Value Of Scrap Need Not Be Included In The Assessable Value: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the value of scrap need not be included in the assessable value.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that for two other periods, pre- and post-2007, demand against the appellant has been set aside for the reason that the value of scrap cannot be included in the assessable value.The appellant/assessee is a manufacturer of rolled...

Supply Of Software Amounts To Sale Of Goods, Service Tax Demand Not Sustainable: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the supply of software amounts to the sale of goods, and the service tax demand is not sustainable.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant has developed smart terminal software (STM) for comprehensive terminal automation, which they have supplied for operating the equipment supplied by them. The appellants have also occasionally supplied...

Assessee Being A Debt Free Company, No Need To Impute Notional Interest On Outstanding Receivables: Delhi High Court

The Delhi High Court has held that the assessee was a debt-free company and there was no need to impute notional interest on outstanding receivables.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that there has to be a proper inquiry by the Transfer Pricing Officer by analyzing the statistics over a period of time to discern a pattern that would indicate that vis-à-vis the receivables for the supplies made to an associated enterprise, the arrangement reflects an...

Bombay High Court Set Aside Reassessment Proceedings Alleging Escapement Of Income On Transfer Of Leasehold Rights

The Bombay High Court has quashed the reassessment proceedings alleging escapement of income on transfer of leasehold rights.The bench of Justice K.R. Shriram and Justice Neela Gokhale has observed that if the amount was already considered in the subsequent AY and the assessment order was also passed, the question of escapement of income for the same amount in the previous AY will not arise as there was no change in the rate of tax.The petitioner/assessee is a charitable trust registered under...

Tax Cases Weekly Round-Up: 26 November To 2 December, 2023

Delhi High Court Appellant Was Pursuing Review Petition In Good Faith, Delhi High Court Condones Delay In Filing Appeal Against ITAT Order Case Title: Resorts Consortium India Limited Versus ITAT Citation: 2023 LiveLaw (Del) 1178 The Delhi High Court has condoned a 79-day delay in filing an appeal as a review petition was filed before the Income Tax Appellate Tribunal (ITAT). AO Lacked Tangible Material To Form A Belief That Income, Chargeable To Tax Had Escaped ...

Absence Of Prescribed Rates On Petroleum Products And Indian Made Foreign Liquor Before 26.03.2022, Tax Demand Invalid: Kerala High Court

The Kerala High Court held that the absence of prescribed rates on petroleum products and Indian-made foreign liquor before March 26, 2022, made the tax demand invalid.The bench of Justice Dinesh Kumar Singh has observed that though the petitioners were permitted to effect the parcel sales, the rate was not prescribed, and the rate has been prescribed only by the notification dated March 26, 2022.The petitioner/assessee is a bar-attached hotel (4-star) having FL3/FL11 licenses to sell...

L.G. Electronics Not Entitled To Claim Concessional Rate Of Basic Customs Duty On Import Of G-Watch: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee, L.G. Electronics, is not entitled to claim the concessional rate of basic customs duty on the import of G-Watch.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that once the G-Watch works on the internet, it is not acceptable that its essential character remains that of timekeeping only. Thus, the section notes and chapter notes of Chapter...

Dept. Can Dispute Residential Status On Strength Of TRC But Not Without Establishing Assessee To Be Shell Company: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that though the department has the authority to dispute the residential status of the assessee merely on the strength of the Tax Residency Certificate (TRC), it is incumbent upon the department to make a proper inquiry and to establish the fact that the party claiming benefit and the strength of the TRC is a shell or conduct company.The bench of G.S. Pannu (Vice President) and Saktijit Dey (Vice President) has observed that no...

Canned Pineapple Slices Classifiable Under Customs Tariff Heading No. 0804, Exemption Not Applicable: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that canned pineapple slices’ are classifiable under Customs Tariff Heading No. 0804.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that there was confusion in the department itself regarding the classification of canned sliced pineapples. It has been submitted that there is a ruling dated September 17, 2018, by the AAAR in their own group firm, M/s Bharat...

Club Membership Fees Paid By ICICI Bank For Employees Are To Be Treated As Business Expenditure: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has observed that club membership fees for employees are to be treated as business expenditures of a company under Section 37 of the Income Tax Act.The Bench of Amit Shukla (Judicial Member) and Padmavathy S. (Accountant Member) has upheld the decision of the CIT (A) and deleted the disallowance made by the AO by relying on its own order for Ay 2006-07 in the assessee’s own case.The appellant/assessee is in the business of banking and...

Employee Can’t Be Penalised For Non-Deposit Of TDS By Employer: Delhi High Court

The Delhi High Court has held that the employer of the petitioner or assessee, having failed to perform his duty to deposit the deducted tax with the department, cannot be penalized. It would always be open for revenue to proceed against the employer of the petitioner for recovery of the deducted tax.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the petitioner, having accepted the salary after deduction of income tax at source, had no further control over it...

Bombay High Court Orders Dept. To Refund Tax Deposited By HSBC Under Protest

The Bombay High Court has ordered the department to refund the tax deposited by HSBC under protest.The bench of Justice G. S. Kulkarni and Justice Jitendra Jain observed that once the amounts were deposited by the petitioner and retained by the department without the authority of law, the claim of the petitioner for refund could not have been denied. It was appropriate for the petitioner to invoke the jurisdiction under Article 226 of the Constitution, praying for a writ for the refund of money...