Not Permissible For TPO To Engage In Restructuring Of Transaction: Delhi High Court

The Delhi High Court has held that it is not permissible for the Transfer Pricing Officer (TPO) to engage in the restructuring of a transaction.The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that it would also not be permissible for the TPO to engage in the restructuring of a transaction unless the economic substance of the transaction differed from its form, and...

Non-Communication Of Reassessment And Demand Notice Within Time: Manipur High Court Quashes Assessment

The Manipur High Court has held that the reassessment made by the Income Tax Officer without communicating the order of reassessment and the demand notice of the reassessment within time cannot be treated as a valid assessment.The bench of Justice Ahanthembimol Singh has observed that the two reassessment notices under Section 148 were served in the months of December 2005 and March 2006....

State Not Liable To Collect Tax At Source While Giving Contractors Permit To Vend Liquor At Fixed Retail Price : Supreme Court

The Supreme Court recently held that any vendor who buys liquor from state manufacturers without obtaining it through auction and sells in retail at a fixed price would be excluded from the definition of 'buyer' under Section 206C of the Income Tax Act. Such a trade would be exempted from TCS (Tax Collected at Source)."If the buyer is a public sector company or it has obtained the goods...

Indirect Tax Weekly Round-Up: 14 To 20 July 2024

Supreme CourtChewing Tobacco Packed In High-Density Polyethylene Bags Are 'Wholesale Package'; Cannot Be Taxed As Retail Product Under Excise Act : Supreme CourtCase Details: Commissioner of Central Excise, Jaipur -II v. M/s Miraj Products Pvt. Ltd. Citation : 2024 LiveLaw (SC) 470The Supreme Court recently held that pouches of chewing tobacco packed in High-Density Polyethylene (HDPE) bags...

Direct Tax Weekly Round-Up: 14 To 20 July 2024

Bombay High CourtJAO Cease To Have Jurisdiction To Issue Reassessment Notice Outside Faceless Assessment: Bombay High CourtCase Title: Royal Bitumen Private Limited, Mumbai Vs. Assistant Commissioner of Income-TaxThe Bombay High Court has held that the Jurisdictional Assessing Officer (JAO) would cease to have jurisdiction to issue any notice under Section 148A(b) and to take further...

Payments For Certification Services Rendered By Foreign Entities Not Taxable In India In Absence Of Fixed Place Of Business In India: Ahmedabad ITAT

The Ahmedabad ITAT held that the services rendered for product certification, which include evaluating technical quality and issuing certificates, do not fall under the definition of Fees for Technical Services as per Section 9(1)(vii) of the Act. Section 9(1)(vii) of Income Tax Act states that any income that is deemed to accrue or arise in India, even if the income is earned by...

Cement Manufacturer Entitled To Cenvat Credit On Welding Electrodes: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cement manufacturers are entitled to cenvat credit on welding electrodes as inputs used in the manufacture of final products, namely cement and clinker.The bench of Binu Tamta (Judicial Member) has observed that as per sub-rule 4 of Rule 57-A of the Central Excise Rules, 1944, the credit of...

Co-Owners Holding Immovable Property To Be Treated As Independent Service Provider For Service Tax Exemption: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that co-owners holding immovable property should be treated as independent service providers for the purpose of availing service tax exemption.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed the decision in the case of Sarojben Khushalchand versus Commissioner...

JAO Not Empowered To Issue Section 148A(b) Notice Under Faceless Assessment: Bombay High Court

The Bombay High Court has held that it was not permissible for the Jurisdictional Assessing Officer (JAO) to issue a notice under Section 148A(b), as the same would amount to a breach of the provisions of Section 151A of the Income Tax Act.The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan has observed that the notice was invalid and bad in law being issued by the JAO as...

AO Must Pass Draft Assessment If He Proposes Variation In Returned Income: Chennai ITAT Explains Scope Of Sec 144C

The Chennai ITAT held that the AO must pass a draft assessment order to the eligible assessee in case he proposes to make any variation in the income or loss returned which is prejudicial to the interest of such assessee. Section 144C of the Income Tax Act provides that in case of certain eligible assessees, viz., foreign companies and any person in whose case transfer...

Section 148A(d) Order Passed Without Section 151 Sanction Is Illegal: Bombay High Court

The Bombay High Court has held that if an order is passed under Section 148A(d) of the Income Tax Act in the absence of an appropriate sanction in terms of the provisions of Section 151 of the Income Tax Act, the order and the consequent notice under Section 148 would be required to be declared illegal.The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan has observed that...

Investment Allowance Available On Exchange Rate Fluctuation: Bombay High Court

The Bombay High Court has held that investment allowance is available on exchange rate fluctuations.The bench of Justice G. S. Kulkarni and Justice Somasekhar Sundaresan has relied on the decision of the Supreme Court in the case of Commissioner of Income-Tax vs. Ambika Mills Ltd., in which it was held that investment allowance, consequent to exchange rate fluctuation, would be...