Tax
CBDT Amends Definition Of Investment Fund Under Income Tax Act, 1961
The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has recently issued an important amendment to its previous Notification No. 55/2019, dated 26-07-2019, pertaining to the definition of an investment fund under the Income Tax Act, 1961. The notification elucidates the criteria for funds that are established or incorporated in India and fall under the...
No GST Payable On Activity Of Holding Of Shares Of Subsidiary Company By The Holding Company: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the taxability of shares held in a subsidiary company by the holding company.The Board has received the representations from the trade and field formations seeking clarification on whether the holding of shares in a subsidiary company by the holding company will be treated as a ‘supply of service’ under...
CBIC Extends GST Amnesty Scheme For GSTR-9 & GSTR-10 For Non-Filers
The Central Board of Indirect Taxes and Customs (CBIC) has extended the GST Amnesty Scheme for GSTR-9 & GSTR-10 for non-filers.The deadline for submitting the GSTR-10 form has been moved from the original 30th June 2023 to the 31st August 2023, according to the notification.GSTR-9 & GSTR-10 non-filers are allowed an additional amount of time to complete their filing requirements as...
No Evidence Of Supplier Of Tea Involved In Smuggling Poppy Seeds: Calcutta High Court Releases Vehicle And Tea
The Calcutta High Court has released the attached vehicle and tea on the grounds that the tea supplier was not involved in smuggling poppy seeds.The bench of Justice Krishna Rao has observed that tea is perishable in nature, no involvement of the supplier of the tea with the smuggled poppy seeds has been ascertained, and the Directorate of Revenue Intelligence has no objection if the...
Jharkhand High Court Rejects ESL Steel’s ITC Claim Prior To The Approval Of The Resolution Plan By NCLT
The Jharkhand High Court rejected ESL Steel’s Input Tax Credit (ITC) claim prior to the approval of the resolution plan by the National Company Law Tribunal (NCLT).The bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan has observed that the liability of the earlier management may not be shifted to the current management, but at the same time, the credit available to the...
Bombay High Court Quashes Reopening Income Tax Assessment After 4 Years Merely On The Change Of Opinion
The Bombay High Court has quashed the reopening of income tax assessments after 4 years merely on the change of opinion of the Assessing Officer (AO).The bench of Justice K. R. Shriram and Justice Firdosh P. Pooniwalla observed that the Assessing Officer had in his possession all primary facts, and it was for him to draw a proper inference as to whether the brought forward unabsorbed...
Welding Electrodes Used For Repairing Plant & Machinery Are Capital Goods: Rajasthan High Court Allows CENVAT Credit To Hindustan Zinc
The Rajasthan High Court has granted CENVAT Credit to Hindustan Zinc and held that welding electrodes used for repairing plants and machinery are capital goods and inputs.The bench of Justice Vijay Bishnoi and Justice Yogendra Kumar Purohit has relied on the decision of the Supreme Court in the case of Jawahar Mills Ltd. vs. CCE, in which it was held that Welding Electrodes are eligible...
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...