Weekly Judgments Compilation from July 10 to July 15, 2023

This weekly update covers the most important Judgement pieces published on Studycafe in the previous week, from July 10 to July 15, 2023.

ITAT deletes EPF/ESI disallowance on account of one day delay in deposit due to public holiday/Sunday

The Income Tax Appellate Tribunal(ITAT) Delhi in the matter of M/s G.D. Foods and Manufacturing vs Assistant Director of Income Tax has opined that when the due date for depositing the contribution of ESIC & EPF falls on Sunday and gazetted holiday, the said delay of one day deserves to be condoned as per Section 10 of General Clauses Act.

Case: M/s G.D. Foods and Manufacturing vs Assistant Director of Income Tax(ITAT Delhi); ITA No.221/Del/2023; 2019-20; 10/07/2023

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Penalty for Non-Filing ITR u/s 271F not mandatory: ITAT Deletes Penalty

The Income Tax Appellate Tribunal (ITAT) in the matter of Sheel Agarwal vs Income Tax Office has deleted the penalty order for Non-Filing of Income Tax Return (ITR) passed u/s 144 and order u/s 271F of the Income Tax Act, 1961.

Case: Sheel Agarwal Vs. Income Tax Office(ITAT Delhi); ITA No. 123/Del/2023; 2012-13; 2012-13

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No GST applicable on salary deducted in lieu of notice period from full and final settlement of employees: AAR

The applicant is engaged in the manufacture, sale and trading of automotive parts and provides products and services to the Indian and global automotive OEMs as well as other Tier I suppliers.

Case: In re. Tata Autocomp Systems Ltd (AAR Gujarat); GUJ/GAAR/R/2O23/23; 19.06.2023

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No Advance Ruling to be given on questions already decided by jurisdictional authority: AAR

The Applicant is a flour miller, engaged in providing services of crushing wheat provided by the State Government, into fortified atta which in turn is supplied by the State Government through Public Distribution System. The ownership of wheat or atta is never transferred to the Applicant.

Case: In re. MURSHIDABAD FLOUR MILL PRIVATE LIMITED(AAR West Bengal); 12/WBAAR/2022-23; 26.06.2023

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Maintaining 2 Books of Accounts to escape Tax amounts to under reporting and misreporting: ITAT Confirms Penalty

The Income Tax Appellate Tribunal(ITAT) Delhi in the matter of Amar Nath Vs. ITO has noted that assessee was maintaining two sets of books of accounts which were impounded during the course of survey proceedings and it was found that assessee has made out of books sales amounting to Rs. 77,25,354/- upon which addition on gross profit @ 3.19% of Rs. 77,35,354/- was made. That certainly amounts to under reporting of incoming consequence to misreporting by way of misrepresentation of facts.

Case : Amar Nath Vs. ITO(ITAT Delhi); ITA No. 74/Del/2023, 2017-18; 10.07.2023

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GST Department seals house property on non-response of Notice in absence of petitioner staying in it: High Court

The High Court of Madras in the matter Shanthi Umesh vs. DGGI Additional Director has held that GST Department seal house property in absence of petitioner staying in it.

Case: Shanthi Umesh vs. DGGI Additional Director(Madras High Court); W.P.No.20474 of 2023; 11.07.2023

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State GST Department lacks jurisdiction on IGST Act, Says HC: Cannot retain the amount of tax on export transactions

The Bombay High Court in the matter of Media Net Software Services (India) Pvt. Ltd. Vs. Union of India & Ors. held that State GST Department lacks jurisdiction to retain the amount of tax on export transactions.

Case: Media Net Software Services (India) Pvt. Ltd. Vs. Union of India & Ors.(Bombay High Court); WRIT PETITION NO. 749 OF 2021; 05.07.2023

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High Court Grants Bail where person was illegally arrested without issuance of GST Recovery Notice

Heard Sri Anup Trivedi, learned senior counsel assisted by Shri Vineet Bhatia and Shri Abhinav Gaur, learned counsels for the applicant and Sri Dhananjay Awasthi, learned counsel for Union of India and perused the material on record.

Case: Ravinder Nath Sharma Vs. Union of India(Allahabad High Court); CRIMINAL MISC. BAIL APPLICATION No. – 26376 of 2023; 10.7.2023

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Income Tax Penalty SCN issued without specifying charge against taxpayer bad in law: HC

Honorable High Court in the matter of Principal Commissioner of Income Tax, Central-2. Kolkata Versus M/S. Industrial Safety Products Private Limited has retreated the decision of the High Court of Karnataka which was affirmed by the Hon’ble Supreme Court in the decision reported in (2016) 73 Taxmann.com 248 (SC) that that the imposition of penalty under Section 271(1)(c) of the Act is bad in law and invalid for the reasons where the show cause notice under Section 274 of Act did not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income.

Case: PRINCIPAL COMMISSIONER OF INCOME TAX Vs. M/S. INDUSTRIAL SAFETY PRODUCTS PRIVATE LIMITED(Calcutta High Court); ITAT/88/2022; 03.07.2023

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