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...

CBIC Rolls Out Automated Return Scrutiny Module For GST Returns In ACES-GGST Backend Application For Central Tax Officers

The Central Board of Indirect Taxes and Customs (CBIC) has rolled out the Automated Return Scrutiny Module for GST returns in the ACES-GST backend application for Central Tax Officers.During the recent review of the performance of the CBIC, Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman gave directions to roll out an automated return scrutiny module for GST returns at the earliest.In order to implement the non-intrusive means of compliance verification, CBIC has rolled...

Section 14A Disallowance Cannot Be More Than Exempted Income: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that section 14A disallowance cannot be more than exempted income.The bench of G.S. Pannu (President) and Sandeep Singh Karhail (Judicial Member) has directed the AO to restrict the disallowance made under section 14A of the Income Tax Act to the extent of exempt income earned by the assessee.Section 14A is a disallowance provision. This section provides that while computing the total income of any assessee, no deduction will be...

ITAT Allows Income Tax Deduction On The Interest Income Received From The Co-Operative Bank

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction under Section 80P(2)(d) of the Income Tax Act on the entire amount of interest income received from the Co-operative Bank.The bench of Sandeep Singh Karhail (Judicial Member) and S. Rifaur Rahman (Accountant Member) found that CIT(A) granted the relief to the assessee, allowing deduction under Section 80P(2)(d) on the entire interest income received by the assessee from the Co-operative Bank,...

CBIC Lowers The E-Invoicing Threshold To Rs. 5 Crores w.e.f. August 1, 2023

The Central Board of Indirect Taxes and Customs (CBIC) has notified the reduction of the e-invoicing threshold from Rs. 10 crores to Rs. 5 crores w.e.f. August 1, 2023.Currently, businesses having a turnover of more than Rs 10 crore are required to generate e-invoices for business-to-business (B2B) transactions.The e-invoicing threshold was reduced to Rs. 50 crore under the third phase from April 1, 2021, and then further brought down to Rs. 20 crore beginning April 1, 2022, under the fourth...