Tax
CESTAT Allows CENVAT credit Even If Goods Were not Classified as "Capital Goods" By The Supplier
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Dr. Suvendu Kumar Pati (Judicial Member) has allowed the CENVAT credit even when the goods were not classified as "capital goods" by the supplier. The appellant/assessee has received invoices from the supplier which were of the nature of components of machinery used for...
MP High Court Grants Custody Of Looted Property Recovered By Police To Income Tax Department As The Same Was Not Disclosed By Complainant
The Madhya Pradesh High Court, Gwalior Bench recently dismissed an application moved by a Complainant in a dacoity case, seeking custody of the recovered stolen cash to the tune of Rs. 45 Lakhs. The Court held that since the said amount was not disclosed before the Income Tax Department (IT Department) prior to the incident, the same was liable to be handed over to the IT...
AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) while allowing the deduction under Income Tax Act has rejected the claim of AO that the assessee is only into job work and not manufacturing.The two-member bench consisting of Anubhav Sharma (Judicial Member) and Anil Chaturvedi (Accountant Member) held that the transformation of articles to bring new articles into existence...
Banks Exempted From Deducting Tax At Source While Paying Interest To Statutory Corporations : Supreme Court Reiterates
The Supreme Court has reiterated that Banks are exempted from the mandate of Section 194A of the Income Tax Act, 1961, to deduct tax at the source (TDS), on payment of interest to corporations established by a statute. In the facts of the present case, the Apex Court held that in terms of the notification dated 22.10.2022 issued by the Central Government, the Union Bank of...
Interest On Income Tax Refund Not Connected To Permanent Establishment Under DTAA, Cannot Be Taxed As Business Income: Dehradun ITAT
The Dehradun Bench of ITAT, consisting of members Amit Shukla (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), has ruled that interest on income tax refund received by a foreign enterprise is not effectively connected to its Permanent Establishment in India and therefore it cannot be taxed as its business income under Income Tax Act, 1961. The ITAT also held that receipts...
CESTAT Directs Central Excise Dept. To Reconsider Refund of Cenvat Credit To Tata Consumer Products
The Banglore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.Dinesha (Judicial Member) directed the Central Excise Department to reconsider the refund of cenvat credit to Tata Consumer Products. The appellant/assessee, a 100% export-oriented unit (EOU), has been engaged in the manufacture and export of tea bags and packet tea. The appellant...
Additional/Joint Commissioner Now Empowered to pass Order on Notices issued by DGGSTI: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) while notifying the jurisdiction of central tax officers, empowered additional or joint commissioners to pass orders on notices issued by Directorate General of Goods and Services Tax Intelligence (DGGSTI). In exercise of the powers under section 3 read with section 5 of the Central Goods and Services Tax Act, 2017 and section 3...
Prasar Bharati Not Liable Pay Service Tax For Advertisement Services: CESTAT Directs Refund To Customers
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.V.Subba Rao (Technical Member) and Rachna Gupta (Judicial Member) directed Prasar Bharati to refund the Service Tax collected from customers for advertisement services within a period of two months.Prasar Bharati has been engaged in the broadcasting service through Doordarshan Kendra...
Interest Income Derived By Gujarat Sports Authority On Its Surplus Taxable As "Income From Other Sources": Ahmedabad ITAT
The Ahmedabad Bench of ITAT, consisting of members P.M. Jagtap (Vice President) and Siddhartha Nautiyal (Judicial Member), has ruled that the interest income earned by the Gujarat Sports Authority on its deposits would be taxable as "Income from Other Sources" and not as business income under the Income Tax Act, 1961. The ITAT held that since the Sports Authority was not engaged in...
Coating Activities On goods Belonging To Customer Is Job work, Attracts 12% GST: AAR
The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that coating activities on goods belonging to customers qualify as job work and attract 12% GST. The applicant, a company, is in the business of coating activities, which are mainly applied to goods belonging to customers and provide high-performance Physical Vapour Deposition (PVD)...
Karnataka High Court Orders GST Refund of Rs. 27 Crores Illegally Collected from Swiggy
The Karnataka High Court has ordered the Goods and Service Tax (GST) department to refund Rs. 27 crore, which was illegally collected from Swiggy.The division bench of Justice Alok Aradhe and Justice M. G. S. Kamal, while dismissing the appeal of the Central Government, observed, "Article 265 of the Constitution mandates that the collection of tax has to be by the authority of...
Holding Company Not Liable To Deduct TDS On The Share Purchase Transaction By Its Subsidiary: Bombay High Court
The Bombay High Court has held that even if a holding company was considered as an ultimate beneficiary of a share purchase transaction undertaken by its subsidiary company, it would still not be liable to deduct tax at source under Section 195 of the Income Tax Act, 1961 if it did not make any payment to a non-resident under the transaction. The Bench, consisting of Justices N.J....