Tax
Consideration Paid To Foreign Company For Use Of Computer Software Not 'Royalty', No TDS Liability: Delhi High Court
The Delhi High Court has reiterated that consideration paid by an Indian entity to a foreign company for the resale/ use of their computer software is not 'royalty'.A division bench of Justices V. Kameswar Rao and Vinod Kumar thus held that the Indian entity is not liable to deduct TDS in such cases.The bench in this regard relied on Engineering Analysis Centre of Excellence Pvt. Ltd. v....
No Service Tax On Catering Services Provided To Educational Institutions: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no service tax on catering services provided to educational institutions. Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) were addressing the issue of whether the catering services provided by the assessee to a School with hostel facility are covered under...
`Tribunal Has Inherent Authority To Stay Orders Detrimental To Revenue: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that tribunal has inherent authority to stay orders detrimental to revenue. P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) stated that “the power of taxation including its collection being an inherent attribute of sovereignty, the right of revenue to seek a stay of an...
Income Tax | Interest Earned On Surplus Lending Funds Is Attributable To Banking Business, Qualifies For 80P Deduction: Calcutta High Court
The Calcutta High Court stated that interest earned on surplus lending funds is attributable to banking business, qualifies for 80P deduction under Income Tax Act. Section 80P of the Income Tax Act, 1961 provides 100% tax deductions to cooperative societies for income from specified activities. These activities commonly include marketing agricultural produce, purchasing...
Cenvat Credit Can Be Availed On Sugar Cess Paid On Imported Raw Sugar: CESTAT
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that cenvat credit can be availed on sugar cess paid on imported raw sugar. S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) were addressing the issue of whether the assessee is entitled to avail the CENVAT credit of the sugar cess paid on imported raw sugar...
Delhi High Court Imposes ₹50K Cost On Trader Who Missed Personal Hearing After Failing To Check GST Portal
The Delhi High Court recently refused to interfere with a GST demand raised against a trader, who failed to either appear for personal hearing or even file a reply.Though the trader sought to contend that reply could not be filed as he is not a frequent visitor to the GST portal, a division bench of Justices Prathiba M. Singh and Renu Bhatnagar said,“It is a matter of practice of the...
Writ Petition Not Maintainable Against Officer's ITC Finding Made Within Jurisdiction: Calcutta High Court
The Calcutta High Court stated that writ not maintainable against officer's ITC finding made within jurisdiction. Justice Raja Basu Chowdhury stated that “Though, violation of principles of natural justice, and a challenge on jurisdictional issue can be maintained, such issue must, relate to an exercise of jurisdiction by an authority which it does not have, and not merely an...
Income Tax Act | Criminal Complaint For Tax Evasion Filed During Pendency Of Reassessment Proceedings Not Premature: Delhi High Court
The Delhi High Court recently dismissed a plea for quashing a criminal complaint lodged under Income Tax Act 1961 for alleged tax evasion, moved on the ground that reassessment action was pending and hence the complaint was premature.The bench of Justice Neena Bansal Krishna cited P. Jayappan vs. S.K. Perumal, First Income Tax Officer [1984] where it was held that pendency of...
Tax Weekly Round-Up: August 04 - August 10, 2025
SUPREME COURTLet GST Council Look Into Tracking Of GST Paid On Foreign OIDAR Services : Supreme CourtCase Title – Pradeep Goyal v. Union of India & Ors.Case no. – Writ Petition No. 258 of 2021The Supreme Court recently disposed of a public interest litigation seeking directions for setting up a mechanism to track services provided by foreign entities in India under the Goods and...
Income Tax Act | Supreme Court Delivers Split Verdict On Timelimit For Assessments Under S.144C
The Supreme Court on Friday (Aug. 8) delivered a split verdict on the interpretation of the limitation period under Section 144C of the Income Tax Act, 1961 (“Act”), governing the timeline for passing assessment orders by the Assessing Officer in cases involving eligible assessees, such as foreign companies and transfer pricing matters.The judgment was delivered by the bench of Justices...
Serving Order On Chartered Accountant Doesn't Count As Service On Assessee: Bombay High Court
The Bombay High Court held that serving order on chartered accountant doesn't count as service on assessee. The issue before the bench was whether the copy of the order passed by the Tribunal when served upon the Chartered Accountant is sufficient service and whether it can be construed as 'copy received by the assesse/applicant'. Justices Bharati Dangre and Nivedita P. Mehta...