Remuneration Paid To Whole-Time Directors As Commission Based On Profit Doesn't Attract Service Tax: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that remuneration paid to whole-time directors as commission based on profit doesn't attract service tax.The bench of Sulekha Beevi C.S. (Judicial Member) and C.L. Mahar (Technical Member) has observed that the whole-time director is essentially an employee of the company, and accordingly,...

Issuance Of Summons Is Not Initiation Of Proceedings Referable To Under Section 6(2)(B) Of CGST Act: Rajasthan High Court

The Rajasthan High Court, Jaipur Bench, has held that issuance of summons is not initiation of proceedings referable to under Section 6(2)(b) of the CGST Act.The bench of Justice Pankaj Bhandari and Justice Shubha Mehta has observed that the scope of Section 6(2)(b) and Section 70 of the CGST Act is different and distinct, as the former deals with any proceedings on subject matter, whereas...

LTCG Tax Exemption Can't Be Denied Due To An Error Made By The Builder In Assigning Apartment: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that tax benefits cannot be denied to taxpayers due to an error made by the builder in assigning the apartment.The bench of Rahul Chaudhary (Judicial Member) and Om Prakash Kant (Accountant Member) has observed that the appellant or taxpayer cannot be penalized for the mistake committed by the developer or seller by allotting...

Income Tax Exemptions Available To ST Individuals Can't Be Extended To Partnership Firm: ITAT

The Guwahati Bench of the Income Tax Appellate Tribunal (ITAT) has held that the exemption under Section 10(26) of the Income Tax Act has been specifically conferred on members of the Scheduled Tribe residing in the specified area. The exemption cannot be extended to another separate and distinct "person," that is, the partnership firm, though such a firm consists of the individual partners...

Abhisar Buildwell Judgment Can't Be Construed To Be An Authority To Override Mandate Of Section 245-I: Delhi High Court

The Delhi High Court has held that the judgement of Abhisar Buildwell passed by the Supreme Court cannot be construed to be an authority to override the mandate of Section 245-I of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that in terms of the Supreme Court's judgment in the case of Abhisar Buildwell, the completed or...

Categorising Body Massager As Adult Sex Toy, Officer's Imagination, Not Covered Under 'Prohibited Goods': Bombay High Court

The Bombay High Court has held that categorising the body massager as an adult sex toy was purely the officer's imagination.The bench of Justice G. S. Kulkarni and Justice Kishore C. Sant has upheld the CESTAT's ruling, in which it was held that the view taken by the Commissioner was purely the Commissioner's imagination to categorise the item not as a body massager but as an adult sex toy....

Average Income Is To Be Considered If Variations Found In Income Tax Returns Filed By Claimant: Karnataka High Court

The Karnataka High Court has held that if income tax returns are available the same should be considered as best a piece of evidence and if variations are found in the income tax returns, considered for different assessment years, it would be appropriate to consider the average income of three assessment years to arrive at the annual stable income of the claimant seeking compensation under...

Variance In Allowable Deductions Doesn't Amount To Furnishing Inaccurate Particulars Of Income: Bombay High Court

The Bombay High Court has held that the assessee cannot be said to furnish inaccurate particulars of income merely for variance in allowable deductions.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the ITAT was of the view and rightly so that the assessee had made a bona fide claim under Section 36(1)(viii), as such deductions claimed are linked to the...

In Absence Of Service Recipient And Service Provided Service Tax Can't Be Demanded And Confirmed: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that in the absence of such service recipient and service provided service tax cannot be demanded and confirmed.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that it is the burden cast upon the department to show that the assessee has recovered the cost...

Excise Duty Not Payable On Waste And Scrap Of Packing Material Of Inputs If Travels Beyond Show-Cause Notice: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on waste and scrap packing material of inputs, and demand is not sustainable if it has travelled beyond the show-cause notice.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that no demand is raised on the Appellant...

Govt. Notifies Lower Royalty & FTS Tax-Rate In India-Spain DTAA

The government has notified the lower tax rates on royalties and fees for technical services (FTS) in the India-Spain double taxation avoidance agreement (DTAA).As per the notification, royalties and fees for technical services may also be taxed in the contracting state in which they arise, according to the law of that state, but if the recipient is the beneficial owner of the royalties or...

Failure Of AO To Take Concrete Steps To Ascertain The Genuineness And Creditworthiness Of Transactions: Delhi High Court

The Delhi High Court has held that the AO has not taken any concrete steps to ascertain the genuineness and creditworthiness of the transactions.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that clause (a) of Explanation 2 of Section 263 of the Act introduces a deeming fiction to the effect that the order passed by the AO shall be considered erroneous...