Delhi High Court

Dividends Received By IFFCO From OMIFCO Oman Can't Be Disallowed Under Income Tax Act: Delhi High Court

Case Title: PCIT Versus IFFCO LTD

The Delhi High Court has held that the dividends received by Indian Farmers Fertiliser Cooperative (IFFCO) from Oman India Fertiliser Company S.A.O.C (OMIFCO) Oman cannot be disallowed under the Income Tax Act.

Bombay High Court

Subleasing Of Containers; Deemed Sale, Service Tax Not Applicable; Bombay High Court

Case Title: Nayana Premji Savala versus The Union of India & Ors.

Citation: 2022 LiveLaw (Bom) 404

The Bombay High Court has ruled that service tax would be applicable on transfer of goods only in cases where there is no "transfer of right to use" the said goods.

The bench of Justices K. R. Shriram and A. S. Doctor ruled that in view of Article 366(29A)(d) of the Constitution of India, transfer of right to use goods is a deemed sale, which is subject to Sales Tax/VAT. The Court added that Article 366 (29A) of the Constitution does not distinguish between an owner or a lessor of the goods. Thus, the bench ruled that lease of goods for valuable consideration on a "transfer of right to use" basis is a deemed sale, even if the transferor is not the owner of the said goods.

Madras High court

In The Absence Of A Full And True Disclosure, Reassessment Is Not Barred By Limitation: Madras High Court

Case Title: RKR. Gold P. Ltd Versus ACIT

Citation: 2022 LiveLaw (Mad) 444

The Madras High Court has held that the criminal investigation wing is separate and distinct from the assessment wing and that disclosure made before one wing will not exonerate the assessee from the requirement of making a "full and true disclosure" before the assessing officer in an assessment.

Kerala High Court

VAT Defaulter Not Liable To Pay Collection Charges If Opts Amnesty Scheme: Kerala High Court

Case Title: B. Madhukumar Vs Commercial Tax Officer

Citation: 2022 LiveLaw(Ker) 540

The Kerala High Court has held that collection charges are not payable if a VAT defaulter opts for the Kerala Amnesty Scheme, 2017.

The single bench of Gopinath P. has noted that the petitioner had settled the liabilities in terms of the provisions contained in the Amnesty Scheme of 2017, which was introduced by the provisions contained in the Kerala Finance Act 2017.

Rajasthan High Court

GSTIN Linking Cannot Be Denied Merely For Providing Information In Wrong Form: Rajasthan High Court

Case Title: A.H. Marble Crafts, Through Proprietor Mohammad Afzal Vs Commissioner Tax

The Rajasthan High Court has held that the Goods and Service Tax Identification Number (GSTIN) link cannot be denied merely for providing information in the wrong form.

The division bench, Justice Sandeep Mehta and Justice Kuldeep Mathur, has observed that absolute hyper-technical ground cannot be considered valid so as to deny the petitioner the opportunity to link the GSTIN of his father's firm with the new GSTIN number of the firm.

ITAT

Liquidated Damages Received By Shipping Company, Not Exempt Under 'Tonnage Tax Scheme': ITAT

Case Title: M/s. Dredging Corporation of India Ltd. versus Asst. Commissioner of Income Tax

The Visakhapatnam Bench of theIncome Tax Appellate Tribunal (ITAT)has ruled that liquidated damages received by a shipping company cannot be included in computation of tonnage tax and therefore, they are not exempt under the 'Tonnage Tax Scheme', as provided under Chapter XIIG of the Income Tax Act, 1961.

Income Tax Exemption Eligible On Activities Undertaken For Advancement Of General Public Utility: ITAT

Case Title: M/s Association of Mutual Funds in India Versus Deputy Commissioner of Income Tax

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the income tax exemption under Section 11 of the Income Tax Act is eligible for activities undertaken for the advancement of general public utility.

The two-member bench headed by Pramod Kumar (Vice President) and Rahul Chaudhary (Judicial Member)has observed that the activities of the appellant were directed toward the benefit of investors and potential investors, forming part of the general public and not limited to the benefit of its members. The appellant has also maintained separate accounts in respect of the activities.

Contract For Extended Warranty Of Bentley Cars, Entered Into By Exclusive Dealer With Indian Customers, Does Not Constitute A Dependent Agent PE In India: ITAT

Case Title: ACIT versus M/s. Exclusive Motors Pvt. Ltd.

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that contract for extended warranty of Bentley Cars, entered into by an exclusive dealer with the Indian customers, does not constitute a dependent agent PE in India.

Distribution Fees Paid By Google India To Google Ireland, For Distribution Of AdWords Programme In India, Not 'Royalty' : ITAT

Case Title: M/s. Google India Private Limited versus The Deputy Commissioner of Income Tax (International Taxation)

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the distribution fees paid by Google India to Google Ireland under a Distribution Agreement, under which Google India was appointed as a distributor of AdWords programme to advertisers in India, is not in the nature of 'Royalty' under the India-Ireland DTAA.

ITAT Deletes Fees Related To The Period Of Tax Deduction Prior To June 1, 2015

Case Title: Krishna Pandurang Kobnak versus National Faceless Appeal Centre

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the levy of late fees of INR 40,000 related to the period of the tax deduction prior to 01.06.2015.

