Loss On Trading In Shares Done By Directors In Individual Capacity, Cannot Be Attributed To Company: ITAT

The Hyderabad Bench of theIncome Tax Appellate Tribunal (ITAT) has ruled that trading losses sustained by the directors of the assessee company in their individual accounts, cannot be allowed as deduction in the hands of the assessee company. The Bench, consisting of members Laliet Kumar (Judicial Member) and Rama Kanta Panda (Accountant Member), held that as per the Companies Act, 2013 and the Income Tax Act, 1961, the company and its directors are two distinct juristic entities, and...

Delhi High Court Directs Income Tax Dept. To Decide The Rectification Applications Filed By Jones LNG Lasalle

The Delhi High Court directed the income tax department to decide the rectification applications filed by Jones LNG Lasalle Property Consultants.The division bench of Justice Manmohan and Justice Preetam Singh Arora has directed that if any refund is due and payable to the petitioner, it shall be refunded within eight weeks. The petitioner/assessee is in the business of real estate consultancy and advisory services; brokerage; project management; design and construction of office...

"Pandal and Shamiana" Services Can't Be Charged With Service Tax Before 01.06.2007: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has observed that the "Pandal and Shamiana" services could not have been charged with service tax before 01.06.2007.The two-member bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the appellant's contract involved provisions of services as well as supply/deemed supply of goods and they can only be classified under the head "works contract services". The...

Extra Duty Deposit Should Be Refunded Without Filing Refund Claim: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the Extra Duty Deposit (EDD) should be refunded without filing a refund claim.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that if and when the refund claim of EDD is filed by the appellant, it cannot be barred by limitation. The appellant was engaged in the import of "Silicon Electrical Steel of Cold Rolled Full Hard (unannealed)" from...

Tax Cases Monthly Round-Up: July 2022

Indirect TaxSupreme Court 'Anardana' Be Classified Under Heading 1209 Of Tariff Entries Under Customs Tariff Act, 1975 & Attract 5% Custom Duty Till Revenue Takes Policy Decision Regarding The Same: Supreme Court Case Title: Commissioner of Customs And Central Excise, Amritsar (Punjab) v. M/s. D.L. Steels Etc. Civil Appeal Nos. 2360-2376 of 2009 The Supreme Court held that 'anardana' or dried pomegranate seeds would fall under Heading 1209 of the Tariff entries issued under the...

Land Transferred After Cut-Off Date, Applicant Not Entitled To Trade Tax Exemption Under U.P. Trade Tax Act: Allahabad High Court

The Allahabad High Court has ruled that the conditions enumerated in the Exemption Notification No. KA-NI-2-3867, dated 22.12.2001, for availing exemption from Trade Tax under Section 4-A of the U.P. Trade Tax Act, 1948, are mandatory in nature and have to be strictly complied with. The Single Bench of Justice Alok Mathur held that since the land was not transferred to the applicant before the cut-off date as prescribed under the said Exemption Notification, the applicant could not be...

Tax Cases Weekly Round-Up: 24 July To 30 July, 2022

Supreme Court Supreme Court Allows 2-Months Extra Window For Availing Transitional Credit; Directs GSTN To Open Portal For TRAN-1/TRAN-2 Forms Case Title : Union of India vs. M/s Filco Trade Centre Pvt. Ltd. and Anr. Citation : 2022 LiveLaw (SC) 628 In a relief to several assessees who missed the statutory deadline, the Supreme Court has directed the Goods and Services Tax Network (GSTN) to allow a 2-month additional window from September 1, 2022 to October 31, 2022 for...

Capital Gain Exemption Can Be Availed Only When The New Asset Is Purchased In The Name Of The Assessee: ITAT

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has held that for availing the benefit of deduction under section 54F, the new asset shall be purchased in the name of the assessee.The two-member bench of S.S.Godara (Judicial Member) and Dipak P. Ripote (Accountant Member) has observed that section 54F does not say that the assessee shall invest in the new house, but it says the assessee shall purchase a new house. The assessee claimed that the amount for the flat was invested by...

Dept. To Follow Procedure Set Out In Circular On The Issues Of Mismatch: Madras High Court Quashes VAT Assessment

The Madras High Court bench of Justice Anitha Sumnath has quashed the VAT assessment and directed the department to follow the procedure set out in the circular regarding the issue of mismatch. The petitioner has challenged the assessment order passed under the provisions of the Tamil Nadu Value Added Tax Act, 2006 for the period 2013–14. The substantial addition to turnover was on the ground of a mismatch of particulars between the details contained in the returns filed by the...

Supply Of Food And Drinks In Trains Or At Platforms Attracts 5% GST: AAAR

The Delhi Appellate Authority of Advance Ruling (AAAR) has ruled that the GST rate on the supply of food and drinks, whether in trains or at platforms (static units), will attract 5% GST without an Input Tax Credit (ITC). The two-member bench of Mallika Arya and Ankur Garg ruled that the supply of newspapers to pessangers is exempt from GST. The appellant has entered into an agreement with IRCTC/Indian Railways for the supply of food and beverages (packed/MRP/cooked) to the...

DGFT Relaxes Provisions Of Submission Of "Bill of Export" To SEZ Units In Case Of EPCG Authorization

The Director General of Foreign Trade (DGFT)has issued a circular relaxing the provision of submission of a "Bill of Export" as an evidence of export obligation discharge for supplies made to the Special Economic Zone (SEZ) units in the case of the Export Promotion Capital Goods (EPCG) Authorization.The Foreign Trade Policy requires the submission of a "Bill of Export" for supplies provided to SEZs.The obligation to submit a Bill of Export for supplies delivered to SEZs under Advance ...

Karnataka High Court Directs Income Tax Department To Issue A 'Nil Tax Deduction At Source' Certificate To Flipkart For Reimbursements Made To Walmart

The Karnataka High Courthas directed the Income Tax Department to issue a 'Nil Tax Deduction at Source' Certificate to Flipkart under Section 195(2) of the Income Tax Act, 1961, with respect to the reimbursements made by it to Walmart Inc. Walmart had seconded employees to Flipkart in terms of a Master Service Agreement. Holding that Flipkart was the employer of the said seconded employees, the Court ruled that the reimbursements made by Flipkart to Walmart, towards the salaries paid by...