Sponsorship Amount Made By IOCL To Global Cricket Corporation Is Not Royalty: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the sponsorship amount made by Indian Oil Corporation Limited (IOCL) to Global Cricket Corporation (GCC) is not royalty.The bench of Vikas Awasthy (Judicial Member) and Gagan Goyal (Accountant Member) has observed that since the payments made to GCC and Nimbus Sports International are not taxable in India, there is no need to deduct tax at source under Section 195 on such payments. Consequently, no disallowance can be made...

Full Pre-Deposit Payment Not To Be Done From Electronic Cash Ledger For Appeals Under Amnesty Scheme: Patna High Court

In a notable decision, the Patna High Court has ruled that the Revenue Department lacks the authority to mandate the Appellant to make a complete pre-deposit when filing an appeal under the Amnesty Scheme using the Electronic Cash Ledger.The central question addressed in the writ petition pertained to whether, upon initiating an appeal, ten percent of the outstanding amounts should be sourced from the Electronic Cash Ledger or the Electronic Credit Ledger.M/s. Friends Mobile (“the Petitioner”)...

Delhi High Court Upholds Constitutional Validity Of Section 115BBE Of Income Tax Act

The Delhi High Court has upheld the constitutional validity of Section 115BBE of the Income Tax Act.The bench of Acting Chief Justice Manmohan and Justice Mini Pushkarna has observed that Statutory Acts and their provisions are not to be declared unconstitutional on the fanciful theory that power would be exercised in an unrealistic fashion or in a vacuum or on the ground that there is an apprehension of misuse of Statutory Provision or the possibility of abuse of power. It must be presumed,...

Bihar VAT Act | Penalty Imposable U/S 56(4)(B) On Account Of Clerical Mistake In Mentioning Of Invoice Number In Suvidha Form: Patna High Court

Patna High Court has ruled that penalty is imposable under section 56(4)(b) of the Bihar Value Added Tax Act, 2005 (Bihar VAT Act) on account of clerical mistake in mentioning of invoice number in SUVIDHA Form.The above ruling came in a case filed by the petitioner, M/s Ceat Ltd. engaged in the manufacture and sale of tyres, tubes and flaps who was concerned with a penalty order passed under Section 60(4) (b) read with Section 56(4) (b) of the Bihar Value Added Tax Act, 2005 after detention of a...

Non-Mentioning Of DIN On Body Of Assessment Order Is Non-Est: ITAT

The Chandigarh Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-mentioning of the Director Identification Number (DIN) on the body of the assessment order is non-est.The bench of Aakash Deep Jain (Vice President) and Vikram Singh Yadav (Accountant Member) has observed that there is no mention of DIN in the body of the assessment order, and even there is no mention of any exception so carved for non-mentioning DIN in the body of the order, thus not in conformity with Paragraphs...

Bihar Entry Tax Act | Adjustment Of Entry Tax Paid On Damaged Cement Against VAT Liability Not Admissible: Patna High Court

In affirming the directive of the Commercial Tax Tribunal, the Patna High Court ruled that the adjustment of entry tax paid on damaged cement is not permissible under the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use, or Sale therein Act, 1993. The court reiterated and upheld the tribunal's decision, reinforcing that the provisions of the aforementioned act do not allow for the adjustment of entry tax in the case of damaged cement.The above ruling came in an appeal arising...

Patna High Court Grants Stay To Trimurti Private Limited On GST Demand Amid Tribunal Constitution Delay

In a recent ruling, the Patna High Court, while adjudicating a writ petition filed under Article 226 of the Constitution of India, has granted relief to Trimurti Private Limited by issuing a conditional stay on the GST demand. The petitioner sought various reliefs, primarily aiming to avail the statutory remedy of appeal against an impugned order under Section 112 of the Bihar Goods and Services Tax Act (BGST Act).The petitioner's ability to exercise the statutory remedy, however, was hindered...

Refund Application Could Not Be Uploaded Due To Technical Glitches, Refund Can't Be Denied: Delhi High Court

The Delhi High Court has held that the refund application was filed twice on the GST portal but could not be uploaded due to technical glitches.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that during the initial period of the rollout of the GST regime, both taxpayers and the officials of the GST departments faced innumerable difficulties that were being addressed. Some of the difficulties still persist and are being addressed. In this environment, it is not difficult...

Cognizant Technology Rs. 19,000 Crore Buyback Dividend Distribution Tax Controversy: Madras High Court Stays Rs.9403.09 Crores Demand

The Madras High Court has stayed the tax demand of Rs. 9403.09 crore in the case of Cognizant Technology's Rs. 19,000 crore buyback dividend distribution tax controversy.The bench of Justice R. Mahadevan and Justice Mohammed Shaffiq has directed that the assessee, Cognizant Technology, make a payment of Rs. 1500 crores in cash or give a letter to the bank to remit Rs. 1500 crores to the credit of the respondent or department from the fixed deposits available and furnish property security...

Revenue Cannot Beat Around The Bush, Keep Changing Goal Post At Each Stage: Allahabad High Court Quashes Detention Order

The Allahabad High Court has held that stand taken by revenue in the detention order cannot be changed in the subsequent show cause notice in proceedings arising out of same detention of goods.While quashing the detention order and consequential proceedings, the bench comprising of Justice Siddhartha Varma and Justice Shekhar B. Saraf held “It is trite law, settled by a catena of Supreme Court judgments, that the Revenue cannot beat around the bush and keep changing the goal post at each stage....

Once Initiation Of Proceedings Itself Is Bad, Consequential Proceedings Automatically Fails: Allahabad HC

The Allahabad High Court has held that once the initiation of proceedings is bad in law, all consequential proceedings shall fail.While dealing with recovery without show cause notice under the Excise Act, Justice Piyush Agrawal held“Once the initiation of the proceedings itself is bad, the consequential proceedings automatically fails in the eyes of law.”Certain samples were drawn by the Excise officials from the CL - 2/wholesale suppliers, which was not under control of the petitioner, but...

Tax Cases Weekly Round-Up: 17 To 23 December, 2023

Delhi High Court High-End KPO Services Provider Can't Be Compared With ITeS, Which Is BPO Services Provider: Delhi High Court Case Title: PCIT Versus Future First Info. Services Pvt. Ltd. Citation: 2023 LiveLaw (Del) 1301 The Delhi High Court has held that the high-end knowledge process outsourcing (KPO) services provider cannot be compared with the information technology-enabled services (ITeS), which fall under the category of BPO services provider. No Upward...