Manufacturing Without Proper Manufacturing Facilities: CESTAT Upholds Excise Duty Demand, Penalty

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that manufacture and clearances made by the four units availing the benefit of Notification No. 8/2003-CE have to be clubbed together as these units are one and the same. Their operations are under common management/family members and financial control, and they have mutual financial interests...

Provisions Of Section 44BB Not Applicable In Absence Of PE: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the provisions of Section 44BB of the Income Tax Act are not applicable in the absence of a permanent establishment (PE).The bench of Kul Bharat (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the burden of proving the existence of PE lies on the department, which has not been discharged. There...

GST ITC Available On Work Contract Services For The Construction Of Hotel Building: Tripura High Court

The Tripura High Court has held that in providing taxable work contract services for the said construction of a hotel building, the assessee is entitled to take an input tax credit on the goods and services being utilized for providing the taxable work contract services.The bench of Acting Chief Justice Aparesh Kumar Singh and Justice Arindam Lodh has observed that the assessee has fulfilled...

Deemed Dividend Cannot Be Taxed In The Hands Of Non-Shareholders: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that deemed dividends cannot be taxed in the hands of non-shareholders.The bench of Annapurna Gupta (Accountant Member) has observed that the deeming fiction envisaged in Section 2(22)(e) of the Income Tax Act is only with respect to dividends, and its scope, therefore, cannot be enlarged to extend to shareholders also....

CBIC Re-Organises Of National Assessment Centres And Faceless Assessment Groups

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular regarding the reorganization of National Assessment Centres (NACs) and Faceless Assessment Groups (FAGs), which shall be effective June 15, 2023.Recently, the board has reviewed the performance of the Faceless Assessment and deliberated upon certain aspects relating to the functioning and structure of the NACs and...

GST Payable Only On The Cost of Construction and Not On The Cost Of Land: Gujarat High Court

The Gujarat High Court, while giving major relief to the buyers, has held that GST is payable only on the cost of construction and not on the cost of land.The bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has observed that in the sale of a flat, villa, or commercial property, the actual land value or undivided share is not at all subject to GST. The value of the land or...

Burden To Prove That A Specific Product Falls Within A Particular Tariff Is Always On The Department: Rajasthan High Court

The Jaipur Bench of the Rajasthan High Court has held that the burden to prove that a specific product falls within a particular tariff is always on the revenue, more so when the revenue is trying to classify products in the residual entry as against the specific entry.The bench of Justice Sameer Jain has observed that the department has utterly failed to adduce any evidence, technical...

‘Pizza’ And ‘Sandwiches’ Are ‘Cooked Foods’: Rajasthan High Court Allows Exemption Of Payment Of VAT In Excess Of 5%

The Jaipur Bench of the Rajasthan High Court has held that the sale of ‘pizza’ and ‘sandwich’ would qualify as the sale of ‘cooked food’ and the sale shall be eligible for the exemption of payment of Value Added Tax (VAT) in excess of 5%.The Bench of Justice Sameer Jain has observed that the term ‘cooked food’ is confined to those cooked things that one generally takes at...

Income Derived From Sale Of Agricultural Land Is Not A Capital Asset: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income derived from the sale of agricultural land is not a capital asset.The bench of Saktijit Dey (Judicial Member) and M. Balaganesh (Accountant Member) has observed that income tax is not payable on the income derived from the sale of agricultural land.A search and seizure operation was conducted in the case of...

GST Budgetary Support Scheme Can’t Be Interpreted Liberally: J&K And Ladakh High Court

The Jammu & Kashmir and Ladakh High Courts have held that the GST Budgetary Support Scheme cannot be interpreted liberally.The bench of Chief Justice N. Kotiswar Singh and Justice Vinod Chatterji Koul has observed that the new scheme provides certain benefits by way of budgetary support to such units that were granted excise duty exemption under an earlier tax regime prior to the...

ITAT Deletes Disallowance On Setting Off Legal Expenses Against Interest Income For Contesting Arbitral Award

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that disallowance setting off legal and other expenses against interest income for contesting an arbitral award.The bench of G.S. Pannu (President) and Saktijit Dey (Judicial Member) has observed that the arbitral award was passed in July 2020, which is under challenge before the Delhi High Court. Even after the conclusion...

AO Can’t Sit On The Armchair Of Businessman Assessee To Replace His Business Strategy By His Own Whims And Fancies: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy with his own whims and fancies.The bench observed that Chandra Mohan Garg (Judicial Member) and Pradip Kumar Kedia (Accountant Member) have observed that the Assessing Officer only noted an abnormal fall in the...