GST Registration Cancellation: Superintendent Of Central Tax To Take Independent Decision Without Influenced By Direction Of DGGI: Kerala High Court

The Kerala High Court has held that the Superintendent of Central Tax should take an independent decision without being influenced by the direction of the DGGI, Kochi Zonal Unit.The bench of Justice Dinesh Kumar Singh has observed that the DGGI, Kochi Zonal Unit, has already taken the decision to cancel the GST registration of the petitioner. The competent authority was only required to form the formalities, and the authority concerned or the competent authority could not have taken an...

Bogus Capital Gain By Sale Of Shares, Assessee Not A Beneficiary, ITAT Deletes Addition

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on account of bogus capital gain by the sale of shares of a penny stock company in the absence of incriminating material.The bench of Siddhartha Nautiyal (Judicial Member) and Waseem Ahmed (Accountant Member) has held that no material has been brought on record to suggest that the assessee was involved in any price rigging and that the case of the assessee has not been mentioned in the list of beneficiaries by...

Rajasthan High Court Seeks A Mechanism Matching Supplier's Credit Note With ITC Reversal, From Authorities

The Rajasthan High Court has asked for suggestions from the authorities with respect to a mechanism for matching a supplier's credit note with input tax credit (ITC) reversal.The bench of Justice Manindra Mohan Shrivastava and Justice Praveer Bhatnagar has found that in the absence of any statutory obligation cast on the respondent to undertake a matching exercise if the petitioner is willing to claim a reduction in tax liability, proof of reversal by the recipient is to be provided by the...

Presumptive Taxation, Income From Profession Can’t Be In Absence Of Notified Professional Qualification: ITAT

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that income from professions against which TDS is deducted cannot be taxed at 50% in the absence of notified professional qualification.The bench of Narender Kumar Choudhry (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the assessee is just a 10th grader who passed matriculation and does not fall under Section 44ADA, and therefore, the addition is liable to be deleted.Section 44ADA states that...

There Can Be No Protective Addition In Absence Of Substantive Addition: ITAT

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that protective addition presupposes the existence of substantive additions; there can be no protective addition in the absence of substantive addition.The bench of Yogesh Kumar U.S. (Judicial Member) and Pradip Kumar Kedia (Accountant Member) has observed that the assessment order was passed against the assessee on December 28, 2016, by making additions in the hands of the assessee firm on a protective basis to protect the...

GST Act | If Invoice Or Any Other Specified Document Is Accompanying Goods, Then Consigner Or Consignee Are Deemed To Be Owner: Allahabad HC

The Allahabad High Court held that if goods are accompanied by invoices or any other document as specified, either the consignee or the consigner shall be deemed owner of the goods. Penalty, if any, should be imposed under Section 129(1)(a) of the Goods and Services Tax Act, 2017. Petitioner was transporting a consignment for M/s Tata Steel Ltd. from Odisha to Pilkhua. Due to breakdown of engine in the State of Jharkhand, there was delay in transporting goods. As a result, E-Way Bills expired....

Tax Cases Weekly Round-Up: 17 September To 23 September, 2023

Delhi High Court Tax Authority Based In Delhi Lacks Jurisdiction On Withholding Tax Liability On Share Purchase Transaction: Delhi High Court Quashes Tax Demand Against Sumitomo Case Title: Sumitomo Mitsui Financial Group Inc. Versus CIT The Delhi High Court has deleted the tax demand against Sumitomo Mitsui Financial Group on the grounds of lack of jurisdiction. Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart Case Title: Flipkart India Private...

Fee Paid By TCS Towards The Brand To Tata And Sons Ltd. Is Not Capital In Nature, Royalty Not Chargeable: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the fee paid by the assessee, Tata Consultancy Services (TCS), towards the brand to Tata and Sons Ltd. is not capital in nature for the reason that the brand is not owned by the assessee.The bench of Vikas Awasthy (Judicial Member) and Padmavathy S. (Accountant Member) has observed that there cannot be any royalty that needs to be charged on the brand since the assessee is not the owner of the brand, and there cannot be any...

Innovation & Development Services Provided To A German Company Amounts To Export Of Service: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that innovation and development services provided to a German company amount to an export of services.The bench of Justice Ritu Bahri and Justice Manisha Batra observed that the petitioner/assessee does not carry out any marketing of the products of Fresenius Kabi Deutschland GmbH Germany (FKDG) nor any product is delivered by FKDG to it. The activities performed by the petitioner are original activities, and for doing the same, it has been charging...

Capital Gain Tax, No Retrospective Applicability Of Amendment Restricting Investment In India: Bombay High Court

The Bombay High Court has held that the amendment restricting investment in house property in India has retrospective applicability.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that the language of Section 54(F) of the Act before its amendment was that the assessee should invest capital gain in a residential house. It did not mention any boundaries. It is only after the amendment to Section 54(F) of the Act, which amendment came into effect on April 1, 2015, that the...

ALP Adjustment Falls Within Tolerance Band Of +/- of 5%: ITAT Deletes TP-Adjustment On Payment For Consultancy, Professional Fees

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the TP adjustment on payment for consultancy and professional fees and other services by the assessee to its Associated Enterprises (AEs).The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that ALP adjustment falls within the tolerance band of +/- of 5% as per the second proviso to section 92C(2) of the Income Tax Act, 1961.One of the viable solutions for regulating Transfer Pricing...

Service Tax Exemption On Renting Of Immovable Property Service For Transmission Or Distribution Of Electricity By TANGEDCO: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the renting of immovable property services for the transmission or distribution of electricity by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that all taxable services provided for the transmission and distribution of electrical energy are exempt from the...