ITAT Confirms Addition Of Expenses Incurred On Brand Reminders, Customer Gifts For Doctor

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has confirmed the addition towards expenses incurred on brand reminders, customer gifts, and the purchase of medical books and journals for doctors.The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has relied on the decision of the Supreme Court in the case of Apex Laboratories, in which it was...

Service Tax Rebate Can Be Allowed Subject To Receipt Convertible Foreign Exchange Against Each Invoice: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has observed that unless it is established that against every invoice convertible foreign exchange has been received, the rebate of service tax paid in respect of that invoice cannot be allowed to the exporter.The bench of Dr. Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has...

ALP Of The ESOP Expenses Cannot Be Taken As ‘Nil’: ITAT

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the arm's-length price (ALP) of the employee stock option plan (ESOP) expenses cannot be taken as ‘Nil’.The bench of Rahul Chaudhary (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the transfer pricing addition of INR 26,53,078 is, therefore, set aside, and the TPO/Assessing Officer is...

Bombay High Court Quashes Reassessment Against Knight Riders Sports

The Bombay High Court has quashed the reassessment against Knight Riders Sport and held that a change of opinion does not constitute justification to believe income chargeable to tax escaped assessment.The bench of Justice K. R. Shriram and Justice Kamal Khata has observed that there is a change of opinion because once a query has been raised during the assessment and has been answered...

Once Sanction Is Given To A Particular Authority Wilful Tax Evasion Prosecution Has To Be Launched By Him Alone: Telangana High Court

The Telangana High Court has overturned the assessee's wilful tax evasion prosecution before the Special Judge for Economic Offences.The bench of Justice G. Anupama Chakravarthy has observed that once the sanction has been given to a particular authority, i.e., the Deputy Director of Income Tax, the prosecution has to be launched by him alone and not by the Assistant Director of Income Tax,...

Redemption Fine And Customs Duty Not Required To Be Paid When Goods Are Allowed To Be Re-Exported: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that when the goods are allowed to be re-exported, neither the redemption fine nor duty is required to be paid. At the same time, the penalty is also not to be imposed on the importers.The bench of Anil G. Shakkarwar (a technical member) allowed the six appeals and observed that a penalty to the extent...

CESTAT Quashes Service Tax Demand On Cost Towards Advertisements For Clients In Newspapers And Magazines

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on costs towards advertisements for clients in newspapers and magazines.The bench of Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that the service provider should be providing more than one service, and when one of the services...

CESTAT Quashes Service Tax Demand On Amount Received For Vessels To Dredging Corporation

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand on the amount received for the charter or hire of vessels by the Dredging Corporation of India (DCI).The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the charter or hire of vessels would at best fall under Supply...

Punjab Cricket Association Not Liable To Pay Service Tax Under The Head “Club or Association Service”: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Punjab Cricket Association (PCA) is not liable to pay service tax under the heading “club or association service”.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the department has not adduced any evidence to demonstrate that the...

EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday

The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that since the due date fell on a date that was a national holiday, the deposit could have been made by the respondent or assessee only on the date that followed...

Tax Cases Weekly Round-Up: 24 To 30 September, 2023

Supreme Court Material Disclosed To Income Tax Settlement Commission Needn't Be Something Which Wasn't Discovered By Assessing Officer : Supreme Court Case Title: KOTAK MAHINDRA BANK LIMITED vs COMMISSIONER OF INCOME TAX BANGALORE AND ANR Citation : 2023 LiveLaw (SC) 822 The Supreme Court has ruled that Section 245H of the Income Tax Act, 1961, which empowers...

Assessee Resorts To Colourable Devices, Sham Transactions To Defraud Dept: ITAT

The Panaji Bench of Income Tax Appellate Tribunal (ITAT) has held that the assessee had resorted to colourable devices and sham transactions in order to defraud the Department by camouflaging its unaccounted income so that ultimately, the tax could be evaded.The bench of Partha Sarathi Chaudhury (Judicial Member) and Inturi Rama Rao (Accountant Member) has observed that tax planning is...