Innovation & Development Services Provided To A German Company Amounts To Export Of Service: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that innovation and development services provided to a German company amount to an export of services.The bench of Justice Ritu Bahri and Justice Manisha Batra observed that the petitioner/assessee does not carry out any marketing of the products of Fresenius Kabi Deutschland GmbH Germany (FKDG) nor any product is delivered by FKDG to it. The...

Capital Gain Tax, No Retrospective Applicability Of Amendment Restricting Investment In India: Bombay High Court

The Bombay High Court has held that the amendment restricting investment in house property in India has retrospective applicability.The bench of Justice K. R. Shriram and Justice N. K. Gokhale has observed that the language of Section 54(F) of the Act before its amendment was that the assessee should invest capital gain in a residential house. It did not mention any boundaries. It is only...

ALP Adjustment Falls Within Tolerance Band Of +/- of 5%: ITAT Deletes TP-Adjustment On Payment For Consultancy, Professional Fees

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the TP adjustment on payment for consultancy and professional fees and other services by the assessee to its Associated Enterprises (AEs).The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that ALP adjustment falls within the tolerance band of +/- of 5% as per the second proviso...

Service Tax Exemption On Renting Of Immovable Property Service For Transmission Or Distribution Of Electricity By TANGEDCO: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the renting of immovable property services for the transmission or distribution of electricity by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that...

Tax Authority Based In Delhi Lacks Jurisdiction On Withholding Tax Liability On Share Purchase Transaction: Delhi High Court Quashes Tax Demand Against Sumitomo

The Delhi High Court has deleted the tax demand against Sumitomo Mitsui Financial Group on the grounds of lack of jurisdiction.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the jurisdiction on the withholding tax liability on the transaction of share purchase by the Assessee was already exercised by the tax authority based in Mumbai, thus the tax...

Waste, Gums, Fatty Acids Arising During Manufacturing Of Vegetable Oils Are Eligible For Excise Duty Exemption: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that waste, gums, fatty acids, etc. arising during the course of the manufacture of vegetable oils are eligible for the excise duty exemption.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that waste, gums, fatty acids, etc. arising out of the manufacture...

Pre-Fabricated Shelters, Towers Essential Ingredient Of Telecommunication Service: CESTAT Allows Cenvat Credit

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that prefabricated shelters and towers are essential ingredients of telecommunication services and qualify as input services.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that towers and pre-fabricated shelters form an essential ingredient in the...

AO Can’t Ask Assessee To Prove Non-Occurring Of An Event, ITAT Deletes Income Tax Addition Worth Rs. 2 Crores

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax addition worth Rs. 2 crores and held that the AO cannot ask the assessee to prove the non-occurring of an event.The bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that it is not proper on the part of the AO to ask the appellant to prove with witnesses and...

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...