Any sum paid to an employee as a bonus or commission to be allowed as a deduction: ITAT Delhi

Case Title: Sh. Karam Singh Malik Versus ITO

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that any sum paid to an employee as a bonus or commission for services rendered has to be allowed as a deduction.

The bench of Saktijit Dey has observed that the reasonableness of the payment or the adequacy of services rendered by the employee is not relevant factors in deciding the allowability of a deduction.

Cash Deposits Made Out Of Withdrawals For The Purpose Of Daughter's Marriage: ITAT Delete Addition

Case Title: Harjeet Kaur Versus Income Tax Officer

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee had explained that deposits were made out of cash withdrawals made earlier for the purpose of her daughter's marriage.

ESOP Cross Charges Paid To Overseas Ultimate Holding Company Is Allowable Expenditure: ITAT Allows Deduction To HP

Case Title: M/s. Hewlett Packard (India) Software Operation Pvt. Ltd. Versus Deputy Commissioner of Income-tax

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT), while ruling in favour of the HP, held that employee stock option plan (ESOP) cross charges paid to overseas ultimate holding companies are an allowable expenditure.

CESTAT

CESTAT Directs CBIC To Issue Guideline In Respect Of IBC Proceedings Initiated Against Assessee Before CESTAT

Case Title: M/S. Ultratech Nathdwara Cement Limited Versus C.C.-JAMNAGAR (PREV)

The Central Board of Indirect Taxes and Customs (CBIC) has been ordered by the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to consider issuing guidelines or procedures for handling cases before the CESTAT in which an IBC proceeding has been brought against the assessee's company.

CESTAT Allows Refund Of Unutilised Cenvat credit of Education Cess For Payment Of Output Tax

Case Title: M/s Mahavir Transmission Ltd. Versus Commissioner of Central Goods And Service Tax, Dehradun

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the refund of unutilised cenvat credit of education cess and secondary and higher education cess for payment of output tax.

The bench of Anil Choudhary (Judicial Member) has relied on the order passed by the Tribunal in the case of Bharat Heavy Electricals Ltd. Vs. Commissioner, CGST and held an assessee is entitled to a refund of unutilized cess under the existing law, lying in credit as on 30/06/2017.

CESTAT Deletes Penalty On Availment of Credit Of Input Services Used In Co-Generation Plant For Generation Of Electricity Sold Outside

Case Title: M/s.Sakthi Sugars Ltd. Versus The Commissioner of GST & Central Excise

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty imposed with regard to credit availed in respect of input services used in the co-generation plant for the generation of electricity sold outside.

The bench of Sulekha Beevi C.S. (Judicial Member) has upheld a penalty imposed with regard to an input service tax credit on the services used in the manufacture of ethyl alcohol.

Benefit Of Abatement Notification Can't Be Denied Merely For Mismatch In Quantum Of Purchase: CESTAT

Case Title: Jay Gurudev Construction Co Versus C.C.E. & S.T.-Rajkot

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the benefit of abatement notification cannot be denied solely because of a difference in the amount of purchase shown in the profit and loss account and invoices.

Service Tax is Payable On Computer Education Service Under Vocational Training: CESTAT

Case Title: Advance Computer Education Versus Commissioner of Central Excise & ST, Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax is payable on computer education services under vocational training.

The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the computer education service has been excluded from the Vocational Training service by Notification No. 19/2005-ST dated 07.06.2005. The period involved was from 21.06.2006 to 30.11.2009. Therefore, the appellant is not eligible for exemption under vocational training.

Job Of Bottling, Blending And Labelling Indian Made Foreign Liquor Does Not Amount To Taxable Service Under 'Business Auxiliary Service': CESTAT

Case Title: Commissioner of Central Excise & Service Tax, Bhubaneswar-I Versus

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the job of bottling, blending and labelling Indian Made Foreign Liquor (IMFL) does not amount to taxable service under "Business Auxiliary Service".

Denying The Customs Duty Exemption Despite The Valid Country Of Origin Certificate Is Not Sustainable: CESTAT

Case Title: M J Gold Pvt. Ltd. Versus Principal Commissioner Of Customs (Import)

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that denying the benefit of customs duty exemption despite the valid country of origin certificate is not sustainable.

AAR

"Coal rejects" Attracts 5% GST: Punjab AAR

Applicant's Name: M/s Punjab State Power Corporation Ltd.

The Punjab Authority of Advance Ruling (AAR) has held that "coal rejects" are to be classified under HSN 2701 and are taxable at 5% GST.

5% GST On Fishing Vessel Marine Engine And Its Spare Parts: Kerala AAR

Applicant's Name: Kerala State Co-operative Federation for Fisheries Development Limited (MATSYAFED)

The Kerala Authority of Advance Ruling (AAR) has observed that 5% GST is applicable on fishing vessel marine engines and their spare parts.

Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR

Applicant's Name: Crescent Builders

The Kerala Authority of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST.

The bench of Sreeparvathi and Abraham Renn has held that a new tax structure for the real estate sector was introduced with effect from 01.04.2019 onwards by the amendment of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 by Notification No. 03/2019 – Central Tax (Rate) dated 29.03.2019. The construction services are being rendered by the applicant after 01.04.2019 and hence the rate as notified under the new tax structure is applicable in respect of the construction services rendered by the applicant.