Export Entitlements And Duty Drawback Of Promotion Scheme Is An Income Assessable Under "Profits Or Gains From Business Or Profession": ITAT

The Visakhapatnam Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the export entitlements and the duty drawback of the promotion scheme are an income assessable under the head "profits or gains from business or profession" as per clauses (iiib) and (iiid) of section 28 of the Income Tax Act, 1961. The two-member bench of Duvvuru Rl Reddy (Judicial Member) and S. Balakrishnan (Accountant Member) concluded that the authorities below failed to appreciate the legislative...

GST Not Payable On Monthly Collection Not Exceeding Rs.7500 Per Member Of RWA: AAR

The Telangana Authority of Advance Ruling (AAR) consisting of B. Raghu Kiran and S.V. Kasi Visweswara Rao has ruled that GST is not payable on monthly collection not exceeding Rs. 7500 per member of the Resident Welfare Association (RWA). The applicant, M/s. Jayabheri Orange County Owners Association, is a Resident Welfare Association (RWA) collecting monthly maintenance charges, a certain annual fee by name sinking fund, and charges for electricity used in common areas. The...

GST Payable On Medical Health Insurance Premium For Employees: AAR

The Telangana Authority of Advance Ruling (AAR) consisting of B. Raghu Kiran and S.V. Kasi Visweswara Rao has observed that GST is payable on medical health insurance premiums for employees. The applicant, M/s. Hyderabad Metropolitan Water Supply and Sewerage Board, has paid medical insurance premiums to provide health insurance to the employees, pensioners and their family members. The vehicle insurance policy was taken to provide insurance to the vehicles owned by the Board. The...

Delay In Filing Audit Reports Due To The Hospitalisation Of Accountant: ITAT Deletes Penalty

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the penalty for delay in filing audit reports due to the hospitalisation of the assessee's accountant. The two-member bench, led by R. S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member), concluded that the assessee had explained the reasonable cause through documentary evidence.The Tribunal set aside the order of the CIT (A) and directed the AO to delete the penalty from the hands of the...

Tuition Fee Is Taxable Only When A Corresponding Service Is Rendered By The Educational Institution: Hyderabad ITAT

The Hyderabad Bench of ITAT has ruled that the tuition fee collected in advance is not taxable in the year of receipt and that the tuition fee is taxable only when a corresponding service is rendered by the educational institution. The Bench, consisting of K. Narasimha Chary (Judicial Member) and Rama Kanta Panda (Accountant Member), held that examination fee collected from students on behalf of the foreign universities is not taxable as 'Fees for Technical Services'. The ITAT ruled...

Delhi High Court Quashes Reassessment Order Issued Without Considering The Reply Filed By The Assessee

The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has quashed the reassessment order issued without considering the reply filed by the assessee. The petitioner/assessee stated that the reassessment proceedings initiated by the department were void ab initio. The proceedings were initiated in the name of "Damian Estate Developers Private Limited", which was a non-existent entity as it had amalgamated with the petitioner company with effect from...

Penalty Can't Be Imposed Without Giving The Opportunity Of Hearing To The Taxpayer: Andhra Pradesh High Court

The Andhra Pradesh High Court has ruled that the GST penalty cannot be imposed without giving the taxpayer an opportunity of hearing.The division bench of Justice C. Praveen Kumar and Justice V. Sujatha has observed that any rectification under Section 161 of the CGST Act, which adversely affects any person, is possible only after following the principles of natural justice. The petitioner/assessee is in the business of manufacturing grain-based extra neutral alcohol and also bottling ...

Show Cause Notice Mailed To The Wrong Email Address: Delhi High Court Remands The Matter To The Assessing Officer For A Fresh Decision

The Delhi High Court, consisting of Justice Manmohan and Justice Manmeet Preetam Singh Arora, has remanded the matter to the assessing officer for a fresh decision as the department mailed the show cause notice to the wrong email address.The petitioner/assessee submitted that the department alleged that the petitioner's claim for IGST Refund was incorrect and, hence, the amount "is required to be disallowed." An IGST refund, being a balance sheet item, is not a claim made in the profit and...

Tax Cases Weekly Round-Up: 29 May To 4 June, 2022

Karnataka High CourtJust Because The Ratio For Payment Of Service Tax Not Adhered To, Assessee Not Liable To Pay Double Tax As Penalty: Karnataka High Court Case Title: The Vice Chairman Settlement Commission & Anr. versus M/s Zyeta Interiors Pvt. Ltd & Anr. The Karnataka High Court has ruled that merely because the ratio in which service tax was required to be paid by the service recipient and the service provider was not strictly adhered to, the assessee cannot be made...

Supply Of Works Contract Services To Nagar Nigam Attracts 12% GST: AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of Arun Richard and Atul Mehta has ruled that 12% GST is payable on the supply of work contract services to Nagar Nigam. The applicant, M/s Amnex Infotechnologies Private Limited, submitted that Request for Proposal (RFP), issued by the Shahjahanpur Nagar Nigam, Uttar Pradesh, for the selection of a Master System Integrator (MSI) for the implementation of the Intelligent Traffic Management System (ITMS) in Shahjahanpur city....

Sale Of Car By Company After Using It For Business Purpose Attracts 18% GST: AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of Arun Richard and Atul Mehta has ruled that 18% GST is payable on the sale of a car by a company after using it for business purposes.The applicant, M/s. Dishman Carbogen Amcis Limited, purchased a new car for Rs. 80 lakhs on 16-02-2018 for use in its business. The applicant did not avail GST Input Tax Credit at the time of purchase as it is restricted under Section 17(5) of the CGST Act, 2017. Depreciation was claimed under...

Just Because The Ratio For Payment Of Service Tax Not Adhered To, Assessee Not Liable To Pay Double Tax As Penalty: Karnataka High Court

The Karnataka High Court has ruled that merely because the ratio in which service tax was required to be paid by the service recipient and the service provider was not strictly adhered to, the assessee cannot be made liable to pay double tax by denying him the CENVAT Credit. The Bench, consisting of Justices S. Sujatha and Shivashankar Amarannavar, held that the reverse charge mechanism should not lead to double taxation. The respondent/assessee M/s. Zyeta Interiors Pvt. Ltd. is...