Expenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court

Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Ltd.

Citation: 2022 LiveLaw (Del) 1048

The Delhi High Court has ruled that advertisement expenses, Software Developing Charges, and expenses towards brokerage and commission, incurred by a real estate developer, are in the nature of general administration cost and selling cost, as classified by the Guidance Note issued by the ICAI. Thus, they qualify for deduction as revenue expenditure.

Reassessment Notice Based On Error Resulting From Oversight Of AO Is Not Valid: Delhi High Court

Case Title: Deepak Kapoor Versus PCIT

Citation: 2022 LiveLaw (Del) 1065

The Delhi High Court has held that the reassessment notice based on an error resulting from the oversight of the assessing officer is not valid.

Delhi High Court Quashes Reassessment Order In The Name Of A Non-Existing Entity

Case Title: Rajasthan Global Securities Private Limited Versus ACIT

The Delhi High Court has quashed the reassessment order in the name of a non-existing entity.

The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that not only was the notice issued in the name of the transferor company but the order under Section 148A(d) of the Income Tax Act, as well as the notice under Section 148, have been issued on the PAN of the transferor company.

Madras High Court

Assessment Made To Best Of Judgment Of Authority Would Not Be Sufficient For Imposition Of Penalty: Madras High Court

Case Title: N/s.Sayar Cars Versus The Appellate Deputy Commissioner (CT)

The Madras High Court has held that the assessment made to the best of the authority's judgement would not be sufficient for the imposition of penalty, as the degree of proof required for the imposition of penalty is much higher than that required for the purpose of framing a best judgement assessment.

Show Cause Notice Issued To The Driver Of Consignment Is Not Adequate: Madras High Court

Case Title: Ramki Cements Private Limited Versus The State Tax Officer

The Madras High Court has held that the show-cause notice issued to the driver of the consignment is not adequate.

The single bench of Justice S. Srimathy has quashed the demand for tax and penalty in Form GST MOV-09 and directed the department to issue a fresh notice.

Rajasthan High Court

ITAT Is Last Fact Finding Authority And Bound To Follow Directions Issued By High Court in Pith and Substance: Rajasthan High Court

Case Title: Pooja Agarwal Versus Commissioner of Income Tax-1

The Rajasthan High Court has held that the Income Tax Appellate Tribunal (ITAT) is the last fact-finding authority and is bound to follow the directions issued by the High Court in pith and substance.

ITAT

ITAT Restricts Addition To Estimated Profit Of 30% Of Cash Deposits Made During Demonetisation Period

Case Title: Ms.Asokan Meena Versus ITO

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to estimate a 30% net profit on total cash deposits made during the demonetization period and deleted the balance additions made under Section 69A of the Income Tax Act.

Payment Made To Non-Resident Marketing Partners for Sale Services is FTS: ITAT

Case Title: M/s.Sunsmart Technologies Pvt. Ltd. Versus The Asst. Commissioner of Income Tax

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that payment made by the assessee to non-resident marketing partners for providing pre and post-sale services related to software solutions is in the nature of fees for technical services (FTS).

Software Development Expenses For Rendering Services To Clients Is Revenue Expense: ITAT

Case Title: Dy. Commissioner of Income Tax- 3(3)1) Versus M/s. Sikraft Infotech Private Limited

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the software development expenses for rendering services to clients are revenue expenses.

Assessee Proved Creditworthiness Of Loan Transactions: ITAT Deletes Addition

Case Title: ITO Versus M/s KDG Projects Pvt. Ltd.

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition as the assessee proved the creditworthiness of loan transactions.

CESTAT

No Mala Fide Intent To Evade Service Tax: CESTAT Quashes Penalty

Case Title: Dinesh Chandra Dubey Versus & Service Tax, Excise and Customs

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty and held that the service provider receiving a commission in lieu of providing "business auxiliary services" from Adarsh Credit Cooperative Society did not have a mala fide intention to evade service tax.

