Charger Sold Along With Mobile Phone Can’t Be Differently Taxed: Karnataka High Court

The Karnataka High Court has held that the charger, which is sold along with the mobile phone in one set, is taxable at the rate of 5%.The division bench of Justice P.S. Dinesh Kumar and Justice T.G. Shivashankare Gowda has observed that the main intention of a purchaser or seller while buying or selling a "mobile set" is to buy or sell the mobile phone and not the charger alone. The supply of chargers, headsets, and ejection pins is incidental to the sale. Therefore, the dominant intention test...

Insolvency and Bankruptcy Board of India Eligible For Income Tax Exemption On Grant-In-Aid, Fine, Fee, Interest Income: CBDT

The Central Board of Direct Taxes (CBDT) has notified that the Insolvency and Bankruptcy Board of India shall be eligible for the income tax exemption under clause (46) of section 10 of the Income-tax Act, 1961.The grants-in-aid received from the Central Government, the fees and fines received under the Insolvency and Bankruptcy Code, 2016, and interest income accrued by the Insolvency and Bankruptcy Board of India shall be eligible for the exemption.The income tax exemption shall be available...

Section 50C Cannot Be Applied On Compulsory Acquisition Of A Capital Asset: Calcutta High Court

The Calcutta High Court has held that in cases of compulsory acquisition of a capital asset (land or building, or both), the provisions of Section 50C of the Income Tax Act cannot be applied as the question of payment of stamp duty for effecting the transfer does not arise.The division bench of Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the property was acquired under the provisions of the National Highways Act 1956. The property vests by operation of the said...

Alternative Remedy Is Not Absolute Bar To Examine Conditions To Issue Reassessment Notice: Madhya Pradesh High Court

The Madhya Pradesh High Court stayed the reassessment proceedings and admitted them for the final hearing.The division bench of Justice S.A. Dharmadhikari and Justice Prakash Chandra Gupta has relied on the decision of the Supreme Court in the case of Red Chilli International Sales Vs. Income Tax Officer & Anr., in which it was held that writ petitions have been entertained to examine whether the conditions for the issuance of a notice under Section 148 of the Income Tax Act have been...

Tax Cases Monthly Round-Up: February 2023

Indirect Taxes Delhi High Court Budgetary Support Under GST Regime Can’t Be Denied To Eligible Unit: Delhi High Court Case Title: M/s Special Cables Pvt Ltd versus Central Board of Indirect Taxes and Customs & Ors. Citation: 2023 LiveLaw (Del) 120 The Delhi High Court has directed the revenue authorities to grant budgetary support to a manufacturing unit under the “Scheme of Budgetary Support under Goods and Services Tax (GST) Regime”, available to ‘eligible units’...

Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) has relied on the Supreme Court's decision in the case of Checkmate Services (P.) Ltd. and ruled that the non-obstante clause under Section 43B or anything contained in that provision would not absolve the...

Centralized Processing Centre Not Authorized To Carry Out Adjustment For Disallowance Of Section 80P Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Centralised Processing Centre (CPC) was not authorized to carry out such adjustments for disallowance of deduction under section 80P of the Income Tax Act.The two-member bench of Pavan Kumar Gadale (Judicial Member) and Om Prakash Kant (Accountant Member) observed that the assessment year 2007-08 occurred prior to the CPC being empowered to carry out adjustments, and thus making adjustments were beyond the CPC's...

Amounts Paid By Google India To Google US For Seconded Employees Does Not Come Within ‘FTS’ or ‘FIS’: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that amounts paid by Google India to Google US with reference to seconded employees do not come within the fees for technical services (FTS) or fees for included services (FIS) under the Income Tax Act or under the India-US Tax Treaty.The two-member bench of George George K. (Judicial Member) and Padmavathy S. (Accountant Member) has observed that the seconded employees were working solely under the control and supervision...

Income Tax Demand On OYO For 1,140 Cr: Delhi High Court Directs CIT To Give Personal Hearing

The Delhi High Court has directed the Commissioner of Income Tax (CIT) to accord a personal hearing to OYO for the stay on the income tax demand of Rs. 1,140 crores.The division bench of Justice Rajiv Shakdher and Justice Tara Vitasta Ganju has observed that the CIT has not dealt with its application, which was preferred before him, in respect of the order passed by the Assessing Officer (AO) under Section 220(6) of the Income Tax Act, 1961.The petitioner, OYO, has challenged the order denying...

Bombay High Court Quashes Income Tax Proceedings On The Ground That S. 148 Notice Was Served On Secondary Email Id Provided In PAN

The Bombay High Court has set aside the proceedings initiated by the revenue authorities against the assessee for non-compliance of the reassessment notice issued under Section 148 of the Income Tax Act, 1961, on the ground that the notice was served on the secondary email id registered with the PAN database instead of the registered primary email id or the updated email id mentioned by the assessee in its last Return of Income. While holding that the Assessing Officer had clearly...

GST Payable On Additional Surcharge Collected From Open Access Consumer Under Electricity Act: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the additional surcharge collected from open-access consumers as per Section 42 of the Electricity Act, 2003, is taxable under the GST Act.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that Chamundeshwari Electricity Supply Corporation Limited cannot be considered either a "governmental authority" or a "local authority."The applicant is engaged in the distribution of electricity and the sale of energy. It...

ITAT Deletes Addition On Cash Deposits During Demonetisation

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition of cash deposits during demonetization.The bench of R.S. Syal (Vice President) has observed that the assessee sold their ancestral agricultural land in 2013 for a sum of Rs. 38 lakhs along with his brother. The assessee’s share was Rs. 19 lakh. The assessee's share of Rs. 19 lakhs in cash was kept with his brother, who was looking after the agricultural operations previously, and both of them decided to purchase...