Tax
Grant U/s 80G Can't Be Rejected Merely On Procedural Lapse By Making Application U/s 80G(5)(Ii) Inadvertently Instead Of U/s 80G(5)(Iii): Ahmedabad ITAT
Referring to the decision of the Calcutta Bench in ITA No. 994/Kol/2023, the Ahmedabad ITAT reiterated that the assessee, who has been granted provisional registration, is eligible to apply for final registration irrespective of the fact that the assessee had already commenced its activity even prior to the date of grant of provisional approval. The ITAT explained that Section 80G of...
Capital Gain Tax Not Payable On Transfer Of Shares By Way Of Gift: Bombay High Court
The Bombay High Court has held that capital gain tax is not payable on the transfer of shares by way of gift.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that Section 45 of the Income Tax Act provides that any profits or gains arising from the transfer of a capital asset have to be considered by the assessee. Only when there is consideration received can the profit...
Supply Of Disposable Paper Cup Attracts 18% GST: AAR
The West Bengal Authority of Advance Ruling (AAR) has held that the supply of disposable paper cups attracts 18% GST.The bench of Tanisha Dutta and Joyjit Banik have observed that a disposable paper cup is made out of paper and often coated with plastic or wax to prevent liquid from leaking out or soaking through the paper. It may be made of recycled paper. It is known that paper cups consist...
Opting To Pay Tax At Lower Rate By Not Availing ITC Forfeits Right To Avail Input Tax Credit: AAR
The Telangana Authority of Advance Ruling (AAR) has held that the applicant by opting to pay tax at a lower rate by not availing input tax credit on the goods and services used in his supplies has forfeited his right to avail input tax credit.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the supply of car was made in the month of July 2023 when the applicant was...
Services Rendered By Microsoft India To Overseas Entity Qualify To Be Exports, No Service Tax Payable: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that services rendered by Microsoft India to overseas entities qualify to be 'exports'.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that services provided to M/s. Microsoft Operations Singapore amount to the export of services and hence are not liable...
18% GST Payable On Amount Received From Mercedes Benz India Towards Reimbursement Of “Loss On Sale Of Demo Car”: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on the amount received by the applicant from Mercedes-Benz India towards reimbursement of “Loss on Sale of Demo Car.”.The bench of Tanisha Dutta and Joyjit Banik has observed that the amount received by the applicant from Mercedes-Benz India towards reimbursement of “Loss on Sale of Demo Car” shall...
Income Tax Dept. To Allow Personal Hearing Through National Faceless Assessment Centre On Assessee's Request: Delhi High Court
The Delhi High Court has held that the income tax department should allow personal hearings through the national faceless assessment centre on the assessee's request.The bench of Justice Vibhu Bakhru and Justice Tara Vitasta Ganju has observed that, as per Section 144B(6)(viii) of the Income Tax Act, 1961, where a request for personal hearing is received, the Income Tax Authority of the...
ITAT Cases Weekly Round-Up: 28 April To 4 May 2024
Payments Received Towards Interconnectivity Utility Charges From Indian Customers Is Not Royalty: ITAT Case Title: M/s. KDDI Corporation Versus The Deputy Commissioner of Income Tax (International Taxation) The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian...
Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.The bench of G.S. Pannu (Vice President) and Astha...
Taxpayer Has Duly Established Existence Of Subscriber Companies: Kolkata ITAT Deletes Addition Made Towards Share Premium U/s 68
Referring to the decision of Bombay High court in the case of PCIT v. Paradise Inland Shipping Pvt Ltd. [2017] 84 taxmann.com 58 (Pan), the Kolkata ITAT deleted the addition made towards share capital and share premium u/s. 68 of the Income tax Act. The ITAT explained that when the nature and source of the amount so invested is known, it cannot be said to undisclosed income, so as...
Punjab And Haryana High Court Stays CBIC-Circular Concerning Taxability Of Corporate Guarantees
The Punjab and Haryana High Court has stayed the circular issued by the Central Board of Indirect Taxes and Customs (CBIC) concerning the taxability of corporate guarantees.The bench of Justice Sanjeev Prakash Sharma and Justice Sukhvinder Kaur, while issuing the notice, stayed CBIC Circular dated October 27, 2023, to the extent that it clarifies that the provision of corporate guarantee...