Tax
CESTAT Allows Refund Claim For Services Provided To The Regional Cancer Centre
The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the income tax deduction on account of octroi and additional sales tax.The Bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the gist of the SCNs was to deny the deduction on account of Octroi and Additional Sales Tax for the reason that the same is claimed on an equal basis, even though paid on some non-excisable goods.The appellant/assessee is in the...
There Cannot Be Any Addition Of The Regular Items Which Were Disclosed By The Assessee In The Regular Books Of Accounts: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that there cannot be any addition of the regular items that were disclosed by the assessee in the regular books of accounts.The bench of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the completed assessment cannot be disturbed in the absence of any incriminating material or documents, whereas the assessment or reassessment can be made with respect to abated assessment years. The...
Any Adjustment Against Bad And Doubtful Debts Amounts To Actual Writing Off The Bad Debts: ITAT Deletes Addition
The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition and held that any adjustment for bad and doubtful debts amounts to actual writing off the bad debts.The bench of T.R. Senthil Kumar (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that the assessee cannot be denied the benefit for the bad debts merely on the reasoning that such bad debts were not claimed in the profit and loss account but adjusted against the provision for bad debts.The...
Supreme Court Upholds Withdrawal Of Customs Notification Granting Concession On Import Of Printing Machinery, On The Ground Of Indigenous Angle
The Supreme Court has upheld the withdrawal of a customs notification which granted customs duty concession to “Rotary Printing Machine” of ‘single width two plate variety’, on the ground of indigenous angle, i.e., availability of the equipment in India. The top court remarked that the same cannot be characterized as an irrelevant factor for withdrawing tax concession.Vide an Amended Notification dated 11.02.2003, the concessional rate of customs duty was shifted to rotary printing machines of...
Payment Of Compensation To CSA Under Termination Agreement Is Not Taxable Under India-South Africa DTAA, BCCI Not Liable To Deduct TDS: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that payment of compensation to Cricket South Africa (CSA) under the Termination Agreement is not taxable under the provisions of the India-South Africa DTAA.The bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) has observed that since the payment is not chargeable to tax in India in the hands of CSA, there is no obligation on the assessee to deduct tax at source under Section 195.The...
Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the department can bring expenditures incurred in earlier years to be taxed in subsequent years on grounds of bogus expenditure.The bench of B. R. R. Kumar (Accountant Member) has observed that the department can bring the expenditure incurred in the earlier years to be taxed in the subsequent years if it is proved that the expenditure incurred was bogus, and the revenue can deem the liabilities ceased as time went by,...
GST Exemption On Architectural Consultancy Service Provided To Surat Municipal Corporation: AAR
The Gujarat Authority of Advance Ruling (AAR) has held that the "Architectural Consultancy Service" provided to Surat Municipal Corporation (SMC) for the construction of SMIMER Hospital and College Campus is exempt from GST.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the pure services (excluding works contract services or other composite supplies involving the supply of any goods) provided to the local authority by way of any activity in relation to a function entrusted...
AO Without Rejection Of Books Of Accounts Estimated The Income Based On Profit Margin Method: ITAT Deletes Addition
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT), while upholding the addition, has held that A.O. without rejection of books of accounts under Section 145 but estimated the income based on the Profit Margin Method.The Bench of T.R. Senthil Kumar (Judicial Member) and Waseem Ahmed (Accountant Member), while dismissing the grounds of the department, has observed that the additions made by the Assessing Officer do not survive taking into account the Tribunal decision in the...
Godrej Zymegold Contains Can Be Characterised As Fertilizer, Classified Under CTH 3101: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Godrej Zymegold, which contains nitrogen and chlorine, suffices to characterize the product as fertilizer, classified under CTH 3101.The bench of Ajay Sharma (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the department has taken recourse to the definition of ‘fertilizer’ as provided in Fertilizer Control Order, 1985, for changing the classification, which could not...
Can Tax Exemption Be Claimed Based On Doctrine Of Legitimate Expectation? Supreme Court Delivers Split Verdict
The Supreme Court bench comprising Justices M.R. Shah and Krishna Murari has rendered a split verdict on the issue concerning the applicability of the doctrine of legitimate expectation where a tax holiday/ sales tax exemption granted to the appellant- manufacturer was stopped pursuant to the amendments made to the West Bengal Sales Tax Act, 1994.Pursuant to the amendments made by the West Bengal Finance Act, 2001, Section 2(17) of the 1994 Act was amended w.e.f. 01.08.2001, and the words...
Service Tax Paid On Insurance Of Plant, Machinery For Manufacture Is Admissible As Cenvat Credit: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax paid on the insurance of plant, machinery, and equipment required for manufacture is admissible as CENVAT Credit.The Bench of Anil G. Shakkarwar (Technical Member) has observed that the co-generation plant, though not installed during the relevant period, received consultancy during the period, and service tax paid on consultancy is claimed as CENVAT credit and is admissible....
CESTAT Allows Income Tax Deduction On Account Of Octroi And Additional Sales Tax
The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the income tax deduction on account of octroi and additional sales tax.The Bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the gist of the SCNs was to deny the deduction on account of Octroi and Additional Sales Tax for the reason that the same is claimed on an equal basis, even though paid on some non-excisable goods.The appellant/assessee is in the...