Tax
“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...
Foreign-AEs Being Least Complex Entities Can Be Accepted As Tested Party, Confirms Kolkata ITAT
The Kolkata ITAT accepted foreign AE as tested party, and deleted the ALP adjustments qua export of software services and receipt of account management charges in case of assessee, engaged in providing a wide range of IT solutions.The Bench comprising Rajpal Yadav (Vice President) and Girish Agrawal (Accountant Member) observed that “Co-ordinate bench, ITAT, Kolkata also considered...
AO Competent To Invoke Section 154 Jurisdiction If Glaring Mistake Of Fact/Law Is Committed While Passing Assessment Order: Madras High Court
The Madras High Court has held that the Assessing Officer is not incompetent to invoke the jurisdiction under Section 154 of the Income Tax Act, 1961, if such officer had committed a glaring mistake of fact or law while passing the assessment order.The bench of Justice C. Saravanan has observed that the meaning of the expression “error apparent on the face of record” is wider than...
Foreign AE Can Be Accepted As Tested Party: Mumbai ITAT Deletes ALP Adjustment Qua Export Of Formulations
While deciding on ALP adjustments qua export of goods to AEs and guarantee commission in case of a pharma company, engaged in manufacturing and marketing of formulations in India, the Mumbai ITAT accepted foreign AE as tested party.The Bench comprising B.R Baskaran (Accountant Member) and Rahul Chaudhary (Judicial Member) observed that “so far the assessee herein is concerned and qua...