Tax
ITAT Deletes Addition On Account Of Cash Deposited In The Bank Accounts During Demonetisation Period
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition on account of cash deposited in bank accounts during the demonetization period.The bench of Ravish Sood (a judicial member) has observed that the AO, by not rejecting the books of account, has clearly accepted that the cash deposited in the bank accounts by the assessee firm during the year under...
No Fraudulent Intention Established: Gujarat High Court Quashes Penalty
The Gujarat High Court has held that the department could not establish any element of tax evasion with fraudulent intent or negligence.The division bench of Justice Sonia Gokani and Justice Mauna M. Bhatt has observed that the delay was of almost 4 1⁄2 hours before the e-Way bill could expire. It appeared to be bonafide and without establishing any fraudulent intention.The...
Interest Income Earned By Co-Operative Society From Investments Made With Co-Operative Banks Is Eligible For Section 80P Deduction: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under section 80P(2)(d) of the Income Tax Act in respect of interest earned by cooperative societies from investments made with cooperative banks.The two-member bench of Aby T. Varkey (Judicial Member) and Amarjit Singh (Accountant Member) has relied on the decision of the Karnataka high court in the case...
ITAT Allows Section 80G Deduction To The Trust Which Is Not Substantially Religious
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction under Section 80G of the Income Tax Act to the trust, which is not substantially religious.The two-member bench headed by R.S. Syal (Vice President) and Partha Sarthi Chaudhury (Judicial Member) has observed that if a trust or institution incurs expenses for religious purposes, which are inclusive and only...
Lease Charges Paid By The Railways Department Not Subjected To Levy Of VAT: Chhattisgarh High Court
The Chhattisgarh High Court has held that the lease charges paid by the Railways Department are not subject to the levy of value-added tax (VAT).The single bench of Justice P. Sam Koshy has observed that the right to use goods or the use of goods is not the relevant factor to justify the levy of taxes.The Indian Railways had floated a Scheme known as the "Own Your Wagon Scheme" to which...
18% GST Is Payable On Work Contract Service Of Constructing Warehouse And Cold Storage Godown: AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on work contract services for constructing warehouses and cold storage godowns for Telangana State Industrial Infrastructure Corporation Limited (TSIICL), which will rent out the facilities.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that TSIICL is a government entity....
Postal Authorities To Set Up, Operate, Maintain PBE Automated System For Filing Electronic Declaration For Export Of Goods: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has notified the Postal Export (Electronic Declaration and Processing) Regulations, 2022.The postal authorities shall set up, operate, and maintain the Postal Bill of Export (PBE) Automated System for the filing of electronic declarations for the export of goods through the post.An exporter who wishes to export goods through the...
Gujarat High Court Releases Bank Account From Attachment Of Subsidiary Of Taiwan Company Subject To The Personal Undertaking Of The Directors
The Gujarat High Court has directed the department to release the bank account from the attachment of the subsidiary of the Taiwan Company subject to the personal undertakings of the directors.The division bench of Justice Sonia Gokani and Justice Mauna M. Bhatt, in order to secure the revenue's interest, has directed the department to continue the attachment of FD with DBS amounting to Rs....
Tax Cases Weekly Round-Up: 04 December To 10 December 2022
Supreme Court Concessional Rate Of Sales Tax Not Applicable On Oxygen As It Is Not A Raw Material For Manufacture Of Steel: Supreme Court Case Title: State of Jharkhand and others Versus Linde India Limited and Another The Supreme Court has held that the main function of oxygen in manufacturing steel is to reduce the carbon content; therefore, it can be considered a refining...
Non-Scheduled Bank Required To Tax The Interest On Sticky Loans Or NPAs On Receipt Basis: Himachal Pradesh High Court
The Himachal Pradesh High Court has held that the non-scheduled bank was required to tax the interest on the sticky loans and non-performing assets (NPAs) on a receipt basis.The division bench of Justice Sabina and Justice Sushil Kukreja has observed that an amendment to Section 43D by Finance Act, 2017 was made by which the scope of section 43D to Co-operative Banks was extended. Although...
Attachment By Tax Dept. Subsequent To A Mortgage Favouring Secured Creditors Has No Legs: Madras High Court
The Madras High Court has held that the orders of attachment passed by the Tax Recovery Officer or Income Tax Department were subsequent to the mortgage created in favour of the secured creditors and have no legs.The division bench of Justice R. Mahadevan and Justice Mohammed Shaffiq has observed that even if recovery proceedings are quashed for any reason, the bankers' and...
Hospital Charging Commercial Rates Not Entitled For Registration As Charitable Organisation: ITAT
The Hyderabad bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee hospital is charging on the basis of commercial rates from the patients and is not entitled to registration as a charitable organization under Section 12A of the Income Tax Act.The two-member bench of Laliet Kumar (Judicial Member) and R.K. Panda (Accountant Member) has observed that the assessee...