Cognizant Technology Challenges ITAT Order Upholding Dividend Distribution Tax Demand On Buyback Of Rs 19,000-Crore Shares Before Madras High Court

The Cognizant Technology has challenged the order of the Income Tax Appellate Tribunal (ITAT) which upheld the dividend distribution tax demand on buyback of Rs. 19,000-crore shares before Madras High Court.The issue relates to assessment year (AY) 2017–18, during which assessee, Cognizant acquired 94 lakh equity shares from its stockholders in the US and Mauritius for a face value of Rs. 10 apiece. A total of Rs 19,080.26 crore was paid for these shares, which were purchased at a price of Rs...

Finance Ministry Notifies 18% Of GST On Corporate Guarantees

The Central Board of Indirect Taxes and Customs (CBIC) has implemented an 18% Goods and Services Tax (GST) on corporate guarantees involving related entities, such as parent companies and subsidiaries, effective from Thursday, October 26th. The notification gives effect to the decision announced by the GST Council on October 8th. The CBIC order of the GST Rule is made prospectively such that the rule will have no impact on transactions executed prior to October 26th. The ...

Tax Cases Weekly Round-Up: 22 To 28 October, 2023

Supreme Court State Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023 Citation : 2023 LiveLaw (SC) 927 A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay High Court with respect to the validity of VAT Amendment Act in their respective states, made several...

UPVAT Act | Family Entitled To Insurance Money Under Group Insurance Policy If Registration Valid On Date Of Death Of Registered Dealer: Allahabad HC

The Allahabad High Court held that if registration under the Uttar Pradesh Value Added Tax Act, 2008 was subsisting on the day of his death, his family would be entitled to insurance claim under the Group Insurance Policy.The bench comprising of Justices Saumitra Dayal Singh and Surendra Singh-I held“If the deceased held a registration certificate prior to the occurrence of his death and that registration did not stand cancelled on the date of occurrence of his death, the status of the deceased...

Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn Shawls

The Jammu & Kashmir and Ladakh High Courts have held that jurisdiction in the case of shawls containing prohibited material lies in Delhi, not Jammu & Kashmir, as the seizure took place in Delhi.The bench of Chief Justice N. Kotiswar Singh and Justice M.A. Chowdhary has observed that in the absence of any specific pleadings in the writ petitions as well as memoranda of appeals, it cannot be said that any part of the cause of action had accrued to the appellant-petitioner at Srinagar.One...

TDS Paid From Assessee’s Own Account Can’t Form Part Of Consideration Of Service Charges Paid To Overseas Service Provider, No Service Tax Payable: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the TDS amount paid to the Income Tax Department by the appellant from his own account cannot form part of the consideration of the service charges paid to the overseas service provider, and service tax is not payable.The bench of D. M. Misra (Judicial Member) and Pullela Nageswara Rao (Technical Member) have observed that subsequent to the payment of the TDS, realizing that it was wrongly paid, a...

Delhi High Court Grants Assessee An Opportunity To Adduce Evidence On Qualification, Experience, Work Profile Of Employees To Avoid Section 40A(2) Disallowance

The Delhi High Court has granted the assessee an opportunity to adduce appropriate evidence—documentary or otherwise—before the Assessing Officer in order to establish its claim regarding educational qualification, experience, work profile, and in particular the duties discharged by the concerned persons to justify the claim of the appellant or assessee qua payment of salary to the persons concerned.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that as per the...

Delhi High Court Quashes Assessment Order Passed Before Expiry Of Time To File A Reply To The Show Cause Notice

The Delhi High Court has quashed the assessment order passed before the time to file a reply to the show cause notice expired.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the show cause notice was issued on March 31, 2023, giving time to the petitioner or assessee to file its reply by May 5, 2023 (15:49 hours). The impugned order was passed on April 13, 2023.The preliminary ground on which the petitioner/assessee assailed the assessment order dated April 13,...

Form No.10-IC Couldn’t Be Uploaded On ITBA Portal Due To Technical Problem: Gujarat High Court Allows Section 115BAA Concessional Tax Benefit

The Gujarat High Court has allowed the benefit of concessional tax under Section 115BAA of the Income Tax Act, as Form No.10-IC could not be uploaded on the Income Tax Business Application (ITBA) portal due to technical problems.The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has observed that Form 10-IC was furnished by the assessee on January 29, 2022. Since the assessee could not upload Form No.10-IC on the ITBA portal on account of a technical error, there being no fault of...

No Service Tax Payable On Bank Guarantee Provided To Group Of Company: CESTAT

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is leviable on the corporate guarantee provided by the appellant/assessee to various banks/financial institutions.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that there is no consideration insofar as the “corporate guarantee‟ issued by the assessee on behalf of their subsidiary companies is concerned.The appellants, M/s DLF Home...

Long-Term Capital Gain Can’t Be Claimed Without Owning Flats for At Least 3 years: ITAT

The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain cannot be claimed without owning flats for at least 3 years.The bench of R.K. Panda (Vice President) and Laliet Kumar (Judicial Member) has observed that PCIT is fully justified in invoking the provisions of Section 263 of the Income Tax Act as the assessee without holding the seven flats for a period of 3 years from the date of acquisition claimed deduction under Section 54F after selling these...

CESTAT Quashes Service Tax Demand On Liquidated Damages Against BHEL

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax on liquidated damages against Bharat Heavy Electricals Limited (BHEL).The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has set aside the demand for service tax on liquidated damages.The appellant/assessee is paying service tax under forward charge on various services, namely, commercial training or coaching, mandap keeper service, renting of immovable...