University, Educational Institution, Hospital, Medical Institution To Keep And Maintain Books Of Account: CBDT

The Central Board of Direct Taxes (CBDT) has mandated that universities, educational institutions, hospitals, and medical institutions that enjoy tax exemption must keep and maintain books of account and other documents for a period of 10 years from the end of the relevant assessment year.The CBDT has notified the Income-tax (24th Amendment) Rules, 2022 with a view to tightening the rules regarding the tax exemption for universities, educational institutions, hospitals, and medical...

12% Sales Tax Applicable On Robinson Barley And Purity Barley: Orissa High Court

The Orissa High Court has held that a 12% sales tax is applicable on Robinson Barley and Purity Barley.The division bench of Chief Justice S. Muralidhar and Justice R.K. Pattanaik has observed that if a customer went to a shop and asked for barley, such a customer would not be supplied with Robinson Barley or Purity Barley. Conversely, if the customer was to ask for Robinson Barley or Purity Barley, he would not be supplied with plain barley. The distinct commercial product "Robinson...

CIC Directs CPIO To Provide Generic Details Of Gross Income Of The Husband For Claiming Fair Amount Of Maintenance

The Central Information Commission (CIC) has directed the Centre Public Information Officers (CPIO) to provide the "generic details of the net taxable income/gross income" of the husband to the wife free of cost within 15 days. The Information Commissioner, Saroj Punhani, has observed that the details or copies of income tax returns and other personal information of third parties need not be disclosed to the appellant. However, in litigation where the issue involved is the maintenance...

Job Worker Liable To Pay Excise Duty For Unloading Chemicals From Tankers, Repacking and Labelling In Small Drums: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the job worker has carried out all the activities which, as per the department, amount to manufacturing. The job worker is alone to pay the excise duty. The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that irrespective of the ownership of goods, whoever undertakes the manufacturing activity has to pay the duty. The appellant submitted that...

Expenditure In Carrying Out Foreign Travel Directly Relating To Securing Capital Investment In The Business Is Capital In Nature: ITAT

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the expense of carrying out foreign travel directly relating to securing capital investment in the assessee's business cannot be in the revenue nature. On the other hand, it is capitalist in nature. The two-member bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the assessee furnished only the supplementary agreement with the above party and did not furnish the ...

Customs Authorities Cannot Encash Bank Guarantee Before Expiry Of The Limitation Period For Filing An Appeal: Bombay High Court

The Bombay High Court has reiterated that Customs Authorities cannot encash the Bank Guarantee furnished by the assessee before the expiry of the statutory period available for filing an appeal. The Division Bench consisting of Chief Justice Dipankar Datta and Justice M. S. Sonak ruled that despite the assurances given to the Bombay High Court in the case of Legrand (India) Pvt. Ltd. versus Union of India (2007), the Customs Authorities had breached the law by adopting coercive...

Gain Or Loss Arising Out Of Change In Foreign Exchange Rate Can Be Treated As An Income Or Loss After Computation: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the gain or loss arising out of a change in the foreign exchange rate can be treated as an income or loss provided that it is computed in accordance with the Income Computation and Disclosure Standards (ICDS) notified under section 145(2) of the Income Tax Act, 1961. The two-member bench of George George K. (Judicial Member) and Padmavathi S. (Accountant Member) observed that the amount claimed is a net loss...

Illegal Demand Of Income Tax Mechanically- Allahabad High Court Imposes Cost Of 50 Lakhs On Income Tax Authorities

The Allahabad High Court has directed that the Union of India or other authorities under the Income Tax Act, 1961 shall not interfere with the quasi-judicial functions and discharge of statutory duties by the Assessing Officers unless permitted by the Income Tax Act. Further, the High Court directed the Union of India to put in place a mechanism to ensure that the information fed on data-base/ portal of the revenue department is verified in reality, and not as an empty formality, ...

Refractories Meant For Re-lining Of Furnaces Is Covered Under "Capital Goods": CESTAT Allows Customs Duty Exemption Under EPCG Scheme

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty exemption on refractories meant for re-lining of furnaces.The two-member bench of P.K. Chaudhary (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that refractories meant for re-lining of furnaces, i.e., for replacement, are covered by the "means" part of the definition of "capital goods". It is in any way restricted or controlled by the use of the...

Insurance Company Not To Deduct TDS On Interest On Compensation Awarded To The Claimant Till 01.06.2015 : Punjab & Haryana High Court

The Punjab and Haryana High Court has ruled that the Insurance Company is not required to deduct TDS on the interest on the compensation awarded to the claimant uptil 01.06.2015, even if the interest amount exceeds Rs. 50,000 per claimant in the financial year. The Single Bench of Justice Arvind Singh Sangwan reiterated that 194A of Income Tax Act, 1961 is not a charging provision and hence, the provisions of Section 194A that deal with tax deducted at source, do not make the interest...

Madras High Court Stays IT Dept's Order Imposing ₹1.5 Crore Penalty On Actor Vijay For Undisclosed Income

The Madras High Court on Tuesday granted an interim stay on the proceedings initiated by the Income Tax Department against Actor Vijay for "admitted" undisclosed income of Rs. 15 crore in the financial year 2015-16. The bench of Justice Anita Sumanth passed the interim order on an application filed by the actor and directed the Department to file its counter by September 16.The penalty was imposed based on raids conducted at the actor's residence in September 2015. Vijay alleged that the...

Tax Cases Weekly Round-Up: 7 August To 13 August, 2022

Delhi High Court Definition Of Relative Under Senior Citizens Act Can't Be Treated At Par With Income Tax Act, 1961: Delhi High Court Case Title: Miss Indira Uppal Versus UOI Citation: 2022 LiveLaw (Del) 764 The Delhi High Court has held that the petitioner's real intent was to ensure that gift tax is not levied on donee. The petition does not promote the maintenance and welfare of senior citizens. The division bench of Justice Manmohan and Justice Manmeet Preetam Singh...