GSTN Introduces New Functionality Of E-Invoice Exemption Declaration Functionality For Business Facilitation

The Goods and Service Tax Network (GSTN) has introduced the new functionality of e-invoice exemption declaration for business facilitation.The functionality is specifically designed for taxpayers who are by default enabled for e-invoicing but are exempt from implementing it under the CGST (Central Goods and Services Tax) Rules.The e-Invoice Exemption Declaration functionality is voluntary and can be accessed at the e-Invoice portal.The functionality is applicable to taxpayers who are exempt from...

District Mining Officer Liable To Collect TCS On Compounding Fee Received From Illegal Miners: ITAT

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee, the District Mining Officer, is liable to collect tax at source on the compounding fee received from illegal miners even in the absence of a valid lease or licence of mines.The bench of Ravish Sood (Judicial Member) and Arun Khodpia (Accountant Member) has observed that even in the absence of any lease, licence, or contract, if there is any transfer by the assessee of any right or interest in the mine, then...

Vodafone Idea Not Liable To Deduct TDS On Inter-Connectivity Usage & Bandwidth Charges: Karnataka High Court

The Karnataka High Court has held that the assessee, Vodafone Idea, is not liable to deduct TDS on interconnectivity usage and bandwidth charges.The bench of Justice P.S. Dinesh Kumar and Justice Ramachandra D. Huddar has observed that since the assessee was entitled to the benefits under the Double Taxation Avoidance Agreement (DTAA), it was not liable to deduct tax at source.The court has overturned the ITAT’s ruling in which the assessee was held to be a TDS defaulter on payment for...

GST | Show Cause Notice Must Contain Foundation Of Case On Which Action Is Necessitated: Allahabad High Court

The Allahabad High Court has held that show cause notice must contain the foundation of the case based on which action is being necessitated. In case, the show cause notice is sufficient, assessee has remedy of filing reply/objections before the concerned authorities. A bench comprising of Justices Siddhartha Varma and Arun Kumar Singh Deshwal held that there are two primary requirements of principles of natural justice to be followed while issuing a show cause notice:“(I) a show cause notice...

Capital Gains Can’t Be Added As Unexplained Cash Credit For Sale Of Penny Stock: Bombay High Court

The Bombay High Court held that capital gains cannot be added as unexplained cash credit for the sale of penny stock.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla has observed that since the shares were purchased on the floor of the stock exchange and not from a broker, payment was made through the banking channel, deliverables were taken in the DEMAT account where the shares remained for more than one year, contract notes were issued, and the shares were also sold on the...

Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court

The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the 3D conversion services provided by the assessee, including services such as ‘imparting special effects’, ‘post production service’, ‘digital asset management and content service’ and ‘digital restoration service’, will not fall under the ambit of ‘video-tape production’ under Section 65(120) of the Finance Act, 1994.While adjudicating the service tax demand raised on the assessee,...

AO’s Duty To Adjust Brought Forward Unabsorbed Depreciation: Bombay High Court Quashes Reassessment

The Bombay High Court, while quashing the reassessment, held that the Assessing Officer had in his possession all the primary facts and it was for him to draw a proper inference as to whether the brought forward unabsorbed depreciation should be adjusted against capital gains or profit and gains from business or profession.The bench of Justice K. R. Shriram and Justice Firdosh P. Pooniwalla has observed that the assessee/petitioner had truly and fully disclosed all material facts necessary for...

ITAT Deletes Addition On Security Deposits From Distributors/Retailers Against Coca Cola Bottles

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against Hindustan Coca-Cola Beverages on the Security Deposits made by distributors and retailers against Coca-Cola bottles.The bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya, (Accountant Member) has relied on the decision of the Supreme Court in the case of Sugauli Sugar Works [P] Ltd., in which it was held that the onus is on the revenue to bring on record tangible evidence to show that liability...

No specific ICDS, ITAT Disallows Deduction On Marketing & Sales Expenses To Real Estate Developer

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the deduction of marketing and sales expenses accumulated in work-in-progress as per accounting standards and revenue recognition policy.The bench of Rajpal Yadav (Vice President) and Girish Agrawal (Accountant Member) has observed that no specific Income Computation and Disclosure Standards (ICDS) have been notified for real estate developers; revenue and cost recognition are governed by the applicable accounting...

NRIs With Inoperative PANs To Update Residential Status, Clarifies Income Tax Dept.

According to the Income Tax Department, NRIs whose PANs are inoperative are asked to inform their respective Jurisdictional Assessing Officer (JAO) of their residential status and provide any necessary documentation in order to have their residential status updated in the PAN database.It is clarified that an inoperative PAN is not an inactive PAN. One may file the Income Tax Return (ITR), irrespective of PAN becoming inoperative.The NRIs have raised concerns regarding their PANs becoming...

ITAT Upholds Addition On Account Of Unexplained Cash Deposit Made During Demonetisation

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT), while rejecting the plea of the assessee for cash received in marriage, upheld the addition on account of an unexplained cash deposit made during demonetisation.The bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) has observed that there is no direct evidence available from the assessee to substantiate his claim, but going through the customary system in Indian society, no economic transaction can...

CESTAT Allows Import Duty Exemption For Repair Of The Vessel Sagar Sampada

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the vessel Sagar Sampada is an Ocean-Going Vessel that is eligible for import duty exemption in respect of spares, parts, and other specific items for the vessel's repair.The bench of P. A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that ocean-going vessels include scientific research vessels. FORV Sagar Sampada is a Scientific Research vessel, and hence, the...