Tax
Interest Free Security Deposits Are Not Exigible To Service Tax: CESTAT Ahmedabad
The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that interest free refundable security deposits are not exigible to service tax since they are not collected in consideration for providing a service. The Bench, consisting of members Ramesh Nair (Judicial Member) and Raju (Technical Member), held that there is no provision in the Service...
ITC Can Be Availed on IGST Paid Both On Imports Intra & Inter-State Sales: AAR
The Telangana Authority of Advance Ruling (AAR) consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao has ruled that IGST paid on imports is eligible to be availed as an Input Tax Credit (ITC) both on intra-state and inter-state sales. The applicant, M/s. Euroflex Transmissions (India) Private Limited, wishes to supply imported goods directly from the port of...
Weekly Digest Of Tax Cases: April 10 To April 17, 2022
High CourtDelhi High Court Scholarship By Hamdard Foundation, Exemption Under Income Tax Act Can't Be Denied: Delhi High Court Case Title: Commissioner of Income Tax (Exemptions) Delhi versus Hamdard National Foundation (India) Citation: 2022 LiveLaw (Del) 302 The Delhi High Court has upheld the factual findings made by the CIT (A) and ITAT that the...
Post Facto Changes In GST Registration: Madras High Court Quashes Penalty Imposed For Mismatch Of Address In Invoice And RC
The penalty imposed for mismatch of address in invoice and RC was quashed by the Madras High Court bench of Justice C. Saravanan on the grounds that there was a post facto alteration in GST registration. The petitioner, a new start-up company, is in the business of research and development on Alage and its utilisation. The petitioner placed a purchase order on October 7, 2021, for...
Rajasthan High Court Refuses To Exempt Assessee From Personal Appearance Under GST
The Rajasthan High Court consisting of Justice Manindra Mohan Shrivastava and Justice Sameer Jain has refused to exempt the assessee from personal appearance under Section 70 of the CGST Act. The petitioner/assessee sought the direction of exemption from personal appearance pursuant to summons issued to the petitioner under Section 70 of the Central Goods and Services Tax Act, 2017...
Liquidated Damages And Penalties Due To Breach Of Conditions Of Contract From The Contractor Are Exigible To GST: AAR
The Telangana Authority of Advance Ruling (AAR) consisting of members K.V. Kasi Visweswara Rao and B. Ragu Kiran has ruled that the liquidated damages and penalties received by the applicant due to breach of conditions of the contract by the contractor are exigible to tax under the CGST and SGST Acts. The applicant, M/s. Singareni Collieries Company Limited, is entering into...
No TDS Required To Be Deducted On Enhanced Compensation Awarded By Court Under Land Acquisition Act: Delhi ITAT
The Delhi Bench of ITAT, consisting of members Astha Chandra (Judicial Member) and N.K. Billaiya (Accountant Member), has ruled that interest received by land owners on enhanced compensation awarded to them by the Court under Section 28 of the Land Acquisition Act, 1894 is not in the nature of 'income from other sources' under the Income Tax Act, 1961, therefore, no TDS is required to...
TPO To Mandatorily Pass Order Determining Arm's Length Pricing Within 60 Days: Madras High Court
The Madras High Court bench of Justice R.Mahadevan and Justice J.Sathya Narayan Prasad has held that the transfer pricing officer (TPO) must mandatorily pass the order determining arm's length pricing within 60 days.In the writ petition, the appellant/department has disputed the judge's order. The judge ruled that the TPO's decision or inability to issue an order within 60 days will have...
Plea In Supreme Court Challenges The Constitutional Validity Of Levy Of GST On Lease/ Rent Payments
The Supreme Court of India has asked the petitioner(s) to serve an advance copy to the Additional Solicitor General to seek instructions in a plea challenging constitutional validity of levy of GST on lease/ rent payments. Justice M.R. Shah and Justice B.V. Nagarathna, while hearing the matter, observed, "Let one advance copy be served on Shri N. Venkataraman, learned ASG, who may...
Delhi High Court Grants Bail To Person Accused Of Fraudulently Claiming ITC
The Delhi High Court bench of Justice Prateek Jalan has granted bail to the person accused of fraudulently claiming an input tax credit (ITC) under the CGST Act who has already undergone 9 months in custody.The applicant, Pulkit, has sought bail in respect of the offence of setting up a number of fictitious companies, which were being used for the purposes of defrauding the government....
Corpus Donations Received By A Trust For A Specific Purpose Are Not Taxable, Even If The Trust Is Not Registered: ITAT Mumbai
The Mumbai Bench of ITAT, consisting of members Sandeep Singh Karhail (Judicial Member) and Gagan Goyal (Accountant Member), has ruled that the corpus donations received by a Trust for a specific purpose are not taxable, even if the Trust is not registered under Section 12 A of the Income Tax Act, since they are in the nature of a capital receipt. The Assessee Versova Kokni Sunni...
Only PCIT Can Sanction Reassessment Notice After Expiry Of 4 Years, Not ACIT: Bombay High Court
The Bombay High Court bench of Justice N.R. Borkar and Justice K.R. Shriram has held that after four years of expiry from the end of the relevant assessment year, only the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner (PCIT) can accord the approval to the reassessment notice and not the Additional Commissioner of Income...