Transfer Of Going Concern By AAI To Adani Jaipur Airport Does Not Attract GST: Rajasthan AAR

The Rajasthan Authority of Advance Ruling (AAR) has ruled that GST is not applicable on transfers of going concern by the Airport Authority of India (AAI) to Adani Jaipur Airport.The bench of Umesh Kumar Garg and Mahesh Kumar Gowla has observed that the invoice raised by the applicant for reimbursement of the salary/staff cost on M/s. Adani Jaipur International Airport Limited is a consideration for a supply, which falls under the ambit of manpower service. 18% GST is applicable on salary or...

Supply Of Precast Manhole Using The Steel And Cement Attracts 18% GST: Rajasthan AAR

The Rajasthan Authority of Advance Ruling (AAR) has ruled that the supply of precast manholes using steel and cement attracts 18% GST.The bench of Umesh Kumar Garg and Mahesh Kumar Gowla has observed that precast manholes and rises are movable property; hence, the supply of precast manholes and rises is a supply of goods and not a supply of services on the basis of the findings.The applicant, M/s Natani Precast LLP, has been incorporated with the intention of manufacturing and supplying precast...

Without Corroborating Evidence, Addition Can’t Be Made On The Basis Of A Declaration Made U/s 132(4) Of The Income Tax Act: ITAT

The Guwahati Bench of the Income Tax Appellate Tribunal (ITAT) has held that without corroborating evidence, an addition ought not to be made on the basis of a declaration made under Section 132(4) of the Income Tax Act.The bench of Rajpal Yadav (Vice President) and Manish Borad (Accountant Member) has observed that apart from the disclosure statement, no other document is being referred to by the Assessing Officer. No doubt, the disclosure or admission made under Section 132(4) of the Act...

Claim Of Deduction Under Section 80P Is Conditional On Filing A Return Within The Due Date: Kerala High Court

The Kerala High Court has held that the pre-condition for claiming the deduction under Section 80P of the IT Act has now been made more stringent by reducing the time available to an assessee for making the claim.The bench of Justice A.K. Jayasankaran Nambiar and Justice Mohammed Nias C.P. has observed that the claim for deduction under Section 80P is conditional on filing a return within the due date prescribed under Section 139(1) of the Income Tax Act.The appellant/assessee is a Labour...

Tax Cases Weekly Round-Up: 16 April To 22 April, 2023

Supreme Court Transfer Pricing | High Courts Not Precluded From Scrutinising ITAT’s Determination Of Arm’s Length Price : Supreme Court Case Title: SAP Labs India Private Limited vs Income Tax Officer, Circle 6, Bangalore Citation : 2023 LiveLaw (SC) 328 The Supreme Court has ruled that the High Court is not precluded from considering the determination of the arm’s length price determined by the Income Tax Appellate Tribunal (ITAT), in exercise of its powers under...

Wooden Ice Cream Sticks And Spoons Exigible To 12% GST: AAR

The Karnataka Authority of Advance Ruling (AAR) ruled that 12% GST is exigible on wooden ice cream sticks and wooden ice cream spoons.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that heading 4419 covers tableware and kitchenware of wood, and specifically, 4419 90 covers tableware and kitchenware of other wood, i.e., other than bamboo wood. Further HSN explanatory notes provide that heading 4419 covers spoons and crumb scoops in addition to other articles. The...

Goa Value Added Tax (12th Amendment) Act, 2020 Defies The Doctrine Of Separation Of Powers: Bombay High Court

The Bombay High Court has held that the Goa Value Added Tax (12th Amendment) Act, 2020, is an impermissible judicial override defying the doctrine of separation of powers.The bench of Justice M. S. Sonak and Justice Bharat P. Deshpande has observed that by simply not issuing sanction orders or delaying the issue of sanctions indefinitely or unreasonably, the state cannot arbitrarily deprive the parties' interests by way of compensation. A deprivation would fall foul of Articles 14, 265, and...

Income Tax Assessment Can’t Be Reopened Without Any Foundation: Gujarat High Court

The Gujarat High Court has held that when the foundation was missing, there could not have been the erection of ground to seek reopening of assessment.The bench of Justice N.V. Anjaria and Justice Devan M. Desai has observed that neither foundational facts existed nor could any tangible material be available with the assessing officer to justify the exercise of power to reopen the assessment.The petitioner/assessee challenged the notice dated March 30, 2018, issued by the assessing officer...

Non-Resident Shareholders Can’t Take Benefit Of Lower Tax Rate Prescribed In DTAAs For Taxation Of Dividend Where DDT Is Applicable: ITAT

The Mumbai Special Bench of the Income Tax Appellate Tribunal (ITAT) has held that non-resident shareholders cannot take advantage of the lower tax rate prescribed in Double Tax Avoidance Agreements (DTAAs) for taxation of dividends where Dividend Distribution Tax (DDT) is applicable.The bench of G. S. Pannu (President), N.V. Vasudevan (Vice President), and Vikas Awasthy (Judicial Member) has observed that the DDT rate shall prevail on dividends paid by Indian companies to non-resident...

AO Cannot Make Ad-Hoc Disallowance Of Expenses For Want Of Supporting For Each Expense, Without Pointing Defect In Vouchers: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO cannot make an ad hoc disallowance of expenses for want of support for each expense, without pointing to defects in vouchers on a sample basis furnished by the assessee.The bench of Yogesh Kumar US (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the assessee has furnished copies of invoices and vouchers on a sample basis, and it is stated that the assessing officer did not find any defects...

Interest Equalisation Scheme: DGFT Notifies Amendments

The Directorate General of Foreign Trade (DGFT) has amended the Interest Equalisation Scheme in respect of the Unique Identification Number (UIN).As per Trade Notice no. 38/2021-22 dated 15.03.2022 the eligible Interest Equalisation beneficiaries w.e.f 01.04.2022 were required to submit an Acknowledgement consisting of a Unique Identification Number (UIN) to the concerned bank to avail of the interest subvention under the scheme.As per the amendment, all the exporters seeking benefits under the...

Constitutionality Of Taxing Intermediary Services Under GST: Bombay High Court Upholds Validity Of Section 13(8)(b) Of IGST Act

The Bombay High Court has upheld the constitutionality of taxing intermediary services under the IGST Act."The provisions of Section 13(8)(b) and Section 8(2) of the IGST Act are legal, valid, and constitutional, provided that the provisions of Section 13(8)(b) and Section 8(2) are confined in their operation to the provisions of the IGST Act only, and the same cannot be made applicable for the levy of tax on services under the CGST and MGST Acts," the bench of Justice G.S. Kulkarni observed.The...