Tax
Cash Deposits Made From Assessee's Parents Accumulated Savings And Income From Agricultural Activities; ITAT Deletes Addition
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the department as the cash deposits made from the assessee's parents accumulated savings and income from agricultural activities.The bench of Suchitra Kamble (Judicial Member) and Makarand V. Mahadeokar (Accountant Member) has observed that when the assessee provides a plausible explanation supported by affidavits, it is the duty of the revenue to conduct proper verification before making any adverse...
Computation Of 6 Assessment Years For Search Assessments U/S 153C Starts From Date Of Receiving Seized Documents: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the computation of six assessment years for search assessments under Section 153C of the Income Tax Act starts from the date of receiving seized documents.The bench of Saktijit Dey (Vice President) and Naveen Chandra (Accountant Member) has relied on the decision of the Supreme Court in the case of CIT vs. Jasjit Singh, in which it was held that under Section 153C, a third party would only have to furnish income tax returns...
Can't Examine Officials Of Tax Dept. On Enquiry Report Based On F-Forms Submitted By Dealer: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that the assessee or petitioner does not have a right to cross-examine the officials of the Tax Department of Bombay on the F-Forms submitted by the dealer.The bench of Justice Ravi Nath Tilhari and Justice Harinath Nunepally has observed that the tax proceedings are of a quasi-judicial nature. The tax authorities are bound to comply with the principles of natural justice, though they are not strictly bound by the rules of evidence. The rule that requires...
Claim For Sales Tax Exemption In Respect Of Transit Sales To Be Justified By Showing Sale As Having Occurred In Transit: Kerala High Court
The Kerala High Court has held that a claim for exemption in respect of transit sales must be justified by showing the sale as having occurred in transit.The bench of Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. has observed that the petitioner/assessee cannot establish the transit sales by showing the sale as having occurred in transit since the E1 Forms relied on by the assessee have been accounted for only in a subsequent year, which could only be after the transportation of...
No Disallowance Under Section 14A Of Income Tax Act Is Warranted In Respect Of Investments Not Yielding Tax Free Income: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that disallowance has to be worked out on the basis of investment which yielded dividend during the year and not by factoring in the total amount of investment.The bench of Amit Shukla (Judicial Member) and Renu Jauhri (Accountant Member) has observed that no disallowance under section 14A of the Income Tax Act is warranted in respect of investments not yielding tax free income for the appellant. As per Section 14A, the...
ITAT Quashes Assessment Order Against Bret Lee As Reassessment Notice Not Served Within Limitation Period
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the royalty payment is only for providing technical assistance for the manufacture and sale of licensed products, and the import of raw materials is incidental to such...
CESTAT Cases Weekly Round-Up: 26 May To 01 June 2024
Set Top Boxes Satisfy Definition Of 'Inputs', Dish TV Entitled To 100% Credit: CESTATCase Title: M/s Dish TV India Ltd. Versus Commissioner of CGST, NoidaThe Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)has held that Dish TV is entitled to 100% credit as the set top boxes satisfy the definition of 'Inputs'.Dept. Can't Re-Determine MRP Of Laptops Imported By Acer India Supplied With Laptop Bag: CESTATCase Title: M/s. Acer India (Pvt.) Ltd. Versus Commissioner of...
Royalty Not Includible In Transaction Value Of Imported Raw Materials To Demand Any Differential Customs Duty: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the royalty payment is only for providing technical assistance for the manufacture and sale of licensed products, and the import of raw materials is incidental to such...
Indirect Tax Cases Weekly Round-Up: 26 May To 01 June 2024
Madras High CourtNo Embargo On Commercial Tax Dept. From Summoning To Furnish Records Even If Assessment Is Completed: Madras High CourtCase Title: M/s.V.R.Muthu & Bros. Versus State Tax OfficerCitation: 2024 LiveLaw (Mad) 225The Madras High Court has held that merely because the assessment is deemed to have been completed in both cases, it does not mean that the officers are precluded from exercising the power under Section 25 or Section 27 of the TNVAT Act, 2006.Allahabad High CourtS.75(4)...
Ignoring GSTR-9 Causes Prejudice To Taxpayer's Rights When Errors Committed Are Revenue Neutral: Calcutta High Court
The Calcutta High Court has held that ignoring GSTR-9 causes prejudice to taxpayers's rights when errors committed are revenue neutral.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has remanded the matter back to the adjudicating authority, viz., the Assistant Commissioner, State Tax, Taltala, and New Market Charge, to consider the submissions made by the assessee, afford an opportunity of personal hearing, and examine the annual return filed in GSTR-9.Form GSTR-9...
Salary Reimbursements Of Seconded Employees Is Not Taxable As Fees For Technical Services: ITAT
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that salary reimbursements of seconded employees are not taxable as fees for technical services.The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the conduct of assessees is bona fide, though it was not agreed upon by the department, and it is also noted that assessees have all material time to disclosing these secondment receipts in their Form 3CB filed with the department...
Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings
The Delhi High Court, while quashing the reassessment proceedings initiated by the income tax department against the Caterpillar Group, held that once the issue of arm's length remuneration was settled by the Transfer Pricing Officer (TPO), the question of ascertaining the existence of a permanent establishment (PE) was academic.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that the reassessment proceeding was initiated on the ground that the production...