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...

Interest On Income Tax Refund Not Connected To Permanent Establishment Under DTAA, Cannot Be Taxed As Business Income: Dehradun ITAT

The Dehradun Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), has ruled that interest on income tax refund received by a foreign enterprise is not effectively connected to its Permanent Establishment in India and therefore it cannot be taxed as its business income under Income Tax Act, 1961. The ITAT also held that receipts from Service Tax and VAT could not be included in the gross taxable receipts of an assessee under the...

Interest Income Derived By Gujarat Sports Authority On Its Surplus Taxable As "Income From Other Sources": Ahmedabad ITAT

The Ahmedabad Bench of ITAT, consisting of members P.M. Jagtap (Vice President) and Siddhartha Nautiyal (Judicial Member), has ruled that the interest income earned by the Gujarat Sports Authority on its deposits would be taxable as "Income from Other Sources" and not as business income under the Income Tax Act, 1961. The ITAT held that since the Sports Authority was not engaged in any business activity, therefore the interest income earned by it on its deposits would not qualify as...

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

The Delhi Bench of ITAT, consisting of members N.K. Billaiya (Accountant Member) and Astha Chandra (Judicial Member), has held that access to a foreign enterprise for providing technical assistance to its Joint Venture Company in its premises in India does not amount to a Permanent Establishment under the Double Taxation Avoidance Agreement. The Assessee FCC Co. Ltd, a Japanese company engaged in the business of manufacturing clutch systems for cars and utility vehicles, entered into a ...

Payment To Foreign Company For Utilisation Of Transponder Of A Satellite Is Not "Royalty" As Per DTAA: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Sandeep Sigh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) ruled that the payment made to a foreign company for the utilisation of a transponder centred on a satellite was not in the nature of "royalty" in terms of the Double Taxation Avoidance Agreement (DTAA).The assessee/respondent in the business of marketing advertisement time for different television channels, and distribution of these ...

Claim Of Deduction Under Section 54 Of Income Tax Act To Be Reckoned From The Date Of Possession Of New Property: Mumbai ITAT

The Mumbai Bench of ITAT, consisting of members Pramod Kumar (Vice President) and Kuldip Singh (Judicial Member), has ruled that an assessee's claim of deduction under Section 54 of the Income Tax Act, 1961 was to be reckoned from the date of possession of the new residential house property. Also, the ITAT ruled that the source of funds for the purchase of the new house property under Section 54 is irrelevant. The Assessing Officer (AO) had denied the benefit of deduction under Section...

ITAT Chennai: Internal Family Arrangement Has No Bearing On Computation Of Capital Gains From Joint Property

The Chennai Bench of ITAT, consisting of members V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member), has held that capital gains under the Income Tax Act, 1961 is to be computed according to the respective share of the parties in a residential property and not according to any internal family arrangement. The Assessee had filed his income tax return, which was taken up for scrutiny. The Assessing Officer (AO) had noticed that the Assesse, along with his wife and his...

Non Production Of Persons Despite Summons Leads To Inference Of Routing Own Money : ITAT Delhi

The Delhi Bench of ITAT, consisting of members G.S. Pannu (President) and K. Narsimha Chary (Judicial Member), has ruled that an Assessing Officer has the power to verify transactions beyond the paperwork submitted by the Assessee under Section 68 of the Income Tax Act, 1961. The Assessing Officer (AO) had disallowed expenses and made additions to Assessee's income under Section 68 of Income Tax Act, 1961 on the ground that the transaction of loans and advances by an advisory company...

ITAT: Unascertained Business Loss Cannot Be Allowed As Deduction

The Bangalore Bench of ITAT, consisting of members Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member), has ruled that unless the recovery of embezzled amount in the course of business was impossible, it could not be claimed as a business loss. The ITAT ruled that an unascertained loss cannot be allowed as deduction from taxable income. The Assessing Officer (AO) had disallowed loss from embezzlement of cash by Assessee's staff as business loss on the ground that the...