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...

ITAT Quashes Order Holding Air India An Assesssee In Default For Shortfall In Deduction Of TDS On Payments Made To Its Subsidiary

The Mumbai Bench of ITAT has ruled that Air India must be given the benefit of the Proviso to Section 201 (1) of the Income Tax Act, 1961 and hence, it cannot be considered as an assessee in default for shortfall in deduction of TDS on the payments made by it to its subsidiary - Air India Engineering Services Ltd. The Bench, consisting of Kavitha Rajagopal (Judicial Member) and Baskaran B.R. (Accountant Member), remitted the matter back to the Assessing Officer for examining the claim...

TPO Not Justified In Treating The Value Of International Transaction Of "Payment of Corporate IT Support Services" To Be Nil: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the TPO was not justified in treating the value of international transactions "Payment of Corporate IT Support Services" as NIL.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member) has observed that no search was conducted to find out the independent entity in a comparable transaction and the arm's length price of the international transaction was treated to be...

No Service Tax On Reimbursement Of Expenses From Customers On Account Of Water, Electricity And Diesel Expenses Incurred: CESTAT

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not applicable on reimbursement of expenses from its customers on account of water, electricity, and diesel expenses incurred for the provision of services.The two-member bench of P.K. Chaudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that cenvat credit can be availed on work contract services and other services for the construction of ...

Loan Given To Shareholder For Consideration Beneficial To The Company Is Not A Deemed Dividend: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that if a loan or advance is given to a shareholder as a consequence of any consideration which is beneficial to the company, in such a case, the advance or loan cannot be said to be a deemed dividend.The two-member bench of Astha Chandra (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that a gratuitous loan or advance given by a company to the classes of shareholders would come within the purview...

Seafarer's Recruitment Service Provider Is Not An intermediary: CESTAT Allows CENVAT Credit Refund

The Mumbai bench of the Customs, Excise and Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) has held that a seafarer's recruitment service provider, who processes the entire selection, medical test, insurance, transportation, training, etc. to the overseas client and receives convertible foreign exchange, is not an intermediary. The appellant/assessee is engaged in providing ship management services involving crew management to its foreign associated...

ITAT Holds Revisionary Order Passed Without Mentioning DIN As Invalid

The Kolkata Bench of the ITAT has quashed the revisionary order passed by the Income Tax Authority without quoting the Document Identification No. (DIN) in the said order, as required by the CBDT Circular No.19/2019, dated 14.08.2019. The Bench, consisting of Mr. Sanjay Garg (Judicial Member) and Mr. Girish Agrawal (Accountant Member), held that since the order passed by the Income Tax Authority failed to mention the DIN in its body, therefore, the said order was "invalid and deemed to...

Reopening Assessment Without Furnishing Information Violates Principles Of Natural Justice: Calcutta High Court

The Calcutta High Court bench of Justice T.S. Shivagnanam and Justice Bivas Pattanayak has held that failure to furnish information based on which assessment was reopened is a violation of principles of natural justice.The appellant/assessee has challenged the assessment order passed under the provisions of the Income Tax Act 1961 on the ground that it has been passed in violation of the principles of natural justice. The Assessing Officer issued a notice under Section 148A (b) stating...