2012, is set aside - The substantial questions of law are answered in favour of the assessee: High Court [para 5, 6]

- Appeal allowed: MADRAS HIGH COURT

2021-TIOL-511-HC-MAD-CX

CST Vs C Dot Alcatel Lucent Research Centre Pvt Ltd

CX - Tribunal stated the legal position that the State should not be enriched at the cost of its citizen and there can be no quarrel over the said proposition - However, the Tribunal failed to consider as to whether the Commissioner (Appeals) was justified in passing the common order allowing the appeals filed by the first respondent – assessee - Several grounds have been raised by the Revenue before the Tribunal and Tribunal was required to examine the correctness of the common order passed by the Commissioner (Appeals) with reference to the grounds raised by the Revenue before it - The common impugned order is without any discussion on any of the grounds raised by the Revenue, hence, Bench is inclined to interfere with the common impugned order and remand the matters to the Tribunal for a fresh consideration - Civil miscellaneous appeals are allowed - It is needless to state that the Tribunal should deal with all the grounds, which have been canvassed by the Revenue before it: High Court [para 5 to 7]

- Appeals allowed: MADRAS HIGH COURT

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