2022-TIOL-NEWS-098 Part 2 Dated:Thursday , April 28, 2022

2022-TIOL-NEWS-098 Part 2 | April 28, 2022

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TIOL AWARDS


	TIOL is privileged to share with you the copy of the Summary Report of TIOL Tax Congress, shared with Hon'ble PM, FM & RS as policy change recommendations.

INCOME TAX

2022-TIOL-594-HC-DEL-IT

Vossloh Beekay Castings Ltd Vs ACIT

Whether commission expenses can be validated solely on the basis of emails exchanged by the principal and the agent & more so where the scope of service is nowhere explained - NO: HC

- Assessee's appeal dismissed: DELHI HIGH COURT

2022-TIOL-593-HC-DEL-IT

Nirman Overseas Pvt Ltd Vs National Faceless Assessment Centre, Delhi

Whether immunity from penalty u/s 270AA can be refused to an assessee only in cases where penalty is imposed upon allegation of mis-reporting of income - YES: HC

Whether an assessee can be prejudiced for the inaction of the AO in passing order u/s 270AA within the time limit specified - NO: HC

- Writ petition allowed: DELHI HIGH COURT

2022-TIOL-592-HC-KOL-IT

Sheo Shakti Coke Industries Vs ACIT

Whether it is fit case for remand where the CIT (A) sustains findings rendered by the AO despite knowing that such findings were rendered without properly considering the evidences furnished by the assessee - YES: HC

- Matter remanded: CALCUTTA HIGH COURT

TODAY'S CASE (INDIRECT TAX)

GST - Not only the order is non-speaking but cryptic in nature and the reason of cancellation of registration not decipherable there from, Principles of natural justice stand violated: HC

Cus - Since the inquiry may take some longer time before it is concluded, burden of assessee is reduced by Rs.7 Crore and restrict the bank guarantee to the tune of Rs.8 Crore: HC

GST - As out of 21 items, department has considered to release 18 items and wants to retain three items, court is granting three months time period to retrieve the data from said three items: HC

GST CASE

2022-TIOL-608-HC-AHM-GST

Shama Fatima Vs State of Gujarat

GST - The issue involved is with respect to release of 21 electronic gadgets seized from applicants during search carried out under Section 67 of G.S.T. Act - Out of 21 items, department has considered to release 18 items and wants to retain three items - Said 18 items should be released at the earliest whereas the three gadgets which the department wants to retain, court is granting three months time period to retrieve the data - The cash amount of Rs.12,50,000/- was also seized from premises during search, same should also be returned to applicants: HC

- Application disposed of: GUJARAT HIGH COURT

2022-TIOL-607-HC-AHM-GST

Vinayak Metal Vs State of Gujarat

GST - Cancellation of registration - It is the case of applicant that though, the SCN called upon them "to appear for personal hearing on appointed date and time" failing which, case was to be decided ex-parte on basis of available records on merits, said SCN was bereft of any material particulars and same does even stipulated any next date of hearing for personal hearing - On bare perusal of the contents of SCN as well as impugned order, it is found that said SCN is absolutely vague, bereft of any material particulars and impugned order is also vague and a non-speaking order - It cannot be disputed that with cancellation of registration, dealer is liable to both civil and penal consequences - To say the least, authority ought to have at least referred to the contents of SCN and response thereto, which was not done - Not only the order is non-speaking but cryptic in nature and the reason of cancellation not decipherable there from - Principles of natural justice stand violated and order is quashed as it entails penal and pecuniary consequences - Therefore, SCN as well as consequential order cancelling registration is set aside - Matters remitted to revenue for denovo proceedings in accordance with law: HC

- Matter remanded: GUJARAT HIGH COURT

INDIRECT TAX

2022-TIOL-609-HC-AHM-CUS

Addl. Director General Vs Hazel Mercantile Ltd

Cus - Pursuant to the order passed by this Court in 2022-TIOL-155-HC-AHM-CUS , assessee furnished the bank guarantee of amount of Rs.15 Crore and upon furnishing of same, he was permitted to re-export the goods - In this litigation also, dispute is whether the goods in question is in form of "Nephtha" as asserted by assessee or "Gasoline" as asserted by Revenue - The inquiry in this regard is in progress - Revenue needs to try to complete the inquiry as early as possible - If revenue is of the view that there is sufficient material for purpose of issuing a SCN, it may proceed to do so - However, only indulgence court propose to grant to assessee while disposing of application is with respect to reducing the burden so far as bank guarantee is concerned - The inquiry may take some longer time before it is concluded - This may result into financial hardships to assessee so far as the bank guarantee is concerned - Burden of assessee is reduced by Rs.7 Crore and restrict the bank guarantee to the tune of Rs.8 Crore - Two bank guarantees have been furnished; one of the amount of Rs.10 Crore and the other one of the amount of Rs.5 Crore - The Commissioner shall retain the bank guaratnee of Rs.5 Crore and assessee shall furnish a fresh bank guarantee of Rs.3 Crore, that would make Rs.8 Crore and so far as the bank guarantee of the amount of Rs.10 Crore is concerned, it would stand discharged: HC

- Writ application disposed of: GUJARAT HIGH COURT

NEWS FLASH


	Twitter Q1 revenue tepid but user-base rising US economy inches close to cusp of recession; shrinks by 1.4% in Q1 NCB seizes 50 kg groin & Rs 30 lakh cash from Shaheen Bagh Govt to auction 5G Spectrum worth Rs 7.5 lakh crore in early June: Minister Maharashtra Police detains SUV with 89 swords and a dagger after prolonged chase China to lower import duty on coal for energy security World lost 97500 sq miles of forest to wildfires in 2021 GST - GoM on Casino to meet on May 2 in North Block UP Govt de-platforms 11000 loud-speakers from religious places French President welcomed with tomatoes on first public appearance after re-election Elon Musk sets his eyes on Coca-Cola for next takeover - only to put ‘cocaine back in it' Govt will take befitting view on crypto issue: FM