Tax
Agricultural Land Cultivated Only For A Few Days: ITAT Allows Exemption
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has allowed the income tax exemption under Section 54B even when the land was cultivated only for a few days during the relevant years.The two-member bench of S.S. Vishwanethra Ravi (Judicial Member) and Inturi Rama Rao (Accountant Member) has observed that part of the land could not be used for agricultural purposes but grass was...
Service Tax Exemption Available On Rendering Transmission Of Electricity: CESTAT
The Chattisgarh Customs, Excise and Service Tax Appellate Tribunal (CESTAT), consisting of Justice Dilip Gupta (President) and P. Anjani Kumar (Technical Member), has held that the service tax exemption is available on the transmission of electricity.The appellant/assessee is in the business of manufacturing power transmission towers and parts and accessories. The appellant was also engaged...
AO Not Justified In Disallowing The Claim Of Interest Expense : ITAT
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has held that the AO is not justified in disallowing the claim of interest expense and treating it for capitalization in the project cost.The two-member bench of Rajpal Yadav (Vice President) and Girish Aggarwal (Accountant Member) has directed the AO to allow the claim of interest expenses of Rs.41,06,890.The appellant/assessee is...
Ola Not Liable To Deduct Withholding TDS On Payments To Drivers: ITAT
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) has held that Ola is not liable to deduct withholding TDS on the payments to drivers.The two-member bench of Sudhanshu Shrivastava (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that the AO and the CIT(A) erred in concluding that the assessee was providing transportation services which were...
Kingfisher Radler Attracts 28% GST and 12% Cess: AAR
The Karnataka Authority of Advance Ruling (AAR) has ruled that the Kingfisher Radler attracts 28% GST and 12% Cess.The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that the product "Kingfisher Radler" has different variants and all the variants merit classification as carbonated beverages of fruit drinks, all covered under tariff heading 2202 99 90.The applicant is...
Export Of Software Embedded Into Hardware; Sale Proceeds From Export Of Hardware Eligible For Deduction : Karnataka High Court
The Karnataka High Court has ruled that where a software embedded into a hardware is exported by the assessee, the proceeds from export of the hardware component is eligible for deduction under Section 10A of the Income Tax Act, 1961, despite the fact that the hardware was separately invoiced and was not manufactured by the assessee, if the software cannot be used independently. Taking...
CBDT Notifies ITR-A Under Section 170A For Filing Modified Return Pursuant To Business Reorganisation
The Central Board of Direct Taxes (CBDT) has notified Form ITR-A for filing the modified income tax return under Section 170A of Income Tax Act, 1961 pursuant to business reorganisation. The CBDT, vide Notification No. G.S.R 709(E), dated 19.09.2022, introduced Rule 12AD to the Income Tax Rules, 1962 through the Income Tax (31st Amendment) Rules, 2022. As per the newly inserted Rule...
Supply Of Ayurvedic Products Under AYUSH Department Licences Attracts 12% GST: AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that 12% GST is payable on the supply of ayurvedic products under AYUSH department licences.The two-member bench of B. Raghu Kiran and S.V. Kasi Visweswara Rao has observed that the products which are used for care are treated as "cosmetics" and therefore taxed at 18% GST. 12% GST is payable on the products which are used for cure and...
Basic Customs Duty Exemption On Import Of Colour Data Projectors: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the import of colour data projectors is exempted from basic customs duty.The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that for the period prior to 01.01.2017, all goods falling under CTSH 8528 41, 8528 51, or 8528 61 were...
TDS Exemption On Payments To Agents Of Foreign Shipping Companies: ITAT
The Delhi Income Tax Appellate Tribunal (ITAT) has held that the payments to agents of foreign shipping companies are exempt from TDS deduction.The two-member bench of Saktijit Dey (Judicial Member) and N.K.Billaiya (Accountant Member) has observed that provisions of section 172 of the Income-tax Act, 1961 apply to payments made to agents of foreign shipping companies; therefore, provisions...
Works Contract Services Executed To State Government For Construction Of Airport Terminal Building Attracts 18% GST: AAR
The Karnataka Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on the work contract services executed for the state government for the construction of the airport terminal building and greenfield airport.The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that work contract services executed for Karnataka State Police Housing and Infrastructure...
Transfer Of Non-Self Generated Goodwill At Book Value; No Tax Can Be Levied Despite Withdrawal Of Tax Exemption: ITAT
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that, where a goodwill is acquired by incurring cost and it is transferred at book value, no tax can be levied on transfer of the goodwill despite withdrawal of exemption on capital gains tax on conversion of a sole proprietary concern into a company, for violation of the conditions provided in Section 47(xiv)(b) of...