Allahabad High Court Dismisses Challenge To Appointment Of Commissioners Of Income-Tax (Appeals)

The Allahabad High Court has held that Sections 116 and 117 of the Income Tax Act, 1961 empower the Central Government to appoint Commissioner of Income-Tax (Appeals). Same pay scale would not make provisions of appointment under other statues applicable to the appointment of authorities under the Act of 1961.“First and foremost, we find that the statute, i.e. the Act of 1961 is a self contained code which clearly vests jurisdiction with the Central Government to appoint such persons as it...

Tax Cases Weekly Round-Up: 16 July To 22 July, 2023

Supreme Court Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court Case Title: Principal Commissioner of Income Tax vs King Buildcon Pvt. Ltd. Citation : 2023 LiveLaw (SC) 532 The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot...

Chocolate Peanut Chikkies Attracts 18% GST: AAR

The Karnataka Authority of Advance Ruling (AAR) has held that Chocolate Peanut Chikkies attract 18% GST, whereas other chikkies attract 5% GST.The bench of M.P. Ravi Prasad and Kiran Reddy T. has held that the product "Chocolate Peanut Chickies" contains cocoa powder. Cocoa and Cocoa Preparations are covered under Chapter 18. Chapter heading 1806 covers Chocolate and other food preparations containing cocoa, and chapter heading 1806 90 20 covers Sugar Confectionery containing Cocoa. Thus, the...

18% GST Payable On Service of Charging Of Battery Of Electrical Vehicle: AAR

The Karnataka Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on the service of charging the battery of an electrical vehicle.The bench of M.P. Ravi Prasad and Kriran Reddy T. has observed that the Electrical Vehicle contains a motor to rotate the wheels that functions out of the energy sourced through the battery, and thus the said vehicle qualifies to be a motor car. Thus, charging the batteries of electric vehicles amounts to charging the batteries of motor cars, and...

No TDS Payable On Dividend Paid By Aircraft Leasing IFSC Unit: CBDT

The Central Board of Direct Taxes (CBDT) has notified that no TDS is deductible On dividends paid by the Aircraft Leasing International Financial Services Centre (IFSC) Unit.The Central Government specified that no deduction of income tax shall be made under Section 194 of the Income-tax Act from any income in the nature of a dividend paid by any unit of an International Financial Services Center.IFSC is primarily engaged in the business of leasing an aircraft (payer) to a company, being a Unit...

Income-Tax (Thirteenth Amendment) Rules, 2023: CBDT Introduces New Sub-rule For Movable Property Exchange

The Central Board of Direct Taxes (CBDT), Ministry of Finance, has issued Notification No. 51/2023-Income Tax on July 18, 2023, amending Rule 11UAC of the Income-tax Rules, 1962. This new amendment is known as the Income-tax (Thirteenth Amendment) Rules, 2023 and comes into effect immediately. Under the Income-tax (Thirteenth Amendment) Rules 2023, a significant addition has been made in the form of a new sub-rule inserted in rule 11UAC. This sub-rule is applicable to movable property,...

RBI Includes ‘NongHyup Bank’ In The List Of Scheduled Banks Under Schedule II of RBI Act, 1934

The Reserve Bank of India (RBI) vide Notification DoR.RET.REC.25/12.07.160/2023-24 addressing all banks, has informed about the inclusion of “NongHyup Bank” in the Second Schedule of the RBI Act, 1934. Nonghyup Bank is an agricultural bank headquartered in Jung-gu, Seoul, South Korea. The bank was established in 2012 as detached from, and is now owned by the NACF. Nonghyup Bank entered India in 2016. The above inclusion was made through vide a previous notification (Notification...

DGFT Amends Export Policy Of Non-Basmati White Rice From 'Free' To 'Prohibited'

In a significant move, the Government of India, acting through the Department of Commerce and the Directorate General of Foreign Trade (DGFT), has issued a notification, amending the Export Policy of Non-Basmati rice. The amendment has been made against ITC (HS) Code 1006 30 90 of Chapter 10 of Schedule 2 of the ITC (HS) Export Policy. As per Notification No. 20/2023 DGFT, the export of Non-Basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other)...

Passing Of Project Specific Architectural Drawings And Design With Measurement Doesn’t Amount To ‘Make Available’ Technical Knowledge: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the mere passing of project-specific architectural drawings and designs with measurements did not amount to making available technical knowledge, know-how, or processes.The bench noted that G.S. Pannu (President) and Astha Chandra (Judicial Member) observed that the assessee has not transferred any technical expertise, skill, or knowledge along with the drawings and designs of the particular building.The appellant/assessee...

Gold In Any Form Fails Pass Test Of Second-Hand Goods, Marginal Scheme Benefit Not Applicable: AAR

The Kerala Authority of Advance Ruling (AAR) has ruled that the benefit of the marginal scheme is not applicable to gold, as gold in any form fails to pass the test of second-hand goods.The bench of Dr. S.L. Sreeparvathy and Abraham Renn S. has observed that the applicant cannot determine the value of gold as per Sub Rule 5 of Rule 32 of the CGST, Rules 2017, which restricts Input Tax Credit availment only on the purchase of second-hand goods, which are further sold under the margin...

Rapigro Is A Plant Growth Regulator, Attracts 18% GST: AAR

The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that Rapigro attracts 18% GST.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that ‘Rapigro’ is classifiable as a Plant Growth Regulator and not a fertilizer.The applicant, M/s. Isagro was engaged in the manufacture of the product Rapigro and was classifying it under TI 3507 of CETA '85 as a fertilizer. However, Central Excise authorities classified it under TI 38089340 as a 'plant growth regulator'.The...

While Company Has MD, Non-Executive Director Can’t Be Person In Default: SEBI

The Securities and Exchange Board of India (SEBI) has held that a non-executive director is not an ‘officer who is in default’ and therefore cannot be held liable for refunds under Section 73 of the Companies Act.The bench of Ananth Narayan G. has observed that no liability could be imposed on a non-executive director in his capacity as ‘officer who is in default’ where a company had a managing director or a whole-time director or manager.The company, Alchemist Holdings Limited (AHL), issued...