No Service Tax Payable On Facility Charges Attributable To Electricity Expenses: CESTAT

Case Title: Nai Dunia Media Pvt. Ltd. Versus Commissioner of Central Goods & Service Tax and Central Excise

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the amount received as facility charges as it was wholly attributable to electricity expenses, which have been shared proportionately by the assessee and its sister concerns.

Intentional Short Payment Of Excise Duty: CESTAT Upholds Penalty

Case Title: Meghmani Organics Ltd. Versus C.C.E. & S.T.-Surat-ii

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the penalty under Section 11AC of the Central Excise Act, 1944, on the ground of intentional short payment of excise duty.

Finished Goods Destroyed In Fire; Bajaj Herbals Eligible For Remission Of Excise Duty: CESTAT

Case Title: Bajaj Herbals Private Ltd Versus C.C.E. Ahmedabad-II

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Bajaj Herbals was eligible for remission of duty on the finished goods destroyed in the fire incident.

No Excise Duty Can Be Demanded On Semi-Finished Goods Lying At The Time Of Debonding Of 100% EOU: CESTAT

Case Title: IPCA Laboratories Ltd. Versus C.C.E

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty cannot be demanded on semi-finished goods or work in process lying at the time of debonding of 100% Export Oriented Units (EOU).

Cenvat Credit Can't Be Denied Merely For Non-Registration Of Input Service Distributor : CESTAT

Case Title: M/s. Arkkays National Engineering & Foundry Co. Versus The Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit cannot be denied on the grounds of non-registration of input service distributor registration in respect of bank charges and chartered accountant services.

AAAR

Liquidated Damages Recoverable From Bi-electric India For Delay In Commissioning, Doesn't Qualifies As Supply, No GST Payable: AAAR

Applicant's Name: M/s. Achampet Solar Private Limited

The Telangana Appellate Authority of Advance Ruling (AAAR) has held that liquidated damages recoverable by the applicant from Bi-electric India on account of delay in commissioning do not qualify as a "supply" and no GST is payable.

AAR

ITC Can Be Claimed Under Marginal Scheme On Rent, Advertisement expenses, commission, Professional expenses: AAR

Applicant's Name: Attica Gold Private Limited

The Karnataka Authority of Advance Ruling (AAR) has held that the input tax credit (ITC) under the marginal scheme on expenses like rent, advertisement expenses, commission, professional expenses, and other like expenses is subject to sections 16 to 21 and rules 36-45 of the CGST Act and Rules 2017.

The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that ITC can be claimed on capital goods under the marginal scheme, subject to sections 16 to 21 and rules 36-45 of the CGST Act and Rules 2017.

Activities Carried Out by Sub-Contractor For Shifting Electrical Utilities Can't be Regarded as Composite Supply of Works Contract: AAR

Applicant's Name: Shree Powertech

The West Bengal Authority for Advance Ruling (AAR) has held that activities carried out by subcontractors for the shifting of electrical utilities for the construction of roads cannot be regarded as a composite supply of works contracts.

GST Not Payable On Notice Pay Recovery From Outgoing Employee: Punjab AAR

Applicant's Name: Rites Limited

The Punjab Authority of Advance Ruling (AAR) has held that the GST is not payable on notice pay recovered from outgoing employees.

The member bench of Sunder Lal and Kumud Singh has observed that the amount received as notice pay recovery by the applicant from the employees who leave the applicant company without serving the mandatory notice period mentioned in the employment contract is not a consideration for any supply or service.

Tax Paid On Purchases To Meet The CSR Obligations Is Eligible For ITC: Telangana AAR

Applicant's Name: Bambino Pasta Food Industries Private Limited

The Telangana Authority of Advance Ruling (AAR) has ruled that the tax paid on purchases made to meet the obligations under corporate social responsibility (CSR) will be eligible for input tax credit (ITC) under the CGST and SGST Acts.