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...

No Service Tax payable On Packed Food Sold As Take Away And Not Served In Restaurant: CESTAT

The Ahmedabad Bench of Customs, Excise and Tax Appellate Tribunal (CESTAT) consisting of Ramesh Nair (Judicial Member) and Raju (Technical Member) has ruled that service tax is not payable on packed food sold as take away and not served in the restaurant. The appellant/assessee has been engaged in providing catering service at restaurants for which they are holding service tax registration. On the scrutiny of records of the appellant by CERA Audit it was noticed that the appellant had a...

Rejection of Additional Evidence without Examination is Violation of Principles of Natural Justice: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has ruled that rejection of additional evidence without examination is a violation of principles of natural justice.The two-member bench of B.R.R.Kumar (Accountant Member) and Saktijit Dey (Judicial Member) has restored the issue to the file of Commissioner (Appeals) for de-novo adjudication after considering the additional evidences filed by the assessee and the remand report of the Assessing Officer. The tribunal has directed the...

ITAT Remands Matter To CIT(A) To Determine Taxable Income After Examining Nature Of Credit Entries, Bank Accounts

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) consisting of Astha Chandra (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member) has remanded the matter back to CIT(A) to determine the issue afresh after examining the bank accounts and determining the taxable income. The assessee/appellant had credited a total amount of Rs.4,00,74,711/- in the bank accounts of his various proprietary concerns. All the deposits were made in PNB, New Delhi in the names of Tirupati...

Mango Pulp/Puree' Attracts 18% GST: AAAR

The Andhra Pradesh Appellate Authority of Advance Ruling (AAAR) consisting of Suresh Kishnani (Central Tax) and S.Ravi Shankar Narayan (State Tax) has ruled that 18% GST is chargeable on Mango Pulp/Puree'. The Appellant, a Public Limited Company, has been engaged in the business of supplying mango pulp/puree within India including merchant export. The Appellant procures selected varieties of fresh mango fruits and transports them to the fruit processing plant. The fruits are...

Delhi High Court: Findings Of Fact Recorded By ITAT Not Perverse, Cannot Be Interfered Under Section 260A

The Delhi High Court has ruled that in an appeal to the High Court under Section 260A of the Income Tax Act, 1961 there can be no interference with the finding of fact if it involves re-appreciation of the evidence. The Division Bench, consisting of Justices Manmohan and Sudhir Kumar Jain, held that if a particular receipt has been disclosed in the income and expenditure account, the same cannot be considered as unaccounted income in the hands of the Assessee and be subject to...

Printing Of Pamphlet/Leaflet Falls Under The Category Of Supply Of Service, Attracts 18% GST: AAAR

The Daman Appellate Authority of Advance Ruling (AAAR) consisting of Gaurav Singh Rajawat (State Tax) and Seema Arora (Central Tax) while upholding the ruling of the Authority of Advance Ruling (AAR), held that printing of pamphlet/leaflet falls under the category of supply of service and it attracts GST at the rate of 18%.The appellant has been engaged in the activity of printing leaflets (further divided into insert/outsert) and falling under CHS No. 4901. The product has been ...

District Magistrate Empowered To Attach Property, Not Bruhat Bengaluru Mahanagara Palike Commissioner: Karnataka High Court

The Karnataka High Court has held that the District Magistrate is empowered to attach the property and not the Commissioner of Bengaluru Mahanagara Palike Commissioner (BBMP). The single bench of Justice S.P.Sandesh has observed that the Commissioner of BBMP, has no authority to attach the property as ordered by the Special JMFC (Sales Tax) Court and it ought to be enforced under Section 421(1)(b) of Cr.P.C, through the collector of the District. The petitioner/assessee, a...

Consideration For Accessing Database Cannot Be Treated As 'Royalty' Under India-US DTAA: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT)has ruled that the consideration for accessing Database cannot be treated as 'Royalty' under India-US Double Taxation Avoidance Agreement (DTAA). The two-member bench of Challa Nagendra Prasad (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that the purchaser of the book does not acquire the right to exploit the underlying copyright, when the purchaser reads the book, he only enjoys the contents. Similarly,...

Application For Compounding Of Offence Under Section 276CC Income Tax Act Cannot Be Rejected If Conviction Is Set Aside By The Special Judge:Delhi HC

A Bench of the Delhi High Court, consisting of Justices Manmohan and Navin Chawla, has ruled that an application seeking compounding of the offence under Section 276CC of the Income Tax Act, 1961 could not be rejected on the ground that the Assessee had not been acquitted of the criminal charges, if his conviction with respect to the given offence has been set aside by the Special Judge, CBI. The Assessee had filed an application before the Chief Commissioner of Income Tax (Appeals)...

Neither Rational Nexus Nor Fresh Material To Believe Escapement Of Income: Delhi High Court Quashes Reassessment Notice

The Delhi High Court has quashed the reassessment notice issued under Section 148 of Income Tax Act, 1961 on the grounds that the reason to believe was invalid, had no rational nexus to the belief for escapement of income and there was no fresh material on record to initiate reassessment proceedings. The division bench of Justice Manmohan and Justice Sudhir Kumar Jain has opined that the reasoning "the contingent liability has been claimed as revenue expense" is contrary to the concept...

AO Can't Take Advantage Of Assessee's Ignorance To Collect More Tax: Karnataka High Court Condones Delay Of 6 Years In Filing Revised ITR

A bench of Karnataka High Court consisting of Justice Sunil S.Yadav has condoned the delay of 6 years in filing revised Income Tax Return (ITR). A single judge bench of Justice Sunil S.Yadav has observed that the intention of Circular No.014 (XL-35) dated 11.04.1955 was not that tax due should not be charged or that any favour should be shown to anybody in the matter of assessment, or where investigations are called for, they should not be made. Whatever the legitimate tax it must be...