Tax
Lok Sabha Passes Amendments to GST Bills, Levies 28% Tax on Online Gaming, Casinos, and Horse Race Clubs
The Lok Sabha has passed amendments to two Goods and Services Tax (GST) bills for levying 28 per cent tax on online gaming, casinos and horse race clubs during the monsoon session of Parliament.Union Finance Minister Nirmala Sitharaman introduced two bills, namely the Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, in...
Bombay High Court Quashes Review Order Which Disallowed Deductions, Being Contra To Natural Justice
The Bombay High Court has quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN).The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that the review order is in patent breach of the principles of natural justice and that, without jurisdiction, the petition deserved to be...
Services Can’t Be Roped Into FTS Unless Person using Services Able To Use Technology: Gujarat High Court
The Gujarat High Court has held that mere rendering of services cannot be roped into fees for technical service (FTS) unless the person utilising the services is able to make use of the technical knowledge, etc.The bench of Justice Biren Vaishnav and Justice Devan M. Desai has observed that services were rendered by GIA US, and by considering the make available clause as per the India-US...
Central GST (Amendment) Bill To Be Tabled To Include 28% GST On Online Gaming, Casinos, Horse Race Clubs
The Union Finance Minister Nirmala Sitharaman will introduce the Central Goods and Services Tax (Amendment) Bill, 2023.The Goods and Services Tax (GST) will be levied at a rate of 28% on online gaming, gambling, and horse racing under legislation that the Centre plans to introduce in the Lok Sabha.Online gaming, online gambling for money, virtual digital assets used to purchase online games,...
ITAT Imposes Cost Of Rs.10K On Foreign Portfolio Investor For Not Responding To Section 142(1) Notices
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.10,000 on a foreign portfolio investor (FPI) for not responding to notices under Section 142(1) of the Income Tax Act.The bench of Vikas Awasthy (Judicial Member) and Padmavathy (Accountant Member) has observed that there is negligence on the part of the assessee in not responding to the notices issued by...
Income Would Accrue Only When The Assessee Gets A Right To Receive The Income: ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income would be receivable only when the income accrues to the assessee, and the income would accrue to the assessee only when the assessee gets such a right to receive the income.The bench of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has observed that the assessee would get a...
Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court
The Bombay High Court has held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla has observed that the Tribunal was totally...
Calcutta High Court Dismisses Income Tax Dept’s Appeal On The Ground Of Low Tax Effect
The Calcutta High Court has dismissed the appeal filed by the Income Tax Department on the ground of low tax effects.The bench of Chief Justice T.S. Sivagnanam and Justice Ajay Kumar Gupta has observed that the total tax was less than Rs. 1 crore, which is the threshold limit fixed by the Central Board of Direct Taxes (CBDT).The department/appellant has raised the issue of whether ITAT erred...
ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) has observed that AO, after making adequate inquiries, proceeded to make an addition for alleged money receipts on a protective basis in the hands of...
Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost
The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.The bench of Justice Vivek Rusia and Justice Pranay Verma has observed that the Tribunal has set aside the order rejecting the application for provisional release of...
Section 68 Of The Income Tax Act Is Not Applicable On Share Premium: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Section 68 of the Income Tax Act, which relates to the taxability of unexplained cash credits, is not applicable to share premiums.The bench of Narender Kumar Choudhry (Judicial Member) and B.R. Baskaran (Accountant Member) has observed that the provisions of Section 68 would be attracted when the assessee fails to...
Depreciation Allowable On Goodwill Though No Actual Cash Payment Made For Acquisition: Delhi High Court
The Delhi High Court has held that depreciation is allowable on goodwill arising in a scheme of amalgamation even though no actual cash payment was made for the acquisition of goodwill.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that sections 49 and 55(2) deal with ‘capital gains’ arising on the sale of goodwill and not with respect to depreciation...