Tax INFORM- July 2024

The forty-third 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:

• Gujarat HC holds that Section 54 does not mandate disclosure of cash consideration amount received when claiming exemption.
• Compensation received by ITC on relinquishment of right to operate hotel as licensee constitutes revenue receipt: Calcutta HC.
• SC dismisses SLPs challenging order pulling up reopening of assessment and disallowance of amount claimed under VAT provisions as bad in law in absence of allegation by AO that assessee failed to disclose material facts.

Indirect Tax – 

Goods & Services Tax

Case Laws:

• Calcutta HC rules that payment of tax during course of search cannot be considered voluntary, and orders GST authorities to refund the amount.
• Transportation of goods, after customs clearance, from the port to petitioner’s own factory cannot be termed as supply under Section 7: Bombay HC.
• Madras HC takes note of rectification of inadvertent error in GSTR-3B, sets aside assessment order thereby lifting bank account attachment.

Notifications/ Circulars:

• Circular No.229/23/2024-GST dated 16/07/2024
• Circular No.213/07/2024-GST dated 26/06/2024
• Circular No. 219/13/2024-GST dated 26/06/2024
• Circular No.211/5/2024-GST dated 26/06/2024
• Circular No.223/17/2024-GST dated 10/07/2024