Tax
Section 80IA Income Tax Act | Internal CUP Method Is Most Appropriate For ALP Determination In Captive Power Transactions: Calcutta High Court
The Calcutta High Court held that Internal CUP (Comparable Uncontrolled Price) method is most appropriate for ALP (Arm's Length Price) determination in captive power transactions. Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) was addressing issue of whether the Internal Comparable Uncontrolled Price (CUP) method adopted by the assessee was right in determining the Arm's Length Price (ALP) for power supplied by the assessee's Captive Power Plants (CPPs) to ...
Insurance Claim Received On Dead Horses Is Capital Receipt, Not Taxable As Income U/S 41(1): Bombay High Court
The Bombay High Court held that insurance claim received on dead horses is capital receipt, not taxable as income under Section 41(1) Of Income Tax Act. The bench opined that horses in respect of which the insurance claim was received were Assessee's capital assets and that therefore insurance receipt arising therefrom could only have been considered as capital receipt, not chargeable to tax. The question before the bench consists of Chief Justice Alok Aradhe and Justice Sandeep...
[Income Tax Act] Amount Indicated In P&L Account As Provision For Doubtful Debts/Advances Cannot Be Treated As "Reserve" U/S 115JA: Bombay HC
The Bombay High Court has ruled that a provision for doubtful debts cannot be treated as either a "reserve" or a "provision for liability" under clauses (b) or (c) of the Explanation to Section 115JA of the Income Tax Act, 1961, and thus cannot be added back to the book profits for the purpose of minimum alternate tax (MAT). The Court accordingly overturned the addition of ₹2.49 crore made by the Assessing Officer and upheld by the Tribunal.A Division Bench of Chief Justice Alok Aradhe and...
No Service Tax On 'Upfront Fee' Received By DMRC From Customers Under Concession Agreement: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on 'upfront fee' received by DMRC (Delhi Metro Rail Corporation) from customers under concession agreement. Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the “upfront fee” received by the Delhi Metro Rail Corporation Ltd. from various customers under the Concession Agreements entered prior to 1.7.2010 is exigible...
Goods Not Prohibited Under Foreign Trade Policy Still Require Valid IEC; Import Using Bogus Codes Impermissible: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods not prohibited under foreign trade policy still require valid IEC (Importer Exporter Codes), import using bogus codes is impermissible. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) observed that there is nothing in the FTDR Act (The Foreign Trade (Development and Regulation) Act, 1992 which provides for any IEC holder to lend his IEC to somebody else or...
'Was Returning From Mecca': Delhi High Court Orders Customs To Release Woman's Gold Jewellery, Says 24 Kt Purity Not Grounds For Seizure
The Delhi High Court has ordered the Customs Department to release the gold jewellery which was seized from a Muslim woman while she was returning from a religious pilgrimage to Mecca.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed that it is normal practice in our country for women to wear basic jewellery and the same cannot be seized by the Customs Department only on the ground that it is of 24 carat purity.“The Court has heard the parties and has considered...
Demand U/S 73A Of Finance Act Unsustainable Without Proof Of Service Tax Collection: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that demand under Section 73A Of Finance Act unsustainable without proof of service tax collection. Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) stated that “the invoice does not indicate any service tax collection by the assessee. The assessee had merely collected VAT and AAI levy from their clients, and no amount representing Service tax has been collected....
Revisional Authority U/S 264 Of Income Tax Act Can Only Review Existing Orders, Cannot Issue Directions To Assessing Authority: Kerala HC
The Kerala High Court stated that the powers of revisional authority under Section 264 of the Income Tax Act is confined to reviewing existing orders, and the authority cannot issue directions to the assessing authority. Section 264 of the Income Tax Act, 1961 empowers the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner to revise certain orders. Justice Ziyad Rahman A.A. agreed with the department that powers conferred upon the revisional...
Department Serving Notice Via WhatsApp Post-COVID Is Not Valid U/S 169 CGST Act: Kerala High Court
The Kerala High Court stated that notice via WhatsApp was permitted only during COVID-19 pandemic and is not a valid mode of service under Section 169 CGST Act. Section 169 of the Central Goods and Services Tax (CGST) Act, 2017, outlines various methods for serving notices, orders, or communications under the GST law. Justices Nitin Jamdar and Basant Balaji was addressing the case where the department had served the detention and confiscation order to the assessee through...
Kerala High Court Upholds Triple Tax On Unauthorised Construction Due To Lack Of Proof Of Deemed Permit
The Kerala High Court has upheld triple tax on unauthorised construction due to lack of proof of deemed permit. Justice Ziyad Rahman A.A. stated that “in the absence of any documents indicating the submission of application for permit and inaction on the part of the Panchayat in considering the said application, the contention of the assessee as to the deemed permit cannot be accepted.” Those are the basic documents which are required to establish the case of the assessee and in...
Appeal On Service Classification Under 'Insurance Auxiliary Service' Not Maintainable Before High Court: Calcutta High Court
The Calcutta High Court stated that an appeal on service classification under 'insurance auxiliary service' not maintainable before the High Court. Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) was addressing the appeal filed by the department/appellant under Section 35G of the Central Excise Act, 1944 read with section 83 of the Finance Act, 1994 challenging the order passed by the Customs, Central Excise & Service Tax Appellate Tribunal, East Zonal Bench,...
Gram Panchayat Cannot Levy Property Tax On Industrial Establishment Within Notified Industrial Areas: Karnataka High Court
The Karnataka High Court has held that the Gram Panchayat cannot levy or collect property taxes in respect of Industrial establishments located within areas notified by the Karnataka Industrial Areas Development Board (KIADB). Mere execution of a lease-cum-sale agreement or any administrative communication cannot vest power in the Gram Panchayat to levy tax in the absence of express delegation or statutory backing.Justice Sachin Shankar Magadum held thus while allowing a batch of petitions and...