Bona Fide Non-Offering Of Interest On Income Tax Refund While Filing ITR Does Not Amount To Under-Reporting Of Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the explanation of the assessee for not offering the interest on income tax refund while filing its return of income is bona fide.The bench of Sandeep Singh Karhail (Judicial Member) and Amarjit Singh (Accountant Member) has observed that bona fide non-declaration of interest on income tax refunds cannot be said to be under-reporting of income by the assessee within the meaning of Section 270A of the Income Tax Act.The...

Transfer Pricing Report, Appellate Authorities Can Adopt Different Method From That Adopted By Assessee: Delhi High Court

The Delhi High Court has held that the appellate authorities are not precluded from adopting a method different from that adopted by the assessee in the transfer pricing report.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the ultimate aim of the transfer pricing exercise is to determine an accurate value of the arms length price for the purpose of taxation.The Assessing Officer, having noticed that the assessee during the year under consideration operated as...

U.P. Trade Tax Act | 'Tinted Glass' To Be Taxed As “Goods Or Wares Made Of Glass”, As it is Different from 'Plain Glass': Supreme Court

The Supreme Court has held that 'Tinted Glass Sheet' is different from 'Plain Glass sheet' and is thus liable to be taxed as “goods or wares made of glass” under Entry 4 of Notification No.5784 dated 07.09.1981, issued by State Government. Accordingly, the manufacturer of Tinted Glass is liable to pay tax @15% on such goods. The Bench comprising Justice S. Ravindra Bhat and Justice Aravind Kumar, observed that, “There is no vagueness in the notification dated 07.09.1981 and the entry No. 4 is...

Issue Of New Shares Is Not Transfer, Section 56(2)(vii)(c) Income Tax Act Not Invokable : Gujarat High Court

The Gujarat High Court has held that the shares that have been allotted to the assessee were not “received from any person,” which is the fundamental requirement for invoking Section 56(2)(vii)(c). The property must pre-exist for application of Section 56(2)(vii)(c), which is clear from the intention of the legislature”.The division bench of Justice Biren Vaishnav and Justice Bhargav D. Karia has observed that the words “allotment of shares” indicate the creation of shares by appropriation out...

Output VAT Refund Received By Hyundai Motor Towards Investment Promotion Subsidy Is Non-Taxable Capital Receipt: ITAT

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that the output VAT refund received by Hyundai Motor towards investment promotion subsidy is a non-taxable capital receipt.The bench of V. Durga Rao (Judicial Member) and Manjunatha G (Accountant Member) has observed that the output VAT incentive (investment promotion subsidy) granted for the purpose of setting up or expanding its manufacturing facility is a capital receipt and hence cannot be treated as income under the...

Amount Paid Upfront As Premium For Lease Of Hospital For 30 years Or More, Exempt From GST: Allahabad High Court

The Allahabad High Court has held that premium for plots allocated for hospitals under lease extending up to 30 years or more falls under the definition of ‘amount paid upfront’ and is exempt from Goods and Service Tax.While quashing the demand letter by Yamuna Expressway Industrial Development Authority issued to the petitioner, bench comprising of Justices Saumitra Dayal Singh and Vinod Diwakar observed that YEIDA had failed to show which conditions of the exemption notifications were not...

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile

The Allahabad High Court has quashed demand of Rs. 235.52 Crores raised against Vivo Mobile India Private Limited by GST Authorities vide order under Section 74(9) of the Goods and Service Tax Act 2017.The bench comprising of Justices Saumitra Dayal Singh and Vinod Diwakar while granting relief to Vivo Mobile held that Input Tax Credit is a substantive right granted to the assesee under Section 16 of the GST Act. Further, it was held that a circular though in force cannot be enforced contrary to...

DPPIT Recognized Start-Ups Not to Face Verification On Account Of Angel Taxation: CBDT

The Central Board of Direct Taxes (CBDT) has notified that the Department for Promotion of Industry and Internal Trade (DPIIT) recognized start-ups will not face verification on account of angel taxation.When an unlisted company sells shares to a buyer for more than their fair market worth, angel tax, which is income tax at a rate of 30.6%, is assessed. It used to be restricted to investments made by residents of the country. However, starting on April 1, 2024, the Finance Act 2023 intended to...

Tax Cases Weekly Round-Up: 8 To 14 October, 2023

Supreme Court Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court Case Title: Commissioner of Customs (Imports), Mumbai v. M/s Ganpati Overseas Citation : 2023 LiveLaw (SC) 864 The Supreme Court has recently highlighted that the transaction value (the price actually paid or payable for the goods) should be the primary basis for customs valuation and that other valuation...

Services Provided to IIT & NIT Exempt From Service Tax: Supreme Court Holds After Interpreting 'Or' & Semicolon In Exemption Notification

In an interesting judgment, the Supreme Court held that the Indian Institute of Technology and the National Institute of Technology will come under the Mega Service Tax Exemption Notification issued by the Department of Revenue in 2012(and amended and clarified by a subsequent notification issued in 2014).The issue in the case related to the service tax liability of M/s Shapoorji Pallonji and Company Pvt.Ltd. over the contract works executed for the IIT-Patna and NIT-Rourkela.In 2012, the...

CENVAT Credit Availed On ‘Banking And Financial Services’ Used In Providing Renting Of Immovable Property Service Is Admissible: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit availed on ‘banking and financial services’ used in providing renting of immovable property is admissible.The bench of D. M. Misra (Judicial Member) has relied on the decision of the Karnataka High Court in the case of Oberon Edifices & Estates Pvt. Ltd. vs. CC CE & ST, in which it was held that various input services used in providing Rental of Immovable Property services are...

Pollution Control Services Of Factory Are Input Services, Eligible For Cenvat Credit: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services that are in relation to pollution control in the factory are input services in terms of Rule 2(l) of the Cenvat Credit Rules, 2004 and hence are eligible for Cenvat credit.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that services related to pollution control as input services and credit were allowed even though such services are not directly used in the...