Payment Received From Foreign Company On Account Of Business Support Services Not Taxable As FTS: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received from foreign companies on account of business support services are held to be taxable as fees for technical services (FTS).The two-member bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that Article 12(5) of the India-Netherlands DTAA reveals that it does not include managerial services within FTS. Therefore, the payment received by the assessee cannot be...

Lease Rent Paid For Acquiring Mining Rights Is Capital In Nature, Income Tax Deduction Not Allowable: ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has observed that lease rent paid for acquiring mining rights is capital in nature and income tax deductions cannot be allowed.The two-member bench of Partha Sarthi Choudhary (Judicial Member) and Inturi Rama Rao (Accountant Member) disallowed the amount of Rs. 24,33,339 towards amortization of leasehold premium paid in respect of land acquired from Gujarat Power Corporation Limited, Gujarat, for a solar project on a leasehold basis.The...

CBDT Notifies Income Tax Exemption To Karnataka State Building and Other Construction Workers Welfare Board

The Central Board of Direct Taxes (CBDT) has notified the income tax exemption under section 10(46) of the Income Tax Act to the Karnataka State Building and Other Construction Workers Welfare Board.The state government framed rules in the interest of the construction laborers in 2007 in order to take up many welfare and development schemes. Keeping in mind the interest of the construction laborers, the National Construction Labour Welfare Act of 1996 has been brought into force. In tune with...

Transporting Goods In A Vehicle Without Proper E-Way Bill Is A breach, Reasons Irrelevant: Calcutta High Court Upholds Penalty

The Calcutta High Court upheld the penalty and stated that there was no requirement in law to verify the reason for transporting goods in a vehicle without a proper e-way bill.The bench of Justice Amrita Sinha has observed that the vehicle in which the goods stood transferred for being transported allegedly to the pre-recorded destination, did not have an e-way bill. The provision of Section 129 will be attracted.The petitioner/assessee challenged the order passed by the adjudicating authority,...

Bombay High Court Directs Release Of Seized Gutka And Pan-Masala On Furnishing The Bank Guarantee Of Rs. 27.84 Lakhs

The Bombay High Court has directed to release the Gutka and Pan-Masala, which were banned in the state of Maharashtra, after furnishing the bank guarantee of Rs. 27,84,000The single bench of Justice Kishore C. Sant has modified the order passed by the Revisional Court by adding an additional condition that the respondent shall furnish the bank guarantee in the sum of Rs. 27,84,000 instead of furnishing an indemnity bond of Rs. 61,44,000The respondent was found transporting gutka (or pan masala),...

Supply Of Ice Cream From The Outlets Cannot Be Considered As Supply Of “Restaurant Services”: AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that the supply of ice cream from the outlets cannot be considered as the supply of restaurant services.The two-member bench of Amit Kumar Mishra and Milind Kawatkar has observed that the readily available ice creams that are not prepared in the outlets and sold over the counter are supplies of goods. However, an ice cream that is ordered and supplied along with cooked or prepared food through the outlets would assume the character of...

Vouchers Are Neither Goods Nor Services, No ITC Available To Myntra: AAAR

The Karnataka Appellate Authority of Advance Ruling (AAAR) has held that input tax credit (ITC) is not available on the vouchers and subscription packages procured by Myntra from third-party vendors.The two-member bench of Ranjana Jha and Shikha C. has relied on the decision of the Karnataka High Court in the case of M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors., in which it was held that vouchers do not fall under the category of goods and services, and therefore, the...

Cenvat Credit Allowable On The Service Of Repair & Maintenance During Warranty Period: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on the service of repair and maintenance during the warranty period.The two-member bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Judicial Member) observed that Rule 2(l) of the Cenvat Credit Rules, 2004, particularly in the inclusion clause, covers "activities relating to business." Therefore, the said service during the warranty period also clearly falls...

Service Tax Not Payable On Services Of Advertisement In Print-Media: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not applicable to the service of advertisement in print media.The two-member bench of Justice Dilip Gupta (President) and Hemambika M. Priya (Technical Member) has observed that the services of advertisement in respect of print media are exempted in terms of the negative list of services under section 66D(g) of the Finance Act.The appellant/assessee is a manufacturer-exporter of...

Assesses Failed To File Affidavit Proving Repayment Of Loans: Orissa High Court Sustains Addition On “Unsecured Loan”

The Orissa High Court has sustained the addition of unsecured loans under Section 68 of the Income Tax Act, 1961.The division bench of Chief Justice S. Muralidhar and Justice M.S. Raman has observed that the direction issued by the ITAT in the first round was to the effect that the AO should verify whether the assessee had repaid the amount "by calling all the creditors". Therefore, it is the AO who should have issued a summons to them to appear. Even assuming that the AO did not do so, the fact...

TDS Not Deposited By Employer, Can’t Be Adjusted Against Future Refund Due To Assessee: Delhi High Court

The Delhi High Court has ruled that the revenue department cannot adjust the withheld tax (TDS) which has not been deposited by the deductor (employer) in the Central Government Account, against the refund due and payable to the deductee/assessee. The bench of Justices Rajiv Shakdher and Tara Vitasta Ganju held that adjustment of demand against future refund amounts to an indirect recovery of tax, which is barred under Section 205 of the Income Tax Act, 1961. Section 205 of Income...

CESTAT Allows Interest On Refunded Amount Deposited During Investigation

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed interest on the amount refunded, which was deposited during the investigation.The bench of Anil Choudhary (Judicial Member) has observed that interest on refund of amounts deposited during an investigation or deposited during the pendency of an appeal is allowable under Section 35EE of the Act and has to be paid from the date of deposit till the date of refund.The appellant has raised the issue of the...