Tax
CESTAT Quashes Service Tax Demand On Cost Towards Advertisements For Clients In Newspapers And Magazines
The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on costs towards advertisements for clients in newspapers and magazines.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the service provider should be providing more than one service, and when one of the services provided is exempted, then alone the provisions of sub-rule (2) of Rule 6 of the Cenvat Credit Rules, 2004...
CESTAT Quashes Service Tax Demand On Amount Received For Vessels To Dredging Corporation
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the amount received for the charter or hire of vessels by the Dredging Corporation of India (DCI).The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the charter or hire of vessels would at best fall under Supply of Tangible Good Services and not under dredging services. The demand for service tax on the amount received...
Punjab Cricket Association Not Liable To Pay Service Tax Under The Head “Club or Association Service”: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Punjab Cricket Association (PCA) is not liable to pay service tax under the heading “club or association service”.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the department has not adduced any evidence to demonstrate that the appellants have collected the charges for providing any services to the members.The appellant/assessee, Punjab...
EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday
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.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that since the due date fell on a date that was a national holiday, the deposit could have been made by the respondent or assessee only on the date that followed the national holiday.The respondent/assessee submitted that the deposit of the employee’s contribution towards...
Tax Cases Weekly Round-Up: 24 To 30 September, 2023
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 has co-operated...
Assessee Resorts To Colourable Devices, Sham Transactions To Defraud Dept: ITAT
The Panaji Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee had resorted to colourable devices and sham transactions in order to defraud the Department by camouflaging its unaccounted income so that ultimately, the tax could be evaded.The bench of Partha Sarathi Chaudhury (Judicial Member) and Inturi Rama Rao (Accountant Member) has observed that tax planning is legitimate provided it is within the framework of law, and colourable devices cannot be part of tax planning....
CBDT Notifies Rule 21AHA And Form 10-IFA For New Manufacturing Co-Operative Societies To Opt For 15% Concessional Tax Rate
The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Twenty-Third Amendment) Rules, 2023.The new rule 21AHA is in respect of the Exercise of option under section 115BAE(5). The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAE by a person, being a cooperative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April 2024, shall be in Form No. 10-IFA.The option in Form...
Income From Nursery Activities Of Growing Various Types Of Lawns, Flower Plants And Vegetable Plants Is Agricultural In Nature: ITAT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that income from nursery activities such as growing various types of lawns, flower plants, and vegetable plants is agricultural in nature.The bench of Suchitra Kamble (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the activity of an agricultural nature in respect of engaging in nursery activities of growing various types of lawns, flower plants, and vegetable plants cannot be considered a commercial...
Uttarakhand High Court Set Aside Reassessment Proceedings Initiated against Amalgamated Company As It Became Non-Existent
The Uttarakhand High Court has held that PAN activation by a transferor company does not entitle revenue to issue a reassessment notice after the appointed date of amalgamation.The bench of Justice Ravindra Maithani has observed that the reassessment notice was given to the transferor company, which is a non-existent entity, after the appointed date, i.e., April 1, 2018. The order under Section 148A(d) of the Income Tax Act has been passed by the department against a non-existent entity.Delta...
'Court Not An Expert In Chemistry Or Environment': Allahabad HC Relegates Person Seeking Exemption Under Insecticide Act To Statutory Authority
The Allahabad High Court recently held that Court is not an expert body to decide whether Ethephon (an insecticide) falls within the exemption claimed by the petitioner under Section 38(1)(b) of the Insecticide Act, 1968. Though the Court noted that petitioner had failed to discharge its burden to prove that exemption was rightly claimed, it directed the petitioner to appear before the statutory authority as it is a fact-finding body who is empowered to decide the issue of exemption claimed...
CBDT Notifies Form 6D For Furnishing ‘Inventory Valuation Report’ U/s 142(2A) of Income Tax Act
The Central Board of Direct Taxes (CBDT) has notified the Form 6D for furnishing of ‘Inventory Valuation Report’ under section 142(2A) of the Income Tax Act.The Board has notified Income-tax (Twenty-Second Amendment) Rules, 2023.A new rule, Rule 14A has been inserted which deals with the Forms for a report of an audit or inventory valuation under section 142(2A). The report of the audit of the accounts of an assessee which is required to be furnished under clause (i) of sub-section (2A) of...
ITAT Deletes Penalty Of Rs.132 Cr. For Misreported Income Against Jaypee Cement
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the penalty of Rs. 132 crore for misreported income against the assessee, Jaypee Cement.The bench of Saktijit Dey (Vice President) and M. Balaganesh (Accountant Member) has observed that there was absolutely no mala fide intention on the part of the assessee to claim an excess deduction under Section 32AC. In the facts, even after the withdrawal of the differential 85% claim of deduction in the sum of Rs. 191 crores, the...