Tax
Activity Of Giving Investment Advices To The Client Abroad Amounts To Export Of Services: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of giving investment advice to a client abroad amounts to the export of services.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the decision to accept the advice rests with the foreign client. The client who is abroad can opt to accept the advice given by the appellant or reject it. In such circumstances, a decision taken by a...
Assessee Willfully Concealed Income: Madras High Court Refuses To Quash Prosecution
The Madras High Court has dismissed the assessee’s criminal original petition and held that the assessee was found to have suppressed and concealed the income, and the mens rea is categorically proved against the assessee since he failed to disclose a major portion of the income in his return.The bench of Justice G. K. Ilanthiraiyan has observed that the provision makes it punishable under Section 276CC of the Income Tax Act, 1961, for non-filing of return within the stipulated time and wilfully...
Section 80P(2)(d) Deduction Available On Interest Earned From Investments Made In A Co-Operative Bank: Madras High Court Quashes Reassessment
The Madras High Court, while quashing the reassessment proceedings, held that Section 80P(2)(d) of the Income Tax Act is not available on interest earned from investments made in a cooperative bank.The bench of Justice Krishnan Ramasamy relied on a division bench decision in the case of Salem Agricultural Producers Co-operative Marketing Society, in which it was held that the co-operative society carrying on the business of banking or providing credit facilities to its members is entitled to...
TRU Can’t Issue Clarification Regarding Classification Of Polypropylene Woven And Non-Woven Bags Under Customs Tariff Act, 1975: Delhi High Court
The Delhi High Court has held that the Tax Research Unit (TRU) cannot issue clarification regarding the classification of polypropylene woven and non-woven bags under the Customs Tariff Act, 1975.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the department could not point out any provision of the CGST Act, in terms of which the TRU could be said to have been clothed with the authority or jurisdiction to render a clarification with respect to the classification...
Amount Of Arbitration Award Received By Retiring Partner For Relinquishing Claim In The Firm Is Not Taxable: Bombay High Court
The High Court of Bombay has held that an amount of arbitration award received by a retiring partner for relinquishing its claim in the firm is not a taxable income.The bench of Justices K.R. Shriram and Dr. Neela Gokhale held that the amount received by a partner under a consent arbitration award for relinquishing its stake in the firm cannot be treated as an ‘income from other sources’ within the meaning of Section 56(1) of the Income Tax Act, 1961 to bring it within the rubric of taxable...
Amount Received In Satisfaction Of The Inheritance Rights Is Not A Taxable Income: Bombay High Court
The High Court of Bombay has held that an An amount received in satisfaction of the inheritance rights is not a taxable income.The bench of Justices K.R. Shriram and Dr. Neela Gokhale held that receipt of an amount in lieu of inheritance or pursuant to family arrangement cannot be charged with tax under the Act as arrangement is an agreement between the members of the same family for the benefit of the family either by compromising doubtful or disputed rights or by preserving the family peace,...
DGFT Grants One-Time Exemption To Patanjali Ayurved For Export Of Non-Basmati White Rice As Donation To Nepal For Earthquake Victims
The Directorate General of Foreign Trade (DGFT) has granted one-time exemption to Patanjali Ayurved for the export of non-basmati white rice as a donation to Nepal for earthquake victims.The export policy of Non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other) is prohibited.However, the government empowered under Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 while looking to the condition in Nepal...
Madras High Court Directs Dept. To Investigate Misuse Of Login ID By Unknown Person Facilitating Tax Evasion
The Madras High Court has directed the state tax officer to investigate the misuse of login IDs by unknown persons facilitating tax evasion.The bench of Justice C. Saravanan has observed that the petitioner alleged that the petitioner's login ID was misused by a third party, who filed returns and passed on a huge input tax credit to the third party.The petitioner/assessee submitted that a notice has been issued seeking to recover the amount of Rs. 11,63,24,233 without even serving a copy of the...
Wrongful Application Of Foreign Contribution By Trust Not In Accordance With Trust’s Objective: Delhi High Court Upholds Reassessment
The Delhi High Court has upheld the reassessment proceedings against a trust for wrongful application of foreign contribution, which was against the objective of the trust.The bench of Chief Justice Satish Chandra Sharma and Justice Tushar Rao Gedela has observed that the AO based its opinion on tangible and concrete information in the form of the petitioner’s trust deed and the statement of the managing trustee that certain identified foreign contributions received by the petitioner were...
Bombay High Court Direct JAO To Provide Specific Information Relied Upon To Issue The Section 148A(b) Notice
The Bombay High Court has directed the Jurisdictional Assessing Officer (JAO) to provide specific information relied upon to issue the notice under Section 148A(B) of the Income Tax Act.The bench of Justice K. R. Shriram and Justice Neela Gokhale has quashed the assessment order and directed the JAO to dispose of the matter on or before December 31, 2023.The department agreed to quash the assessment order and remand the matter back to the Jurisdictional Assessing Officer (JAO) to the stage of...
Rates On Which Power Is Available Through Indian Energy Exchange Can’t Be Applied As It Is Not Rates To Consumers But Rates To DISCOM: ITAT Deletes TP Adjustment
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the Transfer Pricing (TP) Adjustment as rates on which power is available through the Indian Energy Exchange cannot be applied because these are not the rates to the consumers but rates to the DISCOMs.In the Tata Steel Ltd case, the bench of Amit Shukla (Judicial Member) and Padmavathy S (Accountant Member) eliminated the TP-adjustment for the specified domestic transaction (SDT) of power transfer from eligible undertakings...
No Service Tax Payable On Service Of Laying Of Pipeline For Gujarat Water Supply & Sewerage Board: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on the service of laying a pipeline for the Gujarat Water Supply and Sewerage Board (GWSSB).The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that the service of laying pipelines for GWSSB does not fall under the service of industrial or commercial construction.The department has filed an appeal against the order-in-appeal passed by...