Tax
Sec.194H Income Tax Act Attracted For 'Supplementary Commission' Earned By Travel Agents ; Airlines Liable To Deduct TDS : Supreme Court
The Supreme Court held that Section 194H of the Income Tax Act is attracted in the case of Supplementary Commission amounts earned by the travel agent and therefore Airlines are liable to deduct TDS in this regard.The bench comprising Justices Surya Kant and MM Sundresh upheld the Delhi High Court judgment and overruled the Bombay High Court judgment in CIT v. Qatar Airways [2009 SCC...
Subcontracting For A Service Is Not An "Intermediary" Service: Punjab and Haryana High Court orders Refund
The Punjab and Haryana High Court has quashed a demand by the GST Department against Genpact India and held that subcontracting for a service is not an "intermediary" service.The division bench of Justice Tejinder Singh Dhindsa and Justice Deepak Manchanda has noted that Genpact India provides the main service directly to the overseas clients of Genpact International (GI) but does not get...
18% GST Payable On Manufacturing Of Alcohol For Human Consumption By Way Of Job Work: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that 18% GST is payable on the manufacturing of alcohol for human consumption by way of job work.The division bench of Justice C. Praveen Kumar and Justice A.V. Ravindra Babu has observed that alcoholic liquor is not considered a food. Services by way of job work in relation to the manufacture of alcoholic liquor for human consumption are not eligible for...
Interest Not Leviable For Belatedly Deducting TDS If There Is No Liability: Kerala High Court
The Kerala High Court has held that where there is no liability to deduct TDS, the mere fact that TDS was so deducted and paid to the Income Tax Department belatedly, cannot give rise to a claim for interest under Section 201(1A) of the Income Tax Act.The single bench of Justice Gopinath P. has observed that the delay in remitting the amounts deducted as TDS arose only on account of the fact...
ITAT Allows Deduction To SBI On Total Outstanding Advances At The End Of Each Month Considering The Opening Balances
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the deduction to the State Bank of India (SBI) on the total outstanding advances at the end of each month, considering the opening balances.The three-member bench of Pramod Kumar (Vice President), Aby T. Varkey (Judicial Member), and Sandeep Singh Karhail (Judicial Member) has relied on the decisions of the Calcutta...
Open Purchase Orders Are Standing Offers, Movement of goods are mere stock transfers, No Sales Tax Payable: Karnataka High Court
The Karnataka High Court has held that open purchase orders are only standing offers that do not constitute a confirmed "agreement to sell" and that movements of goods are mere stock transfers.The division bench of Justice Dinesh Kumar and Justice M.G. Uma has observed that the open purchase orders do not constitute any contract. The Purchase Orders issued from time to time for the supply...
Tax Cases Weekly Round-Up: 6 November to 12 November 2022
Delhi High CourtExpenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Ltd. Citation: 2022 LiveLaw (Del) 1048 The Delhi High Court has ruled that advertisement expenses, Software Developing Charges, and expenses...
Importer Can Apply For Registration After 60th day And Within 5 Days Before Arrival Consignment: DGFT
The Directorate General Of Foreign Trade (DGFT) has notified that the importers can apply for registration after the 60th day and within 5 days before the expected date of arrival of the import consignment.The DGFT has amended Policy Condition No. 7(ii) of Chapter 27 of Schedule-I (Import Policy) of ITC (HS), 2022.As per the existing policy, the importer can apply for registration not...
Time Limit To Refer Statement Of Case By CESTAT To High Court, Under Section 130A (4) Of The Customs Act, Is Directory: Bombay High Court
The Bombay High Court has ruled that the time limit within which the Customs Excise and Service Tax Appellate Tribunal (CESTAT) is required to refer the statement of the case to the High Court, as prescribed in Section 130A (4) of the Customs Act, 1962, is only directory and not imperative in nature. The Division Bench of Justices K.R. Shriram and A.S. Doctor held that the CESTAT is...
Delhi High Court Stays Reassessment Order Against IBIBO Group
The Delhi High Court has stayed the reassessment order against an online travel agent, IBIBO Group, and issued a notice to the income tax department."The Assessing Officer is permitted to pass the reassessment order, yet the same shall not be given effect to and shall be subject to further orders to be passed by this Court," the division bench of Justice Manmohan and Justice Manmeet Pritam...
Reliance Industrial Holdings and Biomatrix Not Associated Enterprises, No income Escaped : ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that Reliance Industrial Holdings and Biomatrix were associated enterprises, and, therefore, it could not be said that any income on account of Arm's Length Pricing (ALP) has escaped assessment.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep S. Karhail (Judicial Member) has quashed the...
Liability To Deduct TDS Under Section 201 of Income Tax Act Is A Vicarious Liability, Which Ends With Discharge Of Principal Liability Of Recipient Of Income: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the liability to deduct tax at source (TDS) under Section 201 read with Section 195 of the Income Tax Act, 1961, is a vicarious liability of the payer of an income and thus, the liability to deduct TDS ceases to exist when the primary liability of the recipient of income is already discharged. The Bench of...