VSV Scheme Is Non-Tax Benefit Applicable Even To Medium Enterprise, Clarifies Bombay High Court

While granting benefit under the 'Vivad Se Vishwas I-Relief for MSMEs Scheme' (VSV Scheme) to the Assessee, even when it was re-classified as 'not an MSME', the Bombay High Court held that even though the Petitioner was re-classified as “not an MSME” for a period of three years from May 09, 2023, it was entitled to avail of all non-tax benefits available to a Medium...

No Service Tax Payable On Clinical Trial On Drugs Supplied By Foreign Service Recipient: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that no service tax is payable on the activity of clinical trials on the drugs supplied by the foreign service recipient.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the activity of clinical trials on the drugs supplied by the foreign service...

Best Judgment Assessment Passed U/s 144 Without Giving Seven Day's Time To Taxpayer To Respond To SCN: Bombay HC Quashes Assessment

Finding that the AO has arbitrarily exercised jurisdiction by granting an extension of only two days to the Assessee in filing reply to the SCN, the Bombay High Court quashed the assessment and remanded the proceedings for passing fresh assessment order u/s 144 read with Section 144B. Tax assessment under Section 144 of the Income Tax Act allows Assessing Officers to assess tax...

Direction For Payment Of Mandatory Pre-deposit Doesn't Constitute 'Order' Within Meaning Of Sec 35G of Central Excise Act: Calcutta High Court

Taking note of Section 35G of the Central Excise Act, the Calcutta High Court clarified that an appeal shall lie to the High Court from “every order” passed in appeal by the Appellate Tribunal, though the maintainability thereof would be dependent on certain statutory limitations. As per Section 35G of Central Excise Act, 1944, an appeal shall lie to the High Court from every...

Failure Of Dept. To Frame Fresh Assessment Should Not Place Assessee In Disadvantageous Position: Delhi High Court

The Delhi High Court has held that the failure or inability of the department to frame a fresh assessment should not place the assessee in a more disadvantageous position than in what he would have been if a fresh assessment was made.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that since the department has failed to comply with the order of the Tribunal in...

SCN Lacks Reason For Proposing GST Registration Cancellation: Delhi High Court Revokes Cancellation

The Delhi High Court has revoked the GST registration cancellation on the grounds that the show cause notice lacked the reason for proposing to cancel the petitioner's GST registration. It merely stated that proceedings for cancellation of the GST registration have been initiated. The bench of Justice Vibhu Bakhru and Justice Sachin Datta has observed that the show cause notice stated...

Compensation To Discontinue Commodity Brokerage Business Chargeable To Income Tax: Kerala High Court

The Kerala High Court has held that the amount received by the assessee is under an agreement for not carrying out any activity in relation to any business that was carried on by the assessee; it would attract the provisions of Section 28(va)(a) of the Income Tax Act and make the receipt chargeable to income tax under the heading of “Profits and gains of business or profession.”.The bench...

Commission Deducted In Sale Invoice To Foreign Buyer Is Not Chargeable To Service Tax: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the commission deducted in the sale invoice of the appellant to their foreign buyer is not chargeable to service tax.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that there is no contract between the appellant and the foreign-based service provider,...

ITAT Allows Section 80IA(4)(i) Deduction On Developing, Operating And Maintaining Infrastructure Facilities

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80IA(4)(i) of the Income Tax Act on developing, operating, and maintaining the infrastructure facilities.The bench of Suchitra Kamble (Judicial Member) and Narendra Prasad Sinha (Accountant Member) has observed that the maintenance of the infrastructure in each of these 17 projects,...

Penalty Under Central Excise Rules Can Only Be Imposed On Natural Person And Not Against Artificial Entity: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the penalty under central excise rules can only be imposed on natural persons and not against artificial entities.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the department has filed an appeal only against M/s Richardson and Cruddas Limited, and no name...

Arranging Package Tour Can't Be Classified As Tour Operator Service, No Service Tax Payable: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is payable on arranging package tours.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that the service cannot be classified under Tour Operator Service as arranging the package tour does not involve all the activities that are required...

AO Not Empowered To Summarily Reject Section 197 Application: Patna High Court

The Patna High Court has held that a demand pending against the assessee would not clothe the Assessing Officer with the power to summarily reject an application under Section 197 of the Income Tax Act. The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that Section 197 only clothes the Assessing Officer with the power to satisfy himself that the total income...