Karnataka High Court

Interest accrued on NPA not taxable in computation of Taxable Income of Bank

CIT Vs Davangere District Central Co-Operative Bank Limited (Karnataka High Court)

The issue under consideration is whether Tribunal is right in deleting the interest accrued on non performing assets from the computation of taxable income for the assessment year under consideration despite the assessee maintaining mercantile system of accounting?...

Read More

Vijaya Bank can claim Section 36(1)(viii) deduction as Financial Corporation

CIT Vs Vijaya Bank (Karnataka High Court)

CIT Vs Vijaya Bank (Karnataka High Court) Learned counsel for the revenue submitted that prior to amendment with effect from 01.04.2008, benefit of Section 36(1)(viii) of the Act was not available to a Banking Company and therefore, the assessee is not entitled to claim deduction under Section 36(1)(viii) of the Act. It is further submitt...

Read More

Tax, Interest, or Penalty under GST cannot be imposed without giving opportunity of being heard to Assessee

Sanchar Telesystems Limited Vs Commercial Tax Officer (Karnataka High Court)

The issue under consideration is whether Commercial Tax Officer is correct in initiating proceedings under section 129 for detaining vehicles, imposing tax, penalty, and interest?...

Read More

Conditions of Rule 18DA(8A) can be Looked into Only by Prescribed Authority & Not by the AO

CIT Vs M/S Quintiles Research (India) Private Limited (Karnataka High Court)

The issue under consideration is whether the Tribunal is right in holding that the conditions of Rule 18DA(8A) can be looked into only by the prescribed authority and not by the Assessing Officer?...

Read More

Modification due to Notification has Effect of Deleting Old Rule & Making New Rule Operative

DIT Vs Autodesk Asia Pvt Ltd (Karnataka High Court)

whether the Tribunal was correct in holding that the assessee is liable to be taxed at 10% in view of replacement of 15% with 10% of tax in Article 12 of the DTAA without taking into consideration that the modification of rate of tax by way of notification?...

Read More

Income from Sale of Land which was held as Investment is Capital Gain

CIT Vs Kishan House Builders Association (Karnataka High Court)

CIT Vs Kishan House Builders Association (Karnataka High Court) The issue under consideration is whether the sale of land which is held as investment is considered as capital gains or business income? High Court states that, from perusal of the entries it is evident that the assessee has not conducted any other activity other than [&helli...

Read More

Wind up of six Mutual Fund Schemes by Fanklin should be with consent of unit-holders: HC

SEBI Vs Franklin Templeton Trustees Services Pvt. Ltd (Karnataka High Court)

SEBI Vs Franklin Templeton Trustees Services Pvt. Ltd (Karnataka High Court) i) We hold that no interference is called for in the decision of the Trustees taken on 23rd April 2020 of winding up the said six Schemes; ii) We hold and declare that the decision of the Trustees (the Franklin Templeton Trustee Services private […]...

Read More

GST: HC Set Aside Order of Provisional Attachment of Bank A/c & Directs to De-freeze

A. P. Steels Vs Additional Director General DGCI (Karanataka High Court)

The HC held that the impugned provisional attachment of the Petitioner's bank account was in vogue till 27.05.2020. The communication/order dated 28.05.2019 ceased to operate with the effect from 27.05.2020. Respondent Nos.1 and 2 were directed to de- freeze the Petitioners’ bank account....

Read More

HC Quashed GST Penalty Order due to Contravention of Principles of Natural Justice 

Thoppil Agencies Vs Asst. CCT (Karnataka High Court)

In the instant case, the petition is filed for seeking quashing of the penalty order in Form GST OV 09 under Section 129 (3) of the Central Goods and Services Act, 2017. HC Quashed Penalty Order due to Contravention of Principles of Natural Justice ...

Read More

Section 263 Revision Not Sustainable for mere Inadequacy of Enquiry /Insufficiency of Material on Record

CIT Vs Cyber Park Development & Construction Ltd. (Karnataka High Court)

The issue under consideration is whether mere inadequacy of an enquiry or insufficiency of material on record can be a ground to invoke revisional powers u/s 263 of the Income Tax Act, 1961?...

Read More

Filing of Appeal with GST Tribunal if not constituted- HC Direction

George Clinical India Pvt. Ltd. Vs Union of India (Karnataka High Court)

In the instant case, the petitioner filed a writ petition seeking to quash show cause notice issued by the respondents. The petitioner to reply to the said show cause notice within two weeks. Thereafter, the Adjudicating Authority shall consider the objection filed and pass orders in accordance with law....

Read More

TPA is required to Deduct TDS u/s 194J on Payments to Hospitals

CIT Vs TTK Healthcare TPA Pvt. Ltd. (Karnataka High Court)

The issue under consideration is whether Third Party Administrator (TPA) is required to deduct tax at source (TDS) on payments made to hospitals under Section 194J of the Income Tax Act?...

Read More

Writ admitted for examining validity of provisions restricting ITC on construction of building for letting out on rent

Bagmane Developers Vs Union of India (Karnataka High Court)

Bagmane Developers Vs Union of India (Karnataka High Court) The Hon’ble HC, Karnataka in Bagmane Developers v. Union of India [W.P. No. 9430/2020 dated October 22, 2020] stayed demand of Rs. 62 crore in a writ petition challenging credit restriction under Section 17(5)(c) and (d) of Central Goods and Services Tax Act, 2017 (CGST Act) [&...

