Tax INFORM- December 2023

The thirty-sixth issue of our monthly tax newsletter – Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax – 

Domestic Tax Rulings:

  • Revenue cannot pass final order when objections are pending before Dispute Resolution Panel: Delhi HC.
  • Bombay HC upholds constitutional validity of Section 2(24)(xviii) of the Income Tax Act, 1961, which brings subsidies or grants from government within the purview of “income”.
  • Assessee can invoke the DTAA or provisions of the Income Tax Act, 1961, whichever is beneficial to it: Mumbai ITAT.

Notifications/ Circulars:

  • CBDT notifies exemption for Godavari River Management Board.
  • CBDT relaxes time limit for filing refund claims.
  • CBDT modifies guidelines for SFT submission for mutual fund transactions.

Indirect Tax – 

Goods & Services Tax

Case Laws:
  • Bombay HC acknowledges bona fide error by Assessee, directs revenue authorities to allow amendment or rectification of Form GSTR-1.
  • Notice issued under Section 74 of the CGST Act has to be accompanied by a summary in electronic form: Delhi HC.
  • Allahabad HC holds that if goods are found with a proper tax invoice and an E-way bill belonging to the Assessee, he will be deemed to be the owner of the goods.
  • When Assessee seeks rectification of mistake in Form GSTR-3B, revenue authorities should consider it as a rectification application: Kerala HC.
  • Search erroneous if none of the grounds set out in authorization for the search are made out from the material on record: Delhi HC.
Notifications/ Circulars:
  • CBIC mandates serving summary of notices and demands electronically.
  • CBIC emphasises need for case-specific examination of each secondment arrangement.