Kolkata ITAT Deletes Addition Made Based On Third-Party Statement Who Was Not Allowed To Be Cross- Examined By Assessee

Finding that assessee has discharged the burden of proving identity, creditworthiness, and genuineness of the creditors to the loan transaction, the Kolkata ITAT deleted the addition made for alleged unexplained loan under Section 68 of Income Tax Act, 1961 based on the statement of third-party in a post-search assessment whose cross-examination was never allowed to assessee.The Member of the ITAT comprising of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) observed that “The...

UPGST | Truck Is Capital Asset Of Transporter, Seizure Without Notice Affects Civil Rights: Allahabad High Court

The Allahabad High Court has held that the seizure of a vehicle transporting goods affects the civil rights of the transporter as the truck is a capital asset of the transporter. The Court held that the transporter ought to be afforded an opportunity of hearing before passing any penalty order against him.While observing that the vehicle carrying the goods could be released under proviso-1 of Section 129 (6) of the UP Goods and Service Tax Act, 2017 on payment of Rs. 1 Lakh, the bench comprising...

Delhi High Court Directs Customs Commissioner To Release Amount After Realising Redemption Fine, Penalty From Seized Foreign Currency

The Delhi High Court has directed the Customs Commissioner to release the remaining amount after realizing the redemption fine and penalty from the seized foreign currency.The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja has observed that ordinarily, the adjudicating officer needs to give the owner of the goods the option to pay a fine in lieu of confiscation, and if such a fine is not paid within a period of 120 days, such an option will become void. But the goods seized in the...

GST ITC Can Be Availed On Roof Top Solar System As It Constitute Plant And Machinery: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that roof-top solar systems with installation and commissioning constitute plant and machinery.The bench of Amit Kumar Mishra and Riddhesh Raval has observed that applicants are eligible to avail of ITC on rooftop solar systems with installation and commissioning under the GST Act.The applicant is engaged in the business of manufacturing and selling welding wires. The applicant supplies its products and services after discharging 8% GST....

Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023: Govt. Notifies Provisions Relating To 'Online Gaming'

The Maharashtra Government has notified the Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023 which introduced the provisions relating to 'online gaming' and 'Online Money Gaming.'The addition of definitions for terminology like "virtual digital asset" and "specified actionable claim" is a noteworthy feature of this update. Furthermore, the Act substitutes the phrase "specified actionable claims" for the more general word "lottery, betting, and gambling."As per the newly inserted...

Transactions Concerning Mutual Funds Not In The Nature Of Investment And Not Motivated By Trade: Delhi High Court

The Delhi High Court has held that transactions concerning mutual funds were in the nature of investment and not motivated by trade.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the intent has to be ascertained keeping in mind the magnitude and frequency of the transactions, the period for which shares are held, the purpose for which they are held, and how transactions are disclosed in the books of account. There is no presumption in law that the acquisition...

Pair Of Bra Cups Are Used For One Brassier, Customs Duty Is To Be Charged On Value Of Pair: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if a pair of bra cups is used for one brassier, customs duty is to be charged on the value of the pair.The bench of P. A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that duty is to be charged on the value of the pair and not on a single piece. The packing list clearly shows the items were imported in pairs, and it is also a fact that a pair of bra cups is used for...

Design Work Of Slaughter House Established For Kolkata Municipal Corporation Covered Under Article 243W, No Service Tax Payable: CESTAT

The Allahabad Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the design work of slaughterhouses established for Kolkata municipal corporations is covered under Article 243W of the Constitution of India, and no service tax is payable.The bench of P. K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) has observed that the slaughter house was established for Kolkata Municipal Corporation in terms of Article 243W read with Schedule 12th of the...

Dept. Not Empowered To Retain Amount Deposited Under-Protest: CESTAT

The Allahabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the amount deposited during the pendency of adjudication proceedings or investigation is in the nature of deposit made under-protest or pre-deposit and therefore principles of unjust enrichment would not be attracted.The bench of P.K. Choudhary (Judicial Member) has observed that deposits made under-protest or pre-deposit cannot be retained by the department, as it has no authority to retain the amount and it...

Adjudication Order Can't Travel Beyond Show Cause Notice: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the adjudication order cannot travel beyond the scope of a show cause notice.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that when, with regard to any charge or assignment, the noticee is not put to notice, that issue cannot be decided in the adjudication order.On the basis of the investigation and recording of the statements of the employees of the...

Tax Cases Weekly Round-Up: 7 To 13 January 2024

Supreme CourtDefinition Of 'Manufacture' U/s 2(e)(1) Of UP Trade Tax Act Does Not Include Blending And Packaging Tea: Supreme CourtCase Title: Commissioner Of Trade Tax, U.P. v. M/s Mishra Tea Blending And Packing Industries, UP [CIVIL APPEAL NOS. 5677-5678/2011]Citation: 2023 LiveLaw (SC) 1076Recently, the Supreme Court has held that the definition of 'manufacture' under Section 2(e)(1) of the U.P. Trade Tax Act, 1948 does not include blending and packaging tea.Hiring Of Motor Vehicle Or Cranes...

Indian Chamber Of Commerce Entitled To Claim Exemption In Respect Of Receipts From Seminars And Conferences: ITAT

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Indian Chamber of Commerce (ICC) is entitled to claim exemption in respect of its entire receipts.The bench of Rajesh Kumar (Accountant Member) has observed that the ICC is not carrying on any activity of holding meetings, seminars, and conferences for business purposes but only to support its main object, and it charges its participants, members, and non-members the amount of the fee, which does not even cover the...