Tax
ESOP Cross Charges Paid To Overseas Ultimate Holding Company Is Allowable Expenditure: ITAT Allows Deduction To HP
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT), while ruling in favour of the HP, held that employee stock option plan (ESOP) cross charges paid to overseas ultimate holding companies are an allowable expenditure.The two-member bench headed by N.V. Vasudevan (Vice President) and Chandra Poojari (Accountant Member) has observed that the ESOP expenditure incurred is...
Cash Deposits Made Out Of Withdrawals For The Purpose Of Daughter's Marriage: ITAT Delete Addition
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee had explained that deposits were made out of cash withdrawals made earlier for the purpose of her daughter's marriage.The bench of Saktijit Dey (Judicial Member) has observed that the explanation furnished by the assessee was believable when the Assessing Officer has not brought on record any contrary...
CBIC Instructs Regarding The Acceptance Of E-CoO Issued Under India-UAE CEPA
The Central Board of Indirect Taxes and Customs (CBIC) has issued instructions on acceptance of an Electronic Certificate of Origin (e-CoO) issued under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).The Board has received representations regarding the India-UAE CEPA, stating that importers are having difficulty obtaining preferential tariff treatment based on e-CoO issued...
Denying The Customs Duty Exemption Despite The Valid Country Of Origin Certificate Is Not Sustainable: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that denying the benefit of customs duty exemption despite the valid country of origin certificate is not sustainable.The bench of Rachna Gupta (Judicial Member) has noted that it will hinder the free flow of trade between agreeing nations if the exemption requested under the applicable rules is denied...
Distribution Fees Paid By Google India To Google Ireland, For Distribution Of AdWords Programme In India, Not 'Royalty' : ITAT
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the distribution fees paid by Google India to Google Ireland under a Distribution Agreement, under which Google India was appointed as a distributor of AdWords programme to advertisers in India, is not in the nature of 'Royalty' under the India-Ireland DTAA. The Bench of George George K (Judicial Member)...
CESTAT Directs CBIC To Issue Guideline In Respect Of IBC Proceedings Initiated Against Assessee Before CESTAT
The Central Board of Indirect Taxes and Customs (CBIC) has been ordered by the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to consider issuing guidelines or procedures for handling cases before the CESTAT in which an IBC proceeding has been brought against the assessee's company.The two-member bench of Ramesh Nair (Judicial Member) and Raju...
ITAT Deletes Fees Related To The Period Of Tax Deduction Prior To June 1, 2015
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the levy of late fees of INR 40,000 related to the period of the tax deduction prior to 01.06.2015.The two-member bench of Rahul Chaudhary (Judicial Member) and M. Balaganesh (Accountant Member) has relied on the decision of Karnataka in the case of Fatehraj Singhvi Vs. Union of India in which it was held that the...
Any sum paid to an employee as a bonus or commission to be allowed as a deduction: ITAT Delhi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that any sum paid to an employee as a bonus or commission for services rendered has to be allowed as a deduction.The bench of Saktijit Dey has observed that the reasonableness of the payment or the adequacy of services rendered by the employee is not relevant factors in deciding the allowability of a deduction.The...
CBDT extends due date for filing of TDS statement in Form 26Q for the second quarter of Financial Year 2022-23
The Central Board of Direct Taxes (CBDT) has extended the due date for the filing of TDS statements on Form 26Q for the second quarter of the Financial Year 2022–23."Considering the difficulties in the filing of TDS statement in the revised and updated Form 26Q, the Central Board of Direct Taxes (CBDT) has extended the due date of filing of Form 26Q for the second quarter of Financial...
All India Tax Cases Half Yearly Digest: January To June 2022
Indirect Tax Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council...
In The Absence Of A Full And True Disclosure, Reassessment Is Not Barred By Limitation: Madras High Court
The Madras High Court has held that the criminal investigation wing is separate and distinct from the assessment wing and that disclosure made before one wing will not exonerate the assessee from the requirement of making a "full and true disclosure" before the assessing officer in an assessment.The single bench of Justice Anitha Sumanth has observed that in the absence of full and...
Contract For Extended Warranty Of Bentley Cars, Entered Into By Exclusive Dealer With Indian Customers, Does Not Constitute A Dependent Agent PE In India: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that contract for extended warranty of Bentley Cars, entered into by an exclusive dealer with the Indian customers, does not constitute a dependent agent PE in India. The Bench of Saktijit Dey (Judicial Member) and Dr. Brr Kumar (Accountant Member) noted that the assessee/exclusive dealer of Bentley Cars purchased...