“Cloud Service Fee” Received By Amazon From Customers In India Is Not Taxable As Royalty, FTS, FIS: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that cloud computing services provided by Amazon Web Services cannot be held liable to tax in India as royalty and fee for technical or included services (FTS/FIS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the AWS services provided by Amazon are standardised services that do not provide any technical services to its customers nor satisfy the 'make available' test as the customer...

ITAT Allows Income Tax Deduction On Interest Received From Enhanced Compensation Against Compulsory Acquisition Of Agricultural Land

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction on interest received from enhanced compensation for the compulsory acquisition of agricultural land.The bench of C.M. Garg (Judicial Member) has observed that the interest received by the assessee on enhanced compensation under Section 28 of the Land Acquisition Act, being part of the enhanced compensation, shall be treated as tax-free in the case of an individual under Section 10(37) if the transfer...

PCIT Can’t Initiate Revision Proceedings When CIT (A) Has Already Disposed Of The Appeal: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the revision order passed by the PCIT as the CIT (A) had already disposed of the appeal.The bench of Chandra Mohan Garg (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the issue of granting additional TDS credit was already considered and decided by the CIT (A). For adjudication of the same issue, the PCIT cannot invoke revision proceedings under Section 263 in view of the provisions of Explanation...

District Mining Officer Liable To Collect TCS On Compounding Fee Received From Illegal Miners: ITAT

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, the District Mining Officer, is liable to collect tax at source on the compounding fee received from illegal miners even in the absence of a valid lease or licence of mines.The bench of Ravish Sood (Judicial Member) and Arun Khodpia (Accountant Member) has observed that even in the absence of any lease, licence, or contract, if there is any transfer by the assessee of any right or interest in the mine, then...

ITAT Deletes Addition On Security Deposits From Distributors/Retailers Against Coca Cola Bottles

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against Hindustan Coca-Cola Beverages on the Security Deposits made by distributors and retailers against Coca-Cola bottles.The bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya, (Accountant Member) has relied on the decision of the Supreme Court in the case of Sugauli Sugar Works [P] Ltd., in which it was held that the onus is on the revenue to bring on record tangible evidence to show that liability...

No specific ICDS, ITAT Disallows Deduction On Marketing & Sales Expenses To Real Estate Developer

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the deduction of marketing and sales expenses accumulated in work-in-progress as per accounting standards and revenue recognition policy.The bench of Rajpal Yadav (Vice President) and Girish Agrawal (Accountant Member) has observed that no specific Income Computation and Disclosure Standards (ICDS) have been notified for real estate developers; revenue and cost recognition are governed by the applicable accounting...

ITAT Upholds Addition On Account Of Unexplained Cash Deposit Made During Demonetisation

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT), while rejecting the plea of the assessee for cash received in marriage, upheld the addition on account of an unexplained cash deposit made during demonetisation.The bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) has observed that there is no direct evidence available from the assessee to substantiate his claim, but going through the customary system in Indian society, no economic transaction can...

Tax Cases Weekly Round-Up: 16 July To 22 July, 2023

Supreme Court Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court Case Title: Principal Commissioner of Income Tax vs King Buildcon Pvt. Ltd. Citation : 2023 LiveLaw (SC) 532 The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot...

Passing Of Project Specific Architectural Drawings And Design With Measurement Doesn’t Amount To ‘Make Available’ Technical Knowledge: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the mere passing of project-specific architectural drawings and designs with measurements did not amount to making available technical knowledge, know-how, or processes.The bench noted that G.S. Pannu (President) and Astha Chandra (Judicial Member) observed that the assessee has not transferred any technical expertise, skill, or knowledge along with the drawings and designs of the particular building.The appellant/assessee...

Plastic Waste Management Falls Under Preservation Of Environment: ITAT Allows Income Tax Exemption

The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the Income Tax exemption for the Punjab Plastic Waste Management Society and observed that plastic waste management falls under the preservation of the environment.The bench of A.D. Jain (Vice President) And Vikram Singh Yadav (Accountant Member) has quashed the order of the Commissioner of Income Tax (Exemptions) against the Punjab Plastic Waste Management Society, by which the Society’s application under Section 12A...

ITAT Upholds Interest On 'Outstanding Interest Receivable' Against Parle Biscuits

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the levy of interest on 'outstanding interest receivable' against Parle Biscuits.The bench of Kuldip Singh (Judicial Member) and Padmavathy S. (Accountant Member) has observed that in a transfer pricing transaction, what needs to be looked into is whether, in an uncontrolled similar transaction, the third party would charge such interest or not. The interest on a loan is compensation received towards the utilisation of...

Tax Cases Weekly Round-Up: 9 July To 15 July, 2023

Supreme Court Revenue Dept Can't Recover Refunded Cess Amount Because Refund Was Based On A Judgment Which Was Later Overruled : Supreme Court Case Title: Commissioner of CGST and Central Excise (J and K) vs M/s Saraswati Agro Chemicals Pvt. Ltd. Citation : 2023 LiveLaw (SC) 522 The Supreme Court has upheld the decision of the Jammu and Kashmir and Ladakh (J&K&L) High Court where the court had held that the assessee was not liable to return the Education Cess...