Amount Equivalent To Capital Gains Utilised For Acquisition Of New House: ITAT Allows Capital Gain Exemption

The Delhi Bench of the Income Tax Appellate Tribunal has allowed the capital gain exemption under section 54 of the Income Tax Act on the grounds that the amount equivalent to the capital gains has been used for the acquisition of a new house.The two-member bench of Yogesh Kumar US (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has observed that the agreement for sale was signed on August 8, 2014, and the payments had been completed by October 8, 2014.The assessee/appellant...

GST Council Recommends Changes In GST Rate For Various Goods And Services

The 48th GST Council, presided over by Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs made various recommendations relating to changes in GST rates on the supply of goods and services.The council has exempted the husk of pulses, including chilka, and concentrates, including chuni, churi, and khanda. Early on, 5% GST was payable on the husks of pulses.Due to genuine concerns, the Council decided to regularise the interim period beginning on the date of the Circular's...

Supply of Tata Garbage Tipper Vehicle To Municipalities Attracts 28% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) has held that the supply of Tata garbage tipper vehicles to Municipalities shall attract 28% GST.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that garbage tipper vehicles can be used for the transportation of goods. The starting words of Entry 8704 are "Motor Vehicles for the Transport of Goods." Thus, the rate of tax applicable shall be 28%; as only refrigerated vehicles are taxable at 18%; and all trucks covered under...

48th GST Council Meet: GST Not Applicable On No Claim Bonus Offered By Insurance Companies

The 48th Meeting of the GST Council was held on 17th December 2022 through Video Conference, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The council recommended that no claim bonus by insurance companies will not attract GST."Circular to be issued to clarify that No Claim Bonus offered by the insurance companies to the insured is an admissible deduction for valuation of insurance services," the press release read.GST is levied only on...

Land Received In Lieu Of Business Loan Foregone, Is A Business Asset Not A Capital Asset: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the land received by the assessee in the normal course of its finance business, in lieu of a business loan foregone, would assume the character of a business asset and not a capital asset, irrespective of its treatment in the assessee's books of accounts. The bench of Mahavir Singh (Vice President) and Manoj Kumar Aggarwal (Accountant Member) held that since the assignment of debt in favour of another entity in...

18% GST Payable On Glaze Gels: AAR

The Maharashtra Authority of Advance Ruling (AAR) has held that 18% GST is payable on glaze gels.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that while sugar-baked confectionery is directly sold to ultimate end users for consumption, glaze gel is not consumed by end consumers, rather its product is used by cake manufacturers as a filling between sponge layers of cakes.The applicant manufactures glaze gels and markets them to bakeries all across India. The glaze gel is...

Transfer Of Monetary Proceeds By IVL India To ILV Sweden Attracts IGST Under RCM: AAR

The Maharashtra Authority of Advance Ruling (AAR) has ruled that the transfer of monetary proceeds by IVL India to the applicant IVL Sweden will be liable for payment of integrated goods and services tax under the reverse charge mechanism.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that other than the service provided by the applicant to the Municipal Corporation of Greater Mumbai (MCGM), there is a very definite service being provided by IVL Sweden, located outside...

Bombay High Court Allows Deduction On Issuance Of Completion Certificate

The Bombay High Court has allowed the income tax deduction under Section 80-IB on the grounds that a completion certificate was issued by the competent authority.The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki S.A. Menezes, while upholding the order of the Income Tax Appellate Tribunal (ITAT), observed that there was no allegation by the survey team during the earlier survey conducted in the year 2006 that the assessee was not raising the construction as per the approved...

Tax Cases Weekly Round-Up: 11 December to 17 December 2022

Supreme Court Income Tax Dept. Can't Initiate Reassessment Proceedings During The Pendency Of The Rectification Proceedings: Supreme Court Case Title: S.M. Overseas (P) Ltd. Versus CIT The Supreme Court has held that the income tax department cannot initiate the reassessment proceedings during the pendency of the rectification proceedings. The division bench of Justice M.R. Shah and Justice C.T. Ravikumar has observed that the Punjab and Haryana High Court has committed a ...

Small Tax Effect: Monetary Limit To Prefer An Appeal Before The Supreme Court Is Rs. 2 crores: Supreme Court

The Supreme Court disposed of the appeal on the ground of low tax effects. The division bench of Justice M.R. Shah and Justice Sudhanshu Dhulia observed that the monetary limit to file an appeal before the Supreme Court is Rs. 2 crores.The respective parties contended that the tax effect in both the appeals for the relevant assessment years (1995–96 and 1996–97) would be less than Rs. 2 crores, which is the monetary limit to file an appeal before the Supreme Court, as per Circular...

GST Council Meet Raises Threshold For Launching Prosecution To Rs 2 Crores

The 48th GST Council presided over by Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs recommended decriminalizing offenses under Section 132, raising the threshold for tax prosecution, and lowering the amount of compounding in GST.Except for the offense of issuance of invoices without a supply of goods or services or both, the Council has recommended raising the minimum tax amount for launching a GST prosecution from Rs. 1 crore to Rs. 2 crores, except for the...

AO Can't Pass Rectification Order to Disallow Set-off Of Loss By Invoking Section 79 of Income Tax Act, On Change In Assessee's Shareholding: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Section 154 of the Income Tax Act, 1961 can only be exercised by the Assessing Officer for rectification of mistake which is apparent on the face of record. The Bench of Pramod Kumar (Vice President) and Aby T. Varkey (Judicial Member) held that the issue whether Section 79 of the Income Tax Act was applicable in the case of the assessee where there was a change in its shareholding, was a debatable issue which involved...