Service Tax Not Payable On Services Of Advertisement In Print-Media: CESTAT

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not applicable to the service of advertisement in print media.The two-member bench of Justice Dilip Gupta (President) and Hemambika M. Priya (Technical Member) has observed that the services of advertisement in respect of print media are exempted in terms of the negative list of...

Assesses Failed To File Affidavit Proving Repayment Of Loans: Orissa High Court Sustains Addition On “Unsecured Loan”

The Orissa High Court has sustained the addition of unsecured loans under Section 68 of the Income Tax Act, 1961.The division bench of Chief Justice S. Muralidhar and Justice M.S. Raman has observed that the direction issued by the ITAT in the first round was to the effect that the AO should verify whether the assessee had repaid the amount "by calling all the creditors". Therefore, it is the...

TDS Not Deposited By Employer, Can’t Be Adjusted Against Future Refund Due To Assessee: Delhi High Court

The Delhi High Court has ruled that the revenue department cannot adjust the withheld tax (TDS) which has not been deposited by the deductor (employer) in the Central Government Account, against the refund due and payable to the deductee/assessee. The bench of Justices Rajiv Shakdher and Tara Vitasta Ganju held that adjustment of demand against future refund amounts to an...

CESTAT Allows Interest On Refunded Amount Deposited During Investigation

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed interest on the amount refunded, which was deposited during the investigation.The bench of Anil Choudhary (Judicial Member) has observed that interest on refund of amounts deposited during an investigation or deposited during the pendency of an appeal is allowable under Section 35EE of the Act and...

Charger Sold Along With Mobile Phone Can’t Be Differently Taxed: Karnataka High Court

The Karnataka High Court has held that the charger, which is sold along with the mobile phone in one set, is taxable at the rate of 5%.The division bench of Justice P.S. Dinesh Kumar and Justice T.G. Shivashankare Gowda has observed that the main intention of a purchaser or seller while buying or selling a "mobile set" is to buy or sell the mobile phone and not the charger alone. The supply...

Insolvency and Bankruptcy Board of India Eligible For Income Tax Exemption On Grant-In-Aid, Fine, Fee, Interest Income: CBDT

The Central Board of Direct Taxes (CBDT) has notified that the Insolvency and Bankruptcy Board of India shall be eligible for the income tax exemption under clause (46) of section 10 of the Income-tax Act, 1961.The grants-in-aid received from the Central Government, the fees and fines received under the Insolvency and Bankruptcy Code, 2016, and interest income accrued by the Insolvency...

Section 50C Cannot Be Applied On Compulsory Acquisition Of A Capital Asset: Calcutta High Court

The Calcutta High Court has held that in cases of compulsory acquisition of a capital asset (land or building, or both), the provisions of Section 50C of the Income Tax Act cannot be applied as the question of payment of stamp duty for effecting the transfer does not arise.The division bench of Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the property was...

Alternative Remedy Is Not Absolute Bar To Examine Conditions To Issue Reassessment Notice: Madhya Pradesh High Court

The Madhya Pradesh High Court stayed the reassessment proceedings and admitted them for the final hearing.The division bench of Justice S.A. Dharmadhikari and Justice Prakash Chandra Gupta has relied on the decision of the Supreme Court in the case of Red Chilli International Sales Vs. Income Tax Officer & Anr., in which it was held that writ petitions have been entertained to examine...

Tax Cases Monthly Round-Up: February 2023

Indirect Taxes Delhi High Court Budgetary Support Under GST Regime Can’t Be Denied To Eligible Unit: Delhi High Court Case Title: M/s Special Cables Pvt Ltd versus Central Board of Indirect Taxes and Customs & Ors. Citation: 2023 LiveLaw (Del) 120 The Delhi High Court has directed the revenue authorities to grant budgetary support to a manufacturing unit under...

Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction.The two-member bench of Sandeep Singh Karhail (Judicial Member) and Om Prakash Kant (Accountant Member) has relied on the Supreme Court's decision in the case of Checkmate Services (P.) Ltd. and ruled...

Centralized Processing Centre Not Authorized To Carry Out Adjustment For Disallowance Of Section 80P Deduction: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the Centralised Processing Centre (CPC) was not authorized to carry out such adjustments for disallowance of deduction under section 80P of the Income Tax Act.The two-member bench of Pavan Kumar Gadale (Judicial Member) and Om Prakash Kant (Accountant Member) observed that the assessment year 2007-08 occurred prior to...

Amounts Paid By Google India To Google US For Seconded Employees Does Not Come Within ‘FTS’ or ‘FIS’: ITAT

The Banglore Bench of the Income Tax Appellate Tribunal (ITAT) has held that amounts paid by Google India to Google US with reference to seconded employees do not come within the fees for technical services (FTS) or fees for included services (FIS) under the Income Tax Act or under the India-US Tax Treaty.The two-member bench of George George K. (Judicial Member) and Padmavathy S....