ITAT Cases Weekly Round-Up: 17 To 23 March 2024

Deeming Provisions Of Sec 69B Can't Be Invoked Once Nexus Of Source Of Unrecorded Transactions With Assessee's Business Is Proved: Chandigarh ITAT Case Title: M/s A.P Knit Fab verses DCIT Finding that the difference in stock found out by I-T Authorities has no independent identity and is part & parcel of entire stock, the Chandigarh ITAT refused to treat such difference as undeclared business income and clarified that it cannot be said that there is an undisclosed asset ...

Direct Tax Cases Weekly Round-Up: 17 To 23 March 2024

Delhi High Court Pre-Deposit Of 20% Demand Is Not Precondition For Consideration Of Stay Application During Pendency Of First Appeal: Delhi High Court Case Title: National Association Of Software And Services Companies (NASSCOM) Versus Deputy Commissioner Of Income Tax (Exemption) Circle 2 (1) The Delhi High Court has held that a 20% pre-deposit demand is not a precondition for consideration of a stay application during the pendency of the first appeal. Failure Of AO To Take...

Indirect Tax Cases Weekly Round-Up: 17 To 23 March 2024

Supreme Court Customs Act | Importer's Subsequent Import Bill Be Discarded If Undervalued To Previously Imported Identical Or Similar Goods: Supreme Court Case Title: M/s Global Technologies and Research versus Principal Commissioner of Customs, New Delhi (Import) Citation : 2024 LiveLaw (SC) 239 Recently, the Supreme Court held that under the Customs Act, the Importer's Bill of Entry of subsequent imported goods can be discarded if the subsequent imported goods are...

Credit Availed On Outward Transportation Services Eligible When Freight Charges Are Included In Taxable Value: Himachal Pradesh High Court

The Himachal Pradesh High Court has held that credit availed on outward transportation services is eligible when the freight charges are included in the taxable value.The bench of Chief Justice M.S. Ramachandra Rao and Justice Jyotsna Rewal Dua observed that the Tribunal was not justified in holding that the place of removal for the GTA services provided under the sale contract is the manufacturer's premises and not the place where the goods are sold. The Tribunal was not justified in holding...

Advertisement Expenses Incurred By Dealers Not To Be Included In Assessable Value For Payment Of Excise Duty: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the advertisement expenses incurred by the dealers on their own accord are not to be included in the assessable value for the purpose of payment of excise duty.The bench of S. S. Garg (Judicial Member) and Rajeev Tandon (Technical Member) has observed that expenses are purely optional at the end of the dealers, and they have to decide whether to incur such expenses or not because there are certain...

Remuneration Paid To Whole-Time Directors As Commission Based On Profit Doesn't Attract Service Tax: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that remuneration paid to whole-time directors as commission based on profit doesn't attract service tax.The bench of Sulekha Beevi C.S. (Judicial Member) and C.L. Mahar (Technical Member) has observed that the whole-time director is essentially an employee of the company, and accordingly, whatever remuneration is being paid in conformity with the provisions of the Companies Act is pursuant to the...

Issuance Of Summons Is Not Initiation Of Proceedings Referable To Under Section 6(2)(B) Of CGST Act: Rajasthan High Court

The Rajasthan High Court, Jaipur Bench, has held that issuance of summons is not initiation of proceedings referable to under Section 6(2)(b) of the CGST Act.The bench of Justice Pankaj Bhandari and Justice Shubha Mehta has observed that the scope of Section 6(2)(b) and Section 70 of the CGST Act is different and distinct, as the former deals with any proceedings on subject matter, whereas the latter deals with the power to issue a summons in an inquiry, and therefore, the words “proceedings”...

LTCG Tax Exemption Can't Be Denied Due To An Error Made By The Builder In Assigning Apartment: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that tax benefits cannot be denied to taxpayers due to an error made by the builder in assigning the apartment.The bench of Rahul Chaudhary (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the appellant or taxpayer cannot be penalized for the mistake committed by the developer or seller by allotting a flat to the appellant and thereafter selling the same flat to Mr. C.N. Jha. Clearly, the...

Income Tax Exemptions Available To ST Individuals Can't Be Extended To Partnership Firm: ITAT

The Guwahati Bench of the Income Tax Appellate Tribunal (ITAT) has held that the exemption under Section 10(26) of the Income Tax Act has been specifically conferred on members of the Scheduled Tribe residing in the specified area. The exemption cannot be extended to another separate and distinct "person," that is, the partnership firm, though such a firm consists of the individual partners who, in their individual capacities, are entitled to such an exemption.The special bench of Rajpal Yadav...

Abhisar Buildwell Judgment Can't Be Construed To Be An Authority To Override Mandate Of Section 245-I: Delhi High Court

The Delhi High Court has held that the judgement of Abhisar Buildwell passed by the Supreme Court cannot be construed to be an authority to override the mandate of Section 245-I of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that in terms of the Supreme Court's judgment in the case of Abhisar Buildwell, the completed or unabated assessments can be re-opened by the AO in exercise of powers under Sections 147 and 148 of the Income Tax...

Categorising Body Massager As Adult Sex Toy, Officer's Imagination, Not Covered Under 'Prohibited Goods': Bombay High Court

The Bombay High Court has held that categorising the body massager as an adult sex toy was purely the officer's imagination.The bench of Justice G. S. Kulkarni and Justice Kishore C. Sant has upheld the CESTAT's ruling, in which it was held that the view taken by the Commissioner was purely the Commissioner's imagination to categorise the item not as a body massager but as an adult sex toy. The sale of body massagers within the national boundaries was not subjected to any prohibition. In...

Average Income Is To Be Considered If Variations Found In Income Tax Returns Filed By Claimant: Karnataka High Court

The Karnataka High Court has held that if income tax returns are available the same should be considered as best a piece of evidence and if variations are found in the income tax returns, considered for different assessment years, it would be appropriate to consider the average income of three assessment years to arrive at the annual stable income of the claimant seeking compensation under the Motor Vehicles Act.A division bench of H.T.Narendra Prasad and Justice K V Arvind made the observation...