Tax
Dept. Failed To Prove Sundry Creditors To Be Bogus: ITAT Deletes Addition Against Buffalo Meat Trader
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against the buffalo meat trader as the department has failed to prove sundry creditors to be bogus.The bench of Yogesh Kumar US (Judicial Member) and B. R. R. Kumar (Accountant Member) observed that the Assessing Officer has failed to pinpoint any discrepancy in the details filed and books of accounts, bills, and vouchers produced during the course of the assessment proceedings.The respondent/assessee is in the...
ITAT Allows Income Tax Deduction On Effluent Water Treatment
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction on effluent water treatment.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that effluent water treatment can be considered a water treatment plant eligible under Section 80IA of the Income Tax Act.The appellant/assessee is in the business of treating effluent water sold as waste and has received approval and consent from the Maharashtra Pollution Control...
CBDT Notifies The Procedure To Compute ‘Net Winnings’ From Online Games
The Central Board of Direct Taxes (CBDT) has notified the Income Tax (Fifth Amendment) Rules, 2023.The Board has notified a new Rule 133, which prescribes a manner for computing "net winnings" from online games under sections 115 BBJ and 194BA of the Income Tax Act, 1961.It was clarified that whenever there is payment to the user in kind or in cash, or partly in kind and partly in cash, which is not from the user account, the provisions of this rule shall apply to calculate net winnings by...
Rejection Of Application Under SVLDR Scheme Without A Hearing Is Violative Of Principles Of Natural Justice: Delhi High Court
The Delhi High Court has held that the summary rejection of the application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) without affording the opportunity to be heard would violate the principles of natural justice.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that in terms of the SVLDR Scheme, the petitioner would be entitled to the waiver of interest and penalty as it had paid the requisite tax prior to the stipulated date. There is...
TDS To Be Deducted By Online Game Platforms When The Winning Amount Exceeds The Threshold Of Rs. 100: CBDT
The Central Board of Direct Taxes (CBDT) has issued the Guidelines for the removal of difficulties under section 194 BA (3) of the Income-tax Act, 1961.The new section mandates a person, who is responsible for paying any person any income by way of winnings from any online game during the financial year to deduct income tax on the net winnings in the person's user account. Tax is required to be deducted at the time of withdrawal as well as at the end of the financial year. Net winning is...
‘Input Service’ Include Any Service Received In Or In Relation To Setting Up, Modernisation, Renovation Or Repair Of The Factory Premises: CESTAT Allows Cenvat Credit
The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the construction services and other services that are necessary for the renting of the business fall under the definition of ‘input service’ as provided under Rule 2(l) of the Cenvat Credit Rules, 2004.The two-member bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the definition of ‘input service’ is very wide and includes any service received in...
Income To Be Computed First After Making The Disallowance And Only 40% Resultant Income Has To Be Treated As Taxable Income: ITAT
The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has held that the income of the assessee should be computed first after making the disallowance and whatever the resultant income only 40% of that income has to be treated as taxable income in terms of Rule 8(1) of the Income Tax Rules, 1962.The bench of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) has directed the Assessing Officer to compute the income after making disallowance in respect of EPF late deposit by the...
CENVAT Credit Is Not Admissible On Input Services Attributable To Trading Activity: CESTAT
The Chandigarh Bench of the Income Tax Appellate Tribunal (CESTAT) has held that CENVAT credit is not admissible on input services attributable to trading activity.The bench of S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appellants have rendered themselves liable to pay a penalty under Rule 15 of the CENVAT Credit Rules, 2004. However, while the imposition of an equal penalty would be harsh, the omissions by the appellants can be mitigated by the...
No Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme Court
The 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 subjected to levy of service tax under the provisions of the Finance Act, 1994.The bench comprising Justices S. Ravindra Bhat and Dipankar Datta were hearing an appeal against the decision of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), who...
Bagasse Is An Agricultural Waste: CESTAT Quashes Excise Duty
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while quashing the excise duty, held that bagasse, being an agricultural waste or residue, could not be manufactured.The bench of Ajay Sharma (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that bagasse is only agricultural waste and residue, which itself is not the result of any process. Therefore, it cannot be treated as falling within the definition of Section 2(f) of the Central...
Tax Cases Weekly Round-Up: 14 May to 20 May, 2023
Supreme Court Credit Note Issued By Automobile Manufacturer To Dealer, In Consideration Of Replacement Of Defective Part, Attracts Sales Tax: Supreme Court Case Title: M/S. Tata Motors Ltd. vs The Deputy Commissioner Of Commercial Taxes (SPL) & Anr. Citation : 2023 LiveLaw (SC) 443 The Supreme Court has ruled that a credit note issued by an automobile manufacturer to a dealer of automobiles, in consideration of the replacement of a defective part done by the dealer...
Mere Payment By Account Payee Cheque Is Not Sacrosanct : ITAT Disallows Exemption On Penny Stock
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that mere payment by account payee check is not sacrosanct, nor can it make a non-genuine transaction genuine.The bench of Astha Chandra (Judicial Member) and B.R.R. Kumar (Accountant Member) has observed that the assessee cannot escape from the burden cast upon him, and unfortunately, the burden is heavy as the facts establish that the shares that were traded by the assessee had a phenomenal and fanciful rise in a short span...