Tax
Even If Organisation Is Not Entitled To Benefit U/s 11, It Is Entitled To Claim Expenses Incurred During Year Against Gross Receipts: Kolkata ITAT
On perusal of the audited balance sheet and profit and loss account, the Kolkata ITAT opined that if the assessee is given deduction of expenditure incurred during the year, which it is entitled to, then there will be a net loss against gross receipts during the year, which interalia included receipt of membership and donation from members.The Bench of Dr. Manish Borad (Accountant Member)...
Ahmedabad ITAT Quashes Reopening In Absence Of Tangible Material With AO To Form Reason To Believe Escaped Assessment
The Ahmedabad ITAT quashed reopening proceedings finding that there was no tangible material available with the AO to form a reason to believe that the income of assessee has escaped assessment.The Bench of Waseem Ahmed (Accountant Member) and Siddhartha Nautiyal (Judicial Member) observed that “simply that Shri Prakash bhai Ishwar bhai Changela and the assessee are maintaining the bank...
No GST Payable By Fair Price Shop Selling Kerosene Oil To Ration-Card Holders: AAAR
The West Bengal Appellate Authority of Advance Ruling (AAAR) has held that no GST is payable by fair-priced shops selling kerosene oil to ration-card holders.The bench of Navneet Goel and Devi Prasad Karanam, while upholding AAR's ruling, has observed that the S.K. oil shop of the dealer under the Kerosene Control Order, 1968, is also a "fair price shop" as commodities, i.e., S. K. oil under...
“Commission” Is distinguishable From “Incentive”, No Service Tax Can Be Levied On “Incentive”: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be levied on “incentives.”.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the amount received as “commission” is distinguishable from the amount received as „incentive for the simple reason that “commission” has...
Printing Activity Does Not Amount To 'Manufacture', Excise Duty Demand Unsustainable: CESTAT
The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of printing done by the appellant does not amount to 'manufacture', so the demand for excise duty, interest, and the penalties imposed cannot be sustained. The bench of Sulekha Beevi. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the activity of...
Taxpayer Failed To Duly Substantiate Question Of Identity & Source Of Fund: Kolkata ITAT Remits Matter For Re-adjudication
Finding that the issue in question has been agitated for the first time before the Bench and the same has been covered by a previous decision under homogenous facts, the Kolkata ITAT remitted back the matter to the file of AO for further adjudication de-novo both in legal as well as factual aspect of the assessee.Referring to the decision of Delhi High Court in the case of CIT vs....
Additions Based On Altogether Different Issue On Which No Reasons Were Recorded, Dents Proceedings U/s 147 / 148: Mumbai ITAT
On finding that addition which is not based on the reasons for reopening is un-sustainable, the Mumbai ITAT deleted the addition made by AO u/s 69C of the Income Tax Act, 1961.The Bench of the ITAT comprising of Narender Kumar Choudhry (Judicial Member) and Padmavathy S. (Accountant Member) observed that, “the return of income was assessed under section 143(3) of the Act and the additions...
AO Must Follow Mandate Of Sec 50C If Values Adopted By Stamp Value Authorities Exceeds FMV Of Property: Mumbai ITAT
On finding that AO has not computed capital gains by adopting the stamp duty value, the Mumbai ITAT restored the matter back to the file of the AO to follow the mandate of provision u/s 50(C)(2) of the Income Tax Act, 1961, and decide the issue afresh after giving the assessee an adequate opportunity of hearing.The Bench of the ITAT comprising of Prashant Maharishi (Judicial Member) and...
ITO Can't Retain Amount Deposited By Taxpayer Without Framing Final Assessment Order During Period Of Stay: Delhi High Court
The Delhi High Court allowed assessee's petition seeking refund of amounts which was deposited towards part payment of demand raised in pursuance of assessment order for AYs 2008-09 and 2009-10.The Division Bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav observed that “Since the remit ordered by the ITAT, admittedly, was rendered prior to 1 June 2016, it...
Services Provided By Irish Company To Its Indian Counterpart Not Technical Services: Delhi High Court Quashes Order Denying Nil/Lower TDS certificate
The Delhi High Court has quashed the order denying Nil or lower TDS certificates and held that the services provided by the assessee, Irish Company, to its Indian counterpart were not technical services.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that though the power to grant a TDS certificate was merely a preliminary examination of the issue...
Warranty Costs Are Not Part Of AMP Expenditure, Clarifies Bangalore ITAT
The Bangalore ITAT ruled on treatment of share-based compensation (SBC), depreciation & amortization as operating expense and inclusion of delivery charges & warranty expenses in AMP expenditure.The Bench comprising George George K (Vice President) and Laxmi Prasad Sahu (Accountant Member) observed that “these expenditure cannot be regarded as having been incurred for the purpose...
Generation Of Surplus From Year To Year Cannot Be Bar For Trust In Seeking Section 10 (23C) (vi) Exemption: Rajasthan High Court
The Rajasthan High Court has held that the assessee is being run as a trust solely for educational purposes, thus seeking the exemption under Section 10(23C)(vi) of the Income Tax Act of 1961, and the generation of surplus from year to year cannot be a bar in seeking such an exemption under the provision of law.The bench of Justice Pushpendra Singh Bhati and Justice Munnuri Laxman has...