Tax
Same Activity Can Be Taxed As ‘Goods’ & ‘Services’ : Supreme Court Upholds Levy Of Service Tax On “Engineering Design & Drawings”
The Supreme Court has held that the import of “Engineering Design & Drawings” falls under the category of “design services” under section 65(35b) read with Section 65(105) (zzzzd) of the Finance Act, 1994, and are subject to levy of service tax. On the sole ground that “Engineering Design & Drawings” prepared and supplied by sister company were shown as ‘goods’ under...
Income Tax Act | For A Company To Be A "Resident" In India, Domicile Or Registration Irrelevant; Test Is Where De Facto Control Lies : Supreme Court
The Supreme Court has ruled that under the Income Tax Act, 1961, the domicile or the registration of the company is not at all relevant, and the determinate test is the place where, the sole right to manage the company and the control of the company lies. The place where the “head and seat” and the “directing power” of the affairs of the company and the control and management is...
Mere Delay In Remittance Of TDS Doesn’t Attract Penalty Under S 271C Income Tax Act: Supreme Court
The Supreme Court has ruled that no penalty is leviable under Section 271C of the Income Tax Act, 1961 on mere delay in remittance of the tax deducted at source (TDS) after the same has been deducted by the assessee.The bench of Justices M.R. Shah and C.T. Ravikumar observed that the relevant words used in Section 271C(1)(a) are “fails to deduct”, and the same does not speak about...
Quarterly Digest Of Tax Cases: January-March, 2023
Indirect TaxesSupreme CourtSabka Vishwas Scheme : Supreme Court Grants Relief To Company Which Missed Deadline Due To IBC MoratoriumCase Title: Shekhar Resorts Limited vs Union of IndiaCitation : 2023 LiveLaw (SC) 15No one can be expected to do the impossible, the Supreme Court remarked while granting relief to a company which could not avail the benefit of settlement of tax dues under...
Tax Cases Weekly Round-Up: 2 April to 8 April, 2023
Supreme Court Memorandum Issued By The Government To Deduct 4% TDS Is Not Ultra Vires To Tripura Sales Tax Act: Supreme Court Case Title: The State Of Tripura Versus Chandan Deb Citation: 2023 LiveLaw (SC) 280 The Supreme Court has held that the liability to pay the tax shall be on the transferor who transfers the right to use any goods as per proviso to Section 3(1) read...
Subsidized Deduction Made From The Employees Availing Food In The Factory/Corporate Office Would Not Be Considered A 'Supply' Under GST: AAR
The Gujarat Authority for Advance Ruling (AAR) has held that a subsidized deduction made by the applicant from the employees who are availing food in the factory or corporate office would not be considered a 'supply' under the GST Act.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that input tax credit (ITC) will be available to the applicant on the GST charged by the...
Non-Compete Fee Related To Profession Is Made Taxable Only w.e.f. AY 2017-18: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that a non-compete fee related to a profession is made taxable only with effect from AY 2017–18, and the non-compete fee in relation to a profession for periods prior to AY 2017–18 would be treated as a capital receipt.The bench of Astha Chandra (Judicial Member) and Shamim Yahya (Accountant Member) has decided in favor...
One Time Premium Received On Allotment Of Completed Commercial Units/Building Attracts 18% GST: AAR
The Gujarat Authority for Advance Ruling (AAR) has held that a one-time premium received by the applicant on allotment of completed commercial units or buildings attracts 18% GST.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has held that the one-time premium received by the applicant on allotment of completed commercial units or buildings is a taxable supply in terms of Section...
Madras High Court Quashes Reassessment Made After The Limitation Period
The Madras High Court has held that the assessment was reopened on the basis of the error pointed out by the revenue audit, but it was done after the period prescribed under Section 147 of the Income Tax Act.The bench of Justice R. Mahadevan and Justice Mohammed Shaffiq has observed that reopening the assessment in light of factual errors pointed out by the audit party is permissible under...
Person In Whose Custody The Goods Are Found To Produce Information Within A Reasonable Time: Delhi High Court
The Delhi High Court has held that it would be open for a person found in the custody of goods to produce the relevant information in its possession with respect to the goods within a reasonable time on being required to do so by the Commissioner.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that none of the authorities have even examined whether the documents...
In Absence Of Proper Show Cause Notice To The Assessee, There Is No Merit In Levy Of Penalty: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal has held that where the initiation of penalty is one limb and the levy of penalty is another limb, then in the absence of proper show cause notice to the assessee, there is no merit in the levy of penalty.The bench of Anil Chaturvedi (Accountant Member) and Yogesh Kumar Us (Judicial Member) has relied on the decision of the Bombay High Court...
Cenvat Credit Available On Books Of Account Cannot Be Rejected Without Following Due Procedure: CESTAT
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that unless CENVAT Credit availed by the appellant has not been recovered by way of the issue of a show cause notice invoking Rule 14 of the CENVAT Credit Rules, 2004, CENVAT Credit available on the books of account cannot be rejected when it is accumulated on account of export of service.The...