E-Filing Of “Audit Report” Beyond The Date, Violative Of CBDT Circular: ITAT Denies Section 11 Exemption to Trust

The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) refused to grant the exemption under Section 11 of the Income Tax Act on the grounds that the trust e-filed the "audit report" in Form 10B beyond the date.The bench of Ravish Sood (a judicial member) has observed that the assessee trust had e-filed or uploaded the "audit report" in Form 10B as of June 21, 2019, which was much beyond the date specified under Section 139. Therefore, its case would clearly fall beyond the scope and gamut...

Relationship Between Consultant Doctor And The Hospital Can't Be seen As Employer Employee : ITAT Deletes Addition

The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition made towards short deduction of TDS and held that the relationship between a Professional Doctor consultant and the Hospital cannot be treated as an Employer-Employee relationship unless there exist specific Rules and Provisions in the contract of appointment between the consultant and Hospital.The bench of Mahavir Singh (Vice President) and Manjunatha. G, (Accountant Member) has observed that there was no error...

NLU-Delhi Is Not Engaged In Business: ITAT Quashes Income Tax Penalty

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the penalty under Section 271B of the Income Tax Act on the grounds that the NLU-Delhi is not engaged in "business" and exists solely for educational purposes.The bench of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that to justify invoking the mandate of Section 44AB, it was necessary to see if the assessee university can be said to be engaged in business as defined under Section...

Faceless Assessment Is Not A Fundamental Right: Delhi High Court Dismisses Gandhis, Aam Aadmi Party's Pleas

The Delhi High Court, while dismissing the plea of Rahul Gandhi, Priyanka Gandhi, and the Aam Aadmi Party, has held that neither the e-assessment nor the faceless assessment scheme in any manner modifies the power to transfer cases from one Assessing Officer under a Principal Commissioner of Income Tax to another Assessing Officer under another Principal Commissioner of Income Tax who are holding non-concurrent charges.The Bench of Justice Manmohan and Justice Dinesh Kumar Sharma has observed...

Tax Cases Weekly Round-Up: 21 May to 27 May 2023

Supreme CourtNo Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme CourtCase Title: Central GST Delhi – III vs Delhi International Airport LtdCitation : 2023 LiveLaw (SC) 457The Supreme Court has ruled that “user development fee” (UDF) levied and collected by the airport operation, maintenance, and development entities from passengers departing the concerned airports, is a statutory levy, and thus, it is not...

Section 56 (2)(viib) Is Applicable On Government Related Investors, Banks Involved In Insurance Business, Etc.: CBDT

The Central Board of Direct Taxes (CBDT) has notified the class of persons/entities on which Section 56 (2)(viib) of the Income Tax Act.The words "being a resident" have been proposed to be removed from section 56(2)(viib) with effect from 01 April 2024 in the Finance Bill 2023. Therefore, if this section were to become law, it would apply to any non-resident who makes an investment in equity shares of a privately held Indian company.According to section 56(2)(viib), if a company receives, in...

Demand Under Service Tax On RCM, Has To Be Worked Out And Calculated Transaction-Wise And Invoice-Wise: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that demand under service tax on reverse charge mechanisms has to be worked out and calculated transaction-wise and invoice-wise.The bench of Anil Choudhary (a judicial member) has observed that in the absence of any transaction-wise and invoice-wise calculation, the show-cause notices are vague and fit to be held misconceived, and misdirected.The appellant/assessee has service tax registration and is...

Once The Existence Of Goodwill Is Established, Depreciation On Goodwill Cannot Be Questioned: ITAT

The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the existence of goodwill is established, depreciation on goodwill cannot be questioned.The bench of K. Narasimha Chary (Judicial Member) and R.K. Panda (Accountant Member) has observed that the transfer of IP from Blujay India to Blujay UK cannot question the benefits accrued from the bundle of assets transferred in the course of acquisition as IP was just a part of the assets acquired from Four Soft.The assessee...

Broken Rice Can Be Exported Only On The Grant Of Govt. Permission: DGFT

The Directorate General Of Foreign Trade (DGFT) has amended the export policy of broken rice.The government has incorporated the Policy Conditions for broken rice against ITC (HS) code 1006 40 00 of Chapter 10 of Schedule 2 of the ITC (HS) Export Policy.The DGFT has prohibited export of the Broken rice. However, the export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their...

Mandatory For Cough Syrups Exporters To Get Samples Tested In Designated Laboratories Prior To Export: DGFT

The Directorate General of Foreign Trade (DGFT) has tightened the export policy for cough syrups.The existing export policy for cough syrups is free. However, as per the revised policy, cough syrup shall be permitted to be exported subject to the export sample being tested and the production of a Certificate of Analysis (CoA). CoA issued by any laboratories of the Indian Pharmacopoeia Commission: Ghaziabad, Uttar Pradesh; CDL, Kolkata, West Bengal; CDTL, Chennai, Tamil Nadu; CDTL, Mumbai,...

CBDT Increases Income Tax Exemption Limit On Leave Encashment For Non-Government Salaried Employees

The Central Board of Direct Taxes (CBDT) has increased the income tax exemption limit on leave encashment for non-government salaried employees.The notification was released by the Board in accordance with the 2023–24 Budget. The tax exemption on leave encashment upon retirement for salaried non-government workers was raised by Finance Minister Nirmala Sitharaman from Rs 3 lakh to Rs 25 lakh.“In exercise of the powers conferred by sub-clause (ii) of clause (10AA) of section 10 of the Income-tax...

Additions Can’t Be Made In Absence Of Incriminating Material: ITAT Deletes Income Tax Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the additions could not have been made in the absence of any incriminating material.The bench of Kavitha Rajagopal (Judicial Member) and B.R. Baskaran (Accountant Member) observed that the additions made by the Assessing Officer under Section 68 of the Act towards the sale of shares and also estimated commission expenditure are liable to be deleted since they are not based on any incriminating material found during the...