Functionality For Bank Account Validation Is Now Integrated With The GST System: GSTN

The Goods and Service Tax Network (GSTN) has issued an advisory on bank account validation.The functionality for bank account validation is now integrated with the GST system.The feature is introduced to ensure that the bank accounts provided by the taxpayer are correct.The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal.The taxpayer will also receive the bank account status details via registered email and mobile number...

Employee Remuneration, Legal Expenses, Board Meeting Expenses etc. , Can’t Be Attributable To Interest From FDs: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT), while refusing to allow the income tax deduction, has held that employee remuneration, salary, legal expenses, board meeting expenses, and director sitting fees cannot be attributable to the interest earned from the fixed deposits.The bench of C. M. Garg (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has observed that as per the provisions of Section 57(iii), all the expenditure laid out or expended wholly and exclusively...

Service Tax Not Leviable On Incentives For Achieving Sales Target: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not leviable on incentives for achieving sales targets.The two-member bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has relied on the decision of the CESTAT in the case of M/s DD Motors vs. Commissioner of Central Excise, Uttar Pradesh, and observed that the amount received for achieving certain sales targets is not taxable under the category...

Allocation Of Area Development Charges By The State Government Cannot Be Treated As Consideration Towards A Service: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the allocation of area development charges by the state government cannot be treated as consideration for service.The bench of B. R. R. Kumar (Accountant Member) has observed that for a service to be taxable, it is necessary that there be a service provider and service recipient relationship between the two parties.The appellant was granted rights to mine sand, rock, phosphate, flagstone, and coal...

Amount Declared As Turnover Can’t Be Concealed Income: ITAT

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the amount is declared as turn-over, it cannot be called concealed income and be taxed twice on the same amount.The bench of Anikesh Banerjee (a judicial member) has observed that the AO has no right to calculate sales on a hypothetical basis, ignoring the evidence submitted during the course of assessment proceedings in the form of VAT returns, purchase bills, and quantitative details.The appellant/assessee...

Assessee Explained The Source Of The Excess Stock Found During The Course Of Survey: ITAT Deletes Addition

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee has explained the source of the excess stock found during the course of the survey.The bench of Aby T. Varkey (Judicial Member) and Manjunatha (Accountant Member) has observed that when the assessee has explained that the source of excess stock found during the course of the survey is income generated from current-year business and the explanation offered by the assessee is plausible, then income offered...

Section 10AA Deduction Can’t Be Denied Merely Not Receiving Convertible Foreign Exchange On The Deemed Exports: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Section 10AA deduction cannot be denied merely on the reasoning that the assessee did not receive the convertible foreign exchange on the deemed exports.The bench of Madhumita Roy (Judicial Member) and Waseem Ahmed (Accountant Member) has observed that there was no condition applicable for the Assessment Year 2015-16 to bring foreign exchange into India on account of the exports of sales.The respondent/assessee is...

Loss On Confiscation Of Smuggled Items By DRI Officials Cannot Be Claimed As ‘Business Loss’ Under Income Tax Act: Supreme Court

The Supreme Court bench comprising Justices M. R. Shah and M.M. Sundresh has set aside the Rajasthan High Court’s order of allowing the loss claimed by the assessee on account of confiscation of silver bars by the Customs department, as ‘business loss’ under Section 37(1) of the Income Tax Act, 1961. Justice M. R. Shah reckoned that the assessee was carrying on a legitimate business of dealing in silver and in an attempt to make larger profits, he indulged into smuggling of silver. ...

No Service Tax Leviable On Construction Of Residential Complexes Prior To 01.07.2010: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax could be levied on the construction of residential complexes prior to July 1, 2010, even when the service is rendered either as a service simpliciter or as a work contract.The bench of P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the period of dispute is from October 2007 to April 2010, and hence, no service tax could be levied on the...

CBDT Notifies Income Tax Exemption to National Institute of Design

The Central Board of Direct Taxes and Customs (CBDT) notified the National Institute of Design, Ahmedabad, of the income tax exemption.The government approved the National Institute of Design, Ahmedabad, under the category of university, college, or other institution for scientific research for the purposes of Section 35(1)(ii) of the Income-tax Act, 1961, read with Rules 5C and 5E of the Income-tax Rules, 1962.The notification shall apply with effect from the date of publication in the Official...

Income Tax Act- AO Can’t Make Additions to Completed Assessments In Absence Of Incriminating Materials: Supreme Court

The Supreme Court has ruled that no additions can be made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961 in the absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132 A, in respect of completed /unabated assessments. The bench of Justices M.R. Shah and Sudhanshu Dhulia remarked that block assessment under Section 153A of the Income Tax Act is linked with the search and requisition under ...

Reopening Not Permissible Merely On The Basis Of Change Of Opinion: Gujarat High Court Quashes Reassessment Against Axis Bank

The Gujarat High Court has quashed the reassessment against Axis Bank and held that reopening is not permissible merely on the basis of a change of opinion.The division bench of Justice Ashutosh Shastri and Justice J. C. Doshi has observed that the action of the department in reopening the assessment is not justified as it would be tantamount to a mere change of opinion, which is not permissible, as the conditions that have been retained under Section 147 are also not satisfied.The petitioner,...