SIGH OF RELEIF FOR THE HONEST TAXPAYERS

The Hon’ble High Court of Calcutta held that Input Tax Credit (ITC) of the purchasing dealer cannot be denied by the department on the ground that the supplying dealer has not remitted the tax collected unless in an extraordinary case where the supplier is missing or in situation where it is impossible for the department to collect tax from the supplier. ?The High Court had passed the order in favour of the Taxpayer stating that the department shall not deny ITC to the purchasing dealer on default of supplier.

Being aggrieved with the decision of Calcutta High Court, the Department filed an Special Leave Petition (SLP) in the Supreme Court, challenging the decision (Diary No. 44241/2023) and today the Hon’ble Two Judge Bench of Supreme Court has dismissed the department’s Special Leave Petition and upheld the decision of Calcutta High Court marking a significant win for honest and genuine taxpayers.

Adv Nidhi Nawal