The Karnataka High court has held that the Input Tax Credit (ITC) cannot be denied merely for non-furnishing foreign inward remittance certificates in prescribed format.
The bench of Justice Suraj Govindaraj has observed that where the assessee has the documents, in the statement of objections which had been filed, the assessee had indicated the reconciliation which had been made. Of course, the same was not indicated in the format as desired by the department, which had been communicated to the petitioner. Merely because it was not in terms of the format, the department could not have come to a conclusion that there are no documents which have been furnished when details thereof had already been furnished.
The petitioner/assessee raised the issue whether the petitioner had submitted the required details to the assessing authority and whether those documents were duly considered before passing the order.
The question can be answered in a very short manner in as much as the details though furnished were submitted belatedly on 05.05.2024 when the order was passed on 30.04.2024 and as such, the same could not be considered by the first respondent. However, when an appeal had been filed before the second respondent, these documents were placed on record and it was requested by the petitioner for those documents to be considered. The second respondent has refused to consider the same on the ground that it had not been furnished to the first respondent within time and that the appeal was deleted.
The court has held that the petitioner has been deprived of a valuable right in consideration of the documents which had been placed by the petitioner for consideration before the second respondent, if not before the first respondent.
Case Details
Case Title: M/S Benayah Solutions Versus The Assistant Commissioner Of Commercial Taxes
Case No.: WRIT PETITION NO. 8477 OF 2025 (T-RES)
Date: 04/07/2025
Counsel For Petitioner: VINAY.S, AND SMT. MARY SAVITHA
Counsel For Respondent: M.DILIP, ADVOCATE
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