Tax
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...
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...