Tax
Additions Made By AO Once Deleted By Appellate Authority With Reasoned Order, Merits Status Quo In Identical Cases: Mumbai ITAT
Relying upon the decisions of the Co-ordinate Bench, the Mumbai ITAT upheld the decision of CIT(A) in deleting the addition made u/s 68 read with section 147 of the Income Tax Act, 1961.The Bench comprising of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that, “The co-ordinate Bench in paragraph no.6 and 7 after considering the remand report upheld the order of the CIT (A) with respect to bogus purchase and addition under Section 68 of the Act....
Cash Deposit In Bank Account Made Out Of Sale Proceeds Received In Cash If Duly Explained, Is Not Unexplained Credit: Delhi ITAT
Accepting the explanation given by the assessee that he had received cash on sale of property to be believable which was faithfully deposited in the bank account within a short period, the Delhi ITAT provided relief to the assessee against the order of assessment passed u/s 143(3) of the Income Tax Act, 1961.The Bench of M. Balaganesh (Accountant Member) observed that, “the explanation given by the assessee that source for cash deposit for Rs. 29 lakhs in the bank account is made out of sale...
Service Tax Not Leviable On Service For Transmission Of Electricity By GETCO: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not leviable for the erection of bays, substations, and transmission lines provided by Gujarat Energy Transmission Corporation Limited (GETCO) to service recipients.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that for the entire period in the appeal, i.e., related to Notification No. 45/2010-ST, 11/2010-ST, and also for the period when the...
Illegal Actions Of Importer Firms Subsequent To Cargo Clearance From Customs Station Does Not Make Customs Broker Liable: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the illegal actions of the importer firms subsequent to the clearance of the cargo from the Customs Station do not attract a violation on the part of the Customs Broker.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the customs broker, in order to verify the existence of the premises of the two importer firms, sent letters by speed post asking them to...
Non-Production Of Original Tax Invoice From Registered Dealer, Reversal Of ITC By Dept. Doesn't Amount To Double Taxation: Madras High Court
The Madras High Court has held that when a registered dealer claims any benefit under Section 19 of the TNVAT Act 2006, he has to strictly adhere to the conditions laid down in the said section.The bench of Justice D. Krishnakumar and Justice R. Vijayakumar has observed that the petitioner has not produced the original tax invoice from a registered dealer, and therefore, he cannot complain that the authorities are attempting to reverse the input tax credit in his favor. In fact, the petitioner...
Advisory Support Service Relating To Software Falls Within Service By Software Engineer: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) allowed the service tax exemption to Yamaha Motor's subsidiary and held that advisory support services relating to software clearly fall within the domain of the service provided by a software engineer.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that activities of the appellant rendering software development and other information technology services to Yamaha...
Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court
The Bombay High Court has held that excise duty paid and included in the closing stock has to be claimed separately as a deduction; otherwise, the appellant would not be claiming the entire excise duty paid in the year of its payment. The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that Section 43B, which came to be introduced from Assessment Year 1984–1985 onwards, provides that the excise duty would be deductible only on a payment basis in the year in which it is...
E-Way Bill Generated For Exporting Goods To Bangladesh Expired Due To Accident: Calcutta High Court Quashes 200% Penalty
The Calcutta High Court has quashed the 200% penalty and held that the e-way bill generated for exporting goods to Bangladesh expired due to an accident.The bench of Chief Justice T. S. Sivagnanam and Justice Supratim Bhattacharya has observed that unless and until it is established by the department that the transporter of the goods or the owner of the goods had an intention to contravene the provisions of the Act, the question of imposing a penalty under Section 129 of the WBGST Act that is...
HSBC Bank Carrying On Bona Fide Banking Business In Mauritius Exempt From Tax In India: Bombay High Court
The Bombay High Court has held that HSBC Bank carrying on bona fide banking business in Mauritius is exempt from tax in India.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that interest arising in a contracting state (India) shall be exempt from tax in that state (in India) provided the income is derived and beneficially owned by any bank carrying on a bona fide banking business that is a resident of the other contracting state (Mauritius).The respondent or assessee...
Annual Letting Value Of Unsold Flats Held As Stock In Trade Cannot Be Considered For Addition U/s 22 I-T Act: Mumbai ITAT
While setting aside the order of CIT(A), the Mumbai ITAT directed the AO to delete the addition of annual letting out value (ALV) of the unsold flat u/s 22 of Income Tax Act, 1961.The Bench comprising Pavan Kumar Gadale (Judicial Member) and Prashant Maharishi (Accountant Member) observed that “the annual value of unsold flats held as stock in trade has to considered as per the amendment in the finance Act 2017 under section 23(5) of the Act is applicable from A.Y 2018-19 and the present case is...
Proceedings Under Remand Passed Without Application Of Mind: Delhi ITAT Deletes Addition Made By ITO
On finding that I-T Authorities had passed the same order which was earlier remanded, without proper application of mind, the New Delhi ITAT deleted the addition made by the ITOs.The Bench of Shamim Yahya (Accountant Member) observed that, “submission of the assessee has considerable cogency. Moreover, on earlier remand by the Tribunal, the authorities below have again passed the very same order without proper application of mind, in such circumstances, I set-aside the order of the authorities...
Investments In Mutual Funds Not A Basis To Conclude Activities Of Trust Are Not Genuine: Pune ITAT Restores Registration U/S 12A
On finding that entire proceeding was based on the covenants of the trust deed but not on the actual activities carried out by the appellant trust, the Pune ITAT set aside the order passed by CIT(E) cancelling the registration granted u/s 12AB(4) of the Income Tax Act, 1961.The Bench comprising Partha Sarathi Chaudhury (Judicial Member) and Inturi Rama Rao (Accountant Member) observed that, “Mere fact that the trust deed contains a covenant that enables the settlor to utilize the premises for...