Tax
Non-Disclosure Of A Foreign Asset In ITR Is Not A Valid Reason For Imposition Of Penalty If source Of Investment Is Well Explained: Mumbai ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) headed by Pramod Kumar (Vice President) and Rahul Chaudhary (Judicial Member) has ruled that mere non-disclosure of a foreign asset in the income tax return, by itself, is not a valid reason for a penalty under the Black Money Act, if the source of investment is well explained by the assessee.The Assessing Officer challenged the correctness of the order passed by the Commissioner (Appeals) in the matter of penalty under ...
Service Tax Not Leviable On IPL Promotion Activities By Anil Kumble: CESTAT
The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P. Dinesha (Judicial Member) and P. Anjani Kumar (Technical Member) has held that the promotional activities undertaken by the former Indian skipper Anil Kumble shall not be treated as "business auxiliary services", so no service tax can be imposed. The department issued the show-cause notices based on the agreement between players and franchisee and the MOU between M/s. United...
Income Tax Dept. To Decide On Rectification Application Filed By American Express, Grant Refund If Any: Delhi High Court
The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has directed the income tax department to decide on the rectification application filed by American Express and grant a refund, if any, along with the interest.The petitioner/assessee sought the direction from the respondents/department to pass orders disposing of the rectification applications for the assessment years 2005-06, 2006-07, 2008-09, 2009-10, 2012-13, 2014-15, 2017-18, 2006-07 (FBT) and 2007-08 (FBT)...
Monthly Digest Of Tax Cases- March 2022
Supreme Court 1. Supreme Court Rules Tata Steel Has Locus Standi To Challenge Denial Of Input Tax Credit To Its Unit Case Title: Tata Steel Ltd Versus The State Of Jharkhand And Ors. A Bench of Supreme Court, consisting of Justices Sanjiv Khanna and Bela M. Trivedi, remanded a matter back to Jharkhand High Court for a fresh decision on Tata Steel's writ petition against the denial of input tax credit to its Naomundi unit. The court held that the High Court was not...
No Liability To Deduct TDS On Payments Made By Lenskart To Facebook Ireland: ITAT Delhi
The Delhi Bench of ITAT, consisting of members N. K. Choudhry (Judicial Member) and Anil Chaturvedi (Accountant Member), has upheld the order passed by the CIT (A) deleting additions of over Rupees 67 Lakhs made to Lenskart's taxable income for non-deduction of TDS on marketing expenses paid by it to Facebook Ireland Inc. The Bench noted that the CIT (A) had concluded that that there was no liability to deduct tax on payments made for advertising services to Facebook Ireland Inc. ...
Limitation For Revisionary Jurisdiction Runs From The Date Of Assessment Order And Not Reassessment, If Subject Matter Was Not Covered In Reassessment: ITAT Kolkata
The Kolkata Bench of ITAT, consisting of members Rajpal Yadav (Vice President) and Rajesh Kumar (Accountant Member), has ruled that the period of limitation for exercising revisionary jurisdiction under Section 263 of Income Tax Act, 1961 runs from the date of assessment order and not the reassessment order, if the revisionary jurisdiction is sought to be exercised with respect to an issue which was not the subject matter of reassessment proceedings. The Assessee Alkem Laboratories...
Application Of Section 14 Of Limitation Act In Income Tax Proceedings
Most rights are subject to limitations that are necessary and reasonable in a democratic society for the realization of certain common goods such as social justice, public order and effective government or for the protection of the rights of others. The limitation is either engrained in the statute itself or in case no limitation is prescribed, resort can be had to the Law of Limitation, 1963. The Law of Limitation is a procedural law which is founded on public policy. It is based on the...
GST Is Payable 'On Fair Trade Premium': Kerala AAR
The Kerala Authority of Advance Ruling (AAR) bench of Sreeparvathy S.L. and Abraham Renn S. has ruled that GST is payable on fair trade premium, which forms part of the consideration and value of a taxable supply of goods.The applicant, M/s Fair Trade Alliance Kerala, was formed in 2006 and is an association of over 4000 small-holder farmers in North Kerala. Fair Trade is an organised social movement and a market-based approach that aims to help producers in developing countries obtain...
AO's Jurisdiction Doesn't Change On Mere Surrendering Section 12A Registration: ITAT Upholds Income Tax Reassessment Order Against Young Indian
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Amit Shukla (Judicial Member) and Anil Chaturvedi (Accountant Member) has upheld the income tax reassessment order against Young Indian on the grounds that the jurisdiction of AO does not change on mere surrendering registration under Section 12A of the Income Tax Act. The appellant, Young Indian (YI), was incorporated and registered as a company on November 23, 2010, when a licence was granted under section 25 of...
GST Payable On Value Of Supply Which Includes Interest For Delayed Payment: AAR
The Telangana Authority of Advance Ruling (AAR) bench of members S.V. Kasi Visweswara Rao and B. Raghu Kiranhas ruled that the Goods and Service Tax is payable on the value of supply, which includes interest, late fee, or penalty for delayed payment.The applicant, M/s.Hyderabad Metropolitan Water Supply and Sewerage Board, is a local authority which has been making payments to the contractors in an equated yearly instalment manner, which consists of both the principal amount and interest...
Section 44 Of GVAT Act Akin To Garnishee Order; Requires Debtor-Creditor Relationship: Gujarat High Court
"It can be said that in interpreting a taxing statute, the equitable considerations are entirely out of place. The reasons of morality and fairness can have no application to bring a citizen who is not within the four corners of the taxing statute within its fold so as to make him liable to payment of tax," Justice JB Pardiwala of the Gujarat High Court has opined. The Bench was hearing a writ application under Art 226 wherein the Applicants had prayed for the quashment of the impugned...
'Ready to Eat' Popcorn Sold In Retail Packages Attracts 18% GST: AAR
The Telangana Authority of Advance Ruling, consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao, has ruled that 18% GST is payable on 'ready to eat' popcorn sold in retail packages.The applicant, M/s. Agro Tech Foods Limited, is in the business of selling, among other commodities, Ready to Eat (RTE) popcorn. The popcorn is usually flavoured with salt, caramel, strawberry, chocolate, or kettle popcorn without any flavour. "Ready to eat" popcorn is obtained by popping the maize...