Advancement Of General Public Utility Won't Be "Charitable Purpose" For Income Tax Exemption If It Is Done As Business : Supreme Court

In a significant judgment, the Supreme Court has held that entities created with the object of advancing general public utility cannot seek exemption under the Income Tax Act 1961 under the head "charitable purposes" if they are engaging in any trade, business, commerce or providing any service for any consideration.However, in the course of carrying out the general public utility, the assessee can engage in incidental trade or business or provide services for consideration and can generate...

Payment Made By Assessee To Non-Resident Supplier Amount To "Royalty" And Liable To Deduct TDS: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the payment made by the assessee to the non-resident supplier would amount to royalty and there is an obligation on the part of the assessee to deduct tax at source.The two-member bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the introduction of Explanation 5 in Section 9(1)(iv) of the Income Tax Act has enlarged the scope of the definition of "Royalty".As per...

IT Exemption To Defence Personnel Invalidated From Service Due To Disability: ITAT Rejects Revenue's Contention

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax exemption shall be available to Defence Forces personnel who have been invalidated from service on account of bodily disability while in service.The two-member bench of Chandra Mohan Garg (Judicial Member) has deleted the addition made by the A.O. on account of disability pension not exempt from tax as the assessee had taken premature retirement at his own request.The appellant/assessee is a retired employee of...

Tax Cases Weekly Round-Up: 9 October To 15 October, 2022

Supreme court Supreme Court Directs Andhra Pradesh To Transfer To Jharkhand CST Collected From Tata Motors In Respect To Sale To APSRTC Case Title: Tata Motors Limited Versus Central Sales Tax Appellate Authority & Others Citation: 2022 LiveLaw (SC) 847 The Supreme Court has directed the state of Andhra Pradesh to transfer to Jharkhand the amount of central sales tax deposited by Tata Motors with respect to the sale of buses to the Andhra Pradesh State Road Transport...

Cess Received By Trust From Milk Societies, Against Sales Made , Not Voluntary; Can't Be " Corpus Donation": ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the Cess received by a trust from the milk supplying societies, against the sales made by them to the Cooperative Milk Producers Union, cannot qualify as a "Corpus Donation" under the Income Tax Act, 1961, since they are not voluntary in nature. The Bench of Siddhartha Nautiyal (Judicial Member) and Annapurna Gupta (Accountant Member) observed that the assessee trust- Dudhsagar Research & Development...

Advertisers And Target Audience Are Outside India - Equalisation Levy Not Applicable On Google Ads: ITAT

The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that an equalisation levy is not payable on advertising payments where advertisers or the target audience are located outside India.The two-member bench of Dr. S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) have observed that when the intention of the levy is related to the targeted audience and the party paying the online advertisement has no relation in India, the Equalisation Levy is...

ITAT Allows Deduction On Credit Facilities Given By Co-operative Society To Its Members

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80P of the Income Tax Act on the credit facilities given by the co-operative society to its members as they were directly related to the business while deriving interest.According to the two-member bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member), unlike Nationalised Banks, co-operative credit societies/cooperative banks have different setups where deduction...

TDS Provisions Not Applicable To Commission Paid To Bank: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS provisions are not applicable to commissions paid to banks.The two-member bench of Saktijit Dey (Judicial Member) and Dr B.R.R. Kumar (Accountant Member) has observed that commission paid to partners is not covered under Section 194H of the Income Tax Act as there is no employer and employee or principal-agent relationship between the partners and the firm.The assessee/respondent is a resident partnership firm engaged...

Extracts of Land Revenue Records, Not Sufficient Evidence To Prove Agricultural Activity: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld that the assessee is against the addition made on account of short-term capital gains by treating the land as a capital asset.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member) has observed that apart from the purchase and sale deeds of conveyance and 7/12 extracts from land revenue records, no other evidence has been brought on record by the assessee of having cultivated...

ITAT Allows 60% Depreciation On ATM machines As Applicable To Computer Software

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the 60% depreciation on ATM machines as applicable to computer software.The two-member bench of Sonjoy Sharma (Judicial Member) and G. Manjunatha (Accountant Member) has observed that once the assessee is entitled to 60% of depreciation on ATM machines, the Assessing Officer has to work out the depreciation right from the beginning at 60% to compute WDV.The appellant/assessee is in the business of providing automated...

Self-Certified Copies Of Documents Are Sufficient For Claiming Exemption Under Section 12AA of the Income Tax Act: ITAT

The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the self-certified copies of documents are sufficient for the purpose of claiming exemption under section 12AA of the Income Tax Act.The two-member bench of Dr.S. Seethalakshmi (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member) have observed that CIT(E) has erroneously passed the order without considering that the assessee has submitted all the necessary documents which were raised in the form of...

ITAT Disallows Cost of improvement As Assessee Did Not Produce Supporting Bills, Vouchers, Source Of Funds

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the cost of improvement as the assessee failed to produce supporting bills, vouchers, sources of funds, etc.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) noted that the claim of the assessee was denied by the lower authorities in the absence of proof with regard to the cost of improvement claimed by the assessee.The assessee, being an individual, expired on June...