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Revisionary jurisdiction cannot reopen share capital assessments where adequate inquiry supports a permissible view and no independent error is establ...
Reassessment jurisdiction fails where unverified portal information is aggregated without examining the taxpayer's explanation or relevance of entries...
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Preliminary-expense amortisation and MAT exempt-income adjustments prevailed, while trademark costs and managerial remuneration require fresh verifica...
Export valuation requires contemporaneous evidence; unrelated invoices cannot prove overvaluation, and dual penalties on firm and partner are impermis...
The High Court upheld the validity of the impugned order u/s 107(11) of the Karnataka Goods and Services Act, 2017. The petitioner's contention that the adjudicating authority erred by not taking action against the supplier and ignoring tax invoices and tax payments was rejected. The court held that the purchasing dealer must prove the actual physical movement of goods unless purchased from respective dealers. Failure to establish this aspect justifies rejection of Input Tax Credit (ITC) claims by the assessing officer, as per the Supreme Court's judgment in The State of Karnataka v. M/s Ecom Gill Coffee Trading Private Limited. Although the petitioner produced documents showing the supplier's existence and business continuity, the vehicles transporting the goods were not traced and appeared fraudulent. Section 16(2)(c)(d) was applicable, and the burden of proving ITC eligibility lies on the purchaser u/s 155. The revenue can recover tax from the purchaser if the supplier failed to pay. The appellate authority rightly confirmed the order rejecting the petitioner's ITC claim. The High Court found no malice, arbitrariness, or illegality in the order and dismissed the writ petition.
The High Court upheld the validity of the impugned order u/s 107(11) of the Karnataka Goods and Services Act, 2017. The petitioner's contention that the adjudicating authority erred by not taking action against the supplier and ignoring tax invoices and tax payments was rejected. The court held that the purchasing dealer must prove the actual physical movement of goods unless purchased from respective dealers. Failure to establish this aspect justifies rejection of Input Tax Credit (ITC) claims by the assessing officer, as per the Supreme Court's judgment in The State of Karnataka v. M/s Ecom Gill Coffee Trading Private Limited. Although the petitioner produced documents showing the supplier's existence and business continuity, the vehicles transporting the goods were not traced and appeared fraudulent. Section 16(2)(c)(d) was applicable, and the burden of proving ITC eligibility lies on the purchaser u/s 155. The revenue can recover tax from the purchaser if the supplier failed to pay. The appellate authority rightly confirmed the order rejecting the petitioner's ITC claim. The High Court found no malice, arbitrariness, or illegality in the order and dismissed the writ petition.
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