Tax
Tata Industries Entitled To Set-Off Business Loss Against Dividend Received From Its Foreign Subsidiary: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that investments made by an assessee company to exercise control over other investee companies constitutes a business activity. The bench of Rahul Chaudhary (Judicial Member) and M. Balaganesh (Accountant Member) held that though the dividend income is taxable under the head 'income from other sources' in view of...
Expenditure On Development Of New Product, Shown As 'Capital Work In Progress'; Deductible As Revenue Expenditure, If Project Is Subsequently Abandoned: Bombay High Court
The Bombay High Court has ruled that the expenditure incurred on development of a new product, in respect of the same business already carried on by the assessee, which subsequently failed to come into existence and was abandoned, is eligible for deduction as revenue expenditure. The bench of Justices Dhiraj Singh Thakur and Abhay Ahuja observed that though the assessee had treated...
GST Exemption On Amount Towards Unparallel Health Insurance Scheme: Maharashtra AAAR
The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the GST is not applicable on charges collected under an unparalleled health insurance scheme.The two-member bench of Rajeev Kumar Mital and D.K. Srinivas has observed that the fees and other charges received from students and recoupment charges received from patients would constitute consideration for "outward...
RCM Not Applicable On Reimbursement Of Expenses Paid On Behalf Of Company At Actuals Incurred By The Employee Staff Who Is Also A Whole-Time Director: AAR
The Karnataka Authority for Advance Ruling (AAR) has held that the reverse charge mechanism (RCM) is not applicable to reimbursement of expenses paid on behalf of the company at actuals that are incurred by the employee staff, who is also a whole-time director of the company.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that reimbursement of expenses at an actual...
Advance Given For Hospital Project, Later Abandoned, Allowable As Revenue expenditure: ITAT
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the advance was given for setting up a hospital project, and since the project was abandoned and the advance given could not be recovered, the sum is allowable as a revenue expenditure.The two-member bench of Sonjoy Sarma (Judicial Member) and Manish Borad (Accountant Member) has observed that the advance was given...
TDS Deduction From Salaries: CBDT Issues Circular
The Central Board of Direct Taxes (CBDT) has issued a circular regarding the deduction of tax at source from salaries.The Circular comprehensively explained employers' obligations regarding the deduction of tax at source from salaries under Section 192 of the Income-tax Act, 1961, for the financial year 2022–23.Section 192 of the Income Tax Act, 1961, deals with tax deducted at source (TDS)...
TDS Exemption Not Applicable On Cash Withdrawal By Primary Agricultural Credit Co-Operative Societies: Madras High Court
The Madras High Court has held that the TDS exemption under Section 194N of the Income Tax Act is not applicable to cash withdrawal by primary agricultural credit co-operative societies.The bench of Justice Anitha Sumanth has noted that the provisions of Section 194 N provide for a mandatory deduction of 2% of cash withdrawals and the object is to discourage and drive the move toward a...
GST Concessional Rate Is Not Applicable On Maintenance And Repair Services Of Test-Bench Equipment For Aeronautics: AAR
The Karnataka Authority of Advance Ruling (AAR) has held that a concessional rate under GST is not applicable to maintenance and repair services of test-bench equipment for aeronautics.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. have observed that the concessional rate of GST of 5% is applicable to only Maintenance, repair or overhaul services in respect of aircraft,...
Delhi High Court Allows Income Tax Deduction On Loss On Forward Cover Purchase Contracts For Foreign Exchange
The Delhi High Court has held that reinstatement of year-end losses on forward cover purchase contracts is allowable in spite of the fact that the forward contracts have not been closed.The division bench of Justice Vibhu Bakharu and Justice Purushaindra Kumar Kaurav, while upholding the findings of the tribunal, held that the loss on account of forward contracts cannot be...
Concessional Rate Of Sales Tax Not Applicable On Oxygen As It Is Not A Raw Material For Manufacture Of Steel: Supreme Court
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 agent but not a raw material, so the concessional rate of sales tax is not available on oxygen.The division bench of Justice M.R. Shah and Justice M.M. Sundresh has set aside the order passed by the Jharkhand High Court and restored...
Chennai GST Dept. Launches Whatsapp, E-mail Communication Facility For Facilitation Of Trade
The Office of the Commissioner of GST and Central Excise (Appeals-II), Anna Nagar, Chennai, has launched a WhatsApp and/or email communication facility for the convenience of taxpayers.The taxpayers may use the facility for resolving their requests, grievance, query, appeal status, etc., in a time-bound manner. The taxpayer can also send their questions via email.The taxpayer can WhatsApp...
Mistake In The Personal Information Of The Trust Is A Rectifiable Mistake At Any Stage: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that a mistake in the personal information of the assessee is always rectifiable at any stage.The two-member bench of Anubhav Sharma (Judicial Member) and Shamim Yahya (Accountant Member) has observed that the tax authorities below have fallen into error by not taking into consideration the rectification application. The...