Tax
Promotional Activities Undertaken By Cricketers Are Not Covered Under Business Support Service: CESTAT Quashes Service Tax Demand Against Irfan Pathan and Yusuf Pathan
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax demand against the international cricketers, Irfan Pathan and Yusuf Pathan.The two-member bench of Ramesh Nair (judicial member) and Raju (technical member) has observed that the apparel that the appellant had to wear was team clothing, which bears the brand names and marks...
Reassessment Notice after 4 Years should have the Sanction Of PCIT: Bombay High Court
The Bombay High Court ruled that issuing a reassessment notice after four years is subject to the approval of the Principal Chief Commissioner of Income-tax (PCIT).The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has ruled that the approval for the issuance of a notice under Section 148 ought not to have been obtained from the Additional Commissioner of Income Tax...
Tax Cases Weekly Round-Up: 15 January to 21 January 2023
Delhi High Court VAT Department Not To Initiate Coercive Measures Against PSU Pawan Hans: Delhi High Court Case Title: Pawan Hans Ltd. Versus Commissioner of Trade and Taxes Citation: 2023 LiveLaw (Del) 65 The Delhi High Court has granted a stay to helicopter charterer PSU Pawan Hans Ltd. against a VAT demand of Rs. 176 crores. The division bench of Justice Vibhu...
Hire Charges Received Under ‘Time Charter Agreement’ Not Taxable As Royalty, If Control Over Ship Remained With Owner: ITAT
The Mumbai bench of the ITAT has ruled that hire charges received by the owner of a ship for chartering its vessel under a ‘Time Charter Agreement’, is not taxable as ‘royalty’ under Section 9(1) (vi) of the Income Tax Act, 1961, if control and dominance over the ship remained with the assessee/ owner and not with the charterer. The bench of Amit Shukla (Judicial Member) and...
Income Tax Act - For Block Assessment, Normals Procedure Not Applicable; Interest Can Be Levied Without Sec 158BC Notice : Supreme Court
The Supreme Court recently held that revenue was justified in levying interest under Section 158BFA(1) of the Income Tax Act for late filing of the return for the block period even in absence of any notice under Section 158BC of the Act and for the period prior to 01.06.1999.A Bench comprising Justice M.R. Shah and Justice C.T. Ravikumar was considering a batch of petitions dealing with the...
18% GST Payable On The Forest Permit Fee: Telangana AAR
The Telangana Authority for Advance Ruling (AAR) has held that 18% GST is payable on the forest permit fee.The two-member bench of B.P. Naga Siva Kumari observed that the permit fees collected by the forest department are used by forest officials to monitor mining activity, assess the quantity and type of mineral being quarried, conduct surveys, and keep a constant eye on the movement of...
Allahabad High Court Stays Rs.1,081 Crores GST Demand Against Paytm
The Allahabad High Court has stayed the Goods and Service Tax (GST) demand of Rs. 1,081 crores against Paytm."The amount of tax due on the transaction has already been paid, and the only dispute is whether it is to be treated as an intra-state sale or an inter-state sale; recovery of the demand raised shall remain stayed till the next date of hearing," the division bench headed by Chief...
Interest Income Earned By A Co-Operative Society Eligible For Deduction: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that interest income earned by a co-operative society on its investments held with co-operative banks would be eligible for claim of deduction under section 80P(2)(d) of the Income Tax Act.The two-member bench of Kuldip Singh (Judicial Member) and S Rifaur Rahman (Accountant Member) found that the CIT(A) erred in upholding...
No Case Is Made Out By Customs For Confiscation Of Goods Meant For Export: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a No Objection Certificate (NOC) is not required from the Drug Controller in respect of an export consignment filed for the export of drugs to Liberia.The bench of Anil Choudhary (a Judicial Member) has observed that the appellant was a genuine manufacturer duly licensed to manufacture and...
Company’s Income Cannot Be Assessed Under ‘Salary’: ITAT
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that since the assessee is a company, its income cannot be assessed under the heading "salary."The bench of K. Narasimha Chary (a judicial member) has restored the issue to the file of the Assessing Officer to verify the availability of brought-forward losses for the purpose of setting off the current year's income...
Expiry Of E-way Bill Does Not Create Any Scope For Tax Evasion: Madras High Court Imposes Minor Penalty
The Madras High Court has imposed a minor penalty and held that the expiry of the E-way bill does not create any scope for evasion.The single bench of Justice M. Sunder has observed that assuming there was no breakdown and assuming the portal was active, the maximum penalty would be Rs. 5,000.A truck that was carrying a consignment described as "Angles" from Gummidipoondi to Ranipet...
Excise Duty Not Payable On Test Production: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that excise duty is not payable on test production.The bench of Anil Choudhary (Judicial Member) has observed that the appellant/assessee has done only test production prior to November 11, 2010, and they have been doing mainly trading of finished goods as the factory was not fully set up at the...