Credit Card Fees Payable To Foreign Counterpart Of Indian Banking Company Is Not Taxable In India: Delhi High Court

The Delhi High Court held that fees received by the foreign branch of banking company for extending a credit line to the account holder outside India, would not be taxable in India.While noting that the amount payable by the credit card holders would clearly be a debt incurred outside India, the Division Bench of Justice Yashwant Varma and Justice Ravinder Dudeja observed that fee in respect...

Liberty Given To Revenue In SC's Abhisar Buildwell Judgment To Initiate Reassessment Proceedings Doesn't Overcome Limitation U/S 149 Income Tax Act: Delhi HC

The Delhi High Court has made it clear that the Supreme Court judgment in Abhisar Buildwell, which granted liberty to the Revenue Department to initiate reassessment proceedings under Sections 147/148 of the Income Tax Act- in case of completed/ unabated assessment, if no incriminating material is found during the search- cannot be construed to be an authority to override the...

Himachal Pradesh HC Says Rule 86B Of CGST Rules Limiting Discharge Of Output Tax Liability Through ITC In Electronic Credit Ledger Appears To Be Ultra Vires HPGST Act But Leaves Issue Open

The Himachal Pradesh High Court recently observed that Rule 86B of the Central Goods and Services Tax (CGST/HPGST) Rules, 2017, which restricts use of Input Tax Credit (ITC) in the Electronic Credit Ledger for releasing Output tax, appears to be ultra vires the HP Goods and Services Tax Act 2017.Rule 86B stipulates that ITC in the Electronic Credit Ledger can be used to discharge 99% of...

Payment To Non-Employed Director As Sitting Fees Is Not Salary, Hence Liable To Service Tax: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made to a non-employed director as director's sitting fees is not in the nature of salary; hence, the director's fees are liable to the levy of Service Tax.The Bench consists of Ramesh Nair (Judicial Member) and Raju (Technical Member), considered the issue of whether the assessee...

Society Imparting Knowledge Or Skills Qualifies For 'Education' Label, Entitled To Exemption Under Section 12A Of Income Tax Act: Punjab & Haryana High Court

The Punjab and Haryana High Court held that a society that imparts knowledge or skills qualifies for the 'education' label under the Income Tax Act, making it eligible for tax exemptions under Section 12A of the Income Tax Act, 1961.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “……Vocational training has been now recognized to be an important as...

Himachal Pradesh HC To Decide If 12% Free Power Supply To States By Hydro Power Projects Can Be Subjected To GST, Stays 1000+ Cr. Demand Against NHPC

The Himachal Pradesh High Court is set to decide whether free power supply of 12% to the States where distress is caused by hydro power projects, can be subjected to Service Tax or GST.Meanwhile, Division bench of Chief Justice M.S. Ramachandra Rao and Justice Satyen Vaidya has stayed the demand made by the Additional Commissioner of CGST Department on the National Hydroelectric Power...

Continuation Of Proceedings On Ceased Entity Is Not Curable U/s 292B: Delhi High Court

While following the decision of Apex Court in Principal Commissioner of Income Tax, New Delhi vs Maruti Suzuki (India) Limited [(2020) 18 SCC 331], the Delhi High Court held that the initiation or continuation of assessment or reassessment proceedings after a company cease to exist due to merger pursuant to a Scheme of Arrangement, is not sustainable, and cannot be cured by applying...

Scheduled Commercial Bank Had Utilized Opening Balance In Bad Debts Account To Reduce Total Bad Debts Written Off: Bombay HC Allows Benefit Of Sec 36(1)(Vii)

The Bombay High Court held that deduction claimed by bank u/s 36(1)(vii) in respect of write off bad debts is allowable without any adjustment to the credit balance in the provision for bad and doubtful debts u/s 36(1)(viia) which was adjusted with the bad debts claimed in the subsequent AY.The High Court held so after finding that the taxpayer had utilized the opening balance in the “bad...

Mistake Apparent On Record Pertaining To 'Disputed Tax' & 'Tax Arrears' Can Be Rectified Under Vivad Se Vishwas Scheme: Delhi HC

The Delhi High Court held that the once the relief is already accorded to assessee in the original assessment order, then Designated Authority (DA) can rectify the mistake apparent on record by allowing the assessee to file a fresh Form 3 under VSV Act.On examination of the relevant provisions outlined under Vivad Se Vishwaas Act (VSV Act), the Division Bench comprising Justice Yashwant Varma...

Entire TDS Along With Penal Interest Stands Paid By Taxpayer Upon Intimation By I-T Dept.: Kerala HC Quashes Proceedings U/s 276B Of Income Tax Act

The Kerala High Court held that taxpayer cannot be prosecuted u/s 276B of Income tax Act simply because of failure to deduct and pay TDS to the government, once the non-compliance was sorted out and the tax along with penalty was sufficiently deposited to the government, after being informed of the delinquency. As per Section 276B of the Income Tax Act, if a person fails to pay...

'Technological Impediment Can't Be A Reason To Harass Assessee' : Supreme Court Asks Income Tax Dept, CBDT To Resolve Software Issues

Technological impediment cannot be a reason to harass an assessee, said the Supreme Court while asking the Income Tax Department to upgrade its software to ensure that mistakes do not occur in the future.The Court directed that the Central Board for Direct Taxes should also take necessary steps for rectifying the software.A bench comprising Justices PS Narasimha and Sandeep Mehta was hearing...

Taxation And Other Laws Act, 2020 Does Not Alter Sanction Powers For Reopening Conferred U/s 151 Of Income Tax Act: Delhi High Court

The Delhi High Court recently clarified that the TOLA [Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020] authorisation merely enables the competent authority to take action within the extended time period which would have otherwise been regulated by Sections 148 and 149, but does not amend the structure for approval which stands erected by virtue of...