Read More

TPA to Deduct section 194J TDS on Payments to Hospitals

TTK Healthcare TPA Private Limited Vs DCIT-TDS (Karnataka High Court)

The issue under consideration is whether a TPA, was required to deduct tax at source on payments made to hospitals under Section 194J of the Act?...

Read More

HC: Capital gain on conversion of FCCBs into shares would be determined by adopting conversion price prevailing at BSE or NSE on date of conversion

Director of Income-Tax International Taxation Vs Intel Capital (Cayman) Corporation (Karnataka High Court)

Director Of Income-Tax International Taxation Vs Intel Capital (Cayman) Corporation (Karnataka High Court) HC: Capital gain on conversion of FCCBs into shares would be determined by adopting conversion price prevailing at BSE or NSE on date of conversion Conclusion: AO was not justified in computing capital gains by adopting the cost of a...

Read More

HC: Interest payable on delayed Income Tax Refund Interest

CIT Vs Syndicate Bank (Karnataka High Court)

CIT Vs Syndicate Bank (Karnataka High Court) Conclusion: When an order of refund was issued, the same should include interest payable on the amount, which was refunded. If the refund did not include interest due payable on the amount refunded, the revenue would be liable to pay interest on the short fall. This did not […]...

Read More

Depreciation on intangible assets transferred by Firm allowable to Company

Padmini Products Pvt. Ltd. Vs DCIT (Karnataka High Court)

Section 32(1) of the Act provides for depreciation in respect of trademarks owned wholly or partly by the assessee. In the instant case, the assessee succeeded to the business of the partnership firm, which had trademarks registered in its name. Therefore, the assessee under Section 32(1) of the Act was entitled for depreciation....

Read More

Disallowance of exemption not justifiable for non-mentioning of specific objective in Form No. 10

CIT Vs Gokula Education Foundation (Karnataka High Court)

CIT Vs Gokula Education Foundation (Karnataka High Court) Facts- Assessee claim an amount of INR 93,46,716 under section 11(2) by filing Form No. 10. In Form No. 10, assessee mentioned the object as ‘towards the object of the Trust’. Assessee filed revised Form No. 10 briefly specifying the object which was accepted by the Commissione...

Read More

Cash expense disallowable U/s. 40A(3) if no sufficient cause

Nam Estates Pvt. Ltd Vs. ITO (Karnataka High Court)

Assessee couldn’t demonstrate with cogent evidences that there was business expediency or sufficient cause for such cash payment. Assessee failed to prove that the case was covered in the exception clause as provided under section 40A(3) read with Rule 6DD....

Read More

GST: Exercise of power without Opportunity of hearing to Assesse is unjustified

DPK Engineers Private Ltd. Vs. Union of India (Karnataka High Court)

Contention of the learned counsel for the Revenue that the Act vests the power in the respondents to take measures for recovery of tax, interest & the penalties that have fallen due does not come to the rescue of the Revenue; existence of power is one thing and its exercise is another; the existence per se does not justify the exercise; n...

Read More

Foreign currency expense cannot to be excluded for computing export Turnover

Mindtree Ltd Vs. ACIT (Karnataka High Court)

Mindtree Ltd Vs. ACIT (Karnataka High Court) Thus, the  Commissioner  of  Income  Tax (Appeals) has recorded a categorical finding that assessee is engaged in the development of computer software, which is exported outside India. The aforesaid finding has not been set aside by the Tribunal. Therefore, in view of Explanation 2(iii) to ...

Read More

Revocation of Cancellation of GST Registration – HC found argument of erroneous exercise of jurisdiction untenable

M.S. Retail Private Limited Vs Union of India (Karnataka High Court)

M.S. Retail Private Limited Vs Union Of India (Karnataka High Court) It is not in dispute that the show cause notices, the order of cancellation and the order rejecting the application for revocation of cancellation are passed by proper officer. The show cause notice dated 18.03.2020 and the order of cancellation of registration dated 06....

Read More

HC directs AO to verify claim of Section 80IB(10) deduction

DIT Exemptions Vs India Heritage Foundation Gokulam Complex (Karnataka High Court)

DIT Exemptions Vs India Heritage Foundation Gokulam Complex (Karnataka High Court) It is evident that the Assessing Officer has not made any enquiry with regard to the claim of the assessee for deduction under Section 80IB(10) of the Act. The Director of Income Tax (Exemption) in the order passed under Section 263 of the Act […]...

Read More

HC order release of Goods on payment of 100% of tax payable

The Secretary to Govt. Department of Finance Vs M/s. K.S. Arcanut Stores (Karnataka High Court)

The issue under consideration is whether the order passed for imposing tax and penalty equal to 100% on areca nut for the release of detained goods and conveyances in transit is justified in law?...

Read More

Section 54F Exemption on Investment in House Property in USA Prior to 01.04.2015 allowable

CIT Vs. Vinay Mishra (Karnataka High Court)

The issue under consideration is whether the assessee is entitled to claim exemption u/s 54F of the Income Tax Act in respect of investment made in the house property in USA? ...

