ITAT Ahmedabad Holds BSNL's VRS-2019 Compensation Tax-Exempt

The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has allowed tax exemption on compensation received by employees under Bharat Sanchar Nigam Limited's Voluntary Retirement Scheme (BSNL VRS-2019). It held that the compensation was exempt from tax and directed the Assessing Officer to recompute the assessees' taxable income and grant refunds, if due.A Bench comprising Judicial Member Rahul Chaudhary and Accountant Member Gangadhar Panda relied on earlier decisions of the Tribunal, which had...

ITC Available On Interior Furnishing Of Rented Shops Where Tax Aspect Is Not Capitalized: GSTAT Thiruvanathapuram

The Goods and Services Tax Appellate Tribunal (GSTAT), Thiruvananthapuram Bench, has allowed Oxygen The Digital Shop to claim ₹11.23 lakh in Input Tax Credit (ITC) on carpentry, joinery and painting services used for interior work at its rented shops. It held that the GST component was not capitalised in the retailer's books of accounts. “Since the amount of GST is not capitalised, such amount of tax does not get covered under the restricted category of Section 17(5)(d),” the tribunal ruled. ...

GST Authorities Must Give Taxpayers Reasonable Time To Furnish Audit Documents: Gujarat High Court

Tax authorities must inform taxpayers within a reasonable time if documents submitted for a GST audit are incomplete, the Gujarat High Court has held.“However, we are of the opinion that, where a registered person furnishes documents pursuant to a notice issued under Section 65 of the CGST Act but some documents remain outstanding, the tax authorities are required to inform the registered person of the missing or outstanding documents within a reasonable time, so that the audit can be completed...

GSTAT Ernakulam Allows Singapore Airlines' ₹45.92 Lakh GST Refund Claims For Cancelled COVID-Era Flights

The Goods and Services Tax Appellate Tribunal (GSTAT), Ernakulam Bench, has recently allowed Singapore Airlines' claims for a ₹45.92 lakh GST refund on tickets for flights cancelled during the COVID-19 pandemic.The tribunal found that the airline had refunded passengers the full ticket fare, including GST.“The appellant-airline is eligible for the refund of GST collected from the passengers and paid by them to the GST Department, but subsequently refunded entire amount of fare including GST to...

ITAT Ahmedabad Deletes ₹4.42 Lakh Penalty For Misreporting Of Income Over PF, ESI Disallowance

The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has deleted a ₹4.42 lakh penalty imposed on Nascent Info Technologies Pvt. Ltd. for misreporting of income.It held that mere disallowance of employees' contributions towards Provident Fund (PF) and Employees' State Insurance (ESI) does not automatically constitute misreporting of income.The bench of Vice-President Dr. B.R.R. Kumar and Judicial Member Sanjay Kumar observed that the Revenue must establish that the case falls within the specific...

Timely Reassessment Notice Cannot Cure Invalid Income Tax Sanction: Gujarat High Court

The Gujarat High Court has quashed a tax reassessment, ruling that a timely notice to a taxpayer cannot cure an approval obtained from the wrong authority. The court held that the tax department could not rely on the time given to the taxpayer to respond to a reassessment notice to justify the sanction granted by the Principal Commissioner of Income Tax.The tax department argued that excluding this period meant the approval granted by the Principal Commissioner of Income-tax was valid. The court...

GSTAT Chandigarh Allows Deltron ₹2.90 Lakh GST Credit, Rejects ₹6.99 Lakh Claim

The GST Appellate Tribunal (GSTAT), Chandigarh, has allowed Deltron to claim ₹2.90 lakh in transitional tax credit on capital goods received after GST came into force. However, it rejected the company's claim for ₹6.99 lakh in credit on goods cleared for export before GST but exported after the new tax regime came into force.A Bench comprising Judicial Member Jatinder Pal Singh and Technical Member Pradeep Kumar Goel partly allowed the appeal filed by Deltron, a division of Continental Device...

Hospital Food Contractor Liable To Pay Service Tax As Outdoor Caterer: CESTAT Bangalore

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, has held that a contractor supplying food from hospital premises can be liable to pay service tax as an outdoor caterer, even where VAT has been paid on the goods component.“Based on the above definitions a person undertaking catering in his own premises or premises offered by the clients and who supplies food directly or indirectly falls under the definition of outdoor caterer,” the tribunal observed.The bench of...

GST Demand Cannot Be Confirmed Based On System-Generated Discrepancies Without Reconciliation: GSTAT Lucknow

The GST Appellate Tribunal (GSTAT), Lucknow Bench, has held that confirming a GST demand based purely on system-generated discrepancies, without a detailed one-to-one financial reconciliation, violates the spirit of law and fairness.The Division Bench of Judicial Member Santosh Kumar Srivastava and Technical Member Arvind Kumar made the observation while setting aside the original demand order and the first appellate order against Nitin Bakers Private Limited, involving ₹56.24 lakh in tax,...

Bombay High Court Condones 260-Day Delay By Cine Artist Welfare Trust In Claiming Tax Exemption On ₹70 Lakh

The Bombay High Court has condoned a 260-day delay by Cine Artist Welfare Trust in filing Form 10 (a form required to claim tax benefits on income set aside for future use) under the Income Tax Act, 1961. The court observed that denying the tax exemption could deplete the trust's funds and affect its charitable activities.A Division Bench of Justice B.P. Colabawalla and Justice Farhan P. Dubash set aside the Income Tax Department's order rejecting the trust's request to condone the delay. It...

GSTAT Ernakulam Allows Excess Output Tax Paid To Be Adjusted Against Ineligible ITC

The Goods and Services Tax Appellate Tribunal (GSTAT), Ernakulam Bench, has recently ruled that excess output tax paid by a taxpayer can be adjusted against ineligible Input Tax Credit (ITC). It held that when the excess tax paid exceeds the ITC disallowed, there is no short payment of tax warranting proceedings under Section 73 of the CGST/KGST Act.“Expecting the appellant to pay up the shortfall demanded and then file a claim for refund of the excess amount paid would be an exercise in...

Royalty Paid To Partners For Trademark Use Not Taxable Without Service Relationship: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, on 14 October held that royalty received by partners for allowing their partnership firm to use a jointly owned trademark does not attract service tax in the absence of a service provider-recipient relationship. A Bench of Judicial Member R. Muralidhar allowed four appeals filed by the partners of Radhashyam Tirthabasi Paul against the confirmation of service tax demands on royalty received for the use of the trademark...