Performance Guarantee Commission Is Not Business Income Under DTAA: Delhi ITAT

The Delhi Bench of ITAT, consisting of Amit Shukla (Judicial Member) and B.R.R. Kumar (Accountant Member), has ruled that performance guarantee commission received by an assessee from its foreign Associated Enterprise is not its business income under the Double Taxation Avoidance Agreement (DTAA). The ITAT therefore allowed foreign tax credit under Income Tax Act, 1961 to the assessee against the tax withheld under the Singapore Income Tax law on the commission paid by a Singapore...

Immunity Under Income Declaration Scheme Available Only To The Declarant; Can't Be Extended To Another Assessee : Supreme Court

The Supreme Court has found fault with a Gujarat High Court judgment for extending the immunity under the "Income Declaration Scheme" (IDS) to an assessee who was not the declarant under the scheme.The High Court had quashed the reassessment notice issued under Sections 147/148 of the Income Tax Act, 1961, against a company M/s MR Shah Logistics Private Ltd. One of the grounds for the re-opening of the assessment was contended to have been a declaration by another company, Garg Logistics Private...

State Authorities, Regulatory Bodies Including Direct & Indirect Tax Departments Cannot Question Resolution Plan: ITAT Dismisses Revenue Department's Appeal

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the appeal filed by the revenue department on the grounds that the state authorities and regulatory bodies, including direct and indirect tax departments, cannot question the resolution plan.The two member bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that as per section 31 of the Insolvency and Bankruptcy Code, 2016, the resolution plan as approved by the ...

Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), consisting of Kul Bharat (Judicial Member) and R.K. Panda (Accountant Member), upheld the CIT(A) order, holding that the mere fact that taxes were not deducted on the year end provision but were deducted and deposited upon crystallisation of liability to pay the expenses does not automatically justify the imposition of a penalty under section 271C of the Income Tax Act.The respondent/assessee is in the business of providing ...

Income Tax Deduction Available On Distribution Of Gifts For Sales Promotion Even If Assessee Refuses To Share List Of Recipients: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) headed by Rajpal Yadav (Vice President) and Waseem Ahmed (Accountant Member) has held that the assessee was eligible for an income tax deduction on the distribution of gifts for sales promotion even if the assessee refused to share the list of recipients.The assessee/respondent is in the business of installing computers and providing after-sale services, including the sale of computers and peripherals, and collecting from...

Non-Appearance Of Assessee In Response To Notice Issued Electronically Under Section 142(1) Of Income Tax Act A Bonafide Mistake: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members G.S. Pannu (President) and Vikas Awasthy (Judicial Member), has ruled that non-compliance by the assessee of a notice issued electronically under Section 142(1) of the Income Tax Act, 1961 in the first year of transition towards an online and digital interface by the revenue department, is not deliberate and is a bonafide mistake. The Assessee Triumph International Finance India Limited had filed an appeal before the ITAT against the...

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi

The Single Bench of Delhi ITAT, consisting of judicial member Kul Bharat, has ruled that belated payment of employees' contribution to the Provident Fund and State Insurance Scheme cannot be added to the employer's taxable income as deemed income, if the said deposits are made before the due date of filing the income tax return under the Income Tax Act, 1961. The Appellant/ Assessee Guardian India Solutions had filed its income tax return which was processed by the Centralized...

Supreme Court Remits Tax Appeal Back To Rajasthan High Court, Says High Court Cannot Dispose Of Appeal With A One Paragraph Order

The Supreme Court has ruled that a High Court is not justified in disposing of a tax appeal with a one paragraph order without discussing the issues arising for consideration. The Bench, consisting of Justices U.U. Lalit and S. Ravindra Bhat, has remitted a matter back to the Rajasthan High Court for fresh consideration of a tax appeal filed by the revenue department against the order of the Jaipur bench of ITAT. The Assessing Officer (AO) had made additions to Assessee Motisons...

No Suppression Of Fact By Adani Enterprise, Extended Period Of Service Tax Demand Not Invokable, says CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), consisting of Ramesh Nair (Judicial Member) and Raju (Technical Member), has ruled that the extended period of limitation was not invokable as there was no suppression or willful misstatement on the part of the Adani Enterprise.The appellant/assessee is in the business of providing various taxable services and has a centralised service tax registration. DGCEI gathered intelligence that the appellant has...

Flight Testing Services Provided To Hindustan Aeronautics Not Taxable As Fees For Technical Services: Bangalore ITAT

The ITAT Bangalore Bench, consisting of members George George K (Judicial Member) and Padmavathy S (Accountant Member), has ruled that flight testing services provided to Hindustan Aeronautics Limited cannot be taxed as fees for technical services and therefore no TDS is required to be collected on it. The Assessee Hindustan Aeronautics Limited (HAL), a public sector undertaking of the Government of India, had filed its income tax return which was selected for scrutiny by the Assessing...

LTCG On Penny Stock Transaction Cannot Be Denied Exemption In Absence Of Incriminating Material: ITAT Mumbai

The Mumbai Bench of ITAT, consisting of members Rahul Chaudhary (Judicial Member) and Shamim Yahya (Accountant Member), has ruled that long term capital gains arising from a penny stock transaction cannot be denied exemption under the Income Tax Act, 1961 on the ground that the said transaction is bogus and pre-arranged in the absence of any incriminating material. The Assessee, Vipul Suresh Kumar Modi, had filed an income tax return. Subsequently notice under Section 153A of the Income...

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) while allowing the deduction under Income Tax Act has rejected the claim of AO that the assessee is only into job work and not manufacturing.The two-member bench consisting of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) held that the transformation of articles to bring new articles into existence amounts to "manufacturing" and allowed deduction under section 80IC of the Income Tax Act, 1961. The...