Read More

Disallowing of Interest without Considering T&C of Agreement is unjustified

Hutchinson & Co. (India) P. Ltd. Vs DCIT (Karnataka High Court)

The issue under consideration is whether Tribunal is correct in the disallowing the claim of interest from the deposits without considering the terms and conditions of the agreement between the parties?...

Read More

Expense on Upgrade & Development of Product is Capital Expense

Bioplus Life Sciences Pvt. Ltd. Vs DCIT (Karnataka High Court)

The issue under consideration is whether the expenditure incurred towards upgraded and development of a product was to be considered as capital expenditure or revenue expenditure?...

Read More

Indexed cost of acquisition can be reduced to compute book profits U/s. 115JB

Best Trading and Agencies Ltd. Vs. DCIT (Karnataka High Court)

The issue under consideration is whether the indexed cost of acquisition can be reduced for the purpose of computing book profits under Section 115JB of the Act?...

Read More

Provision for Warranty Calculated on Scientific Basis as per AS 29 Can’t be Disallowed

CIT Vs AMCO Batteries Ltd. (Karnataka High Court)

The issue under consideration is whether the provision for warranty is allowable as deduction when the assessee has not made provision on a scientific basis?...

Read More

Perishable Goods in Transit Can’t Seized, if applicable IGST paid with valid E-way Bill & Invoice

Venkateshvara Logistics Fleet Owners and Transport Contractors Vs Assistant Commissioner (Karnataka High Court)

whether the department is entitled to seize a consignment of perishable goods in transit more particularly when it is accompanied by a lawful e-way bill, invoice and when it has paid the applicable IGST?...

Read More

HC allows Petitioner to file application seeking revocation of cancellation of GST registration

M. S. Retail Private Limited Vs Union of India (Karnataka High Court)

M. S. Retail Private Limited Vs Union of India (Karnataka High Court) Petitioner has presented this writ petition with a prayer inter alia to quash the order of ‘cancellation of registration’ dated 06.06.2020 passed by Assistant Commissioner of Commercial Taxes, Bangaluru. Learned AGA submitted that under Section 30 of the Cen...

Read More

Mere provision for bad debt not entitled to deduction U/s. 36(1)(vii)

Hajee A.P. Bava & Company Vs ACIT (Karnataka High Court)

Hajee A. P. Bava & Company Vs ACIT (Karnataka High Court) After 01.04.1989 it is not necessary for the assessee to establish the fact that the debt in fact had become irrecoverable and it is sufficient if the bad debt is written off as irrecoverable in the books of accounts of the assessee. In the […]...

Read More

Rate of depreciation in case of ATM machines

CIT Vs NCR Corporation Pvt Ltd (Karnataka High Court)

CIT Vs NCR Corporation Pvt Ltd (Karnataka High Court) Whether the tribunal is correct on facts and in law in holding that ATMs and encoders are computers eligible for 60% depreciation even when they do not provide processing activity and do not contain all features of computers and such cannot be called as computers? It […]...

Read More

RBI Responsible for Monitoring Compliance of Loan Moratorium Circular: HC

Velankani Information Systems Limited Vs Secretary, Ministry of Home Affairs (Karnataka High Court)

The contentions of the RBI that the dispute is between the Petitioner and Respondents is not acceptable since the dispute arises out of the implementation or not of a Circular issued by the RBI. RBI is therefore directed to monitor the implementation of the Circular, including verification of whether there are Board-approved policies form...

Read More

Transfer of land held as stock on HUF partition not amounts to conversion into Capital Asset

CIT Vs C. Ramaiah Reddy (Karntaka High Court)

The issue under consideration is whether land held as stock, transferred upon HUF - partition, tantamount to conversion into capital asset for the purpose of imposing a capital gain tax?...

Read More

Amendment in Section 40(a)(ia) vide Finance Act, 2010 are retrospective

A.Y. Garment International Private Ltd. Vs DCIT (Karnatka High Court)

A.Y. Garment International Private Ltd. Vs DCIT (Karnatka High Court) Whether the Tribunal was justified in law in holding that the amendment made by Finance Act, 2010 in the provisions of Section 40(a)(ia) of the Income-tax Act, 1961 is not retrospective in operation on the facts and circumstances of the case? The issue whether the [&hel...

Read More

Non-compete fees paid to employee is part of salary & hence Not Taxable in India as per DTAA

The Director of Income-Tax Vs Sasken Communication Technologies Ltd. (Karnataka High Court)

The issue under consideration is whether the amount paid to the employees under the non-compete agreement is covered by the expression ‘salary/profits in lieu of salary’ or not? and If not then whether the TDS will be applicable or not?...

Read More

GST: HC cannot be made middle authority between Tax & Appellate Authority

L&T Hydrocarbon Engineering Limited Vs State of Karnataka (Karnataka High Court)

L&T Hydrocarbon Engineering Limited Vs State of Karnataka (Karnataka High Court) Learned Additional Government Advocate Sri.Vikram Huilgol for respondent No.2 submits that the appeal under Section 107 of Central Goods and Services Tax Act, 2017 are to be filed before the appellate authority. As such the petitioner cannot be so hurry a...

Read More

ATM is considered as Computer hence Higher Depreciation rate allowed

CIT Vs NCR Corporation Pvt. Ltd. (Karnataka High Court)

High Court states that so long as functions of the computers are performed with other functions and other functions are dependant on the functions of the computer, ATMs are to be treated as computers and are entitled to higher rate of depreciation....

