Tax
CBDT Notifies Income Tax Exemption To Chandigarh Building And Other Construction Workers Welfare Board
The Central Board of Direct Taxes (CBDT) has notified the income tax exemption to Chandigarh Building and Other Construction Workers Welfare Board.The Board has exempted the income of Chandigarh Building and Other Construction Workers Welfare Board arising from Proceeds of the Cess collected under the Building & Other Construction Workers Welfare Cess Act, 1996 and rules and contribution and registration fees paid by the Beneficiaries under the Building and Other Construction Workers...
Jharkhand High Court Quashes Arbitrary Forfeiture Of Earnest Money By CCL, Orders Release
The Jharkhand High Court has taken a strong stance against the arbitrary cancellation of a contract and the subsequent forfeiture of earnest money by Central Coalfields Limited, a public sector coal supplier, and declared the forfeiture of earnest money by a public sector coal supplier as "indefensible" and "arbitrary."Justice Gautam Kumar Choudhary observed, “It was not that the coal value had not been paid within the stipulated time. The only fault for which the purchase order was cancelled...
Delhi High Court Stays Income Tax Reassessment Proceedings Initiated Against Oxfam India
The Delhi High Court has stayed the income tax reassessment proceedings initiated against Oxfam India."A counter-affidavit will be filed within the next six (6) weeks. Rejoinder thereto, if any, will be filed at least five days before the next date of hearing. In the meantime, there shall be a stay on the continuation of the reassessment proceeding till further directions of the court," the bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed.The assessee/appellant has...
Tax Cases Weekly Round-Up: 6 August To 12 August, 2023
Delhi High Court Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court Case Title: PCIT Versus M/S Eltek Sgs Pvt. Ltd. Citation: 2023 LiveLaw (Del) 668 The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill. Bombay High Court Shifting Of Commissionerates, Re-Organisation Of Office, Not...
Service Tax Not Chargeable On Tour Services For Carrying Out Hajj Pilgrimage In Saudi Arabia By Indian Pilgrims: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not chargeable on tour services for carrying out the Hajj pilgrimage in Saudi Arabia by Indian Pilgrims.The bench of Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the Ministry of External Affairs only allocates 30% of its Hajj pilgrimage quota to the tour operators. The services are exempt from tax liability.The appellants/assessee are engaged...
SEBI (Settlement Proceedings) Amendment Regulations, 2023 | SEBI Empowers Panel Of Whole Time Members For Settlement Proceedings
In a significant development, the Securities and Exchange Board of India (SEBI) has introduced an amendment to the Securities and Exchange Board of India (Settlement Proceedings) Regulations, 2018, via the Securities and Exchange Board of India (Settlement Proceedings) (Second Amendment) Regulations, 2023. The amendment, issued through notification No. SEBI/LAD-NRO/GN/2023/142 on August 10, 2023, shall be deemed to have come into force from January 17, 2023.According to the notification,...
Patna High Court Orders Railways To Refund Illegal VAT Deduction from Contractors' Bills
In a significant ruling, the Patna High Court has directed the Indian Railways to refund an amount of Rs. 38,22,897 to PCM Cement Concrete Pvt. Ltd., following an illegal VAT deduction made from the bills of the contractor.The division bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy held, “The transaction was purely of an inter-state sale of goods and is not a works contract nor a sale of goods eligible to tax within the State of Bihar. The sale of goods as per Annexure-2 and...
Lok Sabha Passes Amendments to GST Bills, Levies 28% Tax on Online Gaming, Casinos, and Horse Race Clubs
The Lok Sabha has passed amendments to two Goods and Services Tax (GST) bills for levying 28 per cent tax on online gaming, casinos and horse race clubs during the monsoon session of Parliament.Union Finance Minister Nirmala Sitharaman introduced two bills, namely the Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, in the lower house earlier today.Proposed ChangesThe proposed modifications involve adding clauses to Schedule...
Bombay High Court Quashes Review Order Which Disallowed Deductions, Being Contra To Natural Justice
The Bombay High Court has quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN).The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that the review order is in patent breach of the principles of natural justice and that, without jurisdiction, the petition deserved to be entertained.The petitioner/assessee executed two projects of electricity distribution lines for Maharashtra State Electricity...
Services Can’t Be Roped Into FTS Unless Person using Services Able To Use Technology: Gujarat High Court
The Gujarat High Court has held that mere rendering of services cannot be roped into fees for technical service (FTS) unless the person utilising the services is able to make use of the technical knowledge, etc.The bench of Justice Biren Vaishnav and Justice Devan M. Desai has observed that services were rendered by GIA US, and by considering the make available clause as per the India-US DTAA, the simple rendering of services is not sufficient to qualify as FIS or FTS.The respondent/assessee is...
Central GST (Amendment) Bill To Be Tabled To Include 28% GST On Online Gaming, Casinos, Horse Race Clubs
The Union Finance Minister Nirmala Sitharaman will introduce the Central Goods and Services Tax (Amendment) Bill, 2023.The Goods and Services Tax (GST) will be levied at a rate of 28% on online gaming, gambling, and horse racing under legislation that the Centre plans to introduce in the Lok Sabha.Online gaming, online gambling for money, virtual digital assets used to purchase online games, and suppliers in the context of online gaming are all defined in the amended provision of GST laws.The...
ITAT Imposes Cost Of Rs.10K On Foreign Portfolio Investor For Not Responding To Section 142(1) Notices
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.10,000 on a foreign portfolio investor (FPI) for not responding to notices under Section 142(1) of the Income Tax Act.The bench of Vikas Awasthy (Judicial Member) and Padmavathy (Accountant Member) has observed that there is negligence on the part of the assessee in not responding to the notices issued by the AO. The assessee should have made reliable arrangements for the communication of notices....