Tax
Trust Created For Managing The Statutory Obligations Of Employees Of The Parent Trust: ITAT Grants Section 12AA Registration
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that any trust that has been created for the purpose of managing the statutory obligations of employees of the parent trust would certainly fall within the ambit of advancement of general public utility and, hence, be considered a charitable activity as defined under Section 2(15) of the Income Tax Act.The bench of C.M....
Tax Cases Weekly Round-Up: 28 May to 3 June, 2023
Delhi High Court Faceless Assessment Is Not A Fundamental Right: Delhi High Court Dismisses Gandhis, Aam Aadmi Party's PleasCase Title: Sanjay Gandhi Memorial Trust Versus Commissioner Of Income Tax (Exemption) & Ors.Citation: 2023 LiveLaw (Del) 446The Delhi High Court, while dismissing the plea of Rahul Gandhi, Priyanka Gandhi, and the Aam Aadmi Party, has held that neither the...
Accumulated Cenvat Credit Lying Unutilized Does Not Carry Any Interest: CESTAT
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that accumulated CENVAT credit lying unutilized does not carry any interest.The two-member bench of P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that Rule 5 of the CENVAT Credit Rules, 2004 clearly lays down that the assessee is free to take back the credit of...
Profit Made On Transportation Charges Need Not Be Included In The Assessable Value, No Excise Duty Payable: CESTAT
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that profit made on transportation charges need not be included in the assessable value and the excise duty is not leviable.The bench of Sulekha Beevi C.S. (Judicial Member) and M. Ajit Kumar (Technical Member) has observed that excise duty is not a tax on profits but only on the actual value of...
Excess Service Tax Paid Can Be Adjusted Towards Service Tax Liability For The Succeeding Month Or Quarter: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that excess service tax paid can be adjusted towards service tax liability for the succeeding month or quarter.The bench of Justice Dilip Gupta (President) and P. Anjani Kumar (Technical Member) has observed that the mistake of short or excess payment has occurred due to the newly introduced...
Show Cause Notice Lacks Reasons In Detail For Denial Of Refund Of ITC To Mcdonald’s India: Delhi High Court
The Delhi High Court has held that the show cause notice lacks reasons in detail for the denial of refund of Input Tax Credit (ITC) to Mcdonald's India.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan found that there was no basis for the Appellate Authority to have concluded that the petitioner acts as a mediator between joint ventures or franchisees and McDonald’s USA. The...
GST Payable On Monthly Rental, Night Charges, Fuel On Mileage Basis In Availing Motor Vehicle Rental Services: AAR
The Uttarakhand Authority of Advance Ruling (AAR) has held that GST is payable on monthly rental, night charges, and fuel on a mileage basis when availing motor vehicle rental services.The Bench of Anurag Mishra and Rameshwar Meena has observed that without fuel, the motor vehicle does not operate (run), and without running, i.e., moving from one place to another, the act of motor vehicle...
CBDT Notifies New Monetary Limits For Condonation Of Delay In Filing Refund Claim And Claim Of Carry Forward Of Losses
The Central Board of Direct Taxes (CBDT) has issued new monetary limits in respect of condonation of delay in filing refund claim and claim of carry forward of losses under Section 119(2)(b) of the Income-tax Act, 1961.The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr. CsIT/CSIT) shall be vested with the powers of acceptance/rejection of applications/claims if the...
Tax Cases Monthly Round-Up: May 2023
Supreme CourtNo Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme CourtCase Title: Central GST Delhi – III vs Delhi International Airport LtdCitation : 2023 LiveLaw (SC) 457The Supreme Court has ruled that the “user development fee” (UDF) levied and collected by the airport operation, maintenance,...
Gift From Family Members Do Not Require Any Special Occasion: ITAT Deletes Addition
The Indore Bench of the Income Tax Appellate Tribunal (ITAT) has deleted that addition and held that gifts from family members do not require any special occasion.The bench of Vijay Pal Rao (Judicial Member) and B.M. Biyani (Accountant Member) has observed that all sources explained by the assessee were genuine except the gift of Rs. 1,00,000 claimed to have been received from the...
CBDT Notifies e-Appeals Scheme, 2023
The Central Board of Direct Taxes (CBDT) has notified the e-Appeals Scheme, 2023.Except for the cases excluded under Section 246(6), the scheme shall apply to appeals involving persons or classes of persons, incomes or classes of incomes, cases or classes of cases covered by Section 246.A person shall not be required to appear either personally or through an authorized representative...
Show Cause Notice Bereft Any Specific Allegation, Delhi High Court Quashes GST Registration Suspension Order
The Delhi High Court has held that the Show Cause Notice was short of the necessary requirements as it did not contain any specific allegation.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the show cause notice is required to set out the relevant material in order to enable the noticee to meaningfully respond to it.The petitioner has challenged a Show Cause...