Gujarat High Court Reaffirms Mandatory Draft Order In Transfer Pricing Officer Assessments

The Gujarat High Court has held that failure to issue a draft assessment order under Section 144C in cases involving Transfer Pricing Officer (TPO) adjustments renders the final assessment order void. The Court emphasised that an “eligible assessee” must be issued a draft order in terms of Section 144C, including cases with TPO adjustments, and that skipping this step deprives the assessee of the statutory right to approach the Dispute Resolution Panel (DRP). A Division Bench comprising Justice...

Ten-Year Limitation Bars Reopening Assessment For AY 2015-16: Gujarat High Court

The Gujarat High Court on 5 January held that a notice to reopen an assessment is barred by limitation if issued beyond ten years from the end of the relevant assessment year A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi was hearing a case which included four different but legally identical writ applications. It clarified that under Section 153A(b) of the Income Tax Act, 1961, the “relevant assessment year” must be computed backwards from the end of the search year....

How Can Trademark Registry Restrict Use Of A Mark Without Reasons, Gujarat High Court Orally Asks?

The Gujarat High Court on Friday (January 16) orally questioned the Registrar of Trademarks on why the adjudicating authority had permitted advertisement of a trademark in the Trademark Journal with restrictions, without recording any reasons for imposing such conditions. Justice Niral R. Mehta was hearing an appeal arising from a 2020 order of the trademark authority, which had conditionally accepted an application for registration of the “Family Farms” logo with the tagline “Ye Ghar Ki Baat...

GST| Tobacco In Small Retail Packs Classifiable As 'Chewing Tobacco': Gujarat High Court

The Gujarat High Court, in a bunch of matters concerning classification of Raw Tobacco Leaves packed and sold in retail pouches, were classifiable as 'Chewing Tobacco' irrespective of whether it was scented, fermented or liquored and re-packed or re-labelled. In a recent judgment delivered by a Division Bench comprising Justice Bhargav D. Karia and Justice Pranav Trivedi, rejected the Tobacco Manufacturers stance that Tobacco without being fermented or liquored ceases to be a “Chewing...

'Lame Excuses': Gujarat High Court Refuses To Condone Delay In Filing GST Appeal On Ground Of Illness Of Accountant, Closure Of Business

The Gujarat High Court dismissed a plea challenging order of the appellate authority which had rejected the assessee's GST appeal filed belatedly, observing that it cannot quash the order in wake of the "lame excuse" given by the petitioner for condoning delay such as illness of the Accountant and closure of business.The petitioner had filed an appeal before the Commissioner (Appeals) challenging a 24.04.2024 order which was rejected on the ground that the same is not maintainable and time ...

S.148A Income Tax Act | Gujarat High Court Quashes Reopening Of Assessment, Says AO Conducted Roving Inquiry Despite Being Given All Details

The Gujarat High Court quashed proceedings reopening the assessment of a man whose income had allegedly escaped assessment, after noting that despite the assessee explaining all banking transaction details, the assessing officer had travelled beyond the law and conducted a roving inquiry. For context, Section 148A of the Income Tax Act pertains to conducting of inquiry by assessing officer before he issues notice to assesee in cases where income has escaped assessment. The petitioner...

Income Tax Act | Gujarat High Court Quashes S.153C Assessment As Time-Barred, Rejects Revenue's Reliance On S.153(6)(i)

The Gujarat High Court quashed assessment order as well as a demand notice issued to an entity under Section 153C Income Tax Act after noting that the assessment order was issued invoking Section 153(6)(i) was beyond the limitation period. The petitioner had moved the high court for quashing Assessment Order dated 30.04.2024 as well as the demand Notice dated 30.04.2024 for the Assessment Year 2011-12. It was contended that the assessment order passed by the respondent was clearly barred by...

Gujarat High Court Upholds CESTAT's Order Rejecting Plea To Restore Delay Condonation Application Filed After 7 Yrs

The Gujarat High Court upheld an order of the Customs, Central Excise and Service Tax Appellate Tribunal which had dismissed a cooperative society's plea seeking restoration of its condonation of delay application on the ground that it was filed after an inordinate delay of 7 years.The court noted that the petitioner had not provided any explanation for such delay except that it was facing a financial constraint and thus could not track the proceedings before the tribunal, observing that the...

Gujarat High Court Grants Relief After Transfer Pricing Objections Were Mistakenly Filed Before Wrong Authority, Quashes Final Assessment

The Gujarat High Court recently granted relief to a company which had inadvertently filed its objections to a proposed transfer pricing adjustment for Assessment Year 2022-23 before the jurisdictional assessing officer instead of filing it before the faceless authority.The petitioner had sought quashing of final Assessment Order dated 02.05.2025 passed under Section 143(3) read with Section 144C (3) and Section 144B of the Income Tax Act, for Assessment Year 2022-23. The petitioner...

Customs Act | Gujarat High Court Upholds CARR Ruling Allowing Duty Free Import On Inshell Walnuts Treating It As 'Dietary Fibre'

The Gujarat High Court upheld ruling of Customs Authority for Advance Rulings granting exemption from payment of Basic Customs Duty for inshell-walnuts imported by an entity treating the goods as "dietary fibre". The respondent- assessee is a transferee of Duty-Free Import Authorisations issued against the export of Assorted Confectionary Products (SION E-1) and Biscuits (SION E-5).The respondent had filed an application under Section 28H(Application for advance ruling) Customs Act before...

S.153C Income Tax Act | Gujarat High Court Quashes Assessment Proceedings Citing 2-Yr Delay & Lack Of Date In 'Satisfaction Note'

The Gujarat High Court quashed a Section 153C Income Tax Act proceedings against a company after noting that the assessing officer's satisfaction note did not bear any date and that the note, though recorded in 2022 was "supplied" to the company only in 2024 i.e., after a delay of two years without any explanation. For context, Section 153C empowers the tax authority to assess the income of any person whose documents or assets are found during a search or seizure operation on a different...

Gujarat High Court Restores GST Registration Noting Payment Of Outstanding Tax, Interest, Late Fee In Electronic Cash Ledger

The Gujarat High Court has restored GST registration subject to compliance with filing of pending returns and payment of outstanding tax with interest, late fee and penalty. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi permitted filing of GST returns for past period after noting copy of GST Returns for the period from April 2022 to December 2024, self-ascertained tax liability discharged through Electronic Cash Ledger. Petitioner sought for quashing of...