Read More

Multiple independent residential units in same building can be treated as one residential unit for section 54F Exemption

Shri. Navin Jolly Vs ITO (Karnataka High Court)

Multiple independent residential units in same building can be treated as one residential unit for section 54F Exemption and usage of the property has to be considered in determining whether it is a residential property or a commercial property ...

Read More

Wrongful Availment of ITC – Anticipatory Bail granted on bond of Rs.10 lacs

Sri Hanumanthappa Pathrera Lakshmana Vs State of Karnataka (Karnataka High Court)

The issue under consideration is that the petitioner filed writ petition for seeking grant of anticipatory bail, whether HC allow him the grant or not?...

Read More

Exemption u/s 10 & 11 cannot be granted merely based on section 12AA Registration

Director of Income Tax Vs ST. ANN's Education Society (Karnataka High Court)

The issue under consideration is whether the Income Tax benefit under section 10 and 11 will be granted on the basis of registration under section 12AA?...

Read More

Book profit | Section 10A deduction | HC refers matter back to ITAT

Yokogawa India Ltd Vs DCIT (Karnataka High Court)

The tribunal has held that net profits have to be determined as per the provisions of the companies Act and thereafter, the adjustments have to be made. It has further been held that the assessee cannot adjust the books of profit except as provided under the companies Act....

Read More

Section 40A(3) additions not justified when demand draft amount credited to bank account although not crossed

M. K. Agrotech Private Ltd Vs ACIT (Karnataka High Court)

M. K. Agrotech Private Ltd. Vs ACIT (Karnataka High Court) The main purpose of crossing a demand draft is to ensure that the payment is cleared by means of an account, i.e., the payment is deposited in the Bank Account i.e the person in whose favour the demand draft has been drawn. It ensures the […]...

Read More

CENVAT Credit Refund must be claimed within one year from date specified in Section 11-B

Suretex Prophylactics India Private Limited Vs Commissioner of Central Excise (Karnataka High Court)

In other words, time limit has to be computed from the last date of the last month of the quarter which would be the relevant date for the purposes of examining if the claim is filed within the limitation prescribed under Section 11-B or otherwise....

Read More

C-Form benefits cannot be rejected merely for belatedly filing

TATA Hitachi Construction Machinery Company Pvt. Ltd. Vs State of Karnataka (Karnataka High Court)

TATA Hitachi Construction Machinery Company Pvt. Ltd. Vs State of Karnataka (Karnataka High Court) The issue under consideration is whether Tribunal was correct in rejecting the C-Forms submitted by the petitioner and hence denying statutory benefits? The Appellate Tribunal at the threshold has rejected the declaration forms on the ground...

Read More

HC justifies addition of interest related to transaction with related party done with intention of deliberate tax evasion

Yenepoya Resins & Chemicals Vs DCIT (Karnataka High Court)

It has also been held that the appellant has deliberately created an artificial and colourable devise for reducing its income offered for taxation through an arrangement of letter of credit and thus, the deduction claimed by the assessee on account of interest paid to the bank and also to its creditors are not allowable....

Read More

No Service Tax on Clubs/Associations incorporated before 1.7.2012

Commissioner of Service Tax Vs Sobha Developers Ltd (Karnataka High Court)

Commissioner of Service Tax Vs Sobha Developers Ltd (Karnataka High Court) The issue under consideration is whether the principle of mutuality is applicable to services provided by the club to its members and does not amount to rendition of service from one person to another and would not be considered as taxable service for the […...

Read More

Section 14A Disallowance cannot be made if no expenditure was incurred to earn exempt income

CIT Vs Syndicate Bank (Karnataka High Court)

No deduction shall be allowed in respect of the expenditure incurred by the assessee in relation of the income which does not form part of his total income under the Act.  As assessee had not incurred any expenditure in relation to dividend income, therefore, no dis allowance could be made under section 14A....

Read More

Rent income from mall- Income from business or house property?

CIT Vs Prestige Estate Projects Pvt. Ltd. (Karnataka High Court)

The issue under consideration is whether tribunal was correct in holding rental income received from Forum Mall should be considered as 'Income from business' and not 'Income from house property', though agreement between landlord and tenant contemplating relationship of landlord and tenant and as such it would partake character of rental...

Read More

State Govt should take care of all categories of migrant workers: HC

Mohammed Arif Jameel Vs Union of India (Karnataka High Court)

Mohammed Arif Jameel Vs Union of India (Karnataka High Court) If there are complaints received by the State that some contractors or employers are confining the migrant workers to their shelters and are not permitting them to go to their respective home States, the State Government will have to attend to such complaints and will […...

Read More

Prosecution u/s 276B is not controlled either by section 201(1A) or section 221

Onora Hospitality Pvt. Ltd. Vs ACIT (Karnataka High Court)

Onora Hospitality Pvt. Ltd. Vs ACIT (Karnataka High Court) The issue under consideration is whether the prosecution of the petitioners for the offence punishable under section 276B of the Income Tax Act could be sustained without determination of the liability of the petitioners under section 201 of the Act? In the given case, it was [&he...

