Tax
Tax Not Payable On Interest Accrued On FD Which Is Subject To CBI’s Prohibitory Order: ITAT
The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that tax is not payable on interest accrued on FD, which is subject to the CBI’s prohibitory order.The bench of Madhumita Roy (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the lower authorities have committed an error in bringing the interest accrued on FD, which is subject to a prohibitory order by CBI Hyderabad, into tax in these assessment years under consideration, and the same has to be...
Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court
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 methods be invoked sequentially only when there is evidence to doubt the correctness of the declared transaction value. A division bench of Justice B.V Nagarathna and Justice Ujjal Bhuyan added that in such cases, the burden of proof was on the customs department to establish undervaluation."If the...
Calcutta High Court Upholds Constitutional Validity Of Explanation to Section 10AA(1) Inserted By Finance Act 2017
The Calcutta High Court has upheld the constitutional validity of the explanation to Section 10AA(1) of the Income Tax Act inserted by the Finance Act 2017.The bench of Justice Md. Nizamuddin has observed that the principle of legitimate expectation is not applicable to the case of the petitioner, and the explanation after Subsection (1) of Section 10AA of the Income Tax Act, 1961, inserted by amendment with prospective effect from April 1, 2018, applicable in respect of the assessment year...
CBDT Notifies Income Tax Exemption To Punjab Nurses Registration Council
The Central board of Direct Taxes (CBDT) has notified the income tax exemption to Punjab Nurses Registration Council under section 10 (46) of the Income-tax Act, 1961.The Punjab Nurses Registration Council which is a council constituted by the Government of Punjab. The income tax exemption shall be allowed on fees from Nursing students and affiliated nursing institutions; and interest earned on funds deposited in banks including fixed deposits.The notification shall be effective subject to...
No Basis Of Allocation Or Actual Cost Incurred For Affiliates: ITAT Confirms Additions For Cost Reimbursement As FTS
The Mumbai Bench of Income Tax Appellate Tribunal, while confirming the additions for cost reimbursement as fees for technical services (FTS), noted that the assessee had no basis of allocation or actual cost incurred for affiliates.The bench of Aby T. Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the assessee has entered into a support services agreement to provide support services through the various cost centers but failed to submit any details or proper...
Activity Of Fitting Power Lens Into Spectacle Frames Does Not Amount To Manufacture, Excise Duty Demand Not Sustainable: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of fitting power lenses into frames does not amount to manufacture, and the demand for excise duty is not sustainable.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that post-manufacture of the spectacle frames and lenses, the goods are sent separately to the petitioners' show rooms, and what is undertaken in the show room is only...
Dept. Failed To Produce New Or Tangible Information To Justify The Reopening Of Assessment Against IDFC: Madras High Court
The Madras High Court has quashed the reassessment proceedings against the IDFC as the department failed to produce any new or tangible information to justify the reopening of the assessment.The bench of Justice Anita Sumanth has observed that the information already on file that was examined in the first instance cannot satisfy the legislative requirement under Section 148 Explanation 1, which calls for the department to have such evidence that implies the income has escaped assessment.The...
CBDT Notifies Income Tax Exemption To National Farmers Welfare Program Implementation Society
The Central Board of Direct Taxes (CBDT) has notified the income tax exemption to National Farmers Welfare Program Implementation Society under section 10 (46) of the Income-tax Act, 1961.The exemption shall be granted to National Farmers Welfare Program Implementation Society on Government Grant, Miscellaneous receipts from RTI, Tender Fee, Fines & Penalties and sale of obsolete items; and Interest on deposits.The notification shall be effective subject to various conditions. ‘National...
Delhi High Court Quashes Order Exempting Indian Trade Promotion Org. From Entertainment Tax On Trade Fairs
The Delhi High Court has quashed the order of the Financial Commissioner exempting the Indian Trade Promotion Organization from entertainment tax on trade fairs.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that entry to the Pragati Maidan is regulated and the visitors are allowed entry on payment of an admission fee. Once they are inside the complex, they can visit not only stalls or pavilions with regard to trade and commerce, but they could also access movies,...
Tax Cases Weekly Round-Up: 1 To 7 October, 2023
Delhi High Court EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday Case Title: PCIT Versus Pepsico India Holding Pvt. Ltd. The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday. Bombay High Court Bombay High Court Quashes Reassessment Against Knight Riders Sports Case Title: Knight Riders Sports...
Tax Cases Monthly Round Up: September 2023
Direct Tax Supreme Court Material Disclosed To Income Tax Settlement Commission Needn't Be Something Which Wasn't Discovered By Assessing Officer : Supreme Court Case Title: KOTAK MAHINDRA BANK LIMITED vs COMMISSIONER OF INCOME TAX BANGALORE AND ANR Citation : 2023 LiveLaw (SC) 822 The Supreme Court has ruled that Section 245H of the Income Tax Act, 1961, which empowers the Settlement Commission to grant immunity from prosecution and penalty to the assessee if he...
GST Council Recommends Conditional Duration IGST Exemption To Foreign Flag Foreign Going Vessel When It Converts To Coastal Run
The GST Council recommends conditional and limited duration IGST exemption to foreign flag foreign going vessels when it converts to coastal run.Foreign-going vessels are liable to pay 5% IGST on the value of the vessel if it converts to a coastal run.GST Council recommends conditional IGST exemption to foreign flag foreign going vessel when it converts to coastal run subject to its reconversion to foreign going vessel in six months.Click Here To Read The Press Release