Tax
Capital Gain Exemption Not Available For A Residential House Purchased Abroad After April 1, 2015: ITAT
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that capital gain exemption is not available for a residential house purchased abroad after April 1, 2015.The bench of N. K. Choudhry (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that for the period prior to AY 2015-16 or to the introduction of the words “in India” in Section 54 of the Act...
Payment To UK-Based Company For Preparing Candidate Written Report By CAE Simulation Training Is Not A Royalty: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that payment to a UK-based company for preparing candidate written reports by CAE Simulation Training is not a royalty.The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the candidate’s report is delivered to the assessee electronically, which is in the nature of a copyrighted product,...
‘Non-Cooperative Attitude’ Cannot Be The Basis Of Imposing Penalty: ITAT
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that a ‘non-cooperative attitude’ as such in itself cannot be the basis for imposing penalties without specifically bringing on record the specific notices and their specific non-compliances.The bench of Anubha V Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that unless it is established in...
CBDT Allows Income Tax Exemption To Uttar Pradesh Expressways Industrial Development Authority
The Central Board of Direct Taxes has granted the income tax exemption to ‘Uttar Pradesh Expressways Industrial Development Authority’ under section 10(46) of the Income Tax Act.The Uttar Pradesh Expressways Industrial Development Authority is an Authority constituted by the State government of Uttar Pradesh. The income tax exemption shall be applicable on the income arising out of...
TNMM Should Be Applied In Respect Of International Transaction Of `Sale Of Finished Goods’: ITAT
The Pune bench of the Income Tax Appellate Tribunal (ITAT) has held that the Transactional Net Margin Method (TNMM) should be applied in respect of international transactions of `Sale of finished goods’.The bench of R.S. Syal (Vice President) and S.S. Viswanethra Ravi (Judicial Member) has observed that, in view of huge quantitative differences, one cannot say that the price charged for...
Employee Stock Option Expenses Revenue In Nature: ITAT Deletes Disallowance Against Cleartrip
The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that employee stock option expenses are revenue in nature.The bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) has directed the assessing officer to delete the disallowance of employee stock option expenditure of Rs. 6,064,232 against Cleartrip.The appellant/assessee has debited a sum...
Physician Sample Sold To Distributor For Free Distribution To Doctors Covered Under Section 4(i)(a) Of Central Excise Act: CESTAT
The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that physician samples sold to distributors for free distribution to doctors are covered under Section 4(i)(a) of the Central Excise Act.The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) observed that the appellant has manufactured and cleared the goods, i.e., the...
GST - Input Tax Credit Cannot Be Denied To Purchaser Merely Because Seller Didn't Record Transaction In GSTR-2A Form: Kerala High Court
The Kerala High Court recently held that Input Tax Credit (ITC) cannot be denied to a purchaser merely on ground of non-reflection of the transaction in the GSTR-2A Form. Remanding the matter back to the Assessing Officer to give opportunity to the purchaser who is the petitioner herein, Justice Dinesh Kumar Singh observed:"If on examination of the evidence submitted by the petitioner,...
Bombay High Court Quashes Re-Assessment Order Based On Change Of Opinion Without Any Tangible New Information
The Bombay High Court has quashed the reassessment order based on a change of opinion without surfacing any tangible new information.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that the petitioner has fully and truly disclosed all material facts necessary for the purpose of assessment. The AO issued the first assessment order after carefully scrutinising the...
CESTAT Directs Excise Duty Refund To IOCL Paid Under Protest
The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the excise duty refund to Indian Oil Corporation Ltd. (IOCL) paid under protest.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant, IOCL, had paid the duty on the behest of the audit objection, which itself is a payment of duty under...
CBDT Extends Due Date For Educational & Charitable Institution Audit And Form ITR-7 For The Assessment Year 2023-24
The Central Board of Direct Taxes (CBDT) has extended the due date for filing of Form 10B/10BB and Form ITR-7 for the Assessment Year 2023-24.The due date of furnishing Audit reports in Form 10B/Form 10BB for the Financial Year 2022-23, which is 30.09.2023 has now been extended by the CBDT to 31.10.2023.Form 10B is associated with charitable institutions and religious trusts operating...
Tax Cases Weekly Round-Up: 10 September To 16 September, 2023
Delhi High Court Overlooking Assesssee’s Reply Demonstrates Non-Application Of Mind By The AO: Delhi High Court Case Title: Aphv India Investco. Private Limited Versus ACIT The Delhi High Court has quashed the draft assessment orders, final assessment orders, and consequential demand on the grounds that the assessing officer inadvertently overlooked the email reply of...