Tax
Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024
Delhi High CourtOnce Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment ProceedingsCase Title: Progress Rail Locomotive Inc. (Formerly Electro Motive Diesel Inc.) Versus Deputy Commissioner Of Income-TaxCitation: 2024 LiveLaw (Del) 671The Delhi High Court, while quashing the reassessment...
Indirect Tax Cases Weekly Round-Up: 02 To 08 June 2024
Kerala High CourtClaim For Sales Tax Exemption In Respect Of Transit Sales To Be Justified By Showing Sale As Having Occurred In Transit: Kerala High CourtCitation: 2024 LiveLaw (Ker) 336Case Title: M/S.I.T.I.LTD Versus State Of KeralaThe Kerala High Court has held that a claim for exemption in respect of transit sales must be justified by showing the sale as having occurred in transit.Time...
Rotary Car Parking System Is Civil Structure, GST ITC Not Admissible: AAR
The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that input tax credit (ITC) is not admissible on rotary car parking systems.The bench of D. Jayapriya and A. Valli observed that the Rotary car parking system is an infrastructure with the aim of catering to the need for greater urban density and compactness in cities and to make better use of scarce land. The Rotary car parking...
Infant Food Products Containing Milk And Other Ingredients Subject To 18% GST: AAR
The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.The bench of Mahipal Singh and Mahesh Kumar Gowla has observed that, as per Chapter 19, milk products are one of the constituents of the final product, whereas Chapter 4 deals with milk products only. The principle or dominant item of the applicant...
Delhi High Court Quashes Reassessment Notice Issued After 10 Years
The Delhi High Court has quashed the reassessment notice which was issued beyond 10 years.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that any action for reassessment pertaining to an AY prior to April 1, 2021, can be sustained only if it is compliant with the timeframes specified under Section 149(1)(b), Section 153A, or Section 153C, as the case...
18% GST Applicable On ZlD Treated Water: AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on Zero Liquid Discharge (ZLD) treated water.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the water obtained from the Common Effluent Treatment Plant (CETP), which has further undergone the processes of ultrafiltration and reverse osmosis in the ZLD plant, has a small amount of...
5% GST Payable On Mix Mukhwas And Roasted Til & Ajwain: AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that both the products, Mix Mukhwas and Roasted Til and Ajwain, mainly comprise sesame seeds, with 60% of the first product and 97% of the second product. The process undertaken on the said seeds of cleaning,...
Time Limit To Avail ITC Is Till 30th November In Each Financial Year From Beginning Of GST Regime: Kerala High Court
The Kerala High Court has held that the time limit to avail ITC is November 30th in each financial year from the beginning of the GST regime.The bench of Justice Dinesh Kumar Singh has observed that prior to the amendment in Section 39 by the Finance Act 2022, the date for furnishing the return under Section 39 was September 30th. Considering the difficulties in the initial stage of...
Shed Of 500 Mtr. On Agricultural Land Can't Be Considered As Residential House, Section 54F Exemption Not Allowable: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has denied the exemption under Section 54F of the Income Tax Act on the 500-meter shed made on agricultural land that cannot be considered a residential house.The bench of Kul Bharat (Judicial Member) and B. R. R. Kumar (Accountant Member) has observed that the size of the residential house is not a criteria for claiming exemption...
Exemption Allowable On Donations Made By One Charitable Trust To Other Charitable Institutions For Temporary Period: Delhi High Court
The Delhi High Court has held that exemption is allowable on donations made by one charitable trust to other charitable institutions for a temporary period.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that Section 11(3) of the Income Tax Act and the adverse consequences would have been attracted provided the incomes so accumulated were diverted for...
Non-Compete Fee To Be Treated As “Revenue Receipt” From 01.04.2003: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the non-competitive fee received by the assessee is treated as 'revenue receipt' in the hands of the assessee but only post-amendment, i.e., w.e.f. 01.04.2003.The bench of Kavitha Rajagopal (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the amendment to Section 28(va) of the Finance Act, 2002...
Under-Reporting And Misreporting Are Viewed As Separate And Distinct Misdemeanours; Delhi High Court Quashes Penalty
The Delhi High Court, while quashing the penalty, has held that both under-reporting and misreporting are viewed as separate and distinct misdemeanours.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that, as per Section 270A(1), a person would be liable to be considered to have under-reported their income if the contingencies spoken of in clauses (a) to...