Karnataka HC rules 10 crore collected during a GST search was non-voluntary and illegal. HC ordered department to refund amount with 6% annual interest to taxpayer.
Karnataka High Court confirms that secured creditors can recover dues from property before GST claims if their SARFAESI Act charge predates the GST encumbrance, ensuring proper auction proceedings.
Karnataka High Court rules that duty on capital goods imported by an EOU is not leviable if the goods are installed and used for manufacturing, even if the export obligation is unfulfilled. Penalties under Section 112(a) are also invalidated.
The ruling reinforces that Section 80P(4) bars co-operative societies from claiming deductions on income from co-operative banks, even if registered under the Co-operative Societies Act.
Karnataka High Court held that the Rs.25 lakh addition towards gross profit was unsustainable, as the Assessing Officer and Tribunal failed to provide a rational basis for estimation, despite proper books of account and explanations regarding exchange rate fluctuations.
The Karnataka High Court dismissed the Revenue’s appeal, ruling that the definition of tax arrear under the Direct Tax Vivad Se Vishwas Act, 2020, explicitly covers interest charged under Sections 234A, 234B, and 234C, provided it relates to the disputed tax.
The Court upheld ITAT and CIT(A) findings that jewellery cash sales on the eve of demonetization were genuine and supported by invoices and stock records, dismissing Section 68 addition of ₹6.61 crore.
The Karnataka High Court rejected a Revenue appeal concerning the taxability of Fees for Technical Services (FTS) under the India-USA DTAA due to the tax effect being below the ₹2 Crore threshold set by the CBDT’s latest circular.
Karnataka HC ruled that refund of unutilised Input Tax Credit under Section 54(3)(ii) of CGST Act is permissible even if input and output goods are identical, holding that restriction in earlier circulars was deleted and revised circular applies retrospectively.
Karnataka HC rules GST provisional attachment requires mandatory initiation of specific proceedings (Sec 83). Pre-decisional hearing isn’t required, but summons alone is insufficient.
