Tax
TDS Not Required To Be Deducted At The Time Of Grant Of ESOP: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that TDS is not required to be deducted at the time of grant of an employee stock ownership plan (ESOP).The bench of Rahul Chaudhary (Judicial Member) and Prashant Maharishi (Accountant Member) has observed that the basic objective of TDS is to ‘pay tax as you earn, and the taxes are not required to be deducted at source...
Delhi High Court Directs VAT Dept. To Refund Rs. 6.62 Crores To Flipkart
The Delhi High Court has directed the Value Added Tax (VAT) department to refund Rs. 6.62 crore to Flipkart along with interest.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the VAT department has acted arbitrarily in making numerous adjustments post-May 31, 2015, thus illegally depriving the petitioner, Flipkart, of the refund as claimed. The...
Civil Liability Imposed for Failing to Settle Tax Dues Due to Incorrect Input Tax Credit Claim, Attracts Penalty: Patna High Court
In a recent verdict, the Patna High Court upheld the imposition of interest and penalty on M/s Munna Traders, an assessee under the Bihar Goods and Services Tax Act (BGST Act). The penalties were enforced due to an excessive claim of input tax credit, with the Court deeming the penalty as a civil liability arising from the failure to pay the due tax, stemming from an erroneous input tax...
DRP Can Give Directions Only In Pending Assessment Proceedings: Bombay High Court
The Bombay High Court has held that the Dispute Resolution Panel (DRP) could give directions only in pending assessment proceedings.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that once an assessment order is passed, rightly or wrongly, the assessment proceedings come to an end. Therefore, the DRP would have no power to pass any directions contemplated...
Issuance Of Bonus Shares Does Not Amount To Transfer Of Property And Does Not Attract Section 56(2)(vii)(c): ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that in the issue of bonus shares, the money remains with the company and nothing comes to the shareholders as there is no transfer of the property and the provisions of Section 56(2)(vii)(c) of the Income Tax Act.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that when...
UP VAT | Burden To Prove Purchase From Registered Dealer On Assesee: Allahabad High Court
In a revision preferred by the Tax Department, the Allahabad High Court has held that the burden to prove that purchases were made from registered dealer lies on the Assesee claiming the same. The Department cannot be made to discharge a negative burden to prove that the sales were made from unregistered dealers. Perusing Section 16 (Burden of Proof) of the Uttar Pradesh Value Added Tax...
Assessment Invalid On Account Of A Mechanical Non-Speaking Approval Under Section 153D: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that assessment invalid on account of a mechanical non-speaking approval under Section 153D of the Income Tax Act.The bench of Kuldip Singh (Judicial Member) and S. Rifaur Rahman (Accountant Member) has observed that the assessing officer has passed a draft assessment order making huge additions, and such huge additions...
CBDT Notifies Income Tax Exemption To Multi Commodity Exchange Investor (Client) Protection Fund Trust
The Central Board of Direct Taxes (CBDT) has notified the income tax exemption to Multi Commodity Exchange Investor (Client) Protection Fund Trust under Section 10(23EC) of the Income Tax Act.“In exercise of the powers conferred by sub-section (23EC) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Multi Commodity Exchange Investor...
Cognizant Technology Liable For Dividend Distribution Tax On Buyback Of Rs 19,000-Crore Shares: ITAT
The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has held that Cognizant Technology is liable to pay dividend distribution tax on the buyback of Rs. 19,000 crore shares.The bench of Mahavir Singh (Vice President) and Shrimanjunatha. G (Accountant Member) has observed that the purchase of its own shares through a scheme sanctioned by the jurisdictional HC in terms of provisions of...
Activity Of Collection, Cleaning, Segregation And Stacking Of Blasted Raw Magnesite Is Classifiable As ‘Mining Services’: CESTAT
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the activity of collection, cleaning, segregation, and stacking of blasted raw magnesite is classifiable under the category ‘Mining Services’.The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that the activities of collection, cleaning, segregation,...
Patna High Court Upholds Constitutional Validity Of Section 16(4) Of CGST Act, 2017
The Patna High Court upheld the constitutional validity of Section 16(4) of the CGST/BGST Act, 2017 and did not find Section 16(4) to be violative or inconsistent with the fundamental rights guaranteed under the constitution.The bench of Justice Chakradhari Sharan Singh and Justice Madhuresh Prasad observed that concession of ITC under sub-section (1) of Section 16 of the CGST/BGST Act...
CBDT Expands The List Of Securities Eligible For Tax Exemption On A Recognised Stock Exchange In IFSC
The section 47(viiab) exemption's scope has been expanded by the Central Board of Direct Taxes (CBDT).The Income Tax Act of 1961, Section 47(viiab), exempts transfers of capital assets made by non-residents on recognised stock exchanges situated in any International Financial Services Centre (IFSC) from paying capital gains tax.The exemption is now available to units of investment trust, units...