Unmarried Daughter’s Jewllery And Mother’s Jewellery Can Be Kept In Family Home: ITAT Deletes Addition

The Allahabad Income Tax Appellate Tribunal (ITAT) has deleted the addition as the jewellery belonging to unmarried daughters will be kept along with the assessee’s jewellery in a family home where they are living together.The two-member bench of Vijay Pal Rao (Judicial Member) and Ramit Kochar (Accountant Member) has observed that the assessee has discharged her primary burden by explaining the jewellery found during search and explaining in a statement that 504 grams belonged to her mother,...

Credit For TCS Available To Assessee In Whose Hand Income Is Assessed To Tax: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has reiterated that credit for Tax Collected at Source (TCS) should be given to the assessee who is finally and lawfully assessed to tax in respect of the income on which TCS has been collected, irrespective of the person in whose name the TCS certificate has been issued. Referring to the decision of the Jaipur Bench of ITAT in Jai Ambey Wines vs. ACIT (2017), the bench of N.V. Vasudevan (Vice President) noted that what is...

CBIC Allows Transhipment Of Bangladesh Export Cargo To Third Countries Through Delhi Air Cargo

The Central Board of Indirect Taxes and Customs (CBIC) has allowed the transshipment of Bangladesh export cargo to third countries through Delhi Air Cargo.Following representations from interested parties, the Board decided to amend Circular 29/2020-Customs, dated June 22, 2020, to allow the transshipment of Bangladesh export cargo to third countries via Delhi Air Cargo.“Transhipment of goods by road from LCS Petrapole to Air Cargo Complex, Delhi is also allowed with effect from February 15,...

Works Contract Services Of Construction Of Railway Under Bridge Exigible To 18% GST: Karnataka AAR

The Karnataka Authority of Advance Ruling (AAR) has ruled that Indian Railways' contract services for the construction of the railway under the bridge are subject to 18% GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that contract services for the construction of tunnels executed for Indian Railways by the applicant is exigible to GST at 18% if the applicant is providing the services either as the main contractor or as a subcontractor to the main contractor.The...

Practice Of Not Responding To Request Of Adjournment, To Take Matter Up At Anytime, When AO Deems Fit Is Not Endorsable: Gujarat High Court

The Gujarat High Court has held that the practice of not responding to the request for adjournment and thereafter taking the matter up at any time when the Assessing Officer deems it appropriate was not endorsable.The division bench of Justices Sonia Gokani and Sandeep N. Bhat ruled that the order of 148A(d) and issuance of notice under Section 148 of the Income Tax Act merited review. Both need to be quashed. The matter goes back to the stage of considering the reply filed on 25.3.2022.The...

Permit Issued By Forest Dept. For Coal-Transit Taxable As "Public-Administrative-Services": AAAR

The Telangana Appellate Authority of Advance Ruling (AAAR) has ruled that the permit issued by the forest department for coal transit is taxable as public administrative services.The two-member bench of B.V. Siva Naga Kumari and Neetu Prasad had observed that the supply of permits by the forest department is taxable at the rate of 9% SGST and CGST each under SAC code 9991 (public administration and other services provided to the community as a whole; compulsory social security services) falling...

Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court

The Delhi High Court has quashed the reassessment and held that the department cannot go behind the Tax Residency Certificate (TRC) issued by the other tax jurisdiction.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the reason given for reopening the assessment, namely, to verify the nature and genuineness of the transactions of the assessee in the assessment year, was untenable in law as the return of income had been filed by the assessee within...

Orissa High Court Allows Deduction To The Co-operative Society Involved In The Business Of Banking

The Orissa High Court has granted the deduction to the Co-operative Society engaged in the banking business.The division bench of Chief Justice Dr. S. Muralidhar and Justice M. S. Raman has observed that the tribunal was justified in making further classification while interpreting Section 80P(4) of the Income Tax Act by treating it to be different from the primary agriculture rural development bank/co-operative societies.The ITAT upheld the CIT appeal's decision, which barred deductions and...

Tax Cases Weekly Round-Up: 29 January To 4 February 2023

Supreme Court S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment Case Title : PR. COMMISSIONER OF INCOME TAX CENTRAL v. ABHISAR BUILDWELL P. LTD The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party...

Budgetary Support Under GST Regime Can’t Be Denied To An Eligible Unit: Delhi High Court

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’ located in specified States. The Court took note that the petitioner was eligible for exemption from Central Excise Duty prior to 01.07.2017, i.e., before the introduction of the GST regime in India, and thus, in terms of the Scheme, it was entitled to avail budgetary...

Deputy Commissioner Not Empowered To Reassess After The Goods Were Cleared For Home Consumption: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Deputy Commissioner had the power to reassess the goods under Section 17(5) of the Customs Act, 1962, after the goods had been cleared for home consumption.The two-member bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the customs EDI system does not permit re-assessment of the bills of entry once an order permitting clearance of goods for home...

5% GST Payable On Pre-Packaged And Labelled Jaggery: Karnataka AAR

The Karnataka Authority of Advance Ruling (AAR) has held 5% GST on pre-packaged and labeled jaggery.The two-judge bench of M.P. Ravi Prasad and Kiran Reddy T. found that all types of jaggery, pre-packaged and labeled, are covered by S. No. 91A of Notification No. 1/2017 Central Tax (Rate) dated June 28, 2017.The applicant is a partnership firm and is engaged in the sale of jaggery.The applicant stated that jaggery is exempt from GST as per SI No. 94 of Notification No. 2/2017-Central Tax (Rate),...