Leasing & Maintaining Of Industrial Gas Plant Doesn't Qualify As "Job Work": AAR

The Orissa Authority of Advance Ruling (AAR) consisting of G.K. Pati (CGST Member) and Hrushikesh Mistra (SGST Member) has ruled that the leasing and maintenance of hydrogen and nitrogen gas plants does not qualify as "job work".The applicant, a Government of India undertaking in the business Petrochemical, owns and operates an oil refinery in the state of Odisha located at Paradeep. The Applicant refines crude oil and produces several petroleum products. The Applicant requires ...

Appeal U/S 260A Of Income Tax Act Can't Be Entertained Except On The Ground Of Perversity/Lack Of Evidence: Delhi High Court

The Delhi High Court bench consisting of Justice Rajiv Shakdher and Justice Talwant Singh has dismissed the appeal against the deletion of income tax addition for share or bogus purchases or cash deposits and held that appeal under section 260A of Income Tax Act cannot be entertained by High Court except on the grounds of perversity or for the complete lack of evidence.The appellant/department challenged the order of ITAT on the grounds that ITAT has failed to take into account the true...

Amount Received Under Distribution Agreement Of Computer Software Not 'Royalty' If No Right To Transfer Copyright: Delhi High Court

The Delhi High Court has ruled that an amount received under a distribution agreement with respect to a computer software did not amount to 'royalty' under the Income Tax Act, 1961, if the agreement does not create a right to transfer the copyright with respect to it. The Bench, consisting of Justices Manmohan and Sudhir Kumar Jain, had observed that in view of the Supreme Court ruling in the case of Engineering Analysis Centre of Excellence Private Limited versus the Commissioner of...

ITAT Chennai: Internal Family Arrangement Has No Bearing On Computation Of Capital Gains From Joint Property

The Chennai Bench of ITAT, consisting of members V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member), has held that capital gains under the Income Tax Act, 1961 is to be computed according to the respective share of the parties in a residential property and not according to any internal family arrangement. The Assessee had filed his income tax return, which was taken up for scrutiny. The Assessing Officer (AO) had noticed that the Assesse, along with his wife and his...

GST Dept. Should Issue DRC-1 Notice, Grant Fair Opportunity Of Hearing Before Passing Assessment Order: Madras High Court

The Madras High Court has held that the DRC-01 notice under Section 74(1) of the CGST Act must be issued before passing the assessment order. The single bench of Justice R. Suresh Kumar has remitted the after back to the respondent/department for reconsideration and directed that the department to issue DRC-01 notice to the petitioner and after giving a fair opportunity of being heard to the petitioner/assessee, necessary orders shall be passed with regard to the assessment. If any...

Failure Of The Dealer To Attend Assessment Proceedings, No Violation Of Principles Of Natural Justice: Kerala High Court

The Kerala High Court has held that failure of a dealer to attend assessment proceedings cannot be regarded as the violation of principles of natural justice. The single bench of Justice Bechu Kurian Thomas has observed that petitioner/dealer was granted sufficient opportunity to contest the assessment proceedings and the failure to do so cannot be regarded as a violation of the principles of natural justice to invoke the discretionary jurisdiction under Article 226 of the Constitution....

Owner Of Vehicle Not Vicariously Liable For Any Misdeclaration By Owner Of Goods: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that the owner of the vehicle who is seeking only release of the vehicle is not liable to pay fine for the confiscated goods.The division bench of Justice Ajay Tewari and Pankaj Jain has observed that to force the owner of the vehicle to pay the tax, penalty and fine on the goods would mean that the owner of the vehicle is also foisted with the vicarious liability of any mis-declaration/fraud by the owner of the goods despite the proviso...

Income Tax Commissioner In Discretionary Power Of Revision Can't Act As Appellate Authority: Calcutta High Court

The Calcutta High Court has ruled that the power of an Appellate Authority is much wider than that of a Revisional Authority and the Commissioner, in the exercise of his discretionary power of revision under Section 264 of the Income Tax Act, cannot act as an Appellate Authority and go into the merits of the assessment by re-appreciating the facts and evidence. The single bench of Justice Md. Nizamuddin has observed that the petitioner/assessee has not filed any statutory appeal before...

Whether Nikon Eligible For Custom Duty Exemption Under Information Technology Agreement: Question Referred To Larger Bench

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Justice Dilip Gupta (President) and P.V.Subba Rao (Technical Member) has referred the issue of eligibility to avail the benefit of the exemption of Basic Custom Duty (BCD) under Information Technology Agreement (ITA)on Digital Still Image Video Cameras imported by Nikon to the larger bench.Nikon has been engaged in the import and trade of various electronic products, including digital still image...

CESTAT Upholds Penalty Against Hindustan Coca Cola For Excise Duty Evasion On Pretext Of Stock Transfer

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld that penalty against Hindustan Coca Cola for the evasion of Excise Duty on the pretext of stock transfer.The tribunal consisting of Rachna Gupta (Judicial Member) has observed that the proviso to Rule 3(5A) of the CCR, 2004 is applicable to the transaction of the generator set after use by the appellant/assessee from one unit to another. Since the appellant has given the value in the invoice while...

Non Production Of Persons Despite Summons Leads To Inference Of Routing Own Money : ITAT Delhi

The Delhi Bench of ITAT, consisting of members G.S. Pannu (President) and K. Narsimha Chary (Judicial Member), has ruled that an Assessing Officer has the power to verify transactions beyond the paperwork submitted by the Assessee under Section 68 of the Income Tax Act, 1961. The Assessing Officer (AO) had disallowed expenses and made additions to Assessee's income under Section 68 of Income Tax Act, 1961 on the ground that the transaction of loans and advances by an advisory company...

ITAT: Unascertained Business Loss Cannot Be Allowed As Deduction

The Bangalore Bench of ITAT, consisting of members Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member), has ruled that unless the recovery of embezzled amount in the course of business was impossible, it could not be claimed as a business loss. The ITAT ruled that an unascertained loss cannot be allowed as deduction from taxable income. The Assessing Officer (AO) had disallowed loss from embezzlement of cash by Assessee's staff as business loss on the ground that the...