Service Charge Collected By Medical Store In Hospital Covered Under “Health Care Services”, Exempted From Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service charge collected by a medical store in the hospital is covered under “Health Care Services” and are exempted from Service Tax. The Bench of Binu Tamta (Judicial Member) has observed that “medical aid to the patients who are admitted in the hospital, most of the...

Goods Already Exported Before New Notification; Conditions Mentioned Are Not Relevant For Denying Refund: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that since the refund claim is for exports which had already taken place before the new notification, the requirement to submit returns (as mentioned in the new notification) does not apply and cannot be used as a reason to deny the refund. The Bench of M.M. Parthiban (Technical Member)...

Local Commissioner's Report Establishing Supplier's Existence Is Sufficient: CESTAT Grants CENVAT Credit To Assessee

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the report of the Local Commissioner, which establishes the existence of the supplier, is sufficient to grant CENVAT credit to the assessee. The Bench of M.M. Parthiban (Technical Member) has observed that “the affidavit duly bearing the stamp of the Civil Judge (Sr....

Factory Closed Due To Unavoidable Circumstances Not Liable For Excise Duty: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that if a factory is closed due to unavoidable circumstances, it is not liable to pay excise duty. The Bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that “the closure of the factory was not on the choice of the assessee whereas, they were compelled to keep...

Foreign Entity Having Valid Tax Residency Certificate Is Eligible To DTAA Benefit On Long-Term Capital Gain From Sale Of Share Of Indian Entity: Delhi ITAT

While observing that the Assessee submitted a valid Tax Residency Certificate (TRC) which is certainly statutory evidence, the Delhi ITAT granted India-Singapore DTAA benefit under Article 13(4) on long term capital gains on sale of share of an Indian company. The Tribunal emphasized that the burden is on the Revenue Department to establish that the entity has been formed and operated...

Madras High Court Sets Aside Order Passed Against A Dead Person

The Madras High Court sets aside an order passed by the Deputy State Tax Officer against a dead person. The Bench of Justice Krishnan Ramasamy observed that “the impugned order was passed by the Deputy State Tax Officer/respondent against a dead person, who was passed away on 21.11.2019. In such case, the impugned order is liable to be set aside.” Facts of...

Past Tax Claims Against Corporate Debtor Stands Extinguished Consequent To Approval Of Resolution Plan Under IBC: Bombay HC

Since upon the completion of Corporate Insolvency Resolution Process (CIRP), the Assessee has changed hands and commenced under a new ownership and management, the Bombay High Court held that tax proceedings pertain to period prior to the CIRP, and consequent to the approval of the resolution plan, the tax proceedings stand extinguished. The Division Bench of Justice G. S....

Payments Made During Investigation Without SCN Do Not Constitute Payments Against Demand: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made by the assessee during an investigation, without any Show Cause Notice, cannot be considered as payment against a demand raised by the Department without even going into the merits of the nature of demand. The Bench of Dr. Rachna Gupta (Judicial Member) has observed...

Reworking Value Of Investments Held In Subsidiary By Applying DCF Method Is Permitted, Once Correctness Of Valuation Stands Proved: Delhi ITAT

Referring to Explanation to Section 56(2)(viib), the Delhi ITAT held that the assessee is entitled to suitably modify the Net Asset Value (NAV) as long as the NAV is capable of being substituted by some proof or competent evidence. Further, finding that the assessee has produced the valuation report as well as the market valuation of Hotel Residence AG Switzerland in German...

Unaccounted Money Brought In The Garb Of Unsecured Loan: Mumbai ITAT Confirms Addition U/s 68

Finding that loans were nothing but accommodation entries and the repayment is also nothing but return of accommodation entries, the Mumbai ITAT held that the money which has been brought in the garb of unsecured loan is nothing but the unaccounted money of the assessee, and deserves to be added u/s 68. Section 68 of Income Tax Act aims to ensure individuals and...

Estimation Report By DVO Alone Can't Form Basis For Reopening Completed Assessment: Delhi High Court

The Delhi High Court held that the sole ground for re-opening of assessment u/s 148 by AO being the report/estimate of the Valuation Officer is unsustainable. Proximity of the reasons with the belief of escapement of income is the determinative factor for re-opening of the assessment, as absence of reasons would obviate the possibility of a belief and would bring the case in the realm...

ITO's Personal Opinion In Prior Assessment Not A Valid “Reason To Believe” For Reopening Assessment: Punjab & Haryana High Court

The Punjab and Haryana High Court while quashing the reopening proceedings initiated under Section 148 of the Income Tax Act stated that merely on account of there being an error found based on a personal opinion of the Income Tax Officer in relation to the earlier assessment, cannot be a reason to believe for initiating reassessment. The Bench consists of Justices Sanjeev Prakash...