Income Received By UK Telecom Company From Indian Telecom Company For Rendering Roaming Services To Customers Abroad Is Not ‘Royalty’: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that income received by a UK telecom company from an Indian telecom company for rendering roaming services to customers abroad is not ‘royalty’.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that payments made to a non-resident company for providing standard bandwidth services...

Burden To Prove Concession Rightly Claimed Upon Assesee In Original Proceedings, Burden Shifts Upon Department In Reassessment Proceedings: Allahabad High Court

The Allahabad High Court has recently held that the burden to prove that concession has been rightly claimed is upon the assesee in the original proceedings. However, the Court held that in reassessment proceedings, burden shifts upon the Department to prove that assesee had wrongly claimed concession.Distinguishing the decision of Allahabad High Court in Star Paper Mills Limited Vs....

Statutory Appeal Period Under Customs Act, Appellate Authority Has No Power To Condone Delay: Delhi High Court

The Delhi High Court has held that the appellate authority has no power to allow the appeal to be presented beyond the period of 30 days.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has relied on the decision of the Supreme Court in the case of Singh Enterprises vs. Commissioner of Central Excise, Jamshedpur & Ors., in which it was held that the legislature intended...

Bakery Shortening And Vanaspati Are As Same: Allahabad High Court Applies Common Parlance Test

The Allahabad High Court has applied the Common Parlance Test and held that bakery shortening and vanaspati are the same.The bench of Justice Piyush Agrawal has observed that on the test of 'Common Parlance' Notification No. 37/2003 dated April 30, 2003, issued by the Government of India is very important and relevant, as in the Notification the Union Government has very categorically...

‘Kurkure’ And ‘Cheetos’ Classifiable As ‘Namkeen’, Not ‘Snacks’ Under VAT Act: Rajasthan High Court

The Rajasthan High Court has held that ‘Kurkure’ and ‘Cheetos’ are classifiable as ‘namkeen’, not 'snacks' under the VAT Act.The bench of Justice Sameer Jain observed that the department neither sought any technical or expert opinion nor brought any evidence on record to prove their point. It appears that the Tax Board merely relied on a basic Google search result wherein the...

‘Reasons Are Heart And Soul Of Any Judicial And Administrative Order’: Allahabad HC Quashes Unreasoned Order Of GST Registration Cancellation

While setting aside order cancelling GST registration of assesee on grounds that it was unreasoned, the Allahabad High Court has held that ‘reasons are heart and soul’ of any order. In absence of reasons assigned, the order is vitiated in law.Petitioner’s GST registration was cancelled by the Assistant Commissioner, Sector 25, State Tax, Kanpur Nagar. Appeal preferred by the petitioner...

Tax Not Payable On Interest Accrued On FD Which Is Subject To CBI’s Prohibitory Order: ITAT

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that tax is not payable on interest accrued on FD, which is subject to the CBI’s prohibitory order.The bench of Madhumita Roy (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the lower authorities have committed an error in bringing the interest accrued on FD, which is subject to a...

Customs Duty - Undervaluation Must Be Proved By Evidence Of Prices Of Contemporaneous Imports; Else Benefit Of Doubt Goes To Importer : Supreme Court

The Supreme Court has recently highlighted that the transaction value (the price actually paid or payable for the goods) should be the primary basis for customs valuation and that other valuation methods be invoked sequentially only when there is evidence to doubt the correctness of the declared transaction value. A division bench of Justice B.V Nagarathna and Justice Ujjal Bhuyan added that...

Calcutta High Court Upholds Constitutional Validity Of Explanation to Section 10AA(1) Inserted By Finance Act 2017

The Calcutta High Court has upheld the constitutional validity of the explanation to Section 10AA(1) of the Income Tax Act inserted by the Finance Act 2017.The bench of Justice Md. Nizamuddin has observed that the principle of legitimate expectation is not applicable to the case of the petitioner, and the explanation after Subsection (1) of Section 10AA of the Income Tax Act, 1961, inserted...

CBDT Notifies Income Tax Exe​​mption To Punjab Nurses Registration Council

The Central board of Direct Taxes (CBDT) has notified the income tax exe​​mption to Punjab Nurses Registration Council under section 10 (46) of the Income-tax Act, 1961.The Punjab Nurses Registration Council which is a council constituted by the Government of Punjab. The income tax exemption shall be allowed on fees from Nursing students and affiliated nursing institutions; and...

No Basis Of Allocation Or Actual Cost Incurred For Affiliates: ITAT Confirms Additions For Cost Reimbursement As FTS

The Mumbai Bench of Income Tax Appellate Tribunal, while confirming the additions for cost reimbursement as fees for technical services (FTS), noted that the assessee had no basis of allocation or actual cost incurred for affiliates.The bench of Aby T. Varkey (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the assessee has entered into a support services agreement...

Activity Of Fitting Power Lens Into Spectacle Frames Does Not Amount To Manufacture, Excise Duty Demand Not Sustainable: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of fitting power lenses into frames does not amount to manufacture, and the demand for excise duty is not sustainable.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that post-manufacture of the spectacle frames and lenses, the...