Tax
Existence Of Dependent Agent Permanent Establishment (DAPE) Is Of No Tax Consequence, If Agent Is Paid Arm's Length Remuneration: ITAT
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT)has ruled that the business profits embedded in the reinsurance premium received by a non-resident reinsurance company, is not taxable in India if the company has no permanent establishment (PE) in India which is at its disposal.The bench of Pramod Kumar (Vice President) and Anikesh Banerjee (Judicial Member) held that unless it...
Demand Of Tax and penalty can't be imposed on the basis of conjecture : Allahabad High Court
The Allahabad High Court has held that the demand for tax and penalty cannot be imposed on the basis of conjecture and surmise, especially in cases where the goods were accompanied by a tax invoice and E-way bill.The single bench of Justice Pankaj Bhatia has observed, "As the respondent has not approached for availing of the benefits that flow from Section 129, coupled with the fact that...
Setting up of Electric Loco Shed For Railway Constitutes Composite Supply Of Works Contract Service: AAAR
The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has held that the setting up of an Electric Loco Shed for the Railway constitutes a composite supply of work contract service.The two-member bench of S. Kannan and Ministhy S. has observed that the project of setting up an electric loco shed at Saiyedpur Bhitri, Uttar Pradesh, fulfils the conditions of it being an...
Tax Cases Monthly Round-Up: October, 2022
Indirect Taxes Supreme court Supreme Court Directs Andhra Pradesh To Transfer To Jharkhand CST Collected From Tata Motors In Respect To Sale To APSRTC Case Title: Tata Motors Limited Versus Central Sales Tax Appellate Authority & Others Citation: 2022 LiveLaw (SC) 847 The Supreme Court has directed the state of Andhra Pradesh to transfer to Jharkhand the amount of...
CBDT Issues Draft common Income-tax Return-request for inputs from stakeholders and the general public
The Central Board of Direct Taxes (CBDT) has issued the draft common income-tax return request for inputs from stakeholders and the general public.Depending on the type of person and the nature of their income, taxpayers are currently required to file income tax returns on ITR-1 through ITR-7. The current ITRs are in the form of designated forms, and the taxpayer is required to go through all...
CBDT Notifies Krea University To Be Eligible For Income Tax Deduction
The Central Board of Direct Taxes (CBDT) has approved Krea University, Sricity, Chittoor under the category of "University, College or other institution' for research in "Social science or Statistical research" and allowed income tax deduction."In exercise of the powers conferred by clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961) read with Rules 5C and 5E...
Admission of Appeals As A Condition Precedent To Be Eligible For Settlement Under Vivad Se Vishwas Scheme Is Contrary To Law: Delhi High Court
The Delhi High Court has ruled that the Central Board of Direct Taxes (CBDT) FAQ No. 59 of Circular No.21/2020 dated December 4, 2020, which contemplates admission of appeal before the filing of declaration as a condition precedent for the appeal to be treated as pending and eligible for settlement under the Vivad Se Vishwas Scheme (VSV Act) is contrary to law.The division bench of...
ITAT Suggests Government To Work-Out Mechanism To Ensure Tax Recovery From ARCs/Banks On sale Of Security Assets
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has suggested the government work out a mechanism to ensure tax recovery from Asset Reconstruction Companies (ARCs)/banks on the sale of security assets."It is time that the Government seriously considers protecting its legitimate interests by ensuring some mechanism to ensure that the tax liability on the capital gains is...
CBIC Issues Instructions on Pre-deposit payment method In Central Excise and Service Tax Cases
The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions on pre-deposit payment methods in central excise and service tax cases.Some Commissioners (Appeals) rejected appeals for non-compliance with pre-deposit requirements mandated under Section 35F of the Central Excise Act, 1944 (CEA) and Section 83 of the Finance Act, 1994, read with Section 35F of the CEA. Payments...
Characteristics Of "Consumables" Does Not Attach "Welding Electrodes", MODVAT Credit Can't Be Recovered: CESTAT
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that characteristics of "consumables" do not attach to "welding electrodes", and, therefore, the recovery of the Modified Value Added Tax (MODVAT) credit was incorrect.The bench of C.J. Mathew has observed that MODVAT credit is available on the procurement of goods that are 'inputs' with 'capital...
Delhi High Court Allows Depreciation Claim To Daikin For Goodwill On Exclusive Business Rights
The Delhi High Court while ruling in favour of the Daikin Shri Ram Aircon Pvt. Ltd. has held that the business rights acquired for valuable consideration constitute an intangible asset within the meaning of Section 32(1)(ii) of the Income Tax Act and depreciation is allowable.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the department has...
Tax Cases Weekly Round-Up: 23 October To 29 October, 2022
Delhi High Court Dividends Received By IFFCO From OMIFCO Oman Can't Be Disallowed Under Income Tax Act: Delhi High Court Case Title: PCIT Versus IFFCO LTD The Delhi High Court has held that the dividends received by Indian Farmers Fertiliser Cooperative (IFFCO) from Oman India Fertiliser Company S.A.O.C (OMIFCO) Oman cannot be disallowed under the Income Tax Act. Bombay...