Tax
Section 263 Income Tax Act | Erroneous Order Of Assessing Officer Causing Prejudice To Revenue Is Revisable By CIT : Supreme Court
The Supreme Court has held that the Commissioner of Income Tax can exercise revision powers under Section 263 of the Income Tax Act over the orders of the Assessing Officer which cause prejudice to the interest of the revenue.The Top Court set aside the Bombay High Court’s order where the High Court had ruled that the amount paid by the assessee to its shareholders in lieu of settlement...
Punjab And Haryana High Court Directs To Refund Tax Collected Illegally With 6% Interest
The Punjab and Haryana High Court has held that if the tax is collected without any authority of law, the same would amount to depriving a person of his property without any authority of law and would infringe on his right under Article 300 A of the Constitution of India.The bench of Justice Ritu Bahri and Justice Manisha Batra has observed that no receipt was given by the proper officer...
Employer’s TDS Obligation Under New ‘Default’ Personal Tax Regime: CBDT Issues Clarifications
The Central Board of Direct Taxes (CBDT) has issued clarification regarding the deduction of TDS under Section 192 read with sub-section (IA) of Section 115 BAC of the Income-tax Act.Section 115 BAC of the Income-tax Act, 1961, has been amended by the Finance Act of 2023 to include a sub-section (lA), which establishes a new tax structure that will take effect for assessment years starting on...
Issuance Of Corporate Guarantee On Behalf Of Group Companies Without Consideration Is Not A Taxable Service: Supreme Court
The Supreme Court has held that the issuance of a corporate guarantee on behalf of group companies without consideration is not a taxable service.The division bench of Justice Hrishikesh Roy and Justice Manoj Misra has observed that, as there is no consideration involved, no service tax would be assessed on the corporate guarantees given by a parent company to its subsidiaries.The department...
Memorandum Issued By The Government To Deduct 4% TDS Is Not Ultra Vires To Tripura Sales Tax Act: Supreme Court
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 with Section 2(b) and 2(g) of the Tripura Sales Tax Act (TST Act).The division bench of Justice M.R. Shah and Justice Krishna Murari has observed that Rule 3A(2) of the TST Rules and the memorandum issued by the Government to...
“Sikkimese” Is Only For The Purposes Of The Income-Tax Act, 1961, And Not For Any Other Purpose: CBDT Clarifies
The Central Board of Direct Taxes (CBDT) has clarified that the “Sikkimese” are defined only for the purposes of the Income-tax Act, 1961, and not for any other purpose.The amendment to section 10(26AAA) of the Income-tax Act, 1961 by the Finance Act, 2023 while following the decision of the Supreme Court in the case of Association of Old Settlers of Sikkim vs Union of India. The Apex...
Delhi High Court Quashes Service Tax Demand of Rs. 56.61 Crores Against MTNL
The Delhi High Court has quashed the service tax demand of Rs. 56.61 crores against Mahanagar Telephone Nigam Limited (MTNL).The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that MTNL had received the compensation during the financial year 2015-16, which was prior to May 14, 2016, i.e., the date on which the Finance Act, 2016, came into force and Clause (j) was...
Breast Pump Is Not A Medical Device, Classifiable Under CTH 39269090: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that breast pumps have nothing to do with any medical or surgical procedures and are not used by any medical practitioner.The two-member bench of Binu Tamta (Judicial Member) and P V Subba Rao (Technical Member) has observed that the manual breast pumps are classifiable under CTH...
Supply Of Prepackaged And Labelled Rice Upto 25 Kgs, To The Factory Of Exporter Attracts 5% GST: Haryana AAR
The Haryana Authority of Advance Ruling (AAR) has held that 5% GST is applicable on supplies of prepackaged and labeled rice up to 25 kg to the factory of the exporter.The two-member bench of Sunder Lal and Kumud Singh has observed that the legislature's intention is that the supply of rice in packets of up to 25 kg, which are duly pre-packaged and labelled as per the Legal Metrology Act,...
Services Provided By EY India To Overseas EY Entities Not “Intermediary Services”: Delhi High Court Directs IGST Refund To EY India
The Delhi High Court has ruled that the services provided by M/s Ernst and Young Limited (India), the Indian Branch Office of UK based company, M/s Ernst & Young Limited (E&Y Ltd), to overseas EY Entities, is not an “intermediary service”. The Court thus set aside the orders passed by the GST Authorities where it had rejected Ernst and Young’s application seeking refund...
Different Amount Mentioned In Tax Invoice And E-Way Bill: Orissa High Court Orders Issuance Of Fresh Assessment Order
The Orissa High Court has held that the different amounts mentioned in the tax invoice and e-Way Bill indicate a palpable error in the waybill, which may be construed as a human error.The bench of Justice B.R. Sarangi and Justice M.S. Raman quashed the assessment order and remitted the matter back to the assessing authority for reconsideration in accordance with the law.The...
CBDT Notifies Income Tax Exemption To Bhadohi Industrial Development Authority
The Central Board of Direct Taxes (CBDT) has notified income tax exemption to Bhadohi Industrial Development Authority.The Bhadohi Industrial Development Authority is an authority constituted by the state government of Uttar Pradesh.The exemption is granted in respect of money received from the disposal of land or 90-year lease of immovable properties; money received by the way of lease rent...