Tax
ITAT Upholds Interest On 'Outstanding Interest Receivable' Against Parle Biscuits
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the levy of interest on 'outstanding interest receivable' against Parle Biscuits.The bench of Kuldip Singh (Judicial Member) and Padmavathy S. (Accountant Member) has observed that in a transfer pricing transaction, what needs to be looked into is whether, in an uncontrolled similar transaction, the third party would...
Tax Cases Weekly Round-Up: 9 July To 15 July, 2023
Supreme Court Revenue Dept Can't Recover Refunded Cess Amount Because Refund Was Based On A Judgment Which Was Later Overruled : Supreme Court Case Title: Commissioner of CGST and Central Excise (J and K) vs M/s Saraswati Agro Chemicals Pvt. Ltd. Citation : 2023 LiveLaw (SC) 522 The Supreme Court has upheld the decision of the Jammu and Kashmir and...
Output Tax Was Paid Using ITC, Railway Can’t Deny GST Reimbursement On Price Variation: Gauhati High Court
The Gauhati High Court had held that railways cannot deny GST reimbursement on account of price variation merely on the grounds that the output tax was paid through an electronic credit ledger using the Input Tax Credit (ITC).The bench of Justice Devashis Baruah has observed that the petitioner would be entitled to his PVC claim in terms of the contract, and GST paid by the Petitioner from...
Income Tax Act | Completed/Unabated Assessments Cannot Be Reopened by AO If No Incriminating Material Is Found During Search: Supreme Court
The Supreme Court has reiterated that in view of the judgment of the Supreme court in Principal Commissioner of Income Tax vs. Abhisar Buildwell Pvt. Ltd.,2023 LiveLaw (SC) 346, an Assessing Officer (AO) cannot make additions to assessee’s income in respect of completed/unabated assessments if no incriminating material has been found during the course of search under Section 132 or...
Subscription Amount Received From Subscribers Of E-Journals Cannot Be Treated As Royalty: Delhi High Court
The Delhi High Court has held that the subscription amount received from subscribers of e-journals cannot be treated as royalty.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the subscription amount cannot be treated as royalty, having regard to the fact that there is nothing on record to suggest that the respondent or assessee has granted the right in...
Capital Gain Exemption Allowable On Construction Of Residential House Completed Within 3 Years: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), has held that the claim of capital gain exemption under Section 54 of the Income Tax Act, 1961 on construction of residential house completed within 3 years is allowed and removed the penalty levied under Section 271(1)(c) of the Income Tax Act. The assessee, Hemant Shridhar Phatak, in its return of income claimed exemption...
No Penalty Under Section 129(3) Of CGST Act Could Be Imposed Without Providing A Hearing Opportunity U/S 129(4) Of The Act
While observing that a petitioner’s response to the show cause is required to be considered after due opportunity of hearing, in accordance with the statutory provisions, the Patna High Court has overturned the penalty imposed on a petitioner for moving goods without a valid e-way bill.The Court ruled that no penalty under Section 129(3) of the Central Goods and Services Tax (CGST) Act could...
CBDT Issues Clarification On Taxability Of Income Earned From Off-Shore Investments In Investment Fund Routed Through An AIF
The Central Board of Direct Taxes (CBDT) issued a clarification on the taxability of income earned by a non-resident investor from outside India (off-shore investment) routed through an investment fund.The Circular was made applicable to Category I or Category II Alternative Investment Funds (AIFs) regulated under Securities and Exchange Board of India (SEBI) regulations.By the Finance Act,...
Ranger And Brutus Vehicles Imported By Polaris India Are Not Designed For Transportation Of Persons: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Ranger and Brutus Vehicles imported by Polaris India are not designed for the transportation of persons.The bench of Justice Dilip Gupta (President) and Hemambika R. Priya, (Technical Member) has observed that the Ranger (non-electric) Vehicles deserve to be classified under CTH 8704 and the...
ITAT Disallows Interest Paid On Loan Taken For Paying Compensation To Family Members Pursuant To Arbitral Award On Family Settlement
The Panaji Bench of the Income Tax Appellate Tribunal (ITAT) has disallowed the interest paid on a loan that was taken for paying compensation to the assessee’s family members pursuant to an arbitral award on family settlement.The bench of R.S. Syal (Vice President) and Partha Sarathi Chaudhury (Judicial Member) has observed that the expenses incurred by the assessee for paying interest on...
No Excise Duty Payable On Waste Or Rubbish, Which Is Thrown Up In The Course Of Manufacture: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Waste or rubbish that is thrown up in the course of manufacture cannot be said to be a product of manufacture and cannot be subject to excise duty.The bench of Ajay Sharma (Judicial Member) and Anil G. Shakkarwar (Technical Member) has observed that Waste Pickle Liquor (WPL) is nothing but...
Knowledge Is A Necessary Element For Committing Abetment : Delhi High Court Quashes Penalty Against Customs Broker
The Delhi High Court has quashed the penalty against customs brokers on the grounds that knowledge is a necessary element for committing abetment. The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that knowledge of a wrongful act of omission or commission, which rendered the goods liable for confiscation under Section 111 of the Customs Act, is a necessary element for...