Read More

Principles of natural justice must be complied with before demanding GST interest

Union of India Vs LC Infra Projects (P.) Ltd. (Karnataka High Court)

Before penalizing the assessee by making him pay interest, the principles of natural justice ought to be complied with before making a demand for interest under sub section (1) of Section 50 of the GST Act. Consequence of demanding interest and non-payment thereof is very drastic....

Read More

Area declared as backward for section 80HH cannot be deemed as backward for Section 80IA

CIT Vs Endeka Ceramics (India) Pvt. Ltd. (Karnataka High Court)

CIT Vs Endeka Ceramics (India) Pvt. Ltd. (Karnataka High Court) Admittedly in the instant case, the industrial undertaking of the appellant-assessee is not located in the Industrial Backward District, which has been mentioned in the Notification issued by the Central Government. It is pertinent to note here that the first Notification was...

Read More

HC directs dept to consider petitioners claim for benefit under SVDLRS under Arrears Category

Ramesh Electricals Vs Union of India (Karnataka High Court)

Ramesh Electricals Vs Union of India (Karnataka High Court) Petitioners are invoking the writ jurisdiction of this Court, in substance for a direction to the respondents to permit them to avail the benefit in the ‘Arrears Category’ of SAB KA VISHWAS (LEGACY DISPUTE RESOLUTION) Scheme 2019. The apprehension of the petitioners t...

Read More

Entities registered under Karnataka Souharda Sahakari Act, 1997 fit into definition of co-operative society

Swabhimani Souharda Credit Co Operative Ltd Vs Government of India (Karnataka High Court)

Swabhimani Souharda Credit Co Operative Ltd Vs Government of India (Karnataka High Court) Petitioner  is a Credit Cooperative, registered under the Karnataka Souharda Sahakari Act, 1997; petitioner is registered as the State Federal Cooperative, as provided under Section 33 of the said Act; they have knocked at the doors of writ court in...

Read More

Sum received by father for transfer of mining lease right | Deemed dividend | Section 2(22)(e)

CIT Vs Basant Poddar (Karnataka High Court)

It was held that Amount received by assessee from his father out of  sum received by father for transfer of mining lease right to a Company in which assessee was shareholder cannot be treated as deemed dividend income of the assessee under section 2(22)(e) as sum was not received on behalf of Assessee and it was for a commercial transact...

Read More

ITC cannot be claimed by mere filing of VAT Form 240 without filing of return

MFAR Constructions Pvt. Ltd. Vs Additional Commissioner of Commercial Taxes (Karnataka High Court)

MFAR Constructions Pvt. Ltd. Vs Additional Commissioner of Commercial Taxes (Karnataka High Court) Return is the basis on which the computation of tax liability has to be made including the input tax credit in terms of Section 10[3] and Section 10[4] of Karnataka Value Added Tax Act, 2003. It is not in dispute that no […]...

Read More

Tax on consumption of Electricity by person generating electricity is valid: HC

Harekrishna Metallics Pvt. Ltd. Vs State of Karnataka (Karnataka High Court)

Harekrishna Metallics Pvt. Ltd. Vs State of Karnataka (Karnataka High Court) Section 4[3] of the Karnataka Electricity [Taxation on Consumption] [Amendment] Act, 2013 deals with the payment of tax. In terms of sub-section [3] of Section 4, the incidence of tax is on the consumption. The consumption of electricity relates to every person g...

Read More

Revision of declaration in FORM GST TRAN- 1 can be made once: HC

Atria Convergence Technologies Ltd Vs Union of India (Karnataka High Court)

Atria Convergence Technologies Ltd Vs Union of India (Karnataka High Court) The Rule 120A provides for revision of declaration. In the event of the registered person who had submitted a declaration electronically in FORM GST TRAN-1, intends to revise such declaration once, this provision can be invoked. This provision makes it clear that ...

Read More

Show cause notice is sine qua non to proceed with recovery under GST

LC Infra Projects Pvt. Ltd. Vs Union of India (Karnataka High Court)

LC Infra Projects Pvt. Ltd. Vs Union of India (Karnataka High Court) Section 73 of the Chapter XV of the Act – contemplates that where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised […]...

Read More

Karnataka HC explains disqualification of directors | Section 164(2)

Yashodhara Shroff Vs. Union of India (Karnataka High Court)

Yashodhara Shroff Vs. Union of India (Karnataka High Court) (a) It is held that Section 164(2)(a) of the Act is not ultra vires Article 14 of the Constitution. The said provision is not manifestly arbitrary and also does not fall within the scope of the doctrine of proportionality. Neither does the said provision violate Article […...

Read More

Financial stringency not justify non-remittance of TDS – Penalty Justified

KBR Infratch Ltd. Vs. ACIT (Karnataka High Court)

Financial stringency would not justify the non-remittance of TDS to the Government, in as much as, it would amount to utilization of money payable to the appropriate government. As such, by extending its benevolence....

Read More

No immunity to companies from prosecution for offences for which punishment prescribed is mandatory imprisonment

Dr. Viloo Patell Vs DCIT (Karnataka High Court)

 We hold that there is no immunity to the companies from prosecution merely because the prosecution is in respect of offences for which the punishment prescribed is mandatory imprisonment....

