Tax
DGFT Relaxes Provisions Of Submission Of "Bill of Export" To SEZ Units In Case Of EPCG Authorization
The Director General of Foreign Trade (DGFT)has issued a circular relaxing the provision of submission of a "Bill of Export" as an evidence of export obligation discharge for supplies made to the Special Economic Zone (SEZ) units in the case of the Export Promotion Capital Goods (EPCG) Authorization.The Foreign Trade Policy requires the submission of a "Bill of Export" for supplies...
Karnataka High Court Directs Income Tax Department To Issue A 'Nil Tax Deduction At Source' Certificate To Flipkart For Reimbursements Made To Walmart
The Karnataka High Courthas directed the Income Tax Department to issue a 'Nil Tax Deduction at Source' Certificate to Flipkart under Section 195(2) of the Income Tax Act, 1961, with respect to the reimbursements made by it to Walmart Inc. Walmart had seconded employees to Flipkart in terms of a Master Service Agreement. Holding that Flipkart was the employer of the...
ITAT Quashes Order Holding Air India An Assesssee In Default For Shortfall In Deduction Of TDS On Payments Made To Its Subsidiary
The Mumbai Bench of ITAT has ruled that Air India must be given the benefit of the Proviso to Section 201 (1) of the Income Tax Act, 1961 and hence, it cannot be considered as an assessee in default for shortfall in deduction of TDS on the payments made by it to its subsidiary - Air India Engineering Services Ltd. The Bench, consisting of Kavitha Rajagopal (Judicial Member)...
TPO Not Justified In Treating The Value Of International Transaction Of "Payment of Corporate IT Support Services" To Be Nil: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has observed that the TPO was not justified in treating the value of international transactions "Payment of Corporate IT Support Services" as NIL.The two-member bench headed by Pramod Kumar (Vice President) and Sandeep Singh Karhail (Judicial Member) has observed that no search was conducted to find out the independent entity in...
No Service Tax On Reimbursement Of Expenses From Customers On Account Of Water, Electricity And Diesel Expenses Incurred: CESTAT
The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax is not applicable on reimbursement of expenses from its customers on account of water, electricity, and diesel expenses incurred for the provision of services.The two-member bench of P.K. Chaudhary (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that...
Loan Given To Shareholder For Consideration Beneficial To The Company Is Not A Deemed Dividend: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that if a loan or advance is given to a shareholder as a consequence of any consideration which is beneficial to the company, in such a case, the advance or loan cannot be said to be a deemed dividend.The two-member bench of Astha Chandra (Judicial Member) and Anil Chaturvedi (Accountant Member) has observed that...
Seafarer's Recruitment Service Provider Is Not An intermediary: CESTAT Allows CENVAT Credit Refund
The Mumbai bench of the Customs, Excise and Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) has held that a seafarer's recruitment service provider, who processes the entire selection, medical test, insurance, transportation, training, etc. to the overseas client and receives convertible foreign exchange, is not an intermediary. The appellant/assessee...
ITAT Holds Revisionary Order Passed Without Mentioning DIN As Invalid
The Kolkata Bench of the ITAT has quashed the revisionary order passed by the Income Tax Authority without quoting the Document Identification No. (DIN) in the said order, as required by the CBDT Circular No.19/2019, dated 14.08.2019. The Bench, consisting of Mr. Sanjay Garg (Judicial Member) and Mr. Girish Agrawal (Accountant Member), held that since the order passed by the...
Reopening Assessment Without Furnishing Information Violates Principles Of Natural Justice: Calcutta High Court
The Calcutta High Court bench of Justice T.S. Shivagnanam and Justice Bivas Pattanayak has held that failure to furnish information based on which assessment was reopened is a violation of principles of natural justice.The appellant/assessee has challenged the assessment order passed under the provisions of the Income Tax Act 1961 on the ground that it has been passed in violation of...
CESTAT Allows Cenvat Credit of 2% CVD Paid On Import Of Steam Coal
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Ajay Sharma (Judicial Member) and P.V. Subba Rao (Technical Member) has allowed the Cenvat credit of 2% CVD paid on the import of steam coal.The appellant/department has assailed four different orders passed by the Commissioner (Appeals) in four appeals by which the Commissioner (Appeals)...
CESTAT Quashes Order Of Forfeiture Of Security Deposit, Sustained The Penalty On Customs Broker
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the order of forfeiture of security deposit of Rs. 5 lakhs but sustained the penalty of Rs. 50,000 on the Customs Broker.The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has observed that the forfeiture of security deposit of Rs. 5 lakhs and imposition of...
Delhi High Court Directs DSIR To Issue Report Quantifying Expenditure On Scientific Research Incurred By The Assessee
The Delhi High Court has directed the Department of Scientific and Industrial Research (DSIR) to issue reports on the expenditure incurred by the assessee SRF Ltd. for the relevant assessment years in Form 3CL within six weeks. The Division Bench of Justices Manmohan and Manmeet Pritam Singh Arora observed that the DSIR is statutorily bound to issue the Form 3CL within 120 days...