Tax
CESTAT Allows Cenvat Credit To Delhi Metro Rail Corporation On Consulting Engineer’s Services
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted Delhi Metro Rail Corporation a cenvat credit for consulting engineer services.The bench of Anil Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the input credit on a consulting engineer’s service was 100% allowable under Rule 6(5) read with Rule 2(l) of the...
S. 124 of Finance Act, 2019 Not Violative of Article 14: Punjab & Haryana High Court
The Punjab and Haryana High Court has upheld the constitutional validity of Sections 124(2) and 130(2) of the Finance Act, 2019, which deal with the ‘Vivad se Vishwas Scheme’ (VSV Scheme), dismissing the contention that the said provisions were violative of Article 14 of the Constitution of India since they deny refund to the assessee/ declarant even if the amount already deposited by...
New ITR Forms For AY 2023-24: Know The Key Changes
On February 10, 2023, the Central Board of Direct Taxes (CBDT) announced the tax return forms for the financial year 2022–2023.This year, ITR forms were announced in advance, which is a very positive step toward making compliance easier. The disclosure and reporting requirements on tax return forms will be better understood by taxpayers.Here are the key changes:Separate section for...
Classification Of Polypropylene Bags Can’t Be Changed Just To Avail Lower Tariff-Rate: Calcutta High Court Upholds AAAR’s Ruling
The Calcutta High Court, while upholding the ruling of the Orissa Appellate Authority, held that the classification of polypropylene bags cannot be changed just to avail a lower tariff rate.The single Justice Md. Nizamuddin has observed that the polypropylene bags manufactured by the petitioner are made from plastic granules and cannot be treated as textile articles.The assessee/petitioner is...
Taxing Authorities Can't Stop Assessee From Claiming Statutory Right: Allahabad High Court
The Allahabad High Court has held that the taxing authorities cannot, in the garb of technicality, stop any assessee from claiming his statutory right, as provided under the Income Tax Act.The bench of Justice Rohit Ranjan Agarwal has observed that, due to the mistake of the department or a technical glitch in the software, when an appeal of an assessee is not reflected on the portal,...
Haldiram Not Liable To Pay Service Tax On Take-Away Of Food Items: CESTAT
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax can be levied on the activity of takeaway food items.The bench headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) observed that the activity of takeaway of food items would amount to a sale and would not involve any element of service.The...
Active PAN In Name Of Amalgamating Company, Would Not Justify Reassessment Proceedings Against It: Bombay High Court
The Bombay High Court has reiterated that once the revenue department is aware about the amalgamation and had knowledge regarding the non-existence of the amalgamating entity, an assessment order passed against such amalgamating entity would be void and not merely a procedural defect. The bench of Justices Dhiraj Singh Thakur and Kamal Khata remarked that merely because the PAN in...
Gauhati High Court Directs CIT (TDS) To Refund Income Tax Deducted From Salary Of Scheduled Tribe Officer Expeditiously
The Gauhati High Court has directed the Commissioner of Income Tax (TDS) to expeditiously process the request for a refund of income tax deducted from the salary of the DIG (Ops) of the Border Security Force, who is a member of the scheduled tribe.The single bench of Justice Soumitra Saikia has observed that the phrase "residing in any area specified" under Section 10 (26) cannot be...
Payroll Services By IBM Philippines Not FTS, TDS Not Liable To Be Deducted: Karnataka High Court
The Karnataka High Court, while dismissing the appeal of the department, held that payroll services by IBM Philippines are not fees for technical services (FTS), and the TDS is not liable to be deducted.The division bench of Justice P.S. Dinesh Kumar and Justice T.G. Shivashankare Gowda has observed that the work has been outsourced to IBM Philippines. IBM Philippines was carrying out the...
CBDT Circular Disallowing Expenses Incurred On Granting Freebies To Doctors, Not Applicable To A/Y 2008-09: Bombay High Court
The Bombay High Court has ruled that the CBDT Circular, dated 01.08.2012, as per which the expenses incurred in granting freebies to medical practitioners is inadmissible under Section 37 of the Income Tax Act, 1961, since it is prohibited by law, would not be applicable to the assessment year 2008-09. The bench of Justices Dhiraj Singh Thakur and Kamal Khata noted that Regulation 6.8...
Absence Of Material: Bombay High Court Quashes Reassessment Proceedings
The Bombay High Court has quashed the reassessment proceedings as the issue of "large loans and advances" was not only raised during the scrutiny assessment but also responded to by the assessee.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that between the date of the order of assessment, which is sought to be reopened, and the date of the formation...
CBDT Notifies ITR Forms For Assessment Year 2023-24
The Central Board of Direct Taxes (CBDT) has notified the ITR forms for the assessment year 2023–24.The Board has notified the Income-tax (First Amendment) Rules, 2023, which shall come into force with effect from April 1, 2023.The Board has notified the Indian Income Tax Return (ITR) Forms, namely ITR-1 SAHAJ, ITR-2, ITR-3, ITR-4 SUGAM, ITR-5, ITR-6, and ITR-V, and the Indian Income Tax...