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....

Income Would Accrue Only When The Assessee Gets A Right To Receive The Income: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.The bench of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that the assessee would get a right to receive only when it is sanctioned to the assessee by the customs authorities and not when...

Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court

The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla has observed that the Tribunal was totally incorrect in saying that accepting the aggregation of royalty payments with other international transactions...

Calcutta High Court Dismisses Income Tax Dept’s Appeal On The Ground Of Low Tax Effect

The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects.The bench of Chief Justice T.S. Sivagnanam and Justice Ajay Kumar Gupta has observed that the total tax was less than Rs. 1 crore, which is the threshold limit fixed by the Central Board of Direct Taxes (CBDT).The department/appellant has raised the issue of whether ITAT erred in applying the rule of consistency when TP proceedings were not undertaken for earlier AYs and whether...

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that AO, after making adequate inquiries, proceeded to make an addition for alleged money receipts on a protective basis in the hands of the assessee. When adequate inquiries were made, they could not be subjected to revision by the PCIT...

Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost

The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.The bench of Justice Vivek Rusia and Justice Pranay Verma has observed that the Tribunal has set aside the order rejecting the application for provisional release of the currency. The order of the tribunal has attained finality in respect of provisional release, but before...

Section 68 Of The Income Tax Act Is Not Applicable On Share Premium: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.The bench of Narender Kumar Choudhry (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the provisions of Section 68 would be attracted when the assessee fails to prove the identity of the creditor, credit worthiness of the creditor, and genuineness of transactions. The...

Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court

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.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that sections 49 and 55(2) deal with ‘capital gains’ arising on the sale of goodwill and not with respect to depreciation on goodwill. Section 47, in express terms, excludes the transfer of capital assets in a scheme of amalgamation from...

Gujarat High Court Quashes Income Tax Reassessment Notices Against Non-Existent Entity

The Gujarat High Court has quashed the income tax reassessment notice against a non-existent entity.The bench of Justice Biren Vaishnav and Justice Devan M. Desai has observed that the erstwhile company Satyasarthi Estate Organisers Private Limited amalgamated with the petitioner Anokhi Reality Private Limited. The jurisdictional officer was informed of the amalgamation. The assessment proceedings were continued in the name of a non-existent entity, and the final assessment order, which was also...

Treatment Of Shares In Books Of Accounts Determines Taxation, JM Financial’s Set-off Not Colourable Device: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the treatment of shares in books of accounts determines taxation under capital gain or business income, and the method adopted for arriving at the sale consideration does not determine the nature of the transaction.The bench of Aby T. Varkey (Judicial Member) and Padmavathy S. (Accountant Member) has observed that shares reflected as investments in financials, held for a long time and earning dividend income, are...

Bank Not Obliged To Deduct TDS From FDR Interest To Jammu Development Authority: Jammu & Kashmir And Ladakh High Court

The Jammu & Kashmir and Ladakh High Court has held that the assessee bank shall not be obliged to deduct TDS from the interest payments made to the Jammu Development Authority (JDA) on its amount kept in FDRs.The bench of Justice Sanjeev Kumar and Justice Javed Iqbal Wani has observed that the JDA is similar to the Agra Development Authority, constituted under the provisions of the Uttar Pradesh Urban Planning and Development Act, 1973, and NOIDA, established under the Uttar Pradesh...