No GST Payable On Reimbursement Of Stipend Paid To Trainees: AAR

The Maharashtra Authority of Advance ruling (AAR) has ruled that GST is not payable on the reimbursement of stipend paid to trainees by industry partners.This Applicant, M/s Patle Eduskills Foundation is in the business of Human Resource & Skill Development and is a facilitator under the National Employability Enhancement Mission (NEEM Scheme) of the Government of India. The primary objective of the NEEM Scheme, notified through the All India Council of Technical Education (AICTE),...

Appeal Filed By A Struck Off Company Against The Revenue Department Is Maintainable: ITAT Delhi

The Delhi Bench of ITAT has ruled that an appeal filed by a Company against the order passed by the revenue department does not become infructuous if, thereafter, the Company has been struck off from the Register of Companies. The Bench, consisting of Yogesh Kumar U.S. (Judicial Member) and B. R. R. Kumar (Accountant Member), held that a Certificate of Incorporation issued to a Company cannot be treated as cancelled for the purpose of realizing the amount due to the Company and for the...

Royalty Income Should Be Excluded From Business Profits For Calculating Deductions U/S 80HHC Of Income Tax Act: Madras High Court

The Madras High Court recently upheld the decision of the Income Tax Appellate Tribunal directing the assessing officer to exclude the royalty income from the business profits for the purpose of calculation of deductions under Section 80HHC of the Income Tax Act. Justice R Mahadevan and Justice Sathya Narayana Prasad observed that the appellant could not produce concrete evidence to assert that the royalty income received from a subsidiary company was related to export business. Thus,...

Non-Service Of Notice On Assessee: ITAT Quashes Reassessment Order

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the reassessment order on the grounds that the notice was not served on the assessee. The bench of Challa Nagendra Prasad (Judicial Member) found that the department failed to prove proper service of the reassessment notice on the assessee. The assessee/appellant challenged the order of the CIT (Appeals) on the ground of non-service of a notice issued under Section 148 of the Income Tax Act, 1961. The assessee...

Order Of ITAT Is Based On Evidence, Findings Based On Facts, Madras High Court Dismisses Tax Appeal

The Madras High Court recently dismissed a tax appeal observing that there were no substantial question of law arisen for consideration. The bench of Justice R Mahadevan and Justice Sathya Narayana Prasad were of the opinion that the order passed by the Commissioner of Income Tax (Appeals) which was confirmed by the Income Tax Appellate Tribunal was based on the evidence adduced before the same. "Such well-considered findings of the appellate authorities do not warrant any interference at...

ITAT Deletes Additions As Assessee Proved Genuineness Of Purchases By Documentary Evidence

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the additions on the grounds that the assessee proved the genuineness of the purchases through documentary evidence.The two-member bench of Yogesh Kumar US (Judicial Member) and Pradeep Kumar Khedia (Accountant Member) has excluded the statement of the witness of the department as no opportunity of cross-examination was accorded to the assessee. The appellant/assessee is in the business of manufacturing and...

Services Rendered Abroad Amounts to Export Of Services, No GST Applicable: Bombay High Court

The Bombay High Court has held that GST does not apply to the services rendered abroad as they amount to the export of services. The division bench of Justice S.V. Gangapurwala and Justice M.G. Sewlikar has allowed the GST refund to the petitioner/assessee as the department has failed to establish that the incidence of tax was passed on to the client amounted to unjust enrichment. The petitioner/assessee is in the business of providing production services to "A Suitable Company Ltd."...

Depreciation To Be Carried Forward For Set Off In Succeeding Assessment Years: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) headed by G.S. Pannu (President) and C.N. Prasad (Judicial Member) has ruled that in case the depreciation exceeds the business income, then the Assessing Officer should allow the depreciation to be carried forward for set off in succeeding assessment years.The respondent/assessee for the AY 2016-17 e-filed the return of income, declaring nil income after adjusting for brought forward losses of Rs.7,37,804. In the course of...

CENVAT Credit Cannot Be Claimed On Expenses Incurred On CSR: Delhi CESTAT

The Delhi Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that expenses incurred by a person on activities related to its Corporate Social Responsibility (CSR) cannot be termed as input services and thus, CENVAT Credit cannot be claimed on it. The Bench, consisting of members Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member), ruled that the fact that the CSR is a legal responsibility does not make it an output service. The appellant...

Recovery Proceeding Deemed To Be Stayed If Appellant Pays 10% Of Disputed Tax Amount During Pendency Of Appeal: Jharkhand High Court

The Jharkhand High Court bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has held that upon deposit of 10% of the disputed tax amount during the pendency of appeals, recovery of any remaining balance is deemed to have been stayed in view of Section 107 Sub-section (6) and (7) of the CGST Act, 2017.The notice under Section 79 of the CGST Act, 2017 was issued by the respondent/department for alleged recovery of government dues amounting to Rs. 4,28,86,464 upon the petitioner's...

DGFT Notifies Additional Provisions For Allocation Of TRQ For Crude Soya Bean Oil And Crude Sunflower Oil

The Directorate General of Foreign Trade (DGFT) has notified the additional provisions for the allocation of Tariff Rate Quota (TRQ) for 20 lakh MT of crude soya bean oil and 20 lakh MT of crude sunflower oil for the financial years 2022–23 and 2023–24.The DGFT informed applicants that for each processing unit, they must present a self-certified copy of documentation proof given by Central/State Authorities stating its processing capability. The certificate must be dated before May 24,...

Definition Of 'Resident' Under Income Tax Act Designed For Including Persons In Tax Net, Not For Determining Citizenship: Rajasthan High Court

The Rajasthan High Court has observed that the condition imposed by the Income Tax Act that a person residing in India for a continuous period of 180 days would be considered to be a resident of India, is for the purpose of bringing such person within the purview of the Income Tax Act. The court added that the definition is simply designed for the purpose of including the persons who are in India for a period of 180 days to bring in the tax net and not for the purpose of determining the...