Section 56 (2)(viib) Is Applicable On Government Related Investors, Banks Involved In Insurance Business, Etc.: CBDT

The Central Board of Direct Taxes (CBDT) has notified the class of persons/entities on which Section 56 (2)(viib) of the Income Tax Act.The words "being a resident" have been proposed to be removed from section 56(2)(viib) with effect from 01 April 2024 in the Finance Bill 2023. Therefore, if this section were to become law, it would apply to any non-resident who makes an investment in...

Demand Under Service Tax On RCM, Has To Be Worked Out And Calculated Transaction-Wise And Invoice-Wise: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that demand under service tax on reverse charge mechanisms has to be worked out and calculated transaction-wise and invoice-wise.The bench of Anil Choudhary (a judicial member) has observed that in the absence of any transaction-wise and invoice-wise calculation, the show-cause notices are vague and...

Once The Existence Of Goodwill Is Established, Depreciation On Goodwill Cannot Be Questioned: ITAT

The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that once the existence of goodwill is established, depreciation on goodwill cannot be questioned.The bench of K. Narasimha Chary (Judicial Member) and R.K. Panda (Accountant Member) has observed that the transfer of IP from Blujay India to Blujay UK cannot question the benefits accrued from the bundle of assets...

Broken Rice Can Be Exported Only On The Grant Of Govt. Permission: DGFT

The Directorate General Of Foreign Trade (DGFT) has amended the export policy of broken rice.The government has incorporated the Policy Conditions for broken rice against ITC (HS) code 1006 40 00 of Chapter 10 of Schedule 2 of the ITC (HS) Export Policy.The DGFT has prohibited export of the Broken rice. However, the export will be allowed on the basis of permission granted by the Government...

Mandatory For Cough Syrups Exporters To Get Samples Tested In Designated Laboratories Prior To Export: DGFT

The Directorate General of Foreign Trade (DGFT) has tightened the export policy for cough syrups.The existing export policy for cough syrups is free. However, as per the revised policy, cough syrup shall be permitted to be exported subject to the export sample being tested and the production of a Certificate of Analysis (CoA). CoA issued by any laboratories of the Indian Pharmacopoeia...

CBDT Increases Income Tax Exemption Limit On Leave Encashment For Non-Government Salaried Employees

The Central Board of Direct Taxes (CBDT) has increased the income tax exemption limit on leave encashment for non-government salaried employees.The notification was released by the Board in accordance with the 2023–24 Budget. The tax exemption on leave encashment upon retirement for salaried non-government workers was raised by Finance Minister Nirmala Sitharaman from Rs 3 lakh to Rs...

Additions Can’t Be Made In Absence Of Incriminating Material: ITAT Deletes Income Tax Addition

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the additions could not have been made in the absence of any incriminating material.The bench of Kavitha Rajagopal (Judicial Member) and B.R. Baskaran (Accountant Member) observed that the additions made by the Assessing Officer under Section 68 of the Act towards the sale of shares and also estimated...

Dept. Failed To Prove Sundry Creditors To Be Bogus: ITAT Deletes Addition Against Buffalo Meat Trader

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition against the buffalo meat trader as the department has failed to prove sundry creditors to be bogus.The bench of Yogesh Kumar US (Judicial Member) and B. R. R. Kumar (Accountant Member) observed that the Assessing Officer has failed to pinpoint any discrepancy in the details filed and books of accounts, bills,...

ITAT Allows Income Tax Deduction On Effluent Water Treatment

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax deduction on effluent water treatment.The bench of Amit Shukla (Judicial Member) and Gagan Goyal (Accountant Member) has observed that effluent water treatment can be considered a water treatment plant eligible under Section 80IA of the Income Tax Act.The appellant/assessee is in the business of...

CBDT Notifies The Procedure To Compute ‘Net Winnings’ From Online Games

The Central Board of Direct Taxes (CBDT) has notified the Income Tax (Fifth Amendment) Rules, 2023.The Board has notified a new Rule 133, which prescribes a manner for computing "net winnings" from online games under sections 115 BBJ and 194BA of the Income Tax Act, 1961.It was clarified that whenever there is payment to the user in kind or in cash, or partly in kind and partly in cash, which...

Rejection Of Application Under SVLDR Scheme Without A Hearing Is Violative Of Principles Of Natural Justice: Delhi High Court

The Delhi High Court has held that the summary rejection of the application under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) without affording the opportunity to be heard would violate the principles of natural justice.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that in terms of the SVLDR Scheme, the petitioner would be entitled to...

TDS To Be Deducted By Online Game Platforms When The Winning Amount Exceeds The Threshold Of Rs. 100: CBDT

The Central Board of Direct Taxes (CBDT) has issued the Guidelines for the removal of difficulties under section 194 BA (3) of the Income-tax Act, 1961.The new section mandates a person, who is responsible for paying any person any income by way of winnings from any online game during the financial year to deduct income tax on the net winnings in the person's user account. Tax is required to...