INCOME TAX
Income Tax Act; Mere Uploading Of Notice On Assessee’s E-Portal Is Not Proper Service: ITAT
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that mere uploading of notice on the assessee’s e-Portal of the Income Tax Department is not proper service as per the Income Tax Act.The bench of Sanjay Garg (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that service of notice on the portal alone without compliance with Section 282 of the Income Tax Act is bad, and the matter was therefore remanded for consideration afresh.The...
Tax Cases Weekly Round-Up: 3 September To 9 September, 2023
Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title: M/S Frequent Logistics Services PVT. LTD. v. Commissioner Goods and Service Tax Department And ORS. ...
Receipts From Provision Of Background Screening And Investigation Services To Clients In India Is Not Royalty/FTS: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that receipts from the provision of background screening and investigation services to clients in India are not royalties or fees for technical services (FTS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the services rendered by the assessee do not involve any technical skill or knowledge or consultancy or make available any technical knowledge, experience, skill, know-how, or...
Income Tax Raid, ITAT Finds Money Laundering, Directs Assessing Officer To Inform SEBI, PMLA Authorities
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to share information on all persons allegedly involved in the racket of money laundering.The bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) has issued the directions to the AO to communicate vital details on 32,855 beneficiaries involved in accommodation entering schemes.The ITAT's decision represents a key step towards dismantling a massive money laundering scheme. This...
No Income Tax Payable On Bonus Shares Under The Head ‘Income From Other Sources’: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not chargeable on bonus shares under the heading ‘income from other sources’.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the bonus shares are issued only out of the capitalization of existing reserves in the company. The AO had not disputed the fact that the overall wealth of a shareholder, post-bonus or pre-bonus, remains the same. It is wrong on his...
Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties to be brought to tax in India under Section...
ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.The bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has directed the assessing officer to consider the movement in the FD account and the loan account to understand the nexus and also to consider the alternate claim of interest as business expenditure...
Tax Cases Weekly Round-Up: 27 August To 2 September, 2023
Delhi High Court DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST Citation: 2023 LiveLaw (Del) 756 The Delhi High Court has held that the Directorate General of Goods and Service Tax Intelligence (DGGI) cannot be stopped from taking intelligence-based enforcement action...
Licence Fee Received By Cricket Australia For Live And Non-Live Transmissions Rights Can’t Be Taxed As Royalty: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that Cricket Australia is not liable to pay ‘royalty’ on licence fees received for live and non-live transmission rights.The bench of Kul Bharat (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of the Co-ordinate Bench of the Tribunal in the case of Fox Network Group Singapore Pte. Ltd. vs. ACIT, in which it was held that there is no copyright on live events, and therefore, it is not taxable as...
AO Bound To Grant Advance Tax Credit That Was Left By The Taxpayer: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is bound to grant the credit of advance tax that was left by the taxpayer.The bench of Sandeep Singh Karhail (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the inadvertence on the part of the assessee to claim the credit for the advance tax while filing its return of income or filing the revised return of income in this regard does not absolve the AO from its statutory duty as per Section...
HSBC Not Liable To Deduct TDS On Nostro Account Maintenance Charges: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, HSBC, was not under obligation to withhold tax from Nostro Account Maintenance Charges in terms of Section 195 of the Income Tax Act and therefore could not be treated as an ‘assessee in default’.The bench of Rahul Chaudhary (Judicial Member) has observed that Nostro Account Maintenance Charges are in the nature of bank charges levied on transactions and are not subject to tax deduction at source under...
ITAT Deletes TP-Adjustment On Payment Of Export Commission And Model Fee Against Honda Subsidy
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the adjustment on account of Arm's Length Pricing (ALP) of the export commission payment against the Honda subsidy.The bench of Challa Nagendra Prasad (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the issues of transfer pricing adjustment with respect to the determination of an ALP of Rs. nil on export commission and payment of royalty are decided in favour of the assessee.As per the Income Tax...