Interest Earned On FDs Kept As Security For PG Is Taxable As Business Income: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the interest income earned on fixed deposits kept as security for performance guarantees is taxable as business income and can be set off against project expenses.The single bench of Saktijit Dey (Judicial Member) has directed the Assessing Officer to refund the TDS amount to the assessees.The assesses/appellants are resident corporate entities and are wholly owned subsidiaries of National Commodities Management Services...

Addition/Disallowance Can't Be Made Merely On Assessee's Admission During Search: Delhi High Court

The Delhi High Court has held that the statement recorded during the course of the search, on a standalone basis, without any reference to material found during the search, would not empower the AO to make additions/disallowance merely on the assessee's admission."The Appellant-Revenue has not placed reliance on or even referred to any statement recorded under Section 132(4) of the Act, 1961. No statement has been produced before this Court. Therefore, in the facts of the present case, the issue...

Sec.194H Income Tax Act Attracted For 'Supplementary Commission' Earned By Travel Agents ; Airlines Liable To Deduct TDS : Supreme Court

The Supreme Court held that Section 194H of the Income Tax Act is attracted in the case of Supplementary Commission amounts earned by the travel agent and therefore Airlines are liable to deduct TDS in this regard.The bench comprising Justices Surya Kant and MM Sundresh upheld the Delhi High Court judgment and overruled the Bombay High Court judgment in CIT v. Qatar Airways [2009 SCC OnLine Bom 2179] that had held otherwise.Section 194HSection 194H of the IT Act was introduced by the Finance...

Subcontracting For A Service Is Not An "Intermediary" Service: Punjab and Haryana High Court orders Refund

The Punjab and Haryana High Court has quashed a demand by the GST Department against Genpact India and held that subcontracting for a service is not an "intermediary" service.The division bench of Justice Tejinder Singh Dhindsa and Justice Deepak Manchanda has noted that Genpact India provides the main service directly to the overseas clients of Genpact International (GI) but does not get any remuneration from such clients. It is GI that gets paid by its customers, to whom the services are being...

18% GST Payable On Manufacturing Of Alcohol For Human Consumption By Way Of Job Work: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that 18% GST is payable on the manufacturing of alcohol for human consumption by way of job work.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that alcoholic liquor is not considered a food. Services by way of job work in relation to the manufacture of alcoholic liquor for human consumption are not eligible for 5% GST.The petitioner/assessee is a manufacturer of Indian-made foreign liquor having its distillery at...

Interest Not Leviable For Belatedly Deducting TDS If There Is No Liability: Kerala High Court

The Kerala High Court has held that where there is no liability to deduct TDS, the mere fact that TDS was so deducted and paid to the Income Tax Department belatedly, cannot give rise to a claim for interest under Section 201(1A) of the Income Tax Act.The single bench of Justice Gopinath P. has observed that the delay in remitting the amounts deducted as TDS arose only on account of the fact that the officer in question was deputed for election duty for the period from January 2014 to May 2014...

ITAT Allows Deduction To SBI On Total Outstanding Advances At The End Of Each Month Considering The Opening Balances

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction to the State Bank of India (SBI) on the total outstanding advances at the end of each month, considering the opening balances.The three-member bench of Pramod Kumar (Vice President), Aby T. Varkey (Judicial Member), and Sandeep Singh Karhail (Judicial Member) has relied on the decisions of the Calcutta High Court in PCIT vs. Uttarbanga Kshetriya Gramin Bank and the Madras High Court in CIT vs. M/s City Union...

Open Purchase Orders Are Standing Offers, Movement of goods are mere stock transfers, No Sales Tax Payable: Karnataka High Court

The Karnataka High Court has held that open purchase orders are only standing offers that do not constitute a confirmed "agreement to sell" and that movements of goods are mere stock transfers.The division bench of Justice Dinesh Kumar and Justice M.G. Uma has observed that the open purchase orders do not constitute any contract. The Purchase Orders issued from time to time for the supply of goods constituted a contract between the parties. Thus, the sale effected pursuant to such Purchase...

Tax Cases Weekly Round-Up: 6 November to 12 November 2022

Delhi High CourtExpenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Ltd. Citation: 2022 LiveLaw (Del) 1048 The Delhi High Court has ruled that advertisement expenses, Software Developing Charges, and expenses towards brokerage and commission, incurred by a real estate developer, are in the nature of general ...

Importer Can Apply For Registration After 60th day And Within 5 Days Before Arrival Consignment: DGFT

The Directorate General Of Foreign Trade (DGFT) has notified that the importers can apply for registration after the 60th day and within 5 days before the expected date of arrival of the import consignment.The DGFT has amended Policy Condition No. 7(ii) of Chapter 27 of Schedule-I (Import Policy) of ITC (HS), 2022.As per the existing policy, the importer can apply for registration not earlier than the 60th day and not later than the 15th day before the expected date of arrival of the...

Time Limit To Refer Statement Of Case By CESTAT To High Court, Under Section 130A (4) Of The Customs Act, Is Directory: Bombay High Court

The Bombay High Court has ruled that the time limit within which the Customs Excise and Service Tax Appellate Tribunal (CESTAT) is required to refer the statement of the case to the High Court, as prescribed in Section 130A (4) of the Customs Act, 1962, is only directory and not imperative in nature. The Division Bench of Justices K.R. Shriram and A.S. Doctor held that the CESTAT is a judicial body, over whose actions the revenue authorities have no control. It added that if the time...

Delhi High Court Stays Reassessment Order Against IBIBO Group

The Delhi High Court has stayed the reassessment order against an online travel agent, IBIBO Group, and issued a notice to the income tax department."The Assessing Officer is permitted to pass the reassessment order, yet the same shall not be given effect to and shall be subject to further orders to be passed by this Court," the division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora ordered.The petitioner, the IBIBO group, challenged the order passed under Section 148A(d) of...