Read More

Unutilized amount in Capital Gain A/c can be withdrawn post Tax deduction

Prof. P. N. Shetty Vs ITO (Karnataka High Court)

Prof. P. N. Shetty Vs ITO (Karnataka High Court) If only a part of the amount deposited in the Capital Gains Account Scheme is utilized for the construction or purchase of a new asset within the specified time, income tax is chargeable on the unutilized amount. That is why the learned Single Judge, by the […]...

Read More

Validity of trust deed for stamp duty cannot be determined by DC: HC

Sri B R Jagadhish Vs District Registrar & Deputy Commissioner for Stamps (Karnataka High Court)

Deputy Commissioner for Stamps (DC) erroneously directed assessee to pay stamp duty under Article 28(a) of the Stamp Act without properly examining the recitals of the document where the relationship of the donor and the donee was clearly mentioned and without looking into the provisions of Sections 2 and 3 of the Stamp Act, therefore, th...

Read More

Mistake by CA in filing Form 240 not attracts Section 69[1] of VAT Act: Karnataka HC

Fresh and Honest Cafe Limited Vs DCIT (Karnataka High Court)

In a recent case of M/s. Fresh and Honest Cafe LTD. V. The Deputy Commissioner [Ct] and Anr. (Karnataka High Court) , a ruling was stated by Justice S. Sujatha (Karnataka High Court) that stats that any mistake said to have been committed by a learned CA in filing VAT Form 240 will not be seen as an intentional mistake and further not lev...

Read More

Entry Tax on Unmanufactured Tobacco in ‘Sealed Container’ is Justified: HC

Giriraj Enterprises Vs State of Karnataka (Karnataka High Court)

HC held that The Notification impugned dated 1.10.2013 issued by the Government of Karnataka insofar it relates to the amendment made to the Notification dated 30.3.2002 for insertion of sub-item [ii] in Serial No.[5], specifying unmanufactured tobacco in 'sealed container' for levy of Entry Tax at 5% with effect from 02.10.2013 cannot be...

Read More

A person cannot be treated as Principal Officer on Mere surmises & conjectures

Sri A. Harish Bhat Vs ACIT (Karnataka High Court)

To treat any person as a Principal Officer, such person should be connected with the management or administration of the local authority/company or association or body. Such connection with the management or administration is the basis for treating any person as a Principal Officer....

Read More

No TDS on Agreement for Bulk Sale of Advertisement Space

Times VPL Limited Vs CIT (Karnataka High Court)

Times VPL Limited Vs CIT (Karnataka High Court) In the instant case, appellant company had enter into an agreement for bulk sale of advertising space with its’ holding company on a principal to principal basis by transfer of rights therein. The appellant under the agreement makes purchase of advertisement space and exercises control...

Read More

Writ cannot be filed for release of goods if appeal is pending before Commissioner

Kalebudde Logistics Vs Commercial Tax Officer (Karnataka High Court)

Kalebudde Logistics Vs Commercial Tax Officer (Karnataka High Court) When the appeal is pending against the main order, the petitioner could not have filed writ petition for release of goods which are subject matter of appeal. Section 129 and 130 of the Act provides for release of goods on payment of fine. Accordingly, the writ […]...

Read More

Assessment not valid if AO fails to consider deduction/exemption claimed

Sri Deepak Dhanaraj Vs ITO (Karnataka High Court)

Sri Deepak Dhanaraj Vs ITO (Karnataka High Court) In this case AO has not whispered about the revised return filed by the assessee except observing that the returns filed by the assessee were invalidated being defective returns. If that being the position, no opportunity was provided to the petitioner under section 139(9) of the Act [&hel...

Read More

Order passed U/s. 254(2) cannot be rectified or amended by invoking of section 254(2) once again

Pr. CIT Vs Alpana Bhartia (Karnataka High Court)

Tribunal in exercise of its power under sub-section (2) of section 254 had rectified the mistake apparent on record and deleted the double addition of income in respect of assessee. Thereafter, Revenue again filed an application under sub-section (2) of section 254 seeking rectification of order passed under sub-section (2) of section 254...

Read More

HC dismisses writ filed as alternate remedy except to file present writ petition was exist

Sri Nayaz Ahmed Vs  State of Karnataka (Karnataka High Court)

Sri Nayaz Ahmed Vs  State of Karnataka (Karnataka High Court) State counsel to accept notice for respondents. 2. In the instant petition, the petitioner has sought for quashing the Order, dated 4-2-2019 vide Annexure-C, passed under section 83(1) read with section 5(3) of Karnataka Goods and Services Act of 2017 (hereinafter referred ...

Read More

Section 281B order ceased to have effect after expiry of six months from the date of assessment order

Duo Meadows (P.) Ltd. Vs ITO (Karnataka High Court)

The order passed by the Assessing Officer under Section 281B of the Act has been ceased to have effect after the expiry of six months from the date of the order of the assessment. Hence, the  apprehension  of the petitioner regarding the enforcement of the provisional attachment further would not arise and the same can be allayed with a...

Read More

AO has a legal obligation to implement order of ITAT strictly: HC

Lokesh Chandrappa Vs ITO (Karnataka High Court)

Lokesh Chandrappa Vs ITO (Karnataka High Court) It is trite law that the Assessing Officer has a legal obligation to implement the order of the ITAT strictly and such failure would result in the failure of justice. A writ of mandamus would be issued in such circumstances to the respondent – Assessing Officer to carry […]...

Read More

Anonymous donation towards construction of building eligible for Section 11 exemption

CIT Vs. MBA Nahata Charitable Trust (Karnataka High Court)

CIT Vs. MBA Nahata Charitable Trust (Karnataka High Court)  The records clearly disclose that the assessee is a Charitable Trust duly registered under Section 12A of the Act. For the assessment yetirs referred to above, the assessee had filed return of income shoving receipt of donations towards the building fund. Originally, the return ...

Read More

Mere delay in TDS deposit in time is offense sufficient to attract Section 276B

Golden Gate Properties Ltd Vs DCIT (Karnataka High Court)

Golden Gate Properties Ltd Vs DCIT (Karnataka High Court) Section 278AA makes it clear that in order to get over the penal consequences that follow on account of non-payment of tax deducted at source, it is open for the accused persons to come clean of the said charge by showing reasonable cause for failure to […]...

Read More

Section 54F Unutilized capital gain taxable as income u/s 45 after 3 Years

Prof. P.N. Shetty Vs ITO (Karnataka High Court)

Unutilized capital gain amount under Section 54 F[4] had to be charged under Section 45 as income of the previous year, after the expiry of three years from the date of sale of the capital asset as per proviso appended to Section 54F[4] and withdrawal of amount was permitted subject to deduction of tax....

Read More

HC grants Anticipatory bail against arrest under GST for alleged bogus billing

Mr. Mahendra Kumar Singhi Vs Commissioner of Commercial Taxes (Karnataka High Court)

Mr. Mahendra Kumar Singhi Vs Commissioner of Commercial Taxes (Karnataka High Court) Though several contentions have been raised with reference to initiation of the action under the GST Act and CST Act, since the scope of these petitions is limited only to consider the bail applications, the other points which have been raised are not [&h...

Read More

Fake GST invoices: Circumstances under which bail can be granted

B. Banu Bee Vs State of Karnataka (Karnataka High Court)

B. Banu Bee Vs State of Karnataka (Karnataka High Court) This Court in the case of Sri. Avainash Aradhya Vs. the Commissioner of Central Tax in Criminal Petititon No.497/2019 c/w Criminal Petition No.498/2019 by order dated 18.2.2019 has elaborately discussed the provisions of law and other aspects as to under what circumstances the bail ...

Read More

SARFAESI: Only secured creditors can initiate action against borrower

Trishul Developers Vs L & T Housing Finance Limited (Karnataka High Court)

SARFAESI Act provides only secured creditors to initiate action against the borrower and a demand made by a person or legal entity who was not the secured creditor was definitely prejudicial to the interest of assessee....

Read More

HC quashed reassessment notice u/s 148 against Infosys Ltd.

Infosys limited Vs DCIT (Karnataka High Court)

Reopening of assessment on basis of withdrawal of deduction allowed under Section 10A relating to the assessment year 2007-08 was without application of mind and nothing but the change of opinion, which tantamounted to review and the same was not permissible to initiate the proceedings under Section 147/148....

Read More

ITC Benefits cannot be denied to purchaser merely for subsequent de-registration of selling dealers

M/s Onyx Designs Vs Assistant Commissioner of Commercial Taxes (Karnataka High Court)

M/s Onyx Designs Vs The Assistant Commissioner of Commercial Taxes (Karnataka High Court) Conclusion: In absence of any other allegations made against the purchasing dealer in the assessment orders, merely for the reason that selling dealers had not deposited the collected tax amount or some of the selling dealers had been subsequently de...

Read More

Vehicle can be released if Assessee submits Bank Guarantee for value of goods in question

SRS Travels/Logistics Vs Joint Commissioner of Commercial Taxes (Karnataka High Court)

SRS Travels/Logistics Vs Joint Commissioner of Commercial Taxes (Karnataka High Court) Section 129 of the Karnataka Goods and Services Tax Act, 2017 empowers detention and seizure of the vehicle that was used for transportation of goods in question and therefore, the order cannot be faltered. However, having argued the matter for some tim...

Read More

HC allows Deduction U/s. 54 despite Delay in construction

Pr. CIT Vs Dilip Ranjrekar (Karnataka High Court)

Pr. CIT Vs Dilip Ranjrekar (Karnataka High Court) In the instant case, the investment is made in a new property. The construction was not completed within a period of three years as narrated in section 54 of the Act. The delay was not because of the assessee, but beyond his control, since the construction was […]...

Read More

No Confiscation unless GST Tax and Penalty is quantified

Shree Enterprises Vs CTO  (Karnataka High Court)

Shree Enterprises Vs CTO  (Karnataka High Court) Facts- Petitioners have challenged the order of confiscation as illegal, seeking all consequential reliefs. Petitioners are claiming to be the consignee and transporter of the goods in question. It is their contention that the Respondent has detained the goods and vehicle illegally for mor...

Read More

Payment for bandwidth charge utilization was royalty & TDS applicable

CIT Vs Infosys Technologies Ltd. (Karnataka High Court)

CIT Vs Infosys Technologies Ltd. (Karnataka High Court) Payment for bandwidth charge utilization was royalty and TDS was required to be deducted under section 195 of Income Tax Act, 1961 and on failure to deduct TDS, the disallowance under section 40(a)(i) was rightly made by the Assessing Officer. FULL TEXT OF THE HIGH COURT ORDER [&hell...

Read More

HC expresses concern at tendency of Dept to file unnecessary appeals u/s. 260-A

Pr. CIT(A) Vs M/s Bank Note Paper Mill (Karnataka High Court)

Pr. CIT (A) Vs M/s Bank Note Paper Mill (Karnataka High Court) HC expresses concern and anguish at the tendency of the Revenue Department to file unnecessary appeals u/s. 260-A of the Act even though the issues are ex facie covered by the decision of the jurisdictional High Courts or even the Hon’ble Supreme Court […]...

Read More

Object & Purpose of GST Transitional Provisions needs to be achieved

Yokogawa India Ltd Vs Union of India (Karnataka High Court)

Yokogawa India Ltd Vs Union of India (Karnataka High Court) Facts Assailing the communication dated 22.03.2019 issued by the respondent No.6, Petitioner inter alia seeks a direction to the respondents to enable them to revise their Form GST TRAN-1 in order to transit the amount of Rs.4,31,32,066/- in the Electronic Credit Ledger in terms ...

Read More

TP disputes on Comparables & Filter selection are not substantial question of law

Pr. CIT Vs M/s Softbrands India P. Ltd. (Karnataka High Court)

In transfer pricing disputes, comparability analysis and use of appropriate filters has been one of the most prevalent issues, especially for captive cost plus remuneration service providers....

Read More

Karnataka HC allows revision of GST Tran-1 for non-technical errors

M/s. Kongovi Private Limited Vs. Union of India (Karnataka High Court)

M/s. Kongovi Private Limited Vs. Union of India (Karnataka High Court) The petitioner was aggrieved by the action of the Revenue in not permitting it to correct an error which occurred when filing Form GST TRAN-1, due to which the eligible credit under the earlier indirect tax law could not be transferred to the electronic […]...

Read More

HC allows revision of GST TRAN-1 for errors due to Technical reasons

M/s Atria Convergence Technologies Ltd Vs Union of India (Karnataka High Court)

M/s. Atria Convergence Technologies Ltd Vs Union of India (Karnataka High Court) Court is of the considered opinion that the petitioner is entitled to revise or rectify the errors in the FORM GST TRAN-1 in terms of Rule 120A wherein the Commissioner is empowered to extend the time period specified in Rule 117. As the […]...

Read More

HC grants conditional anticipatory bail in fake invoice Case

Sri Avinash Aradhya Vs Commissioner of Central Tax (Karnataka Higth Court)

High Court in the case of assessee had held that by taking into consideration the gravity of the offence and punishment which was liable to be involved where assessee was indulged in issuing fake invoices without actual supply of goods with an intention to fraudulently avail the input tax credit, accused assessee's were given anticipatory...

Read More

Nodal officer obliged to consider complaint for bona fide error in TRAN-1

Pragati Automotion (P.) Ltd. Vs Union of India (Karnataka High Court)

Pragati Automotion (P.) Ltd. Vs Union of India (Karnataka High Court) The petitioner is before this Court seeking a direction to the respondents to permit the petitioners to correct the bonafide error which has crept in while filing the GST Tran – 1 form because of which the petitioner is deprived of the transitional credit of [&hellip...

Read More

Rental Income from Sublease of Office Premises to be Considered for Section 10A Benefit

Subex Limited Vs. ITO (Karnataka High Court)

Subex Limited Vs. ITO (Karnataka High Court) Facts of the case: Subex Limited (taxpayer), a public limited company, is engaged in the business of development and export of software. The taxpayer is a 100% Export Oriented Unit (EOU) approved by the Software Technology Park of India (STP). The taxpayer had entered into a non-cancelable leas...

Read More

Entertainment Tax payable on payment for admission to Fashion Show

Dream Merchant Vs State of Karnataka (Karnataka High Court)

Dream Merchant Vs. State of Karnataka (Karnataka High Court) The features of the event organised by the appellant had been, as noticed, quite different. It had been a ‘fashion show’, where there had been sponsorship and advertisements; where the apparels and dresses of various manufacturers were put in exhibition on mannequins...

Read More

Remedy U/s. 264 could not be treated as regular remedy by passing regular remedy of appeals

Nataraju (HUF) Vs PCIT (Karnataka High Court)

Remedy under section 264 could not be treated as regular remedy by passing regular remedy of appeals. Where assessee preferred petition under section 264 deliberately avoiding availing of regular remedy, it was rightly rejected and therefore, writ petition was to be dismissed....

Read More

HC explains ‘application of income’ vs. ‘diversion of income by overriding title’

PCIT Vs M/s. Chamundi Winery and Distillery (Karnataka High Court)

PCIT Vs M/s. Chamundi Winery and Distillery (Karnataka High Court)  It is clear that the Courts and the Tax Authorities can look into the real purpose of the commercial arrangements and transactions to reach the truth and the transactions having the sole purpose of tax avoidance may be held to be having no effect on […]...

Read More

Browse All Categories

CA, CS, CMA (5,045)
Company Law (6,708)
Custom Duty (8,081)
DGFT (4,386)
Excise Duty (4,406)
Fema / RBI (4,433)
Finance (4,694)
Income Tax (35,069)
SEBI (3,754)
Service Tax (3,626)

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30