Tax
Assessment Invalid On Account Of A Mechanical Non-Speaking Approval Under Section 153D: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that assessment invalid on account of a mechanical non-speaking approval under Section 153D of the Income Tax Act.The bench of Kuldip Singh (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the assessing officer has passed a draft assessment order making huge additions, and such huge additions were approved without there being any application of mind. The basis of the addition was also not shared...
CBDT Notifies Income Tax Exemption To Multi Commodity Exchange Investor (Client) Protection Fund Trust
The Central Board of Direct Taxes (CBDT) has notified the income tax exemption to Multi Commodity Exchange Investor (Client) Protection Fund Trust under Section 10(23EC) of the Income Tax Act.“In exercise of the powers conferred by sub-section (23EC) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Multi Commodity Exchange Investor (Client) Protection Fund Trust set up by Multi Commodity Exchange of India Limited, Mumbai for the purposes of the...
Cognizant Technology Liable For Dividend Distribution Tax On Buyback Of Rs 19,000-Crore Shares: ITAT
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that Cognizant Technology is liable to pay dividend distribution tax on the buyback of Rs. 19,000 crore shares.The bench of Mahavir Singh (Vice President) and Shrimanjunatha. G (Accountant Member) has observed that the purchase of its own shares through a scheme sanctioned by the jurisdictional HC in terms of provisions of Section 391-393 of the Companies Act, 1956 amounted to the distribution of accumulated profits which entails...
Activity Of Collection, Cleaning, Segregation And Stacking Of Blasted Raw Magnesite Is Classifiable As ‘Mining Services’: CESTAT
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of collection, cleaning, segregation, and stacking of blasted raw magnesite is classifiable under the category ‘Mining Services’.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that the activities of collection, cleaning, segregation, and stacking of blasted raw magnesite are provided in relation to mining. The activities undertaken by the...
Patna High Court Upholds Constitutional Validity Of Section 16(4) Of CGST Act, 2017
The Patna High Court upheld the constitutional validity of Section 16(4) of the CGST/BGST Act, 2017 and did not find Section 16(4) to be violative or inconsistent with the fundamental rights guaranteed under the constitution.The bench of Justice Chakradhari Sharan Singh and Justice Madhuresh Prasad observed that concession of ITC under sub-section (1) of Section 16 of the CGST/BGST Act is dependent upon the fulfilment of requisite conditions laid down under various provisions, including Section...
CBDT Expands The List Of Securities Eligible For Tax Exemption On A Recognised Stock Exchange In IFSC
The section 47(viiab) exemption's scope has been expanded by the Central Board of Direct Taxes (CBDT).The Income Tax Act of 1961, Section 47(viiab), exempts transfers of capital assets made by non-residents on recognised stock exchanges situated in any International Financial Services Centre (IFSC) from paying capital gains tax.The exemption is now available to units of investment trust, units of exchange-traded funds and units of schemes framed under International Financial Services Centres...
Govt. Constitutes State Benches For GST Appellate Tribunal
The establishment of 31 benches for the Goods and Services Tax Appellate Tribunals (GSTAT) has been announced by the central government. The action is anticipated to assist firms in effectively resolving a range of disputes.The GST Council advised that GSTAT be established with one Principal Bench and several State Benches.The notification states that Uttar Pradesh will get three benches, the most of any State in the nation. There will be two benches in each of the bigger States of Gujarat,...
Refusal To Condone Delay In ITR filing , Consideration After 20 Years, Allahabad High Court Quashes Order
The Allahabad High Court has quashed the order refusing to delay condonation in filing ITRs for lack of records after more than 20 years of filing the condonation applications.The bench of Justice Siddhartha Varma and Justice Manoj Bajaj has observed that when the delay condonation application was filed on March 30, 1998, the applications ought to have been decided within the time provided by the Income Tax Act. The court was of the view that, at that point in time, all the records would have...
Benefit Of Vera Samadhan Yojana-2019 Cannot Be Denied Due To Erroneous Payment Figure In Tax Intimation: Gujarat High Court
While handing down a verdict in favor of Planet Automotive Pvt. Ltd., which had sought relief under the "Vera Samadhan Yojana-2019," a tax amnesty scheme introduced by the State of Gujarat, the Gujarat High Court, has affirmed that a minor error in the intimation should not prevent the petitioner from availing the benefits of the scheme, especially when they have met the essential criteria for eligibility.The division bench Justice Biren Vaishnav And Bhargav D. Karia opined, “Merely because, the...
Mirror And Sari Guard, Part Of Final Product- Motorcycle, CESTAT Allows Cenvat Credit To Hero MotoCorp
The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while allowing Cenvat Credit to Hero Motocorp, held that it is the statutory obligation of two-wheeler manufacturers to clear motorcycles from the factory with mirror assembly and sari guard.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that mirror assembly and sari guard fall under the definition of ‘input’ as defined under Rule 2(k) of the Cenvat Credit...
Unit Undergoing Relocation, Expansion And Change Of Ownership Not Eligible Under Budgetary Support Scheme: Sikkim High Court
The Sikkim High Court has held that if the unit undergoes relocation, expansion, or change of ownership, it will not be eligible under the scheme of budgetary support.The bench of Justice Bhaskar Raj Pradhan has observed that the intention of the Government of India in providing the Budgetary Support Scheme was to support those "eligible units" for the "residual period" not exceeding ten years of commercial production during which they would have been eligible to avail exemption for the...
CBIC Imposes Anti-Dumping Duty on imports of Chinese Steel For 5 Years
The Central Board of Indirect Taxes and Customs (CBIC) has imposed an anti-dumping duty on imports of Chinese Steel for 5 years.Chinese flat-base steel wheels are now subject to an anti-dumping charge of $613 per tonne. The government has suggested that the steel wheel duty be prolonged for an additional five years after it was first enacted in 2018.According to the announcement, "The extension of existing duties provides no undue advantage to the Indian industry."